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MODERN LAW The annual general counsel issue explores duality in the contemporary in-house role


Cover and this page: Caleb Fox

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Office of Know Thirteen general counsel share how an open-door philosophy positions their legal teams as business partners Page 104


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The Best Offense Is a Good Defense Cyberattacks are on the rise, and FireEye’s Julie Cullivan is on the front line defending top companies from threats.

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More Than a Toy Story Martin Trueb’s international travels aid his expertise in guiding Hasbro as it evolves into an global entertainment brand.

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Fruits of One’s Labor Tom Madsen is growing the Jamba Juice brand to appeal to a variety of consumers around the world.

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Real Connections in a Digital World For Ceannate’s Troy Hardeman, developing relationships bridges the gap between people and technology.

From Beijing to Bebe Liyuan Woo challenges the traditional CFO role, directing sales and brand decisions for the fashion retailer.

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Hardeman, kale: Caleb Fox; Monopoly: digitalreflections/Shutterstock.com

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Cue the Lead Time Bob Barron is staying ahead of the digital revolution with timeless success at Twentieth Century Fox.

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Lean on the Legacy Raise the Roof Steve LaCroix is behind the scenes of a state-of-the-art football stadium that the Minnesota Vikings call home.

Kiewit’s David Hecker is building on the architecture company’s 130-year history and setting it up for the future.

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Landmarks For the People Pepper Construction boasts a roster of buildings in the Chicago skyline, but CHRO Michelle Lieb knows the company’s greatest assets are its employees.

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An Apple a Day Terrence Dixon worked his way up the ladder from bagger to VP of HR at Brookshire Grocery Company.

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A Plan to End White-Collar Crime Kim Turner and her audit team are working tirelessly to eliminate fraud at Texas Tech University.

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Take the High Road David Cordero expands the highclass Maserati brand to captivate global audiences with new products. Lieb: Caleb Fox; Car: Courtesy of Maserati

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Plugged in to Positive Change Greg Sarich is driving innovation at CPS Energy by automating systems, which leads to greater energy efficiency for consumers.

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Daring Dealmaker Allie Hope targets new locales for Virgin Hotels, building a powerhouse brand from the ground up. Page 68

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CREATIVE

PUBLISHING

VP of Creative Kathy Kantorski

Guerrero Howe, LLC

Editorial Director Cyndi Fecher Managing Editor Jennifer Draper jdraper@profilemagazine.com Associate Editor Danny Ciamprone Creative Director Karin Bolliger Senior Designer Holly Leach Photo Director Caleb Fox

SALES & ACCOUNT MANAGEMENT VP of Sales Kyle Evangelista Director of Sales Operations Philip Taylor Director Dominique Divito Associate Directors Titus Dawson Kara Thomas Content Advertising Managers Andrew Armer Christina Brown Kim Harrington Ben Julia Taylor Les JB Martinez Rachel Miller Jenny Vetokhin

CEO Pedro Guerrero Executive Assistant Jaclyn Tumberger Director of Digital Products Bettina Lindner Lippisch Recruitment Director Elyse Glab Client Services Director Cheyenne Eiswald Senior Client Services Manager Rebekah Pappas Client Services Manager Katie Richards Financial Analyst Mokena Trigueros Receptionist Amanda Paul

MARKETING Managing Director of Marketing Sean Conner Reprints & Circulation Director Stacy Kraft stacy@guerrerohowe.com Events Director Vianni Busquets

Opposite and this page: Caleb Fox

Executive Success Manager Justin Joseph justin@guerrerohowe.com

Embrace the Shift to Lead the Enterprise As I write this letter, I find myself reflecting on how I, and we, got to this point. When Cyndi Fecher—now Profile’s editorial director—brought me on as associate editor last year, I fell head over heels for this bunch of brilliant, hardworking people at the office, as well as your stories of daring plans and accomplishments that had often gone untold before this magazine’s genesis. I was, and am, inspired. A year later, I am honored to be ushering in the fifth edition of our annual general counsel issue. Last year, we explored how general counsel pursue excellence to grow their careers as experts of the law. In this issue before you, we pause to observe how the modern in-house role must expand even further into the realms of business. Consider how Jean Liu shifted from legal leader to the expert of her biotech company, Seattle Genetics (page 118), or how Sesame Workshop’s Joe Salvo keeps pace with the ever-changing media industry (page 133). Indeed, Michael Coyne reveals just how much the legal profession has evolved as he mentors the next generation of general counsel at Mitsubishi UFJ Financial Group (page 106). Yet the cover story is not of a general counsel. We intentionally selected Allie Hope of Virgin Hotels (cover, page 68) as the face of this issue. Her bold approach to developing her career and the company’s brand mirrors the same entrepreneurial spirit embraced by our thirteen featured general counsel (page 104). Consider how Imerys’ Ryan Van Meter seeks out engineers and environmental teams in the trenches to broaden his grasp of the minerals business (page 120), or, perhaps, how Brian Brooks waited tables before working his way up to transform the legal department at Fannie Mae (page 156). For today’s general counsel, the schism between adviser and strategist is rapidly closing. We paired a few of our featured general counsel to discuss this dynamic as peers in commentary boxes on pages 125, 141, 145, and 148. However, conversation around a business-centric mind-set does not apply only to the legal community. Look to FireEye’s Julie Cullivan to see how she merges her operations and IT expertise to thwart cybercriminals (page 36). Check out how Sandy Jacolow bridges his knowledge of the real estate business with the right digital tools to drive occupancy and revenues at Silverstein Properties (page 212). In these pages you’ll see tales of reinvention and connection, with leaders who transcend business divisions to add greater value to their roles. As I start my own new role, I hope to connect with you, too. So let’s get in touch (jdraper@profilemagazine.com) and start a conversation of our own.

Subscriptions + Reprints For a free subscription, please visit profilemagazine.com/sub. Printed in China. Reprinting of articles is prohibited without permission of Guerrero Howe, LLC. For reprint information, contact Stacy Kraft at 312.256.8460 or stacy@guerrerohowe.com. Profile® is a registered trademark of Guerrero Howe, LLC.

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Jennifer Draper Managing Editor

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YES Profile shares the stories of the modern executive.

THAT MEANS YOU Share your story of exceptional leadership with our network of powerful business leaders.

For editorial consideration, contact info@profilemagazine.com

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Dave Moser

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At Home With New Trends Radian Guaranty president Teresa Bryce Bazemore draws on her general counsel experience to navigate the evolving mortgage industry and engage new generations of homebuyers By M E L I S S A A N D E R S

Teresa Bryce Bazemore stepped into the president’s role at Radian Guaranty in 2008 as the mortgage insurance company grappled with the real estate crash. But Bazemore came prepared. She leveraged her eighteen years of experience as a general counsel in the mortgage industry to hit the ground running and keep an eye on the future rather than getting caught up in the crisis facing the industry. “One of the benefits for me was the timing,” Bazemore says of the transition from Radian’s general counsel to president. “I think the fact that it was the summer of 2008, right when a lot of issues were going on, but fortunately, because of my background I could also think about how to build a business on a go-forward basis and not just get mired in the difficulties.” Just four months after joining Radian as general counsel in 2006, Bazemore added the responsibility of chief risk officer and then took on the president’s role in July 2008.

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Teresa Bryce Bazemore President Radian Group Philadelphia, PA

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INNOVATIVE LEGAL SOLUTIONS We are pleased to partner with Teresa Bryce Bazemore and Radian Guaranty, and we admire their leadership in the mortgage insurance and risk management industry. K&L Gates — Legal Advisor and Counselor to the residential mortgage industry for over 30 years.

Bazemore oversees the mortgage insurance business for Radian Guaranty, a subsidiary of Philadelphia-based Radian Group. Radian Guaranty sells private mortgage insurance “to protect lenders from default-related losses, facilitate the sale of low-down payment mortgages in the secondary market, and enable homebuyers to purchase homes more quickly with down payments less than 20 percent,” according to Radian’s website. Bazemore earned her bachelor’s degree from the University of Virginia and law degree from Columbia University. Then she clerked for a year for a chief justice of the New Jersey Supreme Court before moving to a law firm where she worked in commercial real estate development. Bazemore was drawn to real estate in part because it’s tangible—she could point to a particular building and know she helped it come to fruition. In fact, her first deal was the acquisition of the video scoreboard for the Baltimore Orioles baseball team. However, Bazemore got into the mortgage banking industry in 1990 when she went in-house with Prudential Insurance/Prudential Home Mortgage. She later served as general counsel for PNC Mortgage and Bank of America’s mortgage business before joining former Prudential colleagues to launch Nexstar Financial Corporation, a private mortgage lender that was sold to MBNA, now owned by Bank of America. “Having done a startup was a huge benefit to me in hindsight,” Bazemore says. “Because when you’re in a big company, you can have a certain perspective, and how you think about risk can also be different because you have more leeway, you have more capital, etc. When you’re in a small company that you’re growing, your risk appetite is very different.” Her experience with both large and small companies gave Bazemore insight on drivers of success and managing business development. She learned to approach issues from not just the legal point of view, but the business mind-set as well. “When you are the chief legal officer, you see everything across the whole organization,” Bazemore says. “You’re not pigeonholed into one area. It also gives you an opportunity to connect the dots.” Bazemore’s involvement in several industry groups aided her transition to president. She served on the Mortgage Bankers Association’s board of directors and was a member of the US Federal Reserve Board’s Consumer Advisory Council, among other groups. “I also had a perspective on what others were doing, how the industry was changing and evolving, and what the hot topics were,” she says.

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COACHING THE AMERICAN DREAM For a host of reasons, the number of first-time homebuyers as a percentage of overall sales has decreased from about 40 percent of the market to 30 percent, according to Bazemore. Yet surveys have shown that most people do want to buy a home, including a majority of potential buyers age forty-five and younger. Bazemore has been focused on ensuring that first-time homebuyers realize their dreams of homeownership. “It’s not because people don’t want to buy a home,” she says. “Some of it is timing, some people are deferring the decision to buy until they get married, and people are getting married later, having children later.”

Dave Moser

Teresa Bryce Bazemore has been named one of the Top 20 Leading Industry Women by Mortgage Banking Magazine.

When Bazemore started as Radian Guaranty’s president, she was largely focused on stabilizing the company, making sure it had enough capital, and ensuring it had the right underwriting guidelines. She also spent a lot of time looking for ways to help consumers stay in their homes, since most of Radian Guaranty’s losses are related to defaulted loans that go to claims. “To the extent that we were able to help some borrowers either modify their loans or get in a situation where they could move forward with keeping their home, that was a win-win for us,” Bazemore says. Bazemore also positioned the company for future success, specifically working to diversify Radian Guaranty’s business beyond the top twenty lenders and spread its risk over a variety of large banks, community banks, credit unions, and other lenders.

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The company built its sales force and made investments as it sought to move forward. In 2014, it achieved its first full year of profitability since 2006. “It allows you to spend your time really thinking about what’s next, and how you build opportunity, and build the business going forward,” Bazemore says. “You don’t have to spend so much time worrying about some of those legacy issues left over from the crisis.”

There’s also a lot of misinformation in the marketplace. Many people think they need to have a 20 percent down payment, which is not the case. Radian has worked with many consumer groups and trade organizations to help educate potential buyers and real estate agents about the options, including mortgage insurance and evaluating when to buy versus rent. Bazemore says consumer perception seems to be changing a little, and she is starting to see millennials come off the sidelines a bit.

K&L Gates is proud to salute our client Teresa Bryce Bazemore, president at Radian Guaranty, for her innovative spirit and many accomplishments in the mortgage insurance industry. Talented visionaries such as Teresa are inspirational leaders who strengthen the global business community.

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Hard Work and Honesty Overcome Roadblocks Toward Global Expansion Since Copart’s inception, Paul Styer has been evolving the vehicle remarketing and auto-auction business to create a multinational company By U R M I L A R A M A K R I S H N A N

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Copart’s founder needed a lawyer who could help him make going public successful, and Styer jumped at the opportunity. Styer says it was tough being in private practice as the sole practitioner, claiming he wasn’t really good at developing new clients. “Although I thought I was a pretty good lawyer, and I gave good advice, I wasn’t really a good businessperson to grow my practice,” Styer says. “So when I got the opportunity to work for Willis at Copart, it was an easy decision. I knew him, liked him, and he was (and is) a very successful man. It was a great opportunity for me to break out and do something more, not just as a lawyer but also as a businessperson.” Styer joined Copart as in-house counsel in September 1992. Copart went public in March 1994. While preparing to take the company public, Styer hit the ground running in meeting with investment bankers, retaining lawyers, and becoming proficient in being able to make big decisions for the company. “It was definitely a very long and steep Paul Styer learning curve,” SVP, General Styer says. “I came Counsel in 1992, not really knowing much Copart about big public Dallas, TX companies and

Paul Styer highlights Copart’s philosophy of honesty and hard work to dispel the notion that car companies rip people off.

Kevin Brown

Paul Styer’s first job out of law school was working as in-house counsel for a real estate developer in Sacramento, California. It was a bit of an odd job to take after graduating, but Styer was eager to learn. He worked on legal issues pertaining to buying and developing property, and getting use permits and property entitlements. Ultimately, his inexperience caught up to him, and his mentor Mark Sewell asked him to work for his small firm in the same city. That firm eventually became Sewell, Krueger, and Styer. In the mid-eighties, Sewell wanted to retire, so Krueger and Styer split the business and the clients. The pair decided to let their clients choose who they wanted to represent them, and one of them happened to be Willis Johnson—Copart’s founder. Suddenly, Styer was the sole practitioner in private practice at his own firm. Though it was a daunting task, he put his strong work ethic to the test. At the same time, Johnson was busy crafting business plans of his own. A competitor, Insurance Auto Auctions, had gone public and wanted to buy Johnson out. That got his wheels turning. Johnson didn’t want to sell his multilocation, self-service wrecking yards and auto-dismantling business, so he had an idea: take his company public, too.


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public financing. When we went public in 1994, it was off to the races. I found out that I had the personality of a dealmaker. I was more of a negotiation, deal-making type of lawyer, and that’s what was needed in those days because we were high-energy, fast-paced, and making acquisitions one after the other.” Today, Styer is the general counsel and senior vice president at Copart, and he’s helped build the company with more than 185 locations in ten countries. The company auctions cars for insurance companies, dealers, fleet operators, banks, charities, municipalities, and other sellers. Copart recently expanded to India and Brazil, and has plans for China. Regulations are the trickiest part of expanding into foreign markets, and Styer has to worry about red tape and other bureaucratic roadblocks that can slow down and impede expansion outside the United States. Styer’s team also looks at “the car park,” looking at how many cars are in that country and the auto insurance regulations. When Copart went into Brazil, it was at a time when Brazil’s middle class was expanding and buying more cars. “We thought it was a good opportunity to get into that market early and seize it,” Styer says. He foresees more expansion into continental Europe and is excited to see how markets in China and India will progress. As a leader, Styer looks for people who embody the Copart philosophy of hard work and honesty. “Everybody has stories about being ripped off in the car business,” Styer says. “That makes it even more important that we are a company that operates with transparency, honesty, and a strong work ethic.” With those values, his team helps build the company vertically and horizontally. In the next five years, Styer envisions the business expanding into services like auctioning undamaged, high-mileage cars and taking on more services for Copart’s sellers. He’s also grown his legal staff from two to nine people since a recent move to Texas and, being a good general counsel, he knows when to outsource and how to develop legal specialty experts. A great organization is all about efficiencies, and Styer leverages the value of in-house versus consulting. “I try to do the best I can to hire people who are smarter than me, so that when I leave, the company will be better off,” he says. And under Styer’s leadership, guided by strong values, Copart is headed in the right direction.

Alston & Bird provides legal counsel and services to domestic and multinational clients across a broad range of industries. Our mission is to provide the highest-quality legal advice and responsiveness by assembling and nurturing the strongest array of legal talent and expertise to meet the challenges our clients face today.

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Illustration: Feaspb/Shutterstock; Photo: Kevin Wimpy

How do you manage stratospheric growth?

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Community Health Systems’ retiring chief information officer offers advice for executives leading rapidly expanding organizations By P E T E R FA B R I S

O

Over the past two decades, Community Health Systems (CHS) has vaulted from a small, regional healthcare organization to one of the largest in the United States. The for-profit operator of general acute care hospitals was a $700 million entity in the mid-1990s, focused on serving smaller communities. Today, it owns or operates 198 hospitals in twenty-nine states, providing comprehensive healthcare services to both urban and smaller communities. Senior vice president and chief information officer J. Gary Seay helmed IT through this period of explosive growth. As he prepared to retire at the end of 2015, Seay reflected on the dramatic transformation of the company and the formidable challenges he faced in supporting the ambitious growth-byacquisition strategy of CHS leaders. When Seay joined CHS in February 1997, the corporate IT shop consisted of just ten people. Today, its ranks are more than 600. In the three years between 2007, when CHS acquired $5 billion Triad Hospitals, and 2010, corporate IT grew from one hundred to 350 employees. Another large acquisition in 2014, of Health Management AssoJ. Gary Seay ciates, added a few hundred more employees to Seay’s SVP, CIO department. Such rapid staff growth is an enormous challenge Community Health Systems for any manager. Seay had to scale up IT infrastructure and applications while ensuring that IT was Franklin, TN properly serving business strategy. All of this had to

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THE VISION TO SEE WHAT’S POSSIBLE Together We Are Committed to Changing Healthcare For The Better

The U.S. Healthcare System is changing, and the changes are having a profound impact on the nation’s healthcare providers. At MEDHOST, we commend Gary Seay for being recognized as cultural innovator and thought leader in connecting communities of care.

MEDHOST is committed to helping healthcare organizations effectively manage and maximize patient volumes and profitably. Explore how our comprehensive solutions stretch across the continuum of care, attracting and connecting consumers and serving providers to manage the healthcare demand.

www.medhost.com


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A BRIEF HISTORY OF COMMUNITY HEALTH SYSTEMS In about two decades, the provider of general hospital healthcare services has grown into a leading Fortune 500 company in its industry.

’85

Community Health Systems is founded in 1985 after the first hospital is purchased.

’91 ’97

Community Health Systems issues its initial public offering.

Wayne T. Smith becomes president and chief executive officer, kicking off a period of exponential growth for Community Health Systems through acquisitions and improved operations.

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Community Health Systems is taken public for the second time on the New York Stock Exchange.

’07

Community Health Systems adds more than fifty hospitals, which nearly doubles the size of the organization.

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Community Health Systems successfully acquires Health Management Associates, adding another seventy hospitals.

be accomplished while maintaining rigorous control over costs and using objective criteria to prove that he and his team were performing their jobs well. MANAGING EXPONENTIAL GROWTH With a small staff, processes and practices can be kept simple and flexible to make quick decisions, but as it scales up, those qualities become difficult to maintain, according to Seay. “As you add layers of management to assist with direction, governance, execution, and business partner demand, it becomes harder to get your message out consistently,” he says. “When you grow your management team rapidly, that becomes incredibly hard to do.” In order to staff up rapidly, managers typically hire people with deep experience at other companies. These skilled practitioners are accustomed to operating in the context of other organizations. In 2007, when CHS was a $5 billion company acquiring another $5 billion company, Seay hired a consulting firm to help build “the scaffolding” to assimilate the influx of new staff. This included training and ongoing coaching processes so that newcomers could rapidly absorb CHS’s customs and values. The consultants set up a framework that “helped unravel misunderstandings or challenges with understanding the message and direction from leaders,” Seay says. “We created a safe harbor for new managers to engage with each other on a personal basis.” Seay restructured all of his department’s processes and practices—the basics of many critical issues such as allocation of responsibilities, personnel performance evaluation, intradepartmental communication methods, and how to engage with business partners. “When you’ve been small, many of the practices you’ve had don’t scale up well,” Seay explains. “You have to create new operating practices and evolve them rapidly. You have to communicate organizational changes effectively, and get people to adopt them and adhere to them before they are well proven to the organization.” To help manage the rapid growth, Seay hired a “wingman” and had his top lieutenants do the same. Adding the additional layer of management helped Seay and his circle of top managers implement new procedures and drive change in the IT group. Adding more dimensions to the organizational chart should be done sparingly, though, as Seay believes in a “careful, conservative approach to staffing.” For temporary spikes in departmental workload, he typically

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VacoHealthcare.com 615-324-8226 profilemagazine.com

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WHEN THE PATIENTS YOU CARE FOR CAN CARE FOR THEMSELVES THATʼS POPULATION HEALTHIER At athenahealth, we take on work for you to bring in populations in need of care. We aggregate your data, reach out and engage patients, and manage cost and quality. So your organization can optimize revenue and efficiency. See how at athenahealth.com

Population health, EHR, and revenue cycle management services

“An IT tool creates form, structure, and discipline . . . most importantly, it provides an avenue to create metrics that expose operating execution, adoption, and performance to senior leadership.” J . GA RY S EAY

turned to contractors rather than permanent hires. “I never wanted to have a layoff, and in my nineteen years I never had one,” Seay says. ALIGNING WITH BUSINESS FUNCTIONS As CHS grew, it resisted the notion that there is a technological answer to every challenge. Many organizations look to new systems and applications to solve business problems, Seay says, adding that it’s an unrealistic mind-set. “No operating problem will ever be solved by an IT investment,” he says. The solution can be enabled by IT, Seay explains, but the operational plan underlying the tool must be well conceived beforehand. “An IT tool creates form, structure, and discipline, and maybe enhances activity through automation,” Seay says. “But most importantly, it provides an avenue to create metrics that expose operating execution, adoption, and performance to senior leadership.” Historically, CHS has moved quickly to adopt new systems and applications—after the company sees proof that they work as intended. “I like to think that we are the world’s best second adopter,” Seay says. Major capital spending on IT goes through

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Together, we’re stronger Cerner is proud to work with Gary Seay and Community Health Systems to transform health and care. Together with our clients, we are committed to improving the health of individuals and communities. To find out how we can help you achieve your success, visit cerner.com. Cerner has been a great partner to work with in our support of CHS affiliated hospitals and their ability to provide high quality, safe patient care and medical staff service. Engaged, accountable and value driven - a great combination.

@cerner facebook.com/cerner

Š 2015 Cerner Corporation

J. Gary Seay Senior Vice President and Chief Information Officer Community Health Systems


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“There’s often a tendency for companies to think about IT as something you spend lavishly on in anticipation that you will get economic and competitive benefit. . . . I’ve never believed that.” J. G ARY S EAY

a rigorous examination process by the company’s IT Operations Innovation Investment Council. Gaining approval for a proposal by this board takes persistence and strong proof of concept. “A lot of proposals die a natural death as it becomes clear over time to the executive sponsor that the initiative will not meet the executive criteria for funding,” Seay says. “If it would not deliver a hard-dollar return, or boost quality, or help to meet a regulatory requirement, it won’t get funded.” LEAN TENDENCIES Indeed, spending discipline was at the heart of Seay’s guiding principles even during periods of rapid growth. “We’ve always focused on being lean from a staffing and cost perspective,” Seay says. “There’s often a tendency for companies to think about IT as something you spend lavishly on in anticipation that you will get economic and competitive benefit in the operating departments, in the workflows, practices, and services that IT enables. I’ve never believed that.” A lean approach permeates all operating departments at CHS, according to Seay, who believes that it has been a key to the company’s success. “Our management believes that you can accomplish very effective, high-quality outcomes in a way that is operationally efficient from a direct-cost perspective,” he says. Seay credits the organization’s success to a “culture of accountability” that demands individuals take responsibility for problems and correct them rather than trying to pin blame on others. Furthermore, he says, CHS leaders constantly monitor an extensive array of metrics to gauge the effectiveness of operations, with IT in particular, always under the microscope. “We rely heavily on metrics for recognizing opportunities, recognition of problems, for sustaining continuous improvement, and for driving objective credibility with IT’s operating partners,” Seay says. By contrast,

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Seay adds that IT in many organizations is “a space that’s often completely subjective in how it’s being evaluated.” When things went awry, Seay always aimed for swift resolution and sustained prevention of their reoccurrence. “Perfection in IT is a practical impossibility,” he says. “The IT infrastructure is so inherently complex and fragile for any corporation. That is the way I’ve been able to build personal and IT credibility with my operating colleagues.” That’s just one aspect of his legacy that Seay points to with pride as he prepares for his post-CHS life. Relishing new challenges, he is not ready to spend most of his time at the golf course or sit idly by a tropical beach. Instead, he will set up a consulting practice and may serve on a corporate board or two. No doubt, others will reap the benefits of his decades of valuable experience. athenahealth is proud to work with Gary Seay to drive efficiency and scale. We deliver integrated services for electronic health records, population health, and revenue cycle management, so healthcare organizations like Community Health Systems can coordinate care across the continuum. Unlike traditional IT vendors, athenahealth combines cloud-based software, networked knowledge, and back-office services to keep organizations profitable and ahead of change. MEDHOST is known for providing integrated clinical and financial solutions to more than 1,000 healthcare facilities nationwide. From patient access through continuity of care, our solutions help healthcare facilities become more operationally efficient while providing high levels of care. With the industry’s only end-to-end, consumer-centered approach to solving healthcare’s challenge, YourCareUniverse, a MEDHOST company uniquely enables health systems to engage consumers, enhance performance, and serve as the epicenter for meeting community health and wellness needs. MEDHOST and YourCareUniverse can elevate health system performance by breathing new life into revenue streams, clinical outcomes, and consumer relationship management. Vaco Healthcare provides customized and flexible solutions to help reduce the cost and delivery time of your operations. From consulting to placement and project staffing solutions, Vaco provides pragmatic leaders and practitioners with insight, experience, and access to strategic partnerships to bring best practices from all industries. More at www.vacohealthcare.com.


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Seek Opportunities Outside the Comfort Zone for Growth Calpine’s Stacey Peterson brings her best in and out the financial department, where she’s taking charge of work-life balance at the Fortune 500 company

Mark Johnson

By K E L L I L A W R E N C E

The saying “Get comfortable with being uncomfortable” could be Stacey Peterson’s creed, if she ever finds the time to develop one. Right now, she’s the vice president of finance and treasurer for the electricity-generating giant Calpine Corporation, and she’s also a mom of three. In other words, her days—and nights—are packed. But they’re a testament to the risks that come with stepping out of one’s comfort zone, as Peterson did when she first came to Calpine in 2007. It was enough that she was shifting from a career in consulting—where she worked with businesses of all different kinds—to a specific role within the energy industry. But upping the ante of challenges, her new employer was on its way to emerging from bankruptcy. What might scare away some, though, seemed to have the opposite effect on Peterson. “Calpine was rebuilding their internal capabilities at the time, so I saw that as a huge opportunity to come in and put my mark on something,” she says. “It’s amazing to look back and see how far we’ve come as a company.”

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Initially, Peterson was part of a minuscule structured pricing team at Calpine, operating from the trading desk. The team eventually grew to seven people. “From the ground up, we rebuilt all the models and tools for analyzing and pricing deals,” she recalls. “It was pretty exciting.” Peterson has also served in other roles, from running Calpine’s financial analysis group to running the southeast power desk— another job she viewed as light-years from her comfort zone, but says, “It gave me a totally different perspective of the commercial side of the business.” Since 2013, she’s been back to finance, doing what she calls “a really great combination of commercial and support” as Calpine’s treasurer. “I do realize that, at some point, you’ve got to pick a major,” she Stacey says with regards to Peterson her varied history. VP of Finance, “And I am getting Treasurer to that point. But right now, I’m still Calpine Corporation having fun in this role—still learning, Houston, TX still growing.”

Stacey Peterson joined Calpine in 2007 and was promoted to VP of Finance in 2013.

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“I think when you take ownership of your work-life balance, there is a sense of contentment, confidence, and professionalism that follows.” STAC EY P E T E R S O N

Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources. We serve wholesale and retail power customers in 19 states and Canada with nearly 27,000 megawatts of environmentally responsible generation capacity.

Clean. Modern. Efficient. Flexible. www.calpine.com

Learning and growing are absolutely paramount for Peterson; her “live outside the comfort zone” mind-set is a testament to it. But she doesn’t see nearly enough of it in the work arena in general. The problem, she maintains, is not with employers as much as it is employees. “On a daily basis, I see many incredibly talented people adding value to the company,” she says. “But when it comes to managing their career, they take a back seat. It’s because they don’t want to ask for what they want. They wait, instead, for that opportunity to be handed to them. But at the end of the day, everyone is accountable for the path they take, and where that path ultimately leads them.” In Peterson’s case, managing her career means delicately integrating it with her responsibilities as a parent. She has two children in grade school and a toddler in daycare, which adds hours of meal preparation, homework supervision, bedtime rituals, and endless other accounts of quality time in addition to her full-time commitments at Calpine. But as most working parents know far too well, declaring family as the number-one priority and living that declaration day to day can be the ultimate challenge. While Peterson

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never misses “the big things,” as she puts it, she’s well aware of all the little things she’s unable to experience first-hand. “Throughout my career, I’ve had to make sacrifices,” Peterson says. “And I have struggled balancing it from time to time; I’d be lying if I said I haven’t. I love Calpine; I love what I do every day. But I love my family, and I do struggle. It’s a constant reevaluation of the tradeoff.” Still, the professional dividends keep coming. The latest is a new Calpine initiative, spearheaded by Peterson and two other women, which hones in on diversity and inclusion. “I think this is something that could be pretty transformative to Calpine’s culture,” Peterson says. And the personal dividends? She gets them every time she feels like she’s shown her daughters they can be whatever they want to be—and a mom. And be great at both. “People are afraid to set boundaries,” Peterson says. “But I think when you take ownership of your work-life balance, there is a sense of contentment, confidence, and professionalism that follows. The impact will be evident not only in your work life, but in your home life as well.”


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John Feehan EVP, CFO Patriot Media Consulting Princeton, NJ

Nothing But Net John Feehan is spinning customer focus, startup style, and team trust into tidy profits as executive vice president and CFO at Patriot Media Consulting By J A C O B K E N L E Y W I N C H E S T E R

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The trend in telecommunications today is consolidation. Large corporations buy up small companies, hoping to crop costs and shrink the competition. But to John Feehan, bigger infrastructure is not necessarily better when it comes to benefiting the consumer and managing a successful business. As executive vice president and chief financial officer of Patriot Media Consulting, a company that acquires regional telecommunications properties, manages daily operations, and acts as an executive branch, Feehan is crafting small cable and data providers into desirable assets without sacrificing customer needs, team freedom, or the bottom line. Feehan began his career as a certified public accountant for Pricewaterhouse, where he soon discovered the position wasn’t his ultimate

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OFF THE CLOCK WITH JOHN FEEHAN When Feehan isn’t working, you can find him on the court coaching his son’s team in youth basketball. “Being part of organized team sports, I think, prepares you very well for life. You’re going to have a job, and you’re going to have a boss. And that boss is going to both expect you to do things and to tell you goals and tasks you need to accomplish,” he says. “A lot of times in life you’re going to win and lose as a team—not always as individuals. That’s something you need to know how to do. It’s more satisfying ultimately to win as a team and share that with a team, than to do well by yourself and have the team lose around you,” Feehan says.

goal. “It was a good starting point for me to get my feet wet,” he says. “And I liked it because I got the chance to see a lot of different types of companies and industries—both large and small—as we were doing audits and advisory services.” Feehan wanted to explore those industries and learn how to manage companies rather than simply audit them. Through the early part of his career, he cultivated his urge for exploration and worked in myriad industries including manufacturing, high-tech software development, pharmaceutical distribution, electrical distribution, and the service industry, gathering valuable leadership techniques along the way before eventually finding himself in telecommunications. In 2001, when fledgling wireless provider Virgin Mobile USA was seeking its first finance department hire, a former colleague tapped Feehan for the job. He came aboard as senior vice president of financial operations. From there, he ascended the ranks to CFO and led Virgin Mobile USA’s initial public offering in 2007. “That was a lot of fun. We were a startup when I joined Virgin,” he recalls. “We didn’t have any customers. We didn’t have any

“It’s not about whether they become the best basketball players or soccer players but about learning the fundamentals of how to compete, how to be a good teammate, how to support the team, and how to listen, take guidance, and just get better.”

John Feehan with daughter Kaitlyn Feehan and son Jack Feehan in their basketball uniforms.

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revenue. We just had a business plan and wanted to try to make it work.” And it did. Under his financial leadership, the company grew to become one of the top wireless carriers in the US, boasting revenue in excess of $1 billion and a customer base of more than five million subscribers. When Sprint/Nextel acquired Virgin Mobile USA in 2009, Feehan stayed on as CFO. But after a year in the position he found himself longing for greater challenges. “I wanted to get back to a pre-IPO or a private company that was growing, and I wanted to start again,” Feehan says. In his current role at Patriot Media Consulting, Feehan has managed to do just that. A small company with thirteen employees, the culture is characterized by team interplay and a highly cooperative work environment. “While we have our roles, they’re not boxed roles. We’re all businesspeople, and we’re all intimately involved in every aspect of the company,” says Feehan of the executive team. “So while I’m the finance person—the CFO—I am just as involved in everyday operational issues of the company as the chief operational officer and CEO are involved on a daily basis with the financial issues.” Patriot Media Consulting’s tight-knit executive team does not, however, restrict its properties from operating with the freedoms often associated with startup companies. Currently, those properties include RCN, a cable company operating in multiple market’s along the east coast as well as Chicago, and Grande Communications, a Texas-based telecom provider. “We don’t like a very heavy corporate structure,” Feehan explains. The frontline managers of local offices are encouraged to operate branches as if they were their own small business. This includes making key entrepreneurial decisions about the availability of products, services, and even channel lineups or price offerings based on the customer’s needs in a given region. “What may be good for a customer in Boston may not be good for a customer in Lehigh Valley. Or what may be good for a customer in Dallas, Texas, may be very different from a customer who lives in Midland-Odessa,” Feehan says. Granting local offices the freedom to make operational decisions as close to the customer as possible is at the core of Patriot Media Consulting’s formula for success. “If you take care of the customer, everything else takes care of itself,” Feehan says.


TA L E N T

“We didn’t have any customers. We didn’t have any revenue. We just had a business plan and wanted to try to make it work.” J O H N F E E HA N

And while it may seem counterintuitive to steer a property toward new growth by loosening the corporate reins, Feehan believes this is what truly effective leadership is all about. “My management style is to empower the people who work with me and to allow them to make the decisions they need to make in order to be successful,” he says. “Hire good people and then get out of their way so they can do their jobs.” Feehan believes his responsibility is to provide employees with a general framework, necessary support, and a clear direction consistent with the goals of the parent company. Employees may make mistakes or organizational decisions that Feehan wouldn’t necessarily make, but that’s all part of the learning process that enhances an employee’s decision-making capabilities. “If you hire good people and you trust them and believe in them, and give them the guidance that they need, nine times out of ten they’re going to make good decisions and do good by you,” he says. As for advice to aspiring leaders in any industry, Feehan says, “Speak up. You will learn more from getting your opinions out there and allowing other people to hear them—and comment on them—than you will by keeping them inside.”

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SunTrust Robinson Humphrey is extremely grateful for our long-standing partnership with John and the entire Patriot Media team. We are proud to have represented you as your lead strategic and capital adviser and are very much looking forward to working together to write the next exciting chapters of the Patriot story.

www.suntrustrh.com SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc. and its subsidiaries. Securities underwriting and M&A advisory services are provided by SunTrust Robinson Humphrey, Inc., member FINRA and SIPC. | Lending, financial risk management, and treasury and payment solutions are offered by SunTrust Bank. | Deposit products are offered by SunTrust Bank, Member FDIC. © SunTrust Banks, Inc. All rights reserved.

BDO congratulates John Feehan on his accomplishments and well deserved professional recognition.

John Tucci Assurance Partner BDO Woodbridge Office 732-750-0900 Accountants and Consultants www.bdo.com

© 2015 BDO. All rights reserved.


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Martin Trueb SVP, Treasurer Hasbro East Providence, RI

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Ahead of the Game Hasbro’s Martin Trueb taps his international experience and financial prowess to guide the iconic toy and game company to expansion By S A R A H K O L L M O R G E N

W

When Martin Trueb moved to the South American city for his first job after earning his master of business administration, finance, and international business from University of California, Berkeley, he didn’t know what to expect. The sprawling seaside city of Rio de Janeiro, Brazil, is known for its pristine beaches and bordering gritty favelas. It’s a city of poverty, wealth, history, and energy. “It taught me a few things,” Trueb says. “One: visiting a place and living in a place are quite different.” While he was there, Trueb saw the Christ the Redeemer statue, learned to speak Portuguese, and hiked Sugarloaf Mountain. And although his experience working in Brazil was brief—he was only there a year before his company moved him to Miami, Florida—the lessons he learned would pave the way for a career in international finance and working with foreign clients. Today, Trueb is the senior vice president and treasurer of Hasbro—the company best known for iconic brands including Monopoly, Transformers, Play-Doh, and My Little Pony. Over the past few years, Hasbro has grown

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THE RIGHT RELATIONSHIPS MAKE YOUR VISION A REALITY.

Your vision is a major factor in driving your business forward. And so are the right relationships. Scotiabank’s unwavering commitment to our clients and their business needs has earned us the privilege of working with many of the world’s leading companies, including Hasbro – a Scotiabank client since 1984. Hasbro is a global company committed to Creating the World’s Best Play Experiences, by leveraging its beloved brands. From toys and games to television programming, motion pictures, digital gaming and a comprehensive lifestyle licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. We thank Hasbro and all of our valued clients for allowing our expertise to contribute to their success. We build strong relationships to put a world of opportunity within your reach. Let us show you how. gbm.scotiabank.com

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TA L E N T

HASBRO HOUSEHOLD NAMES From action figures to board games to comics, to dolls and plush, apparel, and even party supplies, Hasbro has it all.

Bumble Bee This Transformer is taking the lead in saving Earth. He and the team are trying to defeat the Decepticons. Play-Doh Pals The 1950s Play-Doh mascot was an elf, replaced quickly by Play-Doh Pete, a boy wearing a smock and beret, and later, a baseball cap. Since 2011, living Play-Doh cans have replaced Pete as the mascot.

Monopoly Monopoly, first introduced in the 1930s, is still popular today. It has been locally licensed in more than 103 countries and printed in more than 37 languages. My Little Pony My Little Pony has been revamped at least four times since its inception to offer new looks to appeal to changing markets.

Offering insurance, risk management, and related services to a global economy… significantly. As Trueb puts it, when he started at the company more than eighteen years ago, Hasbro toys and games were primarily “on the kitchen and living room floor.” Today, in addition to traditional toys, Hasbro brands can be found on screens, too: the company created its own wholly owned studio, Hasbro Studios, to create entertainment-brand-driven storytelling across media, including television, film, and more. Annually, Hasbro pulls in over $4 billion in sales, and its products can be found in more than 120 countries, from Argentina to Romania to New Zealand. Officially, Trueb’s role at Hasbro consists of managing Hasbro’s treasury operations, insurance activities, and order-to-cash activities. However, Trueb says what he most enjoys is that his job is not a traditional

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treasury role. He also deals with risk management and insurance activities. Due to Hasbro’s growth product-wise and abroad (Hasbro recently opened in Brazil and Russia, and expanded in China), Trueb must consider a slew of factors, such as how to finance and insure television production, how to deal with fluctuating foreign exchange rates, and how to ensure the infrastructure is in place for foreign operations, in addition to deciding how to best invest and use the company’s finances. “Treasury has enormously changed since I’ve been [at Hasbro]. Not only within the business, but the entire financial environment,” Trueb says. Ultimately, much of Trueb’s job comes down to making sure business runs smoothly, with foreign economies and clients, which involves more than crunching numbers. “We’re in many locales we weren’t before, and

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www.starshep.com 800-854-4625 RI•MA•CT•FL


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Hasbro is pleased to recognize the leadership and accomplishments of

Martin Trueb Today, Hasbro is building great teams and creating the world’s best play experiences.

From toys to technology, count on MUFG At MUFG, we believe every solid relationship starts with a solid understanding of your business, industry, and perspective. With over $2.3 trillion in assets* and 1,100 offices in more than 40 countries, we stand ready to meet your needs.

© 2015 Hasbro. All Rights Reserved.

Please contact: Arnold Schraa Managing Director 212-782-4467 aschraa@us.mufg.jp

*Exchange rate of USD 1 = ¥122.45 (J-GAAP) as of June 30, 2015. ©2015 Mitsubishi UFJ Financial Group, Inc. All rights reserved. The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc.

they all bring their own foreign management and cash management challenges,” he says. “You need to really understand the business and be a partner. Instead of just being good at what we do, we need to make sure we’re good for everybody else.” Trueb believes that his time working and living in different places around the world and in the United States has taught him to be less judgmental and to look past superficial cultural differences to understand what people are trying to convey. Just because someone might not be completely fluent in English, he says, doesn’t mean they don’t know exactly what they’re talking about. Trueb earned his bachelor’s degree in science from California State University–Fresno and joined Schering-Plough in Brazil after earning his master’s degree at University of California, Berkeley. In 1981, he joined RJR Nabisco, a tobacco and food product company, which took him to Florida, North Carolina, Georgia, and New York—not including nearweekly travel. Trueb then went to work for Amway before joining Hasbro in 1997. He says his time at Hasbro is the longest he has been in one place and with one company. Trueb is also a member of the International Finance Group and Treasurers Group of Thirty, serves on the Advisory Board of International Treasurer, and is a member of the Governor’s Workforce Board of the state of Rhode Island. “As I look back on it today, what I learned was that you can find reasons to be happy or unhappy wherever you are,” Trueb says. He emphasizes—especially for individuals early in their financial career—taking time to gather experience in order to make good decisions. For example, Trueb says it was through his experience at RJR Nabisco that he was able to help Hasbro through financial challenges in the 2000s. “It’s more than getting the right answer,” he says, “It’s understanding the process, too.” Trueb advises young workers to know when to move—whether that’s geographically, within a company, or career-wise—and be open to it. For Trueb, lateral development is just as important as upward development. “You have to be where the opportunity is,” he says. “Your ability to go to opportunity is critical, because opportunity will seldom come to you.” Trueb says that each place he has lived throughout his career thus far has had its pros and cons. However, in the future he wouldn’t mind living somewhere with a yearround temperate climate. “At the end of the day, I’m happy where I am,” he says. “I have fond memories of everywhere I’ve lived.”

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Aon Risk Solutions is proud to support Martin Trueb, Senior Vice President & Treasurer, for his extraordinary contributions to Hasbro, Inc.

We

recognize

SucceSS

Visit aon.com to see how Aon is helping organizations committed to excellence address risk and shape their workplace of the future.

