Breakaway TakeawayThe Second Annual Bloomberg Breakaway

Summit

Thank You to OurSponsors

Bloomberg Breakaway 2017 was proudly sponsored by:

About BloombergBreakawayFor CEOs by CEOs

Bloomberg Breakaway is aninvitation-only membership ofCEOs and CFOs leading sizable,nimble businesses on a fast-growth trajectory. This exclusivepeer network provides a forumfor leaders to connect withpotential partners and clientsacross industries, gain exposureto investors across assetclasses and express their viewson the most urgent issues facingtheir companies and the globaleconomy today.

2017 BloombergBreakaway Members

2017Members

Shabbir Ahmed, Chief Financial and Administrative

Officer, D'Addario & Company, Inc.

Mohamad Ali, President and CEO, Carbonite

Nadir Ali, CEO, Inpixon

Don Baer, Worldwide Chair and CEO, Burson-

Marsteller

Anna Baird, CFO, Livongo

Linda Blair, President and CEO, ITC Holdings Corp.

David Blatt, CEO, CapStack Partners

Martin Bloom, Group CEO, Intelligent Energy

Jonathan Bostock, COO, Big Ass Solutions

Jay Bray, Chairman and CEO, Nationstar

Ben Brock, President and CEO, Astec Industries, Inc.

Enrique Camacho, Co-Founder and President, Simtec

Silicon Parts, LLC

C. Keith Cargill, President and CEO, Texas Capital

Bancshares, Inc.

Scott Cattran, President and CEO, Woolpert

Ben Chestnut, Co-Founder and CEO, MailChimp

Doug Clark, President and CEO, Corcentric

Michael DeFranco, Founder and CEO, Lua

Claudio Del Vecchio, Chairman and CEO, Brooks

Brothers Group Inc.

Michael DeSimone, President and CEO, ShopKeep

Ali Diab, CEO and Co-founder, Collective Health

William Diotte, CEO, Mocana Corporation

Robert D'Loren, Chairman and CEO, Xcel Brands

Natalie Douglas, CEO, Healthcare at Home

Joseph Fichera, CEO, Saber Partners, LLC

Stuart Frankel, CEO, Narrative Science

Churchill Franklin, CEO, Acadian Asset Management

LLC

Rusty Frantz, CEO, NextGen Healthcare (Nasdaq:

QSII)

Marc Gardner, President and CEO, North American

Bancard

Brett Goldberg, Co-CEO, TickPick

Kara Goldin, Founder and CEO, hint Inc.

Steven Halverson, Chairman, The Haskell Company

Nathaniel Hill, Founder and President, Broadway Plus

VIP Services

Yuri Horwitz, CEO, Sol Systems

Diane Hoskins, Co-CEO, Gensler

Walter Johnsen, Chairman and CEO, Acme United

Corporation

Jay Kaplan, CEO and Co-founder, Synack

Jeffrey Kiesel, CEO, Restaurant Technologies, Inc.

Frank Longobardi, CEO, CohnReznick

Christopher MacFarland, CEO and Chairman,

Masergy Communications, Inc.

Joel Marcus, Chairman, CEO and Founder, Alexandria

Real Estate Equities Inc.

Philip Martin, Founder and CEO, Censible

Greg Mason, CEO, Purch

Hemang Mehta, Co-founder, Sunrise Capital Partners

Avner Mendelson, CEO, Bank Leumi

Douglas Merrill, CEO, ZestFinance

Doug Merritt, President and CEO, Splunk

Matthew Mosher, EVP and COO, A.M. Best Rating

Services

Eric Mosley, CEO, Globoforce

Rao Mulpuri, CEO, View Dynamic Glass

Douglas Murray, CEO, Big Switch Networks

Thomas H. Nolan, Jr., Chairman and CEO, Spirit

Realty Capital

Torben Möger Pedersen, CEO, PensionDanmark

Andy Polansky, CEO, Weber Shandwick

Jason Robins, CEO and Co-founder, DraftKings

Mark Rolston, Co-Founder and Chief Creative Officer,

Argodesign

David Rosenthal, Vice President and General

Manager, Razor Technology, LLC

Mitchell E. Rudin, CEO, Mack-Cali Realty Corporation

Andra Rush, President and CEO, Detroit

Manufacturing Systems

Ramin Sayar, President and CEO, Sumo Logic Inc.

