LEADERS Magazine January, February, March 2019 Volume 41, Number 1

January, February, March 2019

Volume 42 Number 1

WOMEN LEADERS WESTERN & SOUTHERN’S BARRETT 56 HELPING BUSINESSES STAY IN BUSINESS 60

GRIER 10

CASE 14

A CENTENARY STORY OF C.V. STARR & CO. 64

HOSPITALITY 72 THE MARK OF THE MAKER 122 JAN DILENSCHNEIDER 124 MAHLAN 20

JOHNSON 22

NEALE 24

SAVIO 50

KASICH

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How can more women become architects of the digital world?

To close the gender gap and drive inclusive growth, this transformative age needs more women to become shapers of our digital future. ey.com/betterworkingworld #BetterQuestions

© 2018 EYGM Limited. All Rights Reserved. ED None.

“In crucial things, unity. In important things, diversity.

In all things, generosity.”

- George H. W. Bush, 41st President of the United States LEADERS Magazine is published quarterly and circulated to distinguished leaders of the world. Circulation is strictly limited. To receive LEADERS Magazine, one must be a leader of a nation, an international company, a world religion, an international institute of learning, or an international labor organization; or a chief financial officer, a major investor on behalf of labor or corporate pension funds, a chief information officer or a Nobel laureate. LEADERS Magazine was founded by Henry O. Dormann (1932-2018).

LEADERS Magazine Publisher and Executive Editor: David W. Schner Editor: Darrell J. Brown Vice President: Steven Jones Advertising Executive: Laurie McClure Ferber

On the Cover Kelly Grier, EY - 10 Jean Case, National Geographic Society and Case Foundation - 14

Printing: Calev Print Media – Solisco Printing – Printed in Canada

Deirdre Mahlan, Diageo North America - 20 Susan L. Johnson, The Hartford - 22 JoAnn Neale, Major League Soccer - 24 Kathleen Savio, Zurich North America- 50

Photo Credits: Cover and 24 - ©Greg Bartram/betterImage; 18 - ©Drew Altizer Photography 2018; 25 Special Olympics - ©Andy Mead/ MLS; 28 Helander - ©fotobina, 2017; 30 - ©Jason Torres; 32-36 - ©Matt Greenslade; 42 - ©The Cleveland Clinic Center for Medical Art & Photography ; 48 - ©Emmanuelle Choussy; 62 - ©Michael B. Lloyd; 66 - ©Graham Haber; 71 - ©serge.marteaux@gmail.com; 72 and 88 Z Bar - ©www.neiljohnburger.com; 72 and 92 Grand Staircase - ©dragonflyimagepartners 2017; 72 and 94 facade - ©Masahiko Takeda; 74 MBH - ©John Russo; 74 MDV - ©Blake Marvin / HKS, Inc.; 74 MLC - ©2018 Barbara Kraft; 76 Hotel Zachary - ©Dave Burk Photography LLC 2018; 76 - Hotel Viking - ©Ed Wonsek 2012 84 author - ©Lauren Lieberman/LILA PHOTO; 85 author - ©Michael Roberts; 85 lobby, clock - ©Bruce Buck 2014; 92 bedroom - ©Bruce Buck 2012; 94 author - ©Antoine Baralhe; 94 Eiffel Suite - Francis Amiand; 94 restaurant- ©Pierre Monetta; 96 aerial - ©Benjamin Edelstein; 96 Himalayan Salt Wall - ©Troy Campbell 2016; 100 lobby - © www.lukaspelech.com; Navy Pier - ©Don Riddle Images 2014; 104 author - ©Manolo Doreste; 106 author - Jacek A. Gancarz; property shots - ©2018 Kim Sargent; 109 author - ©Moris Moreno 2015

The Honorable John Kasich, Governor, State of Ohio- 54

LEADERS (ISSN 0163-3635) is published quarterly by LEADERS Magazine, Inc., 59 East 54th Street, New York, NY 10022; telephone: 212-758-0740; fax: 212-593-5194; www.leadersmag.com. Estate of Henry O. Dormann, Owner; Darrell J. Brown, Editor. Copyright ©2019 in the United States, Canada, and throughout the world by LEADERS Magazine, Inc. Published simultaneously in the United States and Canada. All rights reserved. It is strictly prohibited to store or reproduce material in this publication, in English or any other language, without permission. No subscriptions are available. Periodical postage paid at New York, NY, and additional mailing offices. POSTMASTER: Send address changes to LEADERS, 59 East 54th Street, New York, NY 10022.

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Since our inception, the Mount Sinai Health System has challenged the boundaries of medicine through groundbreaking research, which has led to improved methods of diagnosing and treating human disease. That’s why we are so proud to have been recognized by U.S. News & World Report, which named The Mount Sinai Hospital to the Honor Roll of Best Hospitals in America. The Mount Sinai Hospital is one of only a handful of hospitals on the U.S. News Honor Roll. Five of our specialties ranked among the top 20, validating our commitment to

innovation and improved outcomes, and our team approach to personalized patient care. We look forward to continuing our groundbreaking work and giving our patients the best possible care, particularly when they are at their worst.

1 - 8 0 0 - M D-SI N A I mountsinai.org

EVIDENTLY, THIS IS ONE OF THE BEST PLACES TO BE WHEN YOU ARE AT YOUR WORST.

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Contents INTERVIEWS

Helping Businesses Stay in Business Mark E. Watson III, Chief Executive Officer, Argo Group

A Trusted Advisor Gary Mandelblatt, Managing Partner, NextGen Strategic Advisors

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Building a Community Joe De Sena, Founder and Chief Executive Officer, Spartan

Real Estate and Homeowners’ Representation Spencer M. Sax, Founding Partner, Sachs Sax Caplan P.L.

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Long-Term Commitment Steven James, President and Chief Executive Officer, New York City, Douglas Elliman Real Estate

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Thailand’s Future The Honorable Dr. Issara Sereewatthanawut, Deputy Secretary General of the Democrat Party of Thailand, Honorary Consul and Head of Mission - Consulate of the Republic of Moldova to the Kingdom of Thailand, and Automobile Executive

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Successful Growth Through a World-Class Culture John F. Barrett, Chairman, President, and Chief Executive Officer, Western & Southern Financial Group

Effective claims response to severe weather events must begin long before the skies darken Paul Lavelle, Chief Claims Officer, Zurich North America

Building Resilience Steve Rosen, Co-CEO, Resilience Capital Partners

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The Mark of the Maker Rob Samuels, Global General Manager and Chief Distillery Officer, Maker’s Mark

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ADVISORY Jan Dilenschneider

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A Centenary Story of C.V. Starr & Co.

Shanghai, People’s Republic of China October 27, 2018

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Jamaica’s Potential The Honorable Audley Shaw, CD, MP, Minister of Industry, Commerce, Agriculture and Fisheries, Jamaica

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Investing in the Future The Honorable John Kasich, Governor, State of Ohio Reframing resilience for communities struggling with severe weather events Kathleen Savio, CEO of Zurich North America

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EDITORS’ CHOICE Wempe

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VOLUME 42, NUMBER 1

Thriving with a Common Purpose Kelly Grier, U.S. Chairman and Managing Partner and Americas Managing Partner, EY

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Be Fearless Jean Case, Chairman, National Geographic Society, and CEO, Case Foundation

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How a Learning Culture and Diversity Drive Business Success Jenny Dearborn, Executive Vice President, Human Resources, SAP

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Celebrating Life, Every Day, Everywhere Deirdre Mahlan, President, Diageo North America

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A Business Imperative Susan L. Johnson, Chief Diversity and Inclusion Officer, The Hartford

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MLS WORKS JoAnn Neale, Chief Administrative and Social Responsibility Officer, Major League Soccer

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A Bigger Purpose Shannon Schuyler, Principal, Chief Purpose Officer, Responsible Business Leader, PwC US and President, PwC Charitable Foundation, Inc.

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Human Capital Kara Helander, Managing Director and Chief Inclusion and Diversity Officer, The Carlyle Group, L.P.

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Risk Management Heather Mitchell, Partner, Managing Director and Global General Counsel - Investments, The Carlyle Group, L.P.

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Investing in China Ling Yang, Managing Director of Asia Buyout, The Carlyle Group, L.P.

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Secondary Transactions Sarah Schwarzschild, Head of Real Estate Secondaries and Managing Director of Metropolitan Real Estate, The Carlyle Group L.P.

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Putting the Patient at the Center Susan Green-Lorenzen, System Senior Vice President – Operations, Montefiore Health System

Culture and People Michele Cusack, Senior Vice President and Chief Financial Officer, Northwell Health

International Capabilities Gemma Atkinson, Chief Operating Officer, International Division, Active International

A Commitment to Culture Maxine Carrington, Deputy Chief HR Officer, Northwell Health

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A Commercial Innovation Company Lisa Brown, Global Chief Strategy and Chief Business Development Officer, Active International

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Legal Expertise Dayna Frank, General Counsel, Active International

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Agency Partnerships Bethany Harris, Executive Vice President, Agency Partnerships, Active International

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Ensuring Employee and Patient Safety Lorraine Chambers Lewis, Vice President of Employee Health Services (EHS), Northwell Health

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Women’s Health Stacey E. Rosen, MD, Vice President, Women’s Health Katz Institute for Women’s Health (KIWH), Northwell Health

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Leading with Innovation Peggy Kostial, Senior Managing Director, Southwest Region, Accenture

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Financial Planning and Analysis Lana Ilchenko, Senior Vice President of Global Financial Planning and Analysis, Active International

Cooperation, Compassion and Innovation K. Kelly Hancock, DNP, RN, NE-BC, Executive Chief Nursing Officer, Cleveland Clinic Health System, and Chief Nursing Officer, Cleveland Clinic Main Campus

Creating Leverage Melissa Keller, Executive Vice President, National Media, Active International

Health and Wellness Denise Faltischek, Executive Vice President & Chief Strategy Officer, Hain Celestial

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Operational Excellence Liz Margolis, Executive Vice President, Corporate Operations and Planning, Active International

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Social Good Through Business Kathy Raffa, CPA, Office Managing Partner, Washington, DC Metropolitan Area, Marcum LLP

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Media Capabilities Melissa Moschetti, Senior Vice President, Local & Unwired Media, and Senior Vice President and Managing Director, XACTV Network, Active International

Physician/Administrator Collaboration Paula E. Menkosky, Vice Chair of Administration, Mayo Clinic and Chief Administrative Officer, Mayo Clinic in Arizona and Christina Zorn, J.D., Vice Chair of Administration, Mayo Clinic and Chief Administrative Officer, Mayo Clinic in Florida

Travel Solutions Elizabeth A. Topazio, President and Chief Legal Officer, Active Travel

Marrying Architecture and Visual Effects Keely Colcleugh, Founder and Chief Executive Officer, Kilograph

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EST. 1870

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Thriving with a Common Purpose An Interview with Kelly Grier, U.S. Chairman and Managing Partner and Americas Managing Partner, EY EDITORS’ NOTE In December of 2017, Kelly Grier was named U.S. Chairman and Managing Partner and Americas Managing Partner, officially assuming the role in July 2018. She graduated with an a c counting degr ee fr om Saint Mary’s College of Notr e Dame.

She previously served as a member of the U.S. Department of Commerce’s National Advisory C o u n c i l o n Innovation and Entrepreneurship and was rec- Kelly Grier ognized by the World Economic Forum as a Young Global Leader. At EY, she has worked in Germany and Switzerland and was EY Americas Vice Chair of Talent, Managing Partner of the firm’s Chicago office and Region Managing Partner for the U.S. Central Region.

FIRM BRIEF The global EY organization (ey.com) is a leader in assurance, tax, transaction, and advisory services. In the Americas – EY’s largest area – member firms employ more than 75,000 people across 32 countries and generate $14.5 billion in revenues. Globally, EY member firms employ more than 270,000 people and generate $38.4 billion in revenues.

How do you define the EY difference and what makes this firm so special?

What makes EY special is the very rare combination of extraordinary talent that is devoted to a common purpose: building a better working world.

We have absolutely the best people in the business. We know that, and we’re very fortunate to be ranked as the number one most attractive employer by Universum, which means the students on campus vote for EY as number one among the professional service firms.

Therefore, we attract the best of the best.

When people join EY, they embrace our culture, which is all about teaming. It promotes belonging, inclusion, and bringing the collective and compounded benefit of all of those great strengths together toward a higher common purpose. This actually requires that they subordinate their personal ambitions to the team goals or client’s goals and then have faith that, in doing so, they will be successful on a personal level. This is a really unique aspect of our culture and it’s almost impossible to replicate.

10 LEADERS

In a world as dynamic as ours, where our clients are looking for solutions to extraordinarily complex problems, there isn’t a binary issue where we can plug and play any single capability or resource into.

We need a whole complement of competencies that we have to integrate together to create a solution that is responsive to our client needs, which are at an entirely different level of complexity than anything we have seen before. This makes our culture distinctive and it yields a differentiated product in the marketplace and a very different experience for EY. This is why everybody succeeds and grows in this environment. We support each other.

We’re focused on that collective ambition, and we underpin that with the development and apprenticeship piece of the model, which is very powerful.

I’m focused on protecting, nurturing and evolving our culture.

When you’re looking to hire the best talent, while the expertise, skills and education have to be there, is cultural fit as important and how do you make sure to maintain culture at EY’s size and scale?

It’s not just as important – it’s more important. We do have the benefit of being selective in whom we hire. Globally, only about 3 percent of the people who apply to EY every year get a job here. The number of applications significantly outweighs the number of positions we have available, so we can afford to be very selective.

The capabilities and skills of the best of the best are available to us, but the cultural fit is what creates the distinction. It’s the gating issue; the capabilities and experiences are table stakes in terms of even passing through the threshold through which we would consider interviewing someone and ultimately hiring them.

The hiring process is all about that cultural fit – and that applies not only to the people we recruit from campus, but it’s equally important to the people we bring in to fill experienced positions.

The cultural alignment is something we look at most carefully when we evaluate candidates.

How do we maintain that culture? With such a broad workforce – we have more than 270,000 people around the world and I’m specifically responsible for 75,000 of them across 32 countries – it’s about making an opportunity to bring everybody together and recommitting them to our culture and values.

We talk explicitly about what those expectations are and we create a sense of community and ask everyone to bring it back – bring back their experiences, bring back the learning, bring back the reengagement, and bring back the energy from the events we hold.

There is a lot of focus on reinforcing this through all of our messaging from the leadership level through to our engagement teams and everywhere in between.

Finally, we can’t be complacent. When we see circumstances of antithetical behavior or individuals who aren’t comporting with our values and culture, we have to take swift action, and we do. It’s probably the thing I’m most focused on and, obviously, it is a very weighty agenda.

I’m focused on protecting, nurturing and evolving our culture.

VOLUME 42, NUMBER 1

We need a whole complement of competencies that we have to integrate together to create a solution that is responsive to our client needs, which are at an entirely different level of complexity than anything we have seen before.

EY is a firm that has made a major commitment to diversity and inclusion in its workforce. When you start with a premise of hiring the best talent, does that, in itself, guarantee a certain level of diversity or do you need to have metrics and hiring practices that ensure EY reaches the targets it has established?

It requires both. If we are seeking the best talent in the market, we have to have a wide aperture – we have to be looking very holistically at the entire talent pool.

By definition, we are seeking talent from the broadest talent pool available because we concentrate on where the best talent is regardless of shape, size, gender, etc. First and foremost, the focus on bringing the best onboard and attracting the best, does cause us to have a very inclusive and diverse view of how we think about talent.

That being said, we also focus on accountability and ensuring that we don’t inadvertently take our eye off the ball and find ourselves with an imbalance in the talent we bring onboard.

We do continue to measure our effectiveness on every element of diversity and inclusion, including some of the quantitative aspects related to that.

As you assumed your new role, has it been important to internally communicate your vision and ambitions to your people before you focus externally, and how important was it to bring your people onboard and to have them understand your priorities?

It was paramount, and I was intentional in that. After the announcement was made about a year ago, I was contacted by a number of media sources that wanted to interview me and capture my vision. I refrained from participating in the vast majority of those interviews because it would not have been fair or appropriate to reveal my vision and ambitions for the firm publicly and have our people hear about it and try to interpret it based on an external source before they had been directly engaged by me.

For that reason, I’ve been a bit quiet on the media front, but very much by design as I have worked on the transition in stepping into this role.

I took our board through an extensive assessment of the business, the external market factors, some of our internal considerations and, VOLUME 42, NUMBER 1

collectively, we have emerged with the vision we will follow in taking the firm forward.

That has been released to our partners and our people. It was important to do it in that order and to explain the reasoning behind it, the judgments we have taken, the assumptions we have made, and the measures of success that we’re going to be tracking as we execute on this.

It’s important to engage within EY. I have been elected by our partners, and it’s an incredible honor and tribute to be selected by my own partners to serve as a leader.

However, servant leadership is fundamental to the partnership model – I know that I serve them and it is my responsibility to be faithful to that obligation in everything I do.

That includes engaging them in the strategy and, from there, having them activate that strategy with our people.

Where do you see the greatest opportunities for growth for EY?

It’s about how we can galvanize our organization around that sense of purpose in improving the lives and the communities of all of the EY family and stakeholders.

We are in a position of tremendous strength across all of our service offerings and business units.

That having been said, there are both threats and opportunities that are present within the current environment because of how dynamic it is and how disruption is a very real and present threat and opportunity.

We can’t be complacent – we have to stay on our toes and we have to think about how we need to evolve our service offerings to be responsive to what the market will need tomorrow, not just what it needs today.

We also have to think about how we modernize and continue to improve the way we deliver our existing services, including some of the traditional areas around audit and tax. This has been an area in which we have invested over the past number of years to create a highly innovative and very unique audit platform that is connected globally. This enables the digital audit in a way that hasn’t existed in the market and doesn’t exist outside of EY. That is a good analog for how we think about all of our businesses – the ability to bring innovation, the ability to disrupt our own business, to evolve and improve on our own product offerings, and also to create new offerings the market is demanding.

It’s not dissimilar from what I hear meeting with the CEOs of various clients. They have a very similar agenda – everyone is looking for what they need to do to optimize and improve their existing business while finding adjacencies in new offerings in this very disruptive and digitally transformative period.

That is what we’re doing as well, so not only do we have to stay on our toes, but we must keep our level of attentiveness to change, our appetite for change and our ability to process change at an all-time high.

When you envision the workforce of the future, will technology help enable employees to focus on other areas or will it change the numbers of those you need to do the work?

It’s going to do both of those things – it’s going to create a need for additional capabilities and people in certain aspects of our workforce, and it will obviate the need for people in other aspects of our work where we are automating things that are currently done by people.

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We can’t be complacent – we have to stay on our toes and we have to think about how we need to evolve our service offerings to be responsive to what the market will need tomorrow, not just what it needs today.

I don’t expect we’re going to see a contraction in our overall workforce because of technology, innovation and automation.

We’re already evolving our workforce to include a significantly greater number of data scientists – the vast majority of the people we’re hiring from campuses have a dual major or may have a minor in data analytics. This is across all of our service lines.

We’re hiring more engineers than we have ever hired before. This is more of a reshaping of the complements of our workforce as opposed to a reduction in force in any fashion.

If anything, we will need more people than fewer people, but the composition of the workforce will look different.

EY places a major focus around purpose and building a better working world and is very engaged in the communities in which it operates. Will you discuss how critical this has been to the firm and the firm’s vision around pursuing a higher purpose than just the bottom line?

Our purpose is all about that higher calling and why EY matters. If we could no longer provide services to the world, other firms would step in and fill the gap to meet the demand of the work that we do. However, communities would be impacted as would the lives we improve with the work we do. The lives of the people who are part of the EY community who work for EY today or who have worked for us in the past would be profoundly different. They are our higher calling.

It’s about how we can galvanize our organization around that sense of purpose in improving the lives and the communities of all of the EY family and stakeholders.

It’s also about the clients that are served and impacted by the work we do. Our sense of purpose has almost nothing to do with the bottom line.

What do you tell young people interested in the profession about the innovation that is taking place in professional services?

First and foremost, the accounting language and task conversancy are very valuable skills, and those skills have transcended all of the technological changes that have had great impact on other aspects of business.

Accounting is essential to the ability to operate effectively within a business role, be it as a CEO, a Controller, or a Head of Supply 12 LEADERS

Chain. The ability to speak and interpret and understand the accounting language will always be an essential skill.

The effect of technology and transformation makes this industry more exciting than ever because some of what has historically been done by human beings has been relatively mundane transactional work and is now being automated. This is liberating time for people to be much more engaged in true business analysis and evaluating the results of spreadsheets and various analyses as opposed to preparing them.

It’s much more meaningful work, and it does provide for the great platform from which we can grow our business awareness in all aspects of clients’ businesses. There has never been a more exciting time to be in our profession.

The ability to speak and interpret and understand the accounting language will always be an essential skill.

It’s also a dynamic time, so those who are joining us from campus today are going to be doing work three to five years from now that doesn’t even exist today. They’re going to be using technologies that don’t even exist today.

If they join EY, they will have a sense of security that we’re going to develop in them the requisite skills to meet those future demands.

That is what our apprenticeship model is all about – it’s why we can not only keep pace with, but be at the front edge of this transformative age. It’s critical because we’re helping our clients respond to those changes.

We use the apprenticeship model to create the capabilities the market needs by developing the skills and experiences that are so valuable in the marketplace and, frankly, that are very rare; in some cases, they don’t even exist yet.

With all the impact and success that you have had at EY, are you able to reflect and enjoy the process or are you always focused on what is next?

I enjoy it every day. I absolutely love what I do, and I love this firm. I’m so gratified by the work, and I have such conviction in our people. I have such conviction in where we’re headed, and I can’t begin to tell you the joy it gives me.

There is an incredible sense of purpose in the impact that my leadership team at the board level and myself are having on our 75,000 people and the profession at large. We are transforming how the work we do is executed and the way our clients’ work gets delivered and implemented. It’s incredibly gratifying.

I don’t so much reflect, but instead take stock of what I have achieved. While I reflect every day on the priorities, on how I’m spending my time and on making sure I’m focused on the right things, particularly around culture, I also want to make sure I’m engaged with our people and our clients. I take time every day to reflect on this, which keeps me grounded in the mission. That is where most of my reflection comes from.

When I think about what has been achieved, 100 percent of the time, it is a reflection on what has been achieved by the team I have been working with. I celebrate our successes collectively, and there is little time on my part to focus on my personal achievements.

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VOLUME 42, NUMBER 1

MLS WORKS, Major League Soccer’s community outreach initiative, is dedicated to addressing important social issues and serves as a platform for both League and club philanthropic programs.

MLS WORKS seeks to establish Major League Soccer as a leader for improving the lives of people through sport.

@MLSWORKS MLSsoccer.com/MLSWORKS

Be Fearless An Interview with Jean Case, Chairman, National Geographic Society, and CEO, Case Foundation EDITORS’ NOTE Jean Case knows a thing or two about being fearless, making big bets, being bold and taking risks. Whether it is in her role as the first female Chairman of the National Geographic Society in its 130-year history of global exploration, as CEO of the Case Foundation, which invests in people and ideas that can change the world, or her extensive career in the private sector, including her leadership role at America Online, Inc. where she was a senior executive directing Jean Case the marketing and branding as AOL brought the internet to the masses, fearlessness has always been a core tenet of Case’s work.

As a philanthropist, investor and internet and impact investing pioneer, Case advocates for the importance of embracing a more fearless approach to innovation and bringing about transformational breakthroughs. In addition to the roles noted above, Case currently serves on the boards of Accelerate Brain Cancer Cure (ABC2) and the White House Historical Association, as well as on the advisory boards of the Brain Trust Accelerator Fund, Stanford Center on Philanthropy and Civil Society and Georgetown University’s Beeck Center for Social Impact and Innovation. She was elected to the American Academy of Arts and Sciences in 2016 and has received honorary degrees from Indiana University and George Mason University. Be Fearless: 5 Principles for a Life of Breakthroughs and Purpose, is her first book.

ORGANIZATION BRIEF The Case Foundation, created in 1997 by digital pioneers Jean and Steve Case, is a diverse and dynamic institution by design. It creates programs and invests in people and organizations that embrace the Be Fearless principles and harness the best impulses of entrepreneurship, innovation, technology and collaboration to drive exponential impact. In particular, they focus on catalyzing movements and collaborating to bring forward ideas that have transformative potential and can lead to uncovering new, more impactful ways of addressing chronic social challenges.

Today, the Case Foundation is driving at two major movements – impact investing and inclusive entrepreneurship. As a movement catalyzer, it is taking a fearless approach to social innovation to tip individuals and organizations from good intention to meaningful actions. Within both movements the Case Foundation sees boundless potential to get all oars in the water to help solve the most pressing social problems.

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Will you discuss your involvement with National Geographic and how you define its mission?

At National Geographic, we believe in the power of exploration, science, storytelling and education to change the world. We get to work with fearless men and women all over the world who are often on the frontlines of the unknown.

It has been a terrific experience to work with this 130-year-old organization that, in my view, is more relevant today than it has ever been before.

Will you highlight the innovation that is taking place at National Geographic and how the organization has evolved in order to remain relevant?

Although pictures of our founders show them all looking quite Victorian and serious, the truth is that they were some pretty radical change makers themselves. Innovation and risk taking has been in the DNA of National Geographic Society from its founding.

We continue to push that innovation envelope in a number of ways. Baked into our business model from its beginning, National Geographic Society is really a social enterprise.

We had a joint venture with 21st Century Fox, which is now being acquired by Disney who will be our new partner, that has contributed to our commercial businesses.

From that, we have a sustainable revenue that comes from memberships and licensing every year to help fund the National Geographic Society.

It’s a very sustainable and innovative business model, and I like to say that we were the first social enterprise, because our social model started 130 years ago.

What was your vision and mission in creating the Case Foundation?

Our mission is pretty straightforward – we invest in people and ideas that can change the world.

We just talked about National Geographic; it’s clear that the continuity that applies to National Geographic is one that we want to apply to the Case Foundation as well and, at a broader level, it has been very consistent through the years.

However, every three to five years we will tilt our focus to new initiatives and new opportunities. We work to inspire, educate and activate people out there around two movements – impact investing and inclusive entrepreneurship.

Playing that catalyst role requires that we remain engaged with things for somewhere between three to five years. There have been a few exceptions where it goes longer than that.

Another element that we have believed in since our founding as a new organization is collaboration. As a foundation undertaking large initiatives, we require that we have a public sector partner and a business partner, be that corporate or start-ups, as well as a nonprofit partner.

Hopefully, other philanthropies will also play a role with us to try to achieve impact at scale.

Is multi-level collaboration and finding the right partners a key to creating impact?

Yes, no question. When we build a table of different perspectives and skills and capacities, it’s not surprising that we can go a lot further faster.

It doesn’t matter to us whether we get any credit or branding around these objectives – what matters most is that we put together a rich and diverse collaboration that covers all the bases to move things to scale quickly.

Are the philanthropic programs for the Case Foundation metric driven and is it difficult to put metrics in place for this type of work?

They are, although some are really crystal clear. When we make the decision to invest or make something a key focus of the foundation it starts with the question, “What does success look like?”

Sometimes, we know we’re going to be able to measure our progress toward the objective with precision. Success is also not just measured by reaching those metrics, but also about the progress were making in driving our objective toward becoming a reality.

It was easy to see the impact of our HIV/ AIDS or malaria work in the early days because the numbers make the broader impact the movement has had quite clear. But then there are some areas where it is less clear, and we’re still comfortable with that. We feel that if we are working to create conditions as a first step for a movement to take off, it will be harder sometimes to establish those metrics.

We also had to mature a little as an organization. We are 21 years old, but there have been some things in which we invested in the early days where I thought it really didn’t work.

It turns out that we just needed to give it some time and, 10 years later, we could see the dramatic effect of some of our earlier investments.

It just took time for conditions to come together and for things to move.

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Our mission is pretty straightforward – we invest in people and ideas that can change the world.

That is one reality that I have learned a lot about – you have to be careful not to just measure the here and now – if we’re taking on big things, we have to evaluate them across the spectrum of time.

When you evaluate taking on those big things, is it important to stay within certain key areas of focus to make sure you have the most impact?

We begin by asking the question, “what can we uniquely bring to this objective?” If there are plenty of others that can go in and play the role, then we wouldn’t necessarily be uniquely suited to jump in.

We are sector, cause and issue agnostic – we always look at the big picture of where we can uniquely play a role to catalyze and help drive a movement forward.

What interested you to write your book, Be Fearless, and who is the target audience for it?

The book is a call to action and a playbook for anyone looking to build a life of breakthroughs and purpose.

