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EP21: Developing Talent and Building Advanced Technology in Small-town America with William LaBar of CGI

Transcript

Participants:

Michael Young

William LaBar, Vice President CGI

One of the main topics I got into this season is the role of corporations as citizens. In particular, how companies show up in the communities where they operate, and how they behave.

In the world of information technology services: the business of building software and systems, the assumption is you need to be in New York, Washington DC or San Francisco if you want to find the best talent and be close to your customers.

And as a corporate citizen in NYC or SF, you have an impact, but it’s not that dramatic.

However if you’re a big company that chooses to focus on developing talent in smaller markets, places like Lafayette Louisiana, Wausau, Wisconsin and Lebanon Virginia, you are going to have a much larger impact.

That’s the strategy of CGI, which is one of the largest IT and business consulting  firms focused on state and federal government contracts.

My guest today is Will LaBar, Vice President of CGI.

Will is in charge of CGI’s U.S. Delivery Center program, a network of 7 centers of excellence across the United States that employ over 1,800 IT professionals and leverage public-private partnerships with local communities and universities.

Will and I talk about CGI’s strategy to build service centers in smaller markets where they are having a big impact on economic development, jobs, and education.

We talk about hiring Millennials and CGI’s approach to recruiting Millennials, especially in smaller markets on advanced high-value innovation hyper-converged infrastructure storage solutions, cloud, AI and cybersecurity.

We get deploying into CGI’s programs to develop talent in local communities through training programs STEM@CGI, etc. K-12/community college/university.

Why the future of work in post-COVID world might actually be in smaller markets.

Without further ado, my conversation with Will LaBar of CGI.

Michael Young:

Will, thanks so much for coming on the podcast.

Will LaBar:

I'm excited to be here, Michael. Thanks for having me.

Michael Young:

You bet. Okay. So, a lot to get into, a lot to cover today. But the thing that really interested me in having this discussion with you today, Will, is about how your organization, how CGI is thinking about innovation and thinking about hiring. And so, just kind of set us up with how you think about all of that together as part of your service delivery model.

Will LaBar:

Sure. Well, I mean I think that probably goes back to, if you look at CGI's core values and the way that we balance our stakeholders and we think about our stakeholders in a triangle fashion, we have our clients, our members and our shareholders. And so, like we're constantly looking at ways that we can bring new and innovative solutions to our clients. We're trying to create an environment where our clients are always learning how to do their business better. And paired with that our members, our employees, we're trying to create an environment for them where they can be a part of a company that they're proud of and build a career that is satisfying those clients’ missions and it's always challenging them. So, to me, it's this constant or this culture of continual learning that is focused on the mission of our clients and, of course, the career growth and passions of our members. And then I think that obviously all drives shareholder value and I think specific to my role within CGI is how that really intersects with the community in a very unique way with our U.S. delivery center as a part of our onshore model. And then, that onshore model is a part of our global delivery network. We have a client proximity focus. We have offshore, we have near shore and then I sit within this area of creating these U.S. centers of excellence in smaller parts of the country.

Michael Young:

Right. And the organization has specifically decided and made the decision to move these centers into smaller markets. So, talk about what drove you to that, what was the thinking there and then I really want to get into the impact that you're having in these local markets because again, it's like everything, politics, news, it's all local. So, I'm really excited to talk to you about this small town local dimension to what you're doing.

Will LaBar:

Yeah. So, I think maybe I'll provide a little bit more definition around what they are and the best way to do that is to describe a little bit about where they are and the type of work we do there and the partnerships we create. So, we have about seven of these centers in the U.S. with close to 1,700-1,800 employees across those seven and they range from Waterville, Maine to Wausau, Wisconsin down into Texas and Lafayette, Louisiana which is where I'm based out of and Alabama and then rural Southwest Virginia which is where we started this whole journey back in 2006. And the type of work we're doing in these locations, these are cities or towns that have in some cases like Lebanon, Virginia, it's like two to three thousand people and then you get up to Lafayette which is like 120,000 people. So, these are not your big tech meccas in America, right? But we put these centers in these locations and we're doing really high-value innovative work in them. If you look at Texas, we're creating like hyper-converged infrastructure storage solutions in a cloud with our clients and if you look at Lebanon, Virginia, where there’s like members there with like over 15 years of experience in federal financials and also supporting the intelligence sector and then in Louisiana, like deep healthcare knowledge and cybersecurity expertise that were grooming there. But these centers are very unique in  the types of jobs they're bringing to communities and they're really anchored around partnering with local universities in those communities, partnering with the local economic development organizations, the chambers of commerce, etc. in order to bring that value that I was talking about to our clients and create these career opportunities for our members. And then it also has this great synergy with the community itself if that makes sense.