Akshay & Keech Shetty, Co-CEO, Combe

Incorporated

Yehuda Shmidman, former CEO, Sequential Brands

Group/Martha Stewart

Mihir Shukla, CEO, Automation Anywhere

Jay Sidhu, Chairman and CEO, Customers Bancorp,

Inc./BankMobile

Marcus Smith, CFO and Interim CEO, Talking Rain

Beverage Co.

Alan Sokol, President and CEO, Hemisphere Media

Group

Eric Stang, CEO, Ooma, Inc.

Kelly Steckelberg, CEO, Zoosk

Glenn Stevens, CEO, GAIN Capital

Marquise Stillwell, Principal and Founder, Openbox

David Teece, Chairman and Principal Executive

Officer, Berkeley Research Group, LLC

Stephen Ubl, President and CEO, PhRMA

Gary Vaynerchuk, CEO, VaynerMedia

David Weinreb, CEO, Howard Hughes Corporation

Scott Wells, CEO, Clear Channel Outdoor

Harry West, CEO, frog

Rosa Whitaker, President and CEO, The Whitaker

Group

Rick Wise, CEO, Lippincott

Gregory A. Woods, President and CEO, AstroNova,

Inc.

Gene Zaino, CEO, MBO Partners

Mary Ellen Zellerbach, Managing Director, Martin

Investment Management, LLC

Breakaway SummitKickoffMay 2, 2017

The Future of E-Commerce

‘All of the growth in retail is beingabsorbed by e-commerce – andall of the e-commerce is beingabsorbed by Amazon andAlibaba.’– Michael Rubin

Patriots Day

‘Sometimes in life and inbusiness, a negative can be apositive if you manage itproperly.’– Robert Kraft

After cocktails and horsd’oeuvres on the 28th floor ofthe Bloomberg Tower, withpanoramic views of Manhattanand beyond, Breakaway CEOssat down for a dinner thatincluded interviews with MichaelRubin, founder and executivechairman of the online sportinggoods retailer Fanatics, andRobert Kraft, owner of SuperBowl LI victors The New EnglandPatriots.

Breakaway SummitMay 3, 2017

Following a sit-down, networking lunch, Breakawaymembers heard a live, on-the-record interview withCommerce Secretary Wilbur Ross.

On his early support of Donald Trump:‘He was the only one who understood “voter angst.”’

On navigating Washington:‘The major problem is the Republican Party is a little lessunified than I would have hoped and Democrats are moreunified in opposition.’

On free trade:‘Many countries talk free trade but are quite protectionist –especially China.’

On lax enforcement of trade deals:‘Once you have a trade agreement, it’s a little foolish not toenforce it.’

On NAFTA:‘What this is about is renegotiation,’ not having no traderelations with Canada and Mexico.

The View from Washington

Executive Insights

Moynihan and Grauer on theeconomic outlook:

Moynihan and Grauer on the role ofcorporate boards:

Moynihan and Grauer on breakingup the big banks and navigatingWashington:

Bank of America CEO BrianMoynihan and BloombergChairman Peter Grauer talk withDavid Gura about the state ofthe economy, the role of thecorporate board, breaking upthe big banks and navigatingWashington.

More Executive Insights

Executive Insights

Workforce Evolution: CathyEngelbert on the Age of AI

‘Jobs are just a series of tasks.Some will be automated, somewon’t….Sixty percent of school-age kids will have a job thatdoesn’t exist today.’– Cathy Engelbert, CEO, Deloitte

Future Growth: Steve Case on theCompany of Tomorrow

‘The fundamental aspects of ourlives haven’t changed much in thefirst and second waves [oftechnological innovation]. But inthe third wave –you ain’t seennothing yet.’– Steve Case, Chairman and CEO, Revolution

LLC

War Games: Marc Lore on theBattle to be Number One

In the next five years,‘conversational commerce willbecome more mainstream' as theexpertise of in-store specialists ismerged with a digital system ‘thatknows you as well as your parent.’–Marc Lore, President and CEO, Walmart U.S.