At some point in their lives, most people have a dream, but they can get stuck by a belief that they don’t have what it takes to pursue it.

This book demystifies things a little bit through storytelling and proves the point that ordinary people, anyone from anywhere, can do extraordinary things.

I’m a great example of that. Anyone who looked at my early life would never have predicted that the opportunities would come along to try to make a difference in the ways that I have.

Do you attribute that to finding the right mentors and what are some of the other factors that led to your success?

I’m very careful to give the credit to many people who, through spirit and generosity of resources, have helped me find opportunities in life.

The book tries to demystify the idea that it takes genius, wealth, or a powerful network. I try to accomplish this through telling the stories of unlikely heroes.

Too often, when someone breaks through or finds success, the story about what happened between when they started out and when they found success gets sanitized.

I try to peel back the onion on some better-known success stories to make it clear that it was not a smooth ride from the start to finding VOLUME 42, NUMBER 1

success. I also tell some stories of people that haven’t been heard before. However, they’re important stories because, on the surface, it might appear that these people didn’t have anything working for them that would allow them to do something big, but I make it clear how they went about it and embraced many aspects of the Be Fearless ethos.

The framework of the book is based on five principles that we uncovered about six years ago at the Case Foundation. We have been sharing these principles across sectors for a number of years now. Many people told us that more people need to hear this message and it was because of this that we made the decision to write the book.

The book is a call to action and a playbook for anyone looking to build a life of breakthroughs and purpose.

I feel that now, more than ever before, people can be overcome with fear and discouragement. It’s a clarion call to go out there and be bold and take risks and take a big bet on the future.

I find that most people have ideas – they just don’t have a clue about how to get started.

As you dove deeper into your research for the book, were you surprised at what you found?

I totally was, but I love stories and I have been so privileged in this life I have. We invest in people and ideas that can change the world, so no matter where I am in the world and who I meet, I’m always interested in the stories of people.

When I wrote the book, I went back to the town I was born in and stayed by myself at an Airbnb for a few weeks. I got up every morning and wrote until I went to bed at night.

I was newly inspired each day as I would write these stories and, of course, I found that there were many more stories than those that could make it into the book.

I love each and every story and they’re in the book for a reason.

You mentioned five principles which were developed from the work you have done over a lifetime of experiences. Will you discuss those principles that are so key to your philosophy and thinking?

Not surprisingly, the first is to make big bets and make history. The idea is not to settle for incremental change.

As I said earlier, a lot of people have big ideas but they lack a playbook or framework to guide them on how to take those forward.

The second principle is to be bold and take risks. Our brains are wired to avoid risk, but if people are trying to do something new and innovating on the front lines, they have to recognize that they’re taking risks and they have to get comfortable with that risk. I encourage people to look at this almost as R&D. When we adopt this point of view, we naturally recognize that everything is not always going to work out, but we can always pick up, learn and move forward.

That leads to the third principle, which is to make failure matter. If you examine the life of anyone who has achieved something extraordinary, you’ll find a story of failure somewhere along the path. Sometimes you really have to look for it, because too often as people advance through life they sanitize their stories, making it sound as if everything was carefully planned.

The fourth principle is to reach beyond your bubble and build unlikely partnerships.

This is about building a diverse table and putting people around us who have different skills and perspectives. In an era when so many LEADERS 15

We have to require more than just financial returns from those we invest in to allow purpose to become the driving focus.

people are retreating to their corners, the fearless change makers have to walk out into the center of the arena and beckon all the others to join them.

Companies that are doing that today are outperforming those that are not diverse or bringing a diverse table. There is a lot of compelling evidence around this particular principle no matter which sector one is looking at. It happens to be true across time and across sectors.

The last, but not least, principle is to let urgency conquer fear. Today, many people feel a sense of urgency or a need for a change, and often this will become the difference between whether they can dig deep to do something difficult or not. We can look away and let complacency take hold, or we can use these moments and let urgency conquer fear to make a difference. I tell a number of different stories about people who, in a moment where they felt a sense of urgency, were able to break through.

As I talk to people in the U.S. and around the world, I hope that they will be able to use this book as a tool to help them get out and create the change they want to see.

Are these principles that can be taught or are you born with these abilities?

There is a myth that entrepreneurs are born and can’t be developed, and we tend to think of entrepreneurs as great risk-takers.

I literally put tips in the book for how to check yourself on many of these things. I’ve learned that one benefit of getting older is having the ability to step back and learn from your experiences.

For many years, I didn’t realize the power of intentionality and of recognizing the level of one’s risk tolerance. Once I did, I came to understand the value of putting an action plan in place to get more comfortable with risk or figuring out how to take a little more risk to move an idea forward. I’ve created some exercises in the book that refer to this.

These things most definitely can be taught – it’s not just that I believe it; I have actually seen it.

In the six years we have been doing this work, I have had people come back to me to tell me how these principles have inspired and motivated them to make a difference.

How important is it for leading companies today to be purpose-driven and do you feel that companies have a responsibility to create a bigger purpose than just the bottom line?

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I do. Impact investing is an area we have been deeply engaged in. Last year, the number of assets going into impact investing nearly doubled.

We have a new generation of investors comprised of a diverse group of younger people and women who see capital as a powerful tool to change the world.

We have to require more than just financial returns from those we invest in to allow purpose to become the driving focus.

We are deeply engaged in this work and are big believers in the potential of a new way of looking at companies and capital more broadly and asking those companies how they can do more.

The best and the brightest of talent will be drawn to these companies and CEOs know that. They know that, in order to retain their talent, they have to be a good corporate actor and hopefully focus on more than just the bottom line.

I’m most excited about this new generation of companies, many of which I talk about in the book. Social impact is in the DNA behind these companies.

In the book, I share the story of Warby Parker, which is a great brand and a very successful impact company, and Greyston Bakery whose mission says, “We don’t hire people to bake brownies; we bake brownies to hire people.” Its open hiring policies have been transformative.

I use many examples of this new generation of companies and this new generation of investors, employees and consumers who are demanding more.

There is dialogue today around the opportunities for women in business and leveling the playing field. Do you feel this issue is being addressed effectively?

I don’t think enough focus has been put on it. We have really tried to shine a light on the jarring data. Last year, just 10 percent of investment capital went to women and only 1 percent of companies have an African-American founder.

I tell stories throughout the book of women entrepreneurs. The one I purposefully put right in the front of the book is Madam C.J. Walker, who lived 100 years ago and was born the daughter of slaves. She went on to build a great company and became what many recognize as the first female self-made millionaire in

the United States and a great philanthropist. In Indianapolis, there are buildings that honor her name.

I like to tell women that are thinking about taking a business forward, if Madam C.J. Walker could take what she had to deal with 100 years ago and make a phenomenal success, they can too.

We have all faced challenges and continue to, but the clarion call in the book is to face down your fears and not let failures get you down or cause you to stop. Instead, be inspired by great stories of people who faced many more challenges than many of us ever will and still found a way to break through.

What advice do you give young people about finding and following their passions and building sustainable careers?

As the stories from my book illustrate time and again, great things don’t come from comfort zones. People have to be willing to become a little uncomfortable and to take risk and overcome failure in pursuit of a big idea or even in taking the next step in pursuit of their careers. It’s really important to recognize – and there is overwhelming compelling data on this – that failure is success in progress.

Almost anyone I’ve ever spoken to who had success will say the road to success was filled with potholes that they had to get past. If young people could embrace this reality, they’re off to the races.

During the process of putting the book together, was there time for reflection and were you able to take some moments to appreciate all that you have accomplished?

I share many personal vignettes and stories, even though the focus is on other people’s stories. I do share quite a number of stories and critical moments in my own life including some disappointments and moments when I wasn’t sure what the future would bring, both as a young person and into my adulthood.

I also remind the readers that although I’m writing a book called Be Fearless, I never thought of myself as a fearless person. What I have developed the skill to do is stare down fear and move past it.

That is the true spirit of being fearless. I tried to be super honest about that in the book and bring my own fears and failures into it and share with readers what I found helped me overcome them.

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Global Leaders in Insurance (and Doing Business in China)

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Starr Insurance Companies is a marketing name for the operating insurance and travel assistance companies and subsidiaries of Starr International Company, Inc., and for the investment business of C.V. Starr & Co., Inc., and its subsidiaries.

How a Learning Culture and Diversity Drive Business Success An Interview with Jenny Dearborn, Executive Vice President, Human Resources, SAP EDITOR’S NOTE Recognized as one of the 50 Most Powerful Women in Tech, Jenny Dearborn is a thought leader in human capital management. She is a regular contributor to USA Today, Forbes, Huffington Post and Fast Company. Her book, Data Driven, was number seven out of 11,000 business books published in the U.S. in 2015. Her next book, The Data Driven Leader, was published in November 2017. Before joining SAP, Dearborn was CLO at SuccessFactors, Jenny Dearborn where her team was recognized as the number one performing corporate learning department by Elearning Magazine and won numerous industry awards for sales enablement and learning impact measurement. Dearborn earned an A.A. in Social Sciences from American River College in Sacramento, a B.A. from University of California at Berkeley, an M.Ed. from Stanford University and an M.B.A in Organizational Development from San Jose State University.

COMPANY BRIEF SAP (sap.com) is the world’s largest provider of enterprise application software, founded in 1972 and headquartered in Walldorf, Germany. SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 350,000 customers to operate profitably, adapt continuously, and grow sustainably. SAP is listed on several exchanges, including the Frankfurt Stock Exchange and NYSE. How do you define the strengths of the SAP brand?

SAP has a legacy of trust and integrity.

People trust in our products and our ability to innovate, and we see that in our consistent market leadership.

How critical is it for your role to be engaged with business strategy and to have close coordination with SAP’s business leaders?

It’s integral to what we do. My responsibility is to ensure that our talent can help achieve our business goals and objectives, now and in the future. That process starts with aligning a strategic workforce plan with the board. We evaluate the talent we have today and the development they need every year to support our future strategy with the right knowledge and skills.

18 LEADERS

My role touches the employee experience at every step of their journey, from onboarding to retirement, and we are laser focused on what employees need at each of these stages, not just to support our business strategy, but also to be their best selves at work.

With the size and scale of SAP, how challenging is it to communicate internally to the employees about these learning and growth opportunities?

I have been at several large global multinationals and internal communication has been challenging at all of them. Most important is to regularly communicate a clear vision, strategy, and purpose, and show our people how critical they are to advancing them. Learning and growth opportunities are one way to make those connections, showing the links between the knowledge and skills we’re offering and how they can be meaningful to our people’s success – in their role at SAP as well as their career.

How vital is a diverse and inclusive workforce for a company like SAP that has such a diverse customer base?

It’s absolutely central, first of all to SAP innovation. A wide range of both professional outlooks and personal experiences is essential for any technology company, but especially for a market leader working to invent the future across the globe. The more diverse the people are that are tackling the problems, the better the solutions will be.

Diversity is also essential to having an inclusive, bias-free workplace where every individual can be recognized for what they have to contribute. At SAP, we focus on skills and str engths, rather than what others may see as impairments. This is especially important to me. Until I was 19, people assumed I didn’t have much to offer. Then I was diagnosed as having severe dyslexia, Attention-Deficit/Hyperactivity Disorder, or ADHD, and Obsessive-Compulsive Disorder. I was able to tackle those challenges and now I harness them as strengths. Everyone deserves a chance to reach their potential.

I’m very proud of SAP’s Autism at Work program, which operates in 12 countries.

By embracing differences, we help spark innovation while challenging assumptions and inspiring change.

How important is it to put metrics around SAP’s learning and development efforts?

It’s incredibly important to measure our impact and be accountable for our work. L&D professionals need to be as metrics and numbers driven as anyone else. To truly align our activities to top-level business goals, we need to understand the fundamentals of data science, organizational psychology and measuring what matters.

This takes discipline and focus, as well as a commitment to develop our own people’s skill sets. We can absolutely prove the value of the work we’re doing.

You use the phrase, “learning and development company.” Is this how you describe SAP? Yes. SAP understands what is most critical for the skills of the future. We can talk about machine learning and artificial intelligence and all sorts of amazing ways to augment humanity in the future.

However, what differentiates a company and workforce is their ability to be human and to focus on unique, fundamentally human skills. These are things machine learning and AI can’t do.

This includes critical thinking, problem solving, innovation, creativity, empathy, trust, and emotional intelligence – these are the things we need to stay ahead.

SAP’s learning culture is key. Knowledge is static, but our ability to adapt, change, learn and grow is what keeps us ahead of the market, and that is what SAP is about.

Does that commitment need to be set at the top with the C-Suite?

Absolutely. Many companies may talk about it, but if they don’t walk the talk, then they are breaking trust with the market and their employees, who will see through it.

When I came to SAP six years ago, I was part of the SuccessFactors acquisition and I had been a Chief Learning Officer at five companies, so I knew how this function should be run. But it’s because of Bill McDermott’s consistent leadership that I have been successful.

Bill creates an environment for the best leaders to thrive and excel. The journey from onpremise to cloud for SAP over the past six years has been extraordinary. This all comes down to leadership and his vision.

He is incredible at inspiring loyalty and leadership and bringing out the best in people to singularly fulfill our mission of making the world a better place.

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Mike and Kathy never thought a streaming video would be a lifesaver for them both.

Going home after brain surgery is overwhelming.

But with her aftercare instructions easily streaming online, Kathy and her husband Mike could just focus on the simple things.

When you Look North, innovation not only cures, it cares.

See more of Kathy’s story at Northwell.edu/BrainSurgery

Celebrating Life, Every Day, Everywhere An Interview with Deirdre Mahlan, President, Diageo North America EDITORS’ NOTE Deirdre Mahlan is President of Diageo North America and is responsible for the company’s largest market in terms of sales and operating profit. In this role, she oversees Diageo’s spirits and beer businesses in the U.S. and Canada, which include brands such as Johnnie Walker, Smirnoff, Crown Royal, Ketel One, Captain Morgan, Baileys and Guinness. Mahlan has more than 20 years of experience in the consumer goods sector in a number of senior roles, primarily in the U.S. with Diageo and Deirdre Mahlan Seagram. Most recently, she served as CFO of Diageo PLC, during which time she was a member of Diageo’s Board of Directors. Mahlan is also a nonexecutive Director for Experian plc. She completed her undergraduate education at New York University and holds an M.B.A. from Columbia University.

COMPANY BRIEF Diageo (diageo.com) is a global leader in spirit and beer brands which are manufactured and marketed in more than 180 countries. Diageo was created in 1997 through a merger of Guinness and Grand Metropolitan which contributed to the company’s vast and rich array of premium alcohol brands.

Will you discuss the strength of Diageo within the North American market?

Diageo is the leader in spirits in the U.S. – we have the largest positions and leading brands in every category in which we participate. We have enjoyed long-standing success in the market and our strength is the diversity of our brand portfolio where, in most categories, we have the number one or number two brand.

Are you primarily focused on growing the existing brands or developing new brands for the portfolio?

It’s a combination of both. It has always been our goal as marketers and brand owners to continue to ensure our brands remain relevant to consumers and that we continue to do what we refer to as recruit and re-recruit. We have to continually recruit and re-recruit consumers for our brands and, as long as they stay relevant to those consumers, they can continue to grow as ours have for centuries.

However, we always approach our brands from the consumers point of view. We look at how and where the consumers enjoy their alcoholic beverages and how they socialize around them. We then decide what brands we have that are relevant to those scenarios.

20 LEADERS

Sometimes, this will require us to innovate with new brands or that we acquire brands. Distil Ventures, our Diageo funded accelerator program for entrepreneurs sees us invest in the future of drinks, while allowing the businesses to grow independently. We also acquire brands, as we recently did with Casamigos, where we saw a huge opportunity.

Given Diageo’s global footprint, is there close coordination from region to region?

We have a number of leading global brands such as Johnnie Walker, Smirnoff and Guinness. These brands have a more coordinated global effort because the consumers are global and the brand’s purpose, how it’s presented and how it shows up in the various cultures, needs to be consistent wherever the brand goes.

There are other brands that are born locally and remain local, and those tend to be regional and market specific.

How do you guard against complacency when Diageo owns such a large market share?

It is vitally important to avoid that complacency. Our long-standing ambition has been to be one of the best performing and most trusted and respected consumer products companies in the world. This is something we totally believe in, but we’re not there yet. We guard against complacency by recognizing that we haven’t yet delivered fully against our own ambition and our stated purpose, and that keeps us fresh.

Sometimes, we find that we have taken our eye off the ball for a given brand or situation, and then we have to take a step back and refresh our approach. This is what we have been doing in super premium vodka with Ketel One – launching a new line called Ketel One Botanical – because we recognized that we needed to tap into occasions where we weren’t present. We feel Ketel One has the credentials to do that and it has been very successful.

Will you discuss the importance of diversity for Diageo and the opportunities that exist for women in the industry?

Forty percent of Diageo’s global executives are female and the executive committee members come from six different ethnic backgrounds. In North America, we are now very close to gender parity on the North American executive committee, and the head of our U.S. spirits business is a woman.

We have been actively looking to encourage women to continue their careers in the industry and we engage our distributors and suppliers in that same conversation. We are also working to ensure that our own supplier base is diverse.

It’s a journey and we have to continually keep our eye on the goal. We must continue to remove the barriers so that everyone can progress, and we are making positive strides overall.

How does Diageo North America view its responsibility to the communities where it operates and is corporate responsibility a key part of the company’s culture?

It’s a huge part of our culture. Our purpose is celebrating life, every day, everywhere, and being proud of what we do is one of our core values.

Recently, we had more than 400 people renovating a park in Stamford, Connecticut, where we were also stuffing bags of food for Rise Against Hunger and conducting educational seminars on responsible drinking. We allow our employees to take time every year to participate in these types of activities.

Globally, Diageo has a three-pillar approach to corporate social responsibility: one focuses on environmental – such as water efforts, because water is a key to creating our products, but is also a resource coming under increasing pressure in many parts of the world.

The second focus is on community and education – for example, Learning For Life, which is all about partnering with the hospitality industry to give people new skills for the future.

The third one is focused on alcohol in society – reducing any negative impacts of the use of our products through consumer education and programs to make sure our products are consumed responsibly.

These are consistent focuses that we invest in and that receive a significant emphasis at our global executive committee meetings.

What makes Diageo so special for you?

I joined Diageo through an acquisition. There are two reasons I have stayed here: first, we are always striving for excellence, so I’m constantly feeling challenged. There are only so many businesses where, if one demonstrates the aptitude, willingness and leadership, they are given an opportunity to step forward.

The second reason is Diageo’s commitment to values. We are committed to inclusion and the core values of the business, which include celebrating life, every day and everywhere.

It really is an enjoyable place to work.

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A Business Imperative An Interview with Susan L. Johnson, Chief Diversity and Inclusion Officer, The Hartford EDITORS’ NOTE Susan Johnson How ingrained is diversity and assumed her current post in 2013. inclusion in The Hartford’s culture Prior to joining The Hartford, Johnson and values? was Vice President of Executive Our commitment to diversity and Succession and Diversity Strategies at inclusion (D&I) is deeply rooted in The Pitney Bowes. She has held a variety Hartford’s culture. We have a longof human resource management held belief that sustaining an inclusive positions at Pepsi-Cola and Campbell culture provides an environment where Soup Company. Johnson’s experience all employees can focus on business also includes participation in local, outcomes, enabling more innovative state and national political campaigns, ideas and better solutions for our as well as work on domestic policy customers. We value the diversity of and management issues in the public Susan L. Johnson our employees’ skills and life experiences sector. She is a graduate of Spelman and invest deeply in their development.

College and received a master’s degree in industrial Throughout all levels, we provide education and and labor relations from Cornell University. training on appreciating differences and managing inclusion, as well as providing opportunities for COMPANY BRIEF With more than 200 years of engagement. expertise, The Hartford (thehartford.com) is a How do you engage your employees in leader in property and casualty insurance, group The Hartford’s diversity efforts? benefits and mutual funds. The company is widely The Hartford wants employees to bring recognized for its service excellence, sustainability all the elements of who they are to work – their practices, trust and integrity. backgrounds, cultures, experiences, passions and interests. One way we engage our employees and How do you define the role of a Chief Diversity further our inclusive culture is through courageous Officer and how do you focus your efforts at conversations. These conversations are the result The Hartford? of employees wanting to have an open dialogue As Chief Diversity and Inclusion Officer, on topics that are important to them. Our training I focus on educating employees about the enables the appropriate atmosphere to discuss these importance of maintaining a diverse and inclusive matters internally. Through formal and organic work environment and empowering them to be dialogue, the goal is to respectfully exchange catalysts for change. At The Hartford, we believe perspectives so that employees feel empowered to that people should be respected for who they have them, and evolve from their discussions. are, recognized for how they contribute Another way we engage is through our nine and empowered to engage on complex societal Employee Resource Groups (ERGs), which topics that affect them at work. Key to fostering provide employees the opportunity to be more this culture is continuing to raise awareness of evolving connected while helping to support our business social issues affecting employees inside and success. ERGs are initiated by employees outside the company and engaging in meaningful within The Hartford who may represent a particular discussions bridging employees’ experiences with constituency and serve as a resource for both our company’s core values and beliefs. group members and the organization. Through Will you provide an overview of The these groups, employees have the opportunity to Hartford’s diversity and inclusion strategy? bring their unique perspectives to influence We are maintaining a diverse and inclusive business plans and outcomes. ERGs also provide culture at The Hartford as a business imperative and engagement opportunities for its members that help a critical part of the company achieving its business build their personal lives and professional careers. goals. We strive to cultivate a diverse workforce that Is it critical to have metrics in place to mirrors our customers, partners and communities to track the impact of The Hartford’s diversity be relevant and relatable to all our stakeholders, and and inclusion efforts? to continue to attract top talent to our organization.

In our 2017 employee survey, 88 percent To accomplish this, our strategy focuses on helping of employees said The Hartford made it easy for employees appreciate differences, value inclusion people with diverse backgrounds to feel accepted. and share their experiences by providing them with We believe metrics are an essential part of measuring education, training and engagement opportunities. the impact and progress of our D&I strategy.

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By using data to understand how employees feel about our culture, we can continue to evolve as an organization to meet the needs of our workforce.

In addition, we use external benchmarking to understand how we compare in the marketplace. In the past year, we have received the following awards and recognitions: Bloomberg Gender Equality Index for the third consecutive year, Best Places to Work for LGBTQ Equality by Human Rights Campaign Foundation for the 10th year, Best Place to Work by Disability Equality Index, and 2020 Women on Boards Winning “W” Company.

How broadly do you define diversity at The Hartford?

At The Hartford, we define diversity as who the person is and what they bring to their role. As for inclusion, we view it as the act of demonstrating behaviors that value and leverage the diversity in each employee. You can think of it as diversity being who is on the team and inclusion being who gets to play. When everyone feels valued for their uniqueness and has the opportunity to perform at their full potential, we recognize it as an inclusive work environment.

How critical is it to have the commitment of the board and senior management in your diversity and inclusion efforts?

Creating a culture of diversity and inclusion begins at the leadership level. Our Chairman and CEO, Christopher Swift, is an advocate for the value and necessity of a diverse and inclusive workplace. He actively engages with employees on D&I topics and has shared his perspectives in many ways including internal blog posts about standing up against bigotry and hatred following news events such as the racial protests in Charlottesville and Charlotte, and the Pulse nightclub shooting. In addition, our senior management team participates in mentorship and sponsorship programs, and every ERG has an executive sponsor to assist in the execution of programs and strategy.

What are your key priorities as you look to The Hartford’s continued efforts in regard to diversity and inclusion?

Moving forward, our goal is to maintain diversity on our board, create a leadership pipeline for attracting and retaining diverse talent, and be the insurance industry leader in diversity and inclusion. We are pleased with our efforts to date, however, this is an ongoing long-term priority requiring continuous improvement to appropriately reflect the needs of our workforce, customers and communities.

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MLS WORKS An Interview with JoAnn Neale, Chief Administrative and Social Responsibility Officer, Major League Soccer EDITOR’S NOTE JoAnn Neale leads human resources, administration, social responsibility and player engagement for Major League Soccer. She is responsible for the strategic oversight of all aspects of the human resources department, including employee relations, talent acquisition, diversity and inclusion, succession planning, benefits, talent development, compensation, human resources infor mation systems, culture and core values. Neale also JoAnn Neale leads the administration department, where she is responsible for office design, space planning, vendor management, compliance and day-to-day office services and facility operations.

As the architect of MLS WORKS, the League’s social responsibility platform, Neale spearheads its overall strategy. Under her direction, MLS WORKS has established a commitment to social responsibility through national programs, charitable giving and by undertaking grassroots initiatives in underserved communities. In addition, Neale oversees programs to support player education and engagement, and assists with off-field career development and transition.

Neale sits on the Board of Directors for the U.S. Soccer Foundation, was named a SportsBusiness Journal Game Changer, and was honored by New York City and State to The Responsible 100 and by the Coalition Against Trafficking in Women for her leadership in social responsibility.

Prior to joining MLS, Neale spent four years as an attorney at the law firms of Latham & Watkins and Duval & Stachenfeld, where she focused on corporate finance and real estate transactions. Neale earned her law degree from New York University’s School of Law, graduating cum laude, and received a B.S. degree, with distinction, from Cornell University.

ORGANIZATION BRIEF Major League Soccer (mlssoccer.com) features 26 clubs throughout the United States and Canada, including future expansion teams in Nashville, Miami and Cincinnati. As MLS has quickly become one of the world’s top soccer leagues, it has become a league of choice for dynamic players in the prime of their careers. These players combine with a passionate, millennial-fueled supporter culture to provide an exhilarating live experience at every match. With players from more than 70 different countries competing, MLS is the most diverse sports league in the world.

24 LEADERS

Will you discuss your journey in law school and what led you to make a change in your area of focus?

I went straight from college to law school, and I had always been intent on going into litigation. I thought I would have enjoyed and been energized by the adversarial nature of litigation.

As a summer associate, I was placed on a litigation team and quickly realized it wasn’t for me. While the idea of being inside a courtroom was exciting, the reality was that most cases didn’t reach a courtroom for years, if ever, and the work was heavily focused on research.

After law school, I was fortunate to have the opportunity to go to a law firm that didn’t require associates to specialize in their first year.

I could take a year or two to dabble in different areas of the law.

Early in my career I was assigned various matters ranging from bankruptcy and corporate finance to mergers and acquisitions. I soon realized I preferred transactional work to litigation. I found corporate transactions to be more fulfilling because they aren’t zero-sum games; lawyers on both sides of the table work towards a common goal to get the deal done.

When the opportunity presented itself to join Major League Soccer, what excited you about the organization and made you feel it was the right fit?

When I was studying for the Bar Exam in the summer of 1994, the World Cup was taking place in the U.S. I grew up playing soccer and always loved the sport, so my friends and I would take breaks from studying and watch the games. It was during the 1994 World Cup that the formation of Major League Soccer was announced, and I recall thinking it was something I would love to be involved with.

Fast forward several years, the opportunity presented itself to come in-house to join the legal department at Major League Soccer and I thought it was meant to be.

I got lucky. It was a matter of being in the right place at the right time. A friend of mine had left her job to come to MLS to work in the marketing department. When she was coming over, I asked her to let me know if anything opened in the legal department. She had been at MLS for a few months and called me to send her my resume.

I was willing to take a risk. We didn’t know at the time if the league was going to be viable, but I was willing to take a chance.

While you joined Major League Soccer as part of the legal department, do you feel that in many ways you have been provided the opportunity to have a number of different careers within the organization?

I have been so fortunate in that I have been able to pivot and expand my role during my career at the League. I’m always looking for new opportunities – that is my nature- and I like to be intellectually challenged. After working in the legal department for many years, I took over human resources, administration and facilities, where I spearheaded a team responsible for all the logistics of moving MLS to our current headquarters in Manhattan.

Around 2006, our executive team started discussing the need to have a social responsibility platform. We felt it was important to give back to the communities that were supporting us and to the public at large.

I stepped up and offered to lead the charge in figuring out what platform might work for us and what our focus should be. MLS WORKS launched in 2007.

MLS has been an organization that was committed early on to building a diverse workforce. How critical is it to have diverse thought and backgrounds at the organization?

There is so much research out there that shows organizations that are diverse make better business decisions.

With that premise, it makes complete sense to strive for diversity across the board, including hiring people of different races, genders, ethnicities and backgrounds to foster diversity of thought so that the organization is positioned to make the best decisions.

If people sitting around the table all think the same way, no one will be challenged to think outside the box and come up with innovative and creative solutions.

