CapH_WesternDigital_V1

0:07

S… Speaker 1 (CapH_WesternDigital_V1)

Welcome back to another episode of Capital H. I'm joined today by Katie Watson, the CHRO at Western Digital. I'm really excited to dig into how she is helping lead a company that's been around for 55 years, known for innovation and really leading through technological inflection points into the age of AI and really doing that with a grounding on being a people-centered organization.

0:31

S… Speaker 1 (CapH_WesternDigital_V1)

So, Katie, thank you for joining us on Capital H and share with folks a little bit about, you joined Western Digital at an interesting moment in time for the company history, right? The business was separating. So, share a little bit about what drew you to the company and what it's been like in your first year as the CHRO.

0:47

S… Speaker 2 (CapH_WesternDigital_V1)

Yeah, thank you, first of all, for having me on today. Really happy to be here. I joined Western Digital 18 months ago. As you said, the company was going through a really key inflection point.

0:57

S… Speaker 2 (CapH_WesternDigital_V1)

We were going from being one public company to divesting our flash business and so therefore becoming two public companies. And we knew that the former CEO and former head of HR were both going to that side of the business, what we call flash.

1:14

S… Speaker 2 (CapH_WesternDigital_V1)

And so, Western Digital, or as we now call WD, was going to be singularly focused on hard disk drives.

1:22

S… Speaker 2 (CapH_WesternDigital_V1)

And it is a company that has been around for 55 years. And we're honestly one of just a few tech companies that have been around for over 50 years.

1:31

S… Speaker 2 (CapH_WesternDigital_V1)

And that is one of the two things that drew me. It was this unique opportunity of how do you take a long-established company that has truly just been an icon in Silicon Valley, just core to the technology infrastructure, but help us pivot and continue to innovate in a different way so we hopefully are around another 55 years.

1:54

S… Speaker 2 (CapH_WesternDigital_V1)

And when I first met Irving, who is the CEO, that was one of the key things we talked about, is how do you take this well-established company, create the right culture, the right business environment, and make sure that then we innovate and deliver to our customers so that way we can be one of the few tech companies who survive 100 years.

2:15

S… Speaker 2 (CapH_WesternDigital_V1)

And that felt really exciting. The second thing was Irving himself. He's a really inspirational leader. I've been a CHRO twice before this is my third time.

2:25

S… Speaker 2 (CapH_WesternDigital_V1)

And it's just become really clear to me that who I report into and the leadership team I'm on is of critical importance.

2:32

S… Speaker 2 (CapH_WesternDigital_V1)

And what I liked about Irving is he was very visionary. He had a strong sense of where he wanted to take the business and was willing to make tough decisions, but he also really put employees at the center.

2:42

S… Speaker 2 (CapH_WesternDigital_V1)

And I think that's a rare combination where you are clear strategically and will make trade-offs, which at times are difficult, but you also really ground in on what do employees need and what matters to them.

2:58

S… Speaker 2 (CapH_WesternDigital_V1)

And for me, that just felt like a perfect combination.

3:00

S… Speaker 1 (CapH_WesternDigital_V1)

I think everything you just shared, I have to imagine folks are going to listen and say, I want to be in that environment, right?

3:07

S… Speaker 1 (CapH_WesternDigital_V1)

Because I think in this moment of time where people are facing uncertainty, whether on a macro level or an individual level, having an inspirational leader who can set a vision,

3:19

S… Speaker 1 (CapH_WesternDigital_V1)

and does so in a way that's showing up with an understanding of grounded on people, right?

3:24

S… Speaker 1 (CapH_WesternDigital_V1)

You feel like I have a vision that inspires me and I know that the organization is going to take care of me and look out for me.

3:31

S… Speaker 1 (CapH_WesternDigital_V1)

So Katie, I would love to hear, obviously that was like what drew you to it.

3:35

S… Speaker 1 (CapH_WesternDigital_V1)

But how's the first 18 months been?

3:37

S… Speaker 1 (CapH_WesternDigital_V1)

Like what are some of the things as you settled into role that you then said, okay, as the CHRO, there's things I have to do for my function in support of the enterprise.

3:46

S… Speaker 1 (CapH_WesternDigital_V1)

And then there's things I have to do with how I show up for the workforce and my peers on the C-suite.

3:50

S… Speaker 1 (CapH_WesternDigital_V1)

So where did you kind of start with that as the backdrop for what drew you to the company?

3:54

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah.

3:54

S… Speaker 2 (CapH_WesternDigital_V1)

So in my 18 months, the first three months, we're sort of preparing for the split.

3:59

S… Speaker 2 (CapH_WesternDigital_V1)

And that was a unique chance to go and visit as many of our sites as I could because I wasn't yet in role.

4:06

S… Speaker 2 (CapH_WesternDigital_V1)

So the previous head of HR continued to run the combined organization until we split.

4:11

S… Speaker 2 (CapH_WesternDigital_V1)

So I went out and visited as many of our countries, as many of our affiliates as I could.

4:16

S… Speaker 2 (CapH_WesternDigital_V1)

So I really could anchor in on what made WD special and unique.

4:20

S… Speaker 2 (CapH_WesternDigital_V1)

Like I talked to folks in Thailand and Malaysia and Japan, I mean, all around the world.

4:25

S… Speaker 2 (CapH_WesternDigital_V1)

And that was really helpful as I then set out to think about what should HR deliver.

4:31

S… Speaker 2 (CapH_WesternDigital_V1)

Then it became clear we had to rebuild the HR function.

4:34

S… Speaker 2 (CapH_WesternDigital_V1)

And that was important because for all of G&A, half the employees went to the flash business and half stayed on the hard disk drive business.

4:42

S… Speaker 2 (CapH_WesternDigital_V1)

So we basically had to rebuild a whole HR leadership team.

