A Conversation with Carey Smith, CEO of Parsons Corporation

Host:

Welcome to Engineering Influence, a podcast from the American Council of Engineering Companies. ACEC’s strength lies in its member firms and the diverse set of markets those firms operate in to serve the interests of their public and private sector clients. And it’s always great to have the opportunity to bring on one of those firms to spotlight their work and really look at what they are doing to improve their communities and the world around them. And I’m pleased to bring one of those shows to you today.

Host:

I am pleased to welcome to the program Carey Smith, the President and CEO of Parsons. Parsons is a leading provider of technology-driven solutions, focused on the defense, intelligence and critical infrastructure markets. And they’ve been in operation for more than 75 years. Parsons provides technical design and engineering services and software products to address their customers’ challenges, and they have capabilities in cyber security, intelligence, missile, space, connected communities, physical infrastructure, and mobility solutions.

Host:

Now Carey Smith joined Parsons in 2016 as President of the Federal Solutions business. She was promoted to Chief Operating Officer in 2018 and President and Chief Operating Officer in 2019. She was unanimously elected Chief Executive Officer of Parsons Corporation by the board of directors and appointed to the position in July, 2021. Now, prior to joining Parsons, Carey held a series of progressive leadership roles within the defense and aerospace industry. She holds an MS in electrical engineering from Syracuse University and a BS in electrical engineering from Ohio Northern University. In 2018, she received an honorary doctorate from Ohio Northern University for her outstanding contributions to the university and the field of engineering.

Host:

Now, interviewing a chief executive, sometimes it’s best for me to take a step back and to allow a chief executive to interview a chief executive. So I’m also pleased to welcome our President and CEO Linda Bauer Darr to move us forward and take the mic. Linda, the floor is yours.

Linda Bauer Darr:

Great. Thank you, Jeff. I’m happy to be back on the podcast. I need to do this more often. You’re doing a great job. So kudos to you, Jeff. Carey, we are so excited to have you in our offices. I think this is the second time in the short amount of time that you’ve been on board as the CEO of Parsons. It’s been since July, I think now, right?

Carey Smith:

That’s correct.

Linda Bauer Darr:

That you came on board and, it’s a pleasure to be working with you. We’re excited to have you here. So you’re a CEO now – how did that come about? You know, you’re an engineer, you’re a CEO. What brought you into engineering? And, and tell me a little bit about how you made it all the way up to the top ranks of such a, such a significant company as Parsons.

Carey Smith:

Sure. Well, thanks first, Jeff and Linda, I’m pleased to be here and I appreciate you hosting me today. I’ll start off. My dad kind of got me into engineering when I was really young. We had, I have one brother, one sister, he wanted all three of us to be engineers and one of us decided to be an engineer. So I went into engineering and one of my first experiences was working as an intern at LTB Steel in downtown Cleveland, really got hooked on the industry. Then when I graduated college start off, uh, with IBM, which subsequently became Lockheed Martin through acquisitions and had some great experiences. One of ’em I would highlight was being one of the first woman flight engineers to fly with special operations forces. So it’s kind of in my blood, I would say. Um, and just an exciting field. It’s an opportunity to make a difference.

Linda Bauer Darr:

Wow. That that’s, um, there’s so much there. I know we have a lot to talk about today in a short period of time, but I would love to just take a second to dive into that a little bit. So why was your dad so infatuated with engineering if he wanted all three of his kids to be engineer? So was he an engineer?

Carey Smith:

My dad was an engineer.

Linda Bauer Darr:

What kind of an engineer was he?

Carey Smith:

He was also an electrical engineer. So I followed in his footsteps.

Linda Bauer Darr:

Who did he work for? What kind of work?

Carey Smith:

He was with Morgan Engineering. So they built cranes for steel mills.

Linda Bauer Darr:

Out of Ohio,

Carey Smith:

Out of Alliance, Ohio.

Linda Bauer Darr:

Okay. And then you said that you were one of the first female flight engineers on a special operations mission.

Carey Smith:

Yes.

Linda Bauer Darr:

What what’d you do?

Carey Smith:

So at the time we were changing analog cockpits over to digital cockpits. So my job was basically to design the display formats. And then when the test engineers, when they were up flying, I was the flight test engineer. So I would sit between the pilot and the co-pilot and I would teach them how to use the new digital display systems.

