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Tag: op ed

Why Alexandria’s new entertainment district is everyone’s business

As lawmakers negotiate the future of a $2 billion deal to build a new entertainment district in Alexandria, leaders across public and private sectors in the D.C.-Maryland-Virginia region are weighing the potential benefits. Without discounting concerns of local residents, I would like to present how this entertainment district will help Northern Virginia’s future growth and economic security and deliver benefits for the entire commonwealth.

To say that a new Potomac Yard Entertainment District is a “big deal” is a gross understatement. While some Northern Virginia residents and officials have chosen to focus more on discrete aspects of the project — from the fate of a Target store to transportation needs — we should instead look at it from its big picture advantages.

Northern Virginia Chamber of Commerce President and CEO Julie Coons. Photo courtesy Northern Virginia Chamber of Commerce
Northern Virginia Chamber of Commerce President and CEO Julie Coons. Photo courtesy Northern Virginia Chamber of Commerce

First, consider the sheer scale of our economy’s trajectory: Northern Virginia’s annual GDP now rivals that of entire countries like Finland, Portugal and New Zealand. At the heart of that success lies a dynamic business environment that is as diverse as our communities. It’s why many of the world’s leading corporations have made our region their home. They see its advantages today and have claimed its future potential on behalf of their businesses and employees.

If we view the proposed entertainment district in the same light as other recent initiatives such as Amazon’s HQ2 and Virginia Tech’s Innovation Campus, it’s clear that we aren’t just talking about a building or graduate school or a sports arena. These major projects play an important role of generating and driving investments in shared benefits: improved infrastructure, an increase in regional quality education, and expansion of significant job opportunities. As the leader of Greater Washington’s largest chamber of commerce, I welcome the continued growth that this proposed public-private partnership will bring to all who work and live in Greater Washington.

An important contribution beyond the proposed entertainment district’s new retail and restaurant spaces is the tremendous tax revenue generated by the project. This revenue will fund critical transportation, housing and education improvements. While some of us may not choose to attend Capitals or Wizards games, it’s important to note that we will all reap the benefits of this new district.

Yes, the sports and entertainment are exciting, but the real value to the region and its citizens is securing these fundamental and needed investments. This project is not a one-and-done. It’s an ongoing opportunity to create greater growth on a scale that creates greater opportunity over time for every resident and business within our region.

Furthermore, if you, like me, care about the future of our workforce and economic prosperity in our region, I encourage you to explore the deal’s finer points. You may be pleasantly surprised at how these details reveal the proposed project’s many advantages. However, I understand that like any successful enterprise, this project will require thoughtful input and productive debate from all stakeholders — especially local residents — at every stage.

Beyond the glitz and excitement of the sports arena, the proposed entertainment district will be a boon to Northern Virginia, its residents and all of the commonwealth. I urge you to examine the bigger impact of this project. These details are everyone’s business, and we all stand to gain from the broad benefits and opportunities this monumental development will deliver.

Julie Coons has served as president and CEO of the Northern Virginia Chamber of Commerce since 2018. She previously served as chief operating officer of the Council of Better Business Bureaus and is an active member of numerous boards and organizations including Junior Achievement of Greater Washington, The Economic Club of Washington, D.C., the U.S. Chamber of Commerce’s Association Committee of 100, and the Association of Chamber of Commerce Executives.

Business climate change

It’s no secret that the COVID-19 pandemic brought about a revolution in how workers and businesses think about where, when and how we work. And that change is fully reflected in the survey responses we received from the 100 companies selected for this year’s Virginia Best Places to Work cohort.

Seventy-one of those 100 businesses reported that the pandemic has resulted in major adjustments to their work schedules, ranging from increased telecommuting opportunities to a fully remote workforce. In this issue’s annual Best Places to Work report, freelance writer Sydney Lake examines how some of Virginia’s best employers are negotiating this shifting workplace landscape.

Surveyed about the ways the pandemic transformed their workplaces, 30 companies said they have expanded telecommuting opportunities, including allowing for a mix of employees working in-person, remote and hybrid schedules. Another 21 companies reported that their workforces have gone fully or mostly remote, with 85% or more of their employees working four or more days remotely each week. And 20 businesses have implemented a hybrid work model, allowing employees to work a mixed schedule of remote and in-office workdays.

Most of these businesses reported implementing new conferencing and project management tools such as Microsoft Teams, Zoom and Slack to better help staff keep up with one another.

Equally as important to Virginia’s best employers is maintaining work culture in this new environment.

“Our culture is HUGE to us,” said a representative from the Dutch cloud computing/web services company Leaseweb, which has its U.S. headquarters in Manassas and now employs a hybrid/remote workforce. Once a month, the company holds an in-person “Leasewebber Day,” gathering employees for fun team-building activities ranging from going out for happy hour to holding summer barbecues and cornhole tournaments to renting out a movie theater to watch the latest Marvel movie.