eCommerce

Managing the Tumult: RobertNardelli Stays on Message

‘The range of constituents youhave to be sensitive to is broaderthan ever. When you misspeaknow, it’s to the world.’–Robert Nardelli, Founder, XLR-8 LLC

The Fixer: Judy Smith on Secretsof Crisis Management

‘Studies have shown that if thereis a plan in place…you will have an80 percent better chance ofrecovery from a crisis. If you don’thave a crisis-readiness team inyour company, you need one.’–Judy Smith, President, Smith & Company

Tackling the Issues

Innovate or Die: A Panel Discussion With Fannie MaeSenior Vice President Bruce Lee, Cisco Chief StrategyOfficer Hilton Romanski, and GE Digital CFO KhozemaShipchandler

Staying Ahead of the Hackers: A Panel Discussion WithDarktrace CEO Nicole Eagan, Council on ForeignRelations Senior Fellow Rob Knake, and IBM CyberIntelligence and Analysis Expert Robert Stasio

H-1B Visas: Bloomberg Intelligence on What You Needto Know

‘We are moving into an area where the [high-tech]skills shortage is actually going to accelerate. …Wefear looking at emerging technologies--whether it’sartificial intelligence, cloud, analytics, cybersecurity’--that we won’t have the people.

–Anurag Rana, Senior Analyst, Bloomberg Intelligence

CEO RoundtableThe View from the Top

Three leaders – Synchrony Financial CEO MargaretKeane, Celestica CEO Rob Mionis, and Philips NorthAmerica CEO Brent Shafer – have a freewheelingexchange about what lies ahead.

'Millennials, they're a different breed. They have veryhigh expectations.'–Rob Mionis, CEO, Celestica

'The way goods and services come together in thefuture is going to be very different than it is now.'–Margaret Keane, CEO, Synchrony Financial

'60 percent of our spend is around AI.'–Brent Shafer, CEO, Philips North America

How to Attract PrivateEquity

Q: How would you think about equity vs.

debt and how to structure transactions

for these [middle-market] companies?

DS: The cost of debt is typically lower

than the cost of equity so if you have

stability and predictability, using that

debt is a good tool for us as investors

and a good way for a seller to make

sure they are getting full value, but if you

put too much debt on a business and

you’re not able to pursue a strategy to

grow it that’s consistent with the plan

we and management have developed,

we’re never going to get the company to

the point where we want it to be, which

isn’t good for any of the people involved.

MC: A lot of times, companies go into

this process and they don’t have that

long-term objective laid out so...they

oftentimes try to maximize value on the

front end as opposed to understanding

that on a longer-term basis, they’ll take

some of their value off the table during

the initial transaction. Most often they

are going to have an equity interest in

the business.

They don’t want it overleveraged. They

want to have a capital structure that will

allow them to not only complete the

initial deal but grow their business…and

that then will translate back into the

equity ownership.

Mark Chancy, vice-chairman of SunTrustBanks, and DavidStonehill, managingdirector of CarlyleGroup, joinedBloomberg Gadflycolumnist Gillian Tanfor a Q&A that offeredinsights into theopportunities and risksof seeking growththrough private-equityinvestment.

GETTING TOWORK(SHOPS)AI and Social Impact

The business goal of AI is to develop

systems that exhibit intelligence or

simulate the ability to think and thereby

transform large volumes of data into

something of value for customers.

Practical applications of AI

1. Improving logistics: At Lowe’s,

robots help customers navigate

stores; at Amazon, they enhance

warehouse efficiency

2. Marketing and

advertising: Facebook uses

machine-learning algorithms to

improve ad targeting

3. Enabling sales: Apple’s Siri and

the Amazon Echo use speech

recognition to allow customers

to order products online easily

4. Enhancing customer

service: Taco Bell’s virtual

assistant helps manage orders

through messaging

5. Predicting maintenance: Engie, a

French electric company, uses

drones and an AI-powered image

processing application to

monitor its infrastructure

AI, however, is not without its

downsides, and they need to be

recognized and managed. Dr. Howard

pointed out several instances of “AI

going rogue.”