Michael Young:

Absolutely. And so, talk a bit more about the economic impact that CGI creates in these markets if you would.

Will LaBar:

Yeah. So, it really depends on the size of the center but a typical model would have us sort of making a commitment the local community to create about 400 jobs and I think that the average annual economic impact in Lafayette where I live was $90 million a year when we hit 400 and we did that so fast that were we're going to grow it to 800 here. So, there's the basic dollar value of the economic impact but then there's the stories too that come with it that the community can then tell about itself. And so, the ability for Lebanon, Virginia to be able to go to the market and compete as a location in a region for additional jobs and to be able to point to the partnership they have with us makes a value proposition in and of itself there. And then I think there's the economic development impact of the work we do in engaging with the education sector in these communities and the work we do with things like our STEM at CGI program. And so, it's hard to quantify that a little bit but I wouldn't want to overlook it. I think that the basic structure we set up and the framework for partnering with these communities becomes a force multiplier for us and for the community at large.

Michael Young:

Yeah. Well, and as you were talking, I was thinking about that just it changes the narrative, right? Locally?

Will LaBar:

Yep, absolutely.

Michael Young:

That's a big deal. Narrative matters. I want to get into that the training programs that you do, STEM at CGI and what you're doing with education K through 12, community college and university. So, give us an overview of that initiative.

Will LaBar:

Sure. Well, I think at its core, this in and of itself is a recognition that when we create one of these centers, we need to focus on the long game here and we are helping a community create a talent pipeline not just for us but for the vision for that community in the future. And so, a few years ago, we started the STEM at CGI program that really helps codify that a bit and the great thing about this is it was created by a few CGI members who had just graduated from college which I think speaks a little bit to the culture we create to empower our members to have an impact. But these new hires, they're like we want to do a STEM camp locally and it had such an impact on the students that we reached that we then took it to cities across the U.S. and it's now become a global program. But we're focused on demographics that are underrepresented in STEM so women, minorities, disabled students, economically underserved portions of these communities and really focused on trying to inspire and mentor them on pursuing fields in NIT and other STEM careers and we're getting into a classroom, we're teaching them how to code or talking about hardware. And so, if you think about this pipeline, you got the K-12 part and then there's the partnerships we create with community colleges and universities and we go into the classrooms there. We do capstone programs and internships, all the things you would think about an industry partner would do with the university and we're just trying to build that bridge across that entire spectrum and we certainly have parts of the bridge we still need to build but proud of what we've done so far and excited about what the future holds there for sure.

Michael Young:

Yeah. Well, and obviously with COVID, I'm a city kid, I grew up in cities, I have lived in cities. Where I live now outside in the Bay Area is probably the furthest I've lived from a big urban area but certainly small towns are getting more recognition. I'm reading things all the time about people looking to move out of cities which is a change and a reversal. So, you guys are already there in terms of having seen the markets coming to you. I guess talk a little bit about Millennials in particular because when I think about that demographic and that's probably a target hiring cohort for you, they tend to want cities. So, not everybody's going to be a fit for one of these centers for you but what do you offer to that particular group of employees or members that it makes coming to one of these centers attractive. And again, you mentioned at the top, these are not low-level tech jobs. These are high level innovative. It's advanced work. So, how do you attract Millennials may be a quicker easier way to ask that long question.

Will LaBar:

Yeah. Well, and you're right. This is a big demographic for us or recruiting right out of college in general, right? And so, just thinking about people who are early in their career and what are they looking for because typically in our growth mode in these communities, sometimes up to 50% of our hiring which is 50 new employees a year is coming out of college. So, I think there's a number of things. It kind of goes back to what else from an earlier that you need to offer, you definitely need to offer an environment where you're empowered and you enjoy working. You're learning from your peers and I think it's critical to be proud of what you are a part of, right? And I think that's a lot of what people are looking for when they're starting out in their career now. In fact, when we're recruiting, it's just really cool because I'll talk to a lot of people that are candidates and I'll ask them why are you interested coming to work for us and they'll touch on like the career opportunities and stuff but there's a lot of candidates who say well, I see the impact you're having in our local community and I want to be a part of that and that always just gets me fired up to do more. And so, I think that kind of goes back to what you're asking right there, like how do you attract that kind of talent. It's more than a paycheck for so many people and I don't think it's just Millennials and new hires. I think that sort of spans across the entire spectrum. People are really looking for that.

Michael Young:

Yeah, absolutely. And if you could maybe just get into what have you learned along this journey that would be useful to others? What advice do you have for other tech firms that are recruiting and maybe thinking about expanding their talent base beyond New York, San Francisco, Chicago, Dallas, Atlanta?

