source: Asia Society
States Institute on International Education
Michael Eskew
Chairman and Chief
Executive Officer, United Parcel Service
Washington DC, December 8, 2005
Thank you for that kind introduction and good evening, everyone.
It’s a privilege to be here tonight, in the company of so many people who
play an incredibly important role in the future development of our nation.
There is no issue more critical to our country’s long-term competitiveness,
health and well-being than the quality of our education system.
The world is changing.
Business is changing.
Our society is changing.
And, as you have made it clear – the way we teach and nurture our future
leaders must also change.
In times of extraordinary transformation, it’s natural to feel that we’re
somewhat unique – that we’re experiencing changes no one else ever had to deal
with.
While that’s partly true, we should also take comfort in the fact that others
before us experienced similar challenges as we face today and rose to meet
them.
Washington, with the rich history that surrounds us here, is a great backdrop
for such a discussion.
For instance, if you think back to what Abraham Lincoln and the Congress of
1860 were facing– it was remarkably similar to what we’re going through
today.
And no, I’m not talking about the Civil War.
I’m talking about an often overlooked issue of that day: a transforming
economy and jobs.
Then, sweeping economic change threatened a largely agricultural economy and
a rural, insular way of life.
In quick succession, steamboat service was introduced. Scores of canals were
constructed. Thousands of miles of railroad track were laid. And countless
telegraph lines were strung throughout the nation.
It was a time of groundbreaking innovation.
Almost overnight, large numbers of what had been generally self-sufficient
local economies found themselves caught up in a changing and expanding national
economy.
Competition no longer came from the next town. It came from producers in many
parts of the country, and even from industries abroad.
People began traveling farther and more often.
Yet, there was tension then, too. Economic growth was not a vertical line
upward.
Financial crises occurred … like the panic of 1857.
That produced sharp increases in unemployment… large numbers of bankruptcies…
and runs on banks.
Not surprisingly, many resented the developments that led to this
volatility.
Most Americans still thought of themselves primarily as Kansans or
Kentuckians or Virginians. They identified with their states.
To many, the erosion of the economic boundaries separating communities and
states … and the increasing competition from other regions and Europe … came as
a big shock.
Protectionist pressures were strong.
In 1860, when Lincoln and a Republican Congress came to power … the
administration pushed forward four broad policies:
- Help Americans get a stake in their nation by increasing their opportunity
to own property and establish businesses.
- Assign a role for government to support the economic, educational and
technological changes taking hold at the time.
- Establish a transcontinental railroad.
- And realize that a period of turmoil, while potentially a barrier to reform,
may also present a unique opportunity.
The rest, of course, is history:
- A collection of states became a nation.
- A climate for Americans to capitalize on innovation and emerging
technologies was created. A rising class of entrepreneurs and property owners
flourished. /li>
The stage was set for the American economy to dominate the 20th century.
Ask an educator and they’ll tell you that we can learn a lot from history.
I’ve done a lot of asking over the years – my wife is a teacher.
Now, we must compete in a 21 st century world economy.
And like what Lincoln promoted, it’s going to take a multi-lateral approach,
engaging every corner of society.
I’ve given a number of public speeches over the past several years that deal
with global trade, business transformation and education.
You could say it’s enlightened self interest to do so. After all, I work for
a company that is entrenched in the global economy … and has a lot riding on its
continued development.
On any given day, about two percent of everything produced in the world is
delivered in the back of those beautiful brown trucks you see rolling through
the streets of your hometowns.
But this issue goes further than my professional interest. Much further.
As a father, citizen, and someone who cares deeply about global trade, global
prosperity and global harmony, I feel it’s our mission to help prepare people
for a world that is coming closer together through trade.
That said, I applaud the work you folks are doing at the States Institute,
and am heartened to see so much progress being made to advance international
education in our schools.
I went to InternationalEd.org
and counted no less than 20 states involved in programs ranging from:
- Student and teacher exchange programs with China
- New multi-language curricula
- International trade literacy
- Global communication technologies
- And the list goes.
It’s clear to me that you are well on your way towards effectively changing
the way we teach the next generations of Americans. But I also recognize from
talking with many of you, that your work in many ways has just begun.
Don’t feel alone. We’re all in this together. Business. Government.
Education. Parents. And students.
In the time remaining tonight, I think maybe the best value I could bring to
you is to outline six specific traits we’re looking for in future employees at
UPS as we engage even further in world trade.