4:46

S… Speaker 2 (CapH_WesternDigital_V1)

We had to look at our operating model and what was needed for this new organization.

4:52

S… Speaker 2 (CapH_WesternDigital_V1)

In March then of last year, we officially split.

4:55

S… Speaker 2 (CapH_WesternDigital_V1)

It was actually the end of February, but we'll say March.

4:57

S… Speaker 2 (CapH_WesternDigital_V1)

That became a really fun gal.

4:59

S… Speaker 1 (CapH_WesternDigital_V1)

That became a really fun gal.

4:59

S… Speaker 1 (CapH_WesternDigital_V1)

That became a really fun gal.

5:00

S… Speaker 1 (CapH_WesternDigital_V1)

moment for this 55-year-old company. It was almost like we were kind of reborn. It was more than I

5:06

S… Speaker 1 (CapH_WesternDigital_V1)

expected. And Irving laid out a new company strategy. And then I got to lay out a people

5:13

S… Speaker 1 (CapH_WesternDigital_V1)

strategy with that too, including saying we needed to change our culture and our core values.

5:18

S… Speaker 1 (CapH_WesternDigital_V1)

And so we very soon thereafter that did a series of focus groups around the globe,

5:24

S… Speaker 1 (CapH_WesternDigital_V1)

decided what would be our new core values, our new vision and mission, and then spent quite a

5:29

S… Speaker 1 (CapH_WesternDigital_V1)

few months after that rolling it out to everyone and trying to say to folks, we're a company that

5:34

S… Speaker 1 (CapH_WesternDigital_V1)

grew through acquisitions and say, let's stop worrying about if you came from IBM or Hitachi

5:41

S… Speaker 1 (CapH_WesternDigital_V1)

or WD, because those were our main acquisition companies. And instead say, this is a new point

5:47

S… Speaker 1 (CapH_WesternDigital_V1)

in time for our 41,000 and we get to go forward from here. So really fun. Yeah. Well, and I can

5:52

S… Speaker 2 (CapH_WesternDigital_V1)

imagine for a company with the rich history of 55 years, to your point, being able to start fresh,

6:00

S… Speaker 2 (CapH_WesternDigital_V1)

so to speak, sets the groundwork for what the next 55 years might look like, to your point,

6:04

S… Speaker 2 (CapH_WesternDigital_V1)

right? To become a technology company or any industry company that's around for 100 years

6:08

S… Speaker 2 (CapH_WesternDigital_V1)

is a tremendous aspiration. So Katie, one of the things that you've had to navigate in this moment

6:14

S… Speaker 2 (CapH_WesternDigital_V1)

as well, of course, is uniquely in kind of semiconductor hard disk space is part of that broader technology

6:23

S… Speaker 2 (CapH_WesternDigital_V1)

ecosystem that's kind of navigating through this topic of AI, right? AI and automation. And I think

6:30

S… Speaker 2 (CapH_WesternDigital_V1)

what's also unique about the business, right, is the mix of knowledge workers and kind of manufacturing

6:37

S… Speaker 2 (CapH_WesternDigital_V1)

background, because there's a history of what I'll call automation, right? Things in factories and

6:44

S… Speaker 2 (CapH_WesternDigital_V1)

evolving jobs to do things differently as the result of technology. And how you then take the company

6:50

S… Speaker 2 (CapH_WesternDigital_V1)

through the next evolution of that, right, into other roles. So can you share a little bit about

6:55

S… Speaker 2 (CapH_WesternDigital_V1)

what you've said is it's really critical to define like what must remain human, right? And what do we

7:00

S… Speaker 2 (CapH_WesternDigital_V1)

want the humans in our workforce to do that are beneficial to the humans that are our customers?

7:05

S… Speaker 2 (CapH_WesternDigital_V1)

How are you kind of leading that kind of mind shift or that approach within the organization?

7:10

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah, it's funny. I think back 18 months, and we weren't even talking about AI. And I feel like now

7:15

S… Speaker 1 (CapH_WesternDigital_V1)

it is all consuming. That is what I wake up thinking about. It's what I go to bed thinking about.

7:20

S… Speaker 1 (CapH_WesternDigital_V1)

So a couple things. So first of all, WD is directly impacted by the AI boom, because that influences

7:29

S… Speaker 1 (CapH_WesternDigital_V1)

our customers and their need for hard disk drives. So we talk about it constantly as a company,

7:34

S… Speaker 1 (CapH_WesternDigital_V1)

because it is not just what are we doing within our organization. It is truly shaping our customer

7:40

S… Speaker 1 (CapH_WesternDigital_V1)

ecosystem, our product demand. It gives us visibility out three years from now in terms of what we need

7:46

S… Speaker 1 (CapH_WesternDigital_V1)

to be delivering. So that is both wonderful and daunting because it's moving so fast. On the employee

7:53

S… Speaker 1 (CapH_WesternDigital_V1)

front, then, it's how do we decide what we want to do with our workforce to best optimize AI? But as you

8:00

S… Speaker 1 (CapH_WesternDigital_V1)

said, my core tenant is how do you not lose the people? How do you not lose what has uniquely

8:07

S… Speaker 1 (CapH_WesternDigital_V1)

made them join and stay at WD for 50 years in some cases? How do you not lose that purpose of their

8:15

S… Speaker 1 (CapH_WesternDigital_V1)

work and their meaning that they get out of it? And so I'm excited to be on the journey with our CIO

8:21

S… Speaker 1 (CapH_WesternDigital_V1)

and to think about, you know, as we consider technology, how do you make sure that you first consider

8:27

S… Speaker 1 (CapH_WesternDigital_V1)

what's the outcome you're trying to achieve? And specifically, then, where do you keep employees

8:33

S… Speaker 1 (CapH_WesternDigital_V1)

in that loop? Because it would be easy to just say, I can go buy off-the-shelf AI, I can use agents,

8:39

S… Speaker 1 (CapH_WesternDigital_V1)

and it will take away a lot of the work. It could be quality work. It may not be. But I would argue

8:45

S… Speaker 1 (CapH_WesternDigital_V1)

you also then have disenfranchised an entire workforce if you weren't intentional on that.

