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Lars Aasulv Løddesøl: Building Storebrand Into a Sustainable Pillar in Society

As a key player in the Nordic market for long-term savings and insurance, Storebrand has consistently pushed the narrative of sustainability for financial organizations. With leadership that is acutely aware of environmental, social, and economic aspects in decision-making, Storebrand aims to achieve business growth while contributing to saving the planet.

We sat down with the Group CFO, Lars Aa. Løddesøl talks about Storebrand’s journey towards sustainability, the challenges they faced, the roles of CFOs, and their commitment to companies.

 

Driving Towards The Path of Sustainability

 

Storebrand’s journey towards sustainable investment began more than 25 years ago with some leading investment pioneers who wanted to invest in a new field that should end up being very interesting for their customers and the company.

More importantly, Løddesøl iterated the fact that investing in sustainability was “the right thing to do” for any organization, more so for Storebrand as a life- and pensions company where their investments go beyond the next quarter or the next year, but rather 40 to 50 years ahead.

“We want to invest in the future, both for a better world and for a better return,” notes Løddesøl. This vision for sustainability has attracted many of its current employees who believe and share in the same purpose for creating a better future.

As a purpose-driven organization, Storebrand prominently communicates its driving force to “help create a future worth looking forward to”. Løddesøl points out that the company, at its core, pushes the vision of “delivering financial security and freedom by being a courageous pioneer and by leading the way in sustainable investments”.

Løddesøl believes that this helps motivate their employees and the organization as a whole to be leaders in sustainable investments and to become founding members of sustainable-focused groups such as Principles For Responsible Investment and Net-Zero Asset Owner Alliance.

 

Taking a Leap in Sustainability and Facing The Challenges

 

With strong management support since 1995, there was a senior commitment in Storebrand to develop a position as a leading company in sustainable investments on a global level.

As such, the leap towards sustainability for Storebrand was not an arduous jump as the culture was ingrained early on within the company’s DNA.

Add to the fact that a number of board members have strong sustainability competencies requiring Storebrand to be operating in an environmentally conscious manner, the motivation was there on both sides to be sustainable on all levels.

Transitioning into a green company, however, does come with its challenges. One of the early challenges that Løddesøl recalls is the criticism and skepticism on whether sustainable investments would give competitive financial returns. As time has passed and data has improved, there is now little doubt that sustainable investments give better risk-adjusted returns.

A more recent challenge for Storebrand is to differentiate itself from “greenwashing” in the competitive market. To overcome this, Løddesøl points out the importance of using and capturing data on sustainability to be able to objectively and transparently report on objectives and progress in sustainable investments.

 

Adding “Value” To The Role of CFO In Sustainability

 

The role of the CFO has always been to ensure stable financial growth in a company, but for Løddesøl, the term chief financial officer doesn’t accurately reflect the roles he takes in a sustainable-focused business.

Løddesøl believes a more accurate term for CVO (Chief Value Officer) would better represent the role as “values are broader than the short-term financials but is also part of the financials.”

In terms of defining the focus of CVOs, Løddesøl explains that hitting the triple bottom line of profit (financials), people (employees and customers), and the planet (environment and climate) should always be the main factors in making business decisions.

Nevertheless, the role of CFOs as guardians and guarantors of a company’s financials still remains important for Løddesøl.

“As a CFO, I have an important role of having dialogues with regulators, financial markets, investors, and many other stakeholders, to communicate why sustainability is good for shareholders, customers, society at large, and the world.”

 

Competitive Edge in Sustainability and Zero-Sum Game

 

In a competitive market such as the financial industry, staying ahead of the competition requires great planning and a clear vision.

For Løddesøl and Storebrand as an organization, maintaining the competitive edge with sustainability comes from “purpose-driven employees, excess returns, and as part of our contract with society, our mission as a company in society.”

“Companies can no longer survive in the long term just by bringing in the extra dollars the next quarter,” notes Løddesøl. “It is now a requirement to take a responsible role in the market and contribute to society, which in turn will bring financial values.”