Mythics Inc., a Virginia Beach-based federal contractor that allows employees to work remotely or in the office as needed, reported that it has “hosted a variety of virtual and in-office activities and contests such as wellness bingo, employee cookbook, virtual yoga, happy hours and other engaging activities.” It also implemented a “buddy” program “to engage/connect our new hires with current team members to accelerate integration with teams.”

Responding to the 2023 Best Places to Work survey, some of this year’s cohort companies also discussed how implementing remote work has been advantageous in allowing them to hire employees from around the nation, enlarging their applicant pools amid a tight and competitive labor market for many industries.

“We have expanded our hiring practices to include remote candidates for nearly every position except the office administrator in our physical office,” responded Richmond-based marketing agency Workshop Digital, adding that 41% of the company’s employees are now working remotely from outside the region. Due to that shift, the agency is also downsizing its physical office space and reinvesting the savings in its workforce and training opportunities.

Remote work has given employees more freedom to work where and when they want to, while helping companies retain employees who need or want increased flexibility. Some companies, such as Reston-based tech company Resonate, report allowing employees to relocate to other states. Richmond-based RiverFront Investment Group, which has moved to a hybrid work model, responded that “some associates have worked remotely in the mountains, at the river or in other countries near family for weeks at a time, balancing that with time in the office later.” 

Overall, Virginia’s best employers report that moving to more flexible work models has been good not only for employee morale but also the bottom line.

“COVID was an opportunity to encourage the kind of working freedoms that transformed our day-to-day operations,” responded Alexandria-based Xsensus LLP, an intellectual property law firm. “Our people were champions during this time, as we grew our business 30% year-over-year since the beginning of COVID. Of course, we needed to hire more administrative staff, but they too are able to work remotely!

“The changes made to our existing workplace policies have been so successful, we do not foresee any reason to change this policy because most people would like to continue working remotely.” 

Tax cuts are the way to grow

Virginia’s finances are in excellent shape, paving the way for the General Assembly to agree with Gov. Glenn Youngkin that it’s time to cut taxes in the commonwealth. It’s your money, not the government’s, and the government has collected too much of it over the last few years.

In a snapshot, Virginia’s coffers are full. The commonwealth ended fiscal year 2022 with a $3.2 billion cash surplus and is poised to end fiscal year 2023 with a $3.6 billion surplus. Our revenue reserves are set to reach nearly $4.3 billion by the end of the 2023-24 biennium, more than the constitutionally targeted 15% of revenues. These numbers show that Virginia is extraordinarily well-positioned to deliver both necessary investments in critical services and badly needed tax cuts for Virginia’s families, individuals and local businesses.

A surplus in government happens by collecting more taxes than appropriated expenses. As part of the formulation of the governor’s current budget proposal, long-serving and highly experienced budget experts prepared five-year projections of revenues and expenditures that anticipate a recession beginning this year and incorporate inflation and ongoing growth in critical education and health care programs. Plainly put, Virginians are overtaxed, and it’s time our leaders take a good look at bringing down taxes to make the commonwealth competitive with our neighbors.

Last year, the governor and General Assembly funded a record $3.1 billion in new investment for public education, including double-digit raises for schoolteachers and funding for school infrastructure across Virginia. Law enforcement agencies across the commonwealth saw $400 million in new funding for training, equipment and recruitment. Landmark commitments to economic site development were included to make the commonwealth more attractive to large-scale investments from global companies like Lego, which selected Chesterfield County for its first U.S.-based manufacturing facility.

Under prudent assumptions — which include an economic recession this year — ongoing state tax revenue is expected to exceed ongoing spending by $1.8 billion and more in future budget cycles, well beyond what is required to support the proposed tax relief package.

Overtaxed Virginians are voting with their feet and their wallets, moving to states with lower taxes and a lower cost of living. The Wall Street Journal ranked our targeted competitor states (Florida, Texas, North Carolina, South Carolina, Tennessee and Georgia) first through sixth for net population growth from domestic migration from July 2021 to July 2022. Meanwhile, Virginia ranked 42nd in the nation, losing nearly 24,000 people to domestic migration in that year alone.

Census data shows that every year for the past nine years more Virginians have moved to other states than have moved from other states into Virginia, totaling 132,000 in net domestic out-migration. Over that same time period, net domestic migration increased Florida’s population by 1.8 million. North Carolina’s population grew by 671,000.

When Virginians relocate, they take their livelihoods with them, at the expense of the commonwealth. IRS data show that, since 2013, Virginia has lost $9 billion in income due to the net loss of Virginians. The same IRS data shows that North Carolina, our closest competitor, gained $17.6 billion in income from former residents of other states.

Three of our competitor states have no income taxes and the other three have been strategically lowering tax rates and have attracted people to them.

Gov. Youngkin has proposed reducing tax rates for both individuals and businesses to enhance our competitive position and grow the economy. All taxpayers in Virginia will benefit from the $5 billion package. The proposed reduction in the top individual income tax rate will benefit 86% of Virginia taxpayers. Paired with an increase in the standard deduction to $18,000 for married taxpayers ($9,000 for singles), 47,000 Virginians will be removed from the income tax rolls. This plan also reduces taxes on a veteran’s military pension regardless of age, increasing the after-tax income of 152,000 Virginia veterans that will stay in Virginia to retire or start their second careers.