They included face-recognition

applications that incorrectly labeled

faces associated with certain racial

demographics and voice-recognition

systems that exhibited gender bias.

OverviewAI is a digital quakethat most companiesmust embrace,understand and exploitif they wish to remaincompetitive.

Discussion led by Dr.Ayanna Howard,Professor, Linda J. andMark C. SmithEndowed Chair inBioengineering in theSchool of Electricaland ComputerEngineering, GeorgiaInstitute of Technology

Proudly sponsored byHitachi

‘Where does the AI in the search engine get itsinformation or mores?’– Adam Pertman, President & CEO, Myriad Strategic Partners

‘It's the data...it's learning from us. We're biased andso the learning algorithms are just showing that bias.’–Dr. Ayanna Howard

Key Takeaways:Garbage In = Garbage Out

Machine Bias Reflects Human Bias

Steps and strategies businesses could

deploy for the successful adoption of AI

include:

• Get familiar with AI and identify

the problems they want AI to

solve

• Prioritize value and then assess

the potential business and

financial value of the various

possible AI implementations

identified

• Bring in experts and set up a

pilot project to develop, deploy,

and test a MVP

• Implement strategies to identify

unintended consequences and

value of the AI system by:

-Encourage participation from

“customers” in the design

process

-Encourage the formation of

multidisciplinary teams, include

those who have expertise in

recognizing bias

-Having AI systems articulate

their reasoning process when

making decisions (e.g.,

“Explainable AI”)

-Incorporating case-based

reasoning approaches such that

concrete examples are collected

to train on positive and negative

outcomes of bias

Artificial Intelligence is certainly

prominent in the minds of business

leaders. Discussing the impacts that AI

can have on society drew many leaders

to the conclusion that AI still needs

human oversight. Applying moral or

political correctness to data is a

consideration that AI is unable to

provide today. The reasoning for this is

that humans apply their bias every day

to the data that is posted, shared and

reviewed which in turn creates a bias in

AI. Human intervention is still needed

today to prevent adverse impacts.

AI can have a huge impact in healthcare.

Healthcare is generating massive

amounts of data and introducing new

technologies such as genomics, digital

pathologies and clinical decision

support. Our expectation of physicians

to be able to sift through family history,

patient history, genomic details, lifestyle

impacts and socioeconomic factors

becomes an unmanageable task.

However the use of AI can help find

similar cohorts of patients, determine

best treatment paths and the resulting

outcomes. Precise intervention within

the care cycle still eludes even the most

data rich disease management and care

coordination or patient care programs in

existence today. To an even larger

degree, artificial intelligence must help

caregivers anticipate and/or find these

direct intervention points such that their

efforts have the maximum impact.

Hitachi believes in collaboration with its

partners and customers to better

understand the challenges society is

facing and how best can we address

these challenges with our social

innovation business. Whether it is

analysis of big data healthcare

information or ensuring power grids are

efficient and effective, Hitachi continues

to work towards solutions that will

positively impact society. Being a part of

the Bloomberg Breakaway Summit

enables Hitachi to reach key leaders

that can influence how industry reacts

to AI and respond appropriately.

Letter from David Wilson of Hitachi Healthcare Americas

GETTING TOWORK(SHOPS)The Digital CEO

From strategy to marketing to

organization to leadership, executives

must unlearn old mental models that are

outdated or obsolete in order to

embrace fully the new logic of value

creation.

In a networked economy, growth shifts

from the incremental to the

exponential. The old model is eking out

10% growth. The new model is shooting

the moon – tenfold growth.

For example, companies like Google,

Uber, Airbnb, and Facebook look

beyond controlling the pipe that delivers

a product and instead build platforms

OverviewEvery company andindustry is threatenedby digital disruption –both competitors withgame-changingbusiness models andcustomers empoweredby new technologies.The first thing CEOsmust do to be effectivein confronting digitaltransformation is tochange the way theythink.

