Robert  Moritz  of  PricewaterhouseCoopers  Documented@Davos  Transcript     Documented@Davos  2012     PETE  CASHMORE:  I'm  Pete  Cashmore,  the  founder  and

 CEO  at  Mashable.  And   welcome  back  to  Documenting  Davos  with  Scribd  and  Mashable.  #DavosDocs.  And   so  we're  talking  to  technology  leaders  and  business  leaders  at  Davos,  the  World   Economic  Forum,  trying  to  figure  out  how  technology  is  changing  the  economy,   changing  the  world.  So  I'm  very,  very  pleased  to  be  here  with  Bob  Moritz.  You  are   the  chairman  and  senior  partner  at  PwC.  So  it's  a  privilege  to  speak  with  you  today.       ROBERT  MORITZ:  Great.  Happy  to  be  here.       PETE  CASHMORE:  I  think  we  could  kick  off  and  speak  about  this  CEO  survey.  It's   your  15th  annual  CEO  survey,  trying  to  get  the  temperature  on  what  CEOs  are   thinking.  What  are  they  thinking  about  technology?       ROBERT  MORITZ:  Well,  when  you  look  at  the  CEO  survey  we've  done  in  the  last  15   years,  we  interviewed  about  1,200  CEOs  around  the  world,  60  different  countries.       Most  of  the  CEOs  are  actually  thinking  about  the  future  in  terms  of  how  to  actually   enhance  their  own  business  proposition.  How  do  they  do  that?  They've  got  to  reach   out  to  their  customer  base.  And  it's  through  innovation  locally.  It's  not  going  to  be   through  M&A  activity.       One  of  the  survey  findings  was,  in  fact,  M&A  activity  was  going  to  go  down  this  year   because  their  confidence  to  do  that  isn't  there.  As  a  result,  they  are  going  to  actually   focus  on  their  local  customer  base,  leverage  technology  to  do  that.       How  do  you  action  leverage  technology  to  engage  your  consumer  base?  How  do  you   engage  your  workforce?  And  how  do  you  think  about  innovation,  so  you  can  move   things  around  the  world  as  quickly  as  possible?  So  that's  one  piece.       The  second  piece  is  they've  got  to  be  cost  efficient.  And  the  only  way  they  do  that  is   invest.  Have  some  R&D  around  technology,  technology  enablement,  to  actually  pass   information  across  the  organization  to  better  manage,  make  decisions  day-­‐to-­‐day.   Those  two  findings  are  key  as  successful  CEOs  think  about  the  future  and   [INAUDIBLE]  capture  the  opportunity.       PETE  CASHMORE:  How  optimistic  are  they  about  the  future?       ROBERT  MORITZ:  It's  mixed.  It  depends  very  much  on  where  you  sit  and  what   country  you  may  be  in.  And  there's  a  dichotomy.  We  talk  about  decoupling  around   emerging  markets  and  developed  markets.  I  would  say  that's  nonsense.  The   economy  actually  has  come  together  as  one.  The  decoupling  is  around  people's  