Reduction in the tax rate on businesses in Virginia from 6% to 5% will catapult Virginia to the second lowest rate among competitor states. Other proposed business tax changes, such as the Qualified Business Income deduction, will reduce the tax bill for 450,000 small business owners.

Our unprecedented financial strength allows us to reduce taxes while providing resources for additional spending priorities. The governor’s proposed budget also provides $2.6 billion for spending that complements our economic development strategy and enhances Virginia’s quality of life. This includes $450 million for additional business site development, research to drive innovation in small modular nuclear reactors, $230 million to transform our behavioral health system, retention and performance bonuses for our teachers, recruiting bonuses to encourage more men and women to enter law enforcement, resources to allow more nurses to be trained and ready to serve in our health care facilities, and $537 million to preserve the treasure that is the Chesapeake Bay.

We must reverse the trends of the past decade in Virginia to create a more prosperous commonwealth. By creating a more competitive tax code, Virginia is sending a clear message to individuals, families and companies: We are competing to win.

Virginia Secretary of Finance Stephen E. Cummings took his oath of office on Jan. 15, 2022. He oversees the state Department of Accounts; Department of Planning and Budget; Department of Taxation; and Department of the Treasury along with the Virginia Resources Authority and Virginia Board of Accountancy. He previously served as president and CEO of Mitsubishi UFJ Financial Group Inc. (MUFG) in the Americas.

Breaking rank

What a difference a year makes.

On July 13, 2021, against a backdrop of ships blasting their horns and spraying water in celebration at the Port of Virginia’s Norfolk International Terminals, Gov. Ralph Northam sat for a harborside interview with CNBC, which had just named Virginia the nation’s best state for business for an unprecedented second consecutive year. (Virginia previously won the No. 1 spot in CNBC’s America’s Top States for Business list in 2019; the cable business news network suspended the 2020 rankings due to the pandemic.)

“This is an exciting day for Virginia,” a grinning Northam said, going on to tout the state’s investment in the port’s infrastructure.

Exactly one year later, under new Republican Gov. Glenn Youngkin, the commonwealth presented a very different response after Virginia was bumped from the top spot by North Carolina, with CNBC ranking the Old Dominion as the nation’s No. 3 state for business in 2022.

There were no news releases sent out from the governor’s office recognizing the fact that coming in third out of 50 is still pretty darn good. Ditto, there were no kudos extended to our southern neighbor.

Instead, when asked by reporters about the rankings, Youngkin said, “I’m always so appreciative of Virginia receiving good accolades … [but] Virginia has not been performing like the best state for business.”

This isn’t a case of sour grapes on Youngkin’s part — it’s a consistent position.

During his campaign for governor, Youngkin downplayed Virginia’s No. 1 ranking, noting that Virginia’s pandemic job recovery numbers in late summer 2021 had placed it among the bottom five states. He’s also been critical of the cost of living and doing business in Virginia, as well as the fact that Virginia lags behind many other states in the availability of large, shovel-ready sites for larger economic development projects. (Incomplete site grading was cited as one factor for why Hyundai chose a site in Savannah, Georgia, for a $5.5 billion electric vehicle battery manufacturing plant in May instead of Pittsylvania County’s Southern Virginia Mega Site at Berry Hill.)

CNBC bases its rankings on 88 metrics, including workforce (the most heavily weighted category); education; cost of living; technology and innovation; and access to capital.

“A great education system is building a smart workforce,” CNBC said about Virginia this year, “but migration has slowed to a state where living costs are high.”

In terms of infrastructure, CNBC ranked Virginia ninth best in the nation, citing the commonwealth’s ongoing $3.8 billion Hampton Roads Bridge-Tunnel expansion, as well as the fact that 89.3% of Virginians have broadband access. (Also, just 4% of bridges and 13% of roads in Virginia are in poor condition, the network noted.)

Nevertheless, CNBC gave Virginia a D+ grade for cost of living and C+ grades for its economy and life, health and inclusion.

To his credit, Youngkin, former co-CEO of Washington, D.C., private equity firm The Carlyle Group, has said that as governor his priorities include job creation and lowering the costs of living and doing business in the commonwealth.

Responding to the CNBC rankings, Youngkin noted that Virginia jobs numbers improved dramatically during the first six months of his administration, and he touted economic development successes such as the June announcement that the Lego Group plans to build a $1 billion toy manufacturing plant in Chesterfield County. Yet, the governor distanced himself a bit from the factors that CNBC criticized, saying that while he’s working to improve the economy, his administration’s also “had to dig out of a hole” he inherited from Northam.

Meanwhile, Virginia Democrats issued a statement, claiming that Youngkin’s “culture war” and stances on issues such as abortion (the governor has proposed banning abortions after 15 weeks of pregnancy) “are driving business away” from Virginia. State Democrats also charged that Youngkin is too focused on his rumored interest in a 2024 presidential bid.