As a business imperative, it’s really important. As an organization, we have always been focused on that and strive for ways to drive diversity in our workforce. We have made great strides in diversity at all levels of the organization, and we are committed to continuing to improve.

VOLUME 42, NUMBER 1

Leveraging the power of sport, MLS, ESPN and Special Olympics have partnered to promote an environment of social inclusion by uniting people with and without intellectual disabilities through Special Olympics Unified Sports. (above); Major League Soccer clubs conducted activations during the inaugural Soccer For All month of June to showcase the collective efforts taking place throughout the League to foster more inclusive communities. (below)

Will you highlight the vision for MLS WORKS and how you decide which areas to support?

When people ask me what the hardest part of my job is, I tell them it’s having to say no to organizations that ask us to partner on amazing and worthy causes. We have to be strategic about our areas of focus.

We have done a significant amount of research, starting with our current and future fans who tend to be millennial, and are 50 percent female and 35 percent Hispanic. The research shows that social responsibility is very important to them.

Also, when we dove in deeper with our fans, we wanted to understand what they thought Major League Soccer should be focused on and what areas matter most to them.

We also spoke to our players and MLS Players Union, as well as our corporate partners and clubs. We landed on four key pillars.

What are those areas?

The first is diversity and inclusion. I’m so proud of this initiative. We recently rebranded the platform as Soccer for All. We are the most diverse professional league in North America; our players come from more than 70 countries.

There is a clear alignment there and it makes so much sense, especially given the demographics of our fan base. Everybody is welcome and nobody who is a part of our game should feel any form of discrimination. That is really close to our hearts.

The second area we are focusing on is environmental sustainability. We always supported green initiatives, but we are diving deeper and investing more in this area. In 2017, we decided to measure our carbon impact around our MLS All-Star Game presented by Target. We decided to purchase offsets around an initiative in Kenya. In Kenya, women do most of the cooking on inefficient stoves that release VOLUME 42, NUMBER 1

cancerous toxins into the air. MLS invested in energy efficient stoves to not only offset our carbon impact, but also to have a positive health effect on the women and children who were using them.

The third area is our Soccer Kicks Cancer initiative, where our primary activations are held in September around Pediatric Cancer Awareness Month. We are really proud of this initiative. All of our clubs participate and our players are super supportive of this cause. Many players regularly visit children’s hospitals and have ongoing interactions with patients. In addition to raising awareness and providing special experiences to cancer patients, we raise money for Children’s Oncology Group. Children’s Oncology Group is a research organization dedicated to finding cures for all types of pediatric cancers.

The fourth area is youth enrichment. We work with the U.S. Soccer Foundation to build soccer fields in urban communities, and to

provide after-school programming and access to the sport for kids that might not otherwise have that. We are also planning to expand into schools in 2019 with an anti-bullying educational curriculum.

When it comes to engaging employees in these types of efforts, how important is internal messaging and communicating about all of the work MLS is doing?

Everyone in the organization supports MLS WORKS’ initiatives. We encourage employees to do volunteer work and we give volunteer time off in addition to regular vacation days.

We also try to engage our employees around the initiatives of MLS WORKS, like our week of service around Earth Day. We seek to align our in-house volunteer efforts with our social responsibility platform.

Are you able to put metrics around MLS’ social responsibility programs to track impact?

This is challenging to do because much of our work is intangible. We do, of course, have some data-driven metrics, such as social media engagement, and money raised for certain causes, which can help us get a sense of our reach and impact.

Fan engagement is more difficult to measure. Fortunately, we’re committed to doing this work because it’s the right thing to do and social responsibility is one of our core values.

The league is committed to supporting players off the field and providing programs and education to learn and prepare for post-career opportunities. How important is this effort and do you feel that this is a responsibility for the league?

Our players are our number one asset and we recognize that if we want to have a long-term positive relationship with them, it’s important to invest in them in ways other than what they’re doing on the field. The average playing career of a professional athlete is around five years. We are committed to helping our players transition into the next phase of their lives after their professional playing career ends.

Our goal is to help players think about what comes next while they’re still playing for us. We want to give them the training, tools and opportunities to be set up for success in the next phase of their lives.

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LEADERS 25

A Bigger Purpose An Interview with Shannon Schuyler, Principal, Chief Purpose Officer, Responsible Business Leader, PwC US and President, PwC Charitable Foundation, Inc. EDITORS’ NOTE Shannon Schuyler commitment that drives decisionis responsible for infusing PwC’s making, inspires actions, and serves Purpose – to build trust in society as the foundation of organizational and solve important problems – culture. This can be a huge challenge into its core business strategy so it when we consider cultural differences, drives the firm’s collective activities, language barriers and the different impact and broader contribution ways people approach their work. to the marketplace. Given PwC’s At PwC, we surveyed employees vantage point and the breadth of its and business leaders across the country work, the firm plays a critical role to explore how purpose is perceived in helping address global challenges and valued. What we learned is that with their clients, in their firm and what we do matters, but why we do in their communities. In her role, Shannon Schuyler it matters more. In a time where the Schuyler helps PwC’s people see number of open jobs is higher than how they fix big problems for clients every day, the number of people who want to fill them, it’s promotes business’ responsibility to help every more important than ever for business leaders employee develop critical skills they need to thrive, to think about helping their employees find and looks beyond the impact of client work to purpose in the work they do every day. the broader societal trends that are affecting What have been the keys to PwC’s the business and PwC’s people. In her role as strength in the industry and how important Responsible Business Leader, Schuyler leads a is purpose to the continued success of the commitment to help communities through Access firm?

Your Potential, a $320 million initiative to teach When PwC was at its beginning in 1849, underserved students the tech and money skills the firm had a reason to exist – we wanted to they need to change the trajectory of their lives. protect the capital markets. Leaders didn’t yet She also works alongside US Chairman Tim Ryan define this as a “purpose,” but ultimately to drive the strategy for CEO Action for Diversity & purpose explains why you exist and we had Inclusion™, the largest ever CEO-driven business a “why.” commitment to advance diversity and inclusion Over the last two decades, society has in the workplace. changed and employees have said that they want to work for a company that is purposeFIRM BRIEF The purpose at PwC (pwc.com) driven. This doesn’t mean that every company is to build trust in society and solve important suddenly has to promote social good. A problems. It is a network of firms in over 140 business’ purpose can be to make money, to territories with more than 250,000 people build the best product people need, or to create who are committed to delivering quality in a long-lasting brand people think of fondly. assurance, advisory and tax services.

What’s important is that purpose is not about programs or stuff. It’s about adding humanity to When it comes to defining purpose, is it daily work so that you’re not just telling your important to narrow it down so that PwC employees what to do – you’re making sure can rally around a core cause or does it they understand why they’re doing the work extend in many different directions? they’re doing.

It is crucial that a purpose-driven company Will you highlight PwC’s commitment have a North Star to guide its decision-making to helping communities with Access Your and to bring humanity to its work and products. Potential and how this effort has evolved?

With heightened stakeholder expectations, A few years ago we began to shift how business leaders must be concerned with how we thought about corporate responsibility. We purpose can boost innovation and brand value, realized that people did not find much value in but it must also go deeper. For employees, volunteering one day a year. They want to find purpose is a way to bring meaning to their work purpose in their work every day – it needed to and understand their contributions both to the be a part of their job. Similarly, the firm needed company and to society. to commit to help solve one of society’s greatest Businesses need to ensure purpose is problems, but also choose something that was not just a well-crafted tagline, but a real aligned to its business priorities.

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Access Your Potential (AYP) was born out of this idea. Our leaders understand that, given the pace of technological change and how it’s reshaping business, we need to start digitally upskilling our own people now. The U.S. Department of Labor estimates that by 2020, there will be a million technology jobs that cannot be filled because people won’t have the required skills. We’re delivering on our purpose by helping everyone we employ build those skills regardless of whether, in the future, they work for us or for somebody else.

AYP is an extension of our commitment to our people. We know that the students we impact will soon be the people driving our workforce and we are committed to teaching them the technology skills and financial literacy they need to succeed.

Is diversity and inclusion a part of purpose and how critical is it to have a diverse and inclusive workforce?

Absolutely. Being purpose-led means looking beyond the impact of our client work to the broader trends that are impacting our business and our people, such as the negative impact of implicit bias.

Right now, demographics are changing.

By 2030, the majority of young workers will be people of color. Gen Z is the most racially diverse generation in American history – almost half are a race other than non-Hispanic white.

In 2044, whites will become the minority for the first time, so we know we need to attract a more diverse workforce or we won’t have enough people to fill our workforce at all.

Studies have also consistently shown the financial benefits of diversity in the workplace.

Companies will see higher returns than their peers when they have more people of color and women help to drive innovation and creativity well more than just having a homogenous leadership team.

Yet, progress in diversifying America’s businesses is happening too slowly. This is why our CEO has been so focused on starting CEO Action for Diversity and Inclusion in order to engage top business leaders in honest discussions about how to create a truly inclusive workplace.

Being a purpose leader means creating a workplace where people feel included and psychologically safe. It is absolutely critical for them to be vulnerable, experiment, and collaborate in a meaningful way for impactful innovation to take place as well as for employees to feel a sense of fulfillment.

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VOLUME 42, NUMBER 1

Helping businesses stay in business.

Learn more at argolimited.com.

Human Capital

Risk Management

An Interview with Kara Helander, Managing Director and Chief Inclusion and Diversity Officer, The Carlyle Group, L.P.

An Interview with Heather Mitchell, Partner, Managing Director and Global General Counsel - Investments, The Carlyle Group, L.P.

FIRM BRIEF The Carlyle Group (carlyle.com) is a global alternative asset manager with $212 billion of assets under management. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – corporate private equity, real assets, global market strategies and investment solutions. The Carlyle Group employs more than 1,600 people in 31 offices across six continents.

Kara Helander

EDITORS’ NOTE Prior to joining Carlyle, Kara Helander was a Managing Director at BlackRock where she led the firm’s global inclusion and diversity efforts, and philanthropy initiatives. She founded the Science of Diversity and Inclusion (SODI), a coalition of top companies and behavioral scientists working to design and test new approaches to accelerate diversity and inclusivity in the workplace.

She also led CSR at Barclay’s Global Investors (BGI).

Prior to BGI, Helander launched and led the Western Region for Catalyst in Silicon Valley. She serves on the Board of Directors of Leading Educators and received her B.A. from Vanderbilt University and an M.B.A. from The Wharton School at the University of Pennsylvania.

Will you discuss your role at Carlyle and your key areas of focus at the firm?

In this newly created position, I lead the firm’s inclusion and diversity efforts, helping to ensure that Carlyle attracts, develops and retains top talent. I also focus on increasing board diversity at our portfolio companies.

This is an amazing opportunity to have an impact on Carlyle, on our portfolio companies and on the broader society, given Carlyle’s reach.

Carlyle places a major emphasis on diversity and inclusion. Will you highlight these efforts and how engrained they are as a part of Carlyle’s culture?

Seeing opportunities and seizing them is fundamental to success in our business. Diverse and inclusive teams can tease out ideas from every angle to generate competitive business insight. There is abundant evidence that diverse and inclusive teams outperform in execution, so it is very important that we have people with diverse perspectives, knowledge bases, interests, passions and cultural identities. These differences in what we know, in how we see the world and in the models we use to draw insights are critical to our success.

Our co-CEOs, Glenn Youngkin and Kewsong Lee, have made inclusion and diversity a priority. If a firm doesn’t have that leadership commitment, change simply will not happen.

The firm has made meaningful progress over the past five years.

For example, women hold 23 percent of our senior positions (Principal/ Partner) in the U.S., compared with an industry average of 9.4 percent.

These leaders run major investment groups and functions around the globe. In addition to the women profiled here, Sandra Horbach is Co-Head of U.S. Buyout and oversees our two largest funds. Lauren Dillard leads our Investment Solutions business. Georgette Kiser is Head of Global IT. How important are metrics to track the impact of Carlyle’s diversity and inclusion programs?

Metrics are absolutely key. They determine where you need to improve; they help monitor progress; and they strengthen accountability. However, metrics alone are not enough. They represent one of four key ingredients to driving progress in inclusion and diversity. Unambiguous leadership commitment is essential. Without it, progress is an uphill battle. Increasing D&I is important, so people across the firm need to understand “why it’s important for me” and be inspired to change behavior. Finally, education combined with tailored reinforcements ensure that everyone knows the steps they can take in their day-to-day and are reminded to act.

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28 LEADERS

Heather Mitchell

EDITORS’ NOTE Since joining Carlyle in 2002, Heather Mitchell has served in a number of roles in the legal department. In 2005, she transferred to London to serve as General Counsel for Europe.

In 2015, she was named Global General Counsel for Investments. She is a member of the executive Risk Management Committee. Prior to joining The Carlyle Group, Mitchell was an associate with the law firm Akin, Gump, Strauss, Hauer & Feld, LLP and she previously worked at Kaiser Group International, Inc. as Vice President, Corporate Counsel. She received her undergraduate degree from the State University of New York at Binghamton and her J.D. from the Cornell School of Law.

Will you discuss your role at Carlyle and your key areas of focus at the firm?

I wear several hats at the firm. I am Global General Counsel for Investments, which means I manage a team of lawyers who work closely on each investment the firm makes across all geographies and investment strategies.

I am also head of the EMEA region from a management perspective.

I manage the London office and work closely with the heads of roughly 12 fund families in the region to help solve problems their teams face every day in an increasingly competitive market in increasingly uncertain times.

How critical is it that the General Counsel role is deeply engaged in business strategy?

We feel it is critical, and my involvement in business strategy stretches from the earliest stages of consideration of a new business line or geography through the structuring and integration of it on the Carlyle platform, to the everyday functioning of that unit. Combining the utmost commerciality with appropriate risk management and mitigation is my most important priority.

How do you define the Carlyle difference, and what has made the firm an industry leader?

First and foremost, it is the Carlyle culture and its personnel. The universal dedication to “One Carlyle” allows us to drive exceptional value creation through our global footprint leveraging the operational expertise we have honed over decades. We have built strong local relationships through our extensive network of investment professionals worldwide, and we have deep in-house expertise and rigorous due diligence and compliance processes which allow us to act fast to execute on transactions as well as support our portfolio companies.

You joined Carlyle in 2002. What has made the firm a place where you have wanted to spend so much of your career?

In my 16 years at Carlyle, I have been given many jobs to execute from our three largest offices: Washington, London and New York. While I have spent most of my career at the same firm, my ever-evolving and growing responsibilities have felt as though I have changed jobs many times over these 16 years. As important as the substance of the work has been, the people I work with – at every level and function at Carlyle – make the most difference. As a manifestly inclusive company, the diverse and incredibly talented workforce we are able to attract and retain make working at Carlyle a real privilege.

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VOLUME 42, NUMBER 1

Investing in China

Secondary Transactions

An Interview with Ling Yang, Managing Director of Asia Buyout, The Carlyle Group, L.P.

An Interview with Sarah Schwarzschild, Head of Real Estate Secondaries and Managing Director of Metropolitan Real Estate, The Carlyle Group L.P.

EDITORS’ NOTE Ling Yang is a Managing Director advising on Asia buyout opportunities and is based in Shanghai. Yang began her career at Carlyle focusing on healthcare investments for the U.S. Buyout group and joined Carlyle Asia in 2011. Since joining Carlyle Asia, she has advised on private equity investments in healthcare, consumer/retail and financial services sectors in China. She was formerly a principal with KKR Asia. Prior to that, she worked in investment banking at Goldman Sachs in the U.S. Yang graduated summa cum laude with a B.A. in economics from Smith College and earned her M.B.A. from Harvard Business School.

Ling Yang

Will you discuss your role at Carlyle and your key areas of focus at the firm?

I am a managing director at Carlyle Asia Buyout, advising on our healthcare investments in Greater China. I started with Carlyle’s U.S. Buyout team in the healthcare group in New York and returned to China after having spent many years studying and working in the U.S. When I first joined Asia Buyout, I became a generalist and advised on investments in consumer retail, financial services and logistics industries.

Meanwhile, as our Asia team tried to specialize more, my background in and passion for healthcare brought me back to that focus. Carlyle is one of the most active large-ticket investment funds in healthcare in China, having invested in and helping to build a number of healthcare services, medical device, pharmaceutical and IVD leaders.

Will you provide an overview of Carlyle’s history and heritage in China?

Carlyle was one of the first global PE funds to enter China in the late 1990s. When we first entered China, we tried to deploy the same control deal approach that we were already very good at in developed countries. We soon discovered China wasn’t ready for control deals as businesses were state-owned or run by first-generation entrepreneurs who were in their prime. Carlyle adjusted its strategy and engaged mostly in significant minority investments and worked closely with founders and management teams to share our knowledge and resources to help them grow their businesses. Carlyle has invested in about 90 companies and deployed billions of dollars in the process. More recently, we are finding that control deal opportunities are emerging in China. Carlyle has already done three, including the buyout of McDonald’s China together with several partners, and the buyout of a clinical labs business also with a key strategic partner. I think China’s private equity market is starting to mature gradually to be more like the U.S. and Europe. Funds with control deal expertise and deeper operational knowhow will have an edge for the next ten years.

Is there close coordination from country to country and region to region at Carlyle in order to provide seamless services?

Yes, there is close coordination among Asian countries and across continents with the U.S. and Europe. We are helping a French medical device company to expand into China. Our Indian and U.S. colleagues share knowledge and connections in the drugs space. Carlyle forms crossregion teams to look at acquisition targets together. There are many examples. Carlyle promotes a culture of collaboration known as “One Carlyle.” Everybody contributes and benefits from it. It’s a key strength of a global PE platform.

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VOLUME 42, NUMBER 1

EDITORS’ NOTE Prior to joining Metropolitan, Sarah Schwarzschild led Partners Group’s real estate Secondary team in the U.S. and was involved in management and business development activities for the real estate Secondary practice globally. Schwarzschild received a B.A., summa cum laude, from the University of Pennsylvania and an M.B.A. with honors from the Tuck School of Business at Dartmouth.

Will you discuss your role at Carlyle and your key areas of focus at the firm?

I am a Managing Director and the Global Sarah Schwarzschild Head of Secondaries at Metropolitan Real Estate.

Metropolitan is Carlyle’s real estate private equity multi-manager platform. I joined Metropolitan in 2014 to establish the secondaries business. Metropolitan currently manages more than $1 billon in investor commitments for secondaries and my responsibilities include overseeing investment strategy, sourcing and execution. I also wear several other hats. I am a member of Metropolitan’s Investment Committee, which makes the investment decisions for all of our strategies. Metropolitan has a 40+ person team and I am involved in running the organization on a day-to-day basis. I work closely with our investors to ensure we are meeting their needs. I am also the Co-Chair of the New York Women’s Employee Resource Group.

Will you describe Carlyle’s real estate Secondary efforts?

Secondaries are transactions through which existing interests in funds or assets are acquired, providing liquidity to the original investor.

These types of transactions are an increasingly important part of the broader real estate private equity market with global real estate secondary transaction volumes at $5 to $6 billion annually. However, the secondary market remains relatively inefficient at a time when pricing has increased in the traditional real estate market. Metropolitan is a real estate investor in its DNA and we are highly selective. Whether in secondaries or in our other strategies, we focus on high quality, well-located assets in major markets and work with the most capable local sponsors in the industry.

Will you highlight Carlyle’s sourcing, evaluation and execution of investment opportunities globally?

Metropolitan utilizes a very proactive sourcing effort to find attractive deals for our investors. Underpinning our secondary investment strategy are the market relationships that Metropolitan has cultivated since it was founded in 2002. We also have a global team with market presence in the U.S., Europe and Asia. These are all irreplaceable assets in sourcing, evaluating and executing secondaries. Carlyle’s reach, resources and reputation add to our competitive advantage. Metropolitan can leverage the “One Carlyle” culture and we collaborate with our colleagues in other businesses to both source and evaluate investment opportunities to the greatest extent possible.

What advice do you provide to young people interested in a career in the industry?

First, my mom always told me that you have to shoot to score. This means saying yes to projects and opportunities. My dad told me to never let the turkeys get you down. This means listen to your inner voice and believe in yourself. And, lastly, there is no substitute for hard work. Be thorough and thoughtful.

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LEADERS 29

Putting the Patient at the Center An Interview with Susan Green-Lorenzen, System Senior Vice President – Operations, Montefiore Health System EDITORS’ NOTE Susan Gr eenAre these areas of focus Lorenzen has been associated with intertwined?

Montefiore for over thirty years. She They are all intertwined. We view began her career as a staff nurse the School of Nursing as the future of and progressed rapidly through a our workforce. We work to ensure we variety of leadership positions behave excellent training opportunities fore being appointed Senior Vice for students, we recruit the best candiPresident of Operations in 2009. dates to the school and position those She is responsible for overseeing hosstudents to be successful in the future. pital operations at the Moses, Weiler Our homecare services are very and Wakefield Campuses and The much aligned with all of our hospital Children’s Hospital at Montefiore as services. Keeping patients at the center well as Montefiore Homecare and Susan Green-Lorenzen of everything we do is a key driver of Montefiore School of Nursing. In her success whether we’re talking about amcurrent role she is extremely focused on enhanc- bulatory care, acute care, homecare, training and ing the patient experience and leads projects em- education or any of the other services we provide. phasizing quality of care and improving patient When you look at the emphasis around access to services, as well as the flow of patients ambulatory and homecare today, what will throughout the hospital. the role of the hospital be in the future?

We will always need hospital beds, and our INSTITUTION BRIEF As the academic health sys- goals and objectives are to make sure that we tem and University Hospital for Albert Einstein are ready for patients when they need acute College of Medicine, Montefiore (montefiore.org) is care services, while also doing everything we nationally recognized for clinical excellence – can to support health and wellness, and keepbreaking new ground in research, training the ing people home and in the community. next generation of healthcare leaders, and delivering science-driven, patient-centered care.

Montefiore is ranked among the top hospitals nationally and regionally by U.S. News & World Report. For more than 100 years, Montefiore has been innovating new treatments, procedures and approaches to patient care, producing stellar outcomes and raising the bar for health systems in the region and around the world.

Right now, nursing is an extremely

desirable career.

What have been the keys to the success of Montefiore Health System?

I would say that our success starts with having a clear vision that has been articulated throughout the organization, and then establishing goals, objectives and measurements around that vision. This is supported by our efforts to be a data driven organization. This structure helps us stay focused, sometimes in turbulent times, and contributes to our on-going success and growth.

How do you define your role as System Senior Vice President for Operations?

I am responsible for hospital operations, meaning everything that is happening in the hospitals within the health system.

Additionally, I oversee homecare services and the Montefiore School of Nursing.

30 LEADERS

All of our ambulatory programs, community outreach, homecare services and care management work collaboratively to support the focus on keeping people out of hospitals. On the hospital side, the focus is on making sure we are poised for higher acuity care, providing a higher level of care, and then transitioning people back to their homes. We work in partnership with physicians’ offices and with homecare to ensure a smooth transition as we discharge the patient back into the community.

Is technology enabling a better patient experience or do you worry that technology is taking away the human touch?

At the heart of our business, we’re talking about people, meaning the patients that we care for, the providers who deliver care to patients and all of the associates who work at Montefiore.

I view technology as a tool that enhances our work, since the delivery of healthcare revolves around people and relationships. If we didn’t move forward with an electronic medical record, we would be in the dark ages. We use technology to help us be more efficient, but it should never interfere with the relationship between patients and providers.

Everyone at Montefiore understands that.

For young people today interested in nursing, what do you tell them about the opportunities that nursing offers, and is top talent coming into the nursing profession?

Today, we are seeing an incredible pool of candidates coming into nursing, whether they are just graduating from high school or those moving into a second career who already possess a bachelor’s, master’s, or higher degree in another field.

Nursing is an absolutely phenomenal career for any person and I strongly encourage young people to go into the field. My daughter is a nurse here at Montefiore.

There are wonderful opportunities for nurses beyond bedside nursing such as clinical research, academic, information technology and other corporate roles.

At Montefiore, we have extraordinary talent in our nursing department and our nurses often sit right at the table with senior management working collaboratively to improve services.

We have 5,295 nurses in the Montefiore Health System and I couldn’t be prouder of the quality of talent we have at Montefiore.

Having been in nursing for 40 years now, I have seen the cycles of recruitment. Right now, nursing is an extremely desirable career.

What has made the industry and Montefiore so special for you?

Every day I get up and I know I can make a difference in someone’s life – that never gets old or boring. It’s an exciting time to be in healthcare with many changes on the horizon.

I am so proud of the work we do at Montefiore taking care of our patients. Our staff and physicians do extraordinary work every day. To know that I am a part of that, and to know that in my role I can make a difference in someone’s life, that’s what I find to be very rewarding. I never get tired of that.

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VOLUME 42, NUMBER 1

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Active International

International Capabilities An Interview with Gemma Atkinson, Chief Operating Officer, International Division, Active International

COMPANY BRIEF With 35 years of experience, Active International (activeinternational.com) is a global financial solutions company that drives performance and improves business outcomes for leading brands.

A data-driven company, with media as a core competency, Active operates a full-service omnichannel media agency. In addition to media, Active brings to bear a broad portfolio of competencies such as Asset Disposition/Merchandise Sales, Real Estate, Retail Marketing, Travel and Hospitality, Freight & Logistics, and Lighting. Through the application of its core business model, Active is able to create financial benefits to serve its clients. Active International is based in New York and has offices in 15 countries.

“My belief has always been that culture starts from the very top and, today, culture has become a corporate strategy. In our knowledge-based society, companies require their staffs to be more diverse than ever before. I’ve found that companies that support and encourage diversity are better-rounded and, thus, better poised to serve a diverse marketplace.”

Alan Elkin, Chairman & CEO, Active International

EDITORS’ NOTE Gemma Atkinson joined Active Inter national in 2011 as Head of Business Development, where she developed and implemented sales strategies for advertisers and media agencies. Since June 2018, Atkinson has been International COO and is responsible for helping to set strategy and develop long-term partnerships.

Will you discuss your focus as International COO for Active?

As COO, I spend 50 percent of my time working on the U.K. operation and the other 50 percent focused on developing our international network, Gemma Atkinson which reaches across Europe, Australia, Canada and Mexico.

Our International ambition is to be the corporate trade company of choice, both for our expertise and the way we work. Across International we are committed to investing in our people and developing a culture that celebrates creativity and collaboration.

Our expertise is located across many sectors and we do not fit neatly into one box. This means our breadth and depth of experience enables us to flex, adapt and lead in a changing landscape.

How do you see Active’s future?

The future is full of both possibility and opportunity. After 35 years of global success, we are looking forward to continuing to deliver commercial innovation for our partners.

In the immediate term across International, we are excited to be working on the development of a three-year plan which focuses on our key operating framework. To achieve more and amplify positive business outcomes for our partners, we need to ruthlessly prioritize. Our focus is on building and maintaining meaningful relationships with partners of today and of tomorrow. We will listen to understand and then act. We are borne of entrepreneurs and we want to build a company that continues to think and act in that way every day with every opportunity.

Is there still an education process in international markets when it comes to understanding Active’s services and solutions?

The education process will always be important to Active, and we want people to work with us because they fully understand our offering.

When we meet with clients around the table, with representatives across functions from marketing, procurement, financial and sales, understanding is the key ingredient to a great relationship.

We want people to challenge us and bring us into their business opportunities and challenges.

We have spent a significant amount of time over the past two years in the U.K. going out to our agencies, clients and media partners to ascertain how Corporate Trade can help accelerate their businesses. The more we understand their business, the more we can deliver material and meaningful solutions.

We have spent time across the countries refining our internal values and understanding how these can galvanize people to think about what is possible.

One of the values that resonates with me, and that demonstrates how Active continues to transform, is creativity. The team at Active has the creativity to wrestle with ideas, to stimulate different ways of thinking about challenges and opportunities and to arrive at solutions that add value through insight.

Simon Sinek has a quote that I think sums up our approach to our leadership, to our talent, to our culture and to our business practice: “Leadership is not about being in charge, leadership is about taking care of those in your charge.”

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32 LEADERS

VOLUME 42, NUMBER 1

A Commercial Innovation Company

Legal Expertise

An Interview with Lisa Brown, Global Chief Strategy and Chief Business Development Officer, Active International

An Interview with Dayna Frank, General Counsel, Active International

EDITORS’ NOTE Prior to joining Active in 2012, Lisa Brown served as CEO of Richard Petty Motorsports, CEO of Maverick Communications, President of Interactive Marketing for AOL, CEO and President of Electronic Commerce Solutions a IAC company, and Senior Vice President, Group Sales and Marketing for TeleRep, Inc a Cox Communication company.

How do you define the Active of today?

