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Tag: opinion

Higher gas prices are needed

The U.S. inflation rate, which reached 8.6% in May, is at its highest point in 40 years. In 1982, it was just over 6%. Since then, the U.S. inflation rate has hovered mostly in the 2% to 4% range.

The inflation rate is determined by changes in the cost of a fixed basket of 80,000 goods and services that Americans use in their everyday lives. These include food and housing, furniture, medical costs, gasoline and other energy expenses. All are combined into a single measure, weighted on the basis of how much of each item a typical family consumes. Items are added and subtracted over time based on changes in consumption patterns. If that sounds complex, it’s because it is. For simplification, the one item most often referred to is the price of gasoline at the pump.

In 1982, the average U.S. cost per gallon of gasoline was just $1.22. For reference, the U.S. prime rate at that time was a whopping 13%.

Consumer gas prices remained relatively stable over the next 20 years, until they began a steady climb in the early 2000s, peaking at $4.14 per gallon in 2008 during the Great Recession. There was a steep drop in late 2008 to $1.75, followed by a gradual rise back to $3.96 in 2012 and then a steady decline to $1.87 in 2016. At the beginning of this year, gas prices started around $3.40. They’ve since risen sharply to a national average of $5.01, as of June 15, according to the American Automobile Association (AAA).

While it is tempting to think that gas prices have something to do with inflation, interest rates or maybe even who’s occupying the White House, it’s really none of those things. Oil is a global commodity; supply disruptions due to war and production quotas negotiated between oil-producing countries have a much greater impact than anything happening in the U.S.

Five or more dollars a gallon sounds high, but it’s a bargain compared with the rest of the world. All countries have access to the same global petroleum market, but different taxes and subsidies lead to different costs at the pump.

In general, wealthy countries pay higher prices for gas, and poorer countries, along with those who export oil, pay less. With an advanced economy but relatively low gas prices, the United States is a notable exception to this rule. Current gas prices in most of Western Europe are as much as 103% higher than in the U.S., ranging from around $7.65 (Germany) to $10.22 (Norway) per gallon.

Within the U.S., prices differ state by state. In mid-June, Georgia had the lowest price per gallon at $4.50. California’s price was highest at $6.44. Virginia’s $4.87 price was below the $5.01 national average.

While politically popular, below-average gas prices do come with unintended consequences.

The U.S. lags behind the rest of the world in the development of alternative energy. Carbon emissions have led to climate change, increased storm activity, wildfires and sea-level rise.

The consensus in the scientific community is that climate change is moving past the tipping point and causing catastrophic damage that will be difficult or impossible to reverse. Some may choose to ignore science or promulgate different viewpoints, but they do so at their own peril, as well as to the detriment of others.

Low gasoline and oil prices are a subsidy that undermines the development of alternative energy production. Let’s face it: Virginia isn’t Texas; we’ll never be an oil-producing state. (The General Assembly banned coastal oil and gas drilling in 2020.) A revival of coal mining also will not happen. Even if it could, it wouldn’t create jobs. Mining technology has totally changed. Virginia’s energy mix is dominated by natural gas and nuclear. We need more of both, but the development of new capacity is hampered by low prices for power sources that produce higher carbon emissions.

On the other hand, there is offshore wind. In the U.S., Virginia is working to be at the forefront of this developing industry. Other nations with higher gas and oil prices are already decades ahead.

For over 100 years, a federal law known as the Jones Act has specified that cargo carried between U.S. ports must be on ships that are U.S.-owned, U.S.-built and U.S.-crewed. That is why Dominion Energy Inc. is spending $500 million to build its own vessel to install the 176 turbines for its $9.8 billion wind farm off the Virginia Beach coast.

Offshore wind development will not only create jobs, but it will also drive growth for Virginia’s ports and maritime industry.

Though politically popular, low gas and oil prices are stifling the growth of noncarbon alternatives. The U.S. needs to step up. Virginia has competitive advantages in this area. That’s good for the commonwealth. Given climate change, this should be viewed as both an opportunity and an obligation

The evolving workplace (or what I wish I told my younger self)

In 1983, when I walked through the doors of my first job in Washington, D.C., I could have never anticipated where life would take me — from a young staff accountant to a vice chair at Ernst & Young, advising C-suites and boards, as well as leading thousands of professionals. And now it’s bittersweet to be retiring from EY in just a few short weeks.

