Key Takeaways
- The next generation of Fortune 500 CEOs will be shaped by major technology shifts, with leaders like Satya Nadella, Arvind Krishna, and Doug McMillon already making their mark.
- Technical savvy is not enough to make a leader, and the Fortune Next to Lead list highlights 25 rising executives who exhibit the skills and mindset of a new breed of CEO.
- The list includes executives like Josh D’Amaro, Scott Guthrie, Donna Langley, and Marianne Lake, who are making significant contributions to their companies and industries.
- The US economy is experiencing a quirky jobs day, with patchy data due to the government shutdown, and PayPal is applying to become a bank to lend more to small businesses.
- The Trump Administration has unveiled the US "tech force" to research and develop AI and financial products, and Ford is recording a $19.5 billion impairment for the rollback of its EV strategy.
Introduction to the Next Generation of CEOs
Major technology shifts often spur the rise of a new generation of leaders. This has been evident in the past, with leaders like Satya Nadella, Arvind Krishna, and Doug McMillon making their mark in their respective industries. Nadella’s track record in building Microsoft’s cloud business earned him the top job in 2014, while Krishna’s early bet on cloud and AI made him an obvious choice to run IBM. Similarly, McMillon’s push for e-commerce proved pivotal in becoming CEO of Walmart and transforming the retailer. However, technical savvy alone does not a leader make, and the next generation of CEOs will require a unique set of skills and mindset to succeed.
The Fortune Next to Lead List
To identify the next generation of CEOs, Fortune has compiled a list of 25 rising executives inside the Fortune 500 who exhibit the skills and mindset of a new breed of CEO. The list includes executives like Josh D’Amaro, who oversees a worldwide experiences division at Disney, and Scott Guthrie, who has a record at Azure that has put him at the center of Microsoft’s cloud and AI strategy. Other notable executives on the list include Donna Langley, who is redefining the studio’s multi-platform strategy at NBCUniversal, and Marianne Lake, who is making significant contributions to JPMorgan Chase. These executives have been evaluated across several dimensions, from the scale and impact of their role to their vision and influence beyond the company.
US Economy and Jobs Data
The US economy is experiencing a quirky jobs day, with patchy data due to the government shutdown. The Bureau of Labor Statistics is releasing jobs numbers for November and October, but the data will be incomplete, with no October unemployment report available. Fed Chair Jerome Powell has cautioned that the figures may be "distorted by very technical factors," and therefore, should be viewed with a skeptical eye. Despite the uncertainty, the US economy continues to grow, with companies like PayPal applying to become a bank to lend more to small businesses. The Trump Administration has also unveiled the US "tech force," a group of 1,000 early career engineers and specialists who will research and develop AI and financial products for the federal government.
Industry Developments and Trends
The automotive industry is experiencing a significant shift, with Ford recording a $19.5 billion impairment for the rollback of its EV strategy. The company is contending with lower-than-expected demand for EVs and plans to halt production of some pure electric vehicles in favor of hybrid models. In contrast, companies like Nvidia, Palantir, Amazon, and Google are partnering with the government on the US "tech force" initiative, which aims to develop AI and financial products for the federal government. Meanwhile, McKinsey is planning to shirk its non-client facing departments by about 10% in coming months, as it contends with a slowdown in its traditional services and flatlining revenue.
Technology and Innovation
The use of AI is becoming increasingly prevalent, with companies pouring 93% of their AI budget into technology and only 7% into the people expected to use it. However, this lopsided investment is all wrong, according to Bill Briggs, Deloitte’s chief technology officer, who argues that the focus should be on the culture, workflow, and training needed to make the technology effective. The development of AI chips is also becoming more important, with analysts noting that old AI chips are still put to good use and do not depreciate quickly. As the use of AI continues to grow, it is likely that we will see significant advancements in the field, with companies like Google, Amazon, and Microsoft leading the charge.
Conclusion
In conclusion, the next generation of Fortune 500 CEOs will be shaped by major technology shifts, and leaders like Satya Nadella, Arvind Krishna, and Doug McMillon are already making their mark. The Fortune Next to Lead list highlights 25 rising executives who exhibit the skills and mindset of a new breed of CEO, and the US economy is experiencing a quirky jobs day, with patchy data due to the government shutdown. As the use of AI continues to grow, it is likely that we will see significant advancements in the field, with companies like Google, Amazon, and Microsoft leading the charge. The key takeaways from this article are that technical savvy is not enough to make a leader, and the next generation of CEOs will require a unique set of skills and mindset to succeed.