Active was formed 35 years ago with the mission of bringing a differentiated, scalable and client centric form of corporate barter and trade. Our trades create spread, and we use that spread to Lisa Brown create financial benefits to clients, and we derive our profits from the utilization of our spread. We are a no-fee model and we continue to be the leader in that area today.

Given our great client base and established trust, we have since evolved to a commercial innovation company, which now involves utilizing our trading model to provide our clients customized solutions that improve their bottom lines at scale.

Our client-centric approach has led to the development of a suite of products and services that go way beyond the borders of what would be known as corporate trade.

We now describe ourselves as a commercial innovation company, because we believe we have developed products and services that are quite innovative and that change business outcomes for brands and allow them to innovate while they operate.

How important has it been to engage those who have worked at Active for many years in this transformation?

We believe that we have become a best-in-class corporate trade company and the leader in corporate trade simply because of our people and the ability to execute.

Prior to an official launch, we spent two years working with our more than 600 employees worldwide and getting their thoughts and buyin so that they are completely comfortable with what we developed and our evolution into a commercial innovation company.

For instance, our media practice, which was designed to provide fulfillment support to corporate trade transactions, is now a full-service media agency with everything from data and planning capabilities through to measurements and optimization. It serves both our clients and our agency partners.

Will you discuss Active’s culture of being entrepreneurial and disruptive?

Developing the type of corporate trade company Alan (Elkin, CEO) developed stems from not only the model but also the leadership.

Alan and Arthur (Wagner, President) are the type of executives who are completely open to entrepreneurial ideas and, thus, attract people who are entrepreneurial and keenly interested in being ahead of the marketplace.

In a world of disruption, Active is certainly a disruptor. When Alan and Arthur started the company, they came up with an idea for corporate trade and barter that was differentiated from the competition. They started the business with that disruptive notion 35 years ago.

We have a company where being entrepreneurial and disruptive in an effort to serve clients in a more distinctive way is in our DNA. This makes us uniquely suited to deal with the disruptive marketplace that businesses are dealing with today.

Staying ahead of the marketplace has also always been in our DNA. We have a group of people that like to be able to offer very smart and entrepreneurial ideas that are designed to change business outcomes or brands and, as we do this for our clients, we also do it for ourselves.

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VOLUME 42, NUMBER 1

EDITOR’S NOTE Dayna Frank is General Counsel for Active International and provides legal counsel and support to Active’s global offices, including contract negotiation, litigation, subsidia r y creation, new product launches, and policies and procedures. She also serves as Secretary to Active.

She joined the company in 1996. Frank earned her L.L.M. in International Business Law, with merit, from the London School of Economics and Political Science. She received her law degree from New York Law School and a B.A. from the University of Buffalo. Frank is licensed in NY and NJ and is a member of the American Bar Association and the New York Bar Association.

Dayna Frank

How do you define the role of General Counsel at Active?

It’s very broad – the legal department pervades the entire company, from any of its new ventures to its branding and its global outreach. We do an analysis of the legal business risks when we’re looking at moving into a new area. If we’re looking at acquiring a company, we will evaluate how it fits into our overall company and do an analysis of the structure of the company to determine whether it will fit into the business as a subsidiary or an affiliate. We also help structure how we acquire new businesses.

Intellectual property is also under the purview of the general counsel, so we protect the Active brand on a global basis through trademarks and registrations as well as patents and copyrights.

Has the general counsel role become more complex as Active has expanded?

I don’t know that it has become more complex, but I tell my colleagues that being an attorney working at Active is fascinating. I work with brilliant, creative people who find solutions to problems and I have to provide the legal drafts around their work to ensure that we are protected.

How do you define Active’s business as the company has evolved?

I’ve always defined Active as a financial solutions company – we had Active Capital and we were doing structured finance from early on.

It’s just that when we do our initial pitch and try to explain what Active does, barter comes up. People could see that as a bad word, but it’s the oldest way of doing business and it’s easy for someone to fundamentally understand that.

Our structures are all around financial solutions. Corporate trade and barter are financial solutions – it’s how we package it that makes it a more sophisticated package. At day’s end, though, it’s corporate trade and a financial solution.

Active was built with an entrepreneurial spirit. Will you discuss the entrepreneurial culture at Active and is that harder to maintain at the size and scale of the company today?

It’s harder to manage from the general counsel’s office. It has always been the hardest issue for legal to manage. It’s an administrative nightmare trying to manage the facts, the inventory and the solutions.

However, the entrepreneurial spirit is what makes it fun and client-centric and what drives us to be the leader in the industry.

All the questions that come up make my job harder but more fun.

In the end, it’s all about what the client needs and what the company needs to grow.

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LEADERS 33

Financial Planning and Analysis

Agency Partnerships An Interview with Bethany Harris, Executive Vice President, Agency Partnerships, Active International

Bethany Harris

EDITORS’ NOTE Bethany Harris joined Active in 2009 and has overseen Active’s business development operations strategies, as well as revenue analytics across the products offered to clients through Active’s trading model. In this role she liaises sales, client services, agency relationships, Active’s various product units and operations. With 18 years of agency and client-side experience prior to joining Active, Harris’ background includes working with brands such as Hasbro, Dairy Queen, W Hotels, Tropicana and SoBe Lifewater. Her agency roles were at Grey Advertising, G-Whiz Youth and Entertainment Marketing and The Arnell Group and on the client side, she was the Consumer Marketing Director at Penguin Publishing.

Will you discuss your new role leading Agency Partnerships for Active?

I oversee how Active partners with agencies to jointly bring more value to our clients. We also help agencies in other ways by providing services or capabilities that they might not be able to provide themselves.

Active also helps agencies understand the marketplace a bit more, as we have a very unique purview given we are inside so many agencies and clients.

How important is it when building relationships with the agencies that Active is seen as a partner and not a replacement for their employees?

It’s critical. I’ve been on the agency side and understand how strange it feels to have someone come in and start executing your buys. I find going into the agencies, explaining how the barter model works and taking them through how it’s particularly going to work for their client is key. Once they see what it can do for their clients, it’s easy for them to get on board and be a part of it. They also understand that they maintain control over the buys.

Agencies often see us as a threat, and we don’t want that – we want them to understand we’re working together. The important thing is for them to provide us with the media specifications they would have presented to their clients without us and for us to meet those specifications while allowing their clients to pay on trade or to find another scenario that will create savings for that client.

The more the agencies see what value we lend to their clients and what more the clients can do, the easier it becomes to work with them. In best cases, they will introduce us to more of their clients.

Active is a metric focused company. In these agency partnerships, how critical is it to track impact and show the value that Active is bringing?

It’s critical, because we usually start off with a test and we need to prove ourselves. It’s nice because Active can always prove itself with a calculator.

As this happens, clients work more and more with Active. It works.

That is why we carefully analyze upfront how much value we can create, then as we start working on their business we monitor how closely we can meet or beat that value. We also provide them clear reporting on the value created for each client.

What are your key priorities as you look to the future?

The first focus is managing the clients and making sure they’re getting the value they need.

We’re finding that as more agencies work with us, they like us. We perform really well and there is a lot of trust built and they want to work more with us.

We’re growing those agency services going forward based on what the agencies are telling us they need.

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34 LEADERS

An Interview with Lana Ilchenko, Senior Vice President of Global Financial Planning and Analysis, Active International

Lana Ilchenko

EDITORS’ NOTE Lana Ilchenko joined Active International in 2003 as part of the media team. In 2005, she moved to the finance department where she had a variety of roles until eventually becoming Head of U.K. Finance. She completed industry training to specialize in the financial side of the business and is an FCCA qualified accountant. She started developing an FP&A role for the International division 3 years ago with her current role of SVP, Global FP&A starting in 2018. Ilchenko graduated in 2000 in Ukraine with a master’s degree in international economics, before moving to the U.K., and also holds an MBA from Edinburgh Business School.

What attracted you to the finance side of Active’s business and what is the focus for financial planning and analysis?

Active was my first job. I started on the media side where I learned how the business was operated. I then became a media trader in our U.K. office. However, my training is in finance and Active’s business model is so fascinating that I wanted to experience the finance side of it.

Since I started in media and understood how the commercial side of the operation worked together with my finance experience, Active gave me an opportunity to work with our International Division leadership to develop a new area – financial planning and analysis.

I began doing this for the U.K. office and have since been tasked with expanding this to other international offices, culminating in making a move to the U.S. to handle this role on a global level.

Is technology playing a major role in how you are conducting analysis and will you discuss the investments Active has made in technology?

We have a dedicated IT department that builds much of our technology in-house, mainly because of our very complex business model. We can’t buy software off the shelf. If we do, we still have to adapt it to our business model.

Our original objective was to make sure we could capture information from every office globally and apply it to satisfying the local clients’ needs. Once that was achieved, we then invested in platforms to capture all of this global information to analyze and use it to predict the future and make our clients’ lives easier going forward.

How does financial planning and analysis help provide customized solutions for clients?

The most important motto for this company is “helping clients achieve more,” which is the whole reason behind this new role. We work with our clients to understand what the problems are and then try to resolve them.

We don’t always know in advance what the problem is going to be.

However, creativity at every single Active office is deeply encouraged.

Even though we have a basic business model, it evolves as necessary.

The solutions we offer clients are completely tailored to those clients.

The issue is collecting the data and making sure we can have a system that will process all of it and make our planning for the future easier.

Until recently, we didn’t have a coordinated approach to collecting all the data on everything we do.

That is where I have come in. I have been asked to make sure that we can collect the data, analyze what we do and, as a result, make better decisions for ourselves and for our clients going forward.

It’s a work in progress. It has been streamlined, but because ours is a complex business model, there is a lot of work still to be done.

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VOLUME 42, NUMBER 1

Creating Leverage

Operational Excellence

An Interview with Melissa Keller, Executive Vice President, National Media, Active International

An Interview with Liz Margolis, Executive Vice President, Corporate Operations and Planning, Active International

EDITORS’ NOTE Melissa Keller assumed her current post in May 2016. Prior to this, she was Executive Vice President-Channel Investments for Havas Media from July 2007.

You spent much of your career on the agency side of the media business. What excited you about joining Active and has it been what you expected?

Active International takes a very different approach from an agency – however, the goal of delivering value to clients and being a good media vendor partner is the same. What excited Melissa Keller me about joining Active was their ability to create leverage on both sides: media vendors and media clients. Active’s ability to marry the two sides in a successful model has been around for more than 30 years. When every major agency holding company now has a trading arm, you know the model works.

What surprised me was the dizzying array of all we offer and our ability to create leverage for quality media through everything from securing hotel rooms, in store retail pop-ups, helicopters, jets, building leases, entertainment boxes at arenas, buying unsold inventory, to furniture for new office space. Active can help companies with access to anything in exchange for access to quality inventory or the ability to place your media schedule in quality media.

How is Active adapting to the evolving media landscape?

Active is very astute at noticing trends in the marketplace and evolving with them. Our tool kit of offerings is ever expanding to serve our clients and deliver value through leverage.

Because of the unique space we occupy with a well-rounded client roster matched against an impressive list of media vendors, we are able to see where emerging areas are taking shape and gaining traction early.

This unique position allows us to get in early and create leverage and remain relevant to our clients on both the advertiser and vendor partner sides.

Will you provide an overview of Active’s media capabilities?

From a trading perspective, Active International offers the broadest range of capabilities in the marketplace from traditional linear TV, to audio, local, OOH, print, DR, and unwired to media disciplines under the wide umbrellas of digital and advanced TV. How broad is Active’s client base in media and where do you see the greatest opportunities for growth?

We have a robust cross section of clients including those from QSR, CPG, travel, lawn and garden, retail, auto care, etc. – we cover a pretty expansive number of categories.

From a growth in offerings perspective – I’m still a TV girl at heart and believe in the power of immediate reach and the brand building capabilities live TV delivers. What’s interesting is watching brands that were started in the digital only space realize that in order to take their business to the next level they need to invest in brand awareness tactics. We all know that TV struggles with measurement, but not with content. Measurement is not getting remedied fast enough for the marketplace, but we can’t let the pursuit or perfection hold up smart work for our clients. While we are already working in audience-based buying, addressable, OTT and VOD, a much greater emphasis will be placed there.

From an advertising client perspective, I don’t really see any category that is off limits based on our model – if you have a need, we can help you.

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VOLUME 42, NUMBER 1

EDITORS’ NOTE Liz Margolis is responsible for leading operational activities for Active’s U.S. Operation. She joined Active in 1992 as a media assistant and has advanced into positions with incr eased r esponsibility, including Media Coordinator, Buyer, Account Director, Systems & Operations Manager, and Associate Director of Media Operations. Most recently, she was SVP, Director of Media Operations. She received a B.A. with a specialty in international business from St. Thomas Aquinas College.

Will you discuss your career progression at Active and how your role has evolved?

When I first started, the company only had about 70 employees. I started in an entry-level position as a media assistant. Through the years, we grew at a rapid pace and as we evolved into new areas of focus, we had to also institute new ways of reporting and transacting. My role evolved as we grew. Most of the positions I have held have been self-created based on the evolving needs of the organization.

I was at the forefront of deciding what processes and improvements we needed, which naturally led to me running the overall operations of the organization.

How critical has it been for your role to have close collaboration with Active’s business leaders and to be a part of business strategy?

It’s vital. I have earned the trust of my colleagues because they understand that my focus is on growth, innovation and the development of others. My role spans from technology to all facets of the organization today. It’s critical that all parties align on the growth strategies we have, and that we have a well-documented plan that has buy-in from all levels.

It is very important that we develop the tools to support these growth strategies.

How do you define Active’s business today?

We provide customized solutions for organizations. We position ourselves with the client at the forefront of how we operate. We are here to help our clients achieve more. Corporate trade is within our DNA and it is the backbone of what we do daily. However, we are much more than that; we build deep relationships with our clients and media vendors in an effort to deliver solutions and insights that are valuable and actionable.

How meaningful it is to be part of a company that values diversity, especially for young people joining Active?

I share my experience at Active with everyone so they can see what is possible. All employees have the potential to grow. If they’re good, solid workers who are kind and go the extra mile, the company will be good to them.

When it comes to diversity, the company chooses to focus on who is best qualified for the job. In Active’s case, there are a lot of women who are qualified and are empowered to share ideas for the growth of the company.

What are your priorities going forward and are you happy with the progress you have made in your role at Active?

I don’t know that I will ever be satisfied. With technology changing so fast, something that worked six months ago might not be the best solution any longer. We have to continuously look at the processes, infrastructure and talent and evaluate whether we’re still as effective as we need to be.

Liz Margolis

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LEADERS 35

Media Capabilities

Travel Solutions

An Interview with Melissa Moschetti, Senior Vice President, Local & Unwired Media, and Senior Vice President and Managing Director, XACTV Network, Active International

An Interview with Elizabeth A. Topazio, President and Chief Legal Officer, Active Travel

EDITORS’ NOTE Melissa Moschetti joined Active International in September 2006 as an account coordinator and media buyer and then progressed through a number of roles within the company.

She graduated from Fordham University’s College of Business Administration with a B.S. in business with concentrations in marketing, management and globalization.

Will you discuss your role at Active and how you focus your efforts?

I sit in our media division, leading teams in our local television and radio, as well as the Melissa Moschetti unwired group.

My teams work with our clients and agency partners to deliver on their full media objectives while driving the financial solution possible by Active’s trade model.

I am fortunate to work with a team of media professionals who are dedicated to implementing and delivering around the clock on behalf of all of our clients.

Will you discuss the opportunities that Active’s Unwired platform presents?

We constantly look at the media industry, and how media is being transacted and consumed; this led to our creation of a product that would help marketers and advertisers solve some of the challenges that they faced in the media landscape, namely increasing costs and declining ratings.

We found that we could access local inventory commercial time that runs in each of the different markets and piece it all together to create a national footprint, providing marketers with a different way to buy media. This eases the cost issue because it creates more inventory.

As to ratings, we ensure our marketers 100 percent delivery, because we can plan for it with our technology.

We learned quickly that we could build the early business in Excel but certainly we could not scale it that way. We invested in technology and developed a proprietary platform that allows for our clients to transact in this space with ease and transparency. This is an example of Active’s goal to Achieve More for our clients.

Are the full range of Active’s capabilities and the size and scale of its media power and influence well understood?

Active definitely has a great reputation as a leader in the corporate trading arena. Our immense capabilities are probably less understood than we’d like, which we are addressing.

How valuable is it to maintain an entrepreneurial culture that has always been at the core of Active?

It’s invaluable. The leaders here have always given me lots of leeway, and it’s led to many great ideas for our marketers, one of which is XACTV. They ask for my input in figuring out how to make ideas work, and we have a two-way conversation. Entrepreneurship is present throughout the organization: if someone has an idea, it can easily be surfaced.

In our group we often say that no one is smarter than everyone, so if someone is the only one talking, then we’re not going to get the best ideas or outcomes. We really foster that concept and ensure that everyone shares what they’re seeing from their interactions with clients, partners and vendors.

If we don’t continue to do that every day, we’ll become stagnant. Active was founded by entrepreneurs so that spirit is strong here.

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36 LEADERS

Elizabeth A. Topazio

EDITORS’ NOTE Elizabeth A. Topazio is President and Chief Legal Officer of Active Travel, a division of Active International. She has more than 25 years of business and legal experience negotiating and structuring corporate trading transactions. Prior to joining Active in 1994, she was an M&A associate at Orloff, Lowenbach in New Jersey from 1992 to 1994, and at Dechert LLP in Pennsylvania from 1988 to 1992. She’s a member of the New Jersey, New York and Pennsylvania bars and graduated from Villanova University Law School with a J.D., cum laude, and Georgetown University, Edmund A. Walsh School of Foreign Service with a B.S.F.S., magna cum laude. She participates in a variety of charitable endeavors and is on the Advisory Board for Animal Alliance of New Jersey.

Will you discuss the solutions Active Travel provides and how these offerings have evolved to the current needs of clients?

Active Travel uses corporate trading to provide commercially agile solutions for its hospitality clients so that they can achieve more. Generally speaking, its hospitality clients include travel suppliers (predominately hotel owners, REITs, and management companies as well as airlines, rental car companies and cruise lines), major hotel brands, and company clients purchasing travel.

Since for the past 8 years the hospitality industry has enjoyed a trend of record growth and increasing ADR and occupancy, while at the same time having to adapt to significant marketplace disruptors, including emerging digital technologies and evolving consumer mindsets and behaviors, Active Travel has had to continually adapt its solutions to stay aligned with its clients’ respective evolving needs, challenges and goals.

For its travel supplier clients, which historically engaged in traditional corporate trading by using their unoccupied/unsold inventory as “in kind” payment for needed media, goods and services, Active Travel has evolved an “all cash” corporate trading solution which shifts market share/new cash business (transient and new corporate groups) into their hotels at normal ADR to increase RevPAR. For hotel brands, which for the most part no longer own their hotels, Active Travel has evolved corporate trading solutions which extend their brand media budgets at no additional costs or which fund programs benefiting their franchisees. For company clients purchasing travel, which mainly continue to seek solutions to extend their budgets and deliver savings, Active Travel has evolved to accommodate the various internal and external digital platforms utilized by them when purchasing travel goods and services.

Are there standard solutions that Active Travel offers or are these offerings tailored for the specific client need?

On the whole, solutions are constantly evolving and being customized.

At present, broadly speaking, clients purchasing travel want savings, and travel suppliers want increased profits. How Active Travel delivers the value to both is where the creativity comes into play, especially since one would think it would be impossible to deliver savings to purchasers while at the same time higher profits to suppliers. Since corporate trading at its core is a flexible derivative financial model, Active Travel is able to structure solutions to deliver seamlessly the distinct value desired by both.

Is there close coordination between Active Travel and the other parts of Active’s business?

Active Travel is an integral part of the offerings provided by the company’s media and sales teams to their clients and was established as a core offering at the inception of the company. Over time, the company significantly expanded and evolved additional offerings. By working in close coordination with and drawing upon the collective expertise and creativity of the company at large, Active Travel has been able to rapidly and proactively evolve and remain relevant to its respective clients.

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VOLUME 42, NUMBER 1

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Culture and People

A Commitment to Culture

An Interview with Michele Cusack, Senior Vice President and Chief Financial Officer, Northwell Health

An Interview with Maxine Carrington, Deputy Chief HR Officer, Northwell Health

I N S T I T U T I O N B R I E F N o r t h w e l l H e a l t h (northwell.edu) delivers world-class clinical care throughout the New York metropolitan area, pioneering research at the Feinstein Institute for Medical Research, and a visionary approach to medical education, highlighted by the Donald and Barbara Zucker School of Medicine at Hofstra/Northwell and the Hofstra Northwell School of Graduate Nursing and Physician Assistant Studies. Northwell Health is the largest integrated healthcare system in New York State with a total workforce of more than 66,000 employees.

Michele Cusack

EDITOR’S NOTE Michele Cusack oversees Northwell Health’s day-to-day finance operations, in addition to managing various corporate financial operations and operational teams across the organization. Previously, she was deputy CFO. Cusack is a CPA and also has an administrative role on the Finance and Audit Committees of Northwell’s Board of Trustees. She is a member of Hofstra University’s Zarb School of Business Dean’s Advisory Board. Prior to Northwell, Cusack worked at Deloitte & Touche.

She holds a B.B.A and an M.B.A. from Hofstra University.

Will you discuss the CFO role at Northwell Health and how critical is it today that this role is deeply engaged in business strategy?

The environment is changing quickly and that makes every strategic decision today that much more important to position us for success in the future. The CFO role provides the rapidly changing financial dynamics associated with all of the various options and opportunities we wish to pursue and ensures that the strategic road we are on is a financially viable one.

Is it more challenging today to plan long-term given the transformation taking place in the industry?

Yes. The long-term planning behind our vision and strategy hasn’t changed. It’s just the steps we’re taking along the way that are challenging and require us to think differently about how we approach things.

The overall strategy is also impacted by elements like government reductions in how we get paid, new regulations or compliance requirements that we have to put in place, and other such factors.

Will there only be a handful of very large health systems as you look to the future?

I do believe there will mainly be large health systems because they have to be able to deal with regulation and compliance, and also be able to leverage the scale and cost efficiencies across the organizations. For instance, we have one IT department that is able to function across all our platforms and facilities – and leverage that IT cost.

In the long run, as the environment continues to change with further care coordination, new market entrants and pressure on price, achieving economies of scale and the use of technology to improve efficiency will be critical to succeed. The inability to take advantage of this will pressure independent and local hospitals.

Northwell Health is known as an industry leader and is regularly recognized with awards. What makes Northwell Health so special?

The culture and the people. It gives us a tremendous advantage.

The collaboration that it helps inspire and allows us to innovate has been something that has kept me here and brings industry top talent here.

When we have a dynamic leader like Michael Dowling, it keeps everyone energized and following the path.

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38 LEADERS

EDITORS’ NOTE Maxine Carrington oversees human resources operations and is responsible for the design and implementation of strategic human resources initiatives and programs at Northwell Health. Additionally, she serves as an adjunct instructor at the Center for Learning and Innovation, Northwell Health’s corporate university. In 2013, she was awarded Human Resource Executive magazine’s Rising Star in HR Awar d. Carrington holds a bachelor’s degr ee in political science and Africana studies and a master’s degree in educational administration and policy studies from the Maxine Carrington University at Albany in New York. She also obtained her J.D. from New York Law School and is a licensed attorney.

Will you discuss your previous role as Western Region HR Officer for Northwell Health?

Our Western Region is comprised of our sites in Manhattan, Westchester and Staten Island, some of which joined Northwell only a short time ago.

A primary function of my role has been helping our teams in these geographies to further connect and integrate. We’re ensuring they have access, not just to internal resources within the region, but also to our Northwell shared services resources to help drive aligned and effective human capital strategies in key areas such as employee experience, talent management, recruitment, and workforce planning.

This alignment in strategy and experience is critical to powering our collective success and competitive advantage in the industry.

As you transition to your new role as Deputy Chief HR Officer, will you discuss the focus Northwell Health places on culture?

We have a truly amazing and unique culture, intended to reflect our mission and values, and enable us to achieve our goals. We do work hard, however, to continually evaluate its effectiveness and alignment with the needs and desires of our workforce and customers.

My new role will facilitate an even greater focus on key cultural drivers such as employee experience, organizational development, internal mobility (how our team members access and transition into opportunities in our organization), diversity and inclusion, and corporate social responsibility. In all of these areas and especially in how we think about diversity and inclusion, we want to leverage and maximize the contributions of all members of our workforce in addition to continuing to demonstrate our investment in them.

How critical is having a diverse and inclusive workforce to the continued success of Northwell Health?

It has long been proven that diverse workforces and inclusive operational practices add value and lead to better working conditions and organizational outcomes.

Fully realized, the insights and contributions of a diverse workforce enable us to fulfill our mission and values, grow and evolve, and assure our reputation as a best place to work and receive care – for all.

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VOLUME 42, NUMBER 1

Ensuring Employee and Patient Safety An Interview with Lorraine Chambers Lewis, Vice President of Employee Health Services (EHS), Northwell Health

EDITORS’ NOTE Lorraine Chambers Lewis provides vision, direction, and oversight for the 17 Northwell Health EHS offices that provide comprehensive occupational health services to its more than 67,000 team members. Her career with Northwell Health began in 2002 as the Supervising Physician Assistant of LIJ Medical Center’s Emergency Department. In 2007, she was appointed Northwell’s Corporate Director of EHS. In 2012, she led the development of Northwell Health’s first Injury Management and Prevention team. She graduated with distinction from Hofstra University with an M.B.A. Lewis has also earned the distinction of board certification in healthcare management by becoming a Fellow of the American Lorraine Chambers Lewis College of Healthcare Executives. A long-standing member of the Association of Occupational Health Professionals in Healthcare, Lewis now serves as President of the New York Chapter.

Will you provide an overview of Employee Health Services at Northwell Health?

Employee Health is ultimately about impacting the health and safety of our workforce and ensuring a safe patient care environment. As we bring new team members into our organization, we make sure that they don’t have any specific issues that might be a danger to our patients.

We also want to be sure that team members are protected as they work in healthcare settings. By doing those two things, we help keep all the team members healthy and productive.

For instance, we provide immunizations and training on respiratory protective equipment for our staff to help them maintain their health by protecting them from certain pathogens they may be exposed to in the work environment.

How critical is it to develop and maintain engagement with your team members after they join Northwell?

Throughout their career at Northwell Health, it’s critical for us to stay engaged with all team members. There are multiple services that we provide that will be required of them in the future for patient safety reasons as well as other recommended services that help keep them safe and healthy. We need to establish this relationship early.

We want them to understand that we are here for their occupational health needs and as a resource for information regarding various services that are available throughout the organization. Whether it is a referral to the Employee and Family Assistance Program or the smoking cessation program, we can help.

We make sure that all the EHS managers across our organization are aware of these services so that we can be effective resources for the team members.

One of our primary tasks is to provide treatment and support should a team member have an inadvertent exposure to an infectious disease. We follow up on vaccinations and treatments to make sure that they’re protected as effectively as possible. Then we partner with Infection Prevention and Safety departments to review cases carefully and identify the source of any safety concerns, with the goal of eliminating them.

We are also here to assist with employee fit-for-duty assessments. If there is a concern regarding a team member’s ability to return to work or continue working, due to a medical concern, we play an important role. We work with the employee, the provider treating them and human resources to find solutions that support the employee’s best interest and organizational needs.

Our objective is to provide great occupational healthcare and ensure we do everything possible to ensure employee and patient safety.

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VOLUME 42, NUMBER 1

Women’s Health An Interview with Stacey E. Rosen, MD, Vice President, Women’s Health Katz Institute for Women’s Health (KIWH), Northwell Health

EDITORS’ NOTE Stacey Rosen has been a practicing cardiologist for more than 25 years and served as Associate Chair of the Department of Cardiology and Director of the Cardiovascular Disease Fellowship Program at Northwell Health before she joined KIWH. She is a professor of cardiology and Partners Council Professor of Women’s Health at the Donald and Barbara Zucker School of Medicine.

She is a long-time volunteer for the American Heart Association with leadership positions at the local, regional and national levels and recently received the AHA’s Women in Cardiology Mentoring Award.

She serves as a member of the Scientific Advisory Stacey E. Rosen Council for WomenHeart: The National Coalition for Women with Heart Disease and is a co-author of the recently published book, Heart Smart for Women – Six STEPS in Six Weeks to Heart-Healthy Living. Rosen is a graduate of the six-year medical program at Boston University School of Medicine and is a fellow of the American College of Cardiology, the American College of Physicians and the American Heart Association.