After just six months in office, though, it was probably still a little early for Youngkin to either take credit for the good or blame for the bad. And if Virginia politicos learned any lessons from former Gov. L. Douglas Wilder’s term, it is likely also far too soon to chase national ambitions.

Rethinking labor

Back in my big company days, large newspapers were heavily unionized. After railroads and before high tech, newspaper publishers were the media barons of the day. The business was capital intensive, requiring once-in-a-generation investments for big presses and printing facilities. It was also high on fixed costs, with payroll being the largest expense before newsprint and other departmental expenses. Still, profit margins were high. Newspapers were a great business for their owners.

Viewed as a manufacturing process, it’s no surprise that labor was unionized in the pressrooms. Additionally, many newsrooms were organized by the Newspaper Guild. Truck drivers belonged to the Teamsters. In those pre-internet days, customers called by phone and actually spoke to a person. Subscription services and classified advertising were staffed by large banks of telephone operators, some organized by the Communications Workers of America. Not every newspaper had these unions, but they were an ongoing threat to profit across the industry.

Unions were expensive, with dues for members, and they stood between management and labor in workplace communications. They were afforded protections by the National Labor Relations Board that drove up legal costs. Union negotiators weren’t exactly what you’d call friendly types.

During a decade or more in the early 1990s, the company where I worked successfully decertified something like 12 of 16 organized labor units across various markets in the Southeast.

Decertifying a union was hard work, requiring years of hardball negotiations. Fair, reasonable and commonsense raises and benefits that went to nonorganized employees were withheld from union members. Reaching an impasse was considered a victory because it allowed the imposition of the last set of terms offered. Under NLRB standards, just getting signature cards from employees to call a vote on decertification was very difficult. Other corporate tactics included outsourcing and job elimination.

During the period when all this was happening, the U.S. economy was undergoing a massive transformation from an industrial economy to a service economy. Unions had their heyday across many sectors but were losing their influence. Instead of employees, it became popular for companies to call workers “associates.” The value of human capital began to be recognized as a true asset, equal to or even more important than financial capital.

For as long as I can remember, the legislative lobbying mantra of the business community has included three priorities: low taxes, fewer regulations and a low minimum wage. Perhaps it’s time to rethink the value of these propositions in a more contemporary context.

While promoted as a driver of job growth, low taxes have contributed significantly more to income disparity than to job creation. Inadequate regulation has accelerated climate change to the point of global crisis. Low wages are driving people out of the workforce and stifling consumer spending across large segments of our economy.

After the long decline and fall of the influence of labor unions, it is amazing to see wealthy companies like Amazon facing organization efforts. Even Starbucks, which promotes a progressive image, has seen two stores unionize and other locations attempting to organize in recent months. Perhaps the ultra-rich owners of these companies should think less about matters such as outer space and transcendental meditation and more about their employees here on Earth.

Closer to home, it amazes me to see small newspaper newsrooms here in Virginia beginning to reform labor unions. I understand their pain, but it’s a futile and uphill battle against the tallest of odds in what has become a much-beleaguered industry.

When you talk to smart business leaders and ask what accounts for their success, they will often say, “We have great people.” That has certainly been my own experience. People are the most important competitive asset. Yes, government needs to do its job, but so does business.

Let’s think differently about labor. A rising tide should indeed lift all boats. 

Closing the digital divide: It’s not optional

With the Senate’s passage of a massive infrastructure bill, there is rare and refreshing bipartisan consensus on the need to close the digital divide, which came into sharp focus during the pandemic. As much of daily life, including work and school, shifted online, underserved communities faced huge obstacles to productivity and success.

The sweeping bill dedicates $65 billion toward expanding broadband internet access- and this is urgently needed. A recently released report from the Atlantic Council’s GeoTech Commission echoes this call-to-action as it will be vital to our nation remaining economically viable in the coming “GeoTech Decade,” an era in which emerging technologies have the potential to impact national security and reshape society.

Now policymakers need to realize the high-stakes inflection point at which our country stands and support the following specific bold actions to eliminate the digital divide:

Bolster broadband access

A just-released Pew Research Center survey finds even as U.S. households with lower incomes (below $30,000) make gains in smartphone adoption, four out of 10 adults lack access to broadband, a computer or a laptop at home.

This reality reveals itself in the “homework gap,” or the gap between school-age children with access to high-speed internet at home and those without. According to 2015 U.S. Census Bureau data, 35% of lower-income households with school-age children did not have a broadband internet connection at home. Fast-forward five years and astonishingly this problem has only been exacerbated. After the pandemic hit, nearly 60% of low-income parents reported their children lacked either reliable internet access, a home computer, or a smartphone to complete their studies, according to Pew Research Center data collected in April 2020. Contrast that with households earning over $100,000 annually, where only 1% of adults reported a similar lack of access.

Leaders should keep two important factors top of mind as our digital infrastructure grows. The first is the cost to local communities and households. Up to 60% of disconnected students hail from families that cannot afford to pay for internet access or devices. The second is expediency of implementation. Technologies such as fixed wireless access, advanced antenna systems, and network automation to optimize quality of access are all options available to us right now.

