Top Leadership Trends in 2023: Avoiding Price Wars, Leading With Purpose, and Attracting the Best Talent
Happy New Year! 2022 was an incredible year, and I will start by thanking all our customers for their partnership as we completed our transformation to a platform company. It has been a long journey, but, as I stated in our investor letter, now that we have achieved that milestone we can move faster to contribute to your success.
Looking into 2023, the Calix team sees three key trends shaping our industry:
Speed-based price wars in competitive markets will fail at a faster pace for legacy providers, while purpose-driven broadband providers thrive
If you joined us at ConneXions in October, thank you. The event was our biggest and best ConneXions yet. Everyone who was there walked away with one message: In a market with more than one (fast) broadband provider, speed as a go-to-market strategy will not succeed. I shared in my keynote that, in a sampling of 100 fiber-based broadband providers that offered a range of speed tiers, only 17 percent of subscribers went for a 1-gig service. Why? Because, while technologists love speed, the average consumer does not care.Since October, several legacy providers have proven the case. Frontier released a 5-gig service for $149 while discounting their 2-gig service 25 percent to $109.99, Google discounted 5-gig to $125 and, if you ask the provider who has launched an 8-gig service how many customers they have, the answer is “not many.”
Consumers do not understand speed, and legacy providers are teaching them that they only need to think about one thing: price. All bad.
What do consumers understand? They understand experience, and they talk about it to their friends all the time. They understand when you have a simple operational model, deliver reliable services, and are appealing to their needs with new services that are fully managed and hassle free. That is why we have invested over $1 billion in our platforms: to deliver simple and exciting so you can grow.
Over the past three months, differentiation has been the number one topic I have discussed with fellow CEOs. In this Beacon, Darren Farnan, CEO of United Fiber, shares how they are differentiating through business purpose and services. Jimmy Todd, CEO of NexTech, shares how they are partnering with Calix as the early adopter of the new SmartBiz™ solution to drive differentiation in their markets for the businesses that are key to their community.
In 2023, our platform will expand at the fastest pace yet to ensure you can differentiate from the competition by addressing the residential, business, and smart-community needs.
Purpose as a business strategy—a topic for ConneXions 2023 Leadership Track
Whether a not-for-profit cooperative or a for-profit business, purpose is a powerful motivator for team members and the community members who interact with your brand/business. Our team had Daniel Pink, award-winning author who headlined ConneXions 2022, speak to the team about purpose and how powerful this is as a motivator. He commented that Calix is very fortunate to be serving the success of broadband service providers (BSPs) that are transforming the communities they serve. It is part of the message that Darren Farnan shares in his article as he describes their team purpose.As we seek new team members, we have found that, when we explain your mission and how we are supporting your success, that they get very excited. For Calix, this is a true differentiator in hiring and in inspiring our team members to go that extra mile for you.
Which is why we are so excited to have Daniel Pink returning to ConneXions in 2023 as part of the Leadership breakout. In that breakout you will have the opportunity to ask questions and discuss purpose with Daniel in a private session for CEOs and GMs.
In this Beacon we have also included the registration link for the upcoming Simon Sinek webinar for leaders, where purpose will be discussed at length.
Talent and the changing environment
I constantly get asked what I am most focused on for the year ahead, and every year it remains the same: attract the best talent, improve the performance of the team, and remove those who are not aligned. If we have a great team, then we will achieve our goal of making every single BSP customer more successful.In the technology market, many companies have been lax in their operational discipline—leading to layoffs at Salesforce, Microsoft, and Meta (to name a few). While we empathize with those impacted, this also represents a great opportunity for your teams to actively recruit talent. As one broadband CEO shared, he is no longer wed to the idea that new talent must live in his community, as work-from-home has proven effective and has been a boon for broadband.
He went on to state that he has hired several remote employees and it is working very well, as he has been able to attract a talent level that would have been hard to get if they had been forced into his small community.
As we go into 2023, there is a huge opportunity to attract people to your community (through the power of your amazing broadband experience) and diversify your employee base as candidates learn about your purpose and the opportunity ahead.
On the Calix front, we are continuing our growth trajectory and continue to grow our team at a time when many people are looking. There has never been a better time for you and our team to attract people to our industry!
To that end, the head of Calix Talent and Culture, Parul Kapoor, has also launched our 2023 intern program, which will see around 60 virtual interns join our team. If you have a great candidate, please do not hesitate to email me, and I will ensure they get into the process! If you are interested in building out your own virtual intern program, we would be glad to share best practices.
2023 is shaping up to be an even better year than 2022, as your success moves at a faster and faster pace. The Calix team will continue to invest to contribute to your team’s success and bring the best leadership speakers and best practices to the forefront for your consideration—culminating in the Leadership track at ConneXions in October.
Join ConneXions 2023 on October 14-17
At ConneXions 2022, we expanded the Leadership track, providing insight into how BSPs can be giants for your subscribers and communities. As the event sold out quickly, we are opening pre-registration early this year to ensure this track is prioritized. I would highly recommend that you save your spot today to join us.
Plan now to attend ConneXions 2023.
As always, if you have any comments, questions, or concerns, please reach out to me at michael.weening@calix.com and connect with me on LinkedIn.