We need people who are:
- Trade literate
- Sensitive to foreign cultures
- Conversant in different languages
- Technology savvy
- Capable of managing complexity
- Ethical
These six traits have bearing on the kinds of education needed to bring
people to the workplace who are equipped to succeed in the global economy.
And, by the way, while I’ll use UPS examples, I don’t speak just on behalf of
our company tonight. Over the past few years, I’ve participated on a number of
boards, committees and agencies – from the Business Roundtable to the
President’s Export Council to the U.S.-China Business Council. I spend a lot of
time talking to fellow business and government leaders, and I can tell you that
we’re all very aligned in our thinking.
The same kind of thinking expressed by Melodie O’Hanlon, an English teacher
at Berkeley Springs High School in West Virginia.
Listen to what Miss O’Hanlon says: “Understanding the true economic, social
and political forces at work in the world is essential in solving problems on a
local and global level.”
This gets to the heart of the first trait I’ll talk about – people who are
global trade literate. In other words people who understand the basics of 21 st
century trade and economics.
One could argue – and I have over the years – that a major reason that the
term “globalization” has come to mean a menacing force in the minds of many is
that we haven’t done a good job promoting trade literacy in this nation.
The business community in particular.
Tom Friedman, a good friend of UPS and educators everywhere, recently wrote a
column about this.
Tom contends America’s leading businesses and business leaders have been too
quiet. While the opponents of globalism have been loud.
Last year, during the national elections, we even saw global trade cast as
political wedge issue.
And that’s a shame.
Education, hopefully, will change that perception.
At UPS we’ve started a companywide initiative to teach an ongoing global
trade curricula to every UPSer. We’re utilizing our employee web site, as well
as one-to-one meetings with drivers, management discussions and other
channels.
And we’re also staging conferences around the world with people like Tom
Friedman, Jimmy Carter, FW de Klerk, Vaclav Havel and George Bush Sr. to elevate
discussion about global trade and supply chain issues.
As our business moves further into both of these areas – trade and supply
chain — we’ve seen a dramatic demand for people skilled in global trade
jobs.
In fact, we’ve added over 20,000 supply chain jobs in the last five
years.
The Wall Street Journal recently described supply chain professions as “the
kind of high value work that international trade produces. Jobs that our nation
needs right now to offset losses in other industries.”
The second trait we look for are people who are adaptable and sensitive to
foreign cultures.
In 1976, I was among the first wave of American UPSers to work in our
fledgling international operations. I was sent to Germany and it was an
eye-opening experience.
Let’s just say we weren’t as cross-culturally astute as we are today. We've
learned some lessons the hard way over the years.
During the build-up of our business in Europe, we were challenged with
integrating 16 acquired companies.
The integration of those acquired companies into our organization was the
biggest stumbling block to our international expansion.
Unfortunately, our first impulse then was to behave more like commandos
instead of teachers, partners, and consultants.
Our attitude was often, "You stand over there and watch how we do this, then
do it exactly the same way." In short, it was, "the UPS way or no way."
Well, that didn't work and our business suffered.
Things only got better when we found the right blend of UPS culture,
capabilities, and local knowledge. We knew we had acquired valuable operations
in valuable markets. Our job should be to make it better, not make it over.
When we focused our coaching into areas where significant improvement was
needed and left the rest alone, things improved.
We learned that local employees lend more credibility to the local customer
base because they understand the culture, language, legal system and business
practices.
We learned that integrating acquired companies means balancing both parties’
expectations, while creating a climate of trust, inclusion and cooperation.
People who are sensitive to foreign cultures will always have a home at
UPS.
Part of that adaptability and sensitivity comes with the third trait we look
for — foreign language skills.
When I was a kid, growing up in Southern Indiana, I never thought about
foreign languages. Now, it is essential to expose children to different
languages and cultures.
Today, in American schools, one million students study French - a language
spoken by 70 million people. Fewer than 50,000 American students study Chinese,
a language spoken by more than a billion people.
During a recent trip to China, I heard an interesting statistic: There are
more people learning to speak English in China right now than there are English
speakers in the United States.
In very short order, the United States will become the third largest English
speaking country – behind India and China.
At UPS we serve 200 countries and over 150 languages. We have web sites
translated into 22 different languages.
Foreign language skills are essential to our business and will be even more
so in the years ahead as we expand our footprint in Asia and the rest of the
developing world.