Discussion led by MarkBonchek, chiefepiphany officer ofSHIFT Thinking

Proudly sponsored byZebra Technologies

Key Takeaways:1. We have to unlearn the old ways in order to learn new things and move forward

2. Stop to think about how you're thinking about transformation. Do you know where you’re going?

3. Recognize there are "co-creators" -- from Guttenberg to Zuckerberg, it's rarely one person with all the knowledge to get us to that nextlevel. We have to co-create to co-exist

4. CEOs need to learn how to take a backseat in some instances. It’s like a dinner party: The host’s job to get everyone acquainted but thenstep back as guests chat and network

that enable others to create value

through ecosystems of customers,

suppliers, and partners.

While the world has become many-to-

many, lots of companies still operate

with a one-to-many mindset. They treat

customers as consumers even when

they want to be co-creators.

CEOs need to unlearn the push model

of marketing and explore alternatives.

For example, instead of using

relationships to drive transactions, build

brand orbits and embed transactions in

relationships. Instead of customers

being consumers, relate to them in a

variety of roles. Beyond delivering a

value proposition, perhaps fulfill a

shared purpose.

'It feels good to have...lots of engagement [with customers], but at what point do you really listen...and have themhave ownership in your company?'-Kara Goldin, Founder and CEO, hint Inc.

'The challenge is that you have built such a loyal following and the brand is so well defined, it's really hard to let goof that. And how do you start to turn that over. Something to watch out for: the stronger your brand identity...theharder it sometimes is to let the customers into the culture.'-Mark Bonchek

To transform what we do, we first must

transform how we think. To transform

as a “Digital CEO”, we all must think in

new ways about intelligence,

connectivity and visibility, all powered by

real-time insights. The growth of

Internet of Things (IoT), mobility, and

cloud computing will continue to push

digital transformation forward,

equipping companies of all sizes with

data-driven intelligence to improve

employee productivity and enhance the

customer experience.

With IoT solutions, we may soon see the

day when a customer picks up a

sweater from a shelf and buys it right

there with a smartphone, without

waiting in a check-out line. In healthcare,

wearables and sensors automatically

transmitting health data directly to

doctors will eliminate the need to

manually enter the information. From a

manufacturing perspective and with the

rise of 3D printers, we’ll soon live in a

world where a customer can order an

item, and the delivery truck prints that

item as it’s driving to the customer’s

home.

Businesses globally will be dynamically

streaming data to their workforces in

real time. You’ll be able to run your

operation at the speed you can collect

data. You’ll make decisions in real time.

You’ll have visibility into what is

happening as it happens and react in

real time.

The new reality is that access to real-

time data – about people, processes

and devices through sensors connected

to the internet – will revolutionize the

way we interact with each other and our

world.

Zebra is proud to be part of this new

reality with a solutions portfolio,

including enterprise-grade mobile

computers, printers, scanners, software,

services and more, that helps

businesses sense what’s happening,

analyze the data and act on the

information to make smarter decisions.

We call this Enterprise Asset

Intelligence, and it will help your

business win in today’s marketplace.

Letter from Zebra CEO, Anders Gustafsson

GETTING TOWORK(SHOPS)Leveraging the Finance Department for Growth

Effective strategic execution needs, first and

foremost, a performance-based culture in which

transparency and accountability are the norm, data is

trusted and relied upon, and everyone in the

organization is aligned with the mission.

As the keeper of the metrics and measures, finance

understands the value of data integrity and is good at

“getting stuff done.” This makes the department the

de-facto driving force for ensuring that critical

initiatives are completed in accordance with the

timeline established.

Effective execution of strategy requires:

• Communicating aims to middle managers/line

workers

• Defining success

• Allocating resources

• Aligning incentives

• Being transparent and accountable

In addition to creating a performance-based culture,

companies need to look beyond the typical financial

Key Performance Indicators (KPIs).

Overview:Too often, the financedepartment is thought of as onlyabout financial controls andraising capital. But while it’s truethat its critical functions are toensure accurate reporting andpreserve capital and assets, thefinance department’s strategicvalue is often overlooked. CFOsand their teams can and shouldpartner with CEOs when itcomes to developing, and moreimportantly, executing strategy.

Discussion led by Lisa Kaplowitz,Assistant Professor ofProfessional Practice, RutgersBusiness School

Key Takeaways:1. Remain focused on its strategy

2. Determine critical initiatives to focus company time and resources

3. Communicate initiatives to all levels of the company

4. Measure initiatives against pre-determined measures

Interactive Poll: Our company'sexecutive team/senior leadershipmeets regularly to reviewprogress on the strategic plan.