Grow digital fluency

The digital divide’s very definition has expanded over the past three decades and now also includes the inequity between those with and without digital technology skills, also known as digital literacy. Again, here the U.S. lags.

According to the National Science Board, the U.S. will experience a shortfall of nearly 3.4 million skilled technical workers by next year. A whopping 96% of technology executives say talent staffing in 2021 is “very” or “somewhat” challenging. The skills gap is acute for emerging technologies. Specifically, the AI talent deficit is the U.S. government’s single-greatest inhibitor to buying, building, and fielding AI-enabled technologies and is rapidly becoming a top national security priority, according to the National Security Commission on Artificial Intelligence.

The federal government, which has invested considerably in AI, needs to empower its workforce to lean into AI’s promise. One study predicts productivity gains of up to $532 billion per year in the public sector by 2028 with the automation of repetitive tasks and the augmentation of human capabilities.

From robotic process automation (RPA) to quantum computing to virtual reality, developing a digitally fluent workforce requires a fresh look at how emerging technology competencies are acquired and the training incentives being offered by employers. Such investments should directly align employers’ needs for technically skilled workers with the training and education programs they provide. More robust tax incentives for skills training should also be included among the solutions to the skills gap.

Promote career technical education

According to the National Science Board, one reason for the paucity of qualified skilled workers is simple. Students and graduates have not been adequately empowered by the K-12 system with the math and science skills the careers of today and tomorrow demand.

Importantly, the digital divide reinforces skills gap racial inequities. Consider the following concerning realities: While one-third of all white workers in 2018 had jobs they could perform at home, less than 20% percent of African American workers and 16% percent of Hispanic American employees worked at jobs that could be performed remotely. Without intervention, a majority of African American and Hispanic American workers could be locked out of 85 % of the existing occupations by 2045.

The U.S. needs a cultural re-evaluation of what it means to be a member of today’s skilled technical workforce. While for decades we prioritized bachelor’s degrees, the reality is the pathway to the middle class no longer mandates a four-year degree. In fact, career technical education (CTE) can now often provide new grads with the lifestyles they aspire to more quickly than a college or university degree.

Students need to be better informed in middle and high school about the exciting variety of existing and future technical occupations ripe for the taking. They need guidance on pathways toward acquiring tech skills credentials, including certificates, professional licenses, digital badges, apprenticeships, and pre-apprenticeships, as these now can forge meaningful points of entry into lucrative careers.

To fully achieve the promise of the GeoTech Decade, the U.S. cannot be left behind by the speed, scale, and sophistication of technology’s advancement. Let us seize this moment, bridge the digital divide, and blaze a trail toward a prosperous future for America and all its people, regardless of zip code.

John Goodman is CEO of Accenture Federal Services, co-chair of the Atlantic Council’s Commission on the Geopolitical Impacts of New Technologies and Data, and a 2020 Virginia 500 honoree.

David Bray is executive director of the Atlantic Council’s Commission on the Geopolitical Impacts of New Technologies and Data.

What’s good for HBCUs is good for Virginia business

Earlier this year, I issued a call for the commonwealth to confront and reassess its disproportionate support of its historically Black colleges and universities (HBCUs).

I wrote a letter to the governor, lieutenant governor, attorney general and the respective leadership of the General Assembly. At this juncture, I have not received any acknowledgment or response to the letter from anyone.

Federal courts have pushed to end de facto segregation by ruling that states cannot have a dual system in colleges and universities. HBCUs were there when there was nowhere else for people of color to attend college. I know, because I was one of those students who was fortunate to be able to attend Virginia Union University, located in my hometown, Richmond, Virginia. The University of Richmond forbade me from matriculating there.

When I returned home from fighting on the battlefields of Korea, I studied law at Howard University School of Law in the nation’s capital.

I did not have the time or money to engage in litigation to attend law school in Virginia.

The increase in the number of white students on Black campuses and of Black students on white campuses should not come at the expense of the Black sector. The governor, the General Assembly and the Virginia business community need to demonstrate collaborative leadership so that every student has the opportunity to achieve the American dream, thereby becoming a taxpaying contributor to Virginia’s economy and improving our quality of life.

In my public life, I have practiced fiscal responsibility. I was proud, during my gubernatorial administration, to have had Virginia selected for the first time ever as the best fiscally managed state in the nation. This was done two years in succession.

I think the governor and General Assembly have the responsibility to immediately provide significant and ongoing funding to our four HBCUs (Virginia Union University, Hampton University, Virginia State University and Norfolk State University) from Virginia’s $4.3 billion share of federal relief funds from the American Rescue Plan Act. This commitment should include initial grants of $50 million to each HBCU for scholarships, recruitment, retention, research, academic programs and capital projects, as Virginia has historically allocated to its predominantly white institutions.

There is no plausible alternative.

Let us not forget, the General Assembly found a way to act quickly when it wanted to institute the morally repugnant policy of Massive Resistance. Virginia must now give meaning to its words to correct the inadequacies of its past, and to provide hope for the future of all Virginians.

The time is now.