This spring, as graduates everywhere are preparing to navigate their transition to the professional world, I’d like to share three things I’ve learned over the decades — and what I would tell my younger self.

First, the workplace has evolved in countless ways. Interoffice memos gave way to email and instant messaging, executive teams have thankfully diversified, and long gone is the idea that bosses must be stern overseers. Today, the most effective leaders know that authenticity, listening to others and showing empathy are key to winning trust. Now, it’s not only welcomed, but encouraged, that we bring our whole selves to work.

About eight years ago, my youngest son came out as transgender. While I had long prided myself on supporting diversity, equity and inclusion, this was a transformative moment. With my son’s permission, I shared openly about our family’s journey, hoping to convey to LGBTQ+ people that they are seen, cherished and valued. I then leveraged my influence to advocate for change, working to pass anti-LGBTQ+ discrimination laws in Virginia and Massachusetts and to lobby Congress in support of the Equality Act.

It’s clear that people don’t want to work for bosses: they want to work for, and with, real people. Being yourself, and being open and honest, helps create trust with your teams, as does listening to their ideas and respecting others’ perspectives.

Second, I’ve also learned about the power of servant leadership. I’ve lived through terrible events, from 9/11 to several recessions to social injustices and now the pandemic. Each of these challenges has underscored that, in times of crisis, leaders are meant to serve, not be served.

In 2009, I was leading our Strategy and Transactions team when the financial crisis struck. Our business worked on corporate transactions, and I immediately focused on the economic fallout. But that moment was not about my fears. My teams were anxious and afraid, and I realized I needed to be calm and show others that I cared rather than put myself first.

On an aircraft carrier, the officers are always the last to eat. Bring this mindset into your career: Focus on serving your teams and meeting their needs before your own.

Lastly, like many people, staying at home during the pandemic helped me find a balance for the first time in years. I recognize that I’m lucky; my kids are young adults, and I haven’t been juggling virtual school with a full-time career. But if there’s one small silver lining of the pandemic, it’s that talking about emotional wellbeing and preventing burnout is no longer taboo.

Earlier in my career, I contemplated quitting on three separate occasions. I loved my job but was burned out. Turns out that working 16-hour days for 18 months with no vacation is a recipe for exhaustion and cynicism, and I had to learn the hard way that it’s not selfish to set boundaries. I am hopeful that today’s professionals are now keenly aware that prioritizing their mental, physical and emotional health is a must.

At this turning point, I look back at my younger self with empathy and nostalgia and am grateful for all my life experiences to date. To tomorrow’s leaders: learn your own lessons, pass them on to future generations and enjoy the ride. Take it from me — the years will fly by faster than you can imagine.

Based in Northern Virginia, Richard Jeanneret is a vice chair and U.S. east region managing partner for Ernst & Young, a position in which he has led more than 12,000 East Coast professionals. He previously served as EY Americas Strategy and Transactions Leader. Jeanneret holds a bachelor’s degree in economics from Boston College. He is an ex officio board member of the Partnership for New York City, a member of the Economic Clubs of New York and Washington, D.C., and a board member for Vienna-based Wolf Trap Foundation for the Performing Arts, the Lincoln Center Business Advisory Council, Over & Above Africa and Out Leadership’s Global Advisory Board. Jeanneret is retiring as of July 1, 2022.

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. 

Media matters

It’s hard to have a conversation about anything in the headlines, especially anything to do with technology or politics, without some blame being assigned to “the media,” as if there were one enormous unified communications cloud shaping all our collective thoughts. That would be enormous for certain, but the media is perhaps more consolidated than one might think.

Thinking back, the early cable and pre-internet days seem like living in a land before time, when the economics of the media business were easy, and the industry was represented by voices aplenty.

In 1975, the Federal Communications Commission (FCC) adopted newspaper-broadcast cross-ownership rules to prevent companies from owning newspapers and television stations in the same market.

In 1999, the FCC subsequently adopted an “eight voices” test to ensure that common ownership of media outlets in a single local market would not reduce diversity of opinion or minority opportunities. The underlying thesis was that multiple voices would promote competition and better serve the public interest.