8:51

S… Speaker 1 (CapH_WesternDigital_V1)

What you said, Kyle, is really important. It is different for manufacturing employees than knowledge

8:55

S… Speaker 1 (CapH_WesternDigital_V1)

workers, no question. And we have been using AI and just broad-based automation and manufacturing

9:02

S… Speaker 1 (CapH_WesternDigital_V1)

for many years. One of our factories in Thailand is what we call Lights Out. So that truly means

9:08

S… Speaker 1 (CapH_WesternDigital_V1)

there's no employees in parts of the factory. And those employees instead, over a multi-year journey,

9:16

S… Speaker 1 (CapH_WesternDigital_V1)

were upskilled and learned how to take on new, more advanced responsibilities. And so now they're

9:22

S… Speaker 1 (CapH_WesternDigital_V1)

overseeing the machines that do it. I think what was also unique as I visit our site in Thailand is

9:29

S… Speaker 1 (CapH_WesternDigital_V1)

they talk about how they decided where to use automation. And I think what was powerful is they

9:33

S… Speaker 1 (CapH_WesternDigital_V1)

asked employees. They didn't just sit from the top and decide. And so imagine being in a factory 12 hours

9:41

S… Speaker 1 (CapH_WesternDigital_V1)

a day. You can imagine that's very physically demanding. And so as maybe anticipated, people said,

9:48

S… Speaker 1 (CapH_WesternDigital_V1)

hey, I don't want to have to lift and pick up things all the time. I don't want to have to bend

9:53

S… Speaker 1 (CapH_WesternDigital_V1)

frequently as I scan all these hard disk drives. I mean, millions of hard disk drives. And so they

10:00

S… Speaker 2 (CapH_WesternDigital_V1)

said, wow, this is a perfect place for a robot. And there was no such robot. So then they worked

10:04

S… Speaker 2 (CapH_WesternDigital_V1)

with our engineers in Japan and they built this robot. So when I visit that, I feel deep sense of

10:10

S… Speaker 2 (CapH_WesternDigital_V1)

pride. And pride because here it came from employees. They were invested in the decision.

10:16

S… Speaker 2 (CapH_WesternDigital_V1)

It made their lives better. And the company really did invest in upskilling them. And so

10:22

S… Speaker 2 (CapH_WesternDigital_V1)

you have thousands of workers in Thailand who have a different skill set, a different responsibility

10:27

S… Speaker 2 (CapH_WesternDigital_V1)

than maybe they thought possible. So in the knowledge workers, we're obviously just getting

10:33

S… Speaker 1 (CapH_WesternDigital_V1)

started. Well, and Katie, what I think is unique about that story, and I know there's some other

10:40

S… Speaker 1 (CapH_WesternDigital_V1)

companies who've gone through similar things, if they've got that portion of their business with

10:44

S… Speaker 1 (CapH_WesternDigital_V1)

a manufacturing footprint or other, it gives you a real example to point to that says, we can and we

10:52

S… Speaker 1 (CapH_WesternDigital_V1)

will navigate you, the workforce, through this moment. Look over here. We've done it before,

10:57

S… Speaker 1 (CapH_WesternDigital_V1)

right? Because there's plenty of companies who say upskilling or reskilling is a priority,

11:03

S… Speaker 1 (CapH_WesternDigital_V1)

and then they don't follow through with the action, right? Whether because they don't know how

11:06

S… Speaker 1 (CapH_WesternDigital_V1)

or because they just end up saying they say it and then they don't do it, whatever the reasons may be.

11:12

S… Speaker 1 (CapH_WesternDigital_V1)

And so what's powerful for you all is that you can point to an example to the knowledge workers and

11:16

S… Speaker 1 (CapH_WesternDigital_V1)

say, you may be anxious with what's happening. By the way, we're all still figuring out what's

11:21

S… Speaker 1 (CapH_WesternDigital_V1)

happening with these new AI and automation capabilities in the knowledge worker space,

11:25

S… Speaker 1 (CapH_WesternDigital_V1)

but we've done it before. Let's do it together. I think the second thing from your story as well was,

11:32

S… Speaker 1 (CapH_WesternDigital_V1)

how do you engage the workforce? I've heard very few leaders who actually start with saying to the

11:40

S… Speaker 1 (CapH_WesternDigital_V1)

workforce, give me your pain points, and that's where we'll point these AI and automation capabilities

11:44

S… Speaker 1 (CapH_WesternDigital_V1)

at first. Instead, it's almost like, here's the technology I've bought. What can it do? Those may match,

11:50

S… Speaker 1 (CapH_WesternDigital_V1)

right, the technology capabilities and the pain points, but they may not, especially if you're

11:54

S… Speaker 1 (CapH_WesternDigital_V1)

not intentional about it. And so you've got some powerful lessons learned that I think others can

11:58

S… Speaker 1 (CapH_WesternDigital_V1)

take away, even if they're not in a manufacturing environment, right? Involve the employees, figure out

12:04

S… Speaker 1 (CapH_WesternDigital_V1)

their pain points, fix that first, and help them see what the upskilling journey looks like.