The first African American governor elected in the United States, Gov. L. Douglas Wilder served as Virginia’s 66th governor from 1990 to 1994. He also served as Richmond’s first at-large elected mayor in modern times from 2005 to 2009.

Seizing our future by creating value together

Here in Virginia and across the nation we are witnessing an unprecedented effort to create greater equity — in consideration, treatment, opportunity and investment — throughout our society. Media attention has focused intently on what governments are doing to evolve their policies, but businesses are rapidly transforming as well, confirming the effectiveness of existing practices or creating more equitable approaches to serving customers and collaborating with employees and other stakeholders.

We clearly are at a turning point in American history, and — make no mistake — we also are writing a vital new chapter in the advancement of human society. As business and community leaders, we are continuing to propel a centuries-old evolution that has fostered greater freedom and social equity. Despite the gaps we see today, we’ve come a long way. Think back to ancient Rome or the Middle Ages or the era of colonization: Economic structures kept power and wealth firmly in the hands of a few well-heeled families. Meanwhile, the masses toiled in fields or at other rough labors, doomed to a life of poverty. These humble folks did their jobs; no one surveyed them to gauge their satisfaction.

But then, around the time Thomas Jefferson was infusing the Declaration of Independence with revolutionary ideals such as being created equal, the Industrial Revolution was dawning overseas and eventually would boost those brave ideals. We all know that efficiency, not equity, drove the rise of the industrial economy in the United States. But as workers gained technical skills and (sometimes) union clout, employers were forced to cede some power and — surprise, surprise — realized that their companies often performed better. This power shift continued with the information economy as employers refined their workplace policies to compete for workers who had valuable, specialized knowledge and seamless career mobility.

Just when we thought things might be settling down, there’s this: the sharing economy, which is dynamically and digitally connecting people, services and assets — and completely disrupting traditional buyer-seller and employer-employee paradigms.

As business leaders, we must operate in the midst of these economic, social and technological forces while also charting a sustainable path forward. Our companies’ futures, brands and reputations are at stake, so we need to advance boldly. Yet, we worry about making costly missteps. Even if we execute a “perfect” product or service launch, unforeseen issues may arise with how we did it and who we included in the process. This is a serious quandary, but it’s one we can more readily resolve by seeing our diverse stakeholders in a different light and engaging them actively and continuously.

We’re entering an era that will blur the lines between companies, employees, business partners, customers and communities. We will bring these parties together to “co-create” outcomes to benefit a full spectrum of stakeholders while also driving growth and profitability. The value that’s created — and the goodwill generated — will fuel what I call the co-creation economy, which can move us into the future.

Co-creation was pioneered in the technology field, as developers engaged customers to get initial input for new products. At my company, we view co-creation as a continuing cycle of interaction, learning and communication — from the start of a project to the end, and beyond.

There are five sequential steps:

  • Understand – Begin the process by listening to a range of stakeholders before devoting resources to developing a product or solving a problem.
  • Envision – With the benefit of very early input, we can define the scope, focus and general attributes of what we are creating with greater confidence in our direction.
  • Commit – This degree of confidence manifests as firmer commitments to actions and budgets, which inspires employees and generates advocacy among customers and stakeholders who get status reports about the “great new thing” they’ve helped to shape.
  • Assess – Beyond mere product testing, this means asking hard questions of ourselves and our stakeholders: Have we thought of everything? Who or what are we neglecting? How might this initiative lead to unintended consequences?
  • Learn – After the ribbon is cut or the product is in market, we must scrutinize our co-creation. It always can be better and, importantly, the next time around we will have leaders, employees and stakeholders who understand co-creation more fully and who can wring the maximum value from it.

This holistic form of co-creation is, by nature, a means to advance diversity, inclusion and equity. We cannot co-create effectively with the “usual suspects” in a conference room with a whiteboard and spreadsheet. And we can’t hold productive discussions — with employees, customers, community members, business partners and others — without drawing on a more diverse group of talent and hearing fresh perspectives about how to proceed in more equitable ways.

We have the chance to pioneer the co-creation economy and enjoy a full spectrum of benefits: equity, innovation, financial results and human progress. Such outcomes serve the business community well – and fulfill the vision our Founding Fathers wished for us.

Diana Mendes is corporate president, infrastructure and mobility equity, for HNTB Corp., an Arlington-based infrastructure solutions firm providing planning, design, program management and construction management services.

Lessons from COVID-19

For most of us, March 13 marked the one-year anniversary of our worlds ceasing to operate normally. We remember institutions closing, schools shuttering, and that last day in the office. These pandemic times have compelled me to reflect, learn and remember.

I was making ham biscuits for Easter when I heard Merle Haggard’s song, “Are the Good Times Really Over?” We must be more careful, thoughtful and selective, but our best days are still ahead — not in spite of COVID-19, but because of it.

These lessons and opinions are mine and do not necessarily reflect the views or opinions of anyone else, including my employer.

Don’t miss the simple experiences.