While Løddesøl believes that companies should be adopting sustainable efforts to ensure long-term financial returns, he also points out how sustainability is not a zero-sum game.

“In order to save the world from the climate crisis, we need to do the right thing ourselves and also motivate and engage with others to do the right thing.”

Being a relatively small Norwegian company in a global context, Løddesøl is aware that Storebrand can’t save the world alone. However, he hopes that Storebrand’s contributions can push other companies to commit to sustainable efforts and contribute to making the necessary action to make the green shift before it is too late.

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Clubhouse Concerns: Privacy And Security Issues

As entrepreneurs, influencers, and c-level executives (CXO) flock to Clubhouse in a bid to harness the app, the security and privacy shortcomings are becoming evident, forcing businesses to re-evaluate their approach to the social media platform.

The app’s fast rise to fame also came with a price as security issues within the platform came to light, posing the question of whether users’ data are fully protected.

In this article, we take a quick look at the recent data breach that Clubhouse experienced and what concerns it raises.

 

Data Spillage and Security Leaks

 

Stanford University Internet Observatory first raised concerns about a Shanghai-based start-up that supplies Clubhouse’s back-end infrastructure and that they would have access to “users raw audio, potentially providing access to the Chinese government.”

Another report by McAfee’s Advanced Threat Research team also highlighted similar security issues in both hardware and software due to Clubhouse’s reliance on the Shanghai tech company.

Both reports seem to indicate that the platform was working on an infrastructure that was poised to be hacked or breached.

In February, Clubhouse confirmed that chats were breached from the invite-only app. The company claimed that an unidentified user was able to stream Clubhouse audio feeds from “multiple rooms” and streamed it on their own third-party website.

A spokesperson for the company has stated that the user was permanently banned and that new safeguards were being installed, which pushes the app a step towards securing and protecting user data even more.

 
Next-level Insights: Gain exclusives insights on industry trends from experts at Management Events’ Clubhouse (@Managementev) sessions.
 

Differing Impacts of security issues

 

Responses from cybersecurity experts on whether Clubhouse is safe for users varied widely with some claiming it should be a serious concern for anyone who uses the app for sensitive conversations.

On the other side of the coin, experts highlighted that the security issues raised by the reports were hypothetical and that the risks were mainly concerned with users in China, where the app is already banned.

Nevertheless, certain parts of the world are taking a serious look at Clubhouse’s shortcomings when it comes to data protection and consumer law with countries such as Germany taking court action against the app due to its failure to meet GDPR requirements.

Whether or not Clubhouse security measures are compliant with data and privacy acts, it’s important for businesses and CXOs to be aware of the potential security risks involved with the platform.

 

Prioritizing Cybersecurity Investments 

 

Despite Clubhouse’s meteoric rise to unicorn status with a reported valuation of $1 billion, for them to remain as a viable platform for businesses and industry leaders, the company must invest in and strengthen its cybersecurity measures immediately.

Given the vast increase in digital communications due to work-from-home initiatives and our own report on cybersecurity trends among CXOs and businesses, the onus lies on Clubhouse to ensure that their users’ data are protected.

While the recent security issues do not pose any serious threats or risks, for now, they still serve as a reminder that users need to be vigilant when using the app and that Clubhouse needs to improve its security measures sooner than later.

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Can CxOs Harness The Power of Clubhouse?

Clubhouse, a social media platform, is currently making waves around the world as the latest silicon valley success with everyone from Mark Zuckerberg to Oprah making their appearance on the app.

For c-level executives (CXOs), Clubhouse can be a powerful tool for business growth when used effectively. There’s potential for it to be a platform to learn about emerging technologies, fringe strategies, solutions, and even learn new skills.

In this article, we’ll go through some tips to effectively use the platform and ensure that you’re not missing out on the hottest social media app.

 

Clubhouse: A Quick Recap

 

If you’re well-versed in Clubhouse, then go ahead and skip this part. If you do not know anything about Clubhouse, here are some important points to be aware of:

  • It’s a voice-only social platform that lets users create rooms and start conversations.
  • Users can join rooms and participate in conversations.
  • Each room will have moderators to oversee conversations.
  • It’s an invite-only app, which means you need to be invited to join.
  • It’s only available in iOS but an android version is being developed.
 