12:09

S… Speaker 2 (CapH_WesternDigital_V1)

Yeah, I think that is so important. It is very easy to say, oh, this technology is available,

12:14

S… Speaker 2 (CapH_WesternDigital_V1)

let me just add it. But then you're doing something to people versus engaging them in the process and

12:21

S… Speaker 2 (CapH_WesternDigital_V1)

having them own it. Just last week, we met with all of our VPs, so the top 100 leaders in the company,

12:27

S… Speaker 2 (CapH_WesternDigital_V1)

and we did exactly that. We said, what are some of the key pain points across the business?

12:32

S… Speaker 2 (CapH_WesternDigital_V1)

And we spent almost a half day doing a deep dive. Some of them were in core engineering. Some of them

12:39

S… Speaker 2 (CapH_WesternDigital_V1)

were in the sales and go to market. And we said, let's really dissect this. And from that, then

12:44

S… Speaker 2 (CapH_WesternDigital_V1)

we're deciding what are two use cases or lighthouses, lighthouse use cases across the company that then

12:51

S… Speaker 2 (CapH_WesternDigital_V1)

we're going to put money and people behind and try to tackle those in part using AI, in part using

12:57

S… Speaker 2 (CapH_WesternDigital_V1)

process redesign. And so once again, hopefully we found the right balance of asking people what

13:03

S… Speaker 1 (CapH_WesternDigital_V1)

matters most before we start. And Katie, I'd like to dig into part of what you just said,

13:09

S… Speaker 1 (CapH_WesternDigital_V1)

which is process redesign, right? This is not simply a, here's the tools. The tools will help

13:14

S… Speaker 1 (CapH_WesternDigital_V1)

with your pain point. The process or the workflow may change. Then the role of the person might change.

13:20

S… Speaker 1 (CapH_WesternDigital_V1)

So share a little bit about how you're helping people understand that journey and laying out

13:25

S… Speaker 1 (CapH_WesternDigital_V1)

kind of, it's the combo of the tool. It's the combo of the process redesign. Your role and

13:31

S… Speaker 1 (CapH_WesternDigital_V1)

responsibilities may change. And here's how we want your feedback along the way to design whatever

13:36

S… Speaker 2 (CapH_WesternDigital_V1)

comes next. Yeah, I think for WD in particular, because we've been around 55 years, we really

13:42

S… Speaker 2 (CapH_WesternDigital_V1)

have to say, start from scratch. I mean, we have so many processes that are legacy and have built up

13:49

S… Speaker 2 (CapH_WesternDigital_V1)

from different acquisitions. If we try to just add technology to that, it will be incredibly

13:55

S… Speaker 2 (CapH_WesternDigital_V1)

ineffective. We'll have this fancy AI that does terrible work. So in order of operations, I say,

14:02

S… Speaker 2 (CapH_WesternDigital_V1)

think about the people, think about the outcome, and then you worry about the tech. That's the third.

14:08

S… Speaker 2 (CapH_WesternDigital_V1)

And you know, it's funny, I worried that people would struggle with that idea. And yet just last

14:13

S… Speaker 2 (CapH_WesternDigital_V1)

week when we asked the VPs, it was sort of liberating to folks to say, it's a blank sheet of paper.

14:19

S… Speaker 2 (CapH_WesternDigital_V1)

Design, what do you want our go-to-market process to be? Pretend we don't have anything today.

14:24

S… Speaker 2 (CapH_WesternDigital_V1)

I think they liked it. Now, when we get into doing some of that tough work, maybe that's when the

14:29

S… Speaker 2 (CapH_WesternDigital_V1)

rubber meets the road because people say, but we've always done it this way. I think it's somewhat

14:34

S… Speaker 2 (CapH_WesternDigital_V1)

liberating, honestly. It does take more time, way more time, but I think you'll get a better outcome.

14:40

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah. Well, Katie, the fact that people felt liberated gets back to some of what you've noted

14:46

S… Speaker 1 (CapH_WesternDigital_V1)

around the culture, the mission, the vision, the values, kind of some of those things that

14:50

S… Speaker 1 (CapH_WesternDigital_V1)

you all have been doing as an independent company or as a separate company. So can you share a little

14:56

S… Speaker 1 (CapH_WesternDigital_V1)

bit about how you all are being deliberate and whether...

15:00

S… Speaker 2 (CapH_WesternDigital_V1)

it's creating that psychologically safe space or creating the trust, right, for people to

15:05

S… Speaker 1 (CapH_WesternDigital_V1)

engage?

15:05

S… Speaker 2 (CapH_WesternDigital_V1)

Like, are there specific things that you as a C-suite collectively have to make sure you're

15:10

S… Speaker 2 (CapH_WesternDigital_V1)

aligned on to say, when we show up in front of the VPs, we want to show up this way so

15:15

S… Speaker 2 (CapH_WesternDigital_V1)

they engage in doing kind of the work and delivering the outcomes that you all are hoping

15:19

S… Speaker 2 (CapH_WesternDigital_V1)

for as a leadership team?

15:20

S… Speaker 3 (CapH_WesternDigital_V1)

I do think that's really important.

15:22

S… Speaker 3 (CapH_WesternDigital_V1)

People are obviously afraid of AI.

15:25

S… Speaker 3 (CapH_WesternDigital_V1)

Our headquarters is in Silicon Valley.

15:27

S… Speaker 3 (CapH_WesternDigital_V1)

You cannot turn on the news and not see the notices about the tens of thousands of people

15:32

S… Speaker 3 (CapH_WesternDigital_V1)

being let go.

15:34

S… Speaker 3 (CapH_WesternDigital_V1)

So I do think we have to be clear with employees that we will be going through a transformation.

15:39

S… Speaker 3 (CapH_WesternDigital_V1)

I think you have to be honest.

15:40

S… Speaker 3 (CapH_WesternDigital_V1)

I think you have to acknowledge that we need their help as part of this.