Will you provide an overview of the Katz Institute for Women’s Health at Northwell Health?

As physicians, we have known for decades that women’s health needs are unique. Historically, women were treated like men and “women’s health” was defined as issues related to reproductive organs only. By the 1990s, the National Institutes of Health and the Institute of Medicine made a “call to action” that we must appreciate that sex and gender do matter.

We began to discover that most medical research studied only men (even most lab animals were male). We learned that every cell in the body has a sex and that we need to get past our assumptions that men and women are the same when it comes to health and illness.

If drugs aren’t tested on women, for instance, we shouldn’t assume that they are safe or effective for them. We work on expanding research initiatives that are gender focused and address questions critical to women.

Women’s health, as a field, started from disparities in care related to the assumption that men and women were the same, which resulted in poorer outcomes for women. The Katz Institute is focused on that from a biologic, physiologic and clinical perspective.

We also know that women make the healthcare decisions for their families, so aligning the Katz Institute with women’s needs allows us to improve the health of families in our communities. Finally, we provide extensive community-based education in a manner that is culturally respectful of the varied communities we serve.

When it comes to the awareness around women’s health issues, is it a priority for the Katz Institute to be a leader in providing that education?

The mission of KIWH is based on four pillars: clinical programs that prioritize a woman’s unique health needs; gender-based research; community partnerships; and education (both professional and for the community).

Empowering women with the education to make wiser health decisions for themselves and their families is at the center of our work.

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LEADERS 39

Leading with Innovation An Interview with Peggy Kostial, Senior Managing Director, Southwest Region, Accenture EDITORS’ NOTE In her current role, Peggy Kostial focuses on bringing innovation to clients, attracting top talent and strengthening the company’s impact in its local communities. She also serves on Accenture’s North America Leadership Team and Global Leadership Council.

During her 30-year career with Accenture, she has focused primarily on the oil and gas sector.

Before being appointed to her current role in December 2016, Kostial Peggy Kostial was senior managing director of Accenture’s Resources operating group in North America. Other leadership roles at Accenture include serving as the managing director responsible for Accenture’s Energy practice in North America; leading an e-business start-up; and leading Accenture’s strategic business relationships with Microsoft and SAP for the energy industry. Kostial is a board member of the Space Center Houston, Houston Zoo, Vanderbilt’s Owen School of Management and SpringSpirit, a Houston based non-profit focused on underprivileged and at-risk youth. She also served on the 2017 Houston Super Bowl Host Committee, participating as one of 17 vice chairs and Accenture’s representative as a founding sponsor. Kostial graduated magna cum laude from Vanderbilt University, receiving a B.S. degree with a major in mathematics and a concentration in chemistry.

COMPANY BRIEF Accenture (accenture.com) is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology, and operations. Combining deep experience and specialized skills across more than 40 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 their stakeholders. With nearly 460,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives.

What have been the keys to Accenture’s industry leadership and brand strength?

I’m proud to work for a company that leads with innovation and that puts our clients and 40 LEADERS

their industries at the center of everything we do. We serve more than 40 industries for which our industry leaders constantly evaluate norms, disruptions, trends, pain points, and so on to identify opportunities for clients to improve and drive value. From here, we apply our uniquely wide range of capabilities in strategy, consulting, digital, technology and operations to solve some of the toughest business challenges. It’s this industry-centricity combined with this unmatched breadth of capabilities that sets us apart in the marketplace.

Where do you see the greatest opportunities for growth for Accenture in the Southwest region?

Our greatest opportunity lies in helping our clients innovate and transform in the digital era, which is more competitive and faster-changing than ever. This challenge can, at times, seem daunting, and clients need significant leadership and guidance to navigate this complex transition.

Beyond this core focus, success also lies in how we contribute in an increasingly interconnected and interdependent world. In each market we serve, we want to be an integrated member of the local community where we engage, participate, have a voice and make an impact. Whether that be helping Houston post Harvey, helping Dallas find its path to innovation leadership or working with San Antonio to build a workforce of the future through strategic apprenticeships, we strive to be meaningful participants in the local communities where we live and work. It gives greater meaning to the work we do day to day, and it is really the least we can do to support the communities that support us so much.

Accenture is known for its work with large, multinational companies. Is this the main focus for Accenture and how critical is it to build client relationships with entrepreneurs and emerging companies?

We work with the world’s largest, most successful companies primarily because we are uniquely positioned to help with the size and scale of their problems. In fact, we serve 95 of the Fortune Global 100 and more than threequarters of the Fortune Global 500. To do what we do, it’s essential to be part of the broader ecosystem, which includes small companies, entrepreneurs and startups. As we know, many times the best innovations come from these

entities, so being properly networked and engaged with them is critical. This usually takes on multiple forms beyond the classic client relationship, including investments to incubate them, research and development, partial ownership or co-ownership with other industry partners, and teaming as part of the local innovation landscape or a go-to-market strategy. Today, in our inter-reliant world, any two given companies, even as they differ in size, may buy from, sell to, borrow from, and hold a joint venture with one another all at the same time. We’re no exception to that, and our deep relationships with our network of partners is a key part of our strategy and success.

Accenture places a major focus on diversity and inclusion. Will you discuss this commitment and how much diversity is a part of the culture at Accenture?

What I want – and what all our senior leadership wants – is for every single one of our colleagues, regardless of who they are and where they come from, to be completely comfortable being who they are at Accenture. We’re on a bold journey to be the most inclusive workplace in the world. To this end and to hold ourselves accountable, we’ve set public goals for diversity, and we disclose our U.S. demographic breakdowns, a step very few companies have taken.

We’re fostering greater understanding by openly talking about difficult subjects like race and behaviors that, even if unintended, can make people feel excluded. We’re leading comprehensive research on topics such as gender pay and skill gaps, and we’re working to implement our findings in our own organization. It’s a constant work in progress with much heavy lifting still to be done, but I am very proud that we’re tackling this so openly and so ambitiously.

What advice do you give to young women beginning their careers?

I tell both young women and men the same thing: the beginning of your career is such an exciting time, that you should fully embrace it, and that it’s totally fine not to have 100 percent clarity on what you want to do. It is just as important to learn what you don’t like doing as it is to learn what you do like doing. I encourage young people to be open to different opportunities as one just never knows what something might lead to. And lastly, I encourage them to work hard, to develop excellent skills and to build their network as those three things will serve them well regardless of the path their career takes.

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VOLUME 42, NUMBER 1

JAKE

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See Jake’s story during MSG Shorts or on MSGNetworks.com

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Cooperation, Compassion and Innovation An Interview with K. Kelly Hancock, DNP, RN, NE-BC, Executive Chief Nursing Officer, Cleveland Clinic Health System, and Chief Nursing Officer, Cleveland Clinic Main Campus EDITORS’ NOTE Dr. Kelly Hancock oversees the Chief Nursing Officers at Cleveland Clinic’s ten regional hospitals and Cleveland Clinic Florida, along with serving as Chief Nursing Officer at Cleveland Clinic’s Main Campus since July 2011. She is responsible for directing the clinical, academic and operational activities of the nursing staff throughout the health system, as well as the focus of nursing throughout the various institutes on the main campus. She K. Kelly Hancock administers and directs nursing integration and operations, as well as the financial, regulatory and business activities throughout the Nursing Institute. She has simultaneously been the Senior Nursing Director of Critical Care and the Nursing Director of the Heart and Vascular Institute, where she led the nursing practice for seven years. Dr. Hancock received her DNP from Chamberlain College of Nursing in 2015 and she obtained her MSN from Breen School of Nursing at Ursuline College in Pepper Pike, Ohio. She is a board certified Nurse Executive through the American Nurse Credentialing Center, a member of the American Organization of Nurse Executives, the American Association of Critical Care Nurses, and the Honor Society of Nursing Sigma Theta Tau International. She was awarded Crain’s Cleveland Business Notable Woman in Healthcare in 2018, the Sones/Folvaro for Excellence in Nursing Collaboration in 2017, the Distinguished Alumnae Award from Ursuline College in 2013, the ANCC Circle of Excellence Award in 2012, the 2010 Maria and Sam Miller Professional Excellence Nurse of the Year Award, is a recipient of the “Bruce Hubbard Stewart Fellow Award,” and in 2002 and 2009 was awarded “The Abbie Porter Leadership Award” which highlights Nursing Leadership.

INSTITUTION BRIEF Based in Cleveland, Ohio, Cleveland Clinic (my.clevelandclinic.org) is a nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education. It was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based upon the principles of cooperation, compassion, and innovation. Cleveland Clinic has pioneered many medical breakthroughs, including coronary artery bypass surgery and the first face transplant in the United States. U.S. News & 42 LEADERS

World Report consistently names Cleveland Clinic as one of the nation’s best hospitals in its annual “America’s Best Hospitals” survey. More than 3,500 full-time salaried physicians and researchers and 11,000 nurses represent 120 medical specialties and subspecialties. The Cleveland Clinic Health System includes a main campus near downtown Cleveland and more than 75 Northern Ohio outpatient locations, including 19 full-service Family Health Centers, Cleveland Clinic Florida, the Lou Ruvo Center for Brain Health in Las Vegas, Cleveland Clinic Canada and Cleveland Clinic Abu Dhabi.

What makes Cleveland Clinic so special and have been the keys to its consistent leadership?

I’ve been with the organization for 25 years, so I have been fortunate to see it grow and evolve. We were founded by four physicians and continue to be a physician-led group practice. Doctors lead and run our hospital and institutes so we’re not just a hospital that employs doctors.

Our colleagues are salaried and they don’t get incentivized to see more patients. We’re in it together behind the shared mission and vision of our organization.

We have about 25,000 nursing caregivers in the Nursing Institute. What makes us special is we have a culture that promotes our caregivers to seek excellence, whether in the clinical or quality domain. They constantly look to grow and develop, and are empowered to do so.

We have allowed this to be a culture where our caregivers can strive to be their best, no matter which department they’re in. We all believe in the mission of the organization.

How has the role of a nurse evolved?

The role of the professional nurse has evolved, not only at Cleveland Clinic, but across the country. We have always had to be clinically astute, but nursing has evolved to a point where we have many more hats to wear. Not only are we clinical caretakers, but we’ve become advocates, educators and liaisons, as well as social workers.

The patients we see now are facing more complex issues and they’re living longer, so we’re taking care of them across the entire care continuum.

The role of nursing, particularly in this transformation of healthcare, has extended beyond the four traditional walls of a hospital. It now reaches into the home. It can involve a nurse being on call or working a triage system via telephonic support.

Nurses can work with Telehealth or out in our ambulatory clinics.

Our nurses really lead our care coordination efforts. They are coordinating care for patients in populations that are at risk and may require more resources from a healthcare provider.

We have nurses who are care coordinators for different specialties and they have different touchpoints with our patients along the entire care continuum. They are the liaison between those patients and the provider.

If someone comes to the emergency room or is hospitalized, the same nurse will continue to be the touchpoint with them to ensure that the plan of care we developed for the patient is being followed appropriately.

We’re very fortunate to have an office of nursing research here. The scientists are all Ph.D. prepared and lead our efforts from a nursing standpoint.

They do research at the clinic and take what they have learned and apply it at the bedside. This results in our nurses being able to see the value of continuing to be innovative and creative as well as having the latest tools and processes to care for our patients.

What are the key attributes that you seek when hiring nurses?

We seek nurses who have innovative spirits and want to excel in their clinical outcomes, but who also excel from a patient experience perspective. We want our nurses to be leaders at the bedside who feel confident speaking up and leading the care they’re delivering.

In addition, we have so many disciplines that might be involved in caring for a patient that a nurse has to be an open, flexible and collaborative partner in providing care. Today, we are a team of teams and know the value of taking the key talents from each of our team members and serving them well to our patients.

With so many locations and facilities, is service consistency challenging?

No matter which location, patients and their families should and can expect the same level of clinical care, experience and competency from a clinic nurse.

The way we accomplish that is through standardization. We make sure that our policies and protocols are all evidence-based and that they are all standardized across the board.

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VOLUME 42, NUMBER 1

Health and Wellness An Interview with Denise Faltischek, Executive Vice President & Chief Strategy Officer, Hain Celestial EDITORS’ NOTE Denise Faltischek serves as Executive Vice President Chief Strategy Officer and Corporate Secr etary of The Hain Celestial Group, Inc. In her role, she collaborates with The Hain Celestial Group President and Chief Executive Officer in developing, implementing, communicating and sustaining corporate strategic initiatives including the Company’s vision, mission, values and purpose as well as overseeing all M&A, divestitures Denise Faltischek and strategic transactions. In addition, Faltischek oversees the quality assurance, regulatory, customer care and sustainability functions. She served as Chief Compliance Officer from November 2013 until 2018 and as General Counsel from October 2009 to 2018. Prior to joining Hain Celestial, she was with the law firm of Ruskin Moscou Faltischek, P.C., where she practiced corporate and securities law.

C O M PA N Y B R I E F T h e H a i n C e l e s t i a l Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Almond Dr eam®, Arr owhead Mills®, Bearitos®, Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth’s Best®, Ella’s Kitchen®, Empire®, Europe’s Best®, Farmhouse Fare™, Frank Cooper’s®, FreeBird®, Gale›s®, Garden of Eatin›®, GG UniqueFiber™, Hain Pure Foods®, Hartley’s®, Health Valley®, Imagine™, Johnson’s Juice Co.™, Joya®, Kosher Valley®, Lima®, Linda McCartney® (under license), MaraNatha®, Mary Berry (under license), Natumi®, New Covent Garden Soup Co.®, Orchard House®, Plainville Farms®, Rice Dream®, Robertson’s®, Rudi’s Gluten-Free Bakery™, Rudi’s Organic Bakery®, Sensible Portions®, Spectrum® Organics, Soy Dream®, Sun-Pat®, Sunripe®, SunSpire®, Terra®, The Greek Gods®, Tilda®, Walnut Acres®, WestSoy®, Yorkshire Provender®, Yves Veggie Cuisine® and William’s™. The Company’s personal care products are marketed under the Alba Botanica®, Avalon Organics®, Earth’s Best®, JASON®, Live Clean® and Queen Helene® brands.

VOLUME 42, NUMBER 1

What have been the keys to Hain’s success and what has made the company and its brands so strong?

Many people use the word “disruptor” to talk about businesses that change the way we think or how we do something. By investing in organic, natural and better-for-you brands beginning in the early 1990’s, Hain was a disruptor even before this term became popular.

The company was founded over 25 years ago based on the belief that we could inspire people to create A Healthier Way of Life™. At the time, we were less educated consumers. Instead of focusing on the ingredients that were in the food we ate, we were more wedded to conventional brands.

Consumer products companies have a responsibility to offer healthier options for consumers.

Hain is proud to be a trailblazer in this initiative.

As a result, we weren’t aware of how what we ate and put in our bodies impacted our overall health and well-being. Hain’s products have helped educate consumers and transform shopping choices for the better.

Since our inception, our mission and purpose have remained the same – to create and inspire a healthier way of life.

Hain was created with a clear purpose around health and wellness. Is it a responsibility of leading companies today to have a bigger purpose than just the bottom line?

This is why I’m passionate about Hain. I believe that in order for a company to deliver long-term, sustainable growth, it needs to be purpose driven and communicate on why it exists – that not only must it deliver financial performance, but it also must deliver a benefit to its stakeholders, including shareholders, employees, consumers and its community.

In addition, in my view, consumer products companies have a responsibility to offer healthier options for consumers. Hain is proud to be a trailblazer in this initiative. With our organic, natural and better-for-you food and personal care brands, we are dedicated to promoting health and wellness by meeting and exceeding growing consumer demand for better-for-you products.

As you transition into the role of chief strategy officer, how do you define the role and will you discuss your key priorities?

Our mission, purpose, values and the resulting commitments are important as it’s what continues to differentiate Hain. Our authenticity in the areas of organic, nonGMO and health and wellness have afforded our brands the trust of our consumers and ensuring that we continue to earn that trust by working with our internal teams to ensure that our purpose continues to stay embedded within the company, brands and culture and that we communicate internally to our people and externally to our consumers, customers and our stockholders. Of course, quality and food safety remain critical priorities and we will continue to work to stay ahead of consumer preferences, whether it be better nutrition, better ingredients, fewer ingredients, clean labels, etc.

Are there opportunities for women at senior levels in the industry and what advice do you offer young women about the opportunities that exist?

There are opportunities out there for women at senior levels. My advice to younger women embarking on their careers is to find something they are passionate about and work hard at it.

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LEADERS 43

Social Good Through Business An Interview with Kathy Raffa, CPA, Office Managing Partner, Washington, DC Metropolitan Area, Marcum LLP EDITORS’ NOTE Kathy Raffa is also a member of the firm’s Assurance Services Division. Raffa came to Marcum via the firm’s merger with Raffa, P.C., one of the nation’s preeminent public accounting and business consulting firms, specializing in nonpr ofits, wher e she served as President and grew the firm into one of the 100 largest accounting firms in the United States.

With more than 35 years of successful experience serving the nonprofit Kathy Raffa sector, Raffa regularly serves as an Audit Partner and provides clients with advisory services. Upon her graduation from the Wharton School at the University of Pennsylvania, Raffa spent the early part of her career at a Big 8 firm.

She currently serves on the boards of Trinity Washington University and EagleBank, a public company.

FIRM BRIEF Marcum LLP (marcumllp.com) is one of the lar gest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., Grand Cayman, China, and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting, and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The firm serves both privately-held and publicly traded companies, as well as highnet-worth individuals, and private equity funds and hedge funds, with a focus on middle-market companies and closely-held family businesses. The firm’s merger with Raffa provides it with an expanded focus on nonprofits.

Will you discuss the history and heritage of Raffa?

The firm was started in 1984. My husband and I were at one of the Big 8 accounting firms.

We left to start a company focused on creating positive change in our community. Our goal has been to enhance all aspects of our clients’ operations so they can better achieve their missions and make the world a better place.

From the beginning, our focus has been on nonprofits and we measure our success by our impact on strengthening the nonprofit community. Prior to the merger with Marcum, we had roughly 300 people and nearly 90 percent of 44 LEADERS

our business was with nonprofits and social businesses.

Our firm quickly grew beyond audit and tax services as we built relationships of trust. Nonprofits needed support in many areas, so we got involved improving their accounting, technology and human resources infrastructure, enabling them to operate more effectively and create sustainable and scalable organizations.

What led to the focus on nonprofits and the social sector?

It was the nonprofit space where we felt we could really make a difference to improve lives. We knew nonprofits would benefit from the expertise we could bring and it was deeply gratifying to work with people committed to improving the world.

Since our mission permeates everything we do, the people we hire typically care about social good. As they grow with our firm, this deepens and they identify ways to build on their passions. This strengthens our firm.

Raffa was majority women-owned. Was that done intentionally, and will you discuss the emphasis you placed on providing opportunities for women?

It was intentional and not just about women, but about diversity more broadly.

When I started in accounting, there were more men than women at the entry level, but that soon changed as the national firms began hiring 50 percent women from colleges.

Today, only about 20 percent of the partners at the large national accounting firms are women. While this has improved over the years, it’s slow progress. From a business perspective it doesn’t make sense to hire 50 percent women and then lose a large majority as they move up.

For our firm, diversity has always been important – we recognize the benefits for people individually and for the firm as a whole. Having women in leadership positions improves the opportunities for all women in the firm. Diversity leads to a better work environment, appreciation of different perspectives, happier employees, and stronger relationships with clients.

In our partner group in the D.C. region, 11 out of 18 are women and they are ethnically diverse. From the top down, we instill an appreciation of diversity in everyone.

It’s important for the leadership to recognize the benefits of retaining women and

propelling women into leadership roles.

Leaders need to appreciate the challenges of raising children and building a career and help women succeed by providing them flexibility that is individualized. We have to be proactive to make it work.

Will you highlight Raffa’s merger with Marcum and what made you feel it was the right opportunity for the firm?

We have been approached by many firms over the years. We were looking for the right opportunity to scale what we created nationally.

We wanted a good future for our partners and staff, so the decision was made by the entire partner group to ensure everyone was on board.

A mutual friend connected us to Marcum over a year ago and we started talking about the opportunities. There were several key factors that appealed to us: one was that D.C. would be a new market for Marcum. We wouldn’t be merging in with another local office so this would allow us to maintain our culture while helping Marcum grow in a new region.

We discovered that Marcum was very entrepreneurial, which would enable us to continue the creative business spirit we built.

We liked that there were offices across the country in major cities where we could have a physical presence to grow our nonprofit and social sector practice.

We liked the people we met at Marcum.

This was essential.

Marcum recognized our uniqueness and wanted us to continue what has made us successful. One unique aspect is certainly our women’s leadership. Additionally, we are the largest CPA firm in the world with B Corp certification. This rigorous certification is for companies using business as a force for good and takes a hard look at best practices that enable companies to “walk the talk” around topics such as women’s leadership.

It’s all about social good through business.

Marcum’s Women’s Initiative and the Marcum Foundation both were highly compatible with our values. We talked about that with the leadership at Marcum and how we can collaborate to expand on what both firms are doing in that arena.

We will take what we’ve built over the past 34 years and build it on a national level with Marcum so that we can positively impact more people, communities and organizations.

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VOLUME 42, NUMBER 1

STAND UP FOR US ALL

Clinical trials bring us closer to the day when all cancer patients can become survivors.

Clinical trials are an essential path to progress and the brightest torch researchers have to light their way to better treatments. That’s because clinical trials allow researchers to test cutting-edge and potentially life-saving treatments while giving participants access to the best options available.

If you’re interested in exploring new treatment options that may also light the path to better treatments for other patients, a clinical trial may be the right option for you.

Speak with your doctor and visit StandUpToCancer.org/ClinicalTrials to learn more.

Sonequa Martin-Green, SU2C Ambassador Photo Credit: Matt Sayles Stand Up To Cancer is a division of the Entertainment Industry Foundation, a 501(c)(3) charitable organization.

Physician/Administrator Collaboration An Interview with Paula E. Menkosky, Vice Chair of Administration, Mayo Clinic and Chief Administrative Officer, Mayo Clinic in Arizona and Christina Zorn, J.D., Vice Chair of Administration, Mayo Clinic and Chief Administrative Officer, Mayo Clinic in Florida EDITORS’ NOTE Paula E. Menkosky was appointed as Chief Administrative Officer for Mayo Clinic in Arizona in 2012. She is responsible for Mayo Clinic operations in Arizona in partnership with Dr. Wyatt Decker, Mayo Clinic Vice President and Chief Executive Officer of Mayo Clinic in Arizona and serves as a member of the Mayo Clinic Board of Governors and Board of Trustees. In addition, Menkosky was appointed as a Vice Chair of Administration for Mayo Clinic responsible for external relations.

In this role, she oversees Mayo Clinic’s public affairs and development activities enterprisewide. She began her work at Mayo Clinic in Rochester, Minnesota, in 1996 and has held numerous leadership positions at Mayo Clinic including serving as Director of Operations, Chief Operating Officer and Executive Director of MMSI, a Mayo Health Company. She has also served as the Vice Chair of Managed Care Operations and Business Development and Operations for Mayo Clinic Health Solutions.

Menkosky holds a B.A. degree in applied psychology from California State University, Long Beach, an M.A. degree in industrial-organizational psychology from California State University, San Bernardino, and a M.S. degree in healthcare administration from California State University, Long Beach.

Christina Zorn, J.D., began her service as Vice Chair of Administration, Mayo Clinic, and Chief Administrative Officer of Mayo Clinic in Florida in 2015. In addition to her leadership and oversight of Mayo Clinic in Florida, Zorn also provides oversight for information technology, information security, planning services and enterprise analytics across Mayo Clinic’s national enterprise. She began her career at Mayo Clinic in 2002 as a legal counsel and in 2009 she was named Chair of the Florida Division of Mayo Clinic’s Legal Department. Zorn is the secretary of the executive operations team of the Florida campus, and serves on the enterprise management team of Mayo Clinic. In addition to her roles at Mayo Clinic, Zorn is also a member of the American Association of Corporate Counsel, the American Health Lawyers Association, and the Florida Hospital Association. She serves on the Board of Trustees at the Bolles School and on the Board of Allevant Solutions, LLC. Zorn earned her B.S. in zoology from the University of Wisconsin and received her J.D. from Creighton University School of Law. 46 LEADERS

Paula E. Menkosky

Christina Zorn

INSTITUTION BRIEF Mayo Clinic (mayoclinic. org) is a not-for-profit organization committed to clinical practice, education and research, and providing expert, comprehensive care to patients with serious and complex illnesses.

Mayo Clinic has major campuses in Rochester, Minnesota; Scottsdale and Phoenix, Arizona; and Jacksonville, Florida. The Mayo Clinic Health System serves more than 60 communities in Iowa, Minnesota and Wisconsin. Mayo Clinic cares for more than one million people a year.

What have been the keys to the leadership of Mayo Clinic and how do you define the Mayo Clinic difference?

Menkosky: Over the past 150+ years, Mayo Clinic has made tremendous contributions to the art and science of healing by focusing on teams of specialists and integrating practice, research and education.

From a patient care perspective, we are defined by a true team approach, an unhurried exam, a partnership and relationship with local referring physicians, a commitment to the highest quality care built on compassion and trust, as well as a promise of advanced, innovative technologies and techniques.

Zorn: Our difference derives from our mission and values, which focus on serving the needs of the patient and putting the patient at the center of all that we do. This is something that everyone at Mayo Clinic – not just the leadership – knows and infuses into our daily work.

Also, as Paula mentioned, teamwork is one of our values, and our model of care is designed so our physicians and staff work together in a collaborative atmosphere. This enables us to empower staff, to innovate, and to provide hope and healing for patients with even the most serious and complex health issues.

Will you provide an overview of the chief administrator role and how you focus your efforts?

Menkosky: As a physician-led organization, we rely on the physician/administrator partnership, as well as the physician/administrator/ nurse manager partnership to form true integration and collaboration.

This is one of the most distinctive aspects of Mayo Clinic – the close collaboration between physician leaders and administrative colleagues, who each bring unique skills to serve patients and advance medical science.

Leadership by our physicians occurs at all levels of the practice. Every committee and every decision includes thorough input from our physicians.

Christina and I, as chief administrative officers in Florida and Arizona, partner with our site CEO, who is always a physician, and we collaborate with our complementary strengths. It’s a great model that makes Mayo Clinic stronger.

How critical is it that the chief administrative officer role is heavily engaged in business strategy?

Zorn: As we mentioned, one reason Mayo has been so successful is that the executive leadership, as well as every major division department and service line, has a physician leader paired with an administrator.

This started in 1908, when Harry Harwick and Dr. Will Mayo created the model of physician/administrator collaboration. Throughout Mayo Clinic, all physician leaders have an assigned administrative partner.

The physicians lead the clinical practice, research activities, physician education programs, career development of the medical staff and ensure the needs of the patient always come first.

The administrator partners have business and management expertise and a broad understanding of the institution. They lead by managing the business side of the operations, including our non-physician/scientist colleagues, and also ensure the needs of the patient always come first.

Will you provide a description of Mayo Clinic’s Arizona and Florida sites?

Menkosky: Size wise, our entire organization is comprised of three distinct campuses and a robust health system that encompass one Mayo Clinic. As an international organization, last year Mayo Clinic provided care for 1.3 million people from across the globe, including VOLUME 42, NUMBER 1

“Under the leadership of our CEO, Dr. John Noseworthy, Mayo Clinic has transitioned over the past eight years from a holding company to a single operating company with the same strategic and operating plan, and budget.

We are integrating to ensure that our patients have an incredible and consistent experience no matter what Mayo Clinic they receive care at.”

137 countries. Our largest campus is based in Rochester, Minnesota, right where the Mayo family resided 150 years ago. This campus is considered America’s first destination medical center.

In Arizona, Mayo Clinic employs more than 650 physicians and 6,800 allied health staff and provided care for more than 600,000 patient visits last year. Mayo Clinic Hospital in Arizona has been named #1 in Arizona in the U.S. News & World Report Best Hospital report for six consecutive years.

Zorn: Mayo Clinic in Florida is based in Jacksonville, Florida, and is also ranked #1 in Florida in the U.S. News & World Report Best Hospital report. We have more than 6,400 physicians, scientists and staff with expertise in nearly every specialty, and treated about 119,000 patients from all 50 states and 83 countries in 2017.

How close is the coordination between Mayor Clinic’s sites in order to provide seamless and consistent service?

Zorn: Under the leadership of our CEO, Dr. John Noseworthy, Mayo Clinic has transitioned over the past eight years from a holding company to a single operating company with the same strategic and operating plan, and budget.