Risk. Reinsurance. Human Resources.


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Mentorship Wins the Game on the Field and in the Boardroom Mark Schuermann learned many lessons as a star athlete that influence how he leads at Scripps Networks Interactive, where the treasurer shares his leadership principles to help others reach their goals By J E F F S I LV E R

In high school, Mark Schuermann won two state soccer championships and set scoring records. Later he set records with his Division I college team. Clearly he’s accustomed to excelling in his endeavors. This was certainly the case when he joined Scripps Networks Interactive in 1998 (then known as The E.W. Scripps Company) as senior auditor. Ten years later, at age thirty-six, he had risen through the ranks and was named senior vice president and treasurer of the Fortune 500 company. Much of Schuermann’s work ethic and many of his professional accomplishments relate directly to the sort of qualities often associated with sports: contributing as part of a team, knowing how to adapt to changing circumstances, and overcoming challenges. But he believes that sports also taught him a great deal about leadership and how to appropriately gauge his own performance. USING THE RIGHT MEASURING STICK As a top-performing center midfielder, Schuermann took on team leadership roles at an early age. He also recognized that he could control certain outcomes, like playing harder or practicing longer to score more frequently. But things changed in college, where he found more players at his advanced skill and talent levels. There he learned that there are times on the field—as there are in a business career—when the best efforts may not translate into the desired results. “You have to have the self-confidence to know that you did your best and tried every strategy you could,” Schuermann says. “The wins and

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Mark Schuermann SVP, Treasurer Scripps Networks Interactive Knoxville, TN

losses become less accurate measures of your success. It’s about how well you did your job.” That principle serves as a reminder to him to be adaptable as a leader and manager. He recalls an instance with a previous company when the conclusions of an audit project were not what his manager expected. As a result, the project group was blamed for how the audit was executed. “As a leader, you need to step back and assess whether your expectations are appropriate,” Schuermann says. “If you trust your people, you have to be willing to acknowledge your own role in unexpected or undesirable results.” That perspective is in keeping with the importance he places on leading by example. Schuermann feels that this applies to everything, from how a leader dresses and talks to his or her team to being authentic and approachable—even to taking risks. “You have to encourage your team to take chances,” Schuermann says. “It helps them grow, feel empowered, and that they’re contributing and making a difference. As a leader, the hard part is that you have to stay genuinely open to their ideas and accepting


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of the possibility that they might fail.” Schuermann put this philosophy into practice last year during Scripps’ recent $2 billion acquisition of TVN, Poland’s premier multiplatform media company. As the largest acquisition in the company’s history, there were limitations on disclosing proprietary information before the deal closed because both companies are public. As a certified risk manager and certified M&A adviser, Schuermann had to let the Scripps teams he managed proceed with certain calculated risks as part of due diligence. MENTORING AS A PART OF LEADING Surprisingly, Schuermann never had formal mentors as his career progressed. Instead, he identified individuals he admired and asked them lots of questions. Although he still had to figure out day-to-day challenges on his own, he feels the diversity of perspectives and opinions he collected was tremendously valuable. Today, Scripps’ treasurer thoroughly enjoys providing employees with the guidance he had to seek on his own. However, he finds it challenging (both for himself and his mentees) to make time in the digital workplace where everyone is routinely asked to do more with less. Before there were so many digital connections and intrusions, he remembers when it was much easier to talk with employees and focus on being a good leader, manager, and mentor. “Today it’s much more difficult to devote time to developing people’s skills and talents,” Schuermann says. “You have to find new ways to bring them along, like delegating responsibilities and empowering them to make decisions.” Another tactic Schuermann uses is providing firsthand experience to new employees by bringing them into meetings where they have no experience or expertise. He then spends time with them afterward to answer questions, provide a broader context, and ensure they have a clear view of what they need to learn and how they can contribute in the future. Yet, Schuermann also cautions younger employees to strike a balance between their education and work experience. To illustrate, he refers to new MBA graduates who have gone through undergraduate and graduate school without ever having worn a suit or been in a business meeting. “Work experience is frequently undervalued, so as smart and capable as today’s students are, they need to understand that there’s a progression as you work your way up in your career. Being patient and getting the right training at the right time are all part of the process everyone has to go through,” Schuermann says.

“You have to encourage your team to take chances . . . . As a leader, the hard part is that you have to stay genuinely open to their ideas and accepting of the possibility that they might fail.” MAR K S C H U E R MA N N

It is worth noting that he has followed his own advice. Schuermann was certified in risk management and as a merger and acquisition adviser only after he had been treasurer for several years. LEADERSHIP IN A CHANGING ENVIRONMENT Schuermann admits that today’s workforce is more adaptable to frequent changes than most of the individuals charged with leading them. That makes it important for managers and executives to stay well informed, to understand industry dynamics, and how shifts impact the business. “If you can’t change, you’re a less effective leader. It’s important to learn how to improvise in this new world,” Schuermann says. But how does the treasurer manage so many shifts and changing priorities? Schuermann refers to his family as the one constant that inspires him. “They depend on me, so it’s like being part of a different kind of team,” he says. “I still do whatever it takes to get the job done. I’m just not kicking a ball around anymore.”

Businesses count on our experience and strategic legal insights to: Stay ahead of regulation. Expand operations. Manage risk. Protect innovation. Get more things done.

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Cybersecurity’s First Responders FireEye’s SVP of business operations and CIO Julie Cullivan reveals how the network security company is using business intelligence to help companies prevent cyberattacks—before they do damage By S T E P H A N I E S . B E E C H E R

For Julie Cullivan, working in Silicon Valley following college was the equivalent of getting thrown into the fire. It was the late eighties, and like many who descended into the budding startup ecosystem, she was immediately steeped in the culture of fast-growing tech companies, replete with big ideas, rapid execution, and the region’s insatiable thirst for innovation. Though she often found herself on the operations side of the business, an early opportunity in sales propelled her career—and shaped her technological expertise. “I think what is interesting when you work in Silicon Valley is that you come into these companies where you not only had to understand what the company did, and why it was valuable, but you actually had to get quite technical to do your job there,” Cullivan says. “I really cut my teeth.” Yet, despite roles at Oracle, EMC, and McAfee (now Intel Security) under her belt, Cullivan feared she lacked the experience when she was asked to help oversee business operations at FireEye, a publicly held network security company. In fact, she says it wasn’t until after her interview that Cullivan realized the company was looking for a chief information officer. She had to think about it. “I’d never been a CIO before,” Cullivan explains. “And there were other ‘true experts’ in the field. But I found that understanding

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Julie Cullivan SVP of Business Operations, CIO FireEye Milpitas, CA

the business side of things really helps when looking at technologies and business improvements to make the company more efficient and profitable. All the roles are about execution. It’s helped me to build relationships with key stakeholders on the business side.” Those relationships have proven invaluable. Cullivan accepted the position in 2013—just nine months before FireEye went public—meaning even more eyes were positioned on the company to see how it would perform. Now, while FireEye has been around for about a decade, Cullivan says its business has exploded over the past four years. It’s not hard to see why—cyberattacks are on the rise. “The threat landscape has changed dramatically,” Cullivan says. “I think what we’re finding is that attackers are far more sophisticated, often well-funded, and extremely persistent. The stakes are getting higher.” It seems like every week a major corporation has fallen victim to the nimble work of cybercriminals, but it is less commonly


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WHEREVER BUSINESS TAKES YOU, YOUR DATA IS READY. WELCOME TO DATA FABRIC

netapp.com/datafabric

“A lot of companies have been breached and they don’t even know it. That’s where the real risk comes in—what kind of information were they able to extract, what kind of malware were they able to inject? It’s not an IT problem—it’s a company risk problem.” J U L I E C U L L I VA N

© 2015 NetApp, Inc. All rights reserved. No portions of this document may be reproduced without prior written consent of NetApp, Inc. NetApp and the NetApp logo are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.

known that attackers have access to a breached system for an average of 205 days before they are detected. Most breaches occur to companies significantly smaller than the corporations that make major news headlines, and 97 percent of systems are still breached, despite having security systems squarely in place. It’s safe to say that FireEye is a leader in the cybersecurity space. On a technical level,

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the network security company provides “automated threat forensics and dynamic malware protection against advanced cyber threats.” In more relatable terms, FireEye helps companies prevent embarrassing or detrimental data breaches as well as respond to many breaches that have already taken place. FireEye has more than 4,000 customers in sixty-seven countries—including more


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than 600 customers who fall on the Forbes Global 2000. Multinational professional services firm Deloitte called FireEye the fastest growing cybersecurity firm in North America. Since 2014, cybersecurity incidents have increased by roughly 38 percent, with the cost of a single data breach reaching a cool $3.79 million. Simply put, having good security is no longer good enough. Companies are finally ready to take a proactive—rather than a reactive—stance against cybercrimes, according to Cullivan. “A lot of companies have been breached and they don’t even know it,” Cullivan says. “That’s where the real risk comes in—what kind of information were they able to extract, what kind of malware were they able to inject? It’s not an IT problem—it’s a company risk problem. I don’t have to convince people this is a problem. It’s becoming much more real to everybody.” Implementing an effective cybersecurity program can seem like a Sisyphean task. “When you’re responsible for protecting an organization, it’s a big burden to bear,” Cullivan says. Yet, FireEye thrives due to its adaptive defense model. Most other security firms’ technology has to understand a threat to protect an organization from it. FireEye builds technology that identifies unknown malicious or suspicious activity—and allows an organization to analyze and prevent it before it is deployed. While security breaches are often inevitable in this day and age, they don’t have to be detrimental. In addition to creating and leveraging the right technology (such as the cloud), FireEye heavily relies on its exclusive trove of security intelligence—an asset that allows the company to detect, analyze, and prevent cybersecurity threats in real time. “We have incredibly strong intelligence information, not just about the attacks themselves, but who might be behind the attacks, and what tactics they use,” Cullivan says. “Often with these attacks there is a chain: it starts with one event, but then creates vulnerabilities in other areas. We look at the entire attack rather than just the event.”

FireEye achieves this by recognizing the importance of having a security-as-top-ofmind team across the entire IT organization, according to Cullivan. When she first arrived at FireEye, the CIO says her team was “very small and barely hanging on.” But as the company’s growth exploded globally, she had to build up her team of twenty to more than 180 people. Having a seat at the executive table and great alignment with her peers made that growth possible. “We’re able to leverage all of FireEye’s technology, intelligence, and services to help us augment our own staff,” Cullivan explains. “Staying on top of security threats takes constant, continuous attention and education.” Perhaps those days in Silicon Valley have created an effectual CIO, after all. “It’s certainly been interesting from a market opportunity perspective,” Cullivan says. “We’re kind of like a company of first responders. That’s exciting. But as much as I see opportunity for FireEye products and services, it means we have to be very focused on protecting our own organization with better technology, better intelligence, and a prioritized way of reacting to any noise in the system.” That combination of the right technology, program, and people is what keeps companies ahead of sophisticated hackers, according to Cullivan, who adds, “No CIO can protect the organization alone.”

Whether you are running your application in a public cloud or a private cloud Blue Chip Tek is the right partner for you. Blue Chip Tek delivers practical, competitive and innovative services and solutions enabling our customers a disruptive edge in transforming their businesses. BCT’s highly qualified engineers, architect and implement technology, IT solutions, and processes custom-fit for businesses – from startups to enterprises.

Data storage and management company NetApp provides IT storage for FireEye’s security engineering group. With NetApp FAS storage, FireEye is able to improve IT performance and agility while delivering on its corporate strategy. No other storage vendor, except for NetApp, provides the level of performance and growth capabilities FireEye needs.

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Troy Hardeman Chief Compliance and Technology Officer Ceannate Corporation Rolling Meadows, IL

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Hardwired for the Personal The dynamic relationship between technology and people has always fascinated Troy Hardeman, from his first computer to his current role as chief compliance and technology officer at Ceannate Corporation Words by U R M I L A R A M A K R I S H N A N

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Photo by C A L E B F O X

Troy Hardeman remembers his family buying their first computer when he was just seven years old. It was 1977, and the TRS-80 Model had just come out. His family bought it at the local Radio Shack, and that’s the moment he says he fell in love with technology. Hardeman grew up in a small farming town of 1,600 people. He used to work on the fields bailing hay, and he got his first job in 1993 with The Coca-Cola Company shortly after graduating with a bachelor’s degree in information systems. Yet his heart was always fixated on technology and computers. After five years at the company, Hardeman went on to teach software classes at MicroGroup and took on a network-engineering role. In that time, he taught himself various aspects of information technology. “Perseverance is key,” Hardeman says. “It’s equally important to know that you’re never going to have all the right answers. You have to put aside what you think you know in order to learn what you don’t.” That’s what Hardeman did, which helped him advance to his current role as the chief compliance and technology officer at Ceannate Corporation, where he is responsible for infrastructure, information security, business continuity, compliance, and facilities. He continues to put the people side of tech first.

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Hardeman credits his involvement with Pathways To Successful Living Seminars and an online series of Savvy Service articles for his focus on communication and relationships in the technology space. “Tech drives a large portion of our world, but at the end of the day it’s still people who live in it,” Hardeman says. Part of Ceannate’s core business deals with consumers—providing services to student loan borrowers—so the people side of technology is that much more important, according to Hardeman. To keep people at the forefront, Hardeman says it starts with trust and education. People need to be in a space to learn and feel that their opinions and positions are welcome, he explains.

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Without education, integrity, accountability, and compassion, learning can’t occur. It’s what drives Hardeman in his accomplishments in compliance and technology. The compliance and tech leader’s first major accomplishment with Ceannate was implementing an information security program in 2008. The program was based on the US Federal Information Security Management Act, National Institute of Standards and Technology Special Publication 800-53, and the Payment Card Industry Data Security Standard, which the company needed before it could perform work on behalf of the US Department of Education. Becoming fully compliant meant that Hardeman and his team not only had to implement the program, but also had to be in good standing each year without any flaws. With chip credit cards and PCI security standard changes, Hardeman has updated and improved the system to continue compliance. He’s also worked with his team to implement an infrastructure that’s reliable, scalable, growing, and ever-changing without variance in the company’s budget.

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With technology constantly evolving, Hardeman has to deal with the threat of irrelevancy—keeping up with progress is essential. Compliance and productivity are often in direct contradiction, but the key is in having a constant dialogue with the team, according to Hardeman. It hasn’t always been easy. There have been a few failures along the way in adopting or upgrading a product. “It all went back to key things,” Hardeman says. “Lack of communication, not enough delegating, too much delegating, or having the ‘one man can do it all’ syndrome.” Hardeman has learned to recognize that other people have different beliefs and values despite his own expectations or beliefs. He strongly believes in the fact that everyone is an individual, and he strives to work with the best version of each individual on his team. He’s learned to challenge his team by asking the right questions, which he counts as his strongest asset in empowering the people behind technology. Strong collaboration and relationships exist within Ceannate’s executive team, especially those with CEO Balaji Rajan and president Maureen Peterson. Hardeman credits them with furthering his understanding of the need to bridge the divide between people and technology. To maintain that relationship, he understands that when areas of technology transform, strategies for the people behind such technology must be modified as well. The constant changes in compliance and technology make long-term planning all but impossible. Hardeman has led his life like his work: he loves what he does every day. His ability to translate technology to people and to manage emotional reactions is a valuable skill he’s acquired as Ceannate’s chief compliance and technology officer. Hardeman hopes his work in strategy and compliance removes conflicts in technology. “I’m never satisfied, and I know we can always do something better,” Hardeman says. “Motivation is my insatiable thirst. Even perfect can be improved upon because perfect is only a description of what exists at a moment in time.”

Troy Hardeman hired LaSalle Solutions to reduce risks and better meet compliance needs through Lease Programs. Troy’s team found that using LaSalle’s services with their cloud-based portal, LAMP, Ceannate’s IT equipment is always up to date, they better manage their information, and have seen better use of technology resources.


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Stephan Daub

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Attention Seekers Consumer engagement calls for innovative thinking in the mobile world, and SAP’s Sethu M. garners new ideas that allow the software giant to tap into valuable pools of data By B R A N DY G O N S O U L I N

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When the iPhone 4 launched in 2010, tablets were gaining traction and the consumer enterprise—as well as business—was decidedly moving to mobile. For multinational software corporation SAP, this meant that more than 200,000 businesses, all of which relied on the company to connect and interact digitally with customers, would be looking to SAP for leadership during this transition. To lead them into the mobile-database space, Sethu Meenakshisundaram, then SAP’s deputy chief technology officer, started with an acquisition strategy, acquiring mobile companies Sybase and Syclo to form SAP’s mobile initiative. As part of the acquisition, SAP also acquired Sybase 365 LLC, an independent unit within the company. Once he had taken over as president of Sybase 365, Sethu then looked to three areas to establish leadership: content integration, consumer experience, and security. First, Sethu and his team needed to enable secure content integration across all mobile devices and consumer access points, including those coming from the cloud. “To mobilize it, you needed to be able to program it in such a way that customers have access to broad corporate data, but also make sure it is secure,” Sethu says. For large-enterprise customers working from multiple SAP systems, secure access to corporate data integrated seamlessly across all mobile devices is an area that Sethu credits SAP for its leading efforts.

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Sethu M. President of SAP Mobile Services SAP Palo Alto, CA

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Then Sethu turned his attention to the consumer experience, focusing on design and development. Consider why websites work outside of a desktop computer experience and how every device needs specific development. Part of a digital strategy that encompasses that development includes seamless integration across all devices. Creating a successful digital experience across the world’s 4.5 billion unique mobile users—especially in emerging countries like India and South Africa, where consumers engage on a variety of mobile devices and some without data—starts with helping developers build it. For SAP, this means understanding what its enterprise customers need, which is to simplify development. “If you ask me, if there is one thing that is critical, it’s how you maximize the speed of development and make the customer experience a delight,” Sethu says. At SAP Mobile Services, for instance, developers can now use simple application program interface (API) to push the intelligence into the network to create a seamless consumer experience. For enterprise customers, this means that a business can focus on productivity and connectivity via a seamless mobile strategy versus lengthy development periods through SAP Mobile Services’ interconnect services. During development, paying attention to effective security is crucial, Sethu says. While mobile presents opportunities for businesses, it also presents many challenges, especially with the possibility of a data breach. But it doesn’t just start and end with devices, and Sethu says that a security strategy starts with multifactor authentication rooted in location-based security. “As our mission is to connect and secure, it is just not securing devices or data that can be retail data or a customer’s data, it can be multiparty or single party,” Sethu says. “So we put in a significant effort to secure mobile addresses on both consumer and employee devices.” Such technology must also be sensitive to the consumer experience. “There are productive ways to use the technology in the interest of customer security, but it has to be selective,” Sethu says. “You want to reduce the possibility of fraud, but you don’t want to overburden the consumer. It is a very fine line that needs to be managed.”

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In today’s digital space, consumer experience isn’t just about responsive design, but about relevant and timely digital connections. Now, SAP Mobile Services is focusing on more immersive experiences through the emergence of Mobile Relationship Management (MRM) and ambient data, which means data surrounding the user. Like loyalty programs and SMS notifications, MRM centers on managing customers through their mobile experience, effectively delivering the right message at the right time. But with data comes responsibility. Take the case of geofencing and geotargeting, which describes the process of delivering messages to customers based on their location or behavior—a tactic used widely by Target to engage lost shoppers. Used effectively, this targeted engagement could lead to increased sales. Used wrongly, it could have the unwelcome side effect of alienating a customer and even breaching security. This balance is where the idea and opportunity of ambient data comes in, according to Sethu. By identifying the personality of the device through surrounding data like location and habits rather than the person, and tracking mobile users in an aggregate fashion, SAP can now create a mobile personality without breaching customer anonymity as a sort of collective consumer. This knowledge then creates opportunities for more targeted engagement, such as knowing where groups of sports fans may go after a game and targeting them based on that behavior. “In the digital economy, more and more enterprises are trying to reach consumers directly, but in the emergence of MRM, you have limited options of what the customer wants to see, so you need to do this at the right time and the right moment,” Sethu says. “You need to manage engagement.” With Sethu’s continued leadership and eye for innovative opportunity, SAP’s transition to mobile maintains its success. SAP Mobile Services is revolutionizing and influencing the way businesses build strategy by providing clients with a platform that creates meaningful connections and brand loyalty through consumer-driven technology. “Ambient data plus MRM is key to the customer,” Sethu says. “There is a significant traction with working with carriers and making sure that, without violating privacy, we can engage in a non-invasive way to garner consumers’ attention.”

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Learning to Fly With Efficient Data Decision Making When Valero Energy spun off its retail division into CST Brands, Tammy Floyd helped turn years of careful observation into rapid growth By K E L L I L A W R E N C E

The core values of a business can reverberate with its employees for quite a long time after a given employee parts ways with that business. Tammy Floyd, current vice president and controller for San Antonio-based CST Brands, was recently reminded of this while interviewing several prospects for an opening within the finance department. “I asked them to name one of the first things they would do if they were hired,” Floyd recalls. “And they all said the same thing: the first thing they’d do was get clear on what exactly was expected of them, so they could set out to meet those expectations.” All of these interviewees were former employees of former Big Five accounting firm Arthur Andersen—as is Floyd. She was with the firm from 1994 through 2002. The clarify-expectations-and-meet-them mentality instilled in her at Andersen stayed with her when she came on board with Fortune 500

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company Valero Energy in 2002, starting in the budget and forecasting department for four years before moving to the retail controller role for a one-year stint and later into the vice president of operations accounting for four years. “It was looking at the business at a very high level, preparing presentations, working with corporate development to model potential acquisitions,” Floyd says of her budget-forecasting days at Valero. “When I was in that role, I thought it was the best in the whole company.” But when Floyd became retail controller in 2007, she says she gained a great sense of appreciation for operations that gave way to a better understanding of acquisitions and a deeper appreTammy Floyd ciation for the VP, Controller transactional level CST Brands detail and how it drives all other San Antonio, TX activity.

Tammy Floyd joined CST Brands in May 2013 after more than ten years at Valero.

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“Understanding the actual transaction and following it all the way up the chain enables you to answer operational questions,” Floyd explains. “When we do integrations, we have to go into it thinking, ‘How am I going to capture the data so I can report it in a way to allow the operators to make good decisions?’” It was in 2011, when Valero acquired Chevron’s Pembroke Refinery—which had operations across the United Kingdom and Ireland—that Floyd recalls some of her most vivid lessons. “They had a lot of disaggregated systems, which caused the staff to perform multiple reconciliations to ensure that each reporting unit had complete results,” she says. “It took them a really long time to close their books. But we were able to create an integrated system that better utilized personnel and yielded a lot more efficiency, and provided better data.” When the time finally came, in 2013, for Valero to spin its retail operations off into the publicly traded CST Brands, Floyd found her longtime supervisor and mentor at Valero joining the CST family as chief financial officer. She quickly followed suit as CST’s controller. In doing so, she’s now part of one of the largest independent retailers of motor fuel and convenience merchandise in the United States and eastern Canada. Part of Floyd’s challenges that come with such a “new” business and bringing the US and Canadian entities together was a standout issue for Floyd and her team. Previous considerations of a CST-like spinoff business had not included Canada, so interaction with those offices had been minimal. Once that changed—gradually, as Canada’s Quebec-based offices also resulted in a language barrier—it became clear how thin-stretched the accounting and finance team was. “I would say creating the infrastructure for that public company was a challenge,” Floyd says. “It was the rare opportunity to be an entrepreneurial company with a thirty-year history.” In order to do that, she had

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to merge the two segments together and create the supporting infrastructure, the appropriate limits of authority for transactions, financial reporting, SOX compliance, and separate audits. In addition, she created appropriate key performance metrics. In just three years, CST has grown with acquisition activities to include the purchase of 100 percent of the equity interest of CrossAmerica Partners’ General Partner, Nice N Easy Grocery Shoppes, Landmark Industries, and Flash Foods Inc. As Floyd’s work at CST pulls farther away from her days at Valero—more acquisitions and integrations, fewer routine days of operations—she’s also able to better cite the way CST’s core values—servant leadership, entrepreneurial spirit, and strategic thinking and innovation—steer the company toward success. Although servant leadership is not specifically named as a core value at Valero, Floyd explains, it is shared by both Valero and CST. She also credits CrossAmerica with the idea of entrepreneurial spirit. As for strategic thinking and innovation, she believes those two values are intertwined. Floyd points to the company entering the MLP market by buying the equity interest in CrossAmerica’s general partner as a great example of strategic thinking in action. “That’s not typically done,” she states. “Most people that want to be in a master-limited partnership form their own. But we gained control of CrossAmerica through our acquisition and with it we also got into the wholesale business and acquired market expertise from the partnership’s high-caliber personnel.” Growth for CST in the year to come looks to be in already-established markets, with one notable exception—the Georgia and Florida markets that are now available to it by way of its 2016 acquisition of Flash Foods Inc. “That’s the largest acquisition that CST has ever done,” Floyd says. “Those kinds of accomplishments are indicative of the core values we have established.”

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Healthy, Robust Growth for a Global Brand Tom Madsen expands the Jamba Juice presence around the world as brick-and-mortar retail shifts to new places, staying true to the company’s healthful allegiance via innovative branding Words by R U S S K L E T T K E

Photo by C A L E B F O X

Eating right involves three basic challenges. One, know what to eat. Two, want to eat it. Three, consume what’s healthy in the context of a busy, on-the-go life. Call it the “shoulda-woulda-coulda” nutrition conundrum. Countless food manufacturers and retailers try to deliver on this concept, but few succeed on all points. One company to watch, however, is Jamba Juice, the retailer of fruit and vegetable smoothies based in Emeryville, California. The company sells its products in all fifty US states and more than a half-dozen other countries as well. The whole-fruit smoothie company managed an “expression of the brand” in a variety of ways that go beyond the familiar shopping center stores, according to Tom Madsen, Jamba Juice’s senior vice president and general manager of global growth. Madsen and his team rethought where, when, how,

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and why the company’s popular smoothies, juices, and health-focused light snacks could be bought and consumed. In reality, people who are out and about are largely faced with poor fast-food choices. This disconnect is Madsen’s challenge. Fortunately, he and his team have come up with some pretty juicy solutions. First, consider the product and why it fits into the category of healthier choices. The company’s specialty beverage and food products are made with whole fruits and vegetables, which nutritionists say people need at least five servings Tom Madsen of per day. “Jamba SVP, General Juice smoothies Manager of provide at least two Global Growth servings of fruits Jamba Juice and/or vegetables per sixteenEmeryville, CA ounce ser ving ,”


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A recent smoothie innovation combines chili and mango flavors, originally developed for consumers in Mexico, according to Tom Madsen, Jamba Juice’s senior vice president and general manager of global growth.

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Madsen says. “Fruit is the main vehicle of all our products, and yet consumers crave convenience.” A portable smoothie is generally more appealing and convenient than trying to eat mangoes and peaches while walking or driving. Athletes and cyclists who craved hydration and nutrients in a quick-service format founded the company, Juice Club, in 1990. Madsen says the brand name was changed from Juice Club to Jamba Juice— closely following “jama,” which means “celebration” in Swahili—as company products grew to national prominence. Subsequent innovation addressed dietary needs, small-format venue constraints and consumers’ interests in on-trend ingredients and flavors. On the dietary front, Jamba Juice recently added “green offerings,” drinks made with kale, the popular cruciferous leafy green. When some Jamba Juice products came under fire for sugar content, the people tasked with product development devised low-sugar variations—many with fruits and vegetables—that have proven to be a marketing and distribution advantage. In addition to reaching calorie- and sugar-conscious consumers, the lower-sugar versions have passed muster for schools with the National School Lunch Program. “Everyone agrees we need more vitamins, antioxidants, and fiber,” Madsen says. The school program, known as JambaGO, began in 2011 with thirty schools. Jamba Juice is now available in about 200 K-12 schools as well as about 1,800 other venues. Getting there wasn’t a simple matter of delivering retail products to kitchen back doors. School cafeterias were outfitted with streamlined versions of milkshake equipment while skeptical parents had to be convinced it was a good idea. School administrators were provided with materials to share with their districts about the specific nutrition facts of the Jamba products, according to an article in Fast Company magazine. “You can give kids fruit, but there’s no guarantee they are going to consume it,” says a child nutrition supervisor in one California school district. “With Jamba, though, kids are screaming for it.” The school format is similar to other small-format concepts the company is working with under Madsen’s oversight. The Jamba Juice team believes it has solutions that can fit a broad range of venue sizes, from countertop self-service to full-size, brick-andmortar stores. “Some of the smaller-format,

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JAMBA JUICE AROUND THE WORLD Jamba Juice started as a small shop guided by local healthy living in 1990, and about two decades later, that simple philosophy has expanded around the world. The healthy, active lifestyle brand now serves good-for-you ingredients in more than 800 global stores in the countries highlighted below.

Canada

United States

Bahrain Kuwait

Thailand

Saudi Arabia Oman

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Taiwan

UAE

Mexico

limited-menu stores perform at the high end of the spectrum in terms of percent margin,” Madsen says. Meanwhile, Madsen’s global growth goal has him taking Jamba Juice to Canada, Mexico, several Middle Eastern countries (UAE, Saudi Arabia, Bahrain, Oman, Kuwait, and Qatar), South Korea, the Philippines, Taiwan, and Thailand. A deal inked in July 2015 with PT Sari Gemilang Makmur will establish an additional seventy stores in Indonesia. “Consumer interest in healthier foods is on the rise almost everywhere,” Madsen says. “We go where there is spending power.” Some recent flavor innovations originate from Jamba’s international partners. Examples include chili mango smoothies from Mexico, hot-temperature juices and dragon fruit smoothies from South Korea,

South Korea

Qatar

and avocado date smoothies from the United Arab Emirates. “This enhances Jamba’s credibility as a global brand,” Madsen says. “Plus it’s just a blast trying all these cool products, which are also healthy.” Chili mango is now in several hundred US stores. Sourcing for the stores in every country is a critical element for the largely franchised chain (90 percent of Jamba Juice’s stores are franchised, many of which are owned by entrepreneurs with other brands). Madsen knows the challenging nature of supply quality and pricing, which includes important partnerships with wholesalers who help even out issues around seasonality and variable crop yields. Most of that is invisible to consumers, of course. What they might see is Jamba Juice’s presence at athletic events such as

Philippines

Indonesia

marathons and soccer tournaments, popular Facebook and Twitter feeds, or via highprofile franchise owners Venus Williams and Vernon Davis. The tennis star and professional football player each made their appreciation for the product part of their investment portfolios. Madsen is optimistic about the brand’s future in all its iterations because consumer interest in healthy products continues to climb. The brand itself consistently ranks high in consumer surveys, and “satisfaction metrics are at the top of the sector,” Madsen reports. Jamba Juice seems to have conquered the nutrition barriers—even to the liking of kids—while circumventing the beast of retail revolution. They should, they could, and they do.

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After fifteen years at Avis Budget, David Crowther firmly believes that the answer to any question can be found in data

David Crowther and his team spend a lot of time digging through more than 15 terabytes of data collected by Avis Budget as its customers journey through the rental process. Crowther’s team uses the data to make informed decisions for the future. Crowther is the senior vice president for global financial planning and customer care at the major car rental company, where he knows the key to success is about more than money. That’s why he always has one eye on the company’s books and another on reviews from happy and unhappy drivers. “We send out surveys to get a sense of how agents are doing in terms of making folks happy, but also what type of customer is calling in,” Crowther explains. “Is it a highly profitable customer that happened to have a bad experience or a customer that complains after every rental? There are financial implications around all of that—never mind just the cost of the call. There is cost to whatever you do, whether you provide them a coupon for a future rental or if you make an adjustment to their bill.”

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Crowther’s team is always looking at balancing the customer loyalty versus the profit and loss, he says. “It’s a gray area, but there are ways to balance what is best for the customer and for the company,” Crowther adds. He looks at reservations to make sure Avis Budget is operating as efficiently as possible, draws up financial outlook plans for the upcoming months and years, and travels to the company’s call centers from Tulsa, Oklahoma, to Barcelona, Spain, to check in on employees who have face, or voice, time with the customers. “Most folks don’t think about it. They show up at the airport and their car is there, but all the things that go on behind the scenes for their car to be there when they have a reser vation—the finance team has David Crowther a hand in all of that,” Crowther SVP, Global Financial Planning says. “How efficient and Customer are we being as we Care wash and clean Avis Budget that car? How efficient are we when Parsippany, NJ we move it to the

David Crowther joined Avis Budget in 2006.

Mat Robinson/Enduring Images Photography

By M E L I S S A S I LV E R B E R G


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location it is needed? How good are we at generating the reservations that become the rentals whether that is online or through a third party?” Before coming to Avis Budget, Crowther was the sole financial officer at a startup, and spent a few years at Ernst and Young, as well as in financial and strategic planning in the airline industry. “Seventy-five percent or so of our business occurs at the airport, so there is room for some crossover understanding within the transportation industry,” Crowther says. One difference, though, is how quickly the numbers can change. Unlike airline tickets that are often purchased months in advance, travelers, for business or pleasure, might not book their car rental until a week or two before the trip, which can make it difficult to forecast revenue trends from far in advance. “It makes it interesting,” Crowther says. Jumping from different parts of the financial world throughout his career has given Crowther better perspective. “I have had a more varied career than a lot of folks,” he says. “The upside is that it’s given me the ability to look at things not just from the straight financial point of view, but the bigger picture.” That skill has been helpful in his many roles at Avis Budget over the years, from being a department director to chief financial officer of the North American division to running the company’s operations in Canada. Through it all though, his favorite work includes data mining, analyzing the piles of information that come from customer bookings, payments, and satisfaction. “We can look at how far in advance people make reservations,” Crowther says. “How are they booking those reservations? How are different marketing campaigns doing? How are different cars perceived?” The answers to those questions often lead to short- and long-term changes in the way Avis Budget does business. For example, if the

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“We are always looking at balancing the customer loyalty versus the profit and loss. It’s a gray area, but there are ways to balance what is best for the customer and for the company.” DAV I D C R O W T H E R

data suggest customers are unhappy with a certain car, Crowther’s team can collaborate with the fleet department to figure out the issue and move the vehicle to a different car class where it will be a better fit with customer expectations. Data like this has helped Avis Budget create a customer profitability tool to find new segments for their business and ways to tell who are the most profitable customers. “We’ve added millions to our revenues by targeting those segments,” Crowther says. The department also used that same data to launch a new customer loyalty program recently. “To me, that’s the fun stuff, digging in and finding better ways to operate the company that hopefully save you money or provide a better product to the customer,” Crowther says. “You get to be creative to a certain degree. You really get to think about the business and see if we are doing it the right way.”

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Jonathan Adkisson President Esurance San Francisco, CA

Leader of the E-Pack Esurance was a technology-based insurance company years before that was standard, and Jonathan Adkisson intends to keep it ahead of industry trends By K E L L I L A W R E N C E

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Even the best technology can’t replace a great leader. Congrats, Jonathan Adkisson, on your recognition in Profile and your modern-world leadership at Esurance. From your friends in Chicago.


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As the dot-com bubble grew in the late 1990s, and Internet companies appeared out of thin air as quickly as most would evaporate a few years later, the insurance industry watched, by and large, from a distance. The biggest and best-known companies had, after all, been established at least five decades earlier. Jonathan Adkisson had already gotten his start at one of them—GEICO—and had spent a number of years at Farmers Insurance Group when he grew increasingly curious about the approach to his line of work that the Internet could offer. By the summer of 2000 the dot-com bubble had burst, but a new online insurance company known as Esurance had survived—and had recruited Adkisson to boot. Fifteen years later, Esurance is a subsidiary of Allstate and a $1.5 billion in premium volume business, with Adkisson as the company’s president. “When the opportunity arose to move to a technology startup, I had the perspective that this was going to be a great business; that this was going to be the way business is done in our industry, in my lifetime and career­—so I wanted to be involved in it,” Adkisson says. But back in 2000, Adkisson’s enthusiasm ran contrary to the rest of the industry. Traditional insurers saw the Internet as a disruption rather than an asset, a potential threat to companies that had laid their foundations during the Great Depression or even earlier. Adkisson himself uses the “Queen Mary vs. a speedboat” analogy when comparing his time at Farmers to his early days at Esurance. Being able to operate similar to the agility of a speedboat is what gave Esurance a running start toward an entirely new way of doing business. “We’re about using technology to make our interactions with customers better, and give them easier access,” Adkisson says. “We demystify the process so customers understand their coverage options and what they entail, and use technology to make quoting, buying, and claims more efficient, which allows Esurance to offer lower prices.” All that was novel to the industry fifteen years ago, and is, of course, much more common now. That’s why Esurance continues to strategize by designing innovative tools to both simplify its customers’ online experience and save them money while doing it. Examples include things like Coverage Counselor, an automated tool to help customers choose the right coverage options, and photo claims and video appraisal tools for easy claims processing, as well as a usage-based

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“As e-commerce became ubiquitous, consumers became less concerned with sharing information online. But more recently, with the high-profile breaches, security has become of interest again.” J O NAT H AN A D K I S S O N

insurance option—“which lowers costs for those who don’t drive as much, keeping in line with our approach as a brand,” Adkisson adds. If any of Esurance’s tools sound familiar, there’s good reason—its direct-to-consumer, DIY model has become increasingly popular via high-profile companies such as GEICO and Progressive. “We’re in a very competitive market with some very worthy competitors,” Adkisson admits. “But there’s a whole host of things we do that we’ve later seen them doing as well . . . and sometimes we see competitors doing something that we research and decide to adopt for our customers. It makes us better having to compete against strong competitors.” A place Esurance feels especially strong is in the social media arena. Credit could go to the post-Super Bowl TV spot that generated 5.4 million tweets as part of a sweepstakes; it could also go to its partnership with Major League Baseball that generated four billion impressions throughout the season. Aside from large campaigns, Esurance’s everyday content offers everything from seasonal tips to how-tos. Its goal is to provide content that will help, educate, or excite people. With an increase in reach and engagements this year, the program has been a big success. Something that’s most definitely of interest to Esurance customers of late are matters of cybersecurity. The topic has been a perpetual hot-button issue for years in the case of Esurance, Adkisson says, due to the very nature of the company. But the

big-name credit breaches of recent years are far less likely to happen at Esurance, due to protective measures such as the Tokenization process (which keeps customer info away from the Esurance browser) and preventative measures for data loss and email processing. “As e-commerce became ubiquitous, consumers became less concerned with sharing information online,” Adkisson says. “But more recently, with the high-profile breaches, security has become of interest again.” Since 2011, when Allstate became the parent company for Esurance, much of the company’s focus has been on geographic expansion. Now that much of that has been accomplished—with offices in nineteen cities, and customers in forty-three of the fifty US states—improvements to data collection as well as the overall customer experience loom large on the horizon. What won’t be seen is an online business resting on its laurels. “There’s a lot of opportunity for innovation moving forward,” Adkisson says. “I think Esurance is the kind of entrepreneurial company that will take advantage of those opportunities.”

Leo Burnett & Starcom congratulate Jonathan Adkisson and Esurance on being featured in Profile magazine. As part of a global creative network that believes modern day communication should be rooted in human need, we are proud of our partnership with Esurance, a company that exists to modernize protection and help people thrive in the modern world. Thank you, Jonathan, for helping bring this shared belief to life.

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How Creative IT Solutions Produce Electric Results Lawanda Parnell assembled a team of top talent to strategically communicate and launch a new IT system that is cutting costs and amplifying efficient customer service at Pedernales Electric Cooperative By N I C K V R O M A N

Lawanda Parnell joined Pedernales Electric Cooperative (PEC) in 2012 as its chief information officer. Heading the IT department meant taking on the challenges of the member-owned, nonprofit utility company that serves more than 200,000 members in Texas Hill Country, a twenty-five county region of Central Texas. But Parnell rose to the occasion. PEC had just launched its second release of SAP that September, but come November it was still quite rocky. “My first day on the job was a board meeting and trying smooth out their recent launch,” Parnell explains. “My first order of business was to try and stabilize the environment. I also had to look at IT and assess the talent that I had. I realized that I had a serious skill gap.” Parnell reached out to people she knew. Since she had already worked with electric

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utility businesses, the CIO knew its specific needs and where to find good talent. She made a couple of strategic hires. “For me, finding the right talent was key to getting where we are today,” Parnell says. “I looked to fill in some gaps.” The most strategic hires included enlisting a previous collaborator from San Antonio’s CPS Energy for a director of application development. Parnell also recruited a former colleague as the network and infrastructure architect. Yet hiring talented individuals was only the first step in getting PEC’s IT on course. After some serious consideration and analysis, Parnell finally concluded that she must give up the mind-set of “fixing” SAP. “We made a decision in late 2013 to go with a different solution,” she says. That solution was iVue, an integrated software solution that is specifically designed and developed for utility companies and

cooperatives. The process involved the collaboration of all departments across the cooperative. “Not many companies have taken SAP out before,” Parnell says. ‘There was no recipe book on how to do it.” So a cross-organizational team formed with people present for over a year from every part of the cooperative. “I needed all of them to be successful,” Parnell says. “That cross-pollination was very, very key to making this a successful project.” Communication through the employee base included status updates to monitor problems and progress. “We communicated at regular steering committee meetings that consisted of stakeholders from across the cooperative,” Parnell explains. “We regularly reported out as to how much we had spent to date. The cost and status of the project was always in front of the executive team, employees, members, and the board of directors.”


Kirk Tuck

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In October 2015, Lawanda the new system Parnell was launched. By CIO November Parnell reported great news: Pedernales Electric “It’s been over a Cooperative month now that we have reached serJohnson City, TX vice levels that have surpassed where we were when we were on SAP,” she says. Service levels typically were in the 80 percent service level, which means 80 percent of the calls were answered within twenty seconds. But the implemented talent improvements led to a bump up to the 90 percent range. “The productivity of our employees didn’t make incremental steps, it made exponential steps forward,” Parnell says. The launch not only helped employees, but made member interactions with PEC more seamless, according to Parnell. A new mobile app, more online services, a new interactive phone system, and easier credit card payment options are just some of the improvements. Also, members can now see their hourly or daily electric usage and subsequently make decisions based on this information that can save them money. This transformation also helped bring down organizational costs. Since the launch, PEC has had more than 40,000 members sign up for paperless billing. “That may not sound like a lot, but what that equates to in cost is over $250,000 of savings annually,” Parnell explains. “That saves us costs, which we can pass on to our members.” The new IT system fits hand in hand with PEC’s 2015–2017 strategic plan, which includes reducing costs, maintaining customer satisfaction, and improving service, particularly in regard to reliability and consistency. “The next phase, which we’ll launch next year, is around mapping and outage management,” Parnell says. “Those two things are core to a utility.” The CIO suggests that these initiatives will take the form of replacing the mapping solution, which shows all poles, transformers, and lines, as well as replacing the current outage management system, which controls information about who has no power during an outage or bad weather. Parnell believes listening to people’s needs and hiring great talent is vital to successful IT solutions, and her belief results tangible benefits for PEC. “I will always tell people one of the keys to my success has been finding the right talent,” she says. “Don’t be afraid to hire people smarter than you. Everybody wins when you have a team of extremely talented people.”