15:44

S… Speaker 3 (CapH_WesternDigital_V1)

We have to be truthful that we are committed to upskilling them and creating a culture where

15:49

S… Speaker 3 (CapH_WesternDigital_V1)

they can contribute to it and hopefully they learn and get better.

15:53

S… Speaker 3 (CapH_WesternDigital_V1)

But you also have to say, yes, there will be shifts in work.

15:57

S… Speaker 3 (CapH_WesternDigital_V1)

And hopefully we come on this journey together, but maybe some people ultimately do decide

16:02

S… Speaker 3 (CapH_WesternDigital_V1)

it's not right for them or we make that decision.

16:05

S… Speaker 3 (CapH_WesternDigital_V1)

I think there is a lot of fear and we have a long tenured workforce.

16:09

S… Speaker 3 (CapH_WesternDigital_V1)

So the average employee has been at WD 14 years.

16:13

S… Speaker 3 (CapH_WesternDigital_V1)

And if I go to certain countries like Japan, it's closer to 25 years.

16:17

S… Speaker 3 (CapH_WesternDigital_V1)

That is very different than other parts of Silicon Valley.

16:21

S… Speaker 3 (CapH_WesternDigital_V1)

And so I think we just have to give more time for people to feel that they can express their

16:28

S… Speaker 3 (CapH_WesternDigital_V1)

concerns, to feel that they are brought along on the journey, and to be honest, even see

16:35

S… Speaker 3 (CapH_WesternDigital_V1)

what's in it for them.

16:36

S… Speaker 3 (CapH_WesternDigital_V1)

If I could give one example, I actually had a kind of a nice breakthrough the other day

16:40

S… Speaker 3 (CapH_WesternDigital_V1)

with a really long timer who I think was pretty resistant to AI and just overall how the company

16:45

S… Speaker 1 (CapH_WesternDigital_V1)

was changing.

16:46

S… Speaker 3 (CapH_WesternDigital_V1)

And what he ultimately realized is this was a chance for him to kind of crystallize his

16:52

S… Speaker 3 (CapH_WesternDigital_V1)

own legacy.

16:53

S… Speaker 3 (CapH_WesternDigital_V1)

And that was a different way of thinking about it.

16:55

S… Speaker 3 (CapH_WesternDigital_V1)

Like for him, AI could actually almost document everything he's been doing in his 34 years.

17:00

S… Speaker 3 (CapH_WesternDigital_V1)

So then it gets passed on to the next generation.

17:03

S… Speaker 3 (CapH_WesternDigital_V1)

So he's acknowledging he's probably ready to retire soon.

17:06

S… Speaker 3 (CapH_WesternDigital_V1)

And it was like, okay, this is a total 180 for maybe how he was initially feeling like

17:11

S… Speaker 3 (CapH_WesternDigital_V1)

you're disrupting everything I've done to instead seeing it as this preserves my legacy

17:16

S… Speaker 3 (CapH_WesternDigital_V1)

and what I want this hard to strive space to know forever.

17:20

S… Speaker 2 (CapH_WesternDigital_V1)

So yeah, which gets to this framing of what is in it for the every individual, right?

17:27

S… Speaker 2 (CapH_WesternDigital_V1)

And sometimes people will do the broad sweep of, oh, well, this generation wants this or

17:31

S… Speaker 2 (CapH_WesternDigital_V1)

that, but it's everyone is different.

17:33

S… Speaker 2 (CapH_WesternDigital_V1)

Everyone's human within generations, right?

17:35

S… Speaker 2 (CapH_WesternDigital_V1)

And some person might need to know this is for my legacy.

17:39

S… Speaker 2 (CapH_WesternDigital_V1)

Some other person in the same generation and tenure might say, well, I'm just worried

17:42

S… Speaker 2 (CapH_WesternDigital_V1)

about getting to retirement and my financial well-being.

17:46

S… Speaker 2 (CapH_WesternDigital_V1)

Other end of the spectrum, early career maybe is like, I'm just starting my career in the

17:50

S… Speaker 2 (CapH_WesternDigital_V1)

midst of all this uncertainty, right?

17:52

S… Speaker 2 (CapH_WesternDigital_V1)

And so however you help navigate the right messaging for folks to get them onto the journey,

17:57

S… Speaker 2 (CapH_WesternDigital_V1)

it's huge.

17:58

S… Speaker 2 (CapH_WesternDigital_V1)

Now, Katie, amidst all this, I think when people talk about culture, it's like the way we show

18:04

S… Speaker 2 (CapH_WesternDigital_V1)

up, the way we work, the way we behave, and then there's often systems that you build

18:08

S… Speaker 2 (CapH_WesternDigital_V1)

around that.

18:09

S… Speaker 2 (CapH_WesternDigital_V1)

How are you all thinking about what this means to performance or rewards or the other things

18:14

S… Speaker 2 (CapH_WesternDigital_V1)

that help reinforce the mindset and the culture shift that you're essentially leading 40,000

18:20

S… Speaker 2 (CapH_WesternDigital_V1)

plus people through?

18:20

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah.

18:21

S… Speaker 3 (CapH_WesternDigital_V1)

So if I go back to when we introduced the new core values, and if you don't mind, I'm just

18:26

S… Speaker 3 (CapH_WesternDigital_V1)

going to share what those five core values are because it was really important.

18:29

S… Speaker 3 (CapH_WesternDigital_V1)

So we started with customers and we defined it as internal and external customers.

18:34

S… Speaker 3 (CapH_WesternDigital_V1)

So getting people to think about all the work we do is on behalf of someone else.

18:39

S… Speaker 3 (CapH_WesternDigital_V1)

And at times it's even just an internal.

18:41

S… Speaker 3 (CapH_WesternDigital_V1)

How does engineering think about that they're delivering to the operations team who has to

18:44

S… Speaker 3 (CapH_WesternDigital_V1)

make the product?

