‘We’re focused on transparency and remaining calm’: Accenture CEO

Yahoo Finance’s Andy Serwer joins the On The Move panel to discuss his conversation with Accenture CEO Julie Sweet and what the company is doing to help support Americans amid the COVID-19 pandemic

Video Transcript

JULIE HYMAN: Well, our Editor in Chief Andy Serwer had this chance to speak to the CEO of Accenture, one of the big consulting firms, Julia Sweet, and she talked about what it's been like to manage and consult in this sort of work-from-home environment.

ANDY SERWER: So how do you plan for what's ahead in this type of environment? So many unknowns in terms of your employees and helping customers.

JULIE SWEET: It's a great point, Andy. And as many CEOs have talked about, there really is no playbook for right now in terms of just absolutely knowing.

So I think there's a couple really important things that we're certainly focused on. The first is transparency. Actually, it's sometimes comforting to just acknowledge both to your employees and clients that we don't know what's going on but that we're focused on making sure that we're navigating as it comes.

The second is continuing to remain calm. You know, we're relying on protocols that we've had in place not for a global pandemic but for other crisis situations. We're executing on those with discipline. We're sharing that knowledge with our clients.

And then we're really looking ahead to say what is really important is once we have people safe is making sure, as a global economy, that we're providing the services and that we're part of that. And so we've been answering calls from hospitals to help. We're making sure that our clients can be up and running, and it's really taking it day by day but looking forward with an absolute belief that this will end.

ANDY SERWER: Right, but do you have any idea how long it will last? And so how are you planning for how many weeks or months do you think it is, or how many months or weeks do you think it might be?

JULIE SWEET: Andy, that's anybody's guess right now, and so what we're trying to do is put in the infrastructure and the connections for our people and with our clients as if it may last for a very long time. And what that really means is that it's as important to focus on the services but also people.

And so we're not using the term social distancing at Accenture. We talk about physical distancing because what we've seen is that people are connecting at home and with their clients and with each other, and that is a critical element for us being able to stay the course. And so we are focused as much on the social connections to enable us to go as long as we need because it's that emotional ties.

And remember, it's with each other as colleagues, but we have long-standing relationships with our clients. And we're doing that with people not because of the services but to help each other. And I think what makes this tragedy so unprecedented is it really does affect every one of us, and our mindset is how can we help each other?

JULIE HYMAN: So that was Julia Sweet, the CEO of Accenture. Andy Serwer is with us now, and, Andy, it really is interesting to hear her speak and to hear about some of the actions that other companies are taking where, yes, obviously the financials are a factor, but to some degree, as much as you are able to, you kind of have to put it aside and sort of think in more human terms, I guess.

ANDY SERWER: Yeah, that's right, Julie. And, you know, listening to Julie Sweet talk about that situation that all of us are in right now-- I mean, this really is a time for leadership. And I think that this calls for, you know, a kind of action and activity that CEOs might not have thought they were going to have to take.

I mean, Accenture has half a million employees all over the globe. And so she talked about contingency plans, and maybe that was for a hurricane or for a network outage, but you don't anticipate something like this. So, you know, all hands on deck. That's point number one.

And then the other point I guess I would make is when she's talking about doing work for hospitals and such-- and obviously some of that is going to be pro bono. Well, there's a lot of call out there right now and a lot of calls for doing pro bono work, for just helping. Our parent company Verizon, you know, stepping up-- Walmart, Starbucks, et cetera. And so you have to balance the business with doing public works and doing the right thing. You know, and at some point you've got to look at your income statement and your balance sheet, but you have to balance that out with, you know, doing the right thing with, you know, a for-profit business. So there's a lot of considerations.

Then just keeping half a million people on the same page, I can't even imagine that.

JULIE HYMAN: Yeah, I can't either. I mean, at the same time, you know, you have shareholders still to answer to, right? And you still have a balance sheet, and different companies have different balance sheets, and so they're going to have different flexibility when it comes to serving their employees. I mean, some companies are just particularly-- yes, Accenture's in the consulting business, but when you look at some of the other industries that are most affected, they just cannot keep those people on the payroll.

ANDY SERWER: Yeah, and you were just talking to Bob Crandall. I mean, you talk about a capital-intensive business like airlines with those incredibly high fixed costs. And then you look at something like Accenture, and you're right, Julie. I mean, this is a company, you know, that has just much less overhead. Their overhead is people, right? They don't have any property, plant, or equipment, for all intents and purposes. So you're right. They're in a much better position.

But some companies are going to be spending this time period looking to restructure, reorganize, and keep away from Chapter 11, or maybe in some sad cases, filing for Chapter 11. Others, you know, are looking to strategize and find ways to actually be in even better shape after this is over.

And we've talked about the FAANGs. You know, a lot of them are actually going to be, you know, garnering gains in certain businesses in certain ways. So, you know, maybe a company like Accenture is somewhat in the middle.

And I think that, you know, this is a time when the weak companies are going to be culled out, quite frankly, and all manner of businesses. The strong will get stronger, possibly, but everyone's got to find a way to survive and then, you know, one would hope, thrive when this thing is all said and done.

JULIE HYMAN: Yes indeed. All right, Andy Serwer, thank you so much for joining us and for bringing us those comments from Julia Sweet of Accenture.