Yes 60%No 40%

Within each category, there are critical initiatives for

which teams and individuals are held accountable.

Each initiative has a timeline, a predetermined target

value of success, and a direct causal relationship to

the company strategy. By creating this link,

employees at all levels quickly understand where to

focus their time and can understand the impact their

daily work has on the overall company.

To further motivate employees, it is important to

create an incentive compensation structure that is

aligned with the execution of the company’s strategy.

Employees should have their own personal Balance

Scorecards, focused on achieving individual targets,

which then serve as the basis for incentive

compensation.

For the personal Balanced Scorecard to be most

effective, the employee needs to buy into the target

measures and believe that it is within his/her control

to achieve them. By linking compensation to hitting

targets, the company is communicating to employees

at all levels that success is dependent on the

achievement of each individual.

Critical Path to Strategic Alignment& Execution

Source: Lisa Kaplowitz, Assistant Professor of Professional

Practice, Rutgers Business School

‘What is the difference between a dashboard and a KPI?’– Jonathan Bostock, COO, Big Ass Solutions

‘A KPI a lot of times is not linked to the ultimate strategy of the company. It doesn't create the change orimprovement. A dashboard is a compilation of your KPIs and your balanced scorecard.’– Lisa Kaplowitz

GETTING TOWORK(SHOPS)These Kids Today: Strategies for a New

Workforce

But Millennials are just one component

of understanding individuals, teams and

clients.

Key to building intergenerational

effectiveness is having a grasp of the

skill levels and motivations of the three

main blocks of current employees,

grouped together by birth years.

Baby Boomers 1946-1963

Gen Xers 1964-1979

Millennials 1980-1999

Understanding generational differences

will have a significant impact on how

executives define and react to

disruption; how they identify the next

crop of leaders; and how they ferret out

Millennial talent that will be an asset in

selling to the company’s demographic.

The discussion centered on survey

results of Millennials conducted by

Resultance, Inc. and interactive polling

of workshop participants.

So what exactly does this generation –

frequently characterized as entitled and

difficult – want?

‘You ignore therelationship betweenBoomer Parents andtheir Millennial kids atyour peril. They're inconstant communicationand contact, about fiveto eight times a daytexting back and forth.'– Anna Liotta

Overview:Discussion led by AnnaLiotta, Resultance CEO

With some 45 percentof U.S. jobs now heldby Millennials, it isessential forexecutives to knowhow to handle a rapidlychanging workforcewith different talentsand priorities thanprevious and latergenerations.

Key Takeaways:1. Millennials value compensation highly. If being wooed by more than one employer, they would by a wide margin

(78.13%) choose the company with the best salary and benefits

2. Millennials are team players. Again by a significant margin (78.13%), they see the most important personal attribute as

being collaborative. And more than 60% said the most important quality for business success is being a team player

3. Millennials have standards. The top three attributes they thought an employer would expect were: being coachable

(54.69%); a good attitude (53.13%); and a solid work ethic (51.56%)

4. Millennials need to find their work fulfilling. More than 76% said not believing in their work would be the top reason for

leaving

Interactive Polling: When offering a job to a universitygraduate which element do you believe were mostimportant to having them choose your company?

Office space/locationRobust training programSalary/BenefitsJob securityPromise of a fast promotionOther

45% of workshop participants said it was the promiseof a fast promotion, while only 18% of Millennialspreviously polled agreed. A whopping 78% ofMillennials were most concerned about salary andbenefits.

'These are the Millennials just coming out ofcollege...This is a shift because now we're seeing theend of the Millennial generation. We're seeing moreGen Xer parents with these kids. And Gen Xer parentshave more of a conversation about finances andworrying about how are we going to afford thisbecause these kids are post-recession. So they'recoming out and having a stronger conversation aboutsalary and benefits.'– Anna Liotta

Mark Your CalendarPlease join us for the third annual Breakaway

Summit on May 22-23, 2018 in New York City.

More details to come.

Thank you for reading

Cookies Terms Privacy P O W E R E D B Y