confidence  for  performance  in  a  company  versus  their  confidence  in  the  overall   economy.  So  what  does  that  mean?       48%  of  the  CEOs  today  believe  the  economy  is  going  to  decrease  over  the  next  year,   compared  to  15%  thinks  it's  going  to  increase.  However,  the  number  of  CEOs  that   actually  believe  they  will  have  confidence,  relative  confidence  that  they  can  grow  in   the  next  12  months  is  a  high  percentage.  It's  more  like  85%  that  either  have  strong   or  neutral  confidence.       PETE  CASHMORE:  Is  it  possible  for  those  two  things  to  be  true?       ROBERT  MORITZ:  I  think  it  is.  But  you've  got  one  leading  the  other.  You've  got  a   lagging  indicator  here.  And  the  question  becomes,  how  do  you  actually  then  bring   together,  I'll  call  business  priorities,  versus  more  macro  policy  discussions?  And  at   some  point  in  time,  these  two  things  catch  up.  It  very  much  depends  which  country   you're  in,  which  sector.  The  technology  sector  is  a  great  example.       They  had  the  highest  confidence  overall  in  terms  of  what  they  think  the  future  is.  No   surprise  to  this  audience.       When  you  think  about  technology  organizations  around  the  world,  they  are  thinking   more  so  around,  am  I  going  to  go  hire  more  people?  The  answer  from  the  survey   was  absolutely  yes.       Are  we  going  to  actually  have  bigger  impact  in  the  social  community?  The  answer   was  yes.       And  now  the  question  is,  how  do  you  get  the  leadership  team's  attention  to  work   with  policy  makers  to  actually  bring  that  gap  together?       PETE  CASHMORE:  What's  your  level  of  optimism  about  technology's  role  in  turning   around  the  economy  and  creating  jobs?  I  mean,  I  was  reading  a  report  in  the  Times   last  week  about  how  Apple  is  obviously  making  of  all  its  products  in  China.  Is   technology  going  to  create  more  jobs,  or  is  it  going  to  great  jobs  elsewhere?       ROBERT  MORITZ:  Yeah,  I  think  it's  going  to  help  create  jobs.  And  maybe  better  said,   it  will  help  in  a  number  of  different  ways.  One  of  them  is  actually  matching  or   developing  skill  sets.       When  I  think  about  technology-­‐-­‐  and  I'll  use  us  as  an  example  right  now-­‐-­‐  the   amount  of  training  that  we  do  virtually,  leveraging  technology,  social  media,  ideas,   et  cetera,  has  just  gone  exponential  for  us.  So  what  we're  trying  to  do  is  get  people   the  skill  sets,  just  in  time  skill  sets  to  do  just  in  time  training,  and  leveraging   technology  to  deliver  that.  So  this  way,  people  are  better  equipped  to  do  their  job.   And  that  allows  them  to  be  more  relevant  day  in  to  day  out.  So  they  do  the  job   they're  assigned.  But  more  importantly,  give  them  an  opportunity  to  do  another  job  

that's  totally  different.  And  why  is  that  important?  Because  technology  will  give   them  more  insight  on  what  life  may  be  in  the  US.  And  if  they  are  thinking  about   going  to  India  or  China,  they'll  have  a  better  perspective  of  what's  that  all  about.       So  to  me,  technology  is  a  huge  enabler  for  everything  we  do.  We've  got  major   stakeholders,  our  employees,  our  consumer,  our  clients,  our  investors,  the  social   environment  in  terms  of  politicians  and  regulators.  I've  got  to  leverage  technology   to  better  connect  with  them,  talk  to  them,  and  listen  to  them  to  say,  how  do  I  become   more  relevant?       PETE  CASHMORE:  Well,  let's  talk  a  little  bit  more  specifically,  I  guess,  about  social   media,  as  you  were  hinting.  What  do  you  see  as  the  role  of  social  media  in   corporations,  and  at  PwC  in  particular?       ROBERT  MORITZ:  At  PwC,  it's  a  huge  enablement  to  help  with  the  conversation  and   the  engagement  of  our  people.  I  came  into  this  role  about  2  and  1/2  years  ago.  And  I   had  a  theory  that  was,  I  need  to  turn  the  place  upside  down  in  terms  of,  how  are  we   making  decisions?  And  in  order  to  do  that,  I  had  to  make  sure  I  was  listening   carefully  to  what  our  employee  base  was  saying.       We've  got  35,000  people  in  the  US.  We've  got  about  165,000  people  around  the   world.  And  what  we  wanted  to  do  is,  how  do  we  engage  them  in  our  strategy?  First,   explain  it  to  them.  And  then  get  their  reaction  to  that.  Should  I  tweak  it?  Should  I   change  it?  And  then,  ultimately,  if  I've  got  a  couple  of  key  points  to  be  made  or   executed  on,  how  do  I  engage  them?  Because  if  I  can  get  all  35,000  people  engaged,   we'll  be  better,  faster  than  my  competition  out  there.       PETE  CASHMORE:  Is  that  the  new  leadership?  Because  that's  almost  a  crowd  source   leadership  where  you're  saying,  let's  listen  to  what  all  the  employees  are  saying  and   then  almost  synthesize.  Is  that  the  new  leadership  style  to  say,  rather  than  it's   coming  from  the  top  down,  we're  going  to  say  exactly  what's  right?  Is  that   something  you're  seeing?       ROBERT  MORITZ:  I  think  it  is.  And  I  would  say  that  leadership  has  a  responsibility   to  listen  carefully  to  all  of  the  stakeholders  that  make  decisions.  Then  leadership  has   to  make  the  decisions.  Not  necessarily  that  the  leader  has  to  do  the  consensus  view.   Because  some  of  these  decisions  are  hard.  But  I  think  you've  got  to  be  able  to  do  that   first  piece  before  you  ever  get  to  the  second  piece.  If  you  don't  do  that,  you're  never   going  to  have  a  chance  to  actually  accomplish  what  you  want  to  accomplish.  So   engaging  in  terms  of  not  only  what  you  want  to  do,  but  why  you  want  to  do  it  is   really  important.  And  I  think  the  crowd  sourcing,  I  think  the  social  media  aspects   helps  enable  that.       I  talk  to  our  people  quite  regularly.  I  respond  to  every  email  I  get.  We  have  webcasts   that  we  do  virtually  to  the  entire  firms,  three,  four  times  a  year  where  my  

