Global Mega-Trends Reshaping the Future

A Conversation with Barbara Humpton, President & CEO of Siemens USA

5 min. read

In the fast-paced world of business, it is easy to get caught up in immediate challenges, but true leadership requires a different kind of focus. It’s about having the courage to look ahead—to anticipate the changes shaping industries and align strategies to meet them. During a recent webinar hosted by ZRG Partners, Barbara Humpton, President and CEO of Siemens Corporation, shared her insights on the critical question: How is the external world changing in ways that are not reflected in our board conversations?

Barbara led an engaging discussion on the global mega-trends reshaping industries: decarbonization, glocalization, urbanization, and digitalization. As someone who’s spent more than 30 years helping companies identify and hire transformative leaders, I found her perspective both refreshing and practical.

Decarbonization: Beyond Compliance, Toward Opportunity

Barbara began by addressing a trend that is at the forefront of nearly every boardroom conversation: decarbonization. For Siemens, sustainability isn’t just an initiative—it’s embedded in their DNA.

“This past year, Siemens mitigated 190 million tons of carbon through the technology we delivered to others,” Barbara said. “That’s a 30% increase over what we’d accomplished just last year. This is going to be business led. And it's a brilliant moment for businesses to step forward and play a tremendous leadership role.”

Wind and solar are now the cheapest form of new energy for 85 percent of people worldwide, with costs predicted to fall another 50 percent by the end of the decade. Technology improvements are removing the cost disadvantage, or green premium, long ago associated with sustainable business. Barbara emphasized that clean tech and energy efficiency investments are no longer merely a political or regulatory discussion, but a necessity driven by customers, investors, and competition. “Customers are now the pull,” she explained. “We’re shifting beyond governments regulating what needs to be done. There’s a business case for decarbonization. This is about actually being wise and looking at the long-term viability of our businesses and ensuring that our customers are thriving.”

But how do boards ensure sustainability is more than a box to check? Her message to boards was clear: sustainability can’t be an afterthought—it must be central to the organization’s priorities: “At Siemens, we’ve tied management incentives to our sustainability goals, treating them with the same degree of importance that we give our financial measurements, because it’s a critical long-term indicator of whether we’re being true to our strategy.”

Glocalization: A Shift from Cost to Resilience

Global supply chains are undergoing a dramatic transformation. Once defined by cost optimization, they are now being reimagined to prioritize resilience and adaptability, a shift that requires innovative thinking and bold action. Barbara highlighted how Siemens has embraced this change, demonstrating the power of combining global innovation with local production.

“We moved from a ‘just in time’ mindset to a ‘just in case’ approach, prioritizing resilience over cost. Now, we focus on producing closer to the point of need,” she explained.

This approach, known as glocalization—where global innovation meets local production—allows Siemens to address regional needs while maintaining the efficiencies of a global organization. "What we see is companies like ours innovating globally but implementing locally and regionally,” Barbara explained. “It’s leading us into a new era for American manufacturing, where the ability to make drives innovation itself."

For boards, Barbara emphasized the need to reassess supply chain vulnerabilities and invest in strategies that ensure resilience, adaptability, and localized solutions.

Urbanization: Adapting to Growing Cities and Changing Demographics

As the world becomes more urbanized, businesses must rethink their strategies to address the demands of growing cities and shifting demographics. By 2050, 75% of the global population is expected to live in cities, making urbanization one of the most significant trends shaping industries. Barbara highlighted this shift as both a challenge and an opportunity: “By the year 2050, 75% of all humans are expected to live in cities. It’s the most efficient way of organizing housing. It’s the most manageable, and as a result, we've put a lot of emphasis into portfolios that support cities.”

This shift presents challenges and opportunities. “Cities want clean air, so electrification of transportation is key,” Barbara explained. “Whether that’s rail systems or electric vehicles, Siemens is deeply involved in building the infrastructure to support these changes.” Siemens’ fastest-growing U.S. business focuses on low- and medium-voltage technologies that power electric vehicle charging and data centers.

Barbara also addressed the impact of an aging global population on the workforce. “The workforce is shrinking, yet we have a larger aging population that needs care,” she said, emphasizing the importance of upskilling and tapping into diverse talent pools. “Investing in replacing people, especially in a declining workforce, is costly. With a relatively modest investment, we can upskill and allow people to own their careers.”

In addressing these trends, boards must challenge their organizations to integrate demographic and urbanization strategies into their long-term plans. Boards need to ensure their organizations are developing solutions that support the needs of future cities and an evolving workforce while driving innovation and growth.

Digitalization: Transforming Industries with Technology

Digitalization is reshaping industries, and the Internet of Things (IoT) is leading the charge. “These last couple of decades have introduced us to the Internet of people,” Barbara noted. “The next couple of decades, we're going to meet the Internet of things, and it’s orders of magnitude bigger.”

At the heart of this shift is the digital twin—a virtual replica of physical objects or processes that enables simulation, testing, and optimization. Barbara highlighted its potential with a powerful example: “When NASA and JPL said, ‘We’re going to land a rover on the surface of Mars,’ they relied on a digital twin to simulate landing scenarios and ensure success. That same principle is transforming industries.”

Digital twins are helping businesses reduce cycle times, improve efficiency, and unleash creativity. Barbara urged boards to ask: “Are we leveraging these tools to lead, not just keep up?”

As AI and quantum computing evolve, the opportunities for innovation will only grow. “The question is, are we deploying our talents and focusing them on the forces shaping our businesses?” Barbara challenged. Digitalization isn’t just about tools—it’s about driving a culture of adaptability and long-term growth.

Leadership: Looking Ahead with Binoculars

Throughout our discussion, Barbara returned to the critical role of boards in driving forward-looking strategies. “Too often, boardroom conversations feel like driving with the rear-view mirror,” she said. “We’re focused on past performance when we should be picking up the binoculars and looking to the future.”

She emphasized that this forward-thinking approach is especially important in times of disruption. “Disruption is when the best opportunities to shape the future arise,” she noted. “Boards need to break down silos, encourage cross-functional collaboration, and foster ecosystems that drive innovation.”

The Takeaway

As her presentation drew to a close, Barbara left us with a reminder that I think every leader should hear: “Disruption provides the best opportunity to shape the future. The question isn’t if these trends will impact your business—it’s how prepared you are to adapt and thrive.”

As leaders, we have a responsibility to embrace these global forces and align our strategies accordingly. Whether it’s through decarbonization, supply chain resilience, urban infrastructure, or digital transformation, the opportunities to lead and innovate are endless.

Her words have stayed with me, and I hope they resonate with you too. As we look to the future, let’s take Barbara’s advice to heart. The world is changing rapidly, and it’s up to us—leaders, boards, and decision-makers—to ensure we’re not just reacting to those changes but leading the way.  Let’s pick up the binoculars and look ahead to a future we have the power to influence.