One universal language that is vital to UPS is technology.
In fact, the fourth trait we look for in people to help us with our
international business is technology skills.
Global technologies and usage patters greatly impact our lives and our
businesses.
Think about the developing world … while lacking in wired resources they
actually have leapfrogged the Western world in wireless usage and
application.
China today, for instance, adds five million new cellular customers every
month.
And as you know, China and India are producing millions of bright new
engineers, scientists, materials researchers, software developers and other
technology professionals.
In the area of engineering alone, the U.S. ranks 17 th in producing new
talent.
As a Sputnik-inspired engineer myself, this concerns me. We have over 10,000
engineers at UPS and that demand will only increase in the coming years.
Technology is central to our mission at UPS of being able to serve every
customer — whether they’re in Boston or Bangkok — as if they’re our only
customer.
Without these kinds of capabilities it would be impossible to compete in a
global economy. Customers demand more services and more responsiveness.
Technology is the great enabler.
Here’s a simple example of how technology impacts just one area of UPS.
Six years ago during the Holiday season, we received 600,000 service calls -
mostly tracking inquiries. The cost per call was $2 dollars.
This year, those same inquiries are being handled over the Internet. By the
end of the Holiday season, we will have handled more than 12 million of them
that way, at about one cent per call.
Greater service for our customers at lower costs.
New technologies, new competitors and disruptive business models are
accelerating at a furious pace – just look at the extraordinary rise of iPod, Google, eBay and other “flatteners,” as
Tom Friedman would call them.
These kinds of forces, compounded on a global level, are also why we look for
people who can manage complexity and uncertainty.
This is the fifth trait we look for – people who can learn how to learn.
While information is much richer today – complexity and uncertainty have not
abated. In fact, they’ve increased.
That’s also why we want to make it possible for people to have six or more
different jobs in the course of a career at UPS. In fact, we think it’s the key
to our management longevity, which we consider a distinct competitive
advantage.
Today, the average UPS manager has been with the company over 16 years and
has had at least six different assignments – many of them international-related
assignments.
Being able to manage complexity … and learning how to learn is a trait we
will always value. One of the great attributes of a liberal arts education is
preparing people to learn how to learn. So we absolutely believe that
traditional liberal arts educations still have an important role to play in
American society.
Another tradition that has never been more important to America as it engages
in a global marketplace is ethical behavior … which is the sixth trait we look
for in our people.
Business integrity and diplomacy have been under the microscope in recent
years. And that’s too bad … because the vast, vast majority of American business
leaders, like educators, play an essential and honorable role every day of their
lives.
Outside the U.S., widespread negative perceptions of our country still
persist.
The business community can play a big role in fixing this tarnished
image.
In fact, I believe we’ve entered an era where business diplomacy trumps
political diplomacy.
The world has become so integrated economically that the vast majority of
influence … the greatest force that impacts the greatest number of lives
internationally … is business.
Our actions and our beliefs are not only shaping the perceptions of our
companies abroad but they are forming impressions about our nation and the
ideals for which it stands.
It’s a huge responsibility – one we must manage with care and diligence.
I recently spoke at Bentley College up in
Boston. Many of you are probably aware that Bentley pioneered the study of
business ethics in American higher education. I applaud their work.
At the same, we need to make sure that those foundations of ethics are
grounded in students long before they reach the collegiate level. Our schools,
our families, our businesses and our communities all have roles to play in this
regard.
At UPS all of our managers are certified each year on compliance and foreign
business practice issues.
“Doing well by doing right” has been a philosophy that has served UPS well in
our 98 years of business and will continue to.
Tonight, I’ve outlined six attributes that we look for in people who will
help guide our company in an expanding global economy. People who will guide
most American companies. People who are:
- Trade literate
- Sensitive to foreign cultures
- Conversant in different languages
- Technology savvy
- Capable of managing complexity
- Ethical
Everyone here tonight plays a big part in helping us not only attract the
right people … but in succeeding in this complex, challenging, invigorating and
opportunity-rich world of change.
By promoting international education in our schools, you’re promoting
America’s business interests … social interests and cultural interests.
On behalf of all my fellow business leaders around the country, I want to
thank you for all hard work and dedication you put into this most noble
cause.
We need you. We value you. And we want to continue working closely with you
in the years ahead.
Thank you again for your time and attention this evening.