18:46

S… Speaker 3 (CapH_WesternDigital_V1)

On the other end, then we talked about innovation.

18:48

S… Speaker 3 (CapH_WesternDigital_V1)

So that's one of the key core values.

18:50

S… Speaker 3 (CapH_WesternDigital_V1)

And when we defined innovation, it was about take risks, fail fast, and learn faster.

18:56

S… Speaker 3 (CapH_WesternDigital_V1)

We also then said connection.

18:58

S… Speaker 3 (CapH_WesternDigital_V1)

So how do we connect our employees?

19:01

S… Speaker 3 (CapH_WesternDigital_V1)

And then the other two were results and excellence.

19:03

S… Speaker 3 (CapH_WesternDigital_V1)

I share that because for us, that was really then how do you shift how people are working?

19:09

S… Speaker 3 (CapH_WesternDigital_V1)

I think it's a company who's certainly innovated.

19:13

S… Speaker 3 (CapH_WesternDigital_V1)

We wouldn't be around, but we were really cautious.

19:16

S… Speaker 3 (CapH_WesternDigital_V1)

And people really, at times, I think, have been almost paralyzed with fear of if they

19:21

S… Speaker 3 (CapH_WesternDigital_V1)

do it wrong, what will be the consequences?

19:24

S… Speaker 3 (CapH_WesternDigital_V1)

And so how do we create the right processes and programs to reinforce that?

19:30

S… Speaker 4 (CapH_WesternDigital_V1)

It's hard.

19:31

S… Speaker 3 (CapH_WesternDigital_V1)

I mean, if people have been told for many years that you measure 20 times before you cut once,

19:36

S… Speaker 3 (CapH_WesternDigital_V1)

so to speak, right?

19:38

S… Speaker 3 (CapH_WesternDigital_V1)

It's hard to tell them, nope, I'm okay with failure.

19:41

S… Speaker 3 (CapH_WesternDigital_V1)

I'm okay as long as you learn from it and as long as then you pivot fast to go on to something

19:47

S… Speaker 1 (CapH_WesternDigital_V1)

else.

19:48

S… Speaker 3 (CapH_WesternDigital_V1)

I think what intentionally comes about then is we formally measure people on the core values.

19:54

S… Speaker 3 (CapH_WesternDigital_V1)

That is part of their performance review.

19:55

S… Speaker 3 (CapH_WesternDigital_V1)

We ask the leaders to call it out in different meetings, including when

20:00

S… Speaker 1 (CapH_WesternDigital_V1)

they see a failure that in my mind is actually a success. And we have to then make sure that we

20:06

S… Speaker 1 (CapH_WesternDigital_V1)

continue to then financially reward people who have done that. Not that then they think they're

20:12

S… Speaker 1 (CapH_WesternDigital_V1)

the first one to get let go if economically we have to face a downturn. So it's hard. And I think

20:18

S… Speaker 1 (CapH_WesternDigital_V1)

some of the long timers don't quite believe it yet. And in my opinion, HR can say it a lot.

20:24

S… Speaker 1 (CapH_WesternDigital_V1)

The CEO can say it, but ultimately comes down to their direct manager reinforcing it.

20:30

S… Speaker 2 (CapH_WesternDigital_V1)

Yeah, yeah. Well, and I know to your point, that gets at, I think, this longstanding question that

20:36

S… Speaker 2 (CapH_WesternDigital_V1)

many companies ask or face is, who owns culture, right? Sometimes it defaults to CH or an HR function,

20:43

S… Speaker 2 (CapH_WesternDigital_V1)

but I think most folks would truly say it is in the hands of the leadership team. And it's the

20:48

S… Speaker 2 (CapH_WesternDigital_V1)

frontline leadership team, not the executive leadership team, because those are the leaders

20:52

S… Speaker 2 (CapH_WesternDigital_V1)

showing up in front of the workers all day, every day, representing on values. Now, Katie,

20:58

S… Speaker 2 (CapH_WesternDigital_V1)

you have shared a lot of, I would say, workforce company focused, what you've done, what you've

21:06

S… Speaker 2 (CapH_WesternDigital_V1)

prioritized, how you've been navigating certain things. You also acknowledged at the beginning,

21:11

S… Speaker 2 (CapH_WesternDigital_V1)

you had to rebuild an HR team, right? Because half the folks from the prior combined company went

21:16

S… Speaker 2 (CapH_WesternDigital_V1)

with the split. So how did you think about, in that kind of moment in time, looking at trends of

21:22

S… Speaker 2 (CapH_WesternDigital_V1)

what's happening in the world of HR, capabilities you wanted to prioritize, or bets you wanted to

21:27

S… Speaker 2 (CapH_WesternDigital_V1)

make? So how did you think about kind of that side of your remit as well?

21:30

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah, I mean, it was a little daunting. It was a lot of requisitions, and we still have many. So

21:35

S… Speaker 1 (CapH_WesternDigital_V1)

if any of you listening are looking for a wonderful HR opportunity, please check out WD.

21:41

S… Speaker 1 (CapH_WesternDigital_V1)

I tried to look at what did the company need in the future versus what did they need for today?

21:47

S… Speaker 1 (CapH_WesternDigital_V1)

And because I had that first three months of going out and visiting the sites and meeting with so many

21:52

S… Speaker 1 (CapH_WesternDigital_V1)

employees, I was fortunate to then understand what was unique about WD. I had a chance to understand

21:57

S… Speaker 1 (CapH_WesternDigital_V1)

we had very long tenured employees, many of which who were considering retiring. I had a chance to

22:04

S… Speaker 1 (CapH_WesternDigital_V1)

understand that we were highly technical in a way that I maybe did not appreciate and very specialized.

22:11

S… Speaker 1 (CapH_WesternDigital_V1)

And so when I built out the team, then I could bring on people who understood that they needed

22:16

S… Speaker 1 (CapH_WesternDigital_V1)

to honor that history. They needed to honor the expertise. They also really had to create

22:22

S… Speaker 1 (CapH_WesternDigital_V1)

programs and processes that allowed us to shift. And so I brought on a new head of talent development

22:29

S… Speaker 1 (CapH_WesternDigital_V1)

inclusion, a new head of total rewards, a new head of business partners for product. And I think they

22:36

S… Speaker 1 (CapH_WesternDigital_V1)

all came in with the mindset of we've got to build and we've got to change things. Mostly, that's pretty

22:41

S… Speaker 1 (CapH_WesternDigital_V1)

fun. Building is great. And at times, it also feels pretty overwhelming. The joke is, I always say it's a

22:47

S… Speaker 1 (CapH_WesternDigital_V1)

very opportunity-rich environment. That's my fun way of saying, oh my gosh, look at what we have to do. But it's

22:53

S… Speaker 1 (CapH_WesternDigital_V1)

true. There's just a lot to do.

22:55

S… Speaker 2 (CapH_WesternDigital_V1)

Yeah. Well, and I do think the culture at the company level that you're creating probably helps with that

23:02

S… Speaker 2 (CapH_WesternDigital_V1)

opportunity-rich environment in HR because it sets the same standard of it's okay to fail. It's okay

23:08

S… Speaker 2 (CapH_WesternDigital_V1)

to learn. Let's try some new and different things. We all have whatever prior backgrounds that brought

23:13

S… Speaker 2 (CapH_WesternDigital_V1)

us to the role and those experiences. But I really like what you shared about building towards the

23:18

S… Speaker 2 (CapH_WesternDigital_V1)

future, right? Because it is too easy to get consumed with the today and then the backlog, right?

23:25

S… Speaker 2 (CapH_WesternDigital_V1)

Let alone spending time on the future. So, Katie, maybe last couple questions for you.

23:32

S… Speaker 2 (CapH_WesternDigital_V1)

You also shared, you know, you've been a chief people officer three times, right? And you've seen

23:36

S… Speaker 2 (CapH_WesternDigital_V1)

trends come and go. What would be maybe one or two things that you think folks should really be paying

23:42

S… Speaker 2 (CapH_WesternDigital_V1)

attention on as they're trying to make impact at their organizations based on how you've seen the

23:47

S… Speaker 2 (CapH_WesternDigital_V1)

world of work evolve and navigate and how the profession has evolved?

23:50

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah. Thank you for asking. Definitely a hard question. Let me say what I think has remained

23:55

S… Speaker 1 (CapH_WesternDigital_V1)

the same and then maybe what I think is different. So, number one is I think HR has to be a true

24:01

S… Speaker 1 (CapH_WesternDigital_V1)

consultative partner. I think the business is not looking to us to just give them data or share with

24:08

S… Speaker 1 (CapH_WesternDigital_V1)

them basic statistics. I think they really want us to help them collectively solve those problems.

24:15

S… Speaker 1 (CapH_WesternDigital_V1)

In HR, we've always been talking about how to have the strategic HR business partner, how to have

24:19

S… Speaker 1 (CapH_WesternDigital_V1)

that forward-facing person who really is there helping shape where the business goes.

24:25

S… Speaker 1 (CapH_WesternDigital_V1)

I don't think that's changed. And if anything, because those leaders themselves are facing so

24:31

S… Speaker 1 (CapH_WesternDigital_V1)

much outside pressure due to AI, we really have to be there with them arm in arm as they solve those

24:37

S… Speaker 1 (CapH_WesternDigital_V1)

important workforce decisions. What I think maybe is different is HR more than ever really has to be

24:43

S… Speaker 1 (CapH_WesternDigital_V1)

bringing true kind of empathy and care. And I think we've always said that, but I think now we have to

24:49

S… Speaker 1 (CapH_WesternDigital_V1)

acknowledge that all of our employees are more fearful than they've ever been. And so how do we show up in

24:55

S… Speaker 1 (CapH_WesternDigital_V1)

a really human way? How do we acknowledge we ourselves are going to use AI?

25:00

S… Speaker 2 (CapH_WesternDigital_V1)

But how do we do it in a way that then we still allow our own HR team to have the direct contact with employees, direct contact with the leaders?

25:08

S… Speaker 2 (CapH_WesternDigital_V1)

We have to source differently and staff differently to do that.

25:12

S… Speaker 2 (CapH_WesternDigital_V1)

But I think that's key because we have a different workforce sphere than maybe we had over the last 20, 30 years.

25:18

S… Speaker 2 (CapH_WesternDigital_V1)

We were talking a lot about how the broader organization needs to transform for AI.

25:24

S… Speaker 2 (CapH_WesternDigital_V1)

I think it's really important that we in our own function in HR have to transform as well.

25:29

S… Speaker 2 (CapH_WesternDigital_V1)

And it's interesting because we were saying, or I was sharing with you, that WD is trying to create risk-taking and be open to failure.

25:37

S… Speaker 2 (CapH_WesternDigital_V1)

I think even within our own team, that can be hard at times.

25:41

S… Speaker 2 (CapH_WesternDigital_V1)

We have been the steady support of the organization.

25:44

S… Speaker 2 (CapH_WesternDigital_V1)

We have been the ones that are there when employees need us, when leaders want a confidant.

25:50

S… Speaker 2 (CapH_WesternDigital_V1)

So, I think we have to be more open to experimenting ourselves and being willing to also just lean in and try AI, try different forms of technology.

26:01

S… Speaker 2 (CapH_WesternDigital_V1)

That's hard.