COVID-19 has required us to work and go to school from home. Proximity to family, without the distraction or outlet that extracurriculars provide, has made me focus on what is most important. I have been able to have dinner with my family almost every day — and sometimes even lunch. My son and I have experienced what Mr. Rogers once opined, “Pretending doesn’t require expensive toys.”  My daughter still prefers the expensive toys.  I’ve been in awe of how well my wife can manage our lives, while still practicing and teaching law.

These small experiences make up life, and are collectively more important, than the big events. COVID has made our entire family slow down. It’s helped me understand how much time I had previously spent away from home and has inspired me to rethink my commitments. Do I really need to miss dinner three or four nights a week? Could I prioritize my board service?

On her seventh birthday, my daughter told me, “It’ll be so sad when coronavirus is over, Daddy, because you won’t be home as much.” I’ve spent more time not only listening to my virtual first grader, but actually hearing her.

Isolation compels you to look inward.

It’s healthy to ask yourself tough questions, answer honestly and confront the findings. When you’re busy running between events, it’s difficult to take time out. But with fewer ballgames, only takeout and no in-person church, opportunities abound to assess your life. How strong is my relationship with my spouse? Am I contributing to my family adequately? Is my career fulfilling? Am I a good parent? Do I set a good example? Am I too busy living life that I’m not enjoying it or appreciating it? What am I doing every day to pursue my dreams? More than anything, I tell my kids that I want them to be thankful and kind. But it took a pandemic for me to assess whether I’m living up to that standard.

Your health and access to health care are an invaluable gift, not to be taken for granted.

Obviously. Now more than ever.

 We’re not living up to our social and charitable ideals.

Charitable organizations, churches and governments purport to be focused on helping the elderly and the poor. We have a plethora of concerned people, with their hearts, minds and finances targeting upward mobility.

But these populations have been the hardest hit by COVID-19, compelling us to rethink how we can better respond. Even with Medicaid expansion, these groups often underutilize their medical benefits. They may not have the awareness, time or transportation to take advantage of the safety nets that are available.

It is complicated, but these service institutions bear some blame for overcomplicating it and not collaborating effectively. Getting all concerned parties on the same page is simple, but essential, in better serving these populations.

We must fairly explain to children about our country’s racial history and also its current inequities.

We have talked with our children about slavery, the Civil War and the civil rights movement. It has been important for us to focus on Virginia’s role in the founding of our nation since our family has been here all along. Our kids have these facts and comprehend them as kids do, but the past year has taught us that we must talk to them about the differences and disparities that still exist. Inherent or implicit bias in policing, housing, transportation, education, unemployment and health care are just some of the racial inequities that have been laid bare during this COVID era.

Last summer’s racial justice protests compelled many of us to have these conversations with our kids. Perhaps these dialogues are another silver lining to being home during COVID, a positive outcome from the social unrest, and will empower our kids’ generation to be the first to reduce these inequities instead of perpetuating them?

There is virtually no substitute for certain in-person experiences.

My wife and I have learned that online and drive-in worship services are not viable substitutes for gathering in person. The same is true for other cultural institutions, like the Richmond Forum.

Feelings of isolation from family and friends have been exacerbated by separation from our church family. It is nice to catch up with people on Sunday morning, share in their successes and challenges, and realize that not only are most of us having similar experiences, but we are here to know, support and pray for each other. We miss that time when we did not have to pick sides, consume real or social media or experience noise, even for just an hour.

We cannot wait to be back in the fellowship hall and the sanctuary, as well as the Altria Theater.

 State government is the difference maker.

The state’s response to COVID has affected our lives more than the unreliable and inconsistent response we’ve seen from the federal government.

This puts a premium on who we elect later this year as governor, lieutenant governor and attorney general, as well as to the House of Delegates. The governor and attorney general will have the most to do on a daily basis to help us move beyond these current challenges and prepare for the next ones.

No one could have been adequately prepared to flawlessly manage our response over the last year. Authenticity, calm and experience taking care of children at pediatric hospitals and service members on the battlefield has served Gov. Northam well.

Who has real-life experience that has adequately prepared him or her to govern in a time of crisis? Who has thrived under real pressure and led well? In times like these, we can’t afford to allow candidates to fumble forward.

COVID has made the world different. No candidates should claim they are ready to serve Virginians, let alone ask for money or votes, unless their experience compels it.

 The situation can always get worse.

Virginia’s first COVID case showed up at Fort Belvoir in Fairfax County. Then it spread. Schools were shuttered. We were considering building field hospitals, which were thankfully never needed. Then George Floyd was murdered, and peaceful protests and violent riots created a racial justice crisis.

Then we entered a bizarre political season where polarizing leaders politicized public and private health decisions, leading to further spread of COVID-19. The November 2020 presidential election made matters worse. COVID spiked because people didn’t follow health guidelines over Thanksgiving and Christmas. And then, a big group tried to take over the Capitol of the United States while Congress was tallying Electoral College votes.

We finally got a vaccine, but all levels of government were underprepared to distribute it. Lately, I keep reading about all the COVID variants, and we know that the pandemic will continue until essentially everyone is vaccinated.

Having learned that the situation can always get worse, it is hard to avoid worrying about what’s next. But with two shots in my arm, hand sanitizer in my pocket, and a smile under my mask for a little while longer, I’m deliberately focusing on how this situation will get better: in-person school, church in a pew, a date in a restaurant, flying in a plane, tailgating in a parking lot, and Christmas parties.

Even with all its carnage, perhaps another silver lining to living through COVID-19 is that it has prepared us for the next pandemic. Through many errors and trials, we have developed a playbook and hopefully it will  be dusty when it’s needed again.

The late, great U.S. District Judge Jackson L. Kiser, for whom I clerked in Danville, once told me, “You never appreciate the water until the well runs dry.” He had just sentenced a bad guy, and his family was crying in the gallery as they said their goodbyes for a long time.

COVID-19 has compelled us to confront not only all that we have, but all that we have at risk. I remain optimistic that these lessons will help ensure that the good times really aren’t over for good.

A Shenandoah County native, Rhodes B. Ritenour lives in Henrico County with his wife and two children. He is vice president of external and regulatory affairs with Bon Secours Health System. A co-founder of The Diabetes Support Group, he previously worked as a policy staffer for Virginia Gov. Mark Warner, as a partner at the former LeClairRyan law firm, and served as deputy attorney general for civil litigation.

5 ways Va. can put people back to work and transform higher education

It’s tempting these days to believe that once COVID-19 is contained, the U.S. economy will bounce back quickly, replenishing jobs and incomes lost in the pandemic. Yet there are early warning signs that when the labor market fully reopens, some high-demand jobs may be hard to fill even with millions of Americans looking for work.

This fall, hundreds of thousands of people delayed — or gave up on — their plans to pursue postsecondary education and training. Most of that decline occurred at community colleges, where enrollment fell by more than 10%, or more than 544,000 students nationwide.

Typically, college enrollment rises during an economic recession, especially among out-of-work adults who need to polish their skills to get a leg up in the job market. Yet, despite a record spike in unemployment and a broadly held view among working-age Americans that more education and training will help them get a good job, the number of people — both young and old — pursuing a postsecondary credential or degree sharply decreased this fall.

The steepest and most unsettling drops have been among low-income learners and students of color. Consider the following, based on enrollment data collected by the National Student Clearinghouse and household surveys conducted by the U.S. Census Bureau:

    • The share of older adults enrolling in college for the first time declined 30%.
    • Among students who graduated from high school in 2020, postsecondary enrollment was 22% lower than it was for members of the class of 2019. Enrollment plunged the most among students who graduated from high-poverty, low-income, and urban high schools.
    • About 48% of people from low-income households canceled their education plans — nearly double the rate of people from wealthy households.
    • Community college enrollment fell 20% among Black and indigenous men.

As president of Northern Virginia Community College and senior vice chancellor of the Virginia Community College System, we know all too well the struggles facing our communities and what needs to be done to support more people in moving off the economic sidelines and into skill-building that leads to quality jobs and careers. We have joined forces with community college leaders across the nation to form The Policy Leadership Trust to call for change on campus and in public policy to make higher education more responsive and relevant to the changing nature of work and the changing needs of today’s learners.

Doing these five things would be good for Virginia’s students, employers, and the economy:

      1. Provide people with the in-demand skills they need to get a job and advance their careers. Expand FastForward short-term training opportunities and ensure that the training is affordable and of high quality to meet business and industry needs.
      2. Ensure that learning is accessible anywhere and at any time. Address digital disparities in access to remote instruction, including access to broadband, and remove barriers to competency-based and accelerated education models.
      3. Remove financial hurdles to college enrollment and completion. Fully fund G3 to cover the costs of tuition, fees and books for low-income learners so that in an uncertain time, they can count on being able to afford college and complete credentials leading to high-demand jobs.
      4. Help people earn while they learn. Bolster college and employer partnerships in apprenticeship, work-study, and other work-based learning experiences that connect education and career goals. These partnerships build workplace readiness that benefits both the student and the employer.
      5. Help students navigate the first year of college. Ensure that student populations that have been historically underserved or deemed not ready for postsecondary education have sufficient supports to access financial resources, choose sustaining career pathways, enroll in programs, and succeed in essential coursework. Completing first-year math and English courses, for example, is proven to create early momentum toward credential attainment.

We encourage Virginia’s policymakers to push forward with these common-sense policy reforms and investments in our community colleges. The road to economic recovery runs through our institutions. Virginia’s community colleges reflect the diversity of the commonwealth, serving the very groups disproportionately impacted by the pandemic — those who most need the state’s support. We urge policymakers not to miss this opportunity to expand our colleges’ ability to offer the specialized, career-focused programs and supports that are key to Virginia’s post-pandemic economic future.

If policymakers fail to act, the growing mismatch between the skills that workers have and the skills that employers need could ultimately curtail Virginia’s economic growth for years to come.

Anne M. Kress is president of Northern Virginia Community College. Sharon Morrissey is senior vice chancellor for academic services and research for Virginia’s Community Colleges.