Will LaBar:

So, a ton of different lessons. I have written on the wall in my office the phrase ‘Potential over experience’. And so, every time on talking to whether it's someone within CGI or clients or other companies who are thinking about locating to one of these communities, I really try to underscore that and you really need to be able to refine your ability to identify talent in a non-traditional manner and learning that and learning how to do that is not an easy thing. And so, I guess and maybe the other lesson learned comes a little bit from like the consulting culture that I started my career out in which is always listening to my clients to try to understand what their business problem is. I think one of the things that's made us really successful in these communities is that we're listening to the communities that we are a member of and understanding where are the challenges within the community and how can we help and how could we bring the platform that we as a global company have and the talent that our members have to bear on the challenges and the vision for that community and where they want to go. And if we can make ourselves a part of that, that helps attract that talent. And then if we can figure out a way to connect the way we're giving back to the community to the mission of our clients, then we've kind of woven it all together and if we can stitch it together like that, that really drives shareholder value and I think that all those things are just interconnected. And so, listening to the community I think that you are a part of and where you live and you work is an integral part of the way to do that successfully. So, that's probably one of the biggest lessons learned I've taken away from my experience.

Michael Young:

Yeah, ride on. Yeah, values matter. We see it now more than ever. Right? It's completely transparent. So, I wanted to maybe put you on the spot and ask you to give us some future predictions whether within your own business, within your own four walls but where do you see, use COVID as the context, the accelerant if you will, is this going to be a trend that CGI continues with and how do you think this changes talent management, acquisition, recruitment, service delivery, consulting? I'd love your thoughts broadly because you're looking at this from a very unique perspective. What does the future hold?

Will LaBar:

Yeah.

Michael Young:

Tell us. You must know.

Will LaBar:

Yeah. I'm definitely not a good tea leaf reader. But there's a lot of different ways to take that conversation. I think about it, one of the reasons we picked these community is because of the unique access to talent that we can find and culturally, I think businesses and government organizations, entities of all kinds have realized that you can do work from anywhere and be sometimes even more productive. And so, I think it'll be really interesting to see sort of what the war for talent evolves like as you see entities willing and able to recruit talent from anywhere and have it work remotely, as you see some of our clients get more comfortable with doing work maybe outside of the Beltway and the federal government and doing it in Lebanon, Virginia or something, right? And that opens up new value propositions and value streams for them. And so, I think that's going to be one fundamental change. And that'll change one, our ability to grow in these locations. And so, we're going to continue to strive to do that. And it'll also change sort of how we retain our talent in those locations because now they could be recruited from anywhere possibly, right? So, that's one thing for us to be thinking about.

You mentioned the accelerant in the IT space. People look at COVID and they talk about how it's an accelerator for things like cyber security and cloud modernization and that for sure is something for us to be aware of in our industry and across all industries. And so, I think you've seen the need for digital solutions and digital transformation to enable resilience during the pandemic. And so, you have all those demand factors I think aggregating there that we would keep in mind. And I guess the last thing I'd say there if I was going to try to look a few steps ahead is I don't think we can ignore the dialogue that's occurring within our country around equity and diversity and inclusion. The pandemic that were going through or we went through or currently in, it has hit the underserved parts of our community, the black community and minorities more than other parts and you have recent events that have really brought to the forefront the conversation we need to be having as a country around social equity. And I think all of that is an accelerator in and of itself in how we think about talent and the need for us to include equity into how we find talent and grow talent within our organizations. I've been listening to a really powerful speaker recently named Angela Blackwell and she says that for communities, equity is the superior growth model and I think it's interesting to try to apply that to your companies and your organizations and the value that comes with diversity. And so, when I think about the future, those three things are the things that come to my mind on topics we need to be keeping up the forefront.

Michael Young:

That's great. And the last one in particular I think is, I mean just imagine we're obviously a large economy, imagine how much more powerful we would be as a country if we took advantage of all of the talent out there equally.

Will LaBar:

Absolutely.

Michael Young:

It's a pretty compelling thing and yes, it has justice and equity issues built in but let's not forget that there are so many people who are just underrepresented and are not given equal opportunity. What if we had that? What if that were available?

Will LaBar:

Yeah.

Michael Young:

And that's really embedded in what you're saying.

Will LaBar:

Yep. That’s spot on which goes back to our STEM programs that we have. It's really trying, that is not an easy thing to address or fix. And so, trying to find the right partnerships where we can be a part of that is important to us.

Michael Young:

Yeah. And you've taken it from a very unique perspective. And well, we're going to have to leave it there. But I very much appreciate you coming on the podcast and talking about your work.

Will LaBar:

I've really enjoyed the conversation. Thanks, Michael.

Michael Young:

Thank you.

RECORDING ENDS