We are integrating to ensure that our patients have an incredible and consistent experience no matter what Mayo Clinic they receive care at.

Menkosky: I would add that, as a unified organization with multiple locations, integration helps patients have the same experience and know that they have access to all of Mayo Clinic’s resources wherever they are seen. Our organizational priorities are aimed at ensuring that our patient focus permeates the entire organization, in every department at every location.

Would you describe the strength of the workforce at Mayo Clinic?

Zorn: We undoubtedly have the most committed and talented staff at Mayo Clinic who are enrolled in our mission and values. At all levels, we have both servant leaders and change agents who put service first. They employ curiosity and have a willingness to try new things while remaining constantly focused on improving quality and the patient experience.

Menkosky: We understand the importance of our workforce in all that we do. Dr. Will Mayo said, “The best interest of the patient is the only interest to be considered, and in order that the sick may have the benefit of advancing knowledge, union of forces is necessary.”

VOLUME 42, NUMBER 1

Our unique workforce focuses on what we do best: delivering integrated care to patients with serious and complex medical conditions.

We hire and train top talent to bring their best to Mayo Clinic and dedicate teams of experts who tailor their collective medical knowledge to each individual patient.

We innovate and apply research to our clinical practice and create an experience that others cannot replicate.

We educate the workforce of the future through our numerous health related programs in the Mayo Clinic School of Health Sciences.

We help patients to stay close to home. If care at a destination practice is needed, the transition between local and destination care will be seamless.

Our staff’s relentless focus on patient safety, service and quality has been recognized by numerous external agencies.

How critical is it for Mayo Clinic to build a diverse and inclusive workforce and will you highlight your efforts in this regard?

Menkosky: Diversity and inclusion are integral to Mayo Clinic’s mission. To optimally meet the needs of our increasingly diverse patients, we work diligently to provide excellent, culturally relevant care in an environment that is welcoming to people from a wide variety of backgrounds.

A unique aspect of diversity and inclusion at Mayo Clinic is our Mayo Employee Resource Groups or MERGs. These are employee-organized groups that form around a common dimension of diversity. MERGs may focus on traditional diversity dimensions such as ethnicity, age or gender. They may also include such groups as veterans, single/working parents, or the disabled.

In 2018, DiversityInc named Mayo Clinic to its Top Hospitals and Health Systems list for the seventh straight year.

Zorn: I would add that, even as a world-class healthcare institution, we must continually assess our efforts and embrace opportunities to improve.

It is important that our views do not remain stagnant and that we hold ourselves accountable for providing a welcoming and inclusive environment to all who come through our doors.

We are also focusing on hiring and retaining people with diverse backgrounds to bring their best to Mayo Clinic. Within our teams and departments, we must continue to encourage participation from all employees. This includes increasing the proportion of women and minority students, faculty and

staff in areas where they are underrepresented. Through these efforts, we ensure our continued success and innovation.

What do you see as Mayo Clinic’s responsibility to the communities where it operates and how deeply ingrained is social responsibility in the culture of the organization?

Menkosky: Mayo Clinic is committed to working collaboratively with local partners to regularly assess and address the health needs within its local communities, as well as to advance population health locally and globally through integrated clinical practice, education and research. We work with hundreds of community partners on collective efforts to improve the quality of life, health and well-being of all in our communities.

In Arizona, this begins with the Mayo Clinic-built Community Advisory Board, comprising communities of faith, government, free clinics, federally qualified health centers, nonprofits and other local organizations. The board helps Mayo Clinic understand the needs of the community and helps identify ways to reduce health disparities across underserved, vulnerable populations.

Across Mayo, our commitment is larger than just within our local communities – in fact, we have 70 regional Mayo Clinic Health System sites and more than 40 Mayo Clinic Care Network locations globally, so our reach is worldwide.

Zorn: Mayo Clinic gives back to our community through environmental stewardship, health outreach and social services in many ways. For example, in Florida, we are leading an initiative to train more than 10,000 people in Mental Health First Aid, teaching signs of mental illness and fostering discussions that help people seek treatment.

Also, we serve people and deliver fresh food and vegetables through WellnessRx, a Mayo program that delivers health education, screenings and other activities in a Jacksonville community classified as a food desert and which has significant health disparities.

We also provide medical expertise and volunteers for free clinics and shelters that serve the most vulnerable residents in our region.

Mayo Clinic cannot be successful without the strong support of our community including not-for-profit organizations, the faith community, and our business partners. They are an essential part of our continued story.

•

LEADERS 47

Marrying Architecture and Visual Effects An Interview with Keely Colcleugh, Founder and Chief Executive Officer, Kilograph EDITORS’ NOTE Keely Colcleugh is an entrepreneur and designer with over 18 years of experience in the fields of architecture, graphic design, film, visualization, and animation. Colcleugh has worked with leading architecture and design practices around the world and has also worked as a previsualization and visual effects artist for feature films such as Iron Man and Superman Returns. In addition to professional pursuits, she Keely Colcleugh has lectured on the topic of architectural visualization at the University of Southern California, California Polytechnic Institute, the University of Kentucky, and the Instituto di Architecture di Venezia. Colcleugh is a board member at the A+D Museum in Los Angeles, the Vice President of the American Society of Architectural Illustrators, and a member of the Jury for the Architizer A+ Awards. She holds a bachelor of architecture degree from McGill University and a masters degree from the Southern California Institute of Architecture.

COMPANY BRIEF Kilograph (kilograph.com) is a creative collective of architects, game developers and 3D artists based in Los Angeles.

Through experiments in narrative, movement, and aesthetics, Kilograph is cracking the code on how to make viewers deeply engage with a design. Their digital experiences have helped people and companies like Gensler, Nike, Zaha Hadid Architects, and Ford tell visual stories onscreen, online, and out in the world. Kilograph is a certified WBE, SBE, LSBE with the state of California, County of Los Angeles, and Metro.

Will you discuss the history and heritage of Kilograph and the vision you had for creating the company?

I was an architect and I have always been interested in the visual storytelling aspect of architectural design.

My love of storytelling led me to Los Angeles where I talked my way into a visual effects firm.

We were a previsualization house, so my tasks included a combination of animation, visual set building and layout design in 3D for major movies.

Eventually I realized that the architectural world could use what visual effects artists were doing every day, and I funneled this vision into Kilograph.

48 LEADERS

Are the services Kilograph offers well understood and are there direct competitors in the field?

Architectural visualization and real estate marketing are known commodities at this point; what we’re doing is helping companies blur the boundaries between the two, with a focus on creative applications that delight people.

We’re certainly one of the few companies I know of that is experimenting with technology at a high level in our markets. We are constantly convincing clients to try virtual reality and augmented reality, since they are some of the best ways to tell a unique story about a space.

How do you define the client profile for Kilograph and where do you see the greatest opportunities for growth?

Right now, we’re focused pretty squarely on real estate development. As larger companies delve into the urban environment, we are uniquely positioned to help them realize their goals. For example: the recent “City of Tomorrow” project we did with Ford.

Initiatives relating to smart cities, urban design and the development of streets with autonomous vehicles has been a great place for us to expand. We have recently been dealing more with transit and technology.

There is a huge opportunity for companies that understand the power of augmented and virtual reality. As we continue to experiment, we can provide intriguing solutions for anything that touches a built environment or city.

Is the primary focus on the U.S. market or is Kilograph focused globally?

Primarily the U.S., as the economy has been so strong here. However, we work with global clients all the time, including work in Asia and the Middle East. We’re also growing our European offerings through a small office in Spain.

As you have built out your team, have you primarily looked for those with an architectural background or do you also look for other skill sets?

An architectural background is incredibly helpful, not just for the skills those people possess; it’s the thinking we really value.

There is a terrific problem-solving mentality that comes from folks who have architecture degrees.

However, we also employ game developers, graphic designers, coders, VR technicians and visual effects artists so we can provide creative answers to common problems.

How critical is it to put metrics in place to show the impact of Kilograph’s work and are metrics challenging in this area?

Metrics aren’t challenging today, but it depends on the metric you’re looking for. It was certainly more challenging early on before we had the data.

It’s easier to collect better data today. For instance, if someone wanted to see if a project that used virtual reality sells faster than one that didn’t, that information is readily available.

Previously, there wasn’t much of a difference in how properties were marketed, especially in Los Angeles, so marketing with our type of a product is a relatively new phenomenon that finally allows us to get some good data.

Even though Kilograph is a leader in the utilization of technology, how challenging is it to stay on top of technology given the speed of change?

All of us really love it and are, without exception, deeply interested in tech. That’s why I got into it and why our engineering department is into it, so it’s not a chore for us. Because tech is changing so frequently, you have to be willing to step into the unknown. Learning how to bridge the divide between experimentation and finding clear uses for our clients is part of the fun though.

For young people interested in becoming architects, is there still value in putting pen to paper and learning how to draw or will technology replace this need?

In 2019, I will be the president of ASAI – the American Society of Architectural Illustrators.

We’re a group of illustrators focusing on the built environment using any medium. The founding members were all watercolorists and sketch artists and many of the artists in the organization still do that. We believe there is a long history behind that kind of manual illustration and that it is still really important to how things get developed.

Did you have an entrepreneurial spirit early on and the desire to build your own company?

I did. I had some advisors over the years who I have known since I was very young, and they said this always seemed like something I was going to do.

•

VOLUME 42, NUMBER 1

HENRIETTA’S TABLE

NOIR BAR

REGATTABAR JAZZ CLUB

HARVARD SQUARE | CAMBRIDGE, MA 800.882.1818 | CHARLESHOTEL.COM

BENEDETTO

Reframing resilience for communities struggling with severe weather events

By Kathleen Savio, CEO of Zurich North America Imagine two worlds: one where natural hazards continue to increase in frequency and severity with mounting losses that grow year over year; and the other where key stakeholders join together to enact change that will likely reduce impact from these inevitable severe weather events. The world we are helping shape is the latter. And the timing can’t come soon enough.

A1-112011598-A 11/18) 112011598

Over the past two years, we have witnessed some of the most devastating severe weather events ever recorded. During 2017, the Gulf Coast and the Caribbean were pummeled in rapid succession by three of the most powerful hurricanes in history.

Natural hazards escalated around the world as well.

According to a study by Aon Benfield, 2017 was the costliest year on record solely for weather-related economic losses, totaling more than $344 billion.1 Last year brought its share of major severe weather events to North America. During the summer of 2018, massive wildfires destroyed more than three million acres in British Columbia, Canada.2 In the United States, Hurricane Florence brought catastrophic flooding to the Carolinas in mid-September, and was followed a month later by Hurricane Michael – the most powerful storm ever to hit the Florida Panhandle. And in November, the worst series of wildfires in the history of California ravaged the state, tragically taking many lives and destroying thousands of homes and businesses.3 Of the 10 most devastating weather-related events in history, seven have occurred in the past decade.

Recognizing this trend, in November 2018 the World Economic Forum (WEF) published a new report called Regional Risks for Doing Business. 4 Drawing upon insights from a survey of approximately 12,000 private-sector decision-makers from more than 130 economies, the report looks at risks through the lens of their economic impacts on businesses. North American business leaders ranked severe weather as the third most serious risk to their business resilience in the years ahead – right behind cyber-attacks and data fraud or theft.

A key insight gained from the natural disasters of the past decade is an awareness of the significant gap between total economic losses caused by severe weather versus insured losses. The gap between 2017’s weather-related economic losses of $344 billion and the actual loss costs paid by insurers – $132 billion – would amount to disaster protection gap of a staggering $212 billion.1 50 LEADERS

Zurich is working to help businesses and communities build resilience against severe weather by emphasizing the benefits of relevant insurance solutions combined with investments in proactive resilience strategies. Based on industry analysis of past events, we know that every dollar invested in prevention saves over five dollars on future losses.

Part of Zurich’s own investment is our Global Flood Resilience Program, which focuses on the hazard affecting more people globally than any other – more than 250 million annually – which is responsible for some of the largest economic and humanitarian losses. We have invested $55 million to help fund research and field work that has touched the lives of thousands of families and businesses.

Gaining valuable insights from past events is another important part of Zurich’s commitment to developing resilience strategies. On a global basis, we have studied 13 flood disasters using our Post Event Review Capability (PERC) since 2013. The insights developed from these reviews helped us identify what has worked well in flood mitigation and where there is room for improvement. In 2018, we completed a PERC report specific to the experiences of Houston during and after Hurricane Harvey. The learnings gained through these PERC studies enable us to work with local businesses and communities in recommending actionable improvements to increase resilience to future events.

Creating a world where lives are saved and damage is reduced after inevitable severe weather events will take multiple stakeholders joining together to enact change. Harris County, Texas voters recently said “Enough!” after suffering from three 1-in-500-year floods in the past three years. On the one-year anniversary of Hurricane Harvey, they approved a $2.5 billion bond proposal that will fund flood-mitigation projects with the goal of making Houston and neighboring communities more resilient to future flood events. This is an example of a community making the decision to enact change. 5 At the federal level, we support the inclusion of much stronger resilience features in proposed reauthorization of the National Flood Insurance Program. And we are supporters of the United Nations Office for Disaster Risk Reduction “Build Back Better” initiative in the implementation of better building codes during recovery, rehabilitation and reconstruction wherever natural disasters occur.

Looking forward, the one thing we know is that natural hazards will continue to occur. Whether those hazards become disasters threatening life and property depends on businesses and individuals making the right choices and taking positive actions to strengthen resilience against them. Working together, we can make a difference in the impacts of the severe weather events certain to come in the years ahead.

1. Aon Benfield. Weather, Climate & Catastrophe Insight, 2017 Annual Report. 2018.

2. Judd, Amy. “B.C. Wildfires Map 2018: Current location of wildfires around the province.”

Global News. 1 September 2018.

3. Locker, Melissa. “This list of the worst fires in California history puts the Camp fire in tragic perspective.” Fast Company. 14 November 2018.

4. World Economic Forum, Regional Risks for Doing Business - 2018.

5. Despart, Zach, “Harris County voters pass $2.5 billion flood bond one year after Harvey.”

Houston Chronicle, 26 August 2018.

Creating a world where lives are saved and damage is reduced after inevitable severe weather events will take multiple stakeholders joining together to enact change.”

- Kathleen Savio

VOLUME 42, NUMBER 1

SEVERE WEATHER

More frequent and more destructive

If it seems that severe weather events are growing more frequent and destructive, then you would be correct.

These events are driving higher costs and increasing the risks of property damage, injury and death in the U.S. and around the world.

2017

THE MOST EXPENSIVE YEAR IN THE U.S. FOR WEATHER DISASTERS ON RECORD (TO DATE) 1

RESILIENCE PLANNING PAYS DIVIDENDS

EVERY $1

INVESTED IN RESILIENCE PLANNING

SAVES UP TO $6 IN MITIGATION COSTS 3

$100 BILLION

16 MAJOR WEATHER DISASTERS COSTING

ONE YEAR AFTER HURRICANE HARVEY, HARRIS COUNTY,

MORE THAN ANY PREVIOUS YEAR (ADJUSTED FOR 2018 DOLLARS)

$306 BILLION IN DAMAGES

TEXAS PASSED A $2.5 BILLION BOND PROPOSAL

TO STRENGTHEN THE HOUSTON AREA’S RESILIENCE AGAINST FUTURE FLOODING 4

SEVERE WEATHER IS MORE COSTLY AND FREQUENT 2

219 SEVERE EVENTS COSTING MORE THAN $1 BILLION EACH SINCE 1980

$1.5 TRILLION TOTAL COST FOR THOSE DISASTERS

WHEN IS THE RIGHT TIME TO PREPARE FOR THE NEXT SEVERE WEATHER EVENT?

NOW! 1980s - 1990s

3.75 severe events per year on average

2012 - 2017

11.6 severe weather events annually

BEFORE AN UNEXPECTED SEVERE WEATHER EVENT DAMAGES YOUR BUSINESS AND THREATENS YOUR PEOPLE

THE FREQUENCY OF SEVERE EVENTS HAS TRIPLED SINCE 1980 1. Smith, Adam B. “2017 U.S. billion-dollar weather and climate disasters: A historic year in context.”

National Oceanic and Atmospheric Administration (NOAA). Climate.gov. 8 Jan. 2018.

2. Coren, Michael J. “The US just had the most expensive year for weather disasters in history.

Expect more.” Quartz. 21 Jan. 2018.

For more information about the risks posed by severe weather and the proven value of resilience planning, go to: zurichna.com/severeweather VOLUME 42, NUMBER 1

3. National Institute of Building Sciences Multihazard Mitigation Council. “Natural Hazard Mitigation Saves: 2017 Interim Report.” December 2017.

4. Despart, Zach. “Harris County voters pass $2.5 billion flood bond one year after Harvey.” Houston Chronicle. Accessed 30 Nov. 2018.

LEADERS 51

Effective claims response to severe weather events must begin long before the skies darken

By Paul Lavelle, Chief Claims Officer Zurich North America Over just the past two years, devastating disasters have occurred with what appears to be increasing frequency and severity, from extremely powerful hurricanes and widespread flooding to historic wildfires in the U.S. and Canada. At times like these, the claims services provided by the insurance industry are of particular importance to businesses and individuals. But while support provided after a disaster is the moment of truth for any insurance relationship, the enduring value of a company’s claims services is about more than just writing a check. It’s about building and nurturing relationships that encourage long-term trust, collaboration and resilience planning.

At Zurich, Claims is a central component of customer relationships from the beginning. Our claims professionals routinely collaborate with underwriters, risk engineers and actuarial teams in the acquisition and onboarding of customers, bringing to bear a broad portfolio of knowledge resources and staying engaged as the customer relationship matures and evolves over time. While this approach is relevant in the management of any claim, the full value of a strong, ongoing connection between our claims professionals and our customers and brokers comes into play most significantly when a severe weather event is imminent.

Throughout the year in preparation of hurricane season and anticipation of other catastrophic weather and natural disaster-related events, Zurich’s Catastrophe (CAT) Operations team uses a variety of tools – including satellite imagery – to assess the exposures of any customers who may be in the path of a potential storm. We proactively coordinate the service arrangements and readiness of damage-mitigation vendors, like structural engineers, accountants and other consultants who will be central to the timely investigation and resolution of claims after an event.

Alongside the advance work done by our CAT Operations team, Zurich risk engineers work proactively with customers to identify potential vulnerabilities to storm damage and business interruption losses. And our claims teams consult with customers well in advance to determine the resources and assistance they are most likely to need following a severe weather event.

As a named storm approaches, our CAT Operations team begins aligning materials and supplies to help ensure that customers can get back up and running as quickly as possible after the danger has passed.

We also reach out to customers and brokers in the path of oncoming storms to notify them that it is time to activate loss mitigation and resilience plans and to advise what support they need from us.

Zurich routinely provides a dedicated 24/7 claims hotline and other channels of communications such as internet, email and text messaging to help customers report claims. Recently, social media also played an innovative role in how Zurich anticipates and responds to the needs of customers before, during and after a major severe weather event. In the crucial hours after Hurricane Michael tore across the Florida Panhandle, a team of Zurich Claims professionals scoured the internet for images of the damage left by the storm. By crowdsourcing readily available social media images from the hardest hit areas, Zurich was able to get a head start responding to customer needs. In effect, even before claims were reported, our team members had early insights into which customers were likely to need help recovering from the storm.

After the danger of a catastrophic event has passed and our teams are allowed into the affected area, we immediately mobilize to help customers on the ground and oftentimes in the air using drones to quickly identify damage to facilities not immediately visible from the ground. The objective of our early activity is to help our customers get back on their feet and in business as quickly as possible, maintaining their own customer relationships and contributing to their organizational resilience.

In addition to deploying physical tools and professional resources as rapidly as possible, Zurich applies innovative technologies to more quickly assess and respond to customer needs. Using the science of predictive analytics, we are able to help customers affected by severe weather assess business interruption potential and strategies to mitigate it.

We employ a variety of decision-analysis tools to help support the strategic resolution of claims. And we utilize cognitive computing and software robotics tools to analyze large volumes of data and to recognize anomalies that may impact claims settlements.

Zurich believes that claims services are at the core of every customer relationship from the beginning, whether or not the customer ever experiences a serious or potentially catastrophic event.”

- Paul Lavelle

Zurich believes that claims services are at the core of every customer relationship from the beginning, whether or not the customer ever experiences a serious or potentially catastrophic event. Indeed, the ongoing, dedicated engagement of claims professionals can be one of the key factors helping customers to prevent claims from occurring and greatly mitigate those that do occur, once again supporting the ultimate goal of effective business resilience. © 2018 Zurich American Insurance Company. All rights reserved.

52 LEADERS

VOLUME 42, NUMBER 1

WE CAN HELP YOU SEE YOUR BUSINESS RISKS IN GREATER DETAIL.

The business you love deserves close scientific examination from our predictive analytics team.

They have analyzed millions of claims to provide our claims professionals with distinctive risk insights.

And by identifying the specific drivers that impact your company’s risks, they can help you manage them better.

SEE OUR PREDICTIVE ANALYTICS VIDEO AT zurichna.com/pa

ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE THEIR BUSINESS.

This is intended as a general description of certain types of insurance and services available to qualified customers through the companies of Zurich in North America, provided solely for informational purposes.

Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company, 1299 Zurich Way, Schaumburg, IL 60196. Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Some coverages may be written on a nonadmitted basis through licensed surplus lines brokers. Risk engineering services are provided by The Zurich Services Corporation (ZSC). ZSC does not guarantee any particular outcome and there may be conditions on your premises or within your organization, which may not be apparent to us.

Investing in the Future An Interview with The Honorable John Kasich, Governor, State of Ohio EDITORS’ NOTE John Kasich was else and no one wants it to continue sworn in as Ohio’s 69th governor on to be a problem.

January 10, 2011 and was reelected The other national issues, though to a second four-year term beginthey can affect us, do so in an indining in 2015. He served as a memrect way, and what we do in our local ber of Congress from central Ohio communities affects us every day. for 18 years and, as the Chairman The answer to the divisiveness of the House Budget Committee, is explaining to people the conseled the effort to balance the fedquences of only living in the moment eral budget for the first time since and focusing on the fact that we are 1969 and helped enact historic weleach our brother’s keeper. These are fare reform. After leaving Congress the things that will settle everything in 2000, Kasich worked as a man- The Hon. John Kasich down. aging director in the Investment Does the political system still Banking Division of Lehman Brothers, where work? he helped companies secure the resources they Yes. America still works. But are the polineeded to succeed and create jobs. He was also ticians incapable of solving serious problems? a commentator for FOX News, a Presidential Yes. They’re not resolving serious problems Fellow at his alma mater, The Ohio State because they are caught up in momentary University, and a candidate for the Republican success. nomination in the 2000 and 2016 Presidential If the debt is growing to $21 trillion, who campaigns. Kasich is the author of four New cares – all they know is they’re having a nice York Times best-sellers: Courage is Contagious; party right now. Thinking about what will hapStand for Something: The Battle for America’s pen down the road is something they’re not Soul; and Every Other Monday, which was pub- interested in, because that might make things lished in 2010 and focuses on the importance of difficult for them. faith in making both everyday choices and lifechanging decisions. His most recent book is Two Paths: America Divided or United.

When you look at the state of politics in the United States today, is it still possible to bring people together to address what the country is facing and cut through the divisiveness?

First of all, people are living in the moment at an unusual time in our country. When people live in the moment, it becomes increasingly challenging to get them to think about the long term. But it’s incumbent upon all of us to think about the long term and not just fixate on the momentary issues.

Second, and I have been talking about this for 20 years – the solutions to our problems lie in community activity. This is true whatever the issue is, whether it be hungry people, drugs, gangs or the problem with the fact that our kids aren’t learning. The solutions to these things lie right inside of all of us. These aren’t issues that are philosophical or that divide people. Instead, community activity allows us to come together to try to develop a solution for these issues.

Infant mortality, for example, is a community issue – it isn’t going to be solved by someone 54 LEADERS

It’s a momentary lapse of reason, to quote a Pink Floyd album, or a momentary lapse of being concerned about the long-term consequences for other people.

But there are a lot of good things happening. Think about the response we’ve seen with hurricanes and flooding this summer. The storm clouds had barely cleared and there’s the Cajun Navy, hundreds of volunteer boaters coming without hesitation from great distances to save and help people. It’s just one example, but that’s where America lives and where we thrive, not at the political level. The politics will change too at some point. Right now, it’s jumbled.

You consistently talk about investing for the long term. Do you believe that is possible in the Republican Party today and is it still the Republican Party you first joined?

Where I am, it is. The Republican Party in Ohio practices the politics of unity, not the politics of division. As a result, I’ve been rewarded with broad support and great success here. That is the way my whole team operates. We don’t operate on the basis of winning while someone else loses.

Governor Kasich at the opening of an Amazon distribution center in Ohio VOLUME 42, NUMBER 1

Governor Kasich signing the Ohio state budget

We heard some rumblings here that if a Democrat gets elected governor, maybe the power of the executive should be limited. If they tried to pull that on me, I would put a stop to it immediately. It’s about leaders at the top and having people throughout who can embrace their philosophy.

I’m not pessimistic about the country in regard to the political system. What is important is that everybody, regardless of what party they’re in, thinks about the long-term consequences of division, polarization, name-calling, and innuendo – that is not want we want to teach our children.

A lot of people in my office have kids in school and they want their kids to be kind and open. We have to stress that there is a consequence to this division that we may not see today, but that we will certainly understand tomorrow.

We have to get people to put themselves in other peoples’ shoes.

While much of the focus is on Washington, change happens state by state, and many feel that governors drive true change.

Is this correct and is it at the governor level where real change needs to occur?

It depends on who the governor is. It doesn’t matter where someone is, but rather what they do.

There are some governors who play politics and others who don’t. It’s not like there is some broad swathe we can paint. Some do a good job. Some are bold and some are not. It’s not magic. It’s like talking about a CEO of a business – some are good, some are bad; some like their golden parachute and some like to do their jobs. Everyone is different.

What are you most proud of having accomplished as governor?

I don’t look back. Legacies are for people who are dead. My feeling is that we have not ignored anyone in our state. I’m most proud that everybody here has a shot. It doesn’t matter if VOLUME 42, NUMBER 1

they’re at the bottom of the heap; we want to give them a chance to get to the top.

The goal is that no particular group is being held down and that everyone has a chance to grow and rise.

It’s time for the government to be reformed and to deliver a better product at a lower price.

How important has it been to engage the private sector and the business community to build a strong public/private partnership in Ohio?

We privatized economic development and that was a big and important step, so we now have people dealing with business who actually understand business.

Everything is a partnership, but it’s not just with business. There are many different interest groups that have to feel as though they’re included.

Sometimes, we run into a situation where we aren’t going to buy what some interest groups are telling us and we have to use our judgment.

However, we don’t do this on the basis of whether

someone voted for something. We do it on the basis of what will unlock the problem we face.

The business community, big and small, are the job creators. We want jobs – that is our moral purpose.

How frustrating is it that K-12 education remains broken and why can’t true reform be made?

It has to happen at the district-by-district or school-by-school level. I have concluded that a broad sweeping change to be adopted by everybody is not possible.

These changes and improvements must happen on a school-by-school basis. That is what involves community. We aren’t going to put up with failure in our schools.

Also, the key to good education in our schools is to get kids out of the classroom and into the area that they have passion for.

We have to teach them the basics and then get them into the real world where they can learn about resilience and how to address people and then to unleash their passions about something they have an interest in by seeing it in real time.

Kids follow their passions when they’re not in school; why can’t they follow their passions when they’re in school?

What can be done to get the debt under control and is it about having the right leadership to address it?

It comes down not only to the leadership being willing to address it, but a reform-oriented way to do it without having to hurt people.

There are ways to bring about dramatic change and regain fiscal control so we don’t swamp our kids with debt in the future, although we inevitably will to some degree. It requires a situation where we think about creative ways to restructure programs. It’s the 21st century and we’re nearing the first quarter of completing the century – it’s time for the government to be reformed and to deliver a better product at a lower price.

There is a lot of speculation about what is next for you. Is it hard to stay in the moment when there are so many forces pushing you to pursue other things?

There is a lot of change coming and this isn’t my first rodeo. I went through this the last time I left Congress. The key to it is to be calm, keep myself in the moment, do some prudent planning for the future – and pray.

For young people today who look at the world and are concerned about where it’s going, what do you tell them?

Those kids shouldn’t be scared. They need to think about finding the gifts they were given and figure out how to live lives bigger than themselves. That is what young people want today.

In terms of being frightened, there is no room for that in the mind of young people. If they find themselves afraid, they need to tell someone about it because, despite any of the troubles we have today in the short term, this is an incredible country and, in case anyone hasn’t noticed, everyone is trying to get here. Should there come a time when everyone is leaving, then we have a problem. Now our problem is that everyone wants to get here. So things are pretty good.