Linda Bauer Darr:

Do you have your pilot’s license as a result of that?

Carey Smith:

I do not, but I’ll tell you, I’ve always thought about getting one.

Linda Bauer Darr:

Yeah. Something tells me that that’s not beyond you and probably it’s gonna be on your agenda for the future. Um, and then you went from IBM, which became Lockheed Martin. Obviously that’s a thing in this business. I actually started out years ago in a company called EG&G that later was purchased by and you know, way down the road AECOM. So, you know, that’s my only claim to the engineering profession before I came to ACEC and, um, man, you know, it’s, uh, you never know where you’re gonna be the next day. It seems

Carey Smith:

Like the that’s absolutely true. It’s spent a lot of consolidation in the industry.

Linda Bauer Darr:

It’s really picking up. Um, that’s another that’s for another podcast though, Jeff, we’ll try to stay disciplined. Um, so let’s talk a little bit about diversity and inclusion. I know that that is a passion for you. It it’s a passion for me. It is also a passion for ACEC and it’s – we have five planks of our strategic plan, core strategic goals. And, and that is certainly one of them. Um, and you know, it’s interesting trying to describe to people what ACEC sees kind of its unique lane in diversity and inclusion because we feel very strongly about STEM programs and bringing young people into this space. But, you know, traditionally ACEC has really been for the business of engineering and often focused on the leadership in engineering firms. You don’t come in as a leader, you know, you don’t come right outta college and become a leader.

Linda Bauer Darr:

It’s something that evolves, but we feel really strongly about getting involved earlier on in the game for engineers that are on that track, right? That are on that path to become CEOs. So you are one of very few female CEOs of engineering firms, you an engineer, and that’s not always the case. I mean, some of your colleagues are people that came into the profession as attorneys, or maybe they had a business development background. Um, so, you know, tell me a little bit about how you’re taking kind of, you know, the, the perch of CEO of Parsons and moving the ball forward for people like you to come behind you and, and promoting that push for diversity and inclusion, which is so important to the future of this industry and this profession.

Carey Smith:

Yeah. So inclusion and diversity is one of Parsons’, six core values. And it’s obviously very important to me being a woman in, in the engineering field. So when I first joined the company, about five years ago, we stood up a diversity at the time it was called diversity and inclusion council. Today we call it diversity equity and inclusion council. Um, that has been one of the best initiatives in the company with many people, volunteering to participate. It’s very active. We have ambassadors at each of our major locations across the company, and we also I will highlight, um, and promote it all the way up through our board. In fact, if you look at our board today, our board is about 40% diverse. So this is truly something that we take throughout the organization at all levels. We measure ourselves on diversity goals and we make sure that we’re achieving the metrics. And the objective is really to try and make sure that every employee feels engaged at Parsons and is able to contribute fully.

Linda Bauer Darr:

Yeah, that is, um, that it, it sounds like, you know, it’s, it was a, was a seed and it’s grown and it’s taking on more kind of speed and kind of heft as time goes along. And I met, you know, the way that you set it up, you described having an ambassador at each location, you know, with the company, the size of Parsons. It can’t all come from you. I know you have pressure to be everywhere at once, right. At all these different locations, um, to try to kind of share your me message and your passion and your vision for Parsons. So how do you keep those ambassadors. kind of on message and how much do they have, um, kind of free reign to do their thing? How do, how do you package it all together with the company as large as yours with these ambassadors? Is it all these separate locations?

Carey Smith:

So we set up specific goals that we’re gonna do as a, at the company level. So a goal might be one year we wanna improve mentoring across the company. A goal might be that we set up enterprise business resource groups. So they’re basically affinity groups. And once we sort of have the corporate objectives, then we flow those down to each of the ambassadors. And the ambassadors do have the authority to do what makes sense in their local area, because each area, as you know, particularly in the engineering field is different. It’s a lot different if I’m at a facility in Virginia versus a facility in California versus facility in Florida, right. So they can create events and activities that are meaningful to their particular location.

Linda Bauer Darr:

How do you choose who these ambassadors are gonna be? Do they have to represent a diverse constituency to begin with? Or how do you choose them?