Join US NOW: Be part of Management Events’ Clubhouse (@Managementev) and gain exclusive access to deep-dives from industry experts and key decision-makers.
 

How To Harness Clubhouse

 

Now that you have a basic understanding of Clubhouse, how or why should you use Clubhouse?

While it is still in its infancy, Clubhouse does offer tangible short-term and long-term business gains that other social media platforms do not. As a business or organization, it’d be wise to take advantage of what the app has to offer, especially now with people such as Elon Musk being part of it.

 

Expanding Your Business Network

 

At face value, Clubhouse might not guarantee success for your business goals, however, it can be a valuable tool to expand your network and open up opportunities for growth and potential partnerships.

Once you’ve secured an invitation, experiment with the platform and follow different clubs, join rooms and connect with people that could be cultivated into networking opportunities for your organization or a source for valuable insights and inspiration.

The app has seen high-profile figures joining and engaging consistently, making it a vibrant platform for decision-makers to network with peers, work with visionaries, and maybe even be inspired by like-minded leaders.

 

A Place For Knowledge Sharing

 

At its core, Clubhouse is about sharing. Be it sharing information, ideas, or insider knowledge, the app provides a great place for insights from industry peers that otherwise might not be easily accessible.

Of course, it doesn’t compare to tailored industry events or virtual networking sessions for businesses, it is still a hotbed for CXOs to share their findings, engage in discussion on industry trends, and gain unique perspectives from other c-levels.

Whether it is about marketing, AI, finance, or even business transformations, there are a wide variety of topics and rooms that you can explore and learn from to help you solve or strengthen your business.

 
Next-level Insights: Gain exclusives insights on industry trends from experts at Management Events’ Clubhouse (@Managementev) sessions.
 

Huge Pool of Talent and Recruitment

 

As you visit rooms and join in discussions relevant to your industry, you’ll come across people with the skills and experience that your business might need. Given the exponential growth of Clubhouse’s userbase, this makes it a valuable platform for talent resources and recruitment.

There have been many cases of recruiters utilizing the app by finding talents through networking in the chat rooms or just setting an impromptu interview on the spot. During Elon Musk’s infamous interview on Clubhouse, he used the opportunity to promote NeuraLink and went on to encourage engineers to apply to his company, highlighting the instantaneous interaction that you can have on the app.

Finding the right people can be as easy as joining a room and mentioning that you are looking for people to help with your business. Within minutes, you’ll be receiving messages from talents and the services that they offer.

 

What The Future Holds For Clubhouse

 

While Clubhouse is definitely the buzzword for many right now, its future as a pillar of business networking is still in question. There are tons of potential within the app, but also numerous issues that still need resolving.

Some of those issues include a better method to filter audiences, a better system to moderate, and most importantly, the security concerns over data and audio leaks.

Whether or not Clubhouse will become a super-aggregator remains to be seen but the potential is there. With the developers looking to improve the platform by adding creator tools and quality-of-life improvements, the app can be a powerful tool in the hands of C-level executives in the future.

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Understanding The Tech Challenges of Retail Giants

With more and more people embracing digital and smart shopping experiences, the retail market is scrambling to adopt new retail technology to remain viable and sustain growth in a rapidly changing landscape.

In this article, we’ll highlight some of the major challenges businesses are facing and the solutions they are looking for. For a more in-depth look at the trends of the retail industry, head over to our Retail Investment 2021 report.

 

Challenge 1: Evolving and Enhancing CX

 

Customer experience is expected to shift even more in 2021 and as consumers become more conscious of their spending, retailers will need to optimize every step of the customer journey to maintain loyalty, and spark growth.

Improving customer journey optimization will involve significant investments in retail technology trends, a key touchpoint of which will be the tech that improves process efficiency such as AI, automation, and customer touchpoints (as well as mapping them out).

A quick view at the core focuses among retail leaders shows that many organizations are prioritizing smart solutions and digital competency to handle customer needs and ensure quality CX.