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Successful Growth Through a World-Class Culture An Interview with John F. Barrett, Chairman, President, and Chief Executive Officer, Western & Southern Financial Group EDITORS’ NOTE John Barrett has served as President since 1989 and Chief Executive Officer since 1994. He also serves on the board of directors of Cintas Corporation and is a past two-term Chairman of the Ohio Business Roundtable. Additionally, he is Co-Chairman of The Greater Cincinnati Scholarship Association, a director of the American Council of Life Insurers, and a member of the Business Roundtable. He is a former Chairman of the Medical Center John F. Barrett Fund for the University of Cincinnati and a former director of the Financial Services Roundtable. He holds a bachelor’s degree in business administration from the University of Cincinnati. Over the years, Barrett has served on the following corporate boards: The Andersons (Toledo, Ohio), Cincinnati Bell, Convergys Corporation, Fifth Third Bank, and Touchstone Securities.

COMPANY BRIEF Wester n & Souther n Financial Group (westernsouthern.com) is a Cincinnati-based diversified family of financial services companies with assets, owned and managed, of more than $75 billion. Western & Southern is one of the strongest life insurance groups in the world. Over the last 30 years, it has grown from a $5 billion regional life insurance company into a highly-respected national financial services enterprise.

What have been the keys to Western & Southern Financial Group’s success and how do you define the competitive advantage for the company?

The differentiating factor for our company has been our incredibly strong culture. It has grown from a small-town, Midwestern-roots culture into a world-class culture over the past 30 years.

As the business has grown and made acquisitions, is it more difficult to maintain that culture?

In most cases, we bring the senior people from companies we acquire to Cincinnati. We haven’t always done that and it’s not a rule but, in many cases, we will move the companies to Cincinnati after a period of time.

The cross-pollination of the people takes time, as the transition from one culture to another can be a challenge for some.

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We try to provide value to all our stakeholders – our associates, clients, customers and policyholders, and our communities. This has worked for Western & Southern and has been our strength.

Does providing value start with a focus on the employees?

Employees will do things right if you focus on them. We want each of our associates to have a long, rewarding and impactful career with us – not just a job. And at the end of their careers, we hope that they will feel they couldn’t have done better anywhere else nor could they have enjoyed their work more.

How challenging is differentiation and are you able to show what makes a company unique in this space?

Yes, we are, especially if you’re not dealing with the maintenance necessary at the highest end. We think we do a great job. Our people here are really good people. Everyone is blown away by our people and culture when they come and visit.

We ’ r e l o o k i n g a t m o d e r n i z i n g o u r headquarters. We had the lead architect in from Studios, the firm that designed Google’s headquarters, and he told me that Silicon Valley has nothing on us. Everything they do, we have been doing for years – the free meals for our

associates, the comfortable offices, the whole nine yards.

No one would believe that a life insurance company in Ohio has been doing these things for 50 years.

Is innovation taking place in the industry?

Innovation in financial services is a must or we will find ourselves out of business. This is why we have seen so much happening in all financial services – because technology has allowed companies with money to be able to do things that they never dreamed possible.

Money is the other key behind our innovation. We have to have a great culture and a large amount of capital, and this company has a much higher percent of its balance sheet in net worth than anyone else in our space. The reason for this is that we out-invest our peers.

In 1960, the population of this country was 180 million and 21 million life insurance policies were sold; in 2016, the population was 325 million and 11 million life insurance policies were sold. That’s a lot of underserved Americans.

Most companies have run to the high-end of the market. We didn’t. We bought companies that had high-end business, but we believed that our opportunity was in the middle market, and that’s where our bread and butter is.

Innovation in financial services is a must or we will find ourselves out of business.

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We have a vision that Cincinnati will be the best place to live, work and enjoy life.

And we engage with and give back to our community in support of that vision.

That said, the cost of doing business has to be brought down through the adept use of technology and business practices. All of us have had to invest in getting good at fin-tech.

Is technology more of an enabler that is enhancing relationships or do you worry that it is taking away from the human touch?

You have to marry the two. Technology is an enabler – we can get so many more things accomplished because of technology.

However, without the human touch, we’re not going to have the relationships. We have to do both.

Why isn’t there a better understanding about the importance of life insurance and planning for financial security, and is the industry getting that message out?

It’s not getting out nearly well enough. The average person used to say that they needed life insurance, but they could not afford it. Now the average person is worried about outliving their money, so this has resulted in this huge growth of the annuity market, which in 1960 was just starting.

We think people need both solutions – annuities and life insurance. We are the only industry that can guarantee an income for life with an annuity and then guarantee a death benefit so that one’s family can have the least financial disruption possible through life insurance.

Today, many families are blended, so the issue becomes who gets the benefits. These are tough topics. As an industry, we have to adroitly move through these issues and try to get people to continue to protect others beside themselves.

Western & Southern is in a long-term business making long-term investments.

How hard is it to find a balance between the short-term pressure for results and the need to make long-term investments?

It’s harder to sell people today on a longterm focus. Too many business people are focused on the short term, as are many of our competitors. But we know we make long-term promises to our customers, and we intend to honor those promises.

Is the story of the strength of Ohio, and Cincinnati specifically, as a great business destination being well told?

Not nearly well enough. The quality of life here is excellent – world-class companies, schools, sports, arts and parks, reasonable VOLUME 42, NUMBER 1

commutes, and beautiful neighborhoods. It’s also so much less expensive to live here than places like New York City or California.

Is young talent coming to Ohio, and are you able to find the workforce you need for the future?

Yes, we have a very vibrant labor market here, and they love our city. I lived in New York years ago when no one lived on Wall Street. That has changed. Today, in our city, we have opportunities for young people to walk to work just like in New York and other major cities.

W&S started the renaissance in Overthe-Rhine 30 years ago, and it has grown and prospered.

How important is it that Western & Southern is known as a company that gives back and is engaged with the community?

That is one way we attract and retain our talent. We have a vision that Cincinnati will be the best place to live, work and enjoy life.

And we engage with and give back to our community in support of that vision. From our senior officers who serve on not-forprofit boards and civic organizations to our multitude of associates who raise funds for cancer research through Ride Cincinnati and other charities, Western & Southern associates love this community.

Is community engagement a responsibility of business today and for real change to occur in major cities, is it going to be led by the private sector?

I hope so. One thing that could ruin the great thing we have going in Ohio is politics – the re-regulation of financial services, the unintended consequences of higher taxes – all of those things impact a delicate economic balance.

Business people have to be involved even if they don’t want to be. Our future cannot be trusted to anyone else; we need to secure the future ourselves.

In Ohio, there is a strong business community that works together through organizations like the Ohio Business Roundtable.

Will you discuss the strong relationship of the Ohio business community?

Ohio is the fifth largest state for Fortune 500 headquarters. Only New York, Illinois, California and Texas are ahead of us, so we have a very fertile business environment here.

The Ohio Business Roundtable led the effort to revise the tax code for business about a dozen years ago, and it has helped so much.

We took the personal income tax to under 5 percent per taxpayer and changed the way companies were taxed. This was a big deal, and our property taxes are also low. It’s a very affordable place to live.

What do you tell young people about the opportunities that exist within the insurance industry?

The diversity of businesses within our insurance company is considerable.

F o r instance, we are the oldest private equity firm I can think of – we did our first deal in 1984. We run a $3.5 billion private equity portfolio for third parties and ourselves. Technology is the backbone in financial services now; fin-tech is key, so we invest heavily there.

So many of the things that young people want for their careers, we already offer. The difference here is that our associates aren’t pigeon-holed into one thing. A person can move and develop in different parts of our enterprise.

We do real estate development, equities, bonds, annuities, life insurance, financial planning, pension, and financial services, and all the administrative support functions. We have many career niches in which young people might be comfortable and learn, grow and develop. We make a real effort to avoid keeping people in silos so they end up more well-rounded.

Eight of our top 22 executives are women.

We have a nine-person board of directors with two women members, so this is a very womanfriendly environment. We did this because we are a meritocracy. If you have the skills, you can do well here.

There is an AGE-old problem that has hurt some really good people – the A is arrogance, the G is greed, and the E is ego. Check those at the door and you can enjoy a wonderful career here.

With all the impact Western & Southern has made, do you find time to celebrate the wins or are you always thinking about what’s next?

I’m a constant dreamer and always thinking about what’s next. Just wait – the dreams I hope to realize over the next five years for our company and city will dwarf anything we’ve done so far. Buckle your seat belt, it should be a wonderful ride.

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Building Resilience An Interview with Steve Rosen, Co-CEO, Resilience Capital Partners EDITORS’ NOTE Steve Rosen is involved with all aspects of the firm’s operations including developing and maintaining r elationships with investors and investment inter mediaries, and the fir m’s strategic planning efforts. In 2001, Rosen co-founded Resilience at the age of 30. He is a member of many professional organizations, including the Ohio Chapter of the Turnaround Management Association and the Cleveland Chapter of the Young Steve Rosen Presidents Organization. Rosen also serves on the boards of directors of several companies including the Park-Ohio Holdings Corp. and Hickok Inc. Active in civic and community life, he serves as the Chairman of the Cleveland PresenTense Fellowship Steering Committee, The Boys and Girls Club Pathways to Resilience and in a leadership capacity with the Cleveland Clinic Heart Center and University Hospitals Cancer Center and the Milken Institute. He has been involved in public affairs, assisting Ohio legislators with developing the concept of a state-administered small business working capital loan program. An alumnus of the University of Maryland, Rosen also received an M.B.A. from the Weatherhead School of Management at Case Western Reserve.

FIRM BRIEF Founded in 2001 by Co-CEOs Steve Rosen and Bassem Mansour, Resilience Capital Partners (resiliencecapital.com) has assembled a team of world-class senior investment and operations professionals with broad industry experience and strong track records of success. It believes in partnering with management to enhance operations, strategy and finance. Resilience takes a long-term view and brings large company resources to the middle market as it manages in excess of $750 million for its global investor base which includes pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers, and investment consultants.

With a focus on companies headquartered in North America with operations anywhere in the world, Resilience makes equity investments of $10 to $50 million in a wide range of industries.

Will you discuss the vision for founding Resilience Capital Partners?

When we started Resilience in 2001, large corporations were getting all the headlines, but I recognized that talent was starting to move.

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I saw many smaller enterprises, which didn’t have access to capital or the best talent, were actually innovators and had good products. They often had only one banking relationship, and not the ability to scale. I made one initial investment and the firm was built from there.

What’s interesting about being from Cleveland, Ohio, is that the most important person isn’t a financial person; it’s the person who runs a business. I recognized that is where the real talent is. Financial engineering isn’t going to create value. I could have started my firm anywhere, but Ohio was a great place to do it because we have good hard-working people here, excellent professional advisors and, of course, investment opportunity.

I also recognized that many talented people who want to be a CEO won’t want to wait 10 years to be the person in charge. If those people find other opportunities while they are waiting, they’re going to leave. We started going after that talented group of people who were waiting to be CEOs and giving them an opportunity to become owners.

What do you look for when evaluating investment opportunities?

We see opportunities two ways: incoming through our network of relationships, from which we see over 1,000 opportunities per year, and in our outgoing strategy, where we’re building an investment thesis in an industry and end market segment need.

We look for niche market opportunities, which are what firms of our size should focus on.

Half of our portfolio has been built on outgoing searches for niche opportunities.

Family-owned businesses make up one third of our invested portfolio, corporate divestitures another third where we take divisions from inside of a large company that aren’t getting the attention they need and, finally, we look at opportunities where things are going wrong for other investors and the business plan they developed isn’t working.

Of the three, the challenges are mixed. Being the first institutional owner of a family business is often most challenging but has the most opportunity. If we can get the culture right, we can bring some talent and investment and punch above our weight.

Buying a business from a large company is probably the riskiest. That culture is the toughest to change and we must create an entrepreneurial/ ownership atmosphere. This is very difficult to do, but we have had some success with it.

We’re very good at fixing a troubled company, but this is getting tougher and tougher. We used to be able to fix a company quietly without much attention from customers and employees. Today, we’re in a glass bowl in the online digital world. Anyone can read about what it’s like to work at a company through Glassdoor.com and customers hear about problems before we can even contact them. It’s also important not to kill the flowers with the weeds.

Is there specific industry expertise for Resilience?

We’re industry agnostic yet we do have some favorites. Much of the industrial world today has been commoditized. It’s tough to chase trying to become the best processor. Today, there is nothing special about being automated and being a good manufacturer – anyone not doing that is going to be out of business.

We did very well from 2001 to 2010 by investing in basic industrial companies. Then, we had to make a shift in 2012/2013 after the financial crisis because many of those businesses became decimated.

We’re deep into aviation, but we try not to get too deep into regulated industries like healthcare.

Every business is a tech business, so we’ve added tech and intellectual property expertise in-house.

How important is cultural fit when bringing in talent for Resilience?

It’s very important. Having the right attitude at the top and in the ownership group creates enthusiasm. A great leader should be able to create more great leaders.

Leaders having conviction is also important and that comes from someone knowing what they’re doing.

There are few businesses in industries that we own today that won’t look somewhat different in five years. You need to be an active investor. Companies make investment decisions every day. We need to continually innovate so we need an agile team.

Small business and entrepreneurs drive job creation, yet much of the attention goes to large companies. Why isn’t the critical role of small businesses better understood?

It’s always about the loudest narrative today but, if we look at where the innovation is coming from and where millennials want to work, it is in small businesses.

The problem small businesses have is a lack of access to capital and the cash to conversion cycle has only gotten worse. When we come to the next recession, many businesses will struggle without the access to capital and, hopefully, they think to call Resilience.

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Our Strength Secures

Your Future Western & Southern Financial Group has a strong and distinct culture that makes our company the ideal place for a career and a rock-solid partner for your financial needs.

Everything we do is guided by our core values of integrity, long-term perspective, value for stakeholders, and top-notch performance.

Cris Collinsworth Western & Southern Spokesperson

WesternSouthern.com

Western & Southern Financial Group, Inc.

Cincinnati, Ohio. Spokesperson is a compensated endorser.

Western & Southern dates back to the founding of The Western and Southern Life Insurance Company in 1888.

WS-40033 1805

John F. Barrett Chairman, President and Chief Executive Officer, Western & Southern Financial Group

INTERVIEW

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Interview

Helping Businesses Stay in Business An Interview with Mark E. Watson III, Chief Executive Officer, Argo Group

Mark E. Watson III

EDITORS’ NOTE Mark Watson invested in Argo Group’s predecessor company, Argonaut Group, in 1998, joined its Board of Directors in 1999 and has served as President and CEO since 2000. Prior to joining Argonaut, Watson was one of two founding partners of Aquila Capital Partners, a Texas-based ventur e capital firm focused on technology and life sciences companies. Before this, he served as Executive Vice President and a member of the Board of Directors of Titan Holding Inc., a NYSE-listed property and casualty insurance group, from 1992 until its acquisition in 1997 by USF&G Corporation. From 1989 to 1991, he was an Associate Attorney with Kroll & Tract, a New York law firm focusing on international financial services clientele. In 1989, Watson was a Legislative Aide to Texas State Senator Donald Henderson, a role in which he helped draft legislation to create the first college savings bond program in the state, as well as the first mandatory alternative fuels bill, both of which were enacted into law. Watson graduated with a B.B.A. from Souther n Methodist University and a J.D. from the University of Texas School of Law. He is also an alumnus of Harvard Business School.

COMPANY BRIEF Argo Group International Holdings, Ltd. (argolimited.com) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market.

Argo Group offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses around the world.

What are the keys to Argo’s industry leadership and strong results?

Performance orientation is critical. We evaluate everything we do by asking two questions: First, does it deliver a measurable benefit to our clients? Second, does it produce a tangible result for our shareholders?

If we can answer yes to both, we keep doing it. If not, we change it.

How do you define Argo’s purpose beyond the bottom line?

We start with a clear mission, which is simply to help businesses stay in business. Most of our clients don’t have the financial strength to risk doing business without insurance, and we give them that strength. That’s what makes us valuable to them, and that’s how we achieve our own longer-term purpose, which is to secure the future for our business partners, our employees and our company.

We start with a clear mission, which is simply to help businesses stay in business. Most of our clients don’t have the financial strength to risk doing business without insurance, and we give them that strength.

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Our culture is rooted in four explicit and complementary values. We have the courage to do the right thing. We apply original thinking. We’re deeply committed to our clients and to each other and, we desire to excel.

Those four priorities guide us in what we do and how we get it done.

How do you define the Argo culture?

Our culture is rooted in four explicit and complementary values. We have the courage to do the right thing. We apply original thinking.

We’re deeply committed to our clients and to each other and, we desire to excel. Those four priorities guide us in what we do and how we get it done.

They enable a culture of collaboration and highperformance in work that is meaningful to us and valuable to our clients.

How critical is Argo’s focus on underwriting to the growth of the business?

Expert underwriting is the foundation of our business. As a global specialty insurer, we thrive precisely because our underwriters have the kind of deep domain expertise that gives us the edge. You have to appreciate that we provide coverage in situations where there is limited historical data, where the conditions may be rare or novel, and where our experience and good judgment matter even more than pools of data from large-scale operations. It’s the deep specialty knowledge of our underwriters that differentiates us, and that’s where we’ll continue to shine.

What are Argo Group’s brands, and how ar e they each positioned in the market?

We think of our brand as the net impression we leave on our stakeholders. While we have several strong specialty brands in various markets, our individual businesses are guided by overarching Argo Group brand attributes.

How is technology impacting Argo’s business?

More than a decade ago, we saw that insurance had to become a technology-propelled industry. We knew that any company that lagged would suffer. We invested heavily in four complementary streams of digitization: data analytics, process automation, product innovation and service delivery. As a result, we’re reinventing ourselves, and our results are proving the merit of our commitment to technology.

Where is innovation taking place for Argo, and is the insurance industry as a whole doing an effective job of innovating?

We define innovation as any improvement that produces a clear benefit for our customers. As such, innovations can be process refinements that reduce the time it takes us to respond to our brokers and producers, new systems for aggregating and combining data sources so underwriters can select risk with greater accuracy and confidence, and

new products and platforms that make it easier for our clients worldwide to interact with us in ways that make their own lives easier.

How is technology changing your workforce?

Technology has become integral to virtually every development in business and society.

While our industry has been slow to digitize, we know that new realities such as artificial intelligence, machine learning, Internet of Things, virtual reality, and autonomous transport will arrive at a vastly accelerated pace. We have to be there as they develop. As such, we’ve invested heavily in technology that supports our workforce and brought leading technology practitioners – such as data scientists and climate modelling experts – onto our team.

You often speak of your teams’ focus on the needs of their customers. Is that a constant priority?

Absolutely. As a global specialty insurer and reinsurer, our customers may be policyholders, but they are just as likely to be brokers, managing agencies, and even other insurance companies.

Our relentless customer focus requires and inspires us to train and select employees who understand that their customers’ perception of our value is the most important element of our business.

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Expert underwriting is the foundation of our business. As a global specialty insurer, we thrive precisely because our underwriters have the kind of deep domain expertise that gives us the edge.

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INTERVIEW

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Interview

Real Estate and Homeowners’ Representation An Interview with Spencer M. Sax, Founding Partner, Sachs Sax Caplan P.L.

Spencer M. Sax

EDITORS’ NOTE Spencer M. Sax is a Founding Partner of Sachs Sax Caplan P.L. and Chairman of the Commercial Litigation & Appeals Practice Group. He is Board Certified in Condominium and Planned Development Law by the Florida Bar and has practiced law since 1980 with an emphasis on commercial, construction, real estate, and community association litigation. He was a Commissioner appointed by Governor Jeb Bush to the Judicial Nominating Commission for the 15th Judicial Circuit. He also served as Chairman of the Florida Bar Unauthorized Practice of Law Committee for the 15th Judicial Circuit. Sax is a former Chairman of the Florida Bar Grievance Committee 15D and a former President of the South Palm Beach County Bar Association. He is a certified arbitrator and AV® Rated attorney, and his diverse litigation practice includes significant trial experience in both state and federal court, AAA and NASD arbitrations.

FIRM BRIEF Sachs Sax Caplan, P.L. (ssclawfirm.com) offers effective legal and business solutions to individuals, businesses, not-for-profit organizations, government agencies, country clubs and community associations in Florida. Sachs Sax Caplan, P.L. is rated AV® by Martindale-Hubbell®, the highest peer review rating attainable, awarded to only one percent of law firms reviewed.

Will you discuss the vision for creating Sachs Sax Caplan and what has made the partnership work so well?

I have to give a lot of credit to my partner, Peter Sachs – he started the firm in the 1970s when condominium and homeowner’s statutes were passed by the legislature. He recognized there was an opportunity for expertise in this brand new market.

When Peter and I became partners in 1985, the market had already started to mature. We began to represent more associations and developers and also started representing corporate and commercial clients. This allowed the firm to branch out into areas beyond what we had originally planned.

Over time, we added attorneys who had a passion and interest in representing associations.

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We then brought in attorneys who represented developers. Ultimately, we added more attorneys including attorneys from smaller firms who wanted to join a bigger firm. We have been able to integrate their practices into ours, all with the same goal, which is to provide quality legal work for associations and corporate and developer clients.

Are associations still the sweet spot for the firm?

Associations are still the sweet spot. They represent a growing business as developers continue to develop more projects and, therefore, it remains the core of the practice.

That said, we have extended our practice to handle commercial, other real estate related litigation, as well as land use and governmental work.

Because of our representation of communities of hundreds of thousands of people, this permitted us to add attorneys in family law, probate and other ancillary areas of practice to put ourselves in a position to be a full-service firm.

How challenging is it to differentiate in this space?

What makes a firm special for a client starts with the quality of the work performed, but there is also a personal relationship that develops. It is understandable that clients want to work with attorneys who they feel are on the same page as they are and whose company they enjoy. Ours is not a cold practice where we just provide a standard service for a large corporate client. The interaction of the attorney with the client here is professional but warm and those personal contacts are important.

Has technology enhanced the time you have with clients or do you worry that the personal relationships are being lost?

Clients still want personal contact. We continually modernize the firm to make our operation more efficient and some clients appreciate that there are types of communication that didn’t exist previously, but it still comes down to the personal contact. Our practice often requires attending meetings in the evening with clients and with boards of directors. This differentiates our main area of practice from other areas of practice in other types of firms; we have to be hands on.

What is your approach to attracting talent to the firm?

We do not recruit attorneys just coming out of school. Generally, our attorneys have either been at a larger firm and are looking to go to a midsize firm to have a better opportunity to have more client contact or are from a small firm who are looking to join us for our reputation or client base. In

addition, over the years we have had politicians including state senators, state representatives and school board officials who both practice law and fulfill their public duties. One of our former partners left to become a U.S. congressman.

How important is it that your partners are engaged in the community?

It’s imperative to have well-rounded attorneys in our firm. We strive not to have partners who are just a cog in a wheel producing profit for the firm.

Our model is to have well-rounded attorneys who are active in the community, who originate and build business, and who are going to be long-term partners of ours.

Where do you see the greatest opportunities for growth for the firm?

Because of our location, we can service a large area from the Florida Keys to Orlando. It is difficult to represent clients beyond that geographic area because we have to travel to get there and it won’t necessarily be cost effective for the client.

We focus on gaining a larger market share and expanding our representation of new communities that are coming online as well as adding additional developers and governmental entities.

With the strong growth of real estate development that has taken place in South and Central Florida, what is your outlook for the future of the market?

Back in the 1980s we saw that South and Central Florida were large growth areas with a significant amount of land to be developed, so we knew we were in a good market for the services we were providing.

There is still room for additional growth in this area. We have seen various economic bubbles where development stopped but, even then, work didn’t slow down at our firm because existing associations still needed service and litigation usually increases in tough economic times. Also, construction lawsuits can take years to be resolved.

There are also new projects that are coming online so even during the recession, our business was unaffected because of all of the projects in the pipeline.

This is how we have maintained a steady workflow regardless of economic ups and downs.

Some other firms have boom and bust practices – foreclosure practices that do well in tough economic times and real estate practices that do well in strong economic times. We have always prided ourselves on the consistency of our business model.

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VOLUME 42, NUMBER 1

INTERVIEW

INTERVIEW

Interview

Long-Term Commitment An Interview with Steven James, President and Chief Executive Officer, New York City, Douglas Elliman Real Estate

Steven James

EDITORS’ NOTE Steven James has more than three and half decades of residential sales experience and joined Douglas Elliman in 1990. As Pr esident and CEO of Douglas Elliman’s New York City Brokerage and director of sales for its East Side office, he advises brokers and oversees all aspects of their deals.

He also works closely with the executive sales management team throughout all of Douglas Elliman’s New York City offices. For more t h a n 1 5 years, James has served on the Board of Directors at the Real Estate Board of New York (REBNY), as well as serving terms on REBNY’s Ethics Committee and Deal of the Year Dinner-Dance Committee. In 1998, James was recognized with the Henry Forr ester Memorial Award, the highest honor awarded to a residential broker. He attended North Texas University and the University of Hawaii before moving to New York to pursue acting at the American Academy of Dramatic Arts.

COMPANY BRIEF Established in 1911, Douglas Elliman Real Estate (elliman.com) is the largest brokerage in the New York Metropolitan area and the third largest residential real estate company nationwide. With more than 7,000 agents, the company operates approximately 113 offices in New York City, Long Island, the Hamptons, Westchester, Connecticut, New Jersey, Florida, Califor nia, Colorado and Massachusetts.

Additionally, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial.

Will you discuss Douglas Elliman’s approach to hiring and training in a diverse market like New York City?

Douglas Elliman has a vision that is not about what anyone else is doing, and that is VOLUME 42, NUMBER 1

a good trait. We need to make this firm a true representation of New York City. We need all kinds of people in all kinds of areas in all parts of the city working for this company.

They all must share the same motivation to do a really good job and be experts at what we do.

We have become extremely broad-based in our hiring and have given a lot of new people a start. I really care about training.

There are many people working in real estate who have never understood what they are supposed to do. I wanted to start a training program at Douglas Elliman for brand new people in the industry. We started with a very small training program, which is now enormous. It’s like a university within this company and that has been very gratifying to see.

Are you surprised to see the real estate development that has taken place in every part of the City?

I didn’t see it coming. We knew the potential was there, but we didn’t believe it would happen – then it happened rather quickly.

The market Downtown was probably the biggest catalyst for us moving our headquarters there. When I first came to Elliman, there was an office on the West Side and on the East Side, as well as ones in Greenwich, Locust Valley and New Jersey.

Since then, we have made several intelligent acquisitions that have helped us grow immensely. In addition to opening two offices Downtown, we were also pioneering when we opened a gallery of fine homes across from the Carlyle Hotel. We took the most incredible photographs of our properties and put them in these huge and beautiful art gallery frames.

This location acted as a showcase of our properties and also as a small storefront office. The business that comes in from this location blows us away.

Additionally, we were one of the first to produce a magazine in which we presented all of our properties with agent names and contact information. We then worked out a deal with The New York Times to distribute it as a special insert to the newspaper.

All of these moves have brought us to where we are.

Is it still important to have offices for brokers to collaborate even with the advances in technology?

It would be easy to fall into a current pattern of saying it’s not necessary. However, there are a few things to remember: one is, this is a business that requires talking. One can view a property online, but in the end, the agent has to talk to the client and they have to see each other because they want to see the property. Because of that, there is still potential for storefronts. Our storefront at 980 Madison still brings in people who come in to see the properties we have and to talk about what else we might have that they are looking for. This is also true of our other storefronts.

The second thing is that 70 percent of the New York City residential real estate market is co-operatives. That is a very important fact to be aware of because not everyone can get into a co-op so easily without the help of a seasoned real estate agent. It takes a broker to get someone past a board of directors. This means someone can’t just buy a co-op off the Internet.

We just opened a new space Downtown which looks like a living room because we want people to come in and feel comfortable starting a conversation with us.

Douglas Elliman services the first-time renter all the way to the most expensive properties available. Is this well understood and how important is that message as part of Douglas Elliman’s brand positioning?

It’s really important. I came to Elliman in 1990 and one of the phrases we worked to promote and encourage was “Cradle to Grave.”

That says it all. We can start someone with their first-time rental and take them to the purchase of their first apartment and on to their sevenbedroom apartment. We are part of each of those processes, and we work with our agents to ensure they understand this.

That also expands to our other regions, especially in the Hamptons, parts of New Jersey and Connecticut, as well as to California, Palm Beach, Miami and Aspen.