26:02

S… Speaker 2 (CapH_WesternDigital_V1)

And I just want to say, like, we have not unlocked that yet.

26:05

S… Speaker 2 (CapH_WesternDigital_V1)

It's something I talk with my team a lot about.

26:07

S… Speaker 2 (CapH_WesternDigital_V1)

Like, how do we lead the path?

26:09

S… Speaker 2 (CapH_WesternDigital_V1)

And if any other CHROs have solved that, I certainly welcome their input because we need to lead the journey.

26:15

S… Speaker 2 (CapH_WesternDigital_V1)

And I think sometimes we're actually one of the hardest groups to go through the evolution.

26:19

S… Speaker 1 (CapH_WesternDigital_V1)

Yeah, well, and one of the things that I think it's always telling that technology vendors and leaders in other functions often think, oh, I can do HR's job or I can bring technology to solve this.

26:33

S… Speaker 1 (CapH_WesternDigital_V1)

And if you think about the world of the HR function, there are major regulatory and compliance and employee privacy data considerations that if you get that wrong with technology that's new, you have a major brand reputation damage and or financial.

26:52

S… Speaker 1 (CapH_WesternDigital_V1)

And no one wants that, number one.

26:54

S… Speaker 1 (CapH_WesternDigital_V1)

And because of that, number two, then it becomes this, what does the right form of innovation and risk-taking and things look like, especially with, you know, AI and automation, given all the dynamics.

27:09

S… Speaker 1 (CapH_WesternDigital_V1)

We have countries doing different regulatory requirements that you're just like, okay, is it coming?

27:15

S… Speaker 1 (CapH_WesternDigital_V1)

If yes, when?

27:16

S… Speaker 1 (CapH_WesternDigital_V1)

What's the implication?

27:17

S… Speaker 1 (CapH_WesternDigital_V1)

In the U.S., there are states doing different requirements.

27:20

S… Speaker 1 (CapH_WesternDigital_V1)

You get lawsuits with certain vendors.

27:23

S… Speaker 1 (CapH_WesternDigital_V1)

It's like, where am I going to place my bets in a way that's smart, that allows me to make progress to lead from the front, right, but also do it in a way that still protects the core of what employees want from the function, which is pay me on time, give me my benefits, give me the tools to do my work, right, and help me show up the best I can with my team and grow my career to support my family, friends, and community.

27:47

S… Speaker 1 (CapH_WesternDigital_V1)

So it is no easy task, to say the least.

27:49

S… Speaker 1 (CapH_WesternDigital_V1)

I agree.

27:50

S… Speaker 2 (CapH_WesternDigital_V1)

No easy task.

27:52

S… Speaker 1 (CapH_WesternDigital_V1)

Well, Katie, and to all the listeners, I think there were a few tremendous takeaways from this story, from your journey, from where Western Digital is headed, that I think could apply to anyone.

28:03

S… Speaker 1 (CapH_WesternDigital_V1)

Number one, engage the workers.

28:06

S… Speaker 1 (CapH_WesternDigital_V1)

Find out what their pain points are and connect AI automation or other business initiatives to those pain points, right, to help workers understand what's in it for me, why join on the change, right?

28:17

S… Speaker 1 (CapH_WesternDigital_V1)

Number two, when you have a moment that's a major inflection point, whether it's in response to macroeconomic, whether it is a business situation like divestiture separation, ground on those core values, but then get the leadership team to walk the talk, right, and show up for the workers and get them on the journey.

28:35

S… Speaker 1 (CapH_WesternDigital_V1)

And then number three, figure out where in the company you have examples that show you mean what you say, right?

28:44

S… Speaker 1 (CapH_WesternDigital_V1)

So your example of the Lights Out factory in Thailand and the upskilling of the workers, you can point to other workforce segments and say, we've done it.

28:51

S… Speaker 1 (CapH_WesternDigital_V1)

We're going to do it again.

28:52

S… Speaker 1 (CapH_WesternDigital_V1)

Join us on the journey.

28:53

S… Speaker 1 (CapH_WesternDigital_V1)

And I know many companies that might not have, like, that type of environment, I'm sure, have an example somewhere.

28:59

S… Speaker 1 (CapH_WesternDigital_V1)

They just need to bring it to the surface to everyone.

29:01

S… Speaker 1 (CapH_WesternDigital_V1)

That helps build some of that trust.

29:03

S… Speaker 1 (CapH_WesternDigital_V1)

So, folks, I hope you really take some good nuggets away from this conversation with Katie.

29:07

S… Speaker 1 (CapH_WesternDigital_V1)

And Katie, I just want to say thank you for spending the time here on Capital H and sharing Western Digital's journey, the role that you're playing.

29:13

S… Speaker 1 (CapH_WesternDigital_V1)

And I hope maybe our AI avatars will regroup in 55 years at the 110-year mark to revisit the journey the company's been on.

29:21

S… Speaker 1 (CapH_WesternDigital_V1)

So thank you.

29:21

S… Speaker 2 (CapH_WesternDigital_V1)

Thank you so much.

29:22

S… Speaker 2 (CapH_WesternDigital_V1)

Happy to have been here.

29:25

S… Speaker 3 (CapH_WesternDigital_V1)

This podcast is produced by Deloitte.

29:27

S… Speaker 3 (CapH_WesternDigital_V1)

The views and opinions expressed by podcast speakers and guests are solely their own and do not reflect the opinions of Deloitte.

29:32

S… Speaker 3 (CapH_WesternDigital_V1)

This podcast provides general information only and is not intended to constitute advice or services of any kind.

29:37

S… Speaker 3 (CapH_WesternDigital_V1)

For additional information about Deloitte, please go to deloitte.com slash about.

CapH_WesternDigital_V1

Muhtasari

Uliza Maswali Kuhusu Mpito Huu