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AHL “We regularly reported out as to how much we had spent to date. The cost and status of the project was always in front of the executive team, employees, members, and the board of directors.”

Turning powerful ideas into practice

L AWA N DA PA R N E L L

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Closing Deals, Opening Doors Liyuan Woo guided Bebe’s strategic overhaul, driving branding, merchandising, and sales decisions from the seat of chief financial officer By B R I D G E T T N O VA K

In China, more than five million six- to eight-year-olds attend boarding schools. Liyuan Woo was one of them. In fact, she started when she was three, attending one of Beijing’s overnight kindergartens Monday through Saturday, spending only Sundays at home. “Mine is the typical Chinese story— early boarding school, then to America for college, with parent-dictated plans of becoming a doctor, lawyer, or accountant. I figured accounting was the easiest,” Woo says, laughing. Woo got her sea legs quickly, joining the Financial Advisory Group in Deloitte’s Boston office right after college. Four years later, she tried to move from the audit-tax division into mergers and acquisitions (M&A), but the timing wasn’t good—2000 was the year of the dot-com crash, a temporary death knell for M&A. It also coincided with Woo and her husband deciding to move to a warmer climate. Woo interviewed at Deloitte’s San Diego office, where she could focus on business development in the life sciences—a move inspired by Helen Adams, her audit partner. “She was one of those ‘do it all’ women,” Woo explains. “She was involved with IPOs and secondary offerings, M&A transactions and litigations. She helped public and private clients establish accounting and financial controls and advised them on corporate strategy. She was also very active in the community, won country-western dance competitions, mentored many younger women, and adopted five children.” Woo worked with Adams for two years, but wanted to get more involved in deals, so when the market recovered, she moved to Deloitte’s office in San Francisco. “I was there during the ‘Golden Era of M&As’

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from 2005 to 2007. It was a great experience,” she says. “I worked on deals ranging from $400 million to $27 billion for banks, hightech companies, and private equity firms. I loved the intensity and the challenge. At one point, I worked thirty-six hours straight to simultaneously close two deals.” When the recession hit in 2008, Woo decided it was a good time to have a child. When she returned from maternity leave, she says that the 24-7 demands of big deals weren’t as appealing anymore. “Pumping milk in airport bathrooms wasn’t my idea of fun,” she adds. “I wanted more balance in my life.” That’s when Woo heard about an opportunity at Bebe and decided to make the move. The company had just hired a new president and was planning significant changes after several disappointing quarters. “What really sold me, apart from the brand’s appeal, was that the company was about to embark on a major overhaul, which I would get to be part of,” Woo says. “The COO-CFO who hired me envisioned himself as CEO one day, which meant there would be an opportunity for upward mobility.” Right off the bat, Woo was given considerable responsibility. She helped migrate

Liyuan Woo CFO Bebe Stores Brisbane, CA

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Deloitte congratulates our alumna Liyuan Woo on her accomplishments and well deserved professional recognition www.deloitte.com

Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

BEBE BY THE NUMBERS Bebe’s e-commerce platform from Amazon to in-house, and established good relations with the board, auditors, and investment community. She also helped various departments strategize and simplify their procedures. “I traveled extensively—to Los Angeles to meet with design houses, to New York to host road shows and visit fabric shops with our head of merchandising, and to Japan to help open new stores,” Woo recounts. She utilized her native Mandarin and understanding of Chinese culture to help close a licensing agreement for 150–200 stores in China. In the midst of all of this, Woo and the other executives at Bebe had to deal with a significant amount of turmoil. In 2012, the board named Steve Birkhold from Lacoste as CEO, replacing former CEO and founder Manny Mashouf. Woo was promoted to chief financial officer. Later, Birkhold was replaced as CEO in 2014 by Jim Wiggett, founder and former CEO of the Jackson Hole Group. The changes required a renewed focus on the Bebe’s strategic direction. Now, the company has put in place new strategies to improve profitability, according to Woo. Such measures include reorganizing the design and merchandising operations into product teams, enhancing marketing programs and Bebe’s social media presence, reducing its brick-and-mortar footprint, and selling more through licensees instead of company stores. Bebe-owned stores exist only in the United States and Canada. To that end, Bebe plans to shutter up to thirty stores in fiscal 2016, an 8 percent decrease in total square footage, and up to fifty stores in the next two years as store leases expire or kick-out clauses are triggered. To find its place in the new economy, Bebe has recognized the shift in the way people shop, especially the hotly contested younger demographic. “Promoting our stores, products, and sales online via things like Instagram and Twitter helps draw in new, younger customers and actually saves a lot of money compared to traditional advertising,” Woo says. “But you’ve got to do a lot more than that to be successful in this competitive industry.” One of the biggest challenges is optimizing the inventory, according to Woo. “How do we reduce the amount of unsold items; how much do we mark things down? There are so many variables,” Woo says. “I was actually shocked at how numbers-driven the fashion industry is. We collect sales data for every store and are able to analyze it every three hours, so we can make immediate course corrections.”

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Bebe is a global women’s fashion retail clothier that develops and produces a line of women’s apparel and accessories marketed under the Bebe, BebeSport, and Bebe Outlet names. It operates company-owned stores in the US and Canada, and licensed stores around the world.

300

Total number of Bebe Stores, including 200 domestic stores and 100 international stores

2,500 $428M The number of people Bebe employs

Bebe’s revenue in 2015

The data enables her team to make very detailed decisions, Woo says, in addition to localizing Bebe’s approach based on which prices, styles, and promotions work in each market. “Gathering information from the bottom up has made a big difference in the management of our inventory and the profitability of certain stores,” Woo adds. The CFO is tireless when it comes to advancing the company, but how does Woo do it all? “I hire really good people and empower them to make sure we have all the fundamentals covered so I can spend more of my time on strategy,” she explains. “I’m passionate, fearless, and ask lots of questions. I invest a lot of time learning as much as possible about what we do and how it can be done better.” Woo considers herself a game changer. “I push beyond what most CFOs do,” she says. Indeed, from pitching the brand to retailers, helping e-commerce and marketing teams launch the Be More You campaign—featuring Woo and other female executives behind the brand—and regularly tweeting about the Bebe vision, Woo’s responsibilities run the gamut. “A great brand has to be authentic, relevant, and connect with everyone it touches,” Woo says. “I try to hold myself to the same standards.”


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“You’re asking them to believe with a hundred million dollars” Virgin Hotels’ Allie Hope is seizing real estate opportunities in the crowded hospitality industry to launch a unique global lifestyle brand, targeting cities around the world Words by B E N J A M I N VA N L O O N

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Photos by C A L E B F O X


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Allie Hope Head of Development and Acquisitions Virgin Hotels New York, NY

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Hospitality is a people business, and that’s why Allie Hope can’t imagine doing anything else. Hope is the head of development and acquisitions for Virgin Hotels, which opened its first hotel in January 2015 in Chicago to wide acclaim as the new global player in boutique, lifestyle hospitality. But beyond the rooftop bars, restaurant lounges, and iconic Virgin-red interiors, Hope says, at the end of the day, her work is about the people. “The people are what keep me coming back every day,” Hope says. “The relationships we make are what’s most important.” Hope’s contagious, people-centered passion mirrors the philosophy of the Virgin Hotels brand, which she’s been instrumental in forming. Officially launched in 2010, Virgin Hotels is one of the newest in a long chain of Virgin Group ventures led by Sir Richard Branson, who founded the multibillion-dollar venture capital conglomerate in 1970. Over the past four and a half decades, Branson’s Virgin Group has expanded to more than 400 companies in fifty countries employing 50,000 people in travel, media, finance, racing, space tourism, and now, lifestyle hotels. Though its diverse portfolio is what makes it a powerhouse, Virgin has long distinguished itself by applying what it calls its core principles of “quality, innovation, fun, and a sense of competitive challenge” in its investment philosophy. The idea of breaking into a crowded lifestyle market, especially in the tepid waters left by the storms of the 2008 recession, certainly promised a challenge. But when Virgin approached Hope in 2010 to lead development and acquisitions for the brand, the challenge is exactly what attracted her to the opportunity. “I’ve followed a really untraditional path my entire career, and I’ve always been very entrepreneurial,” Hope says. “Virgin Hotels was an entrepreneurial opportunity with the support of a large global brand—the best of both worlds. There were a lot of unknowns, but that’s what made it so exciting.” Compared to the established legacy-luxury brands like Marriott and Hilton, Virgin Hotels offers a unique value proposition leveraging Virgin’s puckish aesthetic to blur the lines between work and play. It’s five-star style at a four-star price point. And this approach includes everything from the small details—like charging corner store prices for in-room snacks rather than the 300 percent candy-bar markups guests accept as inevitable elsewhere—to bigger details, such as specially designed beds, dynamic lighting, community spaces, free Wi-Fi, and more.

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“Virgin Hotels was an entrepreneurial opportunity with the support of a large global brand—the best of both worlds.” ALLI E HOPE


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Indeed, such amenities suit Virgin Hotels’ target market, which includes everyone from business travelers to millennials to the seventy million built-in customers of Virgin’s myriad other brands—and whoever else wants something better than a more traditional hotel. Yet, even with its attractive unique value proposition, Virgin Hotels launched in 2010 with some industry skepticism in a cramped market. “Starting a new brand is probably one of the hardest things to do in the hotel business, which is very mature and capital intensive,” Hope says. “When you’re asking someone to believe in what you’re doing, you’re not asking them for a small favor. You’re asking them to believe with a hundred million dollars.” But to her advantage, Hope comes to the industry armed with what she calls deal making “tenacity and relentlessness” informed by a lifetime spent in the development business. Both her parents were developers, and she’s formally trained in hoteling from Cornell University’s prestigious hotel school. Hope then spent several years working in realty and development consulting, winning the Southern California Real Estate “Woman of Influence” Award. She also oversaw the acquisition and disposition of more than $1 billion in hotel transactions at Sunstone Hotel Investors. Hope pursued several other hotel- and hospitality-related successes before being named by several people independently as the ideal candidate for leading development at Virgin Hotels. So when she started at Virgin, Hope already knew the brand and the markets where the lifestyle sell would be a good fit. Out of the gate, Hope says, the focus for her and her team was on building hotels and creating a global brand. They knew the cities they wanted, so rather than approaching development piecemeal—a rookie approach— Hope says they “went on a hard search to all of our target cities simultaneously.” Chicago came up first, and in the midst of the city’s ongoing hotel boom, the bar was high for the brand’s reveal. But after a competitive search, Hope found the ideal location in the historic, twenty-six-story, Art Deco Dearborn Bank Building in the middle of Chicago’s Loop. The 186,000-square-foot building was showing signs of significant age and sitting at 38 percent occupancy when Virgin Hotels officially acquired it in 2011. Nearly

$90 million and four years later, it’s now one of downtown Chicago’s hottest properties. And Hope, of course, is beaming. “There were a lot of opportunities to really localize the product,” she says, with localization being a central feature to the brand. “Nobody wants to waste a day in a place, so we design our products so that even if you never leave the hotel, you still feel like you had a great time in Chicago.” The brand is looking at opening two more hotels in 2017 and 2018 in New York and Nashville, respectively. The New York site, codeveloped with the Lam Group, is situated at the corner of Twenty-Ninth Street and Broadway in NoMad, Manhattan, and will feature over 300 guest rooms and multiple food and beverage venues. Nashville will feature 240 rooms situated on One Music Row, Nashville’s entertainment epicenter, and it will even include a cutting-edge recording studio in the spirit of Music City. Chicago, New York, and Nashville are just the start, according to Hope. In Europe, she sees a gap in the market for the lifestyle product Virgin Hotels is offering, and that means opportunity. She’s also got her sights on Los Angeles, where the Virgin brand is already well-known and well-established. But beyond the global cities, Hope is especially excited about what the brand will bring to unique US markets, like Colorado’s Aspen and California’s Napa. “It’s about bringing the hotels to places where our customers go to recharge,” Hope says. “They’ll get the relaxation, but they’ll also get the lifestyle stimulation and programming that makes Virgin Hotels so exciting.” But ultimately, Hope says, Virgin Hotels is about the people. “We want to be where our community is thriving,” she says. “We want people coming to our hotels to feel like they’re part of a community.”

PROUD DEVELOPER OF VIRGIN HOTELS CHICAGO

“JBC is really without peer. There are larger shops, but they don’t’ have the same mindset of thinking like an owner. There are smaller groups, but they don’t have the institutional capabilities.” -MORGAN STANLEY

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Steering Toward New Ways and New Places David Cordero is behind the wheel of the legal team at Maserati, guiding the high-growth company through global success

Courtesy of Maserati

By B R I D G E T T N O VA K

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Maserati sold 13,411 cars in North America in 2014, a 169 percent increase over 2013. Worldwide sales totaled approximately 36,500 cars, a 136 percent increase. Both marked historic highs. Though this explosive growth was a novel experience for many of the company’s executives, it was old hat for David Cordero, vice president, secretary, and general counsel of Maserati North America. Early in his career, Cordero had worked at the multibillion-dollar clothing company Ralph Lauren before joining BMW to head up the consumer litigation department in the luxury automobile business. “When I started at BMW in 1986, they were selling approximately 35,000 cars a year in the US,” Cordero says. “By the time I left twenty-six years later, annual US sales were over 300,000.” Cordero had planned to retire at that point, but then he received an offer he couldn’t refuse from Maserati. “I had been part of the growth at BMW and was excited by the prospects at Maserati,” he says. “It is such an iconic and attractive brand, and they were planning to grow exponentially. Who wouldn’t want to be part of this company at this time?” Founded in Italy in 1914 by four brothers, Maserati’s current renaissance began when Fiat, its parent company, sold a 50 percent share to Ferrari. The latter dedicated considerable resources to Maserati, including a $200 million upgrade of its 1940s-era factory in Modena, Italy, making it one of the most advanced, small-series luxury automotive plants in the world. In 2002, the company returned to selling cars in the United States after an eleven-year absence. (It had abandoned the market in 1991, after owners complained of unreliable cars and uncaring dealers.) The company opened its North American headquarters in Englewood Cliffs, New Jersey, in 2012, and increased its dealer network by nearly 65 percent between 2013 and 2015. Cordero joined the company in January 2013 and is responsible for all legal issues throughout the United States, Latin America, and Canada. He helps management identify and steer clear of legal risks. “I continuously need to provide advice, guidance, and support on company strategies and David Cordero help implement policies and procedures to further establish the organization,” he says. VP, Secretary, General Counsel As for many global companies, geographic-based challenges emerge for Cordero and Maserati North the leadership team. Each country has very America specific and stringent laws and regulations, Englewood and Cordero says it is his duty to stay at the Cliffs, NJ forefront of all of the codes and requirements

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David Cordero joined Maserati in 2013, helping management steer clear of legal risks.

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MASERATI THROUGH THE YEARS 1. Alfieri Maserati was born in 1887 in Voghera, Italy, and later raced cars for the brand. He was commemorated in 2014 with an updated Alfieri model, which will debut this year. 2. A Maserati factory in 2000 still maintains the Italian classic’s look and feel. 3, 4 A Maserati factory in the 1950s Modena, Italy.

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“I’ve always liked rolling up my sleeves and doing whatever it takes to get the job done. I take ownership of the challenges at hand, while always striving to act with integrity, dignity, and fairness.” DAVE C O R D E R O

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and communicate them to the relevant divisions in a timely and efficient manner to maintain the brand built on rare, exclusive cars. And Cordero does it with just one direct report. “Believe it or not, for my first couple of years, I was the sole attorney in the company, though I utilized the services of many talented and knowledgeable outside counsel,” Cordero says. “I also focused on building teams within the organization.” Now, Cordero has one other attorney reporting to him, with whom he shares an administrative assistant. It’s not exactly what you’d expect for a company that generated €2.7 billion in revenue in 2014, but Cordero clearly relishes

Courtesy of Maserati

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Lehrman Law Group congratulates

David Cordero tackling everything that comes his way. “I’ve always liked rolling up my sleeves and doing whatever it takes to get the job done,” he says. “I take ownership of the challenges at hand, while always striving to act with integrity, dignity, and fairness. I also try to instill optimism in the people with whom I work.” Cordero believes one of the main factors behind the company’s phenomenal growth is the popularity of the Ghibli, a sport sedan that was first introduced in 1992. It can be equipped with all-wheel drive and is the first Maserati vehicle with a starting price of under $100,000—selling for approximately $66,900—both of which attract a younger demographic than the company’s traditional customer. And Maserati hasn’t stopped there. In 2005, it introduced the Quattroporte, a name that means “four doors” in Italian and is Maserati’s only four-door car. Cordero says the company also plans to introduce its first SUV, the Levante, this year. To ensure its new offerings don’t go unnoticed, Maserati has dramatically increased its US marketing budget. It has been holding lavish rollout parties for existing and potential customers in Los Angeles and New York, placing advertisements in specialinterest magazines, and securing placements in popular movies and TV shows, including the attention-grabbing “Now We Strike” advertising spot that aired during the 2014 Super Bowl. “Maserati is a specialty, niche brand, but we have been breaking the mold lately,” Cordero explains. “All of these changes— our expanded product line, increasing the number of dealers, placing a greater emphasis on service, offering a wider variety of features and options, and advertising in new ways and new places—have led to a broadening of our audience. But we’ve never lost sight of our heritage and what we stand for. Trends come and go, but a strong brand DNA like ours will withstand the test of time.”

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on his well deserved recognition in Profile. We’re proud to partner with such an extraordinary leader!

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Where Classrooms of the Future Are Shaped for Success At Cengage Learning, George Moore harnesses the engaging impact of technology to help students overcome challenges in their education By T E R E S A D O VA L PA G E

Engaged students learn better and faster. They also tend to enjoy the process, making the instructor’s job easier as well. Cengage Learning incorporated that concept in its name—“engage” is at the “center” of everything it does. The worldwide company provides educational content, technology, and services for higher education and K-12, changing the learning experience for students and professors alike. At the center of this organization is chief technology officer George Moore, who has led the company in its transition from book publisher to content learning platform. When Moore joined Cengage three years ago, the focus of the company was mainly on the professors’ needs. “The company saw the professor as the customer,” Moore says. “Instructors didn’t have time to correct homework, so there were websites for students to do their homework and have it automatically graded. The company was also

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publishing a lot of books, many about the same subject.” Yet, when Moore’s team came along, they decided that their primary role would be to become facilitators between students and professors. “We understood that students were customers as well and spent a lot of time interviewing them to find out what they really needed,” he explains. “The result of these surveys was clear: they wanted better communication with their peers and professors, and to be able to learn in their own way.” The feedback put the spotlight on the learning experience. As a result, Cengage Learning’s digital learning platform, MindTap, expanded and developed in a way that improved students’ engagement while also helping instructors to evaluate their progress in meaningful ways. “MindTap became the center of the courses, a true digital classroom that helped both students and professors have better connectivity,” Moore says. “As a fully built

CTO OR CIO, WHAT’S THE DIFFERENCE? “Both are critical roles within a company,” says George Moore, chief technology officer at Cengage Learning. “The CTO, who is responsible for all technical aspects, leads a team of engineers to create a better product and to continually enhance it, using newer and better technologies. The CIO integrates business and technology, delivering a service at the lowest possible cost and with the highest quality.”


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course, it integrates homework with customized materiCTO als, reading sources, Cengage quizzes, and ways Learning of interacting.” Boston, MA During his three years at Cengage, Moore’s team has created MindTap products for more than 520 courses that cover more than fifty disciplines. Currently, MindTap has more than one million users and generates more than fifty percent of its revenue from online products. As the company’s chief technology officer, Moore plays a key role in improving the way students learn their subjects, and at Cengage, special attention is devoted to the science, technology, engineering, and math (STEM) fields. “We understand that students learn math and chemistry in a different way than they learn languages,” Moore says. “In math, for example, they start with a problem. When they stumble, they look at the textbook, but they don’t read the book from beginning to end in order to solve the problem.” Moore recognizes how students look for concepts from algebra or calculus that they are supposed to remember, but which aren’t necessarily part of the book. Therefore, the main focus of the company’s learning platforms is integrating all that knowledge so the students have easy access to it. “One of our new initiatives is MindTap for Quantitative Studies, where we will have all the necessary content built in, in a way that students can navigate it easily,” Moore says. In April 2015, Moore was honored as a top STEM leader by STEMconnector for his role in providing digital solutions to the challenges students meet when learning. “I wish I had had a tool like MindTap when I was a student,” Moore says, laughing. “For instance, I learned how to program on my own, reading books and teaching myself, and I had to look for tutorials all over. The tools we have today help students gain knowledge faster, especially those who enjoy learning on their own.” As for Moore, he’s always learning. In his role as a CTO, he is responsible for all technical aspects of the company. “It is all about building products and devising technical strategies,” he says. “Basically, we implement new technologies to improve the development of our products, and we come up with effective solutions to the problems we encounter. The more efficient you are as a CTO, the more problems you solve.” Moore is also in charge of hiring new software engineers for Cengage. The company now has more than six thousand employees and more than 500 software engineers. George Moore

“We understood that students were customers as well and spent a lot of time interviewing them to find out what they really needed. They wanted better communication with their peers and professors, and to be able to learn in their own way.” GEORGE MOORE

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As a Digital Partner of Cengage Learning for the last 10 years, we are pleased to recognize the accomplishments of George Moore.

A nationally recognized software design and development consultancy. Our Partners Include Cengage Learning The World Bank Encyclopaedia Britannica National Geographic United Nations Instructure

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COMPETENTUM TEAM combines educators and industry experts empowered with comprehensive soſtware development skills.

INDUSTRY RECOGNIZED LEADER for building innovative, engaging products with the best technology and content of superior pedagogical accuracy, performance, and measurable outcomes.

Enterprise Data Management and Analytics a2c is a boutique consultancy specializing in commercial software engineering and enterprise data management

Competentum honors 20 years of collaboration with Cengage Learning and outstanding relationship with

George Moore www.competentum.com

STRATEGY CONSULTING

“We implement new technologies to improve the development of our products, and we come up with effective solutions to the problems we encounter.” GEORGE MOORE

“When we hire new people, we always ask them three main questions: Why education? Why Cengage? Why now?” Moore says. Cengage has the ability to get its product— its learning platform—in front of millions of students, according to Moore. “But the experience we offer them has to be exceptional,” he says. “So our people, all of us, sometimes work evenings and weekends. We are all committed to education, and the way our company has grown reflects that.” Moore and his team are indeed shaping the classroom of the future. “The role of the instructor will remain the same: helping students learn basic concepts, be it personally or online,” Moore says. “But students who get stuck will have access to more resources, so they can approach problems from different angles. And that’s the role of technology— offering today’s learners the best tools they can have.”

EXECUTION IMPLEMENTATION

Craig Spitzer, CEO cspitzer@a2c.com

Concentric Sky, a digital partner of Cengage Learning for the last ten years, is pleased to recognize the accomplishments of Cengage Learning’s CTO George Moore. George is driving forward a culture of data-driven innovation at Cengage Learning and we’re proud to be part of that effort. Concentric Sky partners with organizations like Cengage Learning to design and build inspired software solutions. Our work tells our story. Visit concentricsky.com to learn more about why organizations like The World Bank, National Geographic, The United Nations, and Encyclopedia Britannica choose Concentric Sky to help tell theirs.

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“Making TV Shows Isn’t a Science, It’s an Art” Twentieth Century Fox’s high-performing finance department is where Bob Barron is seeing new possibilities in a fragmented, mobile-media world By Z A C H B A L I VA

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While some financial leaders fear the unknown, Bob Barron thrives on uncertainty. In many ways, he has no choice. As a chief financial officer in the entertainment industry, a measure of ambiguity comes with the territory. Barron came to Twentieth Century Fox Television (TCFTV) in 1994 as senior vice president of finance and eventually assumed the top financial post for the studio in 1999. He also oversees finance for the domestic television sales and consumer products divisions. His department assumes traditional finance and accounting responsibilities— but Barron’s team must execute in a creative environment to support diverse television productions; partner with vastly different domestic and international distribution partners to monetize content; and navigate an ever-changing and disjointed digital world to get content into the hands of consumers. These issues come together once a year during pilot season, when companies like Fox produce single episodes of a series they hope to sell to a network. Barron and his team work with production executives to estimate the production costs without knowing exact details. They have to build in enough latitude to allow the show’s directors and producers to get creative and entice a buyer to order more episodes. But it’s a balancing act. “A pilot is an investment. We need to make the best show possible, but we also have to produce each show as efficiently and as cost effectively as we can,” Barron explains. Factors like visual effects, music rights, casting, and location all determine costs. With the budget set, a pilot moves into production. While Barron says he leaves casting, scriptwriting, and other key creative decisions to “the professionals,” he understands their world. “This is a unique industry, and financial people in entertainment have to stay flexible,” he explains. “Making TV shows isn’t a science, it’s an art. CFOs have

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to give room and understand that each production is unique, and each show has its own needs that don’t really exist in any other industry.” To maximize Bob Barron the return on their EVP, CFO investments, BarTwentieth Century Fox ron’s team supports a roster of studio Los Angeles, CA executives to build an eclectic programming portfolio. “We want to appeal to different viewers in different markets around the world,” he says, adding that teams at Fox consider long-term value to help determine a series’ production budget. Pilots that get a series order from a network may stay on the air for many years, and ratings are critical. After launching on US platforms, shows that do well enough can succeed overseas and on other distribution platforms. However, sometimes shows that aren’t big hits in the United States still do well in other markets, and sometimes shows that enjoy domestic success don’t resonate in another culture. “There’s just no rule to what will work,” Barron says. “That’s why Fox believes in fresh, new, brave ideas. Mediocre TV is failed TV. We want to take risks. We want to be bold.” To be bold, Barron and executives at Fox’s studios have to stay on top of seemingly constant changes in the industry. For Barron, it’s almost second nature. He was born and raised in Southern California with a father who was a certified public accountant and an executive at Paramount and Time Warner. Barron completed undergraduate and MBA degrees before returning to his home state to take a job as a financial analyst at RCA Columbia Home Video when the format was just getting its start. He watched the home-video market explode and later became a senior vice president of TCFTV in 1994. Then, the fledgling company had just a few shows. A decade later, the studio was the top production company in Hollywood. In his career, Barron has seen the introduction of DVD, the dramatic increase of demand for US content in international markets, Blu-ray, mobile, and other disruptors—and the industry continues to grow and evolve.“People are consuming our content in new ways. It’s now about when, where, and how they want it, and they’re getting it on any and every device,” Barron says. The new reality is forcing his teams to work with Fox distribution divisions to find new and better ways to deliver Fox content. To find success and support the business, finance must understand the new

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requirements and expectations thrust upon the department. “There’s more and more interest in understanding exactly where we are financially, and where we’ll be in three to five years,” Barron says, adding that he gets more requests than ever before for profit and loss statements, balance sheets, and other key financial documents from the company’s top brass. While Barron’s work may seem difficult, he credits a long-term and loyal financial team with helping him navigate the fast waters of entertainment finance. He works to communicate well and make sure each member of his finance team understands what’s needed and how he or she can get the right information to the right place. He also tries to lead by example. “This is an industry that you have to have a passion for. If you don’t love what you’re doing, you’re probably going to be mediocre at best,” Barron says. “I got into this industry because I enjoy it, and two decades later, I still love coming to work every day.” When Barron started his career, TCFTV was a fairly modest studio operation that supplied programming to the Big Four networks (ABC, CBS, NBC, and Fox). Soon after, new cable channels started ordering original programming that opened the door to the studio as a content producer. Now, outlets like Netflix, Hulu, and Amazon are hungry for original programming. While some would see the changes as a challenge, Barron sees only opportunity. “We’ve been given so many more places where we can sell our content,” he says. “The number of buyers has increased dramatically, and that’s great for business.” With shows like Empire, The Simpsons, Homeland, Modern Family, The X-Files, and Family Guy, Fox is poised to continue its legacy of building some of TVs biggest hits.

Deloitte plays a leading advisory role in the media and entertainment arena. Our clients include the top organizations across sectors from entertainment, broadcast, cable, and satellite operators to search and social networks, publishers, and advertisers. Many of our 7,900 TMT practitioners in the US have worked directly in the industry, which gives us an insider’s view on critical M&E business issues. Learn more about Deloitte’s M&E capabilities at www. deloitte.com/us/media. Entertainment Partners supports the film and television industry with a range of solutions which enable the process behind the scenes. We are a 100 percent employee-owned company, celebrating our fortieth anniversary this year, with offices across the country and international affiliates that provide valuable resources for the production community. We are proud to partner with Bob and salute his leadership and vision as we embrace our mission to reinvent how the entertainment industry works and interacts to make production simple.

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Poised for Power Layne Loessin and Entrust Energy are coming for your energy system By S A R A H K O L L M O R G E N

A

As the United States becomes more environmentally conscious in the face of global warming, consumers are looking for ways to become increasingly energy efficient. Consider how the average person’s home might be outfitted with LED lights or solar panels. In 2014, renewable energy accounted for about 11 percent of energy production in the United States—what the US Energy Information Administration calls a record high. However, traditional sources for electricity production haven’t been unilaterally tossed: new technologies have made natural gas production skyrocket as well. For those working in the energy industry, the unpredictable role these traditional and nontraditional energy sources have in the future might be a bit anxiety-inducing, to say the least. One energy executive, however, is more than ready to roll with the punches. Layne Loessin, president and CEO of Entrust Energy, a privately owned retail energy-provider based in Houston, Texas,

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Layne Loessin President, CEO Entrust Energy Houston, Texas

doesn’t consider the fluctuating market the industry’s greatest obstacle. In fact, Loessin finds the biggest struggle his industry faces doesn’t have to do with energy at all: the most significant issue his company must overcome is customer stickiness. “Our priority is customer retention. With all the available options in the market, a customer-focused strategy is the true differentiator,” Loessin says. And if any company is poised to make money on a product people may ultimately want to buy less of, it would be Entrust Energy. The company has been bulldozing forward since it was founded in 2010. The startup’s revenue grew a whopping 5,410 percent, from zero to $132.1 million by 2014. The staff expanded from about thirty employees to 120. In 2015, Entrust nabbed a spot on Inc. magazine’s annual list of fastest growing companies: it held fourth for fastest-growing energy company and forty-seventh overall (the list is of 5,000). It was also the top-ranked, Houston-based business on the list. Loessin, who took the reins of Entrust in early 2015 as the company’s founder returns to Australia, doesn’t plan on slowing company growth any time soon. In fact, the first-time CEO has three specific goals for Entrust in the coming years. First, he wants to continue developing Entrust’s fastpaced but down-to-earth company culture and attract talent that meshes well with its values; second, he wants to make customers “stickier”—so they have a relationship with Entrust for years rather than months; and third, Loessin wants to grow the business five times its current size.


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Focused. Skilled. Steady. BakerHostetler congratulates Layne Loessin, President and CEO of Entrust Energy, Inc., for his well-deserved recognition in Profile. We wish Layne and Entrust Energy continued success. One of the nation’s leading law firms, BakerHostetler helps clients around the world address their most complex and critical business and regulatory issues.

bakerlaw.com

“Our priority is customer retention. With all the available options in the market, a customer-focused strategy is the true differentiator.” L AYN E LO E S S I N

For this Corpus Christi native, energy is more than just a career. Loessin’s father and brother worked on oil rigs, his uncle at refineries, and cousins with pipelines. “For me, it was a natural thing you grow up around,” Loessin says. After graduating to a tough job market in 2001 with a bachelor’s degree in economics from Trinity University in San Antonio, Texas, Loessin was hired as a risk analyst. Unfortunately, his luck was short lived. He worked at Enron for four months before the company crashed. Loessin landed at Sequent Energy Management, again as a risk analyst. At Sequent, Loessin got his first taste for the startup environment. After two years there, Loessin went to Direct Energy, where he held a series of jobs on the risk management team over about seven years, which allowed him to diversify his experience. He learned about electricity (versus just natural gas), gained foreign exchange experience, and worked with the retail side of the energy world. But as Direct Energy flourished, it started to lose the brisk startup charm Loessin had grown to love. He grew restless, and, through a connection with a former colleague, he wound up working at Entrust Energy. Today, as president and CEO of Entrust, Loessin hopes to foster the vibrant startup feel that he grew to love, even though the company itself has largely grown out of that designation. To do that, Loessin has hired an executive team that he believes hold similar values as he does: namely, working with integrity, without ego, and with directness. Loessin credits his willingness to put his ego aside and learn from experienced coworkers with helping him reach his current position. With hard work and an open mind, he believes it’s possible for individuals

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entering the energy industry to create your own luck. “You’re going into a dynamic industry where you’re going to be challenged. Be excited about it and be in front of the industry pushing us forward. But do it with integrity,” he says. By hiring people along these lines at Entrust, Loessin believes they can create a tight team. “We are a very welcoming family company. We hire real people,” Loessin says. “You’re yourself here, which is what I really love.” The good vibes at Entrust are not meant to simply benefit those that work there, but also those they serve. Much of Loessin’s vision for the future revolves around developing positive, genuine relationships with Entrust customers. If customers develop authentic relationships with Entrust employees who provide excellent service and a product that adds value to their everyday lives, Loessin reasons, they’ll be willing to stick around and go to Entrust in the future for other energy needs, such as installing solar panels. At the moment, continuing to improve the customer experience at Entrust means leveraging the in-house developed billing system and online customer portal where customers can easily manage their accounts and purchase multiple value-add products or services—a sort of one-stop shop. Entrust’s proprietary system plays to one of its primary strengths in the competitive retail energy space, being agile and capturing opportunities not attainable by others. If all goes according to plan, Loessin hopes to see Entrust grow to five times its current size. “I want to build something that’s much greater than where we’re at right now,” he says. Under Loessin’s leadership, Entrust is on track to do it.


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Eldridge Burns Chief Legal Officer Santander Consumer USA Fort Worth, TX

Guiding Growth Bruno Paiva

Santander Consumer USA’s chief legal officer Eldridge Burns and his team have been instrumental in leading the company’s evolution By N I C K V R O M A N

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Santander Consumer USA is one of the fastest-growing companies in the automotive finance sector. Eldridge Burns, chief legal officer, has helped guide the company since joining it in January 2007. Now, Santander Consumer USA has a managed assets portfolio of $53 billion, as of December 31, 2015, as Burns continues to lead legal matters for the company.

Burns relates about when he started at Santander Consumer USA eight years ago. “At the time we had about 1,000 employees and about eight people total for legal and compliance. Today we have more than 5,000 employees,” he says. “The legal team has more than fifty employees and compliance, which is now separate, has about fifty-five. We have gone from a relatively small private company to a much larger public company in the eight years I’ve been here.” He emphasizes the primary function and business of the company. “Our focus is automotive finance. Our strategy is to continue leveraging our efficient, scalable infrastructure and data to underwrite, originate, and service profitable assets,” Burns says. “We continually work to optimize the mix of retained assets versus assets sold and serviced for others. We are also the preferred lender for FCA US LLC—FIAT Chrysler Automobiles, commonly known as Chrysler. That’s a differentiator for us, and we have continued presence in prime markets through Chrysler Capital, which we operate.” In January 2014, Santander Consumer USA went public. This was a progressive transformation for the company, but also created new challenges. Burns explains: “When you have public shareholders, there are an exacting set of standards—across the

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business—that companies are expected to have mastered, starting on day one of your IPO. We have had to bring in more expertise, and our focus now primarily centers on extensive communication with the business.” That successful transition and continued business growth is all about teamwork. “Surrounding yourself with terrific people is the key to navigating a company through challenges,” Burns says. He gives credit where it’s due. “We are fortunate to have good, smart, and experienced lawyers on our team, strong support from our parent organization, and an outstanding board of directors. This collective leadership is invaluable. You also need to be properly resourced. Our compliance team, for example, was a small group in 2007. Today, we have more than fifty compliance associates and the number is likely to grow.” There’s a great deal of trust among the members of the legal team, Burns says. “We all bring unique experiences and special areas of practice to the table. We collaborate, of course, but we also trust each attorney to be the subject-matter expert is his or her field,” he explains. “We really don’t have time to second-guess each other or to micromanage our colleagues’ tasks. We know that we are all working for the good of the company, and so we put our heads down and work hard.” Through his tenure at Santander

A BRIEF HISTORY OF TIME Santander Consumer USA Holdings began originating retail installment contracts and now has millions of customers across all credit grades.

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The company is founded by a group of entrepreneurs, including the current CEO and chairman.

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Partnership with FirstCity Financial is established to form FirstCity Funding, a nonprime auto-finance company.

’04

FirstCity Financial sells its interest in Drive to HBOS plc and Drive Management LP, kicking off a period of rapid growth for the company.

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HBOS plc and certain members of Drive Management LP sell interest to Banco Santander S.A.

’13

Chrysler Capital auto purchase and lease financing program launches, and Santander Consumer USA becomes a public company the year after.


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Consumer USA, one of the main changes has been the growth of the company. “We operated with just a couple of lawyers for several years and we handled most matters ourselves, calling upon outside counsel for specialized services—for example, intellectual property, litigation, etc.,” Burns says. “Today there are thirteen attorneys, several

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Sorman &Frankel, ltd.

paralegals, people managing governance and litigation, corporate secretaries, etc. There is a breadth and depth to the legal team that has evolved as our business has evolved.” Burns is proud of the company’s successes, citing one in particular: taking the company public in 2014. “When I joined the company in 2007, even though it had bank oversight, it still operated much like a startup in many ways. The company was strategic, aggressive, yet incredibly efficient,” he says. “But there was work to do on the corporate governance front. We formed a new management team and we focused on establishing the proper controls, processes, and structure that made it possible for Santander Consumer USA to have one of the largest IPOs of 2014.” Another point of pride for Burns is the acquisition work from 2008 to 2011. “The economy was in recession and many of our peers—and many institutions that were larger than us—sought to exit the auto finance space,” he says. “We completed five notable acquisitions during this time, which gave us significant gains in terms of data and some key personnel. At a time when most auto finance providers were contracting, we were growing. It was a lot of work, but it was tremendously rewarding work.” For Burns, teamwork is crucial. “Culture is everything. Your people need to complement and respect one another, and work productively—often under periods of intense work or stress,” he says. “Take time to understand each person’s leadership style before hiring them, and make sure they will bring value to the existing group.” Mayer Brown is a global legal service provider with broad experience representing consumer finance companies in matters ranging from class action defense and appellate litigation to structured finance and regulatory compliance. We are known for our client-focused approach and our ability to assist clients with their most complex and demanding legal and business challenges. We are committed to delivering world-class results, service, and value to our business, governmental, and individual clients around the world. “Eldridge is a terrific lawyer with great breadth and judgment with a thorough knowledge of his company and industry. We consider it a privilege to work with him and his colleagues at Santander Consumer USA.” —Richard Kim, Partner, Wachtell, Lipton, Rosen & Katz

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is pleased to serve as outside counsel to

Santander Consumer USA Inc. and to recognize

A full-service law firm representing financial institutions and creditors in bankruptcy, collection, collateral recovery and litigation defense matters in Illinois and throughout the United States.

Chief Legal Officer and General Counsel, for his leadership and success.

mcglinchey.com Sorman & Frankel, Ltd. is pleased to congratulate Eldridge Burns for his recognition by Profile Magazine for his outstanding leadership and professional achievements. We are honored to represent Santander Consumer USA Inc.

SORMAN & FRANKEL, LTD.

180 North LaSalle Street Suite 2700 Chicago, Illinois 60601

(312) 332-3535 www.sormanfrankel.com 91

Eldridge A. Burns Jr.,

AL CA FL LA MS NY OH TX DC

601 Poydras Street Suite 1200 New Orleans, LA 70130 504.586.1200

THIS IS AN ADVERTISEMENT. Authorizing attorney: Bennet Koren McGlinchey Stafford PLLC in AL, FL, LA, MS, NY, OH, TX, and DC. McGlinchey Stafford LLP in CA.


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Steve LaCroix EVP, Chief Marketing Officer Minnesota Vikings Minneapolis, MN

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Home Sweet Home Minnesota Vikings’ executive vice president and chief marketing officer Steve LaCroix shares what to expect when the team’s new stadium opens for the 2016 season By J O E DY T O N

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A GREAT FAN EXPERIENCE IS BUILT ON GREAT IDEAS Across food, facilities and retail merchandise, Aramark knows what fans want and we use that knowledge to create experiences they won’t find anywhere else. WE DREAM. WE DO. Learn more at www.aramark.com/sports

Aramark is proud to work with Steve LaCroix, EVP and CMO of the Minnesota Vikings, and we congratulate him on his feature in Profile Magazine. We are proud to be opening US Bank Stadium with our partners, the Minnesota Vikings and the MSFA, and look forward to creating memorable customer experiences together.

W

When the National Football League’s Minnesota Vikings hosted their 2015 Wild Card Round playoff game against the Seattle Seahawks, the temperature at kickoff was a whopping six degrees below zero. Fortunately for the Vikings, their opponents, and their fans, the days of freezing during late season and playoff games will be just a memory in the 2016 season. That is when the Vikings will move into their new home, US Bank Stadium. The Vikings were protected from the elements from 1982 to 2013 when they played indoors at the now demolished Hubert H. Humphrey Metrodome, but the team has played outdoors at TCF Bank Stadium on the University of Minnesota campus. The new US Bank Stadium will be a 66,200-seat, fixed-roof stadium with an estimated budget of around $1 billion shared between the state of Minnesota, the city of Minneapolis, the Vikings organization, and team owners Zygi, Mark, and Lenny Wilf. Along with Vikings home games, US Bank Stadium will also be home of Super Bowl LII and the 2019 NCAA Final Four. US Bank Stadium is currently one of the largest construction projects in Minnesota state history. With a project that large, the personnel overseeing it better know exactly what they’re doing. The Vikings are in good hands in that respect as Steve LaCroix, executive vice president and chief marketing officer, is heavily involved with all facets of the stadium being built. Before joining the Vikings, LaCroix worked with the National Basketball Association’s Indiana Pacers and was involved with the team’s construction of the then Conseco Fieldhouse. His involvement included selling the naming rights and forming major partnerships for the franchise and arena. Now, he brings that experience to help the Minnesota Vikings with the biggest public-private construction project in the state’s history. “I’m dusting off my experience with Conseco Fieldhouse and utilizing it, but this is a much bigger project, over $1 billion,” LaCroix says. “It’s Minnesota’s largest public-private partnership construction project in state history.” While LaCroix works to help get the Vikings’ new home up and running, he also is in charge of the franchise’s marketing and revenue departments—any dollar that is generated locally falls under LaCroix and his team’s responsibilities. Within the organization, several marketing departments cover special events, fan interaction, social media, game production, and more. “It’s a fun way to make a living, and we really enjoy where we are headed as an organization with US Bank Stadium coming in the fall,” LaCroix says. Vikings fans have patiently sat through outdoor games during the last two seasons, but that patience will be rewarded when they see all that US Bank Stadium has to offer. Although it will sit on the same site as the old Metrodome, US Bank Stadium will take up nearly twice

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The US Bank Stadium will house Wi-Fi access points, LED lighting—a first for a new NFL venue—and seats just 41 feet from the sideline.


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“The reality is, the budget is always stressed. With the number of stakeholders in a large, public-private partnership like this, there are a lot of entities and interests at the table and all of those have to be represented fairly.� STE VE L AC R O I X

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CONGRATS, STEVE WE TIP OUR HORNS TO YOU

Van Wagner Sports & Entertainment proudly congratulates our partner Steve LaCroix and the Minnesota Vikings as they prepare to open US Bank Stadium.

the square footage. The roof is fixed, but fans can still enjoy the indoor/outdoor experience thanks to huge, pivoting glass doors and a clear roof. The organization has also made a big effort to ensure its fans have proper Internet connectivity on game day, especially its younger fan base that likes to engage on social media while watching the game. One of the biggest challenges NFL teams face is getting fans to leave their living rooms with high definition televisions and come to the stadium, which is why there’s such a focus on the fan experience. LaCroix and his team began their focus with connectivity, but will also offer exclusive content and active, robust pregame activities to encourage fans to come down early and be part of game day, all day, not just the three hours while the game is being played. “I think the structure will be very iconic,” LaCroix says. “We spent a lot of time and effort to make sure that we have the right technology and specifically, the right connectivity for our fans on game day. That is certainly a source of frustration with any fan that goes to a sporting event, if you can’t get that connectivity.” Not surprisingly, a project of this magnitude comes with its challenges. One of the challenges the Vikings have faced with the stadium construction is dealing with the budget. It might seem that having $1 billion to play with would make building an NFL stadium easy, but those funds don’t stretch as far as you’d think. “The reality is the budget is always stressed,” LaCroix says. “With the number of

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The 1.75 million-square-foot US Bank Stadium will house seven levels and 65,400 seats under the largest clear ethylene tetrafluoroethylene roof in the United States—and the first on a stadium.

stakeholders in a large, public-private partnership like this, there are a lot of entities and interests at the table and all of those have to be represented fairly. I think that’s really a culmination of the challenges of these types of projects.” Despite the challenges, financial or otherwise, that LaCroix and the organization face, they’ll be well worth it when the stadium is complete and the Vikings take the field for the first time this season. “The fun part is to see it come to life and get US Bank’s commitment to name the stadium, and see the sign outside your office every morning to make it real,” LaCroix says. “You go through this design process with the architect and all of the people in the room, and you think certain areas are going to turn

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out a certain way, and to see them come to life is very gratifying.” The Vikings organization is excited to move into its home, not just to enter a new era in its history, but to give its dedicated fans the game-day experience it hasn’t yet had the chance to witness. The birth of US Bank Stadium isn’t just about a new place to watch the Vikings play, it is also a chance for fans to participate in activities before and after the game and enjoy the various new amenities inside the building. “We are excited to reeducate our fan base of what game day should be,” LaCroix says. “We think they’ve never really experienced what an NFL game day should be, and we will start to educate them on what game day offers.”

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Lode Debrabandere’s team at Osiris Therapeutics is developing products for when pills are not enough, proving that regenerative medicine is not a futuristic idea By S A R A H K O L L M O R G E N

Developing a chronic wound—or a large wound that does not heal over time—can be devastating to a patient’s quality of life. Not only is there a constant fear of infection, which could lead to amputation, but there’s the social stigma, too: many patients with chronic wounds don’t feel comfortable outside the house, or without being covered. In the United States, it’s estimated that there are 6.5 million patients affected by chronic wounds—a large portion of which also suffer from diabetes. “Popping a pill or doing anything with traditional medicine is not going to close that [chronic] wound,” says Lode Debrabandere, president and CEO of Osiris Therapeutics. “You need something different.” In this case, the “something different” means regenerative medicine. Through its products, Osiris is able to treat chronic-wound patients by creating new blood vessels near the wound, which then allow healthy tissue and skin to form. Many of Osiris’ chronic-wound patients are able to walk and maneuver normally after treatment. Osiris Therapeutics earned the distinction of becoming the first company in the world to receive approval for a stem-cell drug called remestemcel-L in Canada and New Zealand. Since then, progress at the company has been swift. Today, Osiris has developed several products that focus on wound care, sports medicine, and orthopedics. Such products include BIO4, a viable bone matrix, Cartiform, a viable osteochondral allograft, Grafix, a cryopreserved placental membrane, TruSkin, a viable human skin

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allograft, and Stravix, a durable placental allograft. Debrabandere joined Osiris in 2006 after building a diverse base of experience in the medical and pharmaceutical fields. After earning an MBA, a PhD in pharmaceutical sciences and toxicology, and a professional doctor-degree in pharmacy from the University of Leuven in Belgium, Debrabandere came to the United States. He began working in research and development (R&D) for UCB Pharma, where he worked on developing products to treat epilepsy. After about seven years, Debrabandere moved into the marketing department to sell Keppra, the epilepsy product he helped develop while in R&D. Today, Keppra is a commonly prescribed drug for epilepsy. Debrabandere then moved on to become the vice president of strategic marketing for neuroscience and infectious diseases at Bristol-Myers Squibb. When Debrabandere joined Osiris as a general manager in 2006, the company was a world leader in stem-cell research, but small. However, this suited Debrabandere—he felt working at a smaller business versus a larger

Lode Debrabandere President, CEO Osiris Therapeutics Columbia, MD


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pharmaceutical company would allow him to take advantage of his diverse skill set. He became CEO and president in 2013. Today, driven by the stories of his patients, Debrabandere plans to grow Osiris from a small, R&D biotech company into the leading seller of regenerative medicine products. Debrabandere’s main goals for Osiris are to reach new financial objectives and to launch new, smarter products for people who need them. By achieving these two things, Debrabandere hopes to build Osiris into the industry leader for regenerative medicine. For Osiris, a company that originally consisted of seventy to eighty PhDs, becoming a large commercial company means doing more than adding a few staff positions: it means building up a strong foundation in multiple fields. “Being great in science is not enough. Being great in marketing is not enough,” Debrabandere says, adding that the right balance between R&D, health policy, marketing, and financial expectations is what ultimately brings good products to patients. “That’s how you get the most powerful output,” he says. One of the biggest challenges Debrabandere faces is managing the expectations of external investors. Although meeting investor expectations is rewarding, Debrabandere says reaping the consequences of not meeting expectations can be challenging because it doesn’t mean good work wasn’t done along the way. So far, though, Osiris seems to be on track. The company has increased revenue to $100 million. Debrabandere’s goal is to reach $500 million. Reaching the $500 million mark, however, in part relies on a public that is educated about regenerative medicine and willing to invest in it. Debrabandere says that demystifying regenerative medicine for the general public is a huge undertaking. By launching new products and putting them through the same regulatory processes that any other drug would follow—such as gaining US Food and Drug Administration approval—Debrabandere hopes people will start seeing regenerative medicine products as a real alternative, rather than vague medicine of the future. “The success and victories that you achieve make regenerative medicine real,” Debrabandere says. “It’s not voodoo medicine.” In particular, Debrabandere talks about what he calls the “sweet spots” of regenerative medicine—situations in which he can watch a patient’s quality of life improve after nothing else has worked. “It’s very rewarding to be able to do that,” Debrabandere says. “It changes your life.” In fact, the CEO says that’s the best part of his job: watching people—whether they

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“Popping a pill or doing anything with traditional medicine is not going to close that [chronic] wound. You need something different.”

Congratulates

Lode Debrabandere on this achievement and leading the Osiris Therapeutics team.

LO D E D E B R A BA N D E R E

We wish you continued success!

fit2market provides a range of services to help build your brand.

Contact Sheri Rosenblatt to learn how our services will benefit you. Phone: 917.991.0008 Email: sherirosenblatt@me.com are patients or employees—work hard and succeed in tough situations. This attitude of perseverance is reflected in the company culture, which values competitiveness, strength, and execution. However, the real foundation for the company is passion for patients. “You have to have a genuine passion to do well for the patients,” Debrabandere says. “Otherwise, you’re in the wrong place.”

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How to Anticipate Trends to Deliver Lasting Results Not only does Pro Mach offer clients integrated packaging expertise, but Bill Schult has pioneered integrated financial solutions for spectacular success at the company By N I C K V R O M A N

Pro Mach is one of North America’s largest providers of integrated packaging products and solutions for food, beverage, household goods, and pharmaceutical companies. Bill Schult has been Pro Mach’s vice president and chief financial officer for more than ten years. He’s been instrumental in guiding the company in its growth over the years, nimbly dealing with the challenges and adapting to the changes within a dynamic industry. The business was bought in late 2004 by a private equity firm and the new CEO in charge made the decision to move the business to Cincinnati, Ohio. At the beginning, the challenge was not only to learn about the packaging industry, but also to learn how to work with the new owners of the business, according to Schult. “It was a clean slate,” he says. “They didn’t even have office space. We had to select a location, build it out, hire our team, put in our strategies to learn what the private

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equity owners wanted, and learn how to work together. It was a big challenge.” The challenge was an opportunity to be creative—and successful. “Our management team developed and put in place an organizational structure that has resulted in our tremendous success over the last ten years,” Schult says. “It has resulted in [the business] being successfully sold two times while I’ve been here. We took what was formerly a collection of independent businesses and turned them into one company, Pro Mach.” One of the keys to Pro Mach’s continuous success is the creation and focus on integrated packaging solutions. Processors and consumer packaged goods companies (CPGs) that put together a packaging line for a new product often have to work with multiple packaging machinery suppliers, according to Schult. “They’d rather not source machines from different suppliers, but that’s how the industry has been built,” he says. “One of the things we’ve done is offer more integrated bundles

“We’ve built up our portfolio through acquiring companies and technologies that allow us to offer more complete lines and ultimately make it easier for our customers to get their products into the marketplace.” B I L L S C H U LT


C O M PA N Y

Making It All Work Thompson Hine is honored to count Pro Mach among its top clients. Like Pro Mach, Thompson Hine takes pride in being a leading provider of innovative, customer-focused solutions.

Bill Schult speaks fluent German and brings his crosscultural expertise to Pro Mach and his colleagues in Europe.

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of machines so they don’t have to deal with different suppliers.” Part of Pro Mach’s successful growth that goes hand in hand with integrated solutions is the acquisition of companies that can make that integration possible. “By positioning themselves as one of the major players in the field, we can take a much larger share of the packaging line than any one of our competitors could,” Schult explains. “We’ve built up our portfolio through acquiring companies and technologies that allow us to offer more complete lines and ultimately make it easier for our customers to get their products into the marketplace. As a result, the major CPGs like dealing with us.” Schult’s vision for growth is to continue extending Pro Mach’s reach outside of the North American market. Pro Mach recently established a physical presence in the Mexican market, establishing an operation in Monterrey. In 2014, it acquired a company in France—its largest acquisition to date. “We continue to look at Latin America, Europe, and anywhere else where there’s a company with great products, good people, and outstanding post-sale support,” he says. “We can be selective and look for businesses that fit what we do and that fit our culture.” Pro Mach’s overarching strategies include integrated solutions and global support for customers, and consistent execution across the company and throughout all divisions. For Schult, consistent execution is crucial. “For customers that order individual machines from a number of Pro Mach brands—even if it’s not an integrated solution—we want Bill Schult those customers to VP, CFO have a consistent Pro Mach experience across Pro Mach,” he says. Loveland, OH “ These systems

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Frank Chaiken and his Thompson Hine legal team have helped Pro Mach execute its M&A growth strategy since 2006, completing more than twenty acquisitions under three successive private equity sponsors. Thompson Hine’s commitment to innovation is embodied in SmartPaTH®–a smarter way to work–predictable, efficient and aligned with client goals. Learn more at ThompsonHine.com.

SM

A Smarter Way to Work – predictable, efficient and aligned with client goals. Frank D. Chaiken Practice Group Leader, Corporate Transactions & Securities 513.352.6550 Frank.Chaiken@ ThompsonHine.com www.ThompsonHine.com

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AHT

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INSURANCE

A Full Spectrum Practice

“Our emphasis is on growth, and more specifically, it’s on profitable growth. There’s a lot we are able to offer our customers that many of our competitors simply cannot, and we’re very excited about the future.” B I L L S C H U LT

AHT is a full-service insurance brokerage and consulting firm with nationally recognized practices. Our collaborative, results-oriented approach and innovative solutions contribute to our consistent industry recognition. • Global Risk & Benefit Solutions • Executive Risk Management Services • Product Safety Programs • Multinational Insurance Solutions • Merger & Acquisition Risk Analysis CHICAGO | NEW YORK | SAN FRANCISCO SEATTLE | WASHINGTON, D.C For more information contact: George Forrester Tel: (703) 623-4623 www.mfgrisk.com

could be on completely different lines, or even in different factories, but they all should have the same high quality and high performance so the customer experience is seamless.” Maintaining consistency in the tumultuous packaging industry is challenging, but Schult knows how Pro Mach stays ahead of change. One major industry trend is more and more customers are looking to flexible packaging, and historically, products have come in rigid packages such as cans and bottles, according to Schult. “There’s a big trend to move from rigid to flexible. We’re making sure that we get our share of that business,” he says. “In addition to making our own flexible packaging machines, we also have exclusive distribution agreements with several other foreign manufacturers of these machines. This allows us to offer customers

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a full range of flexible packaging solutions to accommodate any needs.” With such clear vision, Pro Mach has doubled in size twice in the last ten years, and Schult anticipates further expansion. “Our emphasis is on growth, and more specifically, it’s on profitable growth,” he says. “There’s a lot we are able to offer our customers that many of our competitors simply cannot, and we’re very excited about the future.”

AHT is thrilled to see Bill Schult featured in Profile magazine. Bill’s superior leadership qualities have had a tremendous impact on Pro Mach’s impressive success. Personally, Bill’s role in improving the livelihoods of children and the world’s poorest is inspiring. We are enormously proud of our relationship with Bill and ProMach, built over the last fifteen years.


WHERE LEADERS IN CORPORATE LAW SHARE THEIR STORIES. For editorial consideration, contact info@modern-counsel.com

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Th i in rteen a for new gen er bu k sin ind al co ess of l u is a ega nsel s p l th bala PH ara ink OT ing nce p OG m RA ou PH Y nt , whe ersp BY CA as e r LE B leg e a m ctive FO X al ex ind s pe rti se

gal v. B usi n

Le

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L EGAL V. BUSINESS

F I G . 01 MICHAEL COYNE GC for the Americas MUFG New York, NY

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A Green Thumb for Legal Talent Michael Coyne knows how to train the next generation of in-house lawyers, and at MUFG, he’s cultivating future company growth

BY JEFF LINK

Every month, Michael Coyne (Fig. 01) meets for breakfast with a handful of young attorneys in New York, Los Angeles, and San Francisco. He also makes the rounds to each of the major US offices of Mitsubishi UFJ Financial Group (MUFG), where he is general counsel for the Americas, to meet with the next generation of legal talent. “It gives me a chance to talk to them and find out where they are, but also for them to ask me any questions about where the company is going and how they can advance themselves forward,” Coyne says. Those monthly breakfasts are just one part of the high level of mentorship that goes on in MUFG’s legal department. Younger attorneys are also enrolled in formal continuing legal education programs through

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LEGAL MENTO R S H I P Coyne believes mentoring young attorneys not only helps their careers, but it improves the business as well.

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the company, which includes lessons from senior members of the department as well as outside counsel. Having such a detailed in-house mentorship program is a change from the past, Coyne says, but it is critical because of changes in the legal market. When Coyne graduated from law school in the eighties, he says it was typical to work at a law firm for about a decade before deciding what to do next. “It was a long, almost post-doctoral training period with senior partners giving you a lot of training,” Coyne says. “You had to be a fully evolved attorney when you went in-house, because if you weren’t, there were no real training departments inside the corporate legal world— they weren’t built for it.” Now that process has changed and forced corporate legal departments to change along with it, according to Coyne. “These days most people don’t dream of staying at a law firm more than a few years,” he says. Coyne explains that practice areas at law firms have gotten so specialized that young attorneys are not getting the same exposure to the broad spectrum of practice areas that they may have experienced in the past. “As a consequence, when we are looking for people to join our team, they aren’t necessarily as far along in their professional development as people who joined legal departments fifteen or twenty years ago,” Coyne says. “The onus then goes on us as a legal department to grow our own professionals and give people the training they need to fully develop.” Hence, Coyne spends about 25 percent of his time on mentoring and networking opportunities for his youngest lawyers. “If you’re going to do it, it’s a big commitment,” he says. “But it’s critical to the success of my group, as well as to the overall success of the company.” Not only is having a strong in-house legal team less expensive, but it also builds a level of institutional knowledge that outside counsel doesn’t have. “If you get into a problem that’s similar to one you’ve encountered previously, you know the route out of that hole,” Coyne says. But, to get to that stage, Coyne says companies need attorneys to stay as long possible. “The only way you can keep the kind of talented people we need to bring in to do the complex work we do here is to provide them with opportunities for growth,” Coyne explains. “It works in both directions; that’s why it’s so important to do.” While mentorship is good for MUFG’s lawyers, and for the company, Coyne says he also gets a lot of personal and professional satisfaction out of helping the next generation succeed. “Watching someone develop in his or her professional skill set is just fantastic,” says Coyne, who grew up in a small farming community in Iowa. “Maybe it’s the agrarian in me, but I really enjoy watching people grow and seeing them blossom into what they can be as professionals.” Yet Coyne gives the same advice to young lawyers as he does to attorneys later in their careers. “Constantly learn new things,” he says. “All of us in the profession have to carry with us an urgent mind-set of continuous improvement. You have to challenge yourself to look for ways you

“The only way you can keep the kind of talented people we need to bring in to do the complex work we do here is to provide them with opportunities for growth. It works in both directions; that’s why it’s so important to do.” MICHAEL COYNE


We Salute

Michael Coyne General Counsel of MUFG Union Bank

Paul, Weiss (www.paulweiss.com) is a firm of more than 900 lawyers with diverse backgrounds, personalities, ideas and interests who collaboratively provide innovative solutions to our clients’ most critical and complex legal and business challenges. We represent the largest publicly and privately held corporations and investors in the world as well as clients in need of pro bono assistance.

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WASHINGTON, DC | WILMINGTON www.paulweiss.com


We are proud to support

Michael F. Coyne General Counsel, Americas

for his extraordinary contribution to MUFG and the legal profession

www.sullcrom.com new york . washington, d.c. . los angeles . palo alto london . paris . frankfurt tokyo . hong kong . beijing . melbourne . sydney


LEGAL V. BUSINESS

can do what you do better, and look for new things to do that are a little bit outside of your comfort zone.” Coyne stepped outside his comfort zone when he joined MUFG in September 2013 in a position that had just been created. Previously there had been general counsel positions in different business units, but not for the entire region. After spending twenty-one years at JP Morgan Chase and going through seven major mergers, Coyne was used to bringing several teams together on the same page, which is what he had to do when he started at MUFG. The general counsel set up regular phone meetings and videoconferences as well as the first off-site meeting with all the attorneys in the same city. “It was really about getting everybody talking to each other,” Coyne says. “So many of these people had never met each other, so that was very productive.” Outside of mentorship, it’s been a busy time for the legal department at MUFG. MUFG’s Bank of Tokyo is the fourth largest bank in the world and the largest in Japan, but also has offices in forty countries, which includes 14,000 employees in the Americas. Recently, Coyne oversaw the move to integrate the management of all US operations, both branches of the parent bank in Japan and the US national bank, under a single management team. “That’s exciting; that’s unique. None of the other foreign bank operations have our organization structure, so that was very satisfying for us to do,” Coyne says. It will also come in handy later this year when a new regulatory measure requires foreign bank organizations to create an intermediate holding company in the United States to bring subsidiary operations underneath. “We are already in the process of that, and the project we completed with our management was an important step forward,” Coyne says. Meanwhile, MUFG is continuing to grow and expand its business footprint in the Americas. “I really enjoy helping business mature, grow, and expand,” Coyne says. “And to do it in the right way; a way that is thoughtful about risk, and intelligent and strategic about both the pace and direction of growth.”

www.orrick.com

INTERNAL INVESTIGATIONS AND CORPORATE WHISTLEBLOWING PRACTICE

We want to ensure you are covered from every possible angle with an award-winning, cross-practice team of subject matter experts. We regularly conduct sensitive and high-exposure internal investigations of corporate wrongdoing at the highest levels of the executive suite, and proactively work with clients to develop effective compliance and internal reporting procedures. Our Whistleblower Task Force includes a team of experienced lawyers throughout the United States, Europe and Asia that covers the full range of Sarbanes-Oxley and Dodd-Frank issues, with subject matter expertise in securities, white collar, corporate governance and employment law. Our team has an impressive record of litigation victories and an excellent track record guiding our clients through investigations by regulators.

MUFG As one of the largest, most stable financial institutions around the world, MUFG has operations in more than forty countries.

CLIENT PERSPECTIVE We partner with your Board of Directors and its committees, in-house legal, management, compliance and human resources teams to ensure that our advice is tailored to the considerations unique to your industry, internal culture and geography.

AGENCY INSIGHT We understand the regulators because we have been on both sides of the fence. Our team has a significant number of former federal prosecutors and regulators including veterans of the DOJ, DOL and the SEC as well as a former United States Attorney General.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is proud to have served as US counsel to Bank of Tokyo-Mitsubishi/MUFG Union Bank on US regulatory and compliance matters. We salute the excellence in lawyering and judgment that Mike Coyne and his colleagues have demonstrated, and the leadership they have provided to the Bank in shaping the future of the company.

Mike Delikat Chair of Orrick’s Whistleblowing Task Force New York 212.506.5230 | mdelikat@orrick.com PROFILE Q3/16

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We congratulate our friend

Michael Coyne MUFG Americas, General Counsel for the Americas

for his contributions to the financial and legal industries

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LEGAL V. BUSINESS

FIG. 02 ACHILLES PERRY Vice President, GC (US) CIBC New York, NY

Source photo: David Beyda Studio

Things You Didn’t Learn In Law School BY JEFF SILVER

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Bravo We congratulate our friend Achilles Perry. This Profile magazine feature is a testament to your outstanding work as General Counsel (US) of CIBC. We are proud to work with CIBC and appreciate the trust that you have placed in us as your outside counsel.

Americas | Asia | Europe | www.mayerbrown.com


LEGAL V. BUSINESS

Years of experience in private practice, on the trading floor, and in the evolving post-financial-crisis business environment have taught Achilles Perry about providing the best advice to his clients

Achilles Perry (Fig. 02) made the transition from private practice to in-house counsel by jumping into the world of equity trading. As head of Goldman Sachs Equity Derivatives and Proprietary Trading Compliance, he took on specialized responsibilities for advising traders in a live market. In private practice as a litigator it had been enough to know the law and the facts of a case, but now Perry had to be familiar with the firm’s policies, market practices, business objectives, and client relationships as well. His training as a litigator, which taught him to ask questions effectively and to think on his feet, provided two skills that were essential to his success on the trading floor. Perry quickly learned that it is important to understand the full context of a transaction. “In-house, decisions aren’t always about the legal answer to the issue presented to you. You have to understand the firm’s practices, client needs, regulatory requirements and risk to the bottom line, and reputation. After assessing all those factors, it often turns out that the best advice extends well beyond legal considerations,” he says.

BALANCING THE LAW AND THE BUSINESS After three years with Goldman Sachs, Perry moved to CIBC, where he has been vice president and general counsel (US) since 2007. The skills and knowledge he gained on the trading floor have helped him adapt to a broader array of financial transactions in an increasingly complicated regulatory environment. As the finance industry faces more regulation than ever before, businesses are placing increasing importance on the legal advice they receive. As Perry describes it, this emphasis goes well beyond simply negotiating a contract between two opposing parties. New rules like Dodd-Frank mean that entire categories of transactions that were previously viewed as private contracts between businesses are now subject to additional regulatory requirements. “The evolution of transaction complexity and the

extent of regulatory compliance place even more pressure on lawyers to get it right. In banking, that’s a primary focus for counsel today,” Perry explains. Being able to synthesize and explain the new rules to business partners is an essential function of the legal team. Outside counsel may have tremendous knowledge and invaluable expertise about the law, but according to Perry, the in-house lawyer tends to have a much keener sense of how the law affects the business. “It is important for in-house lawyers to get out of the ivory tower. You have to be willing to dive in and put your advice in business terms. That’s particularly hard to do when the rules are constantly changing and you’re still trying to digest it all yourself,” he points out. The pace of change means that it isn’t uncommon for CIBC legal staff to reorganize priorities in order to deal with the issues that are most important to the business. “It’s a matter of doing triage so that we maintain an appropriate balance between the most pressing business and compliance issues in a DODD-FRANK timely fashion,” Perry says. Passed as a When the law requires changes to busiresponse to the ness practices, he has found that offering Great Recession, alternatives goes a long way toward cultiThe Dodd–Frank Wall Street vating productive relationships. “The ability Reform and Conto clearly explain potential risks and to offer sumer Protection alternatives that still help clients achieve their Act brought the objectives is essential. It also goes a long way most significant changes to finantoward helping clients and the firm undercial regulation stand why the path you’re recommending in the United makes sense,” he says.

SUCCEEDING IN THE POST-CRISIS ENVIRONMENT

States since the regulatory reform that followed the Great Depression.

In addition to adapting to new business and compliance requirements, the way Perry manages his team has evolved as well.“We need strong consensus-building and information sharing across the organization. So our

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Supporting your innovative work and proud to be on your team, we congratulate

“It is important for inhouse lawyers to get out of the ivory tower. You have to be willing to dive in and put your advice in business terms.”

Achilles Perry, Vice President and General Counsel (US), CIBC

ACHILLES PERRY

priority is on strengthening internal coordination and cooperation to make sure everyone is working from the same playbook,” he explains. Perry has always hired highly experienced attorneys but believes that legal expertise is just the beginning of what makes an individual well-suited to join his team. He maintains that the ability to ask questions and understand the full context of a given transaction, even when all the desired information isn’t available, is critical. “In house you’re often handling new and unique matters. So judgment and flexibility are the traits we look for and apply every day,” he says. One strategy he uses for identifying the right personnel for his team is asking potential hires to explain challenges they have faced, how they confronted them, and how they feel about the outcomes. “I’ve learned amazing things about people by talking with them about experiences in their personal lives and understanding what they’ve overcome to get where they are,” Perry says. As a result, he’s built a legal staff that is ethnically and gender diverse, which he thinks adds to his department’s ability to be flexible, see things from different perspectives, and adapt to new challenges. Ironically, Perry believes that his in-house experience would now make him better in private practice (not that he has plans for switching). He feels he would better understand clients’ priorities and be able to provide better guidance and comprehensive counsel. When it comes to business, it’s clear that Perry’s sense of adding value goes beyond knowing the law to providing the “right” answer.

Dentons. Now the world’s largest global elite law firm.*

dentons.com © 2016 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices.

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*Acritas Global Elite Law Firm Brand Index 2013-2015. 116

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Sidley is grateful to have partnered with

Achilles Perry Vice President and General Counsel (US) of Canadian Imperial Bank of Commerce

on many significant matters. We thank Achilles for sharing his talents with our firm. TALENT. TEAMWORK. RESULTS.

“I want to congratulate Sidley on its unique performance in the U.S. News – Best Lawyers® “Best Law Firms” rankings. Since the survey began, Sidley has amassed more first-tier national rankings than any other firm.” STEVEN NAIFEH President and Founder, Best Lawyers 45 FIRST-TIER NATIONAL RANKINGS for 2016

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L EGAL V. BUSINESS

Jean Liu thought she was going to be a scientist. Instead, she turned out to be perfectly suited to the unique demands of providing in-house legal counsel in the biotech industry. BY JEFF SILVER

JEAN LIU EVP Legal Affairs, GC, Secretary Seattle Genetics Bothell, WA

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THE BIOTECH LEGAL ENVIRONMENT Liu feels privileged to be working in an area that has such a substantial impact on patients’ lives. But she points out that biotech is a unique industry with characteristics that differentiate the general counsel’s role from other businesses. First of all, she operates in a highly regulated environment with extraordinary standards for quality and efficacy. Biotech companies also work with very long time lines and extraordinarily expensive research and

Source photo: David E. Perry

F I G . 03

Jean Liu (Fig. 03) grew up with a passion for science—at least until her second year of graduate school in molecular biology—when she realized there was something missing. While other students were enthusiastic about the narrow focus required to gain a deeper understanding of a subject area, Liu missed having a broader perspective on the overall context. She needed to know how her small piece fit into the larger puzzle. Luckily, her brother suggested she consider law school, which led to a twenty-three year legal career and rediscovering her connection to science by working with biotechnology clients. Since 1998, Liu has served as internal counsel for several biotech firms. She is currently general counsel, executive vice president, legal affairs, and corporate secretary at Seattle Genetics, a developer of antibody drug conjugates that uses proprietary technology to target cancer cells to increase efficacy and reduce the side effects of chemotherapy.


LEGAL V. BUSINESS

development costs for drugs that may or may not be successful. Combined with constantly churning news cycles and stockholder expectations, the industry faces a great deal of volatility in which stock values can experience double-digit fluctuations in a single day. “The time lines in biotech provide the luxury of being able to think long-term when it comes to strategy as compared to high tech, where there’s always a race against the clock and worrying about obsolescence. But it also means the general counsel has to have a comprehensive view across the enterprise, because getting something wrong can have huge negative implications downstream for the company,” Liu explains. That comprehensive view is the very thing that Liu missed back in graduate school. So she now thrives on the challenge of maintaining a holistic perspective on business, operations, compliance, and partnerships, and being able to provide the most appropriate, fully informed recommendations on how to reach business objectives. She recounts negotiations at a former company of a partnership deal that had run into problems. As her business development teammate reviewed the details of what the other side was demanding, Liu took a different tack, suggesting a broader approach that would overcome the issues. “I had enough perspective on the overall business objectives that I could propose a fundamental realignment instead of focusing on the nuts and bolts. It wasn’t a legal determination, but a specific recommendation based on the broader goals,” she says, adding, “That’s how I see the GC’s role: to synthesize complex laws and facts and to deliver actionable advice that’s tailored to business objectives and the specific issues at hand.”

what Liu loves about her job. Being able to create a set of tools and solutions tailored to each individual issue is her sweet spot. “I love problem solving,” she says.

AN EVOLVING TRANSITION

OLD CHALLENGES ARE NEW AGAIN

It took Liu several years to fully understand her role and responsibilities as in-house counsel. She realized that she had to become accustomed to being part of the decision-making process, or even the decision-maker, as opposed to simply providing options and letting the client decide. “As part of the transition, you evolve from being a lawyer with highly specific legal expertise to becoming more of an expert on your company. That’s what makes you valuable. You gain intimate knowledge about what the company needs and about what’s best from both a legal and business point of view,” Liu points out. The ability to facilitate, prioritize, and develop those kinds of recommendations is

According to Liu, the biggest questions for most people starting their careers are “What am I passionate about?” and “What am I good at?” She was able to find those answers over time and admits that she still prefers to look at the big picture and the broader legal, business, and scientific implications of decisions rather than focusing on any specific area. “I really enjoy being at the crossroads of business, science, and the law while exercising different skills and expertise. But I still look forward to discovering new challenges and passions where I can apply myself in fresh ways,” she says. So, even after twenty-three years, the search for new challenges continues.

AN ONGOING ENTREPRENEURIAL SPIRIT Seattle Genetics was founded in 1998, and with cofounder Clay Siegall still acting as CEO, it has retained its agility and lean philosophy toward operations. Efficiency and timeliness are still valued as they would be in a startup organization. “Even though we’re a mature company, I still always stop to ask myself if I’m adding value to what I’m trying to accomplish and make sure I’m not overdoing it when a lighter touch or simpler approach would do,” Liu says. She is also careful to always assess what can be learned from each individual situation. For example, in every matter, she tries to go back to the question “What is the primary goal we’re trying to accomplish?” This can be a difficult perspective to maintain when there are usually numerous variables that change over time. At the very least, she makes sure to review a basic checklist of objectives prior to the resolution of any negotiation or proposed recommendation. In a previous position with another company, this led to a surprising conclusion. Before submitting a negotiated deal to the board of directors for approval, she and the CEO reviewed the terms to determine if their intended business goals had been achieved. “It turned out the answer was ‘no,’ so we walked away. I still consider that to have been a victory. Coming away with nothing is better than getting locked into something that you don’t want or need,” Liu says.

Congratulations

Jean Liu General Counsel Seattle Genetics Riddell Williams is pleased to congratulate our client, Jean Liu of Seattle Genetics, for being recognized by Profile Magazine as one of today’s top general counsels. We are proud to work with such an accomplished leader.

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206.624.3600


L EGAL V. BUSINESS

F I G . 04 RYAN VAN METER VP, GC North America Imerys Roswell, GA

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LEGAL V. BUSINESS

The Law of the Mines Ryan Van Meter is the legal mind behind Imerys’ string of acquisitions, strengthening the $16 billion French multinational company’s tightening grip on the mineral and material processing industry

BY JEFF LINK

“If I don’t do this now, I might have to start from scratch,” Ryan Van Meter (Fig. 04) remembers saying to himself in his third year working for Georgia congressman John Linder. His work was interesting, encompassing everything from ironing out the details of the US Clean Air Act to drafting a bill to redraw the border between Georgia and South Carolina to save an individual from being deported. But his LSAT score had an expiration date, and Van Meter was convinced that if he was going to nurture his newfound expertise in environmental policy and politics to become the world’s next great litigator, the time was nigh. Yet Van Meter’s career path took a turn from litigation. While still in law school at the University of Virginia, he spent half a summer in the US Environmental Protection

Agency’s office of general counsel in a competitive clerkship. Then he spent summer 2003 at Alston & Bird, becoming an associate in the law firm’s land use group. Not long after, Van Meter was placed in a role outside of litigation, on the transaction side. His work handling environmental compliance issues, mergers and acquisitions, even the eye-drying details of procuring a client’s interior designer’s license, was not exactly the high-profile drama of John Grisham novels. Soon, however, Van Meter realized transactional law was his calling, giving him the chance to solve problems outside the rules of discovery and evidence—writing contracts on the spot and working with people who weren’t lawyers. “In litigation, parties come to the problem wanting to fight,” Van Meter says. “In a transaction, people

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“In litigation, parties come to the problem wanting to fight. In a transaction, people come to a problem wanting to work it out. The energy is more productive and creative.”

Neal Gerber Eisenberg congratulates

Ryan Van Meter , Vice President and General Counsel - North America, of IMERYS on his feature in Profile.

RYAN VAN METER

We are proud to serve as legal counsel to

IMERYS and applaud Ryan for his success. We look forward to our continued partnership.

ngelaw.com DIATOMACEOUS EARTH The substance is a common filtration agent, used in swimming pools and when making beer and wine.

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come to a problem wanting to work it out. The energy is more productive and creative.” Van Meter relished the work, but his growth at Alston & Bird had a ceiling. He was a jack-of-all-trades. The firm, at least at its top levels, was looking for specialists. “In my third year, I attended a seminar on what it takes to be a partner. It was a great seminar, and I realized I wanted absolutely nothing to do with it,” he recalls. So when Van Meter’s mentor, Doug Cloud, gave him the tip that one of the firm’s clients, Imerys, was hiring, he jumped at the opportunity. After interviewing twice, Van Meter secured a position as vice president and general counsel for the French multinational mineral producer’s rapidly growing North American division. Van Meter will be the first to tell you Imerys is not a household name. The firm processes a number of minerals and materials most people don’t recognize, or at least ones that don’t often surface on the pages of BuzzFeed. These resources, however, are the raw ingredients of a highly profitable industrial backstage that supports all kinds of consumable goods and high-tech applications. Within Imerys’ portfolio are minerals like calcium carbonate, which is used to make paper white; talc for cosmetics and paint; mica for engineered plastics; and perhaps most curious: diatomaceous earth, a substance comprising the fossilized silica shells of diatoms, a hardshelled algae whose largest marine reserves are found in California. “This silicate secreted for millions of years filters almost all the beer you consume,” Van Meter says, noting the quiet power of an industry few realize. Imerys’ February 2015 acquisition of the Greek mining company S&B, along with the recent absorption of BASF’s


L EGAL V. BUSINESS

paper hydrous kaolin reserves and Solvay’s Precipitated Calcium Carbonate division in North America, adds to the firm’s growing mineral portfolio. Such growth has helped the company claim its position as the market leader of reference, Van Meter says, or the second largest producer for nearly every mineral or material it procures and processes. The company reported sales revenue of more than €3 billion over the first three quarters of 2015, according to financial data on the Imerys website. In the last four years, it has rapidly expanded its footprint in the developing world, opening a monolithic refractory plant in India, a fused alumina plant in Bahrain, and an andalusite plant in China. In his office in Roswell, Georgia, Van Meter helms a ten-person legal team responsible for the entirety of Imerys’ North American legal affairs. Their work, he says, is as varied as the minerals that Imerys mines. On any given day, that could mean reviewing employment and hiring matters, minimizing the company’s risk in acquisitions and mergers, or ensuring compliance with evolving environmental regulations—covering everything from carbon emissions levels to land use. Many of the firm’s reserves—such as high-purity quartz used to build microprocessors—are particularly valuable, given limited supply and strong demand in emerging markets. This circumstance makes Van Meter’s job as much about answering thorny legal questions as working with colleagues to formulate the contractual language to strike strategic business deals. “I spend my days talking to other lawyers, hiring, and litigating, but the most important things I’ve learned so far come from the engineers, finance people, general managers, and safety and environmental folks in the trenches,” Van Meter says. “Lawyers like to think their work is the most interesting or important to a company; it’s not true, it’s just a different kind of work.” Notably, Van Meter has had to educate himself on the legal issues surrounding a widely publicized land swap on New York State land in the Adirondacks. As reported in the New York Times, a 2013 amendment to the New York Constitution granted NYCO Minerals permission to conduct open-pit

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McGuireWoods LLP congratulates

Ryan Van Meter for his leadership as Vice President & General Counsel North America at Imerys. We value our years of working together, and we appreciate the trust placed in our firm. McGuireWoods, one of the world’s leading law firms, has earned the loyalty of our many longstanding clients with deep and broad legal experience, a passion for understanding the particulars of their businesses and markets, innovative delivery of practical, businessminded solutions, and unmatched service. In the end, our continuing success comes down to one simple fact: We listen to our clients.

Joel H. Spitz, Partner 312.750.5704 | jspitz@mcguirewoods.com 77 West Wacker Drive, Suite 4100 | Chicago, IL 60601-1818

1,000 lawyers | 21 offices | www.mcguirewoods.com


Congratulations!

Gordon & Rees is pleased to support Imerys and Ryan Van Meter. Gordon & Rees serves clients in a diverse number of practices and industries including: Chemical and Mineral Exposure Defense

We salute the achievements and recognition of our client and friend

Ryan Van Meter, General Counsel, IMERYS

Product Liability Aviation

Dentons. Now the world’s largest global elite law firm.*

Transportation Torts Drug and Medical Device

IMERYS TEAM: Nancy Erfle 121 SW Morrison St. Suite 1575 Portland, OR 97204

65 0 LAWY E RS

|

Michael Klatt & Leslie Benitez 816 Congress Avenue Suite 1510 Austin, TX 78701

4 0 PRACT I C E S

|

Ann Thornton Field One Commerce Square 2005 Market Street Suite 2900 Philadelphia, PA 19103

3 7 O FF I C E S

www.gordonrees.com

|

2 4 STAT E S

dentons.com Š 2016 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices.

*Acritas Global Elite Law Firm Brand Index 2013-2015.


LEGAL V. BUSINESS

mining on 200 acres of state land, with the caveat they would add 1,500 acres to the Adirondack Forest Preserve. The language of the narrowly passed referendum was developed by NYCO in collaboration with the New York State Department of Environmental Conservation. When Imerys absorbed NYCO as part of the S&B acquisition, Van Meter was called on to advise the company’s central office in Paris about the legal ramifications of the deal. In short: Imerys, through its subsidiary NYCO, is interested in expanding an existing mine adjoining the forest reserve land to extract wollastanite, a mineral used in the production of paints and plastics. Van Meter says the land swap, requiring nothing less than a rewriting of the state’s constitution, is a novel public-private collaboration that is environmentally sensitive and economically beneficial—the kind of creative, problem-solving approach to the law that he finds appealing. Somewhere deep in his blood, Van Meter claims a traceable connection to mining: his mother’s father built oil and gas pipelines in Alaska; his father’s father was a coal miner in West Virginia. Yet until he arrived at Imerys, he had no real experience in the industry. The need to continuously learn and adapt has kept him on his toes, whether that means hashing out a contractual provision for energy surcharges, or working on strategic asset acquisitions in the middle Georgia kaolin belt. “It’s been a steep learning curve, there’s no question. It’s a really exciting time for the company. We’re looking for new ways to grow the business and make changes quickly,” Van Meter says. “It’s impossible to understand our full portfolio because we’re always trying to grow it in a way that strengthens our position.”

With more than 1,000 lawyers in twenty-one offices worldwide, McGuireWoods consistently delivers excellence for our clients in corporate, litigation, and regulatory matters. We are a full-service law firm, with diversely experienced lawyers assisting private and public clients from a range of industries, including real estate financing and private equity. As trusted business advisors, we devise solutions that achieve our clients’ business goals, and help close the deal clients want on the terms they have set.