All of our offices benefit from this so our relationship to each other within this organization is just as important as our relationship to people outside of the company. We all work together to be a part of this process in people’s lives.

The company has always been known as being at the upper end of the market and, while that is a great market, it can be treacherous to focus on that alone.

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LEADERS 63

A Centenary Story of C.V. Starr & Co.

Shanghai, People’s Republic of China October 27, 2018 A special event was held on October 27, 2018 in Shanghai to celebrate “A Centenary Story of C.V. Starr & Co”, the leading global insurance company founded in Shanghai, China, in 1919.

Maurice Greenberg and senior leaders from Starr joined VIPs and government and business leaders from China to highlight this special occasion and to discuss Starr’s history as well as Mr. Greenberg’s lifelong commitment to U.S.-China relations.

Maurice Greenberg, Chairman & CEO of Starr Insurance Companies

64 LEADERS

Liu Qi, Discipline Inspection Commission of CIRC Shanghai (right)

VOLUME 42, NUMBER 1

Catherine Bao, Business Developer of Sales Dept. of Starr Property & Casualty (China) Co. Limited Suzhou Branch (left); Frank Zhang, Chairman of Starr Property & Casualty (China) Co. Limited (center); Violet Lv, Business Develop Asst. of Tech Dept. of Starr Property & Casualty (China) Co. Limited (right)

Jessie Wu, Head of Actuarial Dept. of Starr Property & Casualty (China) Co. Limited (left); Daisy Yue, Head of Admin Dept. of Starr Property & Casualty (China) Co. Limited (center); Tingting Li, Head of Legal Compliance Dept. of Starr Property & Casualty (China) Co. Limited (right)

Left to right: Jinglin Hu, Head of Reinsurance Dept. of Starr Property & Casualty (China) Co. Limited; Noka Ri, Head of Information Technology Dept. of Starr Property & Casualty (China) Co. Limited; Sydney Zhao, GM of Starr Property & Casualty (China) Co. Limited Suzhou Branch ; Maurice Greenberg, Chairman & CEO of Starr Companies; Eva Yin, Senior Manager (East China) of A&H Dept. of Starr Property & Casualty (China) Co. Limited ;Wenjia Fan, Group Insurance Manager of A&H Dept. of Starr Property & Casualty (China) Co. Limited ;Catherine Bao, Business Developer of Sales Dept. of Starr Property & Casualty (China) Co. Limited Suzhou Branch

First Line - left to right: Donald A. Guloien, Former President & CEO of Manulife Financial Corporation (with his wife); Ulrich Spiesshofer, President & CEO of ABB Ltd.; Maurice Greenberg, Chairman & CEO of Starr Companies; Mark Weinberger, Chairman & CEO of Ernst & Young; Kunlin Xu, Vice Mayor of Shanghai; JinShan Gu, Deputy Secretary-General of Shanghai Municipal Government; WeiMin Zhu, Deputy Director of Foreign Affairs Office of Shanghai Municipal People’s Government; WanChun Wang, Secretary of Shanghai Symphony Orchestra; Second Line: Gérard Mestrallet, Chairman & CEO of ENGIE; Orit Gadiesh, Chairman of the Global Board of Directors of Bain & Company, Inc.; Paul Manduca, Chairman of Prudential Plc; Jacob Wallenberg, Chairman of Investor AB; Robert E. Moritz, Global Chairman of PricewaterhouseCoopers Int.; Brian Duperreault, President & CEO of American International Group, Inc

Maurice Greenberg (center) with senior Starr executives from New York and Shanghai

Starr China group photo

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INTERVIEW

INTERVIEW

Interview

A Trusted Advisor An Interview with Gary Mandelblatt, Managing Partner, NextGen Strategic Advisors

Gary Mandelblatt

EDITORS’ NOTE Gary Mandelblatt is a Managing Partner at NextGen Strategic Advisors with 33 years of experience working with financial institutions in managing market, credit and operational risks, managing regulatory relations, implementing regulatory requirements, defining strategies and building businesses. Mandelblatt was the Chief Risk Officer for Nomura Americas and Chairman of Nomura’s Global Dodd-Frank Implementation program. Prior to Nomura, he was a Managing Director at the Lehman Brothers Estate after having served as the Global Head of Fixed Income Strategy at Lehman Brothers. Before joining Lehman, Mandelblatt was Managing Dir ector at Smith Bar ney, Salomon Smith Barney and Citigroup. He was also a consultant with Coopers & Lybrand and First Manhattan Consulting Group.

COMPANY BRIEF NextGen Strategic Advisors (nextgensa.com) provides clients with demonstrated financial services industry experience, deep expertise in strategy, governance, risk management, regulatory implementations, IT and operations issues, and proven insight into their biggest challenges and greatest opportunities. NextGen Strategic Advisors’ mission is to assist financial services industry clients to thrive in the post-2008 crisis, next generation regulatory environment.

What was the vision for creating NextGen Strategic Advisors (NGSA) and how do you differentiate the company from its competitors?

We created our company to provide our clients with executive management level experience, expertise and insight based upon the partners’ collective experience in the financial services industry as both C-Suite managers and senior level management consultants. Our primary objective and key differentiator is that the NGSA partners are always highly engaged in the client projects.

The partners are truly in this business to work with our clients. We have all seen and 66 LEADERS

hired other firms where the partners sell the project and then evaporate. Each of our partners are committed to ensuring that we deliver our best work to the client every day. We only bring in our junior staff to leverage the partner efforts, not to inflate projects. We know from our experience that our approach is working and is effective. Our clients have been telling us that we deliver significantly more value at lower costs than our competition.

We also provide pragmatic, real world recommendations and actionable solutions. Our staff is highly experienced with more years of experience at each level than our competitors.

In addition, we work to right-size staffing to meet our client’s objectives and provide a compelling alternative to large, highly-leveraged consulting firms.

Will you provide an overview of the services and solutions that NextGen Strategic Advisors offers?

NGSA only provides services directly consistent with the partners’ areas of expertise and experience. We provide management consulting services to financial institutions in business strategy development, regulatory compliance, risk management implementations, operations efficiency, technology design and expense reduction.

Where so you see the greatest growth opportunities for NextGen Strategic Advisors?

Over the long-term, our experience with our clients shows that our greatest opportunities will come from C-Suite and Senior Managers who have worked with us and who, based upon the quality of our work, ask us to solve or address their most pressing problems. We have had very positive experiences with our clients starting with one project and then watching the engagement grow to address numerous complex topics. While we have a long list of services and solutions, for the most part we see these specific services as a way to prove our value and to position the firm as the trusted advisor with senior management. This positions NextGen to expand our services to our clients because they know that we will deliver thorough pragmatic solutions to the most complex and difficult issues that need to be resolved.

In the short-term, NextGen has a strategic advantage in working with firms to implement the Securities and Exchange Commission’s upcoming security-based swap dealer requirements. After the 2008 crisis, Title VII of the

Dodd-Frank Act was designed to enhance the regulatory oversight of derivatives trading.

The SEC has indicated that it will finalize its rule set in the coming months. NextGen is the only consulting firm that has worked with a G-SIB client to prepare to implement the SEC requirements. NextGen has broken down the SEC’s 2,535 final and proposed rules and developed an implementation plan for every single rule. We can help our clients implement these rules efficiently and cost effectively. In the process, we will work our hardest to build our relationships with our clients to position us to provide solutions to their most pressing issues.

How do you define the target market for NextGen Strategic Advisors?

The target market for NextGen includes the largest U.S. banks and U.S.-based foreign banks.

Our partners have extensive experience working with the largest commercial banks, investment banks and capital markets firms.

How important has it been to build the team at NextGen Strategic Advisors and what do you look for when bringing in talent?

In consulting, the single most critical key to success is our people. My partners each have more than 25 years of experience in the financial services industry. Doug Butler ran IBM’s Global Financial Services Consulting Practice and Willem van Rijn was a Senior Partner at PwC. They are the best consultants I have ever met. As a team, we strive to hire only very highly experienced, extremely knowledgeable and personable individuals that can deliver insights and solutions to our clients.

What has made the partnership with your co-founders work so well and how do you each focus your efforts in the business?

The strength of our partnership is based upon the complete respect we have in each other’s expertise and capabilities, the trust we have in each other and our mutual desires to build a successful management consulting firm. Willem is the best business strategist I have ever worked with and Doug’s expertise in systems and operations is highly respected in the industry as indicated by the senior management roles he played at IBM. My expertise is in risk management, regulatory, and financial institution strategy. Our core skills are highly complementary, and our expertise combines to provide the full suite of services needed to compete at the largest banks.

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VOLUME 42, NUMBER 1

INTERVIEW

INTERVIEW

Interview

Building a Community An Interview with Joe De Sena, Founder and Chief Executive Officer, Spartan

Joe De Sena

EDITORS’ NOTE From selling fireworks at age eight, building a multimillion-dollar pool business in college, creating a Wall Street trading firm, and now the world’s fastest growing sports movement, Joe De Sena has demonstrated his entrepreneurial drive since his pre-teens. Following a successful career on Wall Street, De Sena moved his family to Pittsfield, Vermont to operate an organic farm, a bed and breakfast, and a general store for hikers. His passion for ultramarathons, adventure races and endurance events led him to start the Spartan Race and to compete in more than 50 ultra-events overall and 14 Ironman events in one year alone. De Sena has written two New York Times best-selling books, Spartan Up and Spartan Fit, and has just released his latest book titled, The Spartan Way: Eat Better. Train Better. Think Better. Be Better.

COMPANY BRIEF With more than 275 events in more than 40 countries, Spartan (spartan.com) has more than a million global participants and offers open heats for all fitness levels and ages, as well as competitive and elite heats. The company has more than five million passionate social media followers, health and wellness products, and two popular NBC television series, making obstacle racing one of the fastest growing sports and lifestyles in the world. As a leader in the sport, Spartan is the first obstacle racing company to feature timing and global rankings.

What was your vision in creating Spartan?

I definitely mistimed the timing of its launch. I started it in 2000 when the Internet was just getting going. There wasn’t a social network yet. I didn’t understand digital marketing and it didn’t exist like it does today.

The first format I put together was way too long – it was a 400-mile race. There wasn’t a big uptake there.

I changed the format and the name in 2010.

Spartan has proven to be an unbelievable name.

It provides incredible opportunities for products from leadership materials and events to drinks, etc. I was at the right time at the right place with VOLUME 42, NUMBER 1

the right name while things like CrossFit were becoming big.

There may be great ideas backed by great execution plans, but without the right timing, they won’t work.

How has Spartan’s product offering evolved over time?

In 2009, we cut back from a 350-mile race to three miles, but I wanted it to be three miles that still could change someone’s life. At first, I was skeptical because three miles wasn’t enough in my mind. However, when we consider the fact that most people sit in a chair or on a couch all day, and then with the addition of 30 obstacles to those three miles, it is a lot. It shook people up – in a good way – more than I thought it would.

I happened to be at the finish line of our first race with someone from Discovery Channel whose job was to determine whether TV shows would be aired or not. He was really good at seeing people’s visceral reactions and he noticed that the participants were literally being transformed.

That gave me the motivation to push even harder. I had been doing this for 10 years and was feeling insecure because I had blown millions of dollars and could not get it to work.

It really helped to find myself with this person from Discovery Channel who knew what he was doing and having him vouch for the impact it was having.

We did a few more races and kept tweaking them. Ultimately, we realized that people like to progress, so three miles was no longer enough.

We wanted to take them from three to eight to 13 and now offer the Sprint, the Super, and the Beast to do this. There are also 141 other products, but those are derivatives of these three core products. We are now in 41 countries with 275 events and 1.1 million participants a year.

Where do you see the greatest opportunities for growth?

To put on our races, imagine renovating a kitchen on the side of a mountain during a rainstorm and needing to have it done in four days.

This is not like putting on a marathon where it’s all on the road – this is difficult logistically. We do this 275 times a year around the world in countries where it isn’t so easy.

I don’t expect much growth in the number of events but I expect growth in the number of participants – I think we’ll eventually get to two million people. There are roughly nine additional countries I want to enter.

When we talk to investors, they all want to know how many more races we can do. We can probably do another 60 or 70 in China and in Europe, where there is room for more. However, we can’t do one every weekend because then the medal that people earn at the finish line would lose its luster. We have to keep it somewhat exclusive – like the NYC Marathon.

Are the races primarily for people who are athletes?

Of the 10,000 people competing in a race, those in the front of the pack are literally the fittest human beings on earth. They could be put against the best of the best in any sport and few could compete with them. We have tested them and their scores in the laboratories are above any athletes that have been measured.

The reason is that there aren’t many sports where the entire body is at work – crawling, jumping, climbing, swimming, etc. These people go through 40 obstacles over 13 miles and they’re still completing each mile in the 5:20s.

Who else does that?

The rest of the group are moms, monks, marines and others of all ages. It’s an unbelievable, very diverse cross-section.

Have the participants become a community and how important is it for Spartan to build a community?

The number one reason we have been successful is community. Too many people today sit around staring at their phones all day, so we’re becoming more disconnected from people and our environment. When we create a weekend that brings together 10,000 like-minded people to do something that is very positive and healthy, it feels really good and people want to remain a part of this community.

If that sense of community didn’t exist with people helping each other over obstacles and talking about suffering together, I don’t think we’d be anywhere near where we are today. It might be our most important reason for existing.

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LEADERS 67

"We are the world’s most expensive framing company for good reasons" - Eli Wilner

Eli Wilner & Co. created the 12’ x 21’ replica frame (above) for Emanuel Gottlieb Leutze's 1851 painting Washington Crossing the Delaware, which dominates the Metropolitan Museum of Art's American Wing.

For over 40 years I have been creating frames for the world’s finest art collections.

I understand that one of the most important commodities you have is your time and the last thing you want to do is waste it.

That is why the level of service and skill that would be extraordinary for most is standard at Eli Wilner. I understand that you want your art framed beautifully, created with extraordinary skill, delivered on time and installed professionally. The first time!

The number of times that I have been called in to repair others’ work is shocking. Who has the time to do things twice?

When asked what separates us from other firms I offer the following: • I personally oversee each frame choice as it relates to scale, period correctness and aesthetics.

• We are obsessed with providing perfection for each framing project.

• We employ the finest carvers, gilders and finishers in the world.

• We include a Lifetime Quality Guarantee.

• We have been the framers for the Metropolitan Museum, the Smithsonian, the White House, Sotheby's and Christie's since 1983.

• We are the recommended frame restorers by Chubb and AXA art insurance companies.

• We offer incredible white glove service that is flawless and unmatched by any profession.

• We respect your desire for confidentiality and go to great lengths to insure your privacy. Historically we have used pseudonyms for our clients.

• There are no extra charges: Included are preliminary drawings, mockups, travel time, fitting, a photographic record of the work process, crating and shipping.

• We provide a guaranteed delivery date (often impossible for anyone else to meet) or the entire project is free.

I look forward to speaking with you about your next project.

I promise not to waste your time!

1525 York Avenue, New York, NY 10028 212-744-6521 | www.eliwilner.com | info@eliwilner.com Antique Frames, Antique Frame Restoration, Antique Frame Replication

INTERVIEW

INTERVIEW

Interview

Thailand’s Future An Interview with The Honorable Dr. Issara Sereewatthanawut, Deputy Secretary General of the Democrat Party of Thailand, Honorary Consul and Head of Mission - Consulate of the Republic of Moldova to the Kingdom of Thailand, and Automobile Executive

The Hon. Issara Sereewatthanawut (above) and at work (opp. page)

EDITORS’ NOTE Dr. Issara Sereewatthanawut is currently Deputy Secretary General of the Democrat Party Thailand and Honorary Consul and Head of Mission at the Consulate of the Republic of Moldova to the Kingdom of Thailand. Befor e joining the Democrat Party, he served the country in various advisory roles in the Parliament of Thailand as well as the Central Intellectual Property and Inter national Trade Court.

Dr. Ser eewatthanawut sits on the Boar d of Dir ectors for automotive companies, located in Thailand, Eur ope and China.

He also teaches at both public and private universities in Thailand. His alma maters include Chulalongkor n University and Imperial College London where he received his bachelor’s and Ph.D.’s degrees in chemical engineering. He also pursued a Master’s degree in Public Administration from Ramkhamhaeng University and r eceived post graduate training at Harvar d Law School and the University of Pennsylvania Law School 70 LEADERS

What are your views on Thailand’s politics over the past decade and how did you become interested in politics?

Although Thai people have strongly supported the principles of democracy as we believe it is the least terrible system, during the past decade, I regard Thailand’s politics as a rather “Illiberal Democracy.” Why? There are a series of activities which led to this. These activities also happened in many developing countries around the world, starting with elections that were not totally free and fair, and then the abuse of political power (for instance, a parliamentary dictator or an extrajudicial execution).

Next, we experienced the populism policy and a political polarization, which separated people into two groups – one that gained and one that lost – leading to protests. This came out naturally as people who suffered from being taken advantage felt angry. Then, the country’s politics became deadlocked and this required military intervention to unlock. After the sanction, the structural reform was not as strong as expected, thus the same thing repeated itself again.

As for my interest in politics, I have always believed in the principles of the charter of the United Nations and in its millennium goals. Having followed Thai politics closely through many channels, I realized that there are many problems that need to be solved. Through my experience and exposure, I want to play a part in making this kind of politics fade away in the not-too-distant future so that people can consider Thailand as a better and more civilized country. To that end, I want to make a difference in Thai society by instilling in people the passion to learn, the eagerness to be strong, the practice of patience and the adoration of virtue.

How will Thai politics be impacted by the new election system and constitution to be instituted in 2019?

The laws that have recently gone into effect and the new constitution are considered to be quite long and complicated. We acknowledge that the new system is aimed at being constructive by raising the level of people’s participation.

However, I thought that it may be difficult to put into practice unless some modifications and amendments are made. Some even have doubts about those in political power and their motivations in creating the new rules. Thus, there is a high possibility that we will see the continuation of the current political circumstances rather than a big change. My hope is that every player,

whether new or old candidates, will uphold the rule of law and work to create free and fair elections.

In a recent interview, you quoted from His Royal Highness Prince Mahidol of Songkla who said, “The genuine success of education is to be able to apply knowledge for the interest of the society.” How can education reform enable the Thai people to prosper in the future?

Education has long been a core pillar of Thai society. Long before the establishment of schools and universities, Thai people studied in the temples. Now, the advancement of technology has enabled everyone, regardless of the age, to learn anything at any time, anywhere, and sometimes for free. The world has also begun to adopt the concept of hiring those without degree qualifications as long as they have the abilities and skills necessary to meet the requirements, which supports the trend of a degree no longer being looked at as the only success indicator. As a result, I strongly believe that a visionary leader could cause Thai education to take a quantum leap through technology. We have to focus on improving the quality and equality of our education of all types and at all levels and ensure that everyone is able to access reliable knowledge sources, be creative in applying the knowledge and skill they gain to make a viable living and, ultimately, develop their consciousness and give back to the society and country. I believe there is still room for improvement with this in Thailand.

What is the perception in Thailand of its young leaders and the next generation and how they compare with the global trends?

I think the young people of Thailand follow the global trends closely because they have grown up with globalism and the technological revolution as those in other countries have.

From my point of view, we should admire any capable leaders based on their performance, not their ages, so I prefer to call them modern leaders. They are the group of leaders who are aware of the rapid changes taking place and are able to successfully adapt their thoughts and behaviors to those new dynamics. The new generation might have slight advantages as they were born into this era and are naturally exposed to the digital technology. This is a group that tends to be diverse and independent. However, the Thai modern leaders and new generation still VOLUME 42, NUMBER 1

strongly adopt Thai values, traditions, customs, and manners, and they sometimes even blend them with the western culture as they see fit.

Although we are living in the western-leaning society these days, Thais still respect seniority, put our hands together to greet each other, and embed in ourselves the practice of being considerate and thoughtful.

You talked about the new generation of national leaders emerging in Thailand.

How do you think they can generate a positive impact for the country in the coming years?

The new generation can certainly energize positive impacts for the country, whether it be sooner or later. In my personal view, national leaders require a new, high-level of competencies. They need to have the confidence to make accurate decisions quickly, the courage to fight for what they believe despite unpredictable and challenging environments and, more importantly, the ability to be creative. The new generation has trained to acquire those competencies. They are talented in adapting themselves and are also ambitious and optimistic, but not overly so. Thus, this generation is ready to handle the information and people flows, both at the national and international levels. More importantly, this group will have to live with the consequences of these policies the longest. I will be very pleased if we all begin to think beyond ourselves, and think more about the community, the society and the national security of Thailand while measuring each decision on an ethical dimension. That will truly be a positive development.

How should Thailand be reacting to the recent changes in the foreign policies of major economic powers like the U.S., China and the EU? These entities are all important to Thailand.

We should balance and manage our policies regarding them carefully. It would be easier to look at them just like any other relationship, but the exchange that we have with them is not at the level where everyone is happy. We can talk

I want to make a difference in Thai society by instilling in people the passion to learn, the eagerness to be strong, the practice of patience and the adoration of virtue.

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about trade with China; about technology, tourism and cultural aspects with the EU; and also discuss technology and security with the U.S. As long as a win-win synergy can be established and our cooperation adds value to each of us, I think the changes in foreign policies could possibly result in good things. In the history of international relations, hegemony relationships have done no good for us or any country. I strongly believe that no single great power should be able to monopolize or control us.

The U.S. and China are the traditional major markets for Thai exports. What do you think Thailand’s position should be regarding the U.S.-China tariff concerns?

Although not directly, this is affecting us.

Both the U.S. and China are major markets for Thailand. We just hope that everything will work out well for both of these countries as the negotiations between them continues. Many times in the past, trade wars have extended and turned into broader wars. Hopefully, the lessons learned from these should prevent this from happening in this case. For some reason, Thai people are accustomed to being flexible. Our approach in dealing with export uncertainties include diversifying to other markets, employing sustainable development policies, and practicing self-sufficient economy policies.

What role will Thailand assume in Southeast Asia in the coming years?

In September of last year, as Director of Special Affairs of the Honorary Consuls Association (Thailand), I was responsible for organizing a gala dinner to celebrate the seventh anniversary of the association. There is a phrase I chose to make the presentation theme and it is from Publilius Syrus. I think this quote perfectly describes the position that Thailand will assume in ASEAN in the coming years. It is “Where there is Unity, there is always Victory.”

Nowadays, there are various challenges for each country to overcome. Many have to revise their economic relations, avoid interfering powers, or undergo a transformation. Thailand

regards all of the countries of Southeast Asia as great and equal partners. Hence, we would not take any side. At the same time, while our national interest is of paramount importance, we will continue to help each other bring the regional unifications into balance.

Will the process of moving the country towards becoming a high-income nation and an inclusive society be an example for success in sustainable growth and development? Will there be bureaucracy reduction to make the transition to high-technology more effective?

I was born and bred in Thailand and am so proud to be Thai. However, I prefer to look at things through the lens of reality. Despite Thailand’s great potential based on its geographical advantages and many talents, there are still many wide gaps to fill in order to reach the point where we can fully say that our country’s development is on the right track and has succeeded in escaping from the income disparity trap and properly provides for its people’s well-being. The areas with room for improvement include political stability, economic sufficiency and the creation of a disciplined society that honors inclusiveness, equality in education and professionalism.

When it comes to the need to reduce bureaucracy to enable an effective high-technology transition, it seems to me to be the other way around. When high-technology is in place and we employ it effectively – which I strongly believe it is on its way – bureaucracy will be reduced or, in some cases, eliminated. Thailand is now in the early transition stage and is making the preparations that are necessary to speed up this process. We are among the nations that record relatively high e-commerce transactions.

Both the public and private sectors have realized the importance and benefit of cutting-edge technology. It is the duty of the future democratic government to push forward and foster all elements needed to fully reach the level of the latest technology.

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Contents

Creating an Immersive Experience - 88

Istanbul Luxury - 89

Montage’s Mission Alan Fuerstman, Founder, Chairman and Chief Executive Officer, Montage International

Creating an Immersive Experience Maria Zec, Regional Vice President, USA East Coast, The Peninsula Hotels; General Manager, The Peninsula Chicago

74

88

Driving Value John Belden, President and Chief Executive Officer, Davidson Hotels & Resorts

Istanbul Luxury Nicolas Kipper, General Manager, The Ritz-Carlton, Istanbul

76

89

Excellence Wins Horst H. Schulze, Founder and Chief Executive Officer, Horst Schulze Consulting

Growing Dream Jay Stein, Chief Executive Officer, Dream Hotel Group

90

78

Genuine Hospitality John Kiesendahl, President and Chief Executive Officer, Woodloch Pines Resort

80

Truly Unique Paul N. Leone, Chief Executive Officer, The Breakers Palm Beach and Flagler System, Inc.

84

Personalized Service Senih Geray, General Manager, The St. Regis New York

85

Experiencing Turks & Caicos Karen S. Whitt, Vice-President Sales and Marketing of The Hartling Group: The Palms Turks & Caicos, The Shore Club Long Bay and The Sands at Grace Bay.

82

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Lifetime Innovation Becky Hubbard, General Manager, Lotte New York Palace

92

Focused on the Pacific Northwest Greg Mount, President and Chief Executive Officer, RLH Corporation

86

Employees First Edward V. Staros, Vice President and Managing Director, The Ritz-Carlton Resorts of Naples

93

VOLUME 42, NUMBER 1

An Entertainment Destination - 102

Employees First - 93

Constant Reinvention Peter Simoncelli, General Manager, The Ritz-Carlton, Chicago

100

The Luxury of Truly Being Yourself Gul Turkmenoglu, General Manager, The Benjamin

101

A Great Location François Delahaye, Chief Operating Officer, Dorchester Collection and General Manager, Hôtel Plaza Athénée, Paris

94

Fresh and Relevant Deborah Yager Fleming, Chief Executive Officer & Partner, Acqualina Resort & Spa on the Beach

96

Service Culture David I. Cohen, General Manager, Hôtel Plaza Athénée New York

97

Experiencing History Markus Platzer, General Manager, Willard InterContinental Washington D.C.

98

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An Entertainment Destination Mario Kontomerkos, Chief Executive Officer, Mohegan Gaming and Entertainment

102

Understated Elegance Alex S. Furrer, General Manager, The Setai, Miami Beach

A Sense of Place Sase Gjorsovski, General Manager, The Ritz-Carlton Bal Harbour, Miami

The Personal Touch Philip L. Truelove, General Manager, The Greenwich Hotel

104

Team, Guests, Owners Ashish Verma, Vice President Luxury Division for Dream Hotel Group overseeing The Chatwal New York

105

Recreating The Colony Thomas List, General Manager, The Colony Palm Beach

109 110

Achieving More Through Corporate Trade Elizabeth A. Topazio, President and Chief Legal Officer, Active Travel

112

Specializing in Luxury Travel Ninan Chacko, Chief Executive Officer, Travel Leaders Group

114

106

Cultural Travel Nancy G. Novogrod, Founder, Culturati Travel Design

A Long-Term Focus David Chase, Managing Director, Omni Berkshire Place

Sandstone’s Strategy Dan Davidson and Holly Breuche, Sandstone Consulting

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116

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Montage’s Mission An Interview with Alan Fuerstman, Founder, Chairman and Chief Executive Officer, Montage International EDITORS’ NOTE Alan J. Fuerstman is Founder, Chairman and Chief Executive Officer of Montage International. Prior to launching Montage Hotels & Resorts 16 years ago, Fuerstman was the opening Vice President of Hotel Operations at Bellagio in Las Vegas. Previously, he served as President and Managing Director of The Phoenician. He began his distinguished career with Marriott International. Fuerstman graduated with a B.A. degree from Gettysburg Alan Fuerstman College.

COMPANY BRIEF Montage Inter national (montage.com) is a hotel and resort management company designed to serve the luxury traveler and homeowner. The company encompasses an artistic collection of distinctive hotels, resorts, and residences in stunning settings that offer comfortable elegance, a unique sense and spirit of place, impeccable hospitality, and memorable culinary, spa, and lifestyle experiences. The Montage Hotels & Resorts portfolio of hotels, resorts, and residences includes Montage Laguna Beach, Montage Beverly Hills, Montage Deer Valley, Montage Kapalua Bay, Montage Palmetto Bluff and the recently opened Montage Los Cabos. In 2014, the company launched Pendry Hotels, a collection of new luxury hotels in taste-making destinations, including Pendry San Diego and Sagamore Pendry Baltimore. Pendry Hotels brings together the best in vibrant design and anticipatory service. In addition, the company also operates some of the country’s premiere golf courses and clubs, including Spanish Peaks Mountain Club in Big Sky, