Agenda 2007: their voices span industries and the United States; their ideas cover the hot topics facing all corporate leaders today. CEOs from a wide range of industries, including home improvement, media, financial services and supply logistics shared their viewpoints and perspectives with Chief Executive as they look to 2007 and beyond.

Risky Business

Gregory C. Case, president and CEO Aon, Chicago, III.

"The emergence of today's reasonably affordable terrorism risk insurance capacity is directly attributable to the passage of the Terrorism Risk Insurance Act (TRIA) of 2002 and its subsequent extension in 2005. "TRIA and its successor, while not perfect, have facilitated the terrorism coverage that is essential for continued economic growth in key industries across the country. This public/private partnership has served us well in making available a crucial resource where there is no realistic private market solution. Terrorism insurance capacity will dramatically decrease if TRIA is allowed to expire at the end of 2007.

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"One catastrophic terrorist event could erode the entire capital base of the insurance industry. In light of this unfortunate reality, the outlook for our economic growth and security will be very bleak unless we formulate a long-term solution."

Aon is a pure placement insurance broker, providing risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. Aon has 45,000 employees and 500 offices in more than 120 countries.

Delivering Diversification

Eric W. Schrier, president and CEO The Reader's Digest Association, Pleasantville, N.Y.

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"The single most pressing business issue facing CEOs in 2007? I imagine many corporations out there, like us, are trying to quickly and dramatically diversify their companies without losing traction on their core businesses. At RDA, we are focused on becoming channel agnostic--that is, giving consumers the information they want, when they want it, in the channel and form of their choosing.

"The heart of our business is content from trusted brands, and it doesn't matter if we deliver this content to consumers at retail stores; in their offices, schools or homes through our direct selling businesses; or wherever they are digitally. Our employees need to think and operate beyond their individual comfort zones, and we need to fill gaps in our expertise with new talent. And along the way, we have to ensure that we don't lose focus on first-rate innovation and execution to keep our traditional print and direct mail businesses thriving."

The Reader's Digest Association is a $2.4 billion corporation that publishes books, magazines, music and videos and sells to customers via direct marketing in more than 70 countries. RDA sells 50 million books a year, representing $1 billion in revenue. Reaching well over 100 million readers worldwide with a circulation of 36 million, RDA publishes 77 magazines, including 50 in-country editions of its flagship Reader's Digest, the largest-circulation magazine in the world.

Wireline Worries

Daniel R. Hesse, chairman and CEO Embarq, Overland Park, Kan.

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"The wireline voice communications industry has experienced a revenue and earnings decline over the past few years. This represents the bulk of our business and is our major concern for the next year. For 2007 and beyond, then, our mission is to slow and offset reversals by concentrating on our two most significant high-growth areas--data and wireless--with emphasis, too, on entertainment services.

"We are driving on two major fronts. The first is to relentlessly innovate and to be the first to market with products that make a difference. We have led the way, for example, with solutions for providing seamless, two-way transitioning between Wi-Fi service and wide area wireless service. Our other strategic driver is about bringing common-sense simplicity to our customers' world. This, of course, is easier said than done. There are policy barriers, and we have to push suppliers to think differently. It's real work, but the progress is already there."

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Embarq was created in May 2006 as a spin-off from Sprint Nextel. The company is the fifth-largest local phone provider in the U.S., with 20,000 employees and operations in 18 states. Embarq is included in the S & P 500 and is expected to rank among the Fortune 500.

Supply Strategy

Mike Eskew, chairman and CEO United Parcel Service, Atlanta, Ga.

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"We all are operating in a new competitive landscape. Emerging economies, new trade lanes, disruptive technologies, innovative business models and growing consumer expectations are forcing us to rethink basic notions about how we lead our businesses and stay competitive. Stated simply, the complexity of the global value chain is creating challenges for markets, businesses and people.

"More supply chains today are emphasizing lean inventory and on-demand deliveries. Shipments are becoming more numerous, more frequent and more customized for Internet-empowered consumers who are pulling demands through the supply chain.

"In this environment, it would seem axiomatic that companies need to pay greater attention to their supply chains. But I believe the need is more critical than that. The businesses that will survive, much less flourish, in the coming decades are those that learn to treat their supply chains as a competitive strategic weapon. Their CEOs will start working in 2007 to strengthen connectivity and collaboration among vendors, partners and customers."

UPS is a $42.6 billion global corporation focused on enabling commerce around the globe. With one of the most recognized and admired brands in the world, UPS is the world's largest express carrier and package delivery company and a leading global provider of specialized transportation, logistics, capital and e-commerce services. UPS operates in more than 200 countries and territories.

Global Growth

William V. Hickey, president and CEO Sealed Air, Elmwood Park, N.J.

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"Volatile energy and raw material costs, principally a factor of changes in the petrochemical industry, has been a challenge for us over the past two years, with percentage increases in the double-digits. Our plan for mitigating the continuing impact of these rising costs in 2007 includes furthering our ongoing productivity and supply chain initiatives, maintaining tight control on operating expenses, and developing innovative packaging solutions.

"Looking further ahead, we are continuing to expand our broad global presence through strong growth in emerging markets. With operations in 51 countries around the world, 52 percent of our total company sales are now generated outside the U.S. Our focus will remain on developing innovative packaging solutions for emerging economies as they continue to experience rising standards of living with the global emergence of the supermarket and increasing global trade."

Sealed Air is a global leader in the packaging industry. With revenues last year of $4.1 billion, Sealed Air operates in 51 countries, has over 100 manufacturing facilities worldwide and employs more than 17,000 people.

Housing Halt?

Robert L. Nardelli, chairman and CEO The Home Depot, Atlanta, Ga.

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"Right now, we have a picture of economic uncertainty in this country, and for the home improvement sector, we definitely see challenges in the second half of this year and through 2007. For our sector, the deceleration in housing starts and existing home sales occurred faster than many people expected, and we've seen consumers pulling back on discretionary spending in the home improvement sector of retail.

"In times like this, a well-conceived growth strategy is crucial. In 2001, The Home Depot redefined its growth strategy to focus on enhancing our core retail stores, extending into adjacent businesses, and expanding into new markets and geographies. We've since worked hard to drive productivity and customer satisfaction in our existing stores, while also establishing additional platforms for extending and growing our business.

"Our strategic road map also has built-in flexibility, so that we can adjust accordingly in response to a number of factors, from customer feedback and preferences to changes in the economy. By continually reevaluating our strategy, we have the flexibility to invest in our customers, our associates and our stores to gain share in what appears to be a down market."

Operating approximately 2,000 stores in the U.S., Canada and Mexico, The Home Depot is the world's largest home improvement retailer, with sales last year of $81.5 billion.

Leadership Lessons

Sandy Weill, former chairman and chief executive

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Citigroup, New York

"As business becomes more global, it becomes more complicated. Certain qualities will help CEOs face this challenge. Understanding the business and anticipating issues upfront is important, along with being able to converse intelligently with the people running the business instead of just being a bureaucrat. Working globally means operating in different countries, so an understanding of how to work with foreign governments and other entities is prudent. Being smart about one's reputation, just as one would be careful about credit, trading or operational risk, is also wise, with a perspective on the consequences of transactions going bad.

"Lastly, I would say that what was true in the '80s and '90s holds true today. CEOs also create opportunities for bright young people coming out of schools all over the world. Successful leadership is about establishing excitement and growth that attracts the leaders of tomorrow and for the decades ahead."

The world's pre-eminent financial services company, Citigroup has some 200 million customer accounts in more than 100 countries. Sandy Weill is the author of the recently published book The Real Deal (Warner Books).

Manufacturing Migration

Andrew N. Liveris, president, CEO and chairman

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The Dow Chemical Company, Midland, Mich.

"CEOs, especially those in the manufacturing sector, should be concerned about the threat to America's manufacturing base caused by several issues--tort law, taxation, health care and pension costs--and perhaps foremost, the high cost of domestic energy, particularly natural gas. A comprehensive energy policy that embraces conservation, efficiency and diversity of supply would unquestionably help. Yet, there isn't one--so the country's $1.5 trillion manufacturing sector battles to survive. In a global economy, multinational companies like Dow will continue to grow. But many of our new production plants, new jobs and the wealth that accrues to those things will migrate to places where we can prosper. Through policy reform, this country must reaffirm its commitment to its manufacturing base ... to ensure not only the continued health of its economy ... but its continued leadership in the world."

Dow is a diversified chemical company with customers in more than 175 countries and products and services that range from fresh water, food and pharmaceuticals to paints, packaging and personal-care products. Dow has annual sales of $46 billion and employs 42,000 people worldwide.

Community Concerns

E. Neville Isdell, chairman and CEO The Coca-Cola Company, Atlanta, Ga.

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"CEOs must ensure their businesses are fully engaged with the communities they seek to serve. They must be part of the process that sustains those communities through the employment they provide, outreach that improves quality of life and, ultimately, products that benefit their customers and consumers."

Founded in 1886, The Coca-Cola Company is a global leader in the manufacture, distribution and marketing of nonalcoholic beverage concentrates and syrups worldwide. The company has 55,000 full-time employees worldwide.

Talent War Strategies

Carol Evans, CEO

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Working Mother Media, New York

"As baby boomers retire and the talent war for skilled workers heats up, companies can no longer drag their feet in dealing with the changing workforce. First, women make up more than half of college graduates and will soon be half of our employees. To stay competitive, companies must take into account the needs of working mothers and transform their companies into places where work and family are no longer antithetical. But increasing numbers of male and female employees from Gen-X and Gen-Y are demanding flexibility of time and place, as well as support for eldercare, maternity and paternity leave, and health needs. Companies that successfully fuse work and family will outpace the competition by decreasing retention costs and increasing productivity."

"Second, companies must pay particular attention to the intersection of race and gender in the workplace. Women of color face a large wage gap and advancement disadvantage. As the world goes multicultural, businesses must reward these workers or risk losing touch with their customers."

Working Mother Media (WMM) publishes Working Mother Magazine and owns the National Association for Female Executives (NAFE). Carol Evans is the author of This is How We Do It: The Working Mothers' Manifesto.

Targeting Talent

James Rogers, president and CEO Duke Energy, Charlotte, N.C.

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"Our No. 1 priority in 2007 and beyond is to make sure we have a pipeline of talented people. If you look at the demographics of our country, you'll see the need to have skilled labor across all industries and the need to have talented people to lead our companies as business faces challenges through the next decades."

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company.