 
 

What Are They Looking For

 

Improving the experience for customers by delivering fast and accurate responses through CX software which integrates marketing automation, customer service, CRM, CPQ, sales force automation (SFA) solutions, and customer data platform (CDP)

 

Challenge 2: Deciphering The Data

 

Achieving effective customer journey optimization will require targeted investments in retail technology and a high priority tech among retail leaders is data and analytics.

With the influx of data available due to rapid digital transformation, organizations are scrambling to adopt big data and real-time data analytics to better refine their business actions according to customers’ needs and profiles.

As the global big data market is forecasted to be worth $103 billion by 2027, data analytics is no longer just a buzzword, but an important retail technology investment needed for day-to-day efficiency in organizations and individuals.

Given the current talent gap, however, businesses will still look to third-party solutions in terms of building an infrastructure that allows them to utilize data analytics effectively.

 

What Are They Looking For

 

Platforms that implement easy-to-use analytics, data mining, and automated forecasting. Department-specific data such as marketing, sales, and customer analytics will also be a key factor for many businesses.

 

Challenge 3: Digitalizing Stores and Scaling e-Commerce

 

A shift towards improved digital storefront experiences is in line with customer market behavior as globally, 49% of the population is shopping online more now compared to pre-COVID times.

Nevertheless, customers still prefer shopping on-location, with a recent survey done by Shekel showing that 87% of customers prefer to shop in stores, but with touchless or seamless self-checkouts.

As such, improving the infrastructure for businesses’ e-commerce platforms and brick-and-mortar stores has become a race. Those who are able to achieve seamless online shopping experiences and frictionless smart payments will get the lion’s share of the market.

 

What Are They Looking For

 

The ability to transition from an analog business model to a digital, omnichannel model through cloud solutions or optimizing current digital channels such as mobile apps, IoT, and smart shopping.

 

Challenge 4: Improving Digital Security

 

Machine learning and cloud computing continue to be high priorities in tech adoption for retail leaders. Cybersecurity, however, has seen a significant rise due to demands for safer and more secure digital/smart shopping.

The confusion caused by the coronavirus and the massive shift towards digital/remote working has led to cyberattacks becoming frequent with large data breaches increased by 273% in the first quarter of 2020.

 
 

Retailers will face an uphill battle in the “new normal” of post-COVID to assimilate all the necessary digital security strategies, be it upgrading vulnerable software and hardware components or strengthening customer data protection, to ensure customer confidence and loyalty.

However, with the global market for cyber security software expected to grow to $230 billion in 2021, they can expect exponential growth in the practices and solutions for digital security.

 

What Are They Looking For

 

A simplified platform that allows them to reduce security risk through robust privileged access management (PAM) and optimal solutions for customer data storage and protection that comply with GDPR.

 

Overcoming The Challenges

 

At the start of 2021, it’s clear that retail giants are making big investments when it comes to innovative retail technologies. Certain technologies, such as digital transformations, continue to be a major priority for retailers.

The big changes, however, come from renewed interest in improving customer journeys through data analytics and scaling up digital channels via e-commerce or smart shopping experiences.

For any organization, it’s essential to identify which areas of retail technology they are trailing behind, then network with the right solution provider, invest in skilled talents and have the necessary tools to maintain growth in a soon-to-be revitalized industry.

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How to Fully Utilize Data for Improved Customer Experience

Every great business recognizes the importance of customer experience (CX) – a critical strategy in engaging and retaining customers to your brand.

With the e-commerce landscape booming amidst impacts from COVID-19, it’s apparent that CX has transcended through both digital and physical sales channels, and is a key competitive differentiator for brands.

But with the extensive research and analyses on achieving great customer experience, why is CX still an ongoing concern for businesses?

 

THE CX CHALLENGE

 

However, as straightforward as it may sound, it’s becoming harder for companies to achieve the customer experience that consumers expect due to:

 
 

Customer touchpoints are especially significant as these are the areas in the customer journey where the consumer interacts with your brand, and have a direct impact on their overall experience.