KEVIN CUNNINGHAM VP, GC Cabot Oil & Gas

A LEGAL EXPERT COMPARES NOTES

FIG. 04.1

“I can definitely identify with two themes woven into Ryan’s experience. First, the variety of daily challenges that a GC faces tests all of one’s talents and competencies. Passing those tests brings one a deep sense of professional fulfillment as well as the excitement of exploring an ever-changing business landscape. The other attribute of GC work, and perhaps the most important, is the necessity of the GC and his or her department to move beyond being just a service provider and to become value-creators contributing to the company’s bottom line. I see that in Ryan making favorable things happen not only in the litigation arena but also in the M&A transactions that are critical to growing a business. I think these themes are central to every GC’s professional life.”

For more than a century, Alston & Bird has been dedicated to providing the strongest array of legal talent and expertise needed by our clients. We are proud to partner with Imerys and Ryan Van Meter to find solutions to some of their most pressing legal needs.

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L EGAL V. BUSINESS

F I G . 05 DANIEL ZACCARDO SVP, GC Accretive Health Chicago, IL

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LEGAL V. BUSINESS

This Lawyer Should Wear a Stethoscope In many ways healthcare reform is a financial matter, and where a financial landscape is changing, good legal counsel is needed to pay close attention—which is what Accretive Health’s Daniel Zaccardo does best

BY RUSS KLETTKE

Not too many law students think they will one day help sick people get better. That’s what medical school is for, right? Not entirely. Doctors, nurses, therapists, and all other allied health professionals are the most important people in the delivery of healthcare services. But if recent history has shown, it is that the financial side of healthcare can be a matter of great significance for millions of people. And where money matters, so too do lawyers. Daniel Zaccardo (Fig. 05), senior vice president and general counsel for Accretive Health, knows how this works. “My vision of what lawyers did came from LA Law,” he says, referencing the television series that ran

from 1986–1994. “After a few weeks I learned it wasn’t.” What the remaining two years and fifty weeks of law school taught him—and his career since—is that business law is about making things happen. Before joining Accretive, Zaccardo was associate general counsel for ADP, the payroll processing company, and before that, he worked in mergers and acquisitions for a New York law firm. Each position enabled him to touch people’s lives and livelihoods. But working in a healthcare-related business—in a time of significant, systemic change—took that to a whole new level. Accretive is a provider of revenue cycle management services to hospitals. That includes the management

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“GCs have morphed from legal advisers to business strategists. So much more of what we do has to be seen through the lens of legal and business risk. . . . Early in my career, I used to be relegated to just the law. But now I have an equal seat at the table with executives. From the conversations there, you wouldn’t necessarily know I’m a lawyer.” DANIEL ZACCARDO

ACA President Barack Obama signed The Affordable Care Act into law on March 23, 2010, to reform healthcare in the United States.

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of patient admissions, insurance verification, medical coding, billing, and collections primarily from insurance companies and government payers and, therefore, hospital cash flow. But perhaps the part of Accretive’s work with hospitals that gets really interesting—and which involves Zaccardo—is the value-based reimbursement model and Accretive’s new services to help its clients with that new model. VBR is the part of the Affordable Care Act (ACA, or “Obamacare”) that is designed to whittle down costs for healthcare service delivery. It replaces the entrenched fee-for-service structure, where each provider and prescribed services, devices, and hospital stays would rack up charges with no set limits. Under the VBR system, the full cycle of care for an illness, injury, or condition has to stay within reasonable cost parameters. If the expense of a patient’s care exceeds that limit, the provider will not be fully reimbursed by insurers for all expenses. But if the expense is less—if the illness or injury was managed to a good health outcome, but at a cost below the limit—the provider earns a profit. This is a hugely important, if not disruptive, component of the ACA. Accretive’s own 2015 whitepaper on the topic (“The Provider Crossroad to Value-Based Reimbursement”) explains how this system had replaced fee-for-service care in 8 percent of providers in 2014 and


LEGAL V. BUSINESS

will grow to 25 percent of providers by 2017 and 50 percent by 2020. “That’s a big change in a short period of time for how providers deliver healthcare in the US,” Zaccardo says. “We are helping our clients get their arms around this, helping them figure out how to do a more coordinated approach. It’s disaggregating some providers, which leads to more M&A activity in many cases.” So that’s where financial health plays an important role. Note that Accretive services more than ninety hospital systems across the United States, responsible for managing the revenue cycle functions for about $17 billion annually in billings for those providers. How it successfully manages those functions plays a critical role. As Zaccardo explains, most of the hospitals Accretive services are nonprofits operating on very thin margins. The influx of more patients easily affects both costs and revenues, but in complex ways. “On the one hand, Obamacare signed up millions more people in insurance plans,” Zaccardo says. “But many more patients have higher-deductible plans, meaning a higher percentage of billings are to patients and not insurers.” This, he says, places greater stress on individuals as well as the system. Consequently, Accretive’s services have a larger role in managing the hospital’s collections from both patients and their insurers. Without adequate payment for services, those hospitals would fail at their mission to meet the needs of their communities (several dozen hospitals, mostly in rural areas in states that did not expand Medicaid coverage, have been shuttered in the past four years). It is another way of saying the regulatory environment is driving much of the size and scope of Accretive—so much so that the top attorney has a big role to play in how the company plans for the future. While there is a separate compliance officer, Zaccardo’s task includes staying abreast of changes in the regulatory environment. “I have to look around corners to see if there will be changes in the regulations and rules that affect our clients and how we operate our business,” he says. “That’s part of my role.” Such responsibility spells in part the rise of the general counsel as a businessperson. “GCs have morphed from legal advisers to business strategists,” Zaccardo says. “So much more of what we do has to be seen through the lens of legal and business risk. Early in my career, I used to be relegated to just the law. But now I have an equal seat at the table with executives. From the conversations there, you wouldn’t necessarily know I’m a lawyer.” The Zaccardo of decades ago, studying for the LSATs, might be surprised and intrigued by what he does in 2016, as general counsel roles continue to expand in the healthcare industry.

THE PROVIDER CROSSROAD Accretive’s whitepaper also points out that by not responding to this shift quickly, providers will face a significant loss of revenue.

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L EGAL V. BUSINESS

John Pantazis ensures Heartland Dental provides quality support so clinicians can focus on what they do best—caring for patients BY AMY MARTINO

F I G . 06 JOHN PANTAZIS VP, GC, Secretary Heartland Dental Effingham, IL

Doctors are experts at diagnosing and treating medical issues, but Heartland Dental turns doctors into even stronger leaders in their careers and communities. A service-oriented philosophy fuels the Illinois-based company’s supportive relationship with doctors and affiliated practices across the United States based on teamwork and career development. Here, Profile chats with John Pantazis (Fig. 06), Heartland Dental’s vice president, general counsel, and secretary, who reveals his take on the best approach for running a legal team in the medical industry, and how Heartland Dental cultivates some of the finest minds in dentistry.

How does Heartland Dental help supported dentists focus on patients rather than paperwork? Dentistry is a cottage industry, and you have a lot of single dental offices with one or two dentists who do everything. They’re not just seeing patients, which is what they’re passionate about and what they’ve gone to school to do. They’re also doing the purchasing, human resources, IT, insurance, and everything else. And all of those things are getting more and more complex. Heartland Dental offers all of those nonclinical services from individuals who specialize in those areas, so it’s really just about specialization. Specialization is everywhere in the economy—that’s what it’s all about. You could almost say that economic progress is measured by specialization.

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LEGAL V. BUSINESS

Did Heartland Dental’s service-oriented philosophy play a role in your decision to join the company? It did. America, like a lot of places, has an issue with dental access, and access to dental care is an issue that’s related to a lot of other health problems. I think a lot of people underestimate how important dentistry is and that it really matters. Heartland Dental helps improve access to care. Instead of being in the back office, supported clinicians are able to spend more time with their patients and are also able to participate in community initiatives like Free Dentistry Day. I’m working on having my entire team go to an office in support of Free Dentistry Day. It’s one of our goals for next year. We culturally believe it’s important, and it’s celebrated throughout the company.

What challenges are unique to being a general counsel in the medical industry? It’s a highly regulated industry, so you obviously have a lot of regulatory work. You have a broad spectrum of legal issues. We deal with everything from malpractice and employment to HIPAA (US Health Insurance Portability and Accountability Act) and other privacy considerations. We’re a growing company, so we do a lot of transactions, and we’ve gone through a few transactions with different private equity sponsors as well.

As one of the largest management labor and employment law firms, Ogletree Deakins is honored to partner with John Pantazis and the Heartland Dental team.

FREE DENTISTRY DAY Free Dentistry Day was created to provide care to adult Americans who can’t afford dental services. In 2015, over 2,500 patients were given free dental care and more than $1,000,000 in free dentistry was provided.

How did you tackle being the first in-house counsel at Heartland Dental? I think it was just integrating into the leadership team and earning trust to become viewed as a partner and somebody who can help solve problems rather than create more problems. We don’t want to be seen as scary, but as a valuable resource by the other members of the executive team and by the doctors we support across the United States. We didn’t want to be viewed as “legal,” but instead as the friendly, helpful people in legal who can help you accomplish things. I know that may sound a little silly, but it’s true. That really is what you need to do so that you can integrate. It’s a learning process both ways.

What strategies did you employ to build and grow your team? As a company we’ve worked a lot with the Bell Leadership Institute out of the University of North Carolina on strategies for recruiting the right people. And so we’ve followed that process to try to recruit and retain the right folks. We’ve recruited an outstanding team—a junior attorney and four paralegals who support the department. It’s about finding the right people, the right fit, and then trying to grow them and give them the right amount of guidance.

ROBERT F. SEIDLER Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 111 Monument Circle, Suite 4600 | Indianapolis, IN 46204 317-916-2115 robert.seidler@ogletreedeakins.com

BRIAN L. MCDERMOTT

How have you proved your value to supported dentists and other departments?

Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 111 Monument Circle, Suite 4600 | Indianapolis, IN 46204 317-916-2170 brian.mcdermott@ogletreedeakins.com

For the doctors we support, sometimes it’s as simple as being there to answer the phone and helping with dayto-day concerns. One time, a newer doctor called and was upset because he had put fluoride on a kid’s teeth.

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“We don’t want to be seen as scary, but as a valuable resource by the other members of the executive team and by the doctors we support. . . . We didn’t want to be viewed as ‘legal,’ but instead as the friendly, helpful people in legal who can help you accomplish things.” JOHN PANTAZIS

How has your team’s legal resource guide helped provide support? We obviously can’t provide legal advice, but what we can do is provide answers to some of the frequently asked questions that pop up from time to time and point out what’s on the books in the different states. That’s something we’ve done a lot of work on and continually update, to try to provide a valuable service to the supported doctors and team members.

Have you found that the resource guide has saved your team time in answering one-off questions? I think it has saved time with people having to try to figure things out themselves. One of the biggest benefits of Heartland Dental is that the supported doctors have access to roughly 1,100 other doctors if they have a question. We have an all-doctor e-mail thread where they’re frequently asking each other questions and consulting and getting support that way, which is unique in the dental industry.

The kid’s mom thought fluoride was scary, so the doctor was panicked about that and called, and I just listened, just to be there for him. If an office calls us because it can’t get a patient to sign a release, we will help provide an ideal communication plan for that patient, whether it’s creating an e-mail, letter, or proper language. If doctors have an issue with the dental board or something similar, we can help support them through that process as well. In terms of the value we provide to the other departments, we support everything from helping the finance team as they look for new financing, to doing regulatory work that ensures Heartland Dental’s interests are protected. We do deal with some anticompetitive activity by state dental boards at times, so we’ve done a lot of work on that front.

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Does the legal team play a role in the e-mail thread? We do. We’ll jump in and try to answer questions as appropriate, but it’s really a community. It’s almost like a family of different folks, and people chime in when they know the answer.

What’s the goal of your initiative to move toward model legislation? As the dental support organization, or DSO, model has grown, we see some anticompetitive regulations that get considered. The model legislation is an effort to try to pass a model bill that makes sense and that clarifies exactly what DSOs do (nonclinical support) and don’t do (practice dentistry), so that we can hopefully put that issue to bed. The hope is to get a framework that works for this growing industry and better define it. With that on the books, there’s less fertile ground for anticompetitive efforts to regulate DSOs improperly.


LEGAL V. BUSINESS

The ABCs of Legal At Sesame Workshop, Joe Salvo ensures a bright future for Elmo and friends

FIG. 07 JOE SALVO EVP, GC Sesame Workshop New York, NY

B Y JACQUI SHIN E

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Joe Salvo (Fig. 07) does not have a favorite Muppet. That’s what he says, anyway. As a father of five, he understands that he can’t play favorites. “It’s very important that they all feel equally loved,” Salvo adds. He will neither confirm nor deny rumors that he has a particular attachment to Cookie Monster. For Salvo, Muppet favoritism is a professional hazard. Photos of eight Muppets adorn his office walls at Sesame Workshop, formerly known as Children’s Television Workshop, where he is executive vice president and general counsel. Founded in 1968 by television producer Joan Ganz Cooney, the nonprofit Sesame Workshop is devoted to developing educational media to prepare young children for school. The Workshop is best known for its flagship program Sesame Street, a public television mainstay that has entertained and educated three generations of young children in the United States and around the world. One of Salvo’s first major tasks reached fruition last fall when the Workshop announced a five-year deal with HBO that will give the premium cable channel first broadcast rights for new episodes for nine months. After that, the new episodes will be available to PBS stations, the Workshop’s partners for the past forty-six years, for free. A cornerstone of the deal from Salvo’s perspective was that the show continue to be available, uninterrupted, on PBS. Don’t worry: the Sesame Street kids that viewers know and love won’t be changing anytime soon, according to Salvo. “We are maintaining complete creative control over this program, as we always have. Sesame Street is a unique program,” he says. “It’s an unusual show to make because we put an enormous amount of forethought and research into the creation of the programming. None of that is changing.” If anything, Salvo says, the HBO deal brings unprecedented fiscal stability that will allow the Workshop to produce more content than ever. Keeping pace with the changing media landscape has always been in the Workshop’s DNA, Salvo says. “When Sesame Street started in 1969, Joan Ganz Cooney had a wild idea that you could take this new medium called ‘television’ and use it to help educate the nation’s preschool children,” Salvo explains. “What television was to 1969, YouTube and streaming services are to 2016. Part of what we’re doing is adapting our content and mission to these new forms of distribution.”

A NEW NONPROFIT WORLD Salvo has witnessed the rapid evolution of digital media firsthand. He cut his teeth as a copyright and entertainment litigator at Weil, Gotshal & Manges, where he worked extensively with Internet music-service providers on international publishing and sound recording rights issues. Highlights of his stints at record labels Arista, Sony, and Sony BMG Entertainment included negotiating deals with major artists like Bruce Springsteen, Celine Dion, Whitney Houston, Yo-Yo Ma, and John Mayer.

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“What television was to 1969, YouTube and streaming services are to 2016. Part of what we’re doing is adapting our content and mission to these new forms of distribution.” JOE SALVO

WASH UP! World Vision and Sesame Workshop have partnered to create WASH UP! kits, which can be donated through the World Vision website. Each kit is designed to teach a group of children, and contains engaging videos, print materials, and games to bring health lessons to homes and communities.


L EGAL V. BUSINESS

Over the years, Salvo facilitated a number of major mergers for those companies and for children’s entertainment company HIT Entertainment. In 2015, Jeffrey Dunn, who joined the Workshop as president and CEO the previous fall, brought Salvo over from HIT, where the two had worked together, to the Workshop—the first nonprofit organization for which Salvo has worked. Many of the issues Salvo handles at the Workshop are no different than those he encountered in the for-profit entertainment industry. The Workshop, like other organizations, distributes its content on platforms across the world, and Salvo’s team of eleven attorneys and paralegals fields issues at the intersections of copyright, international, intellectual property, corporate, and consumer law. But working for a nonprofit organization adds new challenges. “A lot of people know Sesame Workshop from Sesame Street, the program,” Salvo says. “But there’s a whole other aspect: the mission-related work we do across the world, which includes educating young women in Afghanistan and hygiene initiatives that we are doing in Africa. We deal with NGOs (nongovernmental organizations) and grants from the US government, so there’s a whole other component to this job that’s very new and exciting for me.” In 2015, the Workshop launched its WASH UP! Initiative, a public health program that aims to reduce infant mortality from preventable diseases. “Diarrhea and dysentery are two tremendous killers in third-world areas,” Salvo explains. “So much of it can be prevented by simple things like washing your hands with soap and putting your sandals on before you go to the latrine.” A lively new Muppet named Raya is helping to impart those lessons in places like Zambia, India, Bangladesh, and Nigeria. The WASH UP! Initiative was originally developed with funding from the Bill and Melinda Gates Foundation, but a new partnership with World Vision, a major NGO that provides improved clean water access and sanitation in the developing world, will expand the program even further. “We’re very excited about working with someone like World Vision that has such a boots-onthe-ground presence in so many different areas and also makes long-term commitments to the communities it works with,” Salvo says.

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We congratulate Joe Salvo, Executive Vice President and General Counsel of Sesame Workshop, and celebrate the accomplishments of the entire Sesame Workshop in-house legal team.

Patterson Belknap Webb & Tyler LLP is a New York City law firm with more than 200 lawyers. The firm is included on The American Lawyer's 2015 "A-List" of the 20 leading law firms in the United States. Patterson Belknap delivers a full range of services across approximately 20 practice groups in litigation and commercial law, with one of the largest practice groups devoted exclusively to tax-exempt organizations in New York. For more information on the firm, please visit www.pbwt.com. For the firm’s online resource for information and insight on the unique legal issues impacting nonprofit organizations, visit www.exemptorgresource.com.

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LEGAL V . B U S I N E S S

DAVIS WRIGHT TREMAINE

applauds

“Sometimes we do the same thing we’ve always done for a good reason, but sometimes it’s because we are doing something just the way we always have. The needs of the organization evolve as the business changes.”

Joe Salvo on this well-deserved recognition of his leadership. It has been our privilege to work alongside the

JOE SALVO

team at Sesame Workshop, and to support their important work in

FROM FRONT STAGE TO HEAD OFFICE

bettering the lives of children all over MTV’S BASEMENT TAPES

the world.

Unsigned bands from across America would submit music videos and viewers would vote. The 1983 winner, rock band Rail, scored a recording contract.

Salvo’s interest in entertainment law stemmed from his experiences as a performer. After college, he fronted rock bands in New York City for about six years before matriculating at St. John’s Law School. (One of Salvo’s bands was a finalist in the 1983 MTV Basement Tapes series, a competition for unsigned acts.) “There are a lot of us recovering musicians, performers, actors, actresses, and the like that actually populate this field,” Salvo says. “In some ways, it makes us more sensitive to artistic concerns—I’m a lot more generous, for example, in my approach to performers, writers, and creators.” Conversely, Salvo admits that his entertainment insight also makes him more insensitive, meaning less likely to accept outrageous terms from artists. For example, as Salvo says: “Flying a hairdresser 3,000 miles across the country because there’s no hairdresser in Los Angeles that could possibly do someone’s hair or makeup the same way.”

THE CHALLENGE TO UPHOLD COPYRIGHT LAW Salvo, who began working in the music industry when the compact disc was in its infancy, is a keen observer of emerging legal issues in media and technology. Right now, he says, there are two things going on: massive changes in the way that content is being consumed and distributed

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across all media, from audio to book publishing, and an equally seismic reorientation of the industry’s economic models. Where a $16 CD once generated a $4 profit, MP3 downloads priced at 99 cents may only produce a 25- or 30-cent profit margin, according to Salvo. “Now it’s all about streaming audio,” he says. “Where it’s literally fractions of a penny that are paid for each stream of music.” All of this is further complicated by another factor: obsolete copyright law. “At the same time, you have very significant changes in the distribution model and the economics of the distribution model,” Salvo says. “We are saddled with copyright laws that are fifty, sixty, seventy years old.” Current copyright law is a rickety patchwork of standards that were originally developed for analog media. “You see the courts constantly trying to fit round pegs into square holes, trying to use these old laws to figure out what they mean for these new business models,” Salvo says. Very basic definitions fundamental to copyright doctrine—“What’s a copy? What’s a performance?”—were developed before the Internet was even a glimmer in anybody’s eye, he explains. Salvo, a past president of the Copyright Society of the USA, says it’s well past time for a massive overhaul of copyright legislation. Whether and when that will happen is a question of political will in Congress and the US courts.

WELCOMING THE TWENTY-FIRST CENTURY Sesame Workshop’s legal leader appreciates that he can bring a fresh perspective to a venerable organization. “One of the things that’s interesting when you come into an organization that’s forty-five years old is that new arrivals bring with them the opportunity to examine fundamental practices,” Salvo says. “Sometimes we do the same thing we’ve always done for a good reason, but sometimes it’s because we are doing something just the way we always have—and that’s not always the right reason. The needs of the organization evolve as the business changes.” In the case of Sesame Workshop, the organization retains the same commitment to creating meaningful educational content for young children and to partnering with public media. Yet, in lots of other ways, the Workshop, like any entertainment company, has to change with the times. “I think it’s critical that we continue to evolve, and we continue to find new ways to bring what I think is a very wholesome message and curriculum to a whole new generation of kids,” Salvo says. The denizens of Sesame Street have a strong advocate in Joe Salvo.

Innovation. Integration. Insurance Expertise.

COPYRIGHT SOCIETY OF THE USA The Copyright Society of the USA is a nonprofit organization devoted to copyright law awareness and education. It has more than 1,000 members nationwide.

We’ve been earning your trust for more than 45 years. Only Vertafore’s breadth of solutions connect independent agents, carriers, and MGAs across the entire insurance channel. More than 500,000 people trust Vertafore every day, among us the leader in modern insurance technology.

Patterson Belknap is proud to represent Sesame Workshop, a leading nonprofit educational organization. We value our longstanding relationship with Sesame, and admire the organization for its mission to help kids grow smarter, stronger, and kinder. We congratulate our colleague Joe Salvo and his team on this well-deserved recognition.

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Who says a 120-year-old brand can’t act like a startup?

F I G . 08 DIEDRE GRAY SVP, GC, Chief Administrative Officer Post Holdings St. Louis, MO

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Diedre Gray is ushering in the reincarnation of Post Holdings

BY BRIAN BARTH

Most large, established companies have a clearly defined corporate culture. For the successful businesses of the world, this internal identity is as much a source of pride as their identity in the marketplace. But Diedre Gray (Fig. 08), senior vice president, general counsel, and chief administrative officer of the food industry conglomerate Post Holdings, says there’s no corporate mission statement at Post, no handbook proclaiming the values that employees are expected to share. “That doesn’t come from a place of not wanting a culture, it comes from a place of wanting everyone to be a contributor to that culture,” she explains. It’s unusual perhaps, but given that Post has grown from a $1 billion company to a $5 billion company in less than four years, one is inclined to believe a lack of “culture” might be a good thing. A look at Post’s unique history illuminates why that may be the case. In many ways the company is like a startup—minus the heady, holier-thanthou attitude that often accompanies young enterprises that have yet to prove themselves. The Post brand made its debut in the late nineteenth century when C. W. Post developed Grape Nuts, America’s first health-oriented, ready-to-eat cereal. Post evolved into General Foods, one of the first food industry conglomerates, which was acquired in 1985 by Phillip Morris, who merged it with Kraft Foods shortly thereafter. Not surprisingly, the Post brand received less and less attention as it

became part of an ever-larger conglomerate, and in 2008, Kraft sold Post to the private-label manufacturer Ralcorp, which then spun off Post into a separate company in February 2012. Gray joined Post in December 2011, in anticipation of the company becoming independent again for the first time in nearly a century. Gray was the fifth employee of the newly formed Post Holdings, giving her a direct role in crafting the company’s new incarnation. She says that unlike other companies of its size, Post—which counts five business lines, scores of consumer products, and around 9,000 employees in its ranks—is remarkably similar to many startups. This means executives like Gray often juggle multiple hats, jumping in where needed and showing a willingness to stretch the boundaries of the traditional corporate roles. Gray is charged not only heading up the legal department, she also oversees human resources and corporate development, which has executed eleven M&A transactions since the spin-off in 2012. “It’s like I have three arms,” Gray says. “Sometimes it’s one too many arms, but we make it work. As a growing company there are tons of opportunities for those that want to grab them—it’s not a siloed environment. We’re very open to people trying things out, switching things around, and seeing what they like and what they don’t like. There’s no one here who is going to tell you to stay in your own box.”

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WE JOIN IN CONGRATULATING OUR FRIEND AND CLIENT

DIEDRE J. GRAY FOR HER LEADERSHIP AND SUCCESS AT POST HOLDINGS, INC.

WE APPRECIATE THE OPPORTUNITY TO PARTNER WITH DIEDRE AND HER TEAM ON A WIDE RANGE OF LEGAL MATTERS AND WISH HER CONTINUED SUCCESS.

PROUDLY SERVING THE BUSINESS COMMUNITY FOR MORE THAN A CENTURY lewisrice.com


LEGAL V. BUSINESS

More than a focus on internal corporate structure, Post has pushed to expand and diversify its holdings since becoming a standalone corporation. The intent is to acquire brands that are “on trend” and in alignment with Post’s 120-year-old mission of bringing quality food to the kitchen table. “Whatever you eat for breakfast, we probably have it,” Gray says, referencing the Post portfolio that includes everything from Honey Bunches of Oats to Better’n Eggs. One notable acquisition was PowerBar, a brand that pioneered the market for energy bars and sports drinks, a market that continues to show healthy growth. “PowerBar is a very well-known brand,” Gray says. But after purchasing it from Nestle, “The challenge for us is in figuring out how to revitalize it,” she adds. Post is Gray’s first foray into the food industry, but she is no stranger to the logic of manufacturing businesses. Prior to Post, she was an attorney with SunEdison, the global renewable energy company that manufactures solar panel equipment, and the St. Louis law firm Bryan Cave, where she represented a variety of clients in the manufacturing sector. “I’ve always worked for companies that made things, be it wrenches, solar panels, or teddy bears,” Gray says. “But there is no master plan—I’ve always tried to go with the flow in terms of when opportunities arise.” SunEdison was one of her clients at Bryan Cave, whose leadership asked her if she would jump ship and come in-house. Two years later, a thoughtful call from a colleague led to the position at Post. “I got a call on a Saturday afternoon: ‘This is something you might be interested in, do you want me to throw your name in the hat?’ I said, ‘Sure.’ I didn’t really know much about it, but it all worked out.” Gray’s ease in following the whims of serendipity seems to be serving her well at Post. She says she’s not one to engage in hand-holding, preferring to give her reports just the right amount of guidance needed to do the job and plenty of space to figure things out for themselves. But going with the flow is coupled with a steely attitude about getting the job done: “I don’t have time for, or an interest in, micromanaging,” she says. Her legal team has grown from two to ten since the spin-off, and everyone wears multiple hats. Her associate general counsel is in charge of litigation, but also negotiates the company’s labor agreements and looks after employment matters. Another associate general counsel takes care of corporate legal work, but also oversees real estate transactions and works on the company website. The larger business units also have small, dedicated legal teams. “Because we are a fairly lean department—we don’t have forty or fifty attorneys as some companies our size would—all of our attorneys are very adept at juggling different subject matters,” she says. “We’re divided up in terms of where people’s interests are and where their skills are. I encourage an interdisciplinary approach.” Another one of Gray’s mantras is what she calls “Bringing your brain to work.” This means encouraging her reports to get out of the comfort zone of their office and interact with other business units as much as possible. It’s a habit she imposes on herself as well: Gray

has primary responsibility in three arms of the corporation, but she plays an ad-hoc role in several others that lawyers normally wouldn’t be directly involved in, she says, such as sustainability initiatives. In this spirit, Gray encourages her legal team to follow suit. “Go visit their clients in other locations, have dinner with them, sit in on meetings,” she explains. “That’s really the best way to learn our business. And the more you learn the business, the better legal advice RYAN VAN METER you can provide.” VP, GC North America Imerys Gray has seen to it that the legal function at Post is well-integrated in all the business FIG. 08.1 units; a mentality she says is fully supported A LEGAL EXPERT by senior management. Unlike some compaCOMPARES NOTES nies where the legal department is viewed as a hurdle to be crossed in getting a project off the “Ms. Gray’s approach to managing ground, legal has a seat at the table in all key her legal team is strategy sessions, according to Gray. “Instead very familiar to of the legal department being ‘the department me. Our job is to of no,’ the goal for us to be the department of see the risks and ‘how can we do that?’” she says. help the business make decisions that The company’s affable, open-minded, and anticipate and exuberant startup culture was apparent early account for those on, Gray says, when the CEO came into her risks. We can’t do office six months in and said: “I sense that that if we only see you are not wanting to take risks, and that’s risks as they come up. Post’s willnot really your role here. Your role here is to ingness to include advise what the risk is and tell us whether in-house attorneys or not we should take it. And we will either in its daily opertake that risk or not take that risk. But I will ations maximizes back you either way.” It was a turning point the benefits of an in-house legal for Gray. She knew her own approach to busidepartment. ness was fully in line with the bigger picture at Post. That inclusiveness takes some risk out Risk aversion is a lawyerly tendency, but of Post’s flexible it can easily stifle innovation when it gets out culture, which is an of balance. “Some people avoid risk because empowering force, of the fear of what happens if you’re wrong,” but it can constrain Gray says. “And it’s hard when that becomes action outside the bounds of the compart of a blame culture at a corporation, pany’s comfort zone. where someone who makes a decision that When you go light turns out to be wrong is chastised or fired. on culture, you So that conversation with our chairman was need other corpovery good for me to have.” rate mechanisms to keep expectations Post may not have set its identity in stone of management and just yet, but in talking to Gray, there are clear the marketplace. currents emerging: a wide open sense of Ms. Gray’s lawyers possibility, a general air of warmth and camaprovide support raderie, and a commitment to making the in real time from inside the meeting most of the opportunities at hand. “We’re so room, which makes new, and culture takes more than a few years putting rules on to develop,” she says. Given how the company the wall much less has grown in the short time since its rebirth, important to good one can only imagine the strength of the idengovernance.” tity that will emerge. But maybe that’s the key—forcing an identity can create the sense of living behind a false façade. Better to let it come naturally.

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The Viewpoint Adjuster Amica Mutual Insurance’s Robert Suglia influences laws and regulations that address the impacts on the insurance industry of climate change, the sharing economy, auto-safety technology, and more

The insurance industry changes slowly. In fact, some of the policy language used today is the same as it was a hundred years ago, according to Robert Suglia (Fig. 09), senior vice president and general counsel at Amica Mutual Insurance. Yet social, economic, environmental, and technological forces do prompt insurance carriers to alter venerable precepts. Climate change, the sharing economy, and new automobile safety features are all challenging time-tested assumptions today. Responsible for government affairs and legal matters for the Rhode Island-based auto, home, and life insurance company (through wholly owned subsidiary Amica Life), Suglia must help Amica make sense of these changes and advocate for its interests in statehouses and within

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regulatory agencies. Early in his career, before entering corporate legal practice, Suglia didn’t realize the significance of a government affairs role. That soon changed, and perhaps it has never been more evident than during the current decade. Consider how global climate change, widely believed to be fueling more powerful storms, presents certain challenges to the industry. For Amica, with strongholds in the New England states, Florida, Texas, and California, coastal zones make up a large chunk of its insured properties. These areas are vulnerable to storm damage, making them riskier to insure than inland areas. Insurance carriers have recently responded with deductibles on homeowners plans for hurricane damage.

Source photo: Mike Scott/Amica Insurance

BY PETER FABRIS


LEGAL V. BUSINESS

FIG. 09 ROBERT SUGLIA SVP, GC Amica Mutual Insurance Lincoln, RI

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predictive Proactive Businessminded law WHAT’S AHEAD? WE’RE READY TO FIND OUT WITH YOU. Our focus is on knowing what’s important to our clients now and next so we can foresee obstacles and opportunities, smooth their way, and create value for them. One Citizens Plaza | Providence, RI nixonpeabody.com | @Nixonpeabodyllp

We extend our congratulations to Robert Sugila, Sr. Vice President and General Counsel of Amica Mutual Insurance on your recognition by Profile.

Congratulations to Robert Suglia for his outstanding career as a top lawyer in the insurance industry. It is a pleasure working with you and your team!

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Several years ago, a bill in the Rhode Island legislature meant to restrict insurers from adding such deductibles challenged this strategy. A registered lobbyist in Rhode Island, Suglia and other industry advocates had to make a strong case at the statehouse for amending a bill that had consumer appeal—at least on the surface. Their aim was to preserve a market system that works well to address risks appropriately, Suglia points out. “If you have a law that is overly restrictive, it could cause companies not to write coverage in coastal areas, which would be a bad situation for everyone,” he says. Exercising the arts of negotiation and compromise, Suglia helped to get legislation passed that allowed insurers to implement deductibles within certain limits. Suglia’s responsibility for government affairs extends to the work of hammering out the regulatory fine print. “Once that bill passed, regulations had to be put in place that carried out that legislation,” he says. The content of notice that insurers would have to give policyholders about new hurricane deductibles had to be approved and enacted by state regulators. “The whole process was an example of legislators, regulators, and the insurance industry working well together to get an outcome that helped preserve the market,” Suglia says. A heavily regulated industry requires constant engagement with legislative staff and regulators—a reality that is certainly now clear to Suglia after twenty-five years as an insurance industry attorney. Suglia is directly involved with legislative matters in Amica’s home state and sometimes in neighboring states, but much of the company’s advocacy takes place in cooperation with industry trade groups. Insurance companies may be fierce competitors in the marketplace, but they band together in the government realm to promote shared regulatory interests. Suglia is a leader in shaping the industry’s approach to government affairs advocacy. He served as chair of the Legal and Government Affairs Committee for the Property Casualty Insurance of

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America Association (PCI) in 2012 and 2013, and he has played a prominent role in several other trade groups. Industry associations drive insurers’ responses to new issues, so Suglia and his cohorts in PCI have considerable influence. Recently, the rise of the sharing economy has raised new issues for politicians, regulators, and insurers. How should new business models like the ride-sharing companies Uber and Lyft be treated? For insurers like Amica that focus solely on the consumer market, how do you tailor auto policies for Uber or Lyft drivers that split the use of their vehicles between commercial and personal use? The way these challenges are addressed can influence the growth of shared economy businesses. “The industry has reacted very rapidly to transportation network companies,” Suglia says. Insurers want to make sure that the purely commercial use of the car is excluded from personal coverage, but the line between the two can be blurry. For example, Amica is developing new auto insurance policies that would cover a driver before the Uber or Lyft policy kicks in. “Our industry doesn’t take a position on how transportation network companies should be regulated,” Suglia says. “We want to make sure that there is coverage in place whether the transportation network companies are providing it or if we’re providing it to ensure that people are appropriately protected and to avoid disputes about who’s providing coverage. We also want to make sure that any legislation doesn’t force us to provide coverage if we decide not to provide it, but also provides us with flexibility to develop new products.” New technology to make cars safer is going to have a huge impact on the auto insurance industry, according to Suglia. Advancements such as antilock brakes, air bags, and collision warning and avoidance systems that alert drivers to danger and even automatically apply brakes to prevent accidents, are making motoring safer. Eventually, self-driving technology being pioneered by the likes of Google and Tesla could raise safety to unprecedented levels. “As you get safer and safer cars, there are going to be fewer accidents,” Suglia says. “There’s going to be a decline in liability and collision payments. In the next ten years, we may reach the peak in auto insurance losses that will lead to lower premiums. In the long term, there will be a major shift in the auto insurance industry. With autonomous cars, you might have the auto manufacturer covering the loss in the event of an accident.” Yet the end of the auto insurance industry isn’t imminent. “I think there will always be a need for personal auto insurance because there will always be individually driven cars—at least for as long as I can foresee,” Suglia says. “Though, in the long term, there is going to be less of a need for that coverage, and the industry is going to have to adjust.” As conditions keep changing, Suglia will continue to provide leadership in industry association committees to ensure that insurance companies’ interests are well-represented before decision makers. After all, it’s a function as vital to the industry as the nuts and bolts of underwriting.

DIEDRE GRAY SVP, GC and Administration, Corporate Secretary Post Holdings

A LEGAL EXPERT COMPARES NOTES

FIG. 09.1

“I loved reading about how the industry is changing and how this affects Mr. Suglia’s practice. I think it’s very ‘real world’ to see how self-driving cars and other technological advances—which we all see—can have an impact on the insurance industry. Lawyers who work for these companies have a great opportunity to think very actively about updating their boilerplate provisions in a thoughtful and encompassing way to best represent their clients. One question that perhaps needs a little more elaboration is what it means for an attorney to be a ‘registered lobbyist’—an interesting concept. When is that required, and how does it help Mr. Suglia better represent his company?”

R O B E R T S U G L IA RESPONDS “One of my responsibilities is to serve as Amica’s government affairs representative. I represent the company’s interests before the Rhode Island General Assembly, meeting with elected officials and testifying on bills before them. In Rhode Island, as in most states, persons appearing before the legislative body are required to register with the Secretary of State and report on the details of these types of activities.”

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Energy Adventurer The career of Cabot Oil & Gas’ top lawyer resembles a theme park thrill ride with all the highs and lows that the volatile business has to offer—and it’s not over yet

BY PETER FABRIS

You can learn a lot about the oil and gas industry by talking to someone like Kevin Cunningham (Fig. 10), vice president and general counsel of Cabot Oil & Gas. In fact, if you were writing a history of the industry in the late twentieth century and early twenty-first century, you could trace the important trends through Cunningham’s career path. The lawyer’s professional journey has included legal and management positions with eight companies and assignments in numerous countries on four continents. It has been an exhilarating, though at times, bumpy ride. “It’s a volatile business,” Cunningham says. “The highs are great, and the lows are really bloody.” Cunningham cut his teeth with one of the first companies to drill in unconventional geological formations. He also worked to open drilling opportunities in Russia to foreign investors, and he helped a small, regional company become a national powerhouse by using a new technology called fracking. Through it all, he

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FIG. 10 KEVIN CUNNINGHAM VP, GC Cabot Oil & Gas Houston, TX

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ROBERT SUGLIA SVP, GC Amica Mutual Insurance Co.

F I G . 10.1 A LEGAL EXPERT COMPARES NOTES “I always find it’s important for corporate attorneys to understand the business side of things. Kevin’s vast experience—from both operational and legal perspectives— would serve him well in his role as general counsel. That’s probably why he can operate with a small team at Cabot—he knows what’s important and what to focus on. Kevin certain l y made the mos t o f the opportun i ties present e d to him and h a s demonstrated his performa n c e in his vario u s roles. On a more pe r sonal note, I w a s pleased to s e e that his fir s t opportunity c a m e while workin g on a boat. A s a sailor, I al w a y s say that tim e spent on a b o a t is time well spent.”

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has experienced booms and busts amid wild price swings in oil and natural gas markets. Today, Cunningham couldn’t be happier with his role at Cabot, where he tackles a wide variety of issues from litigation to regulation to land rights. He sounds nostalgic at times as he recalls the twists and turns of his professional life. That’s not surprising, considering his accomplishments. Cunningham’s oil and gas career path began on a yacht in the Gulf of Mexico. Following an unsatisfying one-and-a-half-year stint as a criminal defense attorney— his first job after graduating from the University of Texas Law School—Cunningham signed on as a boat deckhand. This was a soul-searching move, as he pondered what to do next. The yacht’s owner was an oil and gas industry executive, and he was happy to find out that Cunningham was a lawyer. “At that time, in the early 1980s, the industry was hiring a lot of lawyers,” Cunningham says. “After he found out that I was a lawyer, he’d pick my brain from time to time. Later, he invited me to come to Houston and offered me a job.” The company was in the early stages of drilling in the Austin Chalk Field, a geological formation in Texas that was one of the first instances of development of an unconventional field requiring new drilling techniques. Cunningham’s responsibilities were to ensure that the title of the land where the company wanted to drill was free of claims or legal entanglements. He spent hours in the basements of small-town courthouses poring over documents, often facing tight deadlines. “Many times the rig was on the way to the site, and I needed to give a verbal go-ahead or put a hold if the title wasn’t clear,” Cunningham says. “This was a lot of fun. I liked the fact that I wasn’t stuck in an office building all day.” After a couple of years, the Austin Chalk Field closed, but Cunningham’s enthusiasm for the industry was fully fueled. His next step was staff lawyer for Amoco Production Company, a descendant of the old Standard Oil Company. A two-year stint there yielded a wealth of experience including litigation before regulatory agencies. With his experience broadened at Amoco, he wanted to join a smaller company to test his new skills and take on a wider breadth of responsibility. He found that opportunity with Pennzoil, a company run by a lawyer, Bill Liedtke, and future US president George H. W. Bush. “It sparked my interest that the company was started by a lawyer,” Cunningham says. “I thought, ‘Wow, maybe I could run an oil and gas company someday.” Aiming to learn as much as he could, Cunningham joined Pennzoil in 1984. Lawyers there were tightly integrated with business units, not just waiting in the wings as legal advisers, as was the norm in the industry. He began working in Appalachia, which was then “the backwater of the industry,” he says. In subsequent years, his assignments took him to the Rocky Mountains, California, Texas, and Louisiana to work on a wide variety of legal matters. After seven years at Pennzoil, Cunningham was promoted out of the legal department to general manager. “That was a real shock to me,” he recalls. “At age thirty-eight, I was given the handlebars to a full operating division.”

AUSTIN CHALK FIELD An upper Cretaceous geologic formation in the Gulf Coast region of the US, made of chalk and marl, was the site of a horizontal drilling boom in the 1980s.


Pierce & O’Neill, llp Complex Business and Energy Litigation Throughout the U.S.

PIERCE & O’NEILL, LLP is Honored to have been Named a Tier 1 Firm in Houston for Commercial Litigation and Oil & Gas Law by U.S. News – Best Lawyers®

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One of a kind leadership.

We are proud to acknowledge Kevin Cunningham as an outstanding industry leader and to share his business principles of quality, unity and integrity. We admire your profound knowledge of the energy industry and your executive excellence as Vice President and General Counsel of Cabot Oil & Gas.

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LEGAL V. BUSINESS

OFF THE CLOCK WITH KEVIN CUNNINGHAM When Kevin Cunningham needs to get away from the hustle and bustle of his demanding job as vice president and general counsel at Cabot Oil & Gas, he retreats to the west Texas ranch that he built by emulating pioneers of yore. Cunningham began the multiyear construction effort by clearing land at a wooded parcel in the sparsely populated hill country west of San Antonio, or “the real Texas,” as Cunningham calls it. Using the wood he cut on site, he built a rustic log cabin, inspired by the 1960 movie Swiss Family Robinson. For the first few years, the structure had no utilities, and Cunningham made do with kerosene lamps and an outhouse. Eventually, Cabot’s legal leader built a home with modern conveniences. An avid outdoorsman, Cunningham also raises and trains Labrador hunting dogs at the ranch. The hounds are trusted companions on pheasant and quail hunts.