leadership's  right  in  front  of  everybody.  And  I  don't  actually  just  talk.  I  actually  have   our  second  year  people  interview  me.  No  holds  barred.  Ask  any  question  you  want.       PETE  CASHMORE:  Are  you  out  there  tweeting  and  facebooking?       ROBERT  MORITZ:  I'm  actually  doing  that  inside  the  firm,  not  outside  the  firm.  But  it   is  something  we're  actually  thinking  about  outside  the  firm.  I've  got  people  on  my   leadership  team  that  are  doing  that  outside  the  firm  right  now  as  well.       PETE  CASHMORE:  Great.  What  about  any  kind  of  risk  or  perceived  risk  of  having-­‐-­‐  if   your  employees  are  out  in  the  social  media.  Is  there  some  kind  of  limit  to  the   freedoms  that  people  can  have?  Because  we  see  in  the  corporate  world  sometimes   there's  certain  information  you  don't  want  out  there.  Is  there  any  kind  of  policy   around  that  that  you  guys  have?       ROBERT  MORITZ:  Yeah,  our  policy  comes  back  to  some  of  our  value  chain  in  terms   of  what  we  do.  So  we  do  audit  services,  tax  services,  consulting  services.  The  one   major  policy  is  we  don't  talk  about  client-­‐specific  information.  We've  got  to  protect   that.  There's  a  greater  privacy  that's  necessarily  that  we  have  to  adhere  to.       Second  is  we  want  to  make  sure  that  there's  not  personal  information.  So  again,   respect  the  privacy  issues.  But  I  work  under  the  assumption  that  everything  I  send   out  or  communicate  is  going  to  go  virtual  anyway.  So  let's  just  operate  that.  Rather   than  fight  it,  accept  it.  And  in  fact,  I'm  happy  to  have  my  competition  see  what  my   strategy  is.  That's  the  reason  we  sent  it  out.  Everybody  was  worried  about,  OK,   what's  the  competition  going  to  do?  It's  not  around  whose  strategy  is  best.  It's  who   can  execute  best.  The  only  way  I  execute  best  is  to  have  all  of  the  people  engaged,   which  comes  back  to  this  transparency  point.       So  my  mindset  is,  get  the  word  out  there.  This  way  you're  better  understood,  not   only  what  you're  doing  and  why  you're  doing  it.       PETE  CASHMORE:  Well,  everything  you  post  online  is  going  to  get  out  there,   eventually.  That's  a  good  motto  to  live  by.       ROBERT  MORITZ:  Absolutely.       PETE  CASHMORE:  It  was  great  talking  to  you.  It's  time  to  wrap.  Thanks  so  much,   Bob  Moritz  at  PwC.  And  thanks  everyone  for  joining  us.  We're  at   Documented@Davos.  We've  got  more  interviews  coming  up.  Hashtag  is  #DavosDocs   on  Twitter.  

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