Carey Smith:

We let them volunteer. Okay. Um, and we think that’s the best way, because if you’re selecting people, then they might not really be the right person for the job and might not put as much into it. So we really say, if we have a major site, let’s say in New York city, and we have several hundred people working there, we’ll have a volunteer on who wants to be the ambassador.

Linda Bauer Darr:

That’s great. So we have at ACEC a Diversity Equity Inclusion and Belonging Committee. And I think it’s like you, I mean, it started out the concept was inclusion and diversity, and it just continues to grow and obviously belonging and, and equity. Um, you know, with this new legislation, equity is much more important. But one of the things that has been interesting as this concept has grown and our involvement has deepened is how, how do you build the leadership of an effort like that? Because if it only people from, you know, diverse backgrounds, gender diversity, ethnic diversity, age, diversity, whatever, um, you might be missing out on the important buy-in that you need for, you know, that, that fever, if you will, the positive fever of really, you know, promot diversity and inclusion throughout the industry, uh, for that fever to grow. So, you know, we have had, we have, a couple of white men that are helping to lead this effort for us.

Linda Bauer Darr:

It so happens that they also happen to be CEOs of these, you know, some, some very significant firms that have taken this and really run with it. So, um, I would agree with you that, you know, it’s the people that really have the most passion, but you need to make sure that it’s people that have those experiences having been in the minority in some way, shape or form, but it’s also the people that represent kind of, you know, the broader population of that particular industry or profession, because if they’re not buying in, then not much is gonna change. So it really takes…

Carey Smith:

And ultimately to me, it comes down to diversity of thought and to get diversity of thought, you need engagement from everybody in your population, regardless of background.

Linda Bauer Darr:

And, and I think diversity of experience, you know, diverse experiences lead to that diverse thought. So we could go on about that forever, but we have something a little bit timely to talk about. And that’s the Infrastructure Investment and Jobs Act that, you know, it really has got this whole industry buzzing. We’re excited. This is a transformational piece of legislation. Um, I’ve never seen anything like this in my lifetime. I was born after the Interstate Highway System was, you know, conceived and built. So, um, this, but this is akin to that. It, it it’s that big. I know that you all are really embracing the opportunities and you’ve got your own unique kind of spin on it, a campaign, um, that kind of plays off of the Build Back Better concept, but that is called Build Back Smarter. That’s focused on tying traditional infrastructure with technology and innovation. It’s great idea. I mean, in a nutshell, it’s your grandfather’s infrastructure, right? I mean, let’s not do it the way that, you know, we’ve been doing it in the past because society and our planet and, you know, the way people, the digital world that we’re in right now, people do things way differently. And so you need to, we need to adapt. And so engineers are leading the way on that. So tell me a little bit about how you all are doing.

Carey Smith:

So we’re very, very excited about the infrastructure bill. It aligns extremely well with Parson’s portfolio, whether it’s transportation, including work that we do in rail and transit airports, ports, the water wastewater also ties into our portfolio – broadband, and even the utilities work we’re involved in, utilities, um, work as well. So we’re excited about the bill and what it means for our country. Also highlight too, that we’re seeing a lot of growth in global infrastructure. So beyond the United States, there’s a lot of spend that’s being done in Canada, as well as the Middle East. So for pars, it’s a really important time for the infrastructure portion of our business, because we’re an advanced technology company. We have two pieces of the business. We have a group that is focused on federal government and really develops advanced technology like artificial intelligence, data analytics capabilities.

Carey Smith:

We have some unique uses of drones and we do a lot of work in cybersecurity. So we have the ability to build back smarter because we take our advanced technology capabilities. We apply those to the infrastructure side of the business. So if you think about some examples would be instead designing roads and highways for a 30 year lifespan or bridges tunnels, dams, how do you design them for a hundred year lifespan? You include sensors that can perform monitoring and basically give you better predictability. How do you use drones to be able to do inspection of bridges? How do you apply artificial intelligence to a system that does advanced traffic management to be able to get better predictability on accidents? When things would be cleared up, people moving around more safely, um, use of sensors for things like an intelligent intersection. You know, our intersections were kind of set and they basically didn’t change for like three to five years now, post COVID we’ve got whole different traffic patterns. So how do we use the intelligent intersection so that they change dynamically and allow responders the ability to get through. So to encapsulate all that, it really means Build Back Smarter. Um, this is the opportunity to Build Back Smarter and really design for the future.

Linda Bauer Darr:

I love that. And, um, one of the reasons I love that so much is because it really showcases engineering, right? I mean, people talk about the Recovery Act, you know, during the Obama administration and shovel ready projects. And as you know, that, you know, that’s a, that’s a red flag for engineers when they hear shovel ready projects, because it means there’s not gonna be a lot of thought going into, you know, laying down that asphalt and concrete, this is in a lot of people’s views, you know, much better use of our funds because it does promote the sustainability. The long-term project development that you know, is, we’re not gonna have to redo, you know, five years down the road.

Carey Smith:

Right.

Linda Bauer Darr:

You know, under having that predictability, having those sensors kind of accelerating our, um, you know, the, the way that we use the infrastructure to promote mobility and, you know, our economic backbone, um, it’s exciting. And so you guys are right at the crossroads of that.

Carey Smith:

Yeah. It is really exciting, even, you know, a couple other examples. If you think about airports of the future, how those will be reinvented post COVID, you know, the whole way from the time you get outta your car, you go into the airport, you check in, you do your baggage, you know, you might have integrated health screening combined with ticketing, um, the way you drive up to park, that can all be different. It can all be used of sensors. So I mean, everything in our life really can be reimagined. We like to say at Parsons, we create the future, and this truly an opportunity to create the future of infrastructure.

Linda Bauer Darr:

Yeah. You know, it’s you think about what the origin of the need for a lot of this is, and to some extent, I think we’ve all been spoiled by Amazon over the years. You know, and the easy button, you know, those concepts of, I don’t wanna work too hard for it. And in this digital environment, I can just push a button and all this has been calculated. And that entry to the airport is a great example of that. You know, we’re all in a hurry. We don’t wanna expend a lot of effort getting all the checks, you know, done just for us to get on a flight, um, you know, for engineers to come in and figure out how to do it. That’s a great example of problem solving that really is, you know, central to who our folks are as engineers.

Linda Bauer Darr:

So we are getting close to the end of our time here. I think I have a couple more points that I wanted to raise with you, and then, you know, Carey, anything you wanna raise this, uh, course, you know, I’d be, be happy to hear your views on what’s going on and what you want us to know about what’s happening at Parsons. But you know, you talked already a bit about cyber security and cyber protection of critical infrastructure assets. This is so important. It’s important for our nation’s safety. It’s important for our economic safety. It’s important for, you know, the privacy of consumers. You know, and we’ve, we’ve heard about so many engineering firms who have, suffered because of the bad guys that are out there. And, you know, they know that without our kind of hands in the middle of so many of these really critical projects that if we are vulnerable, they’re gonna find a way in. And so you guys are really working big in that space. I’d like to hear a little bit more about, you know, how you think you all are gonna be able to kind of move the ball forward in that regard.

Carey Smith:

Yes. If you look at the Department of Homeland Security has defined 16 critical infrastructure sectors, and the way we approach it from Parsons is we look at areas that are highly regulated, that are high threat driven in areas that we have domain expertise, because the intersection of those three pillars is basically, um, we’re differentiated in those markets. And those are the gonna be the ones that get the most funding as well, because they’re gonna be the most under attack. So if you step back and look out at the 16 segments we play in transportation, we play in utilities, we play in facilities area and also in healthcare to just to name a few of the sectors. And what we can do that is unique is because we do have extensive cybersecurity capabilities. We understand, for example, how an airport operates. We understand how a port operates. We understand how a utility company operates. So we’re best equipped to be able to provide that cybersecurity protection. And I would say it goes beyond cyber for information technology, because also have the operational technology component. So if you think about SCADA systems or industrial control systems, those were put into those sectors, basically without security in mind at the time that those were designed. So Parsons is able to come in and approach protecting different sectors, both from an IT perspective, as well as an OT perspective.

Linda Bauer Darr:

Right, so you know, it’s, you said, those systems were put in place without kind of a consideration for security. They were put in place for efficiency. Right. And, you know, because we were on everything now we want it yesterday. Right. So now we’re at a position we’re in a position where we’re really having to kind of go back and, and reinvent aren’t we?

Carey Smith:

Yeah. Most definitely protect things, legacy systems that are out there. But most importantly, design with security in mind, as you put new systems, greenfield systems in place.

Linda Bauer Darr:

So, um, just take a minute, if you will, and tell me about some of the exciting projects you all are involved in right now, if you were gonna say, you know, here is the poster child of how Parsons is involved in innovative engineering solutions that, um, we want the world’s policymakers to know about what kinds of things fall into that category for you?

Carey Smith:

Well, so I, I would say, um, starting with critical infrastructure sector, one of our biggest projects would be the LAX modernization program. That’s an example of where we’re a program, basically, an owner engineer, a program management office, providing support to what is probably the largest aviation infrastructure project that’s underway. If I move around the world to the middle east, we’re involved in some exciting programs, there, an example would be NEOM, which is a new city industrial city. That’s gonna be built on the Red Sea. And NEOM is gonna be basically designed from the sand-up. So there’s gonna be a new airport, for example, that’s gonna be put into NEOM. We won a program management job there, and we’re in the process of pursuing the airport opportunity. If I move around the world a little bit further up into Canada, we’re involved in some of the major rail projects up in Canada – Edmonton Light Rail Transit would be a big one. And then on the federal side of our house, I mentioned cybersecurity’s a big area for us, and that is to tied infrastructure, but we do a lot of work in the space area in terms of integrated launch, space, ground systems, and space, situational awareness. And then we’re involved in some missile defense projects as well.

Linda Bauer Darr:

Wow. That really is a very diverse portfolio. That’s gotta be a lot to keep up with it. One thing I’m noticing as you’re talking about these projects, all are, you know, big and obviously impactful, hugely consequential, but if I am a 16 or 17 year old, and I’m thinking about going to college, and I’m thinking about changing the world, I wanna look at an engineering that is doing something that I know is gonna make the world safer or make the world ultimately healthier, you know, dealing with, for example, climate change, extreme weather issues. I think these are the kinds of motivating concepts where, you know, the people that are coming outta high school and college these days are saying, you know, how can I, how can I make a difference? You know, I don’t wanna, I don’t wanna just go to a nine to five job and, you know, sign a time sheet and push around a bunch of paper. I wanna make a difference. So what do you have at Parsons that’s going on right now where you think the young people of today would be really inspired?

Carey Smith:

Yeah. So first our motto is we deliver a better world at Parsons. We deliver a world that is safer that is more efficient. And that’s true whether it’s the federal side of our business or the critical infrastructure side of the business. And what I would say to somebody at age is we’re all about creating the future. I was asked recently, well, what company do you wanna emulate? And I said, we don’t wanna emulate anybody. We’re creating a company that is designing the future, whether it’s future or transportation, or the future of defense or the future of cyber. That’s what we’re about. So I would say to a young person, if you wanna create the future, come join Parsons because that’s what we’re gonna be doing.

Linda Bauer Darr:

Right. That’s and that’s exciting who wouldn’t wanna do that, right Jeff?

Host:

Absolutely.

Linda Bauer Darr:

That brings us to…

Host:

Well, um, right about right about time, actually, and that was a fantastic conversation. And I think it’s a good example of the diversity of the work that, Parsons is engaged in and our, and our industry is engaged in, and for those listening who may not be completely familiar with engineering or, you know, it’s that wide gamit of the services, the intellectual power of trying to solve complex challenges that make your lives better, uh, our lives better and also our nation more secure and productive. And, and I think from the conversation, it is, it’s a good explanation that Parson is directly engaged in all of those fronts. And then of course it was a great opportunity to hear from two executives on, you know, really with this great opportunity with the Infrastructure Investment and Jobs Act and, and all of this potential that is there because now that the policy is done, we’ve moved to implementation and that’s where it comes into our field to actually make policy translate into something tangible.

Host:

But this is, this has been great. And I do appreciate the time Carey that you’ve given us. And we look forward to working with Parsons as an active member of the ACEC community in the months and years ahead. And Linda, thank you very much for adding your expertise. And it’s, it’s always great to take a backseat to allow people who are actually doing things to talk about it. So thank you very much. And again, this has been Engineering Influence, a podcast from the American Council of Engineering Companies, and we’ll see you again real soon.