In his new leadership position, Cunningham learned a lot about the business and what it was like to be a client to the legal department. A few years later, Pennzoil’s focus shifted to the international arena, and Cunningham had a new job: international business developer. Working with a crossfunctional team of geologists, engineers, and technical professionals, his responsibility was to find new areas to develop. “I was to meet with the right people, negotiate contracts to capture the opportunities, and then set up the local office,” he says. “It was a dream job. They essentially gave me a credit card and a map and said, ‘Take a look in China and see if you can get us deals.’” After two years in China, it was on to Venezuela, then Brazil, and Australia. Racking up the frequent flyer miles, Cunningham also ventured to the Middle East, Egypt, and Europe. By 2000, when Pennzoil was sold, it was time to reach for the big dream—starting his own company. Unfortunately, the startup formed with colleagues from Pennzoil failed after two tough years, primarily due to difficulties lining up financing. “I lost all my money and decided to go back to practicing law,” Cunningham recalls. He joined El Paso Corporation’s legal team, working on international and domestic acquisitions and divestitures. “El Paso had been kind of an Enron wannabe,” he says. After Enron imploded amid a financial scandal, El Paso managed to survive by holding on to some of its assets instead of selling them all off as Enron had done. Eyeing new opportunities, Cunningham’s next move was to Russia to work on deals for Urals Energy, a company founded by a college classmate and former Pennzoil colleague. While the work was engaging, after two years enduring Moscow winters, Cunningham wanted a change. A small company called Chesapeake Energy came calling. It was one of the first companies to explore unconventional development with long, horizontal well bores—a practice also known as fracking. “They told me, ‘If it works, it’s going to change the world,’” Cunningham recalls. “‘If it doesn’t, companies are going to lose a lot of money.’” The day he started work for Chesapeake ‘in Oklahoma City, he remembers that there were as many as ninety drill rigs in operation. “They said, ‘Take your pick. Which one do you want to work on?’” Chesapeake turned into a major success, as fracking did change the world of oil and gas development. Cunningham was a part of that, as the company’s stock price raised

from about $20 to more than $70 a share. Yet, it crashed to $13 in the depths of the 2008 recession. In 2009, Cunningham’s interest was piqued by an opportunity at Cabot. The company wanted to hire an assistant general counsel, and the company’s general counsel told him that he was looking to retire in a couple of years. “If you do well, maybe you’d be in line for my job,” he told Cunningham. Cabot was a venerable company, and it seemed working there would be a more relaxed practice, according to Cunningham. A week after he took the position, his view changed dramatically. The company was hit with one of the first fracking-oriented claims by a regulatory agency, and within the same week, an internal complaint about contractors’ drug use surfaced. Cabot had a small legal staff. “So, it was back to burning the candle at both ends,” he says. The hard work paid off when he was promoted to general counsel in late 2010. Today, Cabot continues to operate lean. Cunningham has just three others on his legal team, and the company, with a market capitalization of about $15 billion, has just 400 employees. That’s less than half the size of comparably sized energy companies, he says. He and his staff have a great variety of work. They rely on outside counsel and other specialists to handle a robust workload. This structure works because of Cunningham’s— and his other team members’—vast array of industry experience. Indeed, Cunningham has faced just about every tribulation the oil and gas business could throw at a business leader over the past thirty-five years. While there have been some major setbacks along the way, overall, he looks back fondly on his career and continues to relish the challenges.

Norton Rose Fulbright is a global law firm. We provide the world’s preeminent corporations and financial institutions with a full business law service. We have more than 3,800 lawyers and other legal staff based in over fifty cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East, and Central Asia. Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining, and commodities; transport; technology and innovation; and life sciences and healthcare. Wherever we are, we operate in accordance with our global business principles of quality, unity, and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

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Fill the Void Toys“R”Us’ first corporate lawyer­—David Schwartz—steps up and branches out to new roles when the company faces new challenges, expanding his ability to provide versatile strategic guidance

BY PETER FABRIS

One of David Schwartz’s (Fig. 11) guiding business principles is that when you see a problem, don’t complain about it. Step up and do something to fix it. This approach has proven to be a successful career strategy for the executive vice president, general counsel, and corporate secretary of retail giant Toys“R”Us. It has earned him some roles and responsibilities that go well beyond his roots as a corporate lawyer. Among those are global head of safety, chief of international licensing and franchising, and interim head of corporate communications and public relations. Schwartz is not hesitant to tackle new challenges when he sees a void that needs to be filled. Over the past decade and a half, his role has expanded steadily, from Toys“R”Us’ first corporate lawyer to varied management responsibilities, including his help with setting business strategy. Schwartz, who earned an MBA to go along with his law degree, brings legal and business know-how to

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every task. This blend of abilities has made him a valuable contributor across many functions of the business. An economics major as an undergraduate at Duke University, Schwartz says he was always drawn to business issues. Duke did not offer a business major, though, and unsure about a career path, Schwartz opted for law school. His first professional job was an attorney with a major New York City law firm, Anderson Kill & Olick, but his initial assignments were unfulfilling. “I quickly felt frustrated by the amount of time that went into tertiary points—things not related to the main topic,” Schwartz recalls. Instead of focusing on the main issue of a lawsuit, he was spending a lot of time on arcane aspects of case law. Rather than immersing himself in litigation, he gravitated toward business-oriented work such as mergers and acquisitions, private investment fund formation, securities offerings, and other types of commercial work.


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FIG. 11 DAVID SCHWARTZ EVP, GC, Corporate Secretary Toys“R”Us Wayne, NJ

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We are pleased to be part of the Toys“R”Us team and wish

PHTHALATES Phthalates are a group of chemicals used to make plastics more flexible and harder to break. They are often called plasticizers.

David Schwartz Executive Vice President, Corporate Secretary and General Counsel

and his team continued success.

www.hunton.com ©2016 Hunton & Williams LLP

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“I enjoyed those things to the point that I wanted to be more than an outside adviser,” he says. Schwartz was lucky enough to have a good job with a law firm that supported him through Columbia University’s business school. The degree beefed up his business knowledge and skills, and he says, gave him the confidence to branch out to do more business work within the firm. After a nine-year stint with the law firm, Schwartz was ready for a position that would allow him more hands-on work in managing the operations of a company. This goal led Schwartz to Toys“R”Us in 2001, with the company’s Internet business occupying about half of his time. Back then, the company’s online business operated almost like a separate company, with its own stock plan, leadership team, and culture. That arrangement didn’t seem to suit the company at that point as well as it did in the early years of e-commerce, and upper management decided to integrate its Internet business with the rest of the company. As the top legal manager, Schwartz played a key role in harmonizing the online unit’s stock plan and human resources rules with the parent company. In addition, Toys“R”Us’ e-commerce platform was being hosted and managed by Amazon, an arrangement that management didn’t want to continue. Toys“R”Us had arranged to have exclusive rights to supply some toys on Amazon’s site, and later it claimed that Amazon violated the partnership by letting others sell some toys on Amazon.com. Schwartz had to extricate Toys“R”Us from its agreement with Amazon, and the matter ended up in court. The toy retailer eventually prevailed and was awarded early termination, with Amazon reportedly paying $51 million to Toys“R”Us. In 2008, the toy industry faced a crisis after news reports highlighted the potentially harmful effects of substances called phthalates used in plastic toys and baby bottles. The US Congress acted swiftly to ban phthalates from children’s products, including ones that were already in the retail pipeline. Toys“R”Us, at the time, had $2 billion worth of inventory subject to the new regulations. “Nobody was really taking ownership of figuring out how to validate whether that inventory of toys could possibly comply,” Schwartz recalls. So, he stepped into the breach by helping to create a team dedicated to that task. The team worked with vendors, manufacturers, and even the retailer’s competitors to develop compliance protocols. This work led upper managers to ask Schwartz to take on the role of global product safety chief, a role he held, along with his other duties, for five years. In 2009, he helped prepare the company’s CEO to testify before a congressional committee investigating toy safety. Schwartz has also taken on work beyond the general counsel’s traditional purview of litigation and compliance. “The work that I’m most proud of, and that I enjoy the most right now, is overseeing our international licensing and franchising business,” he says. Toys“R”Us has six partners that run almost 300 stores in seventeen countries. “In the early days, I was involved as the lawyer helping to draft amendments to license agreements or resolve minor disputes with the partners,” Schwartz says. “Over time, I was able to fill a void in adding strategic guidance


LEGAL V. BUSINESS

to growing the relationships and entering new markets.” The leadership team was impressed enough to entrust him with the role of international franchising chief in 2010. Today, his international-franchise focus includes initiatives like codeveloping the annual business plan with a South Korean partner. “I’m working purely on the business side at this point,” he says. In some ways, moving between the legal and business spheres is easier than some might imagine. “The goals are the same whether you are a lawyer or a businessperson,” Schwartz says. It’s all about doing what’s best for the enterprise. In addition, many essential general counsel skills are transferable to business, including being responsive, communicating well, problem solving, and forming effective teams. Those skills have served him well since he assumed the mantle of interim head of corporate communications in 2012. Even though some of the core work of this function is outside of his wheelhouse, he says his management experience accumulated over the years is applicable to the challenge. As Schwartz’s business responsibilities have increased, he may be spending less time day to day on legal intricacies, but his experience and judgment as a lawyer are still put to the test. For example, in 2009, he helped negotiate a deal with the private equity firm that owned the FAO Schwarz brand. That retail company was in financial trouble, and the owner was considering taking the brand through bankruptcy. Toys“R”Us negotiated deals with vendors and landlords to keep the struggling brand in business. The result was Toys“R”Us acquiring the iconic brand, and the private equity firm coming out of the transaction in better shape than if it had taken FAO Schwarz through bankruptcy. Both sides were happy, according to Schwartz. Intellectual property issues provide further legal challenges. “In China, the government is trying to better protect trademarks, but things have gone a bit awry,” Schwartz says. “We cannot advertise that our private label products are exclusively sold in Toys“R”Us stores without providing proof,” he adds. This is despite having exclusivity contracts with Chinese manufacturers. Schwartz also applies his legal skills to a cause that company employees hold dear: the Toys“R”Us Children’s Fund, which has raised $115 million since its inception. His legal team supports efforts to form partnerships with charitable organizations for in-store fundraising, for example. This entails extensive certification and regulatory compliance. The next time Toys“R”Us has a challenge that requires someone to take ownership, it’s a good bet that Schwartz will have his hand up. That’s been his modus operandi for much of his career, and it has benefited him and the company. Indeed, such versatility and initiative may be the keys to business success—both personal and organizational.

FAO SCHWARZ Founded in 1852, FAO Schwarz was known for its iconic Fifth Avenue flagship store in New York. The store, which featured life-size stuffed animals and a giant piano, closed in 2015.

Blank Rome LLP congratulates

David Schwartz GENERAL COUNSEL AND CORPORATE SECRETARY

on his disƟnguished leadership and outstanding career with Toys ‘R’ Us

Boca Raton CincinnaƟ Fort Lauderdale Houston Los Angeles New York Philadelphia

Blank Rome celebrates David Schwartz for his successful career as general counsel and corporate secretary at Toys “R” Us. We feel honored to collaborate with David and his team on some of their most important legal and business matters. Through our longstanding relationships with our clients, we find successful solutions.

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PiƩsburgh Princeton San Francisco Shanghai Tampa Washington Wilmington

www.blankrome.com


L EGAL V. BUSINESS

F I G . 12 BRIAN BROOKS EVP, GC, Corporate Secretary Fannie Mae Washington, DC

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LEGAL V. BUSINESS

Humble Beginnings Beget Customer Values Brian Brooks’ first job waiting tables gave him the structure and values he needed to help others at Fannie Mae

BY URMILA RAMAKRISHNAN

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Brian Brooks (Fig. 12) grew up in the small steel-mill town of Pueblo, Colorado. His father died when he was fourteen years old, and he had to find a way to help support his family. He needed a job, and Brooks found one waiting tables for $2.01 an hour (plus tips) at the only white-tablecloth restaurant in town. The restaurant, La Renaissance, and its owner Jim Fredregill, provided Brooks with a customer-service base and business values that he would carry with him throughout his career. Fredregill was a legend in that town, according to Brooks. One busy Friday night when Brooks was seventeen, there wasn’t a single empty seat in the house when a couple came in with a reservation. This was before the Internet and before booking services like Open Table—all reservations were written in a book, but La Renaissance didn’t have the couple’s reservation listed. Instead of asking them to leave, Fredregill found a garbage can from the back of the house, and cleaned it. He brought out a round piece of wood. He put the round piece of wood on the garbage can, covered it with a white table cloth, and he tied some twine around that held the table cloth to the garbage can. He set it in the most elegant possible way, seated the couple, and they had a nice evening. That memory sticks with Brooks to this day. He doesn’t know of any restaurant that would do that today. “I think if you showed up in some fancy restaurant in New York, and they lost your reservation, I think you’d be out on the street,” Brooks says. “That’s not what happened at our restaurant.” Though Fredregill died two years ago, he taught Brooks what it meant to respect people who have different backgrounds and aspirations. He taught Brooks what it meant to be part of a team. Brooks brings that experience with him more than three decades later as the executive vice president, general counsel, and corporate secretary at the US Federal National Mortgage Association known as Fannie Mae. Brooks graduated from the University of Chicago Law School in 1994, and he moved to Washington, DC, to work at the global law firm O’Melveny & Meyers. He handled various areas of the practice, including banking. After three years, Brooks decided to do something unconventional—he became a judicial clerk for Danny J. Boggs, which is something most graduates do right out of law school. After his clerkship, Brooks returned to O’Melveny & Meyers, made partner, and eventually ended up as the managing partner of the DC office and the head of the first financial services practice. Brooks had been at O’Melveny & Meyers about seventeen years when the financial crisis hit the United States. “The financial crisis had two types of clients you might have,” he says. “It had clients who were going bankrupt and then it had clients who were finding opportunity in the crisis.”

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“Trusting your gut and taking risks can be an important and satisfying part of your career. . . . I took a big risk, and it changed who I am.” BRIAN BROOKS

The ones who were looking to make money off of the crisis were buying distressed assets, failed banks, and attempting to utilize turnaround strategies. It was the time of the robo-signing scandal. Brooks had a number of clients who were in the middle of the worst financial crisis of anybody’s lifetime. People were getting fired, sued, and prosecuted. They need a strategy to move forward, and Brooks was the lawyer they called to get the train back on the tracks. Brooks and his team developed a legal mechanism to restart foreclosures based on a reverification process. The robo-signing scandal used false affidavits in thousands of foreclosure cases, and Brooks saw the catch-22. “You can’t throw people out of their houses on faulty documentation, but we also can’t shut down the credit process, which would happen if we didn’t have a normal foreclosure and loss mitigation process,” Brooks says. His team found a way to reverify the affidavits, which allowed them to find a way to start moving forward. Slowly but surely, Brook’s clients got through it and survived the crisis. O’Melveny & Meyers clients ended up buying Indymac Bank out of the US Federal Deposit Insurance Corporation (FDIC) receivership. At the time, it was the second-largest bank failure in US history. Indymac eventually became OneWest Bank and moved to California, and it gradually shifted more toward broader mortgage servicing. All of these banks had big needs, according to Brooks, who adds that OneWest invited him to join the company as chairman and play a leadership role in the mortgage side of the business. He moved across the United States with his wife and four school-age children to make the career change. He gave up a thriving and promising law practice for the chance to make it in the banking industry.


Venable salutes

BRIAN P. BROOKS

EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL, AND CORPORATE SECRETARY OF FANNIE MAE

for his leadership and accomplishments. We are pleased to join in honoring the great work of our client and friend, and we thank him for the opportunity to serve as outside counsel to Fannie Mae. With more than 600 attorneys in offices across the country practicing in all areas of real estate, finance, corporate and business law, complex litigation, intellectual property, and regulatory and government affairs, we serve clients throughout the United States and around the world.

CALIFORNIA | DELAWARE | MARYLAND | NEW YORK | VIRGINIA | WASHINGTON, DC


LEGAL V. BUSINESS

AlixPartners congratulates Brian Brooks for his successful leadership and professional accomplishments at Fannie Mae.

It was a high-risk thing to do, but it was pivotal for him in many ways. “It made me realize that trusting your gut and taking risks can be an important and satisfying part of your career,” Brooks says. “There was safety where I was. I was practicing law with my friends and mentors. I could have done that until I retired. I took a big risk, and it changed who I am.” In the late fall of 2014, Brooks made another career move to his current position as the executive vice president, general counsel, and corporate secretary at Fannie Mae. A former client at Fannie Mae, who had been Brooks’s client at O’Melveny & Meyers, was looking for a new general counsel. Since Fannie Mae had been a former client of his, Brooks applied and later got the job. “This company is a standard-setter,” says Brooks, regarding Fannie Mae. “If we get it right, we can change lives here. If we get it wrong, bad things can happen, so I wake up every morning with a real sense that what I do today really, really matters.” Yet, Brooks says his career wouldn’t have been possible without that first job at La Renaissance that paved the way for his role at Fannie Mae—a position he uses to make a difference in people’s lives. “I’ve had a lot of jobs that I’ve really loved and enjoyed, but I’ve never had one where I have such an enormous amount of responsibility as I have here,” Brooks says. “If what you’re doing matters, that’s going to get you out of bed in the morning and get you to do your best every day.”

AlixParters congratulates Brian Brooks for his successful leadership and professional accomplishments at Fannie Mae. It is a privilege to serve Fannie Mae’s litigation team, and we are proud of our relationship with Brian and his colleagues. Our experienced professionals work with law firms and corporate clients, providing a full range of litigation and investigation support services, including discovery, data analytics, information life-cycle governance, cybersecurity, forensic accounting, damages, valuation, and related expert witness services.

AlixPartners is a global business advisory firm of results-oriented professionals who specialize in creating value and restoring performance at every stage of the business life cycle.

Enterprise Improvement • Financial Advisory Services • Information Management Services Leadership & Organizational Effectiveness • Turnaround & Restructuring

www.alixpartners.com

With more than 600 attorneys in offices across the country practicing in all areas of real estate, finance, corporate and business law, complex litigation, intellectual property, regulatory and government affairs, Venable is one of America’s top 100 law firms. We serve clients throughout the United States and around the world. Our clients rely on our broad capabilities and experience across an array of legal disciplines and industries. The businesses we represent cover the full spectrum of industries and organization types, both for-profit and nonprofit, and range from entrepreneurs and emerging growth companies to large national and international organizations.

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Preparing for Growth

FIG. 13 TIM ROBB EVP, GC NFP New York, NY

Tim Robb knows why going private is helping NFP become one of the top insurance brokers in the United States

BY MELISSA SILVERBERG

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FIELD ARTIL L E R Y OFFICER Field artillery officers lead the branch in battle, which neutralizes the enemy by fire. They must be experts in the tactics, techniques, and procedures for using fire support systems.

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Structure has always been a big part of Tim Robb’s life. From his time in the US Army after college to organizing his schedule while working full-time and going to law school at night, Robb (Fig. 13) is no stranger to the importance of efficiency. That’s why he was the right person to help NFP, a top ten insurance broker in the United States, transform from a public company to a private one in 2013. As executive vice president and general counsel, Robb oversaw the transition of the New York-based company that handles insurance, brokerage, and financial services for its diverse clients. After the Reserve Officers’ Training Corps in college, Robb signed up for the US Army and was training to be a field artillery officer during the first Gulf War. “The Army for me was a great experience. It made me much more organized than I was,” Robb says. “It’s cliché to say it gave me discipline, but it really did.” He continued to serve in the US Army Reserve on weekends and started working as an assistant managing clerk at a major New York law firm—all while earning his law degree from Fordham University at night. “It was really a challenge,” Robb says. “It was probably the busiest time of my life, but in certain ways it was awesome. I certainly learned to be efficient.” Robb joined NFP ten years ago after a career in private practice at Simpson Thacher & Bartlett. He got a call from a recruiter and took the interview on a whim. The interview was scheduled with the then-general counsel—who is now the company’s CEO—for an hour. However, the interview was extended on the spot to the rest of the executive management team, and Robb ended up leaving the office more than six hours after he got there. “I took a leap of faith and jumped for it, and I’m so glad I did,” Robb says. NFP is constantly changing, moving, and growing—something Robb has been on the forefront of in his leadership position. One of the biggest changes was the decision to take the company private. The move from public to private was one way to accelerate NFP’s growth, according to Robb. “We had some pretty big changes we wanted to make,” he says. “This way, you only have to convince one shareholder rather than many.” In helping make the shift, Robb had to review the requirements of the company as a publicly held entity and decide if it made sense for a private entity. One aspect of NFP that Robb decided to keep was its robust compliance infrastructure, which includes a compliance and ethics committee that meets quarterly with all of the senior executives. “It’s something that you’re not required to do as a private company, but why wouldn’t we keep it in place?” Robb says. “It’s a great discipline to have and it reflects the company’s commitment to compliance from top to bottom.”

“You can’t sit still. You really have to put yourself out there and stay in tune with what’s going on. Communication has been key to our success.” TIM ROBB

He also built an enterprise risk management program from the corporate level to the individual field offices. “The enterprise risk management program has been very eye-opening because it helps us focus on the risks in our company, and how we can mitigate them,” Robb says. “You can’t solve for every risk, but just knowing the program is in place, and actively considering each, is a valuable exercise.” NFP was built on acquisitions and has acquired hundreds of subsidiaries over the years. Until a few years ago, each of those companies would operate independently under a decentralized NFP structure. In the past three years, the company has changed its business model to a more traditional acquisition structure. New acquisitions are now required to integrate into NFP’s operations and identity, Robb says. Acquisitions are now more strategic and are generally either folded into existing regional operations or purchased for the purpose of building out a specific region. “It’s given us an opportunity to integrate offices in ways many of our competitors aren’t doing,” Robb says. “We’re going to be a very different company at the end of this process.”


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Greenberg Traurig is honored and pleased to have the opportunity to congratulate

Timothy Robb Executive Vice President and General Counsel National Financial Partners Corporation For his recognition in Profile Magazine, years of hard work, and his role in positioning NFP Corporation as the largest private insurance broker in the country. To many more years of success!

ALBANY | AMSTERDAM | ATLANTA | AUSTIN | BERLIN¬| BOCA RATON | BOSTON | CHICAGO | DALLAS | DELAWARE | DENVER FORT LAUDERDALE | HOUSTON | LAS VEGAS | LONDON * | LOS ANGELES | MEXICO CITY + | MIAMI | NEW JERSEY | NEW YORK NORTHERN VIRGINIA | ORANGE COUNTY | ORLANDO | PHILADELPHIA | PHOENIX | SACRAMENTO | SAN FRANCISCO | SEOUL | SHANGHAI SILICON VALLEY | TEL AVIV^| TALLAHASSEE | TAMPA | TOKYO¤| WARSAW~ | WASHINGTON, D.C. | WESTCHESTER COUNTY | WEST PALM BEACH ∞

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The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2015 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Contact: Jonathan M. Forster in Northern Virginia at 703.749.1300. °These numbers are subject to fluctuation. ¬Greenberg Traurig’s Berlin office is operated by Greenberg Traurig Germany, an affiliate of Greenberg Traurig, P.A. and Greenberg Traurig, LLP. *Operates

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LEGAL V. BUSINESS

圀攀 搀漀 琀栀椀渀最猀  搀椀û攀爀攀渀琀氀礀⸀ 䈀礀 戀愀氀愀渀挀椀渀最 爀攀氀愀琀椀漀渀猀栀椀瀀猀 愀渀搀 攀砀瀀攀爀琀椀猀攀Ⰰ 眀攀ᤠ瘀攀  最爀漀眀渀 椀渀琀漀 愀 眀漀爀氀搀ⴀ挀氀愀猀猀 椀渀猀甀爀愀渀挀攀 戀爀漀欀攀爀 愀渀搀  挀漀渀猀甀氀琀愀渀琀 搀攀搀椀挀愀琀攀搀 琀漀  渀搀椀渀最 猀甀瀀攀爀椀漀爀  猀漀氀甀琀椀漀渀猀 琀漀 洀攀攀琀 礀漀甀爀 挀漀洀瀀氀攀砀 渀攀攀搀猀⸀

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While integration of the company’s operations and brand is important to building the company and growing its reach, Robb has to look at each acquisition from a risk perspective. “The NFP name is out there now, and our national reputation and potential legal liability is on the line. We want to make sure that we have the right controls, policies, and procedures in place to help mitigate any risk,” Robb explains. “The best way to do that is to work hand in hand with our colleagues outside of the law department. So it’s also a great opportunity for my team to get really involved in the business side.” Big goals—such as becoming one of the largest insurance brokers in the world within a decade—were also behind the shift. “At NFP’s size, it’s very hard to continue to organically grow without integration,” Robb says. “You’re not creating as much value when you’re just disparate parts potentially competing against each other with each office marching to the beat of its own drum.” In the future, everyone at NFP will be under a common brand. “It’s pretty critical,” Robb says of the branding process. “It’s the face of the company—it’s a tent pole for everyone to rally underneath a common tent.” With so much change happening all the time at NFP, Robb and his team of twenty-four in the legal, compliance, and risk management departments are always looking to not just keep up, but get out in front of the changes. “I’ve learned that you can’t sit still. You really have to put yourself out there and stay in tune with what’s going on,” Robb says. “Communication has been key to our success, as is having a tight management team.” Even when he thinks he has a handle on everything, Robb says he is always prepared for the unexpected. “I’ve learned I need to be ready for something new to land on my desk every day. That’s part of what makes my job exciting,” he says. “You have to be nimble. In a dynamic company, you have to build a great foundation of compliance, policies, and people. But you also have to be willing at all times. Otherwise, the organization will change around you, and you’ll become obsolete.” In the future, NFP will continue to work toward its growth goals, particularly in expanding the property and casualty side of its business. The possibilities are endless, according to Robb. “Insurance is something we’ll always need,” he says. “It’s not going anywhere.”

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Legacy Builder Kiewit’s infrastructure group general counsel David Hecker relishes the opportunity to create a lasting heritage—both in business and in the community By P E T E R FA B R I S

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David Hecker

Alvaro Poveda/OnPxl LLC

Group General Counsel, Kiewit Infrastructure Group Kiewit Corporation Omaha, NE

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David Hecker. A True Professional.

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C O N S T R U C T I O N I N D U S T R Y NEW YORK, NY LOS ANGELES, CA SAN FRANCISCO BAY AREA, CA WASHINGTON, D.C. MIAMI, FL CHICAGO, IL RIVER EDGE, NJ AUSTIN, TX DALLAS, TX HOUSTON, TX DEVON, PA

David Hecker was an experienced trial lawyer well versed in the construction industry before he joined Kiewit Corporation in 2003. Shortly into his tenure as infrastructure group general counsel for the Omaha-based construction management giant, however, he realized that he and his legal team contribute in many more ways to the company’s success than through litigation. In fact, lawsuits are but a minuscule part of the story. Kiewit’s lawyers are an integral part of the business from project proposals through the receipt of the last payment for a completed job. “We cover projects from cradle to grave,” Hecker says. “We even work on proposals that don’t result in contracts.” Legal staff collaborate regularly with other departments—a much different premise than working for a law firm where lawyers are focused only on specific cases. “I don’t feel like a hired gun here,” Hecker says. “I’m part of a team.” Over the past dozen years, Kiewit has greatly increased its private sector work. The more than 130 year-old company first made its reputation in the public sector, particularly on large infrastructure projects. That strategy has continued to evolve the last two decades, and today about half of the company’s revenue comes from the private sector. The company has grown rapidly as a result, from about $3.5 billion in revenue in 2003 to approximately $10 billion now. To support that impressive growth, the legal department has increased in size and scope, Hecker says. “When I started, there was just one lawyer dedicated to contract work; now there are seven,” he adds. The complexity of contract terms when dealing with private sector clients is greater than with the public sector, where winning contracts often comes down to having the lowest bid price. Private sector clients, on the other hand, make decisions based on several issues in addition to cost. For them, the length of the construction schedule, financial risk allocation, and prior working relationships with the general contractor or construction management firm could be as important—or more so—as the contract price. Those factors require the attention of attorneys to ensure that Kiewit makes its desired profit on each project. That work begins with Hecker and fellow attorneys poring over the terms of request for proposals (RFPs) from prospects and Kiewit’s proposals. After a client awards Kiewit a new project, its attorneys work on the contract language with a keen eye on the risks that the company will assume over the course of the engagement. These contracts can run longer than a hundred pages. Various clauses delineate who is responsible for aspects of the project, penalties and incentives regarding deadlines, and who has to absorb costs if certain things

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go wrong. For example, if unforeseen site conditions—say, a large chunk of buried rock ledge—become apparent after construction begins resulting in a significant scheduling delay, who must absorb cost overruns? In construction, the adage, “time is money,” rings truer than in most other industries. For instance, the sooner a retailer gets a new store built and opened, the sooner it will start bringing in new sales. There’s a strong imperative for construction schedules to be accelerated, as a result. “There’s a lot of pressure for many clients to get started on construction with less than full information,” Hecker says. Often, construction begins before the design documents are completed, leading to instances where work has to be modified on the fly or redone. This adds time and additional cost. Kiewit attorneys aim to protect the company’s best interests in managing these risks, contract by contract. “Sometimes risk is allocated to the contractors, sometimes to the client, and sometimes it is split between the two,” Hecker says. Conflicts can arise after projects are underway for any number of reasons, though, despite the best efforts to assign risk and responsibility in the contract. Large construction projects, after all, are highly complex beasts. Less than strong, open communication between suppliers, contractors, subcontractors, designers, and owners sometimes turns minor gaffes into major headaches. Hecker’s team seeks to identify potentially contentious issues early by following projects as they progress, even visiting job sites to get to the bottom of things. “We’re able to be out there finding solutions to issues before they become problems,” Hecker says. This makes legal personnel part of the project team, a role that Hecker appreciates, and that he hadn’t experienced previously in his career. Sometimes disputes with clients can’t be settled by negotiation, and matters often go to mediation or arbitration. Neither side ever wants the issue to escalate to the courts, Hecker says. Kiewit wants to maintain good working relationships with all clients, knowing that they will likely seek return business in the future. In the rare cases

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Applauding David Hecker, Group General Counsel, of Kiewit Infrastructure Group for Continued Recognition of Outstanding Excellence in Construction Law

Moye, O’Brien, Pickert & Dillon, LLP Solving Problems in the Construction Industry for over 25 Years Attorneys at Law 800 South Orlando Avenue | Maitland, Florida 32751 Telephone: (407) 622-5250 | www.moopd.com


Kilpatrick Townsend applauds David Hecker for his leadership, vision, hard work, and integrity that has helped make Kiewit Corporation one of North America’s largest and most respected construction, engineering, and mining organizations. We congratulate David on all of his success, and look forward to continuing our close relationship for many more years to come.

Setting the Standard

ATLANTA AUGUSTA CHARLOTTE DALLAS DENVER LOS ANGELES NEW YORK RALEIGH SAN DIEGO SAN FRANCISCO SEATTLE SHANGHAI SILICON VALLEY STOCKHOLM TOKYO WALNUT CREEK WASHINGTON D.C. WINSTON-SALEM

www.kilpatricktownsend.com © 2016 Kilpatrick Townsend & Stockton LLP


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OFF THE CLOCK WITH DAVID HECKER David Hecker didn’t grow up as an fan of opera, but he has grown to love it. In recent years, Hecker has served on the board of directors of Opera Omaha and currently acts as its secretary. Opera Omaha is the only professional opera company in Nebraska, founded in 1958 as a volunteer association. In 1970, after immense support from the community, it became a “fully professional opera company.” Currently Opera Omaha brings three exceptionally high-quality operas to Omaha each year, according to Hecker.

Andrei Shumskiy

Opera Omaha is also highly regarded in the region for its extensive education program—programming includes free events to inform audiences about opera story lines and vocal master classes.

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when mediation or arbitration fails to yield a resolution, the issue may end up in court. At any given time, Hecker says, his team has only about a half dozen cases in litigation—a small number given the volume of Kiewit’s business. In a sense, an issue that prompts a suit is a failure. “Very often, it indicates that we missed opportunities to resolve the matter much earlier,” Hecker says. Some public sector entities are prohibited from using mediation or arbitration, though, so the courtroom may be the most viable option in those instances. “Litigation is expensive and often produces an unsatisfactory resolution,” he says. Underlying these high-stakes decisions are Kiewit’s values, culture, and history. An employee-owned, privately held company, leaders have historically focused on longterm success more than quarterly profits. “You have a personal investment as a stockholder,” Hecker says. “It’s a different sense than you would have as a hired gun in a private law practice. There’s a sense here of building a legacy.” That ethos extends from Kiewit employees to their communities—particularly at the corporate headquarters in Omaha, Nebraska. Peter Kiewit, former president and son of the

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Applause, Applause. Distinction is always confined to the few. Jones Day congratulates David Hecker for his outstanding accomplishments, his distinguished service, and the leadership he has provided to Kiewit as Group General Counsel for its Infrastructure Group.

2400 Lawyers. 42 Locations. 5 Continents. www.jonesday.com 171


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Congratulates

DAVID HECKER Group General Counsel – Infrastructure at Kiewit Corp. for his exceptional leadership and community service.

Keeping the legal side of your industry in perspective while you soar to new heights

Kiewit Corp. is one of the preeminent firms in the construction industry. David Hecker’s leadership and community service represent the best of the profession. Alston & Bird is proud to partner with Kiewit Corp. and David Hecker and wishes them every success.

Alston & Bird has built a reputation as one of the country’s best law firms, appearing on BTI Consulting Group’s “Client Service 30” for 10 years and on FORTUNE magazine’s “100 Best Companies to Work For” list for 16 consecutive years, an unprecedented accomplishment among law firms in the United States. The firm has offices in Atlanta, Beijing, Brussels, Charlotte, Dallas, Los Angeles, New York, Research Triangle, Silicon Valley and Washington, D.C.

www.watttieder.com

company’s founder, set the tone for charitable giving by bequeathing much of his fortune to a charitable trust. The company encourages employees to volunteer with community groups, and often provides financial support for their efforts. As with Kiewit’s many prominent infrastructure projects, the company that Forbes magazine once called “the ultimate meritocracy,” is built to be long-lasting. Hecker and his infrastructure team, along with attorneys in other groups and their colleagues in other departments, are committed to securing a bright future for the company and their community. After 130 years, Kiewit’s employee-owned, privately held formula continues to stand the test of time.

Kilpatrick Townsend & Stockton LLP congratulates Kiewit’s David Hecker for his many professional achievements and his contributions to Kiewit’s culture of excellence and collaboration. With 650 attorneys in eighteen offices worldwide, Kilpatrick Townsend serves clients throughout the U.S. and abroad, including in construction, infrastructure, and insurance recovery matters. At the crux of our success lies our commitment to our clients. We take the time to understand our clients’ businesses and align our approach with our clients’ definition of success. Long known for leadership and innovation in construction law, Peckar & Abramson’s Results FirstSM approach extends to a broad array of legal services—all delivered with a commitment to efficiency, value, and client service since 1978. Watt, Tieder, Hoffar & Fitzgerald, LLP congratulates David A. Hecker, Kiewit Infrastructure Group General Counsel, on receiving the well-deserved recognition of being featured in Profile magazine. Under Dave’s knowledgeable and experienced management, our firm is proud to have worked closely with Kiewit Infrastructure entities in protecting and preserving their contract rights. Dave’s leadership in these efforts has been invaluable.

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vladguk/shutterstock

John Lunny helped reinvigorate FairPoint Communications by unifying the technology department and creating a best-of-breed organization

The Benefits of Blended Cultures By J E F F S I LV E R

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©2016 Accenture. All rights reserved.

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High performance deserves high praise.

Accenture applauds John Lunny, CTO of FairPoint Communications, for his inspiring leadership and proven ability to deliver innovation and high performance.

John Lunny, chief technology officer at FairPoint Communications, has spent his career in technology and communications—first with AT&T, then with Level 3 Communications and Comcast. This decades-long view has provided not only technical expertise, but also a comprehensive view of the telecommunications industry’s evolution. Lunny’s knowledge has been put to good use helping to transform the products, services, and overall business model at FairPoint. The company successfully emerged from Chapter 11 bankruptcy in 2011, but also faced challenges resulting from a mix of internal cultures after its 2008 purchase of Verizon Communications’ landline operations in New England. As Lunny describes it, FairPoint’s staff fell into three distinct camps: long-term Verizon employees accustomed to a heavily regulated and compartmentalized environment with reliable revenue streams from local telephone services; legacy FairPoint staff experienced in small, rural, heavily subsidized local exchange companies; and professionals from cable companies and competitive local exchange carriers, like himself, who had spent years competing against Verizon. Each group had its own specific, valuable skill sets, according to Lunny. “That gave us in-house expertise on critical business drivers like regulatory compliance and entrepreneurial approaches to advanced technologies and optimizing the customer experience,” he says. “But we weren’t initially effective at leveraging all those strengths to face ongoing business challenges.” Those challenges included FairPoint lagging behind consumers’ shift away from traditional telephone services to alternative digital and mobile technologies. Lunny was also keenly aware that steps were needed to win back business customers that had aligned themselves with competitors like Comcast and Level 3. Over a three-year period, FairPoint adapted to the new marketplace realities through the organic evolution of leadership and strategic personnel changes. However, the company needed a more direct initiative

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“Technology professionals tend to see things in black and white, but being right isn’t always relevant if you don’t handle it correctly. The best idea will always win out over time, but you get there much faster if you handle it the right way.” J O H N LU N NY


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®

to leverage its existing network and technology orgaChief Technology Officer nizations and to provide more focus FairPoint on customers and Communications the next-generation Portland, ME products that they required. Until 2013, technologists at FairPoint had consisted of two separate groups: one for network architecture and engineering and another for IT. Recognizing the extensive expertise these two groups presented in customerfacing networks, products and services, and in enterprise-facing application and server infrastructure, Lunny set out to create an integrated and unified technology organization. At first, the new department had its own operational challenges. For example, the original IT team members had little experience in a customer-facing environment, and those with network expertise had to adapt to a server-based, and application-oriented focus. “Successfully blending these capabilities required coaching, training, and confidence building, which we still do on an ongoing basis,” Lunny says. “But now I can look at someone in the organization as part of a team that helps lead our technology and business innovations, not as someone who originally came from a particular group or another company.” The team that handles all of FairPoint’s product development, has, in fact, been at the forefront in accomplishing a number of company milestones. It helped develop the largest fiber and Ethernet-based network in northern New England, which serves 1.3 million subscribers. That network has served as the foundation for rolling out extensive new products and services in response to market demand. These include a full suite of Carrier Ethernet services, SIP for business communication, hosted IP PBX and cloud automatic call distribution, Wi-Fi and managed router services, VoIP, infrastructure-as-a-service, and fiber 1 gigabyte Internet to the home. John Lunny

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“Reconfiguring the technology organization has transformed FairPoint from a traditional phone company model with a fixed set of offerings to a vibrant, entrepreneurial, responsive service provider that’s giving customers the products and services that they need and expect,” Lunny says. The chief technology officer points out that there have been two other benefits of the departmental reorganization. First, it has developed enhanced products and services using the company’s existing workforce in a cost-effective way. Second, customers are now able to get technical support from individuals who are truly experts in their field. Lunny’s industry experience and expertise were critical to his fully understanding FairPoint’s business challenges and the existing resources that were available internally to address them. He believes that this has also been instrumental in creating a more cohesive team. “I’m not a traditional executive since I’ve done many of the jobs my team handles. I can meet with team members and talk to them about what they’re trying to accomplish,” Lunny says. “It’s a big part of developing a creative and productive working environment, which is so important in a dynamic, customer-facing organization like ours.” Lunny also stresses the importance of being flexible and open-minded. “Technology professionals tend to see things in black and white, but being right isn’t always relevant if you don’t handle it correctly,” Lunny says. “The best idea will always win out over time, but you get there much faster if you handle it the right way.”

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology, and operations. Combining unmatched experience and specialized skills across more than forty industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for stakeholders.

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“MPX develops, strengthens, and manages the operational processes that get the right information and materials to the right people, accurately and on time. We handle the details so our clients can focus on what they do best.”

Ryan Jackson, CEO www.mpxonline.com


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Interpreters of Strategy Empower People for Success Activating a highly ambitious workforce at H&R Block is how Aileen Wilkins energizes a more agile culture at one of the world’s largest tax services providers, where human resources raises the bar for everyone

When Aileen Wilkins moved into her new role at H&R Block about four years ago, she was given an opportunity to select her title for her position as the head of human resources for the international tax preparation company. She decided on chief people officer. “It is all about human beings at the end of the day,” Wilkins says. “It was a more authentic way to articulate what really happens. Human beings power organizations. People bring their whole selves to work, and it is our job to fully engage them in order to achieve the greatest degree of organizational success.” Wilkins grew up in a large family and likes to say she gained her first human resources experience while navigating relationships with her siblings and other relatives. That’s why this career seemed like a perfect fit for her while majoring in business, and it is where she has spent the last twenty-five years of her career, including nine years at H&R Block.

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With more than 10,000 retail tax offices in the United States and another 1,700 abroad, filing more than 24 million tax returns each year, there are a lot of people for Wilkins and her HR team to help navigate their careers. To keep everything in line, the company—under CEO Bill Cobb, who took over in 2011—has been reinforcing its energies, company culture, and values, which can be summed up in the phrase “We do the right thing.” Wilkins says that the core value of integrity has been enduring, but the bigger challenge has been a call to action for how H&R Block delivers services and a shift to a more high-ambition culture versus status quo. “Whatever your results were last year, beat them. Whatever the competitor is doing, Aileen Wilkins do better,” Wilkins Chief People says. “It’s setting Officer ambitious goals H&R Block to begin with and then meeting those Kansas City, MO commitments.”

Nick Vedros/Vedros and Associates

By M E L I S S A S I LV E R B E R G


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Rewards and recognition have been one way to help get the staff on board with the changes. During a quarterly town hall meeting, Cobb hands out CEO awards for both good behaviors and results to hold up as a model for the rest of the company. Wilkins has also helped the company get rid of processes that were slowing the company down on the path to success. For example, the performance management system that traditionally assigned a numerical score to employees has been eliminated. “We felt that the ratings were actually suppressing the high performance we had envisioned for the organization,” Wilkins explains. “We’ve gone to a more agile coaching model so managers and employees can have more productive conversations about what associates need to work on.” For a company like H&R Block, with so many seasonal employees having face-toface interactions with the clients, Wilkins says it is even more important that cultural shifts trickle down to every employee—a job she says is never really complete. “It’s very difficult to change culture,” Wilkins admits. “Where I think it’s easy to fail is to think you’re done. Your commitment to change really needs to be ongoing.” So how does Wilkins get a message that resonates in the corporate office to matter to every office in the company? Persistence. “The key to success here is tenacity and continual vigilance,” she says. “You communicate it once; you communicate it seven times; you communicate it twenty times. Employees need to understand their roles and how they can behave in ways that move the company in the right direction.” Wilkins and her team of seventy in the human resources department are running a number of pilot programs in addition to the core initiatives to find out how they can best increase business results, including transformation efforts designed to better motivate the workforce. The team atmosphere present throughout H&R Block is something Wilkins says she loves about the company and that is reflected in her own leadership style. “I believe good ideas come from many places,” she says. Now, cultural fit is a top priority when Wilkins is looking to fill a position. “Alignment with the core values of the company is non-negotiable,” she says. Onboarding at H&R Block, or the thirty-day period after being hired, is a crucial time, according to Wilkins. Human resources plays a key role in selection and training of all associates, especially leaders. However, Wilkins not only sees her job as important when hiring employees or during times of cultural shift, but also throughout each team member’s career. “HR is a career navigator for our employees,” she says. “Good

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“It is all about human beings at the end of the day. . . . Human beings power organizations. People bring their whole selves to work, and it is our job to fully engage them in order to achieve the greatest degree of organizational success.”

MERCER IS A G LOBAL T E AM OF OVER 20,0 0 0 INDIVIDUALS W H O D E D I C AT E THEIR SKILLS AND KNOWLEDGE TO ENHANCING T H E H E A LT H , W E A LT H A N D CAREERS OF MORE THAN 100 MILLION PEOPLE WORLDWIDE. W W W . MERCER.C OM

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HR organizations help employees interpret and understand the strategy of the company.” At the end of the day, Wilkins concludes that it all comes back to people. “That career choice I made many years ago turned out to be the right one,” she says. “Every day is a new challenge for me, and I feel like I’m making a difference for the organization and for the people that work for us.” Mercer congratulates Aileen Wilkins and H&R Block on being featured in Profile magazine. Aileen is passionate about her employees and consistently strives for service providers to embrace and participate in the culture of H&R Block. Mercer is honored to be its partner.

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Mining and metals companies often get a bad reputation for safety, but Dean Gehring is disproving those commonly held stereotypes through Rio Tinto Minerals’ workplace practices By U R M I L A R A M A K R I S H N A N

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Rudi Van Beek

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Dean Gehring took the biggest risk of his career when he packed up his bags and moved with his family to Irian Jaya, Indonesia. He had been working in the United States for a copper mining company when he took the opportunity to work an international mine. Gehring was from a small farming community in northern Idaho, never dreaming he would make such a change. Yet, those three years were the eye-opening experience that Gehring carries with him to better understand, develop, and foster a safe, global culture at mineral mining company Rio Tinto Minerals. “As I look back on it now, it doesn’t seem like it was a risky career move,” says Gehring, president and chief executive officer at Rio Tinto Minerals. “It was incredibly rewarding just having that opportunity to experience, firsthand, a developing world culture and some of the challenges that came with the extreme operational conditions.” Now Gehring spends about 25 percent of his time on the road, traveling to a few of the various business-unit sites located in the United States, Europe, and Asia, as well as visiting customers that span more than a hundred countries. When he’s not on the road, Gehring normally gets into the office at 7 a.m., before a majority of the other office workers. Because it’s a global company, this time gives Gehring the opportunity to catch up on e-mails from Asia and Europe that have come in overnight. The CEO is a big believer in management walking around, so Gehring also ensures he makes time to walk the floor to see how people are doing and get updates of what they may be working on. It gives him the opportunity to do what he calls “microcoaching.” Employees will use that chance to ask questions, and they get insight on how Gehring sees the business. It’s also a major catalyst in forming a collaborative company culture. Rio Tinto Minerals has a complex structure in that it encompasses everything from mining operations to customer service. The Rio Tinto Minerals team manages the full value stream of operations, supply chain, and customer services, so it’s crucial that the various functions have the authority and autonomy to speak directly to one another. Even though it is a company of 1,000 employees, Rio Tinto Minerals is very focused on running a lean operation—leaders may have to wear many hats. Employees recognize that they have to have a knowledge and understanding of more than just their area of operation in order to create a truly integrated team. Gehring believes this holistic view creates a collaborative and transparent work environment that inspires engagement. “Whether it’s using a business system, a process, or piece of equipment, I strongly believe that people come to work wanting to do something meaningful,” Gehring says. “So not only do we look to engage employees through routine business and quality improvement efforts, we also involve employees in special projects. Once you create that space where people can engage in and improve the business, they are more excited about the work they do.” Another major component that results in multiple generations of employees is Rio Tinto Minerals’ record-low fatality and injury rating. Compared to other industries like construction and forestry, the Dean Gehring US Bureau of Labor Statistics lists Rio Tinto President, CEO Minerals to have a 700 percent lower injury Rio Tinto Minerals rate per 200,000 hours worked. In the last twenty-five years that Gehring Greenwood has worked in the mining industry, he’s seen Village, CO safety increase dramatically every year. “I

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Dean Gehring has lived in the western US, Canada, Mongolia, and Indonesia in various engineering, project management, and operations management positions.

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Executive leaders on an Organizational Transformation journey recognize that fundamental change will only be achieved and sustained through: • Crystal clear goals

“Not only do we look to engage employees through routine business and quality improvement efforts, we also involve employees in special projects. Once you create that space where people can engage in and improve the business, they are more excited about the work they do.” D E AN G E H R I N G

• Strong business processes • Tireless leadership to support process governance Kepner-Tregoe provides a unique, set of processes to help leaders: • Select the most critical projects • Clearly define and plan projects • Optimize communications • Resolve difficult project issues and make superior decisions • Implement strategic projects that will achieve aspirational targets

Kepner-Tregoe, a global management consulting and training company, has been offering operational excellence and business transformation solutions to clients for nearly 60 years.

constantly tell our employees that there isn’t anything we do that’s worth somebody taking a risk where they can get hurt,” Gehring explains. In 2015 alone, Rio Tinto Minerals completed its safest year in more than one hundred years of the company’s history. Indeed, Rio Tinto Minerals achieved zero fatalities for the past decade, and last year it listed a rating of one injury for every 600,000 hours of work, which is significantly lower than in previous years. In all but two cases in 2015, the injuries were very minor, allowing the employee to return to work the next day. Gehring is working on continually improving that statistic. “We’re not going to be happy until we have zero fatalities,” he says. Gehring and his team are putting processes in place to better understand what leads to fatalities and how to break the chain of events that lead to injuries. This will be important as the industry continues to drive itself to be more lean and efficient. “To me, developing an effective business culture is

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not an initiative,” Gehring says. “An initiative sounds too much like a project that has a start and a stop, and something you can complete. Building a company culture is really a journey. It will change and morph over time.” Such change is laid squarely on the shoulders of the top senior leaders of the company, according to Gehring, who adds that it then requires support of the other leaders across Rio Tinto Minerals. “You can’t create a culture by sending out an e-mail, or presenting a few PowerPoint slides,” he explains. “You have to be intentional in how you will build that culture by examining, supporting, and changing the system, symbols, and behaviors that create your culture.”

Kepner-Tregoe is very proud to support Rio Tinto Minerals in their organizational transformation journey. Together, we can drive world class performance and shareholder return by defining and implementing only the critical few projects that will support RTM’s global strategy. From all of us at KT, congrats on your profile, Dean.


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Pay Attention to Team Chemistry to Achieve Results At Mutual of Enumclaw, Dave Wilson executes a team-oriented approach for his IT group that plays a big part in the insurance company’s overall success By J O E DY T O N

Nichole Pierce Photography

If you want to get an idea of what Dave Wilson does for Mutual of Enumclaw, how you ask him is paramount. He’ll open up more if asked how he spends his day as the vice president of information technology and chief information officer at the Enumclaw, Washington-based insurance company. Mutual of Enumclaw works exclusively with local independent agents to provide coverage for individuals, families, farms, and business. “There’s a much more involved answer,” Wilson says. “My interests are about business—not technology—and I spend my day talking with a lot of people across the business. I’m trying to make sure that my team is engaged in a way that gets the customers what they need.” The end result is the same: Wilson is a leader, and it shows in his team-building philosophy. In a tech-centric environment, it can be tempting to go with the best and brightest hires, but Wilson wants more than that: he wants team members that are also nice. “The reality is, quickly delivering technology solutions is complicated; it requires intense collaboration and sharing of information and many hands doing the lifting,” he says. “People who don’t Dave Wilson want to be part of that are just VP of Information not a good fit.” Technology, CIO Wilson puts such an emphasis on team chemistry because Mutual of Enumclaw he believes a team that gets along with one another will have Enumclaw, WA a better chance of producing the

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Guidewire exists to deliver the software that property and casualty insurers need to adapt and succeed in a time of rapid industry change — and to ensure that every customer succeeds in the journey.

best outcome. And producing results is what Wilson is all about; throughout his career, he believes the places he most fondly remembers are where he was happy and productive. “I got the feeling that I was really contributing and making a difference,” Wilson says. “I enjoyed the people I worked with and I was challenged by them to bring my A-game.” Wilson believes this is a key aim of leadership: to create ownership over outcomes and to remove obstacles that prevent individuals from contributing to the team. “High-performing teams have to be built with high-performance individuals, but throw in arrogance and distrust and you won’t have an effective team,” Wilson says. “I want to have a team that impresses everyone who works with them, and that means it’s important to pay attention to team dynamics.” One of the biggest responsibilities any team leader has is to keep the teams motivated. For Wilson, he finds recognition is one of the best ways he can motivate his team. Recognizing a job well done might seem like an easy task, but as Wilson notes, there’s a challenge to it because people like to be recognized in different ways. Rather than just go with a default recognition method, Wilson keeps his ears open to get ideas of how his team members want to be praised for a job well done. “Some want to be recognized publicly, some want a quick e-mail saying, ‘Thanks for coming up with that idea,’” Wilson says. Wilson also feels recognition requires practice. “Last year I began to track every time I recognized someone. I’m talking about simple things—someone does something cool and I let them know, ‘Hey, I noticed that,’” he says. “This helped me see that there were many individuals well deserving of recognition, but because I didn’t work closely with them on a day-to-day basis I was missing the chance to tell them ‘thank you.’ I learned I needed to get better at seeing individual contributions.” Wilson’s team-oriented approach works well for his group’s success, but it plays a big part in the company’s overall success, too. When Mutual of Enumclaw decided its focus was going to be service, it adopted a datadriven approach to focus the efforts of teams across the company. It began by identifying the key measurements of member and agent

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“High-performing teams have to be built with highperformance individuals, but throw in arrogance and distrust and you won’t have an effective team. . . . It’s important to pay attention to team dynamics.”

Pakkad Sah/Shutterstock

DAV E WI L S O N

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loyalty. The company then implemented a “bottom up” execution framework wherein teams throughout the organization identify how they can make the biggest impact on company objectives and track their progress on public scorecards. For example, when Mutual of Enumclaw realized it was behind in its technological capabilities for its agents, a team in IT was tasked with moving a particular technology-focused factor of the agency loyalty metric. On the first try, the technology features anticipated to improve agent loyalty were implemented, but the scores didn’t increase. At a traditional operation, the technology team might at this point have considered its job done. Since the team’s goal was based on a specific, measurable outcome, however, it had no choice but to see what was wrong. While working with Mutual of Enumclaw’s marketing team, it discovered there was a training and knowledge gap. In response, and in concert with an awareness effort led by the marketing department, the development team put together and delivered hundreds of webinars providing the training agents needed. “The cool thing about focusing on the outcome-based metric was that the team actually owned the outcome,” Wilson says. “They owned changing the agents’ perception of value to the point where they got engaged in working with them, and once they started doing that, the scores started going up. I think it was a good lesson for the whole company because it made us all more committed to outcome-based goals.” In July, Seattle Business magazine named Mutual of Enumclaw one of Washington state’s 100 Best Companies to Work, based on employee surveys. Leaders like Wilson help employees realize that just because they’re in insurance, it doesn’t mean their jobs can’t be fun. “We’re forty miles outside of Seattle, and an insurance company, so you might expect it to have the makings of a sleepy, boring place to work,” he says. “In fact, I think visitors are quite surprised to find out how entrepreneurial and dynamic it is. It’s fun to be part of.”

MUTUAL OF ENUMCLAW’S FARMING ROOTS More than a century ago, farmers in Enumclaw, Washington, gathered to form the Farmers’ Mutual Insurance Company in 1898. The group’s egalitarian business philosophy required each member to split the costs equally to cover any losses or misfortunes. The first agent, S.L. Sorenson, traveled between farmhouses on horseback to recruit members, oftentimes staying overnight and sharing a meal with the residents. It fostered a spirit of community that persists to this day. Since the 1940s, the company has extended its insurance coverage from local farms to families and businesses in Oregon, Idaho, Utah, and Arizona.

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Terrence Dixon worked his way up over the course of thirty-one years in the supermarket industry, and now he’s imparting his human resources expertise to inspire the next wave of diverse talent at Brookshire Grocery Company By B R I D G E T T N O VA K

Terrence Dixon’s first job was bagging groceries at the Safeway store in his hometown of Little Rock, Arkansas. The sixteen-yearold liked the job, the people he worked with, and the extra spending money it gave him. He has stuck with the business ever since. Though he was still in high school, Dixon’s bosses noticed his strong work ethic and positive attitude, recommending him for Safeway’s management training program. Dixon was a quick study and was promoted to assistant store manager. When Safeway sold its Arkansas stores to Harvest Foods, Dixon was asked to try his hand in the advertising-marketing division. Dixon continued working there through college, but soon after getting his bachelor’s degree in business from the University of Arkansas, Harvest Foods filed for bankruptcy. Some of the stores were sold to Brookshire Grocery Company, and Dixon was offered a position in its advertising department. When an opportunity opened up in human resources, company leaders suggested he make the move. “They needed someone to help with college recruiting, going to campuses and telling potential employees about the company and its various opportunities. Since I had worked in lots of different areas, I could describe the various positions,” Dixon explains. “I also had pretty strong communication skills and a passion for the industry, so I was a good person to have represent the company.”

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Terrence Dixon VP of Human Resources Brookshire Grocery Company Tyler, TX

Dixon decided to stay in human resources, taking on increasing responsibilities and rising to the department’s vice president in 2008. Now he oversees the administrative side of human resources—employee relations and recruiting—while another vice president oversees training and change management. Dixon has twenty-five people on his team—some at the corporate headquarters in Tyler, Texas, and others known as field officers are located in various stores. In addition to handling HR issues in their home stores, each field officer is assigned a geographic territory to ensure that all stores are covered. One of the HR programs launched soon after Dixon started is Brookshire’s alert line, which provides a third-party system for employees to file complaints. Employees can choose to identify themselves or remain anonymous, according to Dixon, who sees all complaints and determines who will respond. “We take each complaint very seriously. Some are clear-cut and the action needed is obvious; others require an investigation,” Dixon says. “Whichever it is, we make sure

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Looking for skilled labor? Or, you’re trying to find administrative help? Maybe you need a executive to join your team? Finding the right employee can be demanding. From recruiting to interviews, Express Employment Professionals does the searching for you. We get to know your business and who you’re looking for. We find qualified people for all of your staffing needs. Visit us online and see how we can help.

“We rely heavily on our local managers to reflect the base they’re serving. . . . We need to focus on less obvious types of diversity, too— diversity of thought, background, sexual orientation, religion, etc.” TE R R E N C E D I XO N

the employee is notified immediately to let them know their complaint has been received and that something is being done.” Brookshire also has an open-door policy, Dixon says, so employees don’t have to use the alert line. “I know lots of companies claim that, but we really mean it,” Dixon says. “They can reach out to anyone at any level, myself included, to lodge a complaint or share an idea. Our responsiveness and accessibility has helped minimize the number of employee lawsuits filed against the company.” Dixon is also a huge proponent of increasing the diversity of the company’s workforce. “We evaluate market demographics and try to hire according to the community we’re serving,” Dixon says. “That’s easy to do when we’re opening a new store and hiring large

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numbers, since we can attempt to reflect local census data. It’s more difficult when we’re filling random positions.” It’s crucial that Brookshire’s local managers reflect the base they’re serving, according to Dixon. “I don’t just mean diversity of race or ethnic background,” Dixon says. “We need to focus on less obvious types of diversity, too—diversity of thought, background, sexual orientation, religion, etc.” Dixon’s team also looks for people with good communication skills and engaging personalities. “They need to have a helpful and willing attitude. We provide training, but you have to start with some basic traits,” he says. One aspect that Dixon emphasizes during initial interviews with potential employees is the importance of customer service, which is spotlighted throughout employees’ careers. “We look for this when screening potential hires; we stress it during the initial onboarding process; and we continue to provide training, both instructor-led and online, as long as someone is employed here,” he says. Brookshire also encourages its employees to go above and beyond what people expect. “One way to explain how we view customer service is to say that if a customer asks the location of a product, we advise employees to escort them to the item rather than just verbally telling them where it is in the store,” he says, adding that Brookshire doesn’t have employee-of-the-month programs that are common at other retailers, but rather it tries to catch workers the moment they’re doing something great, and praise them on the spot. Dixon says the increasing industry competitiveness is making it harder not only to recruit top talent but to keep them. One way Brookshire hopes to distinguish itself from competitors is through its scholarship program. “Once someone has been with us at least six months, they are eligible for tuition support,” Dixon explains, adding that employees can potentially receive money toward an associate, bachelor’s, or master’s degree. “We believe in helping our employees grow professionally and hope that this, in turn, builds their loyalty and provides us with workers who are continuously advancing their skill sets and improving their knowledge,” Dixon says. “We see it as a win-win for the company and the employees.”


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Kim Mickelsen CEO, Managing Principal Bozell Omaha, NE

The Heart of Change By J E N N I F E R D R A P E R

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Nerds, geeks, and advertising obsessives rule at Bozell, where Kim Mickelsen hires the best and brightest to help the storied creative marketing firm retain the heart of a startup Q3/16

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Smart, curious people are encouraged and equipped to become multidisciplinary strategists at Bozell. The advertising agency’s Twitter bio says it all: “We’re nerds and geeks with a weird, obsessive love for advertising.” Bozell CEO Kim Mickelsen, who says she developed a passion for marketing early in life, joined the firm as a senior account supervisor in 1990, and she has been there ever since. “We really have the best of both worlds,” Mickelsen says. “We have a history in the big leagues, but with the heart of a startup.” Founded in 1921 by Leo Bozell and Morris Jacobs, the creative marketing communications company indeed has a storied history. Bozell is often recognized by such slogans as, “He ain’t heavy, Father, he’s my brother”—used in an early campaign for Father Edward Flanagan’s Boys Town—and, more recently, “Pork: The Other White Meat” and Mutual of Omaha’s “Wild Kingdom.” After a long series of mergers and acquisitions—at one point, the firm was part of Lorimar’s global network of thirty-five offices and affiliates—Mickelsen was one of four executives to negotiate a buyback in 2001. Bozell has remained an independent, single-office shop since then. In 2012, Mickelsen and business partner Robin Donovan became the sole owners of the business, earning a Women’s Business Enterprise certification from the Women’s Business Enterprise National Council. The credential, intended for businesses that are majority owned, operated, and controlled by women, has only been granted to 11,000 companies nationwide. “Robin and I are obsessive about nurturing a culture that is collaborative, results oriented, and creative,” Mickelsen says. Yet, until a few years ago, Mickelsen had never envisioned a successful advertising campaign about—or for—the living dead. The Omaha, Nebraska-based agency developed a wildly successful marketing campaign for regional chain Westlake Ace Hardware in 2011, framing its stores as “Zombie Preparedness Centers.” The team had found the data, lots of it. Mickelsen’s team had noticed that Midwesterners spent a lot more time doing online searches for terms related to zombies than did people in other regions, exemplifying Bozell’s impressive ability to quantify the marketing impact to deliver results. In just fifteen days, Bozell’s team rolled out a monthlong multiplatform campaign that

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“We knew that we needed to change the way in which people thought about their own jobs. You may be a skilled illustrator or copywriter, but today you need to think of yourself as a strategist first. We help employees see beyond their expertise.” KI M M ICKE LSE N

culminated in a homepage takeover on October 31. The campaign went viral, racking up 45,000 online mentions from 142 countries. “They got e-mails from places like Australia saying, ‘Gosh, I wish my hardware store was this cool,’” Mickelsen says. “That’s not a sentence you see very often.” Since then, other highly successful campaigns have been born of this fusion of data and ingenuity. Bozell created the TV commercials and online films for First National Banks’ “Memorable Firsts” campaign, and it also constructed a nostalgic sandlot in downtown Omaha to promote the College World

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Series, which tracked more than 14,000 website hits in 2014. All of this success starts with getting the right people in the room, according to Mickelsen. “One of our hiring criteria is insatiable curiosity,” she says. “We hire smart people and let them do their jobs. Robin and I have the mind-set that we’re not the bosses; we’re the mentors. Our job is to try to bring out the best in every employee.” It fosters remarkable results. Bozell produced a traveling road show for First National Bank last summer that included an RV with a studio where the team recorded people’s stories and provided multiple Oculus Rift

virtual-reality experiences. It also launched #SupportBlue for the First Responders Foundation, which has taken on a life of it’s own and is now used all over the United States to support police officers and firefighters. Always on the pulse of trends, Bozell’s team does not shy away from new ideas. At its core, Mickelsen’s leadership strategy reflects this simple idea. “Embrace change,” she says. “Kiss it on the lips. We don’t believe that just because it worked yesterday, it will work today—it doesn’t work that way anymore.” Mickelsen knows this firsthand. A longtime tech enthusiast, she created one of the first in-house digital divisions (then called “interactive”) at a full-service advertising and marketing agency. Bozell’s collaboration with a sister company on the West Coast had resulted in a project that started as a debacle, but when Mickelsen realized that they needed to stop outsourcing digital work, it became a transformative moment for the agency. “I hired a programmer, and then I went back to school to understand more about programming,” Mickelsen says. She took night classes not because she wanted to be a programmer, but because she needed to understand enough of the technology to think about it from a business perspective. Bozell, under Mickelsen’s direction, has maintained a huge commitment to training, developing a holistic approach to cultivating employee skills to foster multidisciplinary collaboration. To break down organizational silos that kept employees separated by skill set, Bozell moved to an open-plan office in 2010. “We knew that we needed to change the way in which people thought about their own jobs,” Mickelsen says. “You may be a skilled illustrator or copywriter, but today you need to think of yourself as a strategist first. We help employees see beyond their expertise.” Bozell’s internal training program, Close to the Customer Academy, also is not about learning any particular tool. “It’s about training people to suss out what is the best solution and not fear anything that’s out there, even if they’ve never done it before,” she explains. Employees are encouraged to “keep their skills fresh,” she says, which might involve classes on social media strategy, web coding, or high-end guerrilla marketing. Based on this collaboration and a keen ability for data analysis, the agency’s successful campaigns throughout the decades have proven Bozell’s commitment to delivering measurable results through exceptional creativity.

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The Maestro of  HR Dick Caldera orchestrates Bayer’s movement to a life sciences brand with a new talent acquisition strategy and structure driven by unified purpose Words by J E N N I F E R D R A P E R

D

Photos by S H E I L A B A R A B A D

Dick Caldera remembers driving on the Autobahn, the federal highway system in Germany, when an illuminated Bayer logo emerged in his sight line above the Leverkusen skyline. Unlike most Americans, he knows that Bayer is much more than the aspirin company founded in 1863. He’s ushering in a new era in Bayer’s history with expertise gleaned from more than thirty years spearheading human resources at top multinational organizations such as BP/Amoco, Skanska, and Philips. All these pivotal points prepped him to help initiate Bayer’s global cultural transformation into a life-sciences company innovating in the fields of pharma, consumer health, crop science, and animal health. His decision to seek international experience—some being high-risk, high-reward moves decided by a sip of cognac near the fireplace—ultimately broadened Caldera’s HR thought leadership to the point where he realized what he was living couldn’t be taught. “Once you’re in it, what you find is the pool of true international HR players really isn’t all that big,” he says. “Doing global became so valuable because as I went further on, I got opportunities to work in different industries.” Now, Caldera feels most at home at Bayer US, where he’s the senior vice president of human resources. He’s putting his international experience to work as Bayer shifts to a more unified, global company, while staying faithful to what he calls the true role of human resources: stewards of the qualitative elements of strategy.

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Dick Caldera SVP of Human Resources Bayer US Hanover, NJ

To maximize the effectiveness of human resources, business must come first and function next, according to Caldera. “If you think about strategy, it implies a certain set of aspirations. How big do we want to be, by when? In what countries?” he explains. “How a strategy actually gets executed is by how many people, what skills, where, and when, because without that, strategy is just a piece of paper on a shelf.” For Caldera, human resources must bring that gap analysis on organizational capabilities to the table and also identify whether it’s people, structure, processes, or reward systems. Human resources needs to see strategic solutions in a very holistic way, he says, because there’s not any one answer. “If you have this particular strategy, there’s a number of levers you have to pull around organizational capability that rest in people, in organization structure, in processes, and in reward systems,” Caldera says. “And how you pull those levers is going to one way or another dictate your success with executing the strategy.” To usher in the new era of Bayer, Caldera equates his role to that of a maestro: “I have to come in and listen to the music that’s being played, and then I have to decide, are my musicians organized in the right chairs? Do I have to move the cellist from here to there? Or maybe I don’t even have the right musicians.” NEW TALENT, NEW BAYER As a first step toward building the new Bayer, the company is creating a greater capability for talent acquisition internally to reflect all of the changes in the way that companies go to market today for talent. Caldera points to an iPhone on the table in front of him.

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Vanguard congratulates Richard Caldera and Bayer! It’s been our pleasure to partner with Richard and Bayer in building a state-of-the-art plan that benefits Bayer employees of all generations. Congratulations on this well-deserved recognition! We look forward to many more years of working together to enhance the retirement plan so Bayer and its loyal workers can build a better financial future. We are happy to have Bayer employees among the four million participants in Vanguard-recordkept defined contribution plans. Vanguard is using innovative plan design technology and investment expertise to help guide Bayer participants, and millions of others, toward a more secure retirement.

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“I think they’re looking for, ‘How is this company perceived by the general public, and by me associating with this company, what will people think of me?’” D I C K CA L D E R A

“There’s a lot of people today that search for jobs that way and actually apply right from their mobile device,” he says. Bayer does have an online application portal, yet Caldera’s team is tasked with expanding the channels for talent acquisition to raise Bayer’s visibility for the next generation. “Are we at Bayer e-enabled? Yes. But not e-enabled in the sense of when we start looking at millennials,” he adds. The shifting ways that up-and-coming talent look at companies is from the standpoint of an employer’s attractiveness, according to Caldera. This realization prompted Bayer’s recreation of its brand as an employer with the mantra “Passion to Innovate, Power to Change.” To deliver on that brand, Caldera’s team is aligning the talent acquisition process. “If you go to market in some old traditional way, ‘Passion to Innovate, Power to Change’ doesn’t resonate,” he says. When Caldera thinks back to the time when he was coming out of school and compares it to the experience of his own kids now, he observes how the perspective of a

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rewarding career is different. Nowadays, it goes beyond a company’s standard ethics and values. “I think they’re looking for, ‘How is this company perceived by the general public, and by me associating with this company, what will people think of me?’” Caldera explains. “They’re looking at their career in different stages, not looking to go to Bayer to work for the next thirty, forty years.” Caldera also notes the end of the cradle-to-grave career system for today’s job seekers. From that perspective, Bayer is pivoting to position itself in the eyes of the new workforce to pinpoint what it offers talent—with the help of Caldera’s HR team. “When you start peeling away at what we stand for, how we position ourselves as an acquirer of talent as we go through this whole talent acquisition rebuild, I think we will have positive impact because we are mission driven, we are purpose driven,” Caldera says. Bayer’s mission of “Science For A Better Life” appeals to the millennial need to make a difference, according to Caldera. “People here expend a lot more discretionary energy because they really believe that what they do in their jobs potentially could make someone’s life better, or even improve the experience for someone who’s sick and for their family,” he says. With this purpose-driven philosophy embraced by current Bayer employees, Caldera’s team is externally repositioning the company in the marketplace based on such passion to win the battle for talent. Building capabilities internally through technology will help acquire and onboard talent much more swiftly. As a first step, Caldera elevated

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Executive Search | HayGroup | Futurestep

Choose to thrive. Leverage your people. Korn Ferry Futurestep recognizes Dick Caldera for his outstanding efforts to build a best-in-class talent acquisition function at Bayer US through initiatives that give employees a reason to care - about their work, about their business, and about their impact on the world in which we live. We are honored to be a strategic partner.

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the head of talent acquisition for the United States, and he expects to shift to the new model by the end of this year. THE CONDUCTOR OF CHANGE The global initiative to take a fundamental look at how Bayer is going to market for talent needed a focus group of sorts to develop the company’s universal strategy. As Bayer’s human resources head in the United States, Caldera is part of that global leadership team and is also the one who raised his hand to pilot Bayer’s new talent initiative. The team comprises the global head of human resources with his direct reports and then the heads of Bayer’s three largest countries, Germany, China, and the United States. There was a certain amount of risk for the global team in saying yes, due to the size and complexity of the US operations (the recruiting volume in its US services center today equals about three thousand requisitions per year). Yet, Caldera made his case for the extra work. To him, the additional resources to shape the initiative would allow his team to have a larger voice and ultimately a more seamless integration of the global solution. “If we did the pilot in another, smaller country for the company, eventually it would come to us in the US, and I might say, ‘I’m not sure we can actually implement it the same way you did it in country X,’” Caldera explains. “It’s a really great reflection on the team of people who are part of the HR function in the US at Bayer today that the home office would say, ‘We’ll do this pilot in the US.’” However, several years ago Bayer’s leadership team would not have picked the United States to be a pilot country due to a large concern about if the function could actually pull it off. What changed? Caldera’s human resources team has gained a lot of credibility since his arrival in October 2012, and not just locally by the management in the Bayer North America leadership team, but also by top leadership at Bayer’s global headquarters in Leverkusen, Germany. Prior to where Bayer is today, human resources in the United States wasn’t united under one platform to support all of the businesses. Enter Caldera, who joined the team four years ago to rebalance the matrix for more consistent support to all operations in its geography through a single HR platform. Caldera spent the first year and half at Bayer assessing his inheritance: human resources had a messy reputation. All of Bayer’s human resources teams across the globe were reporting outside of their respective countries. “It was almost like you were in a league of nations, not even a united nations,” he says. “It became very difficult in trying to convince people to agree on something.” To counter this fragmentation, Caldera took swift action to build a battle-ready HR division in the United States, sourcing talent from companies highly respected for HR practice, such as Novartis, GE, and Honeywell. Caldera describes his top-notch team as a diverse bunch, not just from the standpoint of visual diversity, but also in the way each team member works and thinks. “I feel like I have a better chance of success because I have so many different viewpoints on my team,” Caldera says. “And with enough debate about which direction we have to go in, I can evaluate what I’m hearing from my different team members, and ultimately I believe it provides a better solution.”

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Now, operating within a more streamlined structure, human resources under Caldera’s North American purview is poised to efficiently implement any operations strategy governed by the global leadership team. His HR team is divvied into three factions: business partners, local experts, and a services sector. Bayer’s HR business partners are embedded with business leaders and units across the United States. “We all don’t sit in some sort of HR enclave somewhere, dreaming up all these world-class HR processes,” Caldera says. “These people live and breathe the business.” He adds that his team has focused a lot on upgrading the skills of these business partners so that they can effectively contribute to business needs. Caldera rebuilt Bayer’s local experts, a much smaller group, to form the center of human resources expertise, covering compensation, benefits, talent management, labor and employee relations, diversity and inclusion, and change management. That quality expertise was missing, according to Caldera, who filled the skill set gap to deliver business solutions internally—needs that were previously being developed by hiring external consultants. The third component of the Bayer US human resources population is also its largest: the shared services sector. With more than 200 people in the HR department, about 120 sit in the service center. The group is tasked with human resources responsibilities such as payroll, benefits administration, compensation administration, recruiting, and mobility and training administration “The only way business partners can deliver is through an expertly run shared services sector,” Caldera says. “The business doesn’t derive any competitive advantage from doing it differently.” Led by Caldera, Bayer’s human resources team in the United States now acts as a competent, organized unit. Such cohesion mirrors the multinational company’s global movement toward a unified culture, championed by leadership as “one Bayer.” “You’ll see that theme resonate a lot today when you hear Bayer’s Board of Management talk about how we’re a life sciences company,” Caldera says. “It’s been sort of an evolution under their leadership, going from thinking we’re a material science company

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and a chemical company and a crop science company and a healthcare company—to really moving toward one Bayer.” A STRUCTURE METAMORPHOSIS Bayer’s focus turned to life sciences after the spin-off of its material science division, what became Covestro, in September 2015. The move shed the last vestige of Bayer’s initial identity as a chemical company when it started more than a century ago. The CEO and the rest of the board of management had to look at Bayer’s portfolio very differently, Caldera says, because it had these three different businesses under a holding-type company structure. Now, the three divisions under “one Bayer” include pharmaceuticals, consumer healthcare, and crop science. “That’s why Bayer’s been around for 150 years and not just survived, but thrived— because the company evolves the right way,” Caldera says. “This is a company with a real soul and a really good set of values.” Bayer’s strong sense of internal and external corporate social responsibility, leveraged by human resources and communications, helps Bayer’s workforce embrace what it means to be a life sciences company. The cultural shift of moving from independent, self-sufficient companies under a holding company, to one company with one platform of support, requires an expanded HR platform. Caldera’s team aims to minimize the effects of isolation driven over the past ten years. “Structurally, you can say let’s jam everyone together, but now you’re talking about driving trust, collaboration, and really breaking down the silos,” he says. To implement new Bayer’s culture, Caldera understands human resources’ crucial, yet backstage, role. “The leaders have to lead the change because if HR tries to lead it, nobody’s following,” Caldera says. “HR at best can influence, HR can’t mandate, instead leading by influence and by example.” HR business partners and change-management members will partner with leaders to create tools and initiatives to help people to reexamine how they work with their new colleagues. However, evidence of Caldera’s direct impact on cultivating “one Bayer” before it became a global initiative exists in the transformation of the country’s learning

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“The leaders have to lead the change because if HR tries to lead it, nobody’s following. HR at best can influence, HR can’t mandate, instead leading by influence and by example.” D I C K CA L D E R A

management system at Bayer US. “Learning, even at its most fundamental level of administration—of going to vendors and bringing them in to design and develop courses—was so siloed,” Caldera explains. “We had more learning management systems than you could have ever wanted.” In the United States alone, Bayer had eight learning management systems. For its 15,000 people, Bayer was offering more than 30,000 courses, most of which were duplicative. Now, SAP’s SuccessFactors is the backbone of Bayer’s global human resources information system, including learning, with a new project called One Solution. The United States is the pilot country once again. “It’s a reflection of the fact that we have people in that area that are well respected to deliver what needs to be done,” says Caldera, who adds that it will require a strong collaboration between human resources, IT, and the businesses. Leadership also moved away from sixty total competency models to just one. “The global competency model has become the basis for dialogue around talent: selection, performance management, development, and succession planning,” Caldera says. So far, about 3,400 managers and employees in the United States have been trained in the global competency model. “No matter where I go on my travels to different businesses, it’s amazing how many leaders of the business tell me it’s one of the best things I’ve seen HR do,” he adds. “It’s changed the way in which we look at our talent, it’s changed the conversations we’re having, and it’s helped us improve how we interview and acquire talent.”

In the next few years as these initiatives roll out, Caldera expects to see Bayer living up to its employer brand of “Passion to Innovate, Power to Change” as enabled by its new, unified structure and the implementation of the talent acquisition strategy. He knows it will continue to be a significant undertaking for the entire team, and it’s through his team that he will continue to measure his effectiveness. Ultimately, Caldera believes in hiring people who are better than him, empowering them, holding them accountable, and enabling their success. “One person isn’t going to have an impact, it’s how you build the team,” Caldera says. “Have I conducted the orchestra, and is the music you’re hearing today better than the music you heard yesterday? You’ll be able to judge me based on the music that the HR function plays. That’s how you’ll know if I’ve done my job.”

Along with Profile magazine, Korn Ferry Futurestep recognizes Dick Caldera, senior vice president, human resources at Bayer Corporation for his exemplary leadership and commitment to the growth and success of his organization through innovative talent strategies. At Korn Ferry Futurestep, we are honored to partner with leaders like Dick who share our belief in talent as a company’s greatest asset. Only by unlocking the full potential of its people can an organization realize growth and sustained success. A division of the preeminent global people and organizational firm Korn Ferry, Futurestep delivers professional talent with impact. Our solutions include recruitment process outsourcing, professional search, talent consulting and employer branding. To learn more about how we can help your business thrive, visit us at www.kornferry.com/futurestep.


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Jewel of the Midwest Chief human resources officer Michelle Lieb shows why people are the cornerstone to the foundation that makes Chicago’s Pepper Construction a billion-dollar success Words by S T E P H A N I E S . B E E C H E R

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Photos by C A L E B F O X


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Michelle Lieb Chief Human Resources Officer Pepper Construction Chicago, IL

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Chicagoans may not recognize Pepper Construction by name, but they might be familiar with its most prominent projects that define the aesthetic of the Windy City. The construction firm’s infrastructural influence reaches nearly every corner of the Midwest metropolis, and driving down the city’s streets is like flipping open the pages of a life-size portfolio with building work completed at The Ocenarium at the Shedd Aquarium; the Regenstein Macaque Forest at the Lincoln Park Zoo; the Under Armour Brand Store on Michigan Avenue; the IKEA in nearby Bolingbrook; and the historic home of the Chicago Cubs, Wrigley Field. Pepper Construction specializes in pre-construction, general contracting, and self-performed construction services in a multitude of areas including healthcare, industrial, waterworks, data centers, retail, education, interiors, hospitality, and more. With so many landmarks under its belt, it’s no surprise that the privately held Pepper Construction has garnered success across the region and beyond, becoming one the largest and most well-respected construction companies in the United States. While part of its leverage stems from its wide range of expertise, the foundation of the company’s success rests less on molding steel and plaster into beautiful, sustainable, and functional buildings—and more on the shoulders of its people. That’s a differentiator that starts in human resources. As Pepper Construction’s chief human resources officer, Michelle Lieb recognized early on that the key to achieving the company’s goals begins with an engaged and empowered team. “The construction business extends beyond the job site,” Lieb says. “It’s my role to understand the needs of the business as an integrated member of our executive team, and then to create a culture that engages people in that vision and equip them with the resources they need to grow their careers and, at the same time, deliver the highest quality product and service for our clients.” Lieb got her start in human resources in the hospitality industry, where she first worked for the Renaissance Hotel, a job that ultimately brought her to Chicago. A few years later, she learned about Pepper Construction through a friend. Impressed by the company’s familyoriented culture and strong values, she accepted a position as HR manager. With an undergraduate degree in business and psychology, and a master’s degree in human resources and organizational development under her arm, she saw Pepper Construction as a fantastic fit. “HR is so ingrained in the broad spectrum of our business in that it’s a very diverse career—you’re not doing the same thing two days in a row, or even year to year,” says Lieb, who has now worked at Pepper Construction for seventeen years. When Lieb was hired, Pepper Construction was a $690 million company on the verge of expansion. It was Lieb’s responsibility to manage hiring, training, and employee relations in support of the day-to-day needs of the business. But the growth of the company warranted greater integration. “What I found was that as I continued to gain a better understanding of the business, I was able to see how HR could bring value to our operations,” Lieb says. “In doing so, I was able to evolve the role from an administrative support position to an integrated partner that could help move our business strategies forward. While traditional HR functions remain vital, when you can connect the HR discipline to the business—you become a strategic player.” That line of thinking positioned Lieb to support the company through the coming economic downturn so that Pepper Construction would emerge stronger than ever. “Pepper is fortunate to enjoy a very stable fiscal position,” Lieb says. “This enabled us to strategically focus

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on developing our people and our systems during the recession so we could be positioned for prudent growth once the economy recovered.” With the support of Pepper Construction’s executive team, Lieb launched a competency training program. Together they met with subject-matter experts to identify the abilities needed to be effective at each level of project management. For example, when it came to project managers, the company discovered that employees often had the technical knowledge necessary to perform their jobs, but were less adept at some of the soft skills, like negotiation. “Most of our project managers are trained as engineers,” Lieb says. “This technical perspective is essential for construction. But what makes you effective in senior roles is behavioral competencies in soft skills.” To help understand the extent of training and education needed, Lieb says Pepper Construction went to the source and had a conversation with employees. So, they hired a director of training who interviewed more than 20 percent of the staff—more than 120 interviews. At the top of list? Employees wanted to map out their career paths, acquire stronger leadership skills, and receive advanced technological training. Lieb says employees also wanted to build their financial intelligence. “We see this as a strong indicator that our employees are engaged in the business, and we saw this as a priority for training,” Lieb says. Pepper Construction obliged. In addition to creating a more robust training program, the company began a financial acumen series. “When you’ve been in the business for a while you start to take the complexity of our industry for granted,” Lieb says. “Helping people understand equipment costs and labor costs, for example, can empower them to perform at a higher level and understand how those dollars translate into profits for the business.” The information gathered throughout the initiative also shed light on the need to streamline performance reviews. Previously, performance reviews were documented only sporadically. By utilizing the SuccessFactors software program, Pepper Construction could gauge 360-degree performance reviews, with specific goals (such as connecting with ten new contacts), learning management, safety best practices, and more, in an easyto-use online platform. Today, the implementation of the program has resulted in a 100 percent performance review completion rate. Lieb also spearheaded similar initiatives related to succession planning, training, benefits, and


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The Alliant Construction Services Group and Employee Benefits team at Alliant would like to recognize and congratulate Michelle Lieb for her exceptional leadership and accomplishments.

As Pepper Construction’s chief human resources officer, Michelle Lieb oversees human resources, including strategic planning, compensation, benefits, employee relations, and training.

compensation. “Goals are critical to progress within any company, and we wanted a more effective way to outline those goals and encourage goal completion,” Lieb says. “This initiative embodies the HR strategy we’ve implemented at Pepper. We are focused on listening, and building a bridge between the needs of Pepper people and the business.”

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Since Lieb joined the company, paying keen attention to the needs of present and future employees has helped Pepper Construction to double in size to over a billion dollars in revenue, and it is projecting to double again by 2020. Lieb is also doubling down on today’s challenges; similar to many firms, Pepper Construction has an aging

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We are proud to work with Pepper Construction as their surety service and employee benefits provider — promoting new and innovative ideas that are highly valued by both their company and employees. Alliant is the single source for your insurance program. For more information, visit alliant.com


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“Technical perspective is essential for construction. But what makes you effective in senior roles is behavioral competencies in soft skills.” M ICHELLE LIEB

workforce, so the focus on recruiting and retaining talent is more important than ever. “We conduct a talent assessment each year, and we’ve noticed that we’re doing a much better job at career progression and better servicing our clients,” Lieb says. “I believe that’s a result of providing people the opportunity and responsibilities that they want, and equipping them to succeed in the process.” As for Lieb? Seventeen years later, Pepper Construction is still a company she enjoys. Recently, she visited the job site for one of Pepper Construction’s latest projects—a forty-one-story apartment building called the MILA, a John Buck Development, located just south of Chicago’s Magnificent Mile. It’s the first residential high-rise to be built on South Michigan Avenue in decades. “Pepper is an exciting place to work, and I’ve been fortunate to grow my career here,” Lieb says. “I’ve always had ideas, and Pepper’s culture has allowed me to put them into action. It’s a company that listens and cares about their people and their clients. When you do that and go in a direction that really works for a business as a people, it’s always the best result.”

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Jonathan See CIO Pepperdine University Malibu, CA

When Opportunity Knocks, IT Answers How a high-performing IT team encourages innovation and improves user experience at Pepperdine University, leading development inside and outside of the department By Z A C H B A L I VA

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Student engagement? Yeah, there’s an app for that. Garrett Pendergraft took a cue from Foursquare when he created Sophy, a mobile web application he uses to enhance learning through gamification in philosophy classes at Pepperdine University’s Seaver College. Sophy lets students earn Sophy Points by completing professor-approved tasks, which each have different point values depending on difficulty. Students earn one point for meeting a professor during office hours and up to ten points for producing a relevant and informative video. The program is customizable, and students receive automatic alerts to track their progress against classmates via the Sophy leaderboard. According to Pendergraft’s Sophy abstract, the game helps students naturally engage in coursework. Pendergraft funded Sophy through Pepperdine’s unique Innovation in Technology and Learning grant program, which offers seed money to full-time faculty members from all five university schools. Jonathan See, chief information officer, says the program helps “create an environment where faculty members can exercise creativity in trying out new and existing technology to enhance teaching and learning.” The grant program, started in 2008 in partnership with the provost’s office, awards up to $80,000 in funding each year with maximum grants of $10,000. Since its inception, the program has awarded over $312,000 in grant seed money. See, who has worked in higher education for twenty-six years and at Pepperdine for ten years, considers himself a strategic CIO. He and a team of ninety IT professionals provide better technology services to the university and improve the user experience to better serve students. A Technology and Learning group even supports faculty grant winners. “They bounce ideas off us, and we help them achieve their learning objectives,” See says. “We work closely with them to implement their ideas and neutralize their hesitations about using technology.” Grantees are invited to present at an annual IT-sponsored faculty conference. The faculty-teach-faculty model drives higher engagement and buy-in, as faculty members hear from their peers. “If an idea in academia comes from IT, it’s received differently. When we can get professors to teach their peers, and to show them what’s possible, we see better results,” See says. The grant program is just one way See’s department contributes to a culture of innovation at Pepperdine. IT reports to the provost’s office and is an academic arm of the university. See offers a regular faculty development program, and he also invites faculty members to join him at conferences across the United States. Additionally, See’s department has deployed several initiatives designed to increase efficiency. “Technology is everywhere at a university. It’s not just in IT, it’s in every department, and it’s in our personal lives. We have to look at how we can harness tech tools to streamline business processes,” he says. His team looks for opportunities to introduce automation to replace manual businesses processes. “If we can take a manual effort from twenty hours a week to four hours a week, you can repurpose your time to better serve the students,” See explains.

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In 2015, See’s team accomplished these goals by rolling out digital signatures. Pepperdine’s buildings sit on a Southern California hillside and face the ocean. Before digital signatures, staff and faculty members had to hike from building to building to gather signatures on forms, contracts, and documents. Now, technology has reduced a daylong process to minutes. In an academic setting, change often moves at a snail’s pace. See navigates the pace problem by approaching stakeholders in person and communicating directly with executives, including the president and provost. He serves as a change agent and demonstrates a more effective way to accomplish a task on campus. Then, his department works with the stakeholder to implement the idea. For example, See’s team is completing a campus-wide customer relationship management (CRM) initiative that required buy-in at all levels. “We sold the idea by illustrating how a unified CRM would create a stronger student body and alumni base by giving the university the chance to speak with one tone, style, and voice while engaging the student at every point of their lifecycle,” See says. When each of Pepperdine’s schools had its own CRM, Pepperdine lacked a way to engage each student. Now, the university can enhance its engagement from recruitment to retention to advancement. At every step, See works to help stakeholders understand the gains associated with centralizing the use of databases and platforms. He also works hard to help those stakeholders take ownership of initiatives. He formed a CRM governance committee made up of those stakeholders and then asked them to take the lead. “I may start something, but I ask the stakeholders to run with it, because otherwise a project becomes another IT initiative that they may never support,” he says. The committees monitor each project and suggest changes as IT pivots to facilitate each initiative. At the start, See presented several platforms for the group to consider, and the committee ultimately chose Salesforce as its platform. The process took a little longer


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One Student Journey. One CRM. targetx.com/oneCRM

“If we can take a manual effort from twenty hours a week to four hours a week, you can repurpose your time to better serve the students.” J O NAT HA N S E E

than it would have if See merely prescribed a platform, but he believes a more engaged governance committee will yield better results in the long run. There are other ways IT innovates at Pepperdine. Although the university doesn’t offer a full computer science degree, See and his colleagues created an internship program in 2014. The collaborative program, built through the Natural Science division, pulls senior students into paid, year-long positions where they work on real business issues and help the university solve problems. At the end of the year, interns present their solutions, and IT helps implement the projects. In 2014, the program’s first three interns accepted job offers from software development firms before graduation. Now, See is turning his attention to research computing. While Pepperdine is

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known more for teaching than research, he’s working to provide internal researchers with resources and expand research in general to attract new faculty researchers and students who want to learn from them. Then Pepperdine could receive federal research grants. Through these efforts, See is proving once again that technology can create new opportunities for staff, faculty, and students at Pepperdine University.

TargetX, the leading CRM company in higher education, is reimagining the student experience through campuswide solutions. Built on the Salesforce platform—TargetX offers a complete suite of products, including a mobile-designed admissions application and student engagement platform. Known for innovative technology and industry expertise, TargetX is a trusted CRM provider.

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Campuswide CRM for Higher Education


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People die. It is a harsh inevitability that everybody acknowledges, but nobody wants to think about. Unless you’re Bart Catmull.

By M A R K H E R R E R A

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Randy Van Duinen

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Bart Catmull was the chief operations officer (COO) of Sagicor Life Insurance Company for nine years, before becoming its president three years ago. He deals with death on a daily basis. The company’s mission is to help policy holders’ loved ones pick up the pieces and continue on once the inevitable happens—a cause he considers to be a higher calling. “I began to truly appreciate what we do when I had a good friend of mine pass away unexpectedly and he left behind a wife and five kids with basically nothing,” Catmull says. “Then their world was flipped upside down.” In the insurance industry, sometimes this higher call goes unanswered. Catmull acknowledges that there is a tendency to look at everything as claims and policy numbers, while ignoring that the claimant is going through a difficult time, because the person they are calling about is someone they had a deep, personal connection with. Since assuming his current duties at Sagicor, Catmull has helped the company to buck this trend and truly help those claimants navigate through the insurance industry by utilizing a personalized approach. At Sagicor, that begins with understanding why they do what they do. “Everybody that we talk with is somebody’s friend or family member,” Catmull says. “It’s in the company’s DNA, and that’s what I wanted to instill in all our employees.” As president and COO, Catmull circulates monthly messages to his employees reinforcing Sagicor’s goals and values. More importantly, he says, “I have to live and breathe it.” And he does—spending most of his time being an advocate for the company, talking to employees, and setting an example. He believes what when Sagicor’s employees view their clients as family, friends, and neighbors, they can personalize their services and provide better assistance that aligns with their mission of helping people. “The other day, one of our managers was dealing with a policyholder who had an issue, and he was really frazzled and clearly going through a lot,” Catmull says. “Normally company policy is to not accept faxed signatures, but based on this particular individual’s situation, we allowed it.” Catmull is obviously aware that Sagicor cannot always afford to make exceptions such as this, especially with increased legal regulations throughout the industry. Yet, he recognizes that each day employees are presented with a choice: do they place their emphasis on how they can maximize profits, or on how they treat their customers? This occurs at every level of the business, he says, from product development and

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pricing, to accountBart Catmull ing and customer ser vice. Within President, COO the confines of the Sagicor Life law and responsiInsurance ble judgment, he Company e n c o u ra ge s t h e Tampa, FL latter—a type of personalized care and service that he hopes can permeate every facet of Sagicor’s operations. And permeate it has. Not only do Sagicor employees strive to make a positive difference in the lives of their claimants, but they do so for the greater community as well. By getting involved in service efforts, like at the local children’s hospital, they hope to reach as many of their neighbors as they can. “We’re trying to bless the lives of the people in our communities, not just with our service, but with how our employees act,” Catmull says. As president and COO, Catmull leads by example and sees it as his responsibility to ensure that Sagicor accomplishes its personalized mission. “On a daily basis I meet with employees, independent agents, decision makers within the community—civic leaders and corporate leaders—to make sure everything we do is in line with our goal of helping family, friends, and neighbors,” he says. This approach to life insurance, Catmull believes, is beneficial to Sagicor’s operations as well. Already having grown from being valued at $500 million in assets to its current $1.2 billion, Sagicor is expected to double its value over the next five years. In 2014, this growth helped the company implement an automated underwriting life insurance policy and develop products around this platform that take advantage of today’s technological capabilities. Since then, Sagicor has developed three products and expects to roll out two more by next year.

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CONGRATS BART CATMULL OF


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Kim Turner Chief Audit Executive Texas Tech University System Artie Limmer

Lubbock, TX

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The Great In-House Detective Kim Turner’s audit team combs through the complex accounts of the Texas Tech University System with a magnifying glass to eliminate the threat of fraud By D AV I D B A E Z

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CBIZ Risk & Advisory Services is Proud to Serve

Texas Tech University

B

Brilliant folks are found in the Texas Tech University System—professors across every conceivable discipline; doctoral candidates laboring over dissertations that break new ground in their field; ambitious research fellows forging new paradigms in thought; and chief audit executive Kim Turner. Not only does Turner’s work find her ensuring compliance in every area of the university system—from the medical school to engineering to athletics and all points between—it also leads her to learn about white-collar crime that would go undetected without the efforts of her team. Turner grew up in the cotton fields of Lubbock, Texas, near where her husband also grew up. They were both accounting majors, finding work in public accounting with Ernst and Young in Dallas, Texas, where together they began their family. Once their first child, a daughter, was born, they decided that they wanted to move back to West Texas, so that the kids would grow up around their grandparents. During a trip back home to introduce their infant daughter to loved ones, Turner mentioned to a friend that she and her husband were mulling over a return to Lubbock. That soon got into the ear of the chief financial officer of the company the friend worked for, Furr’s Cafeterias, and a month later Turner was hired to build an internal audit department for the company from scratch. Turner had been working at Furr’s Cafeterias for about four years when her mother told her about the opening at Texas Tech. She applied, and got it. Years later, the woman who hired her confessed that she granted the interview initially as a courtesy to her mother, not imagining she would hire her, but that Turner beat the competition. “I felt very fortunate to get the job,” she says. It’s a big job, and Turner has proven more than capable of tackling its challenges head on. The Texas Tech University System includes two general academic universities (Texas Tech and Angelo State) and two health sciences center universities, all of which fall under Turner’s purview. That means that one day she might be observing scientists in the school of engineering blasting two-by-four planks out of a cannon into brick walls as a part of tornado research. Then she could be looking at the safety of the chemistry department’s research practices into the effects of infectious agents on the human body, and the

We congratulate Kimberly Turner, Chief Audit Executive, on her accomplishments.

CBIZ Risk & Advisory Services 866.956.1983 RASinfo@cbiz.com www.cbiz.com/RAS © Copyright 2015. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved.

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WHAT IS WHITECOLLAR CRIME? Edwin Sutherland first used the phrase “whitecollar crime” during his 1939 speech to the American Sociological Society. Today, the term involves nonviolent crimes committed in commercial situations for financial gain. The Association of Certified Fraud Examiners categorizes white-collar crime into three types: Financial Statement Fraud Public and private companies can commit financial statement fraud when they deliberately misrepresent or omit financial statement data to create a false impression of an organization’s financial strength, often to justify bank approvals, bonuses, or to meet shareholder expectations. Corruption Corruption is the misuse of entrusted power for private gain, such as embezzlement, nepotism, bribery, extortion, etc. Corruption schemes make up 37 percent of the reported fraud cases, with a median loss of $200,000, according to the 2014 Report to the Nations on Occupational Fraud and Abuse. Misappropriation of Funds A scheme in which an employee steals or misuses the organization’s resources, such as theft of company cash, false billing schemes, or inflated expense reports.


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denison “We want to address the most significant risks, so we need to be well-versed in strategic planning, where the universities are going, and what could threaten the direction of the universities.” K I M TU R N E R

following day ensuring that a sports team is compliant with National Collegiate Athletic Association regulations. “I’ve worked here eighteen years, and I still learn things all the time,” Turner says. “Different processes, federal or state regulations. And things are always changing in higher education. I tell people that the Texas Tech University System is a more complex business than most corporations. I love working here.” Turner’s office has auditors at each of the four universities, a team of sixteen. All of them report to her and the Board of Regents rather than to the presidents of the respective schools to ensure independence. Even the chancellor’s office is audited on a regular basis. Every year, Turner’s office creates an audit plan that lays out the work they will do over the following twelve months, which is then approved by the Board of Regents. “We want to address the most significant risks, so we need to be well-versed in strategic planning, where the universities are going, and what could threaten the direction of the universities,” Turner says. In addition to the strategic auditing plan, Turner sets aside a portion of audit hours for fraud investigations. Her office runs a hotline that employees can call if they suspect fraud. Turner says that the line receives one or two anonymous calls concerning fraud every month. The Association of Certified Fraud Examiners breaks down white-collar crime into three categories: financial statement fraud, corruption, and misappropriation of funds. Financial statement fraud is not a danger in

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a public university system because there are no stockholders to answer to, but the other two kinds do happen—from blatant theft of cash to buying personal items with university funds—more often than Turner would like. Recently Turner’s office investigated an employee who had bought $500,000 worth of goods with university funds and then sold it on Amazon and eBay. A routine review by management led them to discover that another employee in charge of buying nutritional supplements for the athletic department actually owned the company they were buying the supplements from. “It makes me angry when I see fraud,” Turner says. “But at the same time I’m glad we found it, or that someone brought it to our attention.” The chief audit executive says that while her department is always on the lookout for noncompliance and criminal activity, she tries hard to maintain good relationships with all the departments and the people she works with. “We report positive things as well,” Turner says. “We are not ‘gotcha’ auditors. That just breaks down relationships. Our role is to help the system and the universities to leave them better off than when we found them.”

CBIZ proudly supports Kimberly Turner and Texas Tech University. CBIZ is a national, top ten accounting and professional services provider, serving clients in the public, private, and social sectors. Our Risk Advisory specialists offer consulting services, including construction cost reviews, internal audit sourcing, regulatory compliance, and IT and cybersecurity services.

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BRINGING ORGANIZATIONAL CULTURE AND LEADERSHIP TO THE BOTTOM LINE DenisonConsulting.com +1 (734) 302-4002 +41 71 911 3406


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Technology Is Now the Fabric of Business Sandy Jacolow jumped into technology as an accountant in the 1980s, and now he’s chief information officer for Silverstein Properties at a time when digital communications is essential to how people and buildings operate

By R U S S K L E T T K E

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Sandy Jacolow has seen many transformations in his job as chief information officer for Silverstein Properties. Consider what’s happened in the rebuilding of Lower Manhattan since 9/11 and how communications technologies and social media are changing the real estate industry. To master transformative events, Jacolow had a prescient sense of what communications technologies can accomplish. Yet how Jacolow relates to his now-adult daughters might be the best summary of the phenomenon. “We are constantly sharing ideas about social media,” he says. “It’s like I’m Peter Pan.” To explain this, Jacolow references the book Corner Office by Adam Bryant (St. Martin’s Griffin, 2012), which examines “passionate curiosity” in leading business executives. Communication technologies have been essential in Jacolow’s climb from being a finance and accounting major at Baruch

College through various components of the real estate industry: due diligence, leasing, finance, etc. His early interest in DEC computers migrated to the Apple II, which in the 1980s positioned him as a go-to guy in technology. Jacolow always envisioned how tech could make things work better and be more fun, and the role of technology in business is what has changed the most over the last three decades or so, according to the chief information officer. “It used to be that computers and technology supported the business,” he says. “It was a helper, but now technology is the fabric of what we do.” Silverstein Properties is a well-recognized, privately held, full-service real estate development, investment, and management firm in New York City. It includes eight premier commercial structures, including World Trade Centers 2, 3, 4, and 7, as well as four residential towers plus two hotels in New York


Daryl Lang / Shutterstock.com

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Silverstein Properties was founded in 1957 by president and chairman Larry Silverstein.

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City and a third in Orlando, Florida. The ways in which CIO technologies help Silverstein manage, lease, and Properties even design those New York, NY buildings is extensive and impressive. In some of the newest structures, a visitor will receive a smart-card pass from the security desk that admits him or her through a turnstile and on to a specific elevator. Once on that elevator, there is no need to find and push a button— the elevator knows where that person is going. Taking that a step further in the near future, advertising or news programming on an elevator screen will be tailored to the interests of the passenger. It might be based on what interests the guest based on data passively supplied from his or her smartphone via a Wi-Fi system. (This pull of information from cell phones is a common practice in retail settings since at least 2013.) “It’s the convergence of social media, mobility, big data, and the cloud,” Jacolow explains. “We’re bringing these four things together in all kinds of ways in real estate.” The physical management of buildings offers another example. “Mobile devices like iPads have replaced screwdrivers as standard equipment,” Jacolow says. “We are in the era of the Internet of things. Every light, every thermostat, every thing sends information back to building systems.” Jacolow is effusive about what information technologies has done to fundamentally change how the company’s properties are marketed in both the commercial and residential segments. He works with YouTube, Facebook, Twitter, and other platforms to deliver messages about what each property has, where it is, and what it can mean for prospective tenants. Existing tenants are given smartphone apps to aid them in accessing building services. Each of these digital tools helps build the company or property brand. “It’s all about lead generation to ultimately drive occupancy and revenues,” Jacolow says. “We’ve really become two degrees of separation from everybody. Current tenants, clients, partners, vendors, and employees are all connected. Sandy Jacolow

Sandy Jacolow joined Silverstein Properties in 2011 and has been active in the real estate industry for about thirty years.

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You never know where your next lead will come from. They’ll say, ‘I saw you on YouTube six months ago.’ Every post defines our brand and reputation.” Leasing agents additionally benefit from communications technologies when it shortcuts their administrative work and time in the office—enabling those agents to spend more time in direct interaction with people. Jacolow explains that they can meet with prospective tenants at a property, but field more information face to face that then enables them to preview other properties via a tablet, all in one appointment. In follow-ups, Jacolow adds that the agent can send e-mails and even contracts back to the prospect, as well as feed customer information into a Salesforce program that tracks individuals as well as patterns and trends while mobile. Some of this information becomes useful to designers of future properties. Building and managing best-in-class structures is almost a calling to Jacolow, who is a native New Yorker. He readily discusses the Silverstein Properties’ work on rebuilding the World Trade Center properties. The firm acquired the master lease on the WTC Twin Towers less than two months before the 9/11 attacks, and it has since achieved rights to rebuild several of the surrounding buildings (the New York-New Jersey Port Authority holds ownership of the new World Trade Center 1). “When you talk about the World Trade Center and hear the stories about how it changed people, you begin to understand how this is a labor of love,” Jacolow says. “We’re on a world stage. My office overlooks ground zero. There’s no place like it in the world. The rebuilding of lower Manhattan is a synonymous with the rebirth of New York City.” Those newer structures are green, several of which have achieved LEED-Gold certification with features such using fuel-cell power generation, harvesting rainwater off buildings for use in air conditioning system chillers, and cladding in heat-reflective glass. But again, Jacolow notes that it is the building information systems that do a lot of the heavy lifting. “Building monitoring systems are much smarter, with every device networked to provide continual feedback,” Jacolow says.


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Global Property And Investment Management Solutions. “Current tenants, clients, partners, vendors, and employees are all connected. You never know where your next lead will come from. They’ll say, ‘I saw you on YouTube six months ago.’ Every post defines our brand and reputation.”

Real estate industry leader and influencer, Silverstein Properties, trusts MRI Software to manage their portfolio of iconic properties. Learn why.

SAN DY JAC O LO W

mrisoftware.com

“When building managers get information in real time they can immediately tweak whatever needs to be fixed.” The chief information officer references a telephone company tagline from about thirty years ago, “We’re all connected.” Yet, from his perspective at Silverstein Properties he sees how those same words apply to the twenty-first century. Connectedness is often embodied in the physical world such as in Silverstein Properties’ buildings and digital tools. Jacolow knows that such technology will continue to transform, but he’ll be right there to implement each evolution to its best advantage.

Facility Management Software for the World’s Most Recognized Buildings, Hospitals & Stadiums Learn more about AwareManager today

AwareManager provides facility management solutions for the world’s most recognized buildings, hospitals, and sports franchises, including the World Trade Center. AwareManager’s industry expertise, combined with its proven technology, enable its clients to deliver the best guest, employee, and tenant experiences possible.

617.542.8555 www.awaremanager.com ©2015 MRI Software LLC. All rights reserved.

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The Need for Speed in Driving Development Bringing faster, affordable communication to all people, chief technology officer Ayush Sharma is pushing his networking teams to help Huawei win By Z A C H B A L I VA

Like most young boys, Ayush Sharma developed a passion for movies and comic books. In his adolescence—which was split between India and Canada— Sharma spent many hours flipping the pages of the latest Marvel and DC titles and taking in movies like Star Wars and Bladerunner. They sparked his imagination, and soon, the budding engineer was using his uncle’s walkie-talkie as an imaginary teleportation device and dismantling gadgets to learn and reassemble their complex circuitry. His interests took Sharma to three universities in three different countries (India, England, and the United States), where he studied electronics, data communications, and program management. Throughout those years, he maintained the lifelong curiosity and imagination nurtured in his childhood and developed a habit of naming his routers after Jedi and Wookiees. Today, after starting his career with major telecom companies like Cisco Systems and Ericsson, Sharma is senior vice president and chief technology officer for Huawei’s networking business unit. With $46 billion in revenue and 170,000 employees, Huawei has become the world’s largest provider of telecommunications equipment.

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While growth and revenue are key, Sharma says he and his colleagues are deeply committed to Huawei’s vision of “enriching lives through communication,” and improving Internet access and affordability. They do so by maintaining an intense focus on research and innovation. The goal is an important one with significant impact— Huawei has already connected more than one-third of the world’s total population. Overall, Huawei’s global services span three segments, including telecom carriers, businesses, and consumers. In 2015, the company scored a major win and strengthened its US handset business when Google announced it would switch to Huawei’s Nexus Ayush Sharma smartphone. As networking SVP Networks, CTO CTO, Sharma has one foot in the busiHuawei/ Futurewei ness world and the Technologies other in technology—and both areas Santa Clara, CA are connected.

Figuring out how technology works has been Ayush Sharma’s passion since childhood.


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“I have to find new opportunities to innovate, and I manage all the aspects of design, architecture, research, and open source,” he explains. “It’s my job to build the atmosphere where our teams can develop the killer apps and design prototypes that we’ll implement in the field two or three years from now.” Sharma is always thinking about customers and partners. “We’re dedicated to connecting people and technology, and we’re always working on new ideas for every aspect of the business,” he says. The pursuit for innovative ideas leads Huawei to invest 20 percent of its US revenue into research and development each year. In recent years, that figure has eclipsed $135 million split between projects in sixteen research centers. Most recently, Sharma and his teams have dedicated their time to forecasting the evolution of video. “4K video is here, but it’s not commercialized yet,” he says, adding that virtual reality will open more doors, drive interactions, and change how content providers distribute video content on mobile and communications devices. Huawei is partnering with companies, universities, and Internet organizations to determine the best ways to handle increased traffic while enriching the experience for the customer. The company is also investigating options for advertisers who will want to knit together messaging and online shopping options with the overall video experience. Additionally, Huawei is seeking new uses for large networks after major events. For example, once the Olympic Games or the Super Bowl leaves a city and/or stadium, Huawei can repurpose idle networks and leverage those resources for continued benefits. It’s all part of what Sharma describes as Huawei’s drive to “develop Internet access, affordability, and relevance,” and his networking team has a chance to define the future of a significant multinational corporation. His team has developed products leading to Wi-Fi calling and other innovations that have affected Huawei’s trajectory. “It’s satisfying for those on my team to touch and feel their work,” he says. In 2016, 1.5 billion people still lack basic Internet access, according to Sharma. For others, low speeds make connectivity prohibitive. By deploying new networking technologies, Huawei is delivering 5G Internet at speeds up to ten times faster than ever before. With telehealth and other advancements coming, Sharma says Huawei’s developments are critical. “Nothing is better than seeing how our products and solutions improve

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society by connecting isolated people or making the Internet affordable,” he adds. Sharma describes Huawei’s culture as empowering and collaborative, and he personally believes in clarity, accountability, and focus. In implementing these standards, Sharma focuses on what he calls the “three Hs,” meaning honesty, hard work, and the hive mind. “Integrity is paramount—there are no short cuts. And innovation is groupdriven, there’s no place for ego,” he says. This year at Huawei, Sharma and his team are developing and building new products, solutions, and features to bring open source adoptions into the networking industry, driving innovation and increasing the pace of development.

“Ayush has been an important champion of the open source SDN and NFV movement. He has been an invaluable partner in the open source ONOS (Open Network OS) and CORD (Central Office Re-architected as a Datacenter) journey for me personally and for the community as a whole. I look forward to working with him and Huawei as we continue this journey and transform the network infrastructure industry with open source networking.” —Guru Parulkar, Exec Director, ON.Lab; Board Member, ONOS Project The Open Networking Foundation (ONF) is a nonprofit organization with a mission to accelerate the adoption of open Software-Defined Networking (SDN). ONF promotes open SDN, OpenFlow technologies and standards, and open source software development, working closely with trusted partners around the globe. Learn more at http:// www.opennetworking.org.

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Waste Not, Want Not Greg Sarich uses efficiency to foster innovation, toiling night and day to make Texans’ utilities more efficient at CPS Energy By S A R A H K O L L M O R G E N

G

Greg Sarich begins each day at 6:30 a.m. By 8 a.m., he has had his daily operations call with his executive team. The rest of the day, Sarich will be running from project to meeting to speaking event or interview. Often, he’s double booked. It’s not until 7 p.m., that he will finally head home from the day’s work at the largest municipal electric and gas utility in the United States. As senior vice president of enterprise support and chief information officer of CPS Energy, Sarich has a lot on his plate. He calls it a 24-7 job. The San Antonio, Texas-based company was founded in 1858 and provides electric and natural gas to more than one million customers in Bexar County, which surrounds the San Antonio region. At CPS Energy, where Sarich heads IT strategy and corporate support services, the New Energy Economy initiative promotes innovation and economic development through fostering clean energy sources and energy efficiency tools. Sarich also oversees security functions at CPS Energy, which includes physical and cyber security. You can bet, if anything, that Sarich’s long days at the office are long but incredibly efficient: one

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of his main goals at CPS Energy is to drive business and innovation through automation and efficiency. “I was always interested in gadgets and techy things,” Sarich says. In high school, Sarich participated in a technology program that he says sparked his passion for tech, ultimately leading him to his current role at CPS Energy. “I always thought, whatever happens, if you know something about technology you’ll have a good place in the future,” he explains. After graduating from Amberton University with a degree in human relations and business, Sarich took a job at Electronic Data Systems (EDS), an information technology services company. From there, Sarich held a series of positions at EDS and Hewlett

Greg Sarich SVP of Enterprise Support, CIO CPS Energy San Antonio, TX

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We are the light. The cool. The toasty warmth. We are the past, the right now, and

what will be. We are your neighbors, your co-workers, your friends and your family.

We are dreamers and doers, builders and believers. We are the power that empowers.

We are CPS Energy. Technology, innovation, leadership and a 100% commitment to our customers drive us to be one of the very best energy providers in the country.

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Packard, where he learned about technology leadership, marketing, sales, and business development. As these jobs took him across the tech field, they also took him across the United States: he worked in Detroit, Harrisburg, New Orleans—and even Australia. “All those different opportunities gave me a different perspective on business, technology, and customers,” Sarich says. In 2009, Sarich shook things up with a job at TXU Energy as vice president of information technology. Continuing his work in the energy industry, Sarich began working at CPS Energy in 2013. Sarich says the aim of his automation and efficiency initiatives are to ultimately improve customer value. Creating a company that works more efficiently improves your speed to market and drives down costs, but most importantly, it benefits the customer, according to the senior vice president and chief information officer. One of CPS Energy’s biggest efficiency initiatives so far has been its grid optimization project, part of which utilizes automated meter infrastructure. In other words, CPS Energy is working to digitize consumers’ energy information. About eighteen months ago, CPS Energy began installing digital meters on the sides of its customers’ homes. These meters, unlike traditional meters, take readings in fifteen-minute intervals, allowing both consumers and CPS Energy to monitor how energy is being used during the day, week, month, and year. Sarich estimates the project will be finished around 2018. “We’re already seeing the impact,” Sarich says. “In some cases, we’re offering data and information to our customers in real time.” Automated meters will allow CPS Energy customers to compare their energy consumption over time and to their community, and adjust as they see fit. The information gleaned from these meters will help CPS Energy, too, Sarich adds, by developing more accurate billing, lowering costs, and allowing the company to redeploy employees and resources to other areas.

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“Everything we do should impact the consumer in some way, and allow them to make decisions.” G R E G SA R I C H

Using automated meters is not the first time the company has used technology to make customers’ lives easier. Under Sarich’s guidance, CPS Energy launched new web and mobile apps that provide CPS Energy customers with easy access to energy and billing information. For Sarich, pushing forward automation and efficiency initiatives, such as the smart meters, also opens the door for innovation. Sarich advises anyone in the tech industry, especially those early in their career, to embrace disruptive technologies and find new ways they can create value for your company.

At CPS Energy, this means integrating renewable energy into its business. “We’re actively engaged in renewables, and in some cases, I think we’re leading the pack,” Sarich says. Most recently, CPS Energy has unveiled new solar offerings. By 2020, Sarich predicts the company will be the leader in the municipal space for solar. However, every decision the company makes and every new product it rolls out must be based on one thing, Sarich says: “Everything we do should impact the consumer in some way, and allow them to make decisions.”

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P E O P L E + C O M PA N I E S

A

F

S

Accretive Health 126 Adkisson, Jonathan 59 Amica Mutual Insurance 142 Avis Budget 56

FairPoint Communications 173 Fannie Mae 156 Feehan, John 25 FireEye 36 Floyd, Tammy 49

Sagicor Life Insurance Company 206 Salvo, Joe 133 SAP 44 Santander Consumer USA 87 Sarich, Greg 218 Schuermann, Mark 34 Scripps Networks Interactive 34 Schult, Bill 100 Schwartz, David 152 Seattle Genetics 118 Seay, J. Gary 17 See, Jonathan 203 Sesame Workshop 133 Sharma, Ayush 216 Silverstein Properties 212 Styer, Paul 14 Suglia, Robert 142

B Barron, Bob 80 Bazemore, Teresa Bryce 10 Bayer US 190 Bebe Stores 64 Bozell 187 Brooks, Brian 156 Brookshire Grocery Company 184 Burns, Eldridge 87

G Gehring, Dean Gray, Diedre

178 138

H&R Block 176 Hasbro 28 Hardeman, Troy 40 Heartland Dental 130 Hecker, David 166 Hope, Allie 68 Huawei/Futurewei Technologies 216

I Imerys 120

J Jacolow, Sandy Jamba Juice Post debuted Grape Nuts in the 1800s and the brand still grows today.

138

Cabot Oil & Gas 146 Calpine Corporation 23 Caldera, Dick 190 Catmull, Bart 206 Cengage Learning 76 Ceannate Corporation 40 CIBC 113 Community Health Systems 17 Copart 14 Cordero, David 72 Coyne, Michael 106 CPS Energy 218 Crowther, David 56 Cullivan, Julie 36 Cunningham, Kevin 146

D Debrabandere, Lode Dixon, Terrence

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212 52

K Kiewit Corp.

166

L

C

98 184

Stirling Moss, pictured with a Maserati 250F in 1954.

H

LaCroix, Steve Lieb, Michelle Liu, Jean Loessin, Layne Lunny, John

92 198 118 84 173

72

M M., Sethu 44 Madsen, Tom 52 Maserati North America 72 Mickelsen, Kim 187 Minnesota Vikings 92 Moore, George 76 MUFG 106 Mutual of Enumclaw 181

N NFP 161

O Osiris Therapeutics

98

P Pantazis, John 130 Patriot Media Consulting 25 Pedernales Electric Cooperative 62 Pepper Construction 198 Pepperdine University 203 Peterson, Stacey 23 Parnell, Lawanda 62 Post Holdings 138 Pro Mach 100 Perry, Achilles 113

Radian Guaranty Rio Tinto Minerals Robb, Tim

10

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T Texas Tech University System 208 Toys“R�Us 152 Turner, Kim 208 Trueb, Martin 28 Twentieth Century Fox 80

V

R

Teresa Bryce Bazemore is GC-turned-president at Radian Guaranty.

Silverstein Properties leads in technologically advanced buildings.

10 178 161

Valero Energy Van Meter, Ryan Virgin Hotels

49 120 68

W Wilkins, Aileen Wilson, Dave Woo, Liyuan

E

Z

Entrust Energy 84 Esurance 59

Zaccardo, Daniel

176 181 64

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ADVE RTI S E R S

A

J

A2C IT Consulting 78 Accenture 174 Agile Solutions 47 AHT Insurance 102 AlixPartners 160 Alliant 201 Alorica 58 Alston & Bird 15, 125, 172 Aon Risk Solutions 33 Aramark 94 athenahealth 20 AwareManager 215

Jamba Juice Jones Day

B BakerHostetler 86 BDO 27 Blank Rome LLP 155 Blue Chip Tek 39 Bozell 188

C Calpine Corporation 24 Cerner 21 Citizens Capital Markets 75 CIBZ Risk & Advisory Services 210 Competentum 78 Concentric Sky 77 CPS Energy 220

D Davis Wright Tremaine LLP 136 Dinsmore & Shohl LLP 35 Deloitte 50, 66, 83 Denison 211 Dentons 116, 124 D.F. King 51 Drinker Biddle 144

E Entertainment Partners 82 Express Employment Professionals 186

F

K K&L Gates 12 Kepner-Tregoe 180 Kirkland & Ellis 129 Kilpatrick Townsend 170 Korn Ferry Futurestep 194

Gordon & Rees 124 Greenberg Traurig, LLP 163 Guidewire 182

H Hasbro 32 Haynes and Boone, LLP 15 Hunton & Williams LLP 154

Lasalle Solutions 42 Lehrman Law Group 75 Leo Burnett 60 Lewis Rice 140 Lyons 54

M M2 Dynamics 51 Mainline Information Systems 22 Mayer Brown 89, 114 McGlinchey Stafford 91 McGuireWoods LLP 123 MEDHOST 18 Mercer 177 Minnesota Vikings 97 Moye, O’Brien, Pickert & Dillon, LLP 169 MPX 175 MRI Software 215 MUFG 32

N Neal Gerber Eisenberg 122 NFP 164 NetApp 38 Nixon Peabody 144 Norton Rose Fulbright 150

Tampa Bay Lightning 207 TargetX.com LLC 205 Telvista 57 The Executives’ Club of Chicago 202 The John Buck Company 71 Thompson Hine 101 Toronto Maple Leafs 58

V Vaco Healthcare 19 Van Wagner Sports & Entertainment 96 Vanguard 192 Venable, LLP 159 Vertafore 137

W Wachtell, Lipton, Rosen & Katz Watt, Tieder, Hoffar & Fitzgerald L.L.P Wipro Limited

91 172 48

X Xoriant 46

O Ogletree Deakins 131 ONLab 217 Open Networking Foundation 217 Orrick 111

P Patterson, Belknap, Webb & Tyler LLP 135 Paul, Weiss, Rifkind, Wharton & Garrison LLP 109 Peckar & Abramson, P.C. 168 Pierce & O’Neill, LLP 149 Presidio 182 Proskauer Rose LLP 112

Q

I

QA InfoTech

Impulse Advanced Communications 90

R Reed Smith Riddell Williams

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Scotiabank 30 Sidley Austin LLP 117 Smartsoft 48 Sorman & Frankel, LTD 91 Starkweather & Shepley Insurance Brokerage, Inc. 31 Sullivan & Cromwell LLP 110 SunTrust Robinson Humphrey 27

T

L

fit2market 99

G

YOU’VE CLIMBED THE RANKS BUILT A NETWORK IMPRESSED YOUR CLIENTS LED YOUR TEAM FILLED A NICHE REDEFINED THE ROLE

S 54 171

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Profile is created and published in Chicago, IL. It is printed by MCRL Overseas Printing.

Isn’t it time you shared your story?

Size

8.5” x 10.8125” Stock

Cover: 250 gsm glossy art Text: 100 gsm Snowy Beauty uncoated Typography

90 119

For editorial consideration, contact info@profilemagazine.com

Periodico by Emtype Foundry Akzidenz-Grotesk by Berthold

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What We Learned This Issue

WHAT’S IN MY BEER? Diatomaceous earth is a substance made up of the fossilized silica shells of diatoms, hard-shelled algae whose largest marine reserves are found in California.

CELEBRATE GOOD TIMES, COME ON!

In addition to industrial uses, diatomaceous earth is used in swimming pool filters, as a natural pest control, and surprisingly, to filter beer.

Tom Madsen says Jamba Juice’s name was inspired by the Swahili word “jama,” which means “celebration.” The brand was originally called Juice Club when it launched twenty-six years ago.

“This silicate secreted for millions of years filters almost all the beer you consume,” Ryan Van Meter says. Van Meter is general counsel of Imerys, the multibilliondollar, multinational minerals company that mines materials like diatomaceous earth for consumable goods and high-tech applications.

Page 52

“Each production is unique, and each show has its own needs that don’t really exist in any other industry.” B O B BA R R O N

EVP, CFO at Twentieth Century Fox on how chief financial officers in the television industry must remain flexible. Page 80

THERE’S MUCH MORE TO BAYER THAN ASPIRIN Bayer’s Dick Caldera reveals that the life sciences company is also a leading innovator in the fields of crop science, animal health, and more. Page 190

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Beer: Boule /Shutterstock; Caldera: Sheila Barabad; Emoji: Twitter

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How and Why

“The more efficient you are as a CTO, the more problems you solve.” SESAME STREET + WORLD VISION Sesame Workshop has partnered with World Vision to help protect children from sickness due to poor sanitation and dirty water with the WASH UP! kits. The partnership focuses on rural communities in Southeast Asia and Southern Africa, where World Vision has already established long-term relationships with hundreds of communities. WASH UP! kits contain video and print content that empower children and adults to take important measures toward improved health. Raya is a new Sesame Street friend who is helping with World Vision’s mission to help children in remote regions develop and maintain healthy hygiene habits, especially related to handwashing and drinking water. Page 133

GEORGE MOORE teaches us the difference between a CIO and a CTO—and why a company needs both to remain competitive. Page 76

Th ir in teen a for new gen era bu k l sin ind ess of le coun is a ga sel s p l th bala PH ara ink n OT OG mo ing, ce p RA PH e un w Y BY t a here rspe CA c LE s le B FO ga a min tives X l ex pe d rtis e

Le gal v. B usi ne ss?

Profile’s creative team details the concept and process behind executing the general counsel feature (pp. 104–164).

Managing Editor Jennifer Draper: We’ve talked with so many general counsel who speak of their efforts to break down any barriers in conversation with business leaders—to be seen as willing partners to the strategy rather than a department of closed doors. We at Profile wanted to take that dialogue a step further, to offer a platform for these exemplary general counsel at Imerys, Amica, Post Holdings, and Cabot Oil & Gas, to exchange ideas with their peers about what it means to be both a legal and business leader. Editorial Director Cyndi Fecher: We wanted to peel back the layers and have the general counsel in this section actually speak to one another. In lieu of a guest editor, we turned to the experts themselves to question one another about their profession and facilitated a conversation, which is printed throughout the feature section. Senior Designer Holly Leach: That duality Jennifer mentioned—the balance between being a businessperson and a legal professional—drove the section’s visuals. We drew inspiration from office architecture, paperwork, and even the notes law students make in their textbooks. We discovered a lovely—and similarly layered—juxtaposition in the rigid structure of legal ephemera with the organic nature of leadership. Photo Director Caleb Fox: So we thought, why not take that duality one step further, and we applied it to our photographic approach. We created a geometric, almost scientific, organization of materials—soft-colored paper, manila envelopes, gold paper clips. We then dropped portraits printed on sketch paper into our composition, revealing the human hand behind the work. There’s something beautiful and real about the chaotic and the orderly existing together. Draper: The impact of how we illustrated their conversations points to the split perspectives at play within their roles—strict adherence to the law and the collaborative nature of leadership—and underscores the need for general counsel to balance both as guardians of business.

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A Peek Behind the Curtain Managing Editor Jennifer Draper interviewed Dick Caldera, senior vice president of human resources of Bayer US, at Profile’s publishing house in Chicago. Caldera likens his job to that of a maestro, who must coordinate talent acquisition and development to positively impact the company.

Shelia Barabad

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An executive without a network is only an employee.


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