 
 

According to customer service provider, Help Scout, “a poor experience at one touchpoint can easily degrade the customer’s perception of multiple positive historical experiences at other touchpoints.” And Qiigo claims that it can take between 13 to 20 touchpoints, or touches, to convert a prospect into a customer. 

Fortunately, as businesses become more digitized, it’s much easier to identify customer behavior patterns and to improve touchpoints in their journey.

However, the amount of raw data available combined with the challenge of analyzing and acting on customer insights are factors as to why organizations are still lacking in quality customer experience.

 

PREDICTIVE ANALYTICS IN CX

 

Unlike prior generations, the consumers of today have higher expectations and a clear idea of what they want and how they want companies to deliver it to them.

But 71% of consumers are still receiving “An offer that clearly shows they do not know who I am” while 41% are seeing “Mistakes made about basic information about me.”

Such errors are taken as signs that the brands are ‘intentionally’ not placing importance on their customers when actually, it shows that organizations are not using their customer data to the fullest potential.

 

Pre-Purchase, Purchase and Post-Purchase

 

By leveraging data and artificial intelligence (AI), companies can improve all stages of their CX journey.

One example given by Capgemini showed how Amazon used AI and predictive analytics, before the browsing prospects even made a purchase, to:

 
 

Qymatix Solutions also emphasized the cruciality of using predictive analytics in the pre-purchase and purchase stages through predictive lead scoring while utilizing churn and cross–selling predictions in the post-purchase phase.

Micro-Segmentation and Personalization

 

In the past, segmentation was sufficient to deliver an ‘adequately personalized customer experience’, but today, brands need to micro-segment their potential consumers for hyper-personalization.

Using machine learning, predictive modeling and data mining, predictive analytics help to:

 
 

In a use case by Wavicle Data Solutions, a restaurant chain’s consumers were segmented into multiple groups and clusters based on gathered data. Following that, “predictive analytics and machine learning created both macro and micro-segments of customers, with matching customized offers for each audience”.

At the end of their process, the restaurant chain was able to develop personalization and loyalty programs that engage customers with more customized offers and meaningful messages, increase customer retention, and grow revenue.

 

Resource Efficiency For Higher CX

 

Aside from giving consumers exactly what they need, predictive analytics also help in the efficient allocation of your resources. 

For instance, a coffee shop saved 38% of their marketing costs by predicting which of their customers were more likely to churn and sending them targeted offers to convert them into loyal customers.

Other examples, given by MarTech Series, show how predictive analytics can reduce resource wastage and streamline costs by planning staffing levels in advance for smoother and more timely customer experience, and upgrade delivery timelines by conveying transport route adjustments for on-time deliveries.

These efficiency strategies not only lead to savings for the company, but also ultimately improve the interactions and experience of the consumers.

But predictive personalization cannot be made without quality data, and data strategy is where some organizations face roadblocks.

 

MAPPING ORGANIZATIONAL DATA JOURNEY

 

While businesses often map out their customer journey, companies should also map out their internal data journey, which can involve multiple functions and C-suites, to determine weak areas in the sharing of their CX data.

For instance, are there information silos between the business departments? Which function has decision authority over data?

In a CX team proposed by TechTarget, the Chief Customer Officer (CCO) is responsible for the customer experience metrics and research while the Chief Experience Officer (CXO) “creates customer journey maps that use data to predict future consumer actions”.

On the other hand, Dion Hinchcliffe, Vice President and Principal Analyst at Constellation Research and Brian Hopkins, Vice President and Principal Analyst at Forrester Research, both talked about data-sharing and partnerships between different C-suites.

Hinchcliffe mentioned that the Chief Information Officer (CIO) and Chief Marketing Officer (CMO) each have a vital part to play in delivering quality customer experience.

Meanwhile, Hopkins believes that the Chief Data Officer (CDO) and CIO can form a powerful partnership to drive data strategy, where IT supports the CDO to maximize the impact of customer data.

To quote Hopkins, “The bottom line is that control over data is neither a pure tech decision nor a pure data decision.”

With more specialized C-level roles and functions emerging, organizations need to tear down data silos and establish active communication between all business functions for a joint effort towards better customer experience.