After decades of litigation by broadcast groups and newspaper owners, the FCC ultimately eliminated these rules. Changes in technology and the overall media landscape have made them unnecessary. On appeal, the U.S. 3rd Circuit Court of Appeals rejected the FCC’s relaxation but was subsequently overruled by the U.S. Supreme Court in April 2021.

Looking back, the emphasis on local markets seems misguided. Nothing was done to curtail the growth of media conglomerates across multiple markets. In addition, the FCC regulations never applied to cable or internet companies. These alternatives originally were called the “500-channel universe.”

Today, traditional cable industry giants such as Comcast Corp., Warner Media LLC, Cox Communications Inc., ViacomCBS Inc., Hearst Communications Inc., Fox Corp. and The Walt Disney Co. all have revenue in the billions. And they’re on track to be superseded by a host of on-demand, streaming competitors such as YouTube, Netflix, Amazon Prime Video and Apple TV+.

Meanwhile, local daily and weekly newspapers have become a vast wasteland.

According to a 2020 report by the University of North Carolina Hussman School of Journalism and Media, over 15 years the U.S. lost 2,100 daily and weekly newspapers — more than 25% — leaving 1,800 communities with no local news in print or online. From 2018 to 2020, 300 newspapers closed, 6,000 journalism jobs disappeared and local newspaper circulation declined by 5 million.

Anecdotally, we hear the loss of local business news has been even greater, as large media companies consolidate ownership of daily papers and cut coverage.

Alden Global Capital,* Lee Enterprises Inc. and McLean-based Gannett Co. Inc. collectively own more than one in six local newspapers in the U.S., with the lion’s share owned by Gannett.

This consolidation trend of media voices and ownership isn’t just happening in newspapers, though.

Nexstar Media Group Inc. and Sinclair Broadcast Group Inc. each operate about 20% of the nation’s roughly 1,000 local television stations. Nexstar operates 199 stations in 116 U.S. markets, while Sinclair operates 185 television stations in 86 markets.

And none of these statistics include today’s largest purveyors of information, the so-called “technology companies” Meta Platforms Inc. (Facebook/Instagram), Twitter Inc. and Alphabet Inc. (Google/YouTube). Meta alone has nearly 4 billion users per month via Facebook and Instagram and brought in almost $86 billion in 2020 revenue.

In the U.S., these companies have remained virtually unfettered by regulation.

Section 230 of the 1996 Communications Decency Act grants these companies immunity for any third-party content published on their platforms, no matter how egregious.

Meanwhile, social media’s impact on civil discourse and democracy remains increasingly questionable.

Perhaps it’s by dumb luck, but at Virginia Business we’ve managed to remain fiscally and editorially healthy, both in print and online, despite — or perhaps because of — our lack of group ownership.

In any event, we are delighted to be here to serve your business information needs and grow with you in 2022.

Welcome to the new year and thank you for your support. 

Higher values

About 30 years ago, I was a volunteer for a local group of marketing professionals that was launching its Marketer of the Year awards. Publicity was needed. Working in marketing at the local paper, the task fell to me to pitch the event to the newsroom.

In those days, the news business was fairly balkanized; this was one of my first trips to meet an editor. My errand was completely unsuccessful, being curtly told that the newspaper wouldn’t cover the event because they didn’t write that kind of chicken-dinner news.

In those days, owning a newspaper press was almost like printing cash. My, how that’s changed.

A few years later, moving up to a corporate role at the newspaper’s publicly traded parent company, I organized data on its largest customers across all markets. It was revealing to me that the company’s corporate executives had no information on their biggest revenue relationships, nor did they really seem to care. Not surprisingly, that company no longer exists.

Customers matter. Values matter. Organizations generally invest in — and therefore get more of — the things they value. One of the best ways to know what a company values is simple: Instead of just listening to what executives say, look at their financial statements to see where they spend money. If they claim to believe in people but don’t back that up with market-leading compensation, do they really believe in people? If they say they believe in brands but don’t invest in advertising, do they believe in brands? If they claim to believe in customers but don’t know them, just what are their values?

Take a moment to think about values — not just profit, but higher values. Profit is definitely a matter of staying in the game. It may excite shareholders, but it rarely excites employees or customers. Their own bottom lines are more important to them than yours.

Just what are higher values? What about public health? What about democracy? What about truth and facts? What about transparency, diversity and inclusion? Higher values are more than just personal pocketbook issues.

When it comes to building enterprise net worth, higher values can make more difference than anything else. Profit is the price to stay in the game, but it is not a goal that drives growth or sustainability. Profit and higher values aren’t either/or propositions. You can have both. You can have it all. Arguably, you can’t have one without the other. Higher values will attract more customers and will help keep better customers.

Much like perfection, complexity is an enemy of progress. At Virginia Business, we try to keep things simple. Three things are important: First, regardless of your job, you must be interested in business as a topic. Secondly, the magazine keeps its focus on where we have an opportunity to be world class: business journalism. Third, we have one simple measure of success: revenue growth.

With the right people on board, we can do all three of these things, manage our expenses and put money back into things we care about. That’s a simple formula for success. We like keeping things simple.

Our higher values? Leadership, integrity, balance, respect and success. Those things are pretty much what Virginia Business strives to do every day. When that works, profit takes care of itself.

Every company is different. If certain values don’t resonate with your organization, which ones do? It‘s far better to be known by what you are for than it is to be defined by what you are against.

That’s what leadership is all about.

Political Kool-Aid

Depending on who’s in charge in Dee Cee, plans alternate on what is best for the U.S. economy. The choices are seemingly reduced to tax cuts versus government spending, but things are rarely as they seem. More accurately, these choices are two different sides of the same dollar — or trillions of dollars to be more exact.

Government dollars have one vexing thing in common: They are deficit dollars. Despite being politically savvy in a populist kind of way, tax cuts have never paid for themselves through economic growth, nor have they been offset by reduced spending. Similarly, higher spending is rarely accompanied by taxes to cover new costs.

Fiscal responsibility? For the most part, that’s just the sound of political lips flapping.

The backbone to balance budgets has always been lacking. The result is an increasing federal deficit. Still, it is a mistake to consider both tax cuts and increased spending as no more than two different flavors of the same political Kool-Aid.

The Tax Cuts and Jobs Act of 2017 (TCJA) passed under President Donald Trump was estimated by the Congressional Budget Office (CBO) to come in at a cost of roughly $2 trillion over 10 years. Republicans were all for it.

Similarly, the $1 trillion Infrastructure Investment and Jobs Act (IIJA) negotiated by President Joe Biden’s administration and passed by the Senate last month will likely be increased by an additional $2 trillion or more in “human infrastructure” spending. In fairness, not all of this is new spending. Some of it may be covered through higher taxes and some probably not. Democrats are all for it.

Fiscal responsibility? Maybe that starts with understanding that government plays a legitimate role; spending for the common good is what government should be doing. To think otherwise is to be absorbed by individual self-interest. U.S. spending for highways, bridges, airports, the power grid, broadband and even education and mental health has been well short of what’s needed for decades. It’s time for the U.S. to catch up.

The culture of American exceptionalism looks backward more than half a century to the boom following World War II. If the proposed new spending looks anything like the cost of that war, it will be well worth it and much needed, especially coming on the heels of a pandemic that took an even greater toll on American lives.

While both tax cuts and spending programs have fueled federal deficits, they are not equivalent in terms of economic outcomes. Tax cuts have led to significant inequities in income distribution. The wealthy have never been better off. It’s a telling anecdote that the richest men in the world are now spending their money on space flights, something that only the richest nations used to be able to afford.

Alternatively, government spending builds roads, bridges and other projects for the common good. The jobs created put money in the hands of working-class families who spend it on local goods and services. They pay taxes and support a growing economy, as compared with billionaires who pay little or no income taxes while spending more on personal investments and unparalleled luxuries like space flights.

When it comes to federal contracting, Virginia benefits more from federal spending than any other state in the nation. The commonwealth has the second-largest federal payroll of any state. On a per capita basis for total federal spending, including contracts, grants, payroll, retirement and nonretirement benefits, Virginia places first in the nation.

Tax cuts have been tilted toward the ultra-wealthy and have failed to trickle down money into either the common good or the hands of families needing it the most. Federal spending, on the other hand, is good for infrastructure and jobs, good for families and good for Virginia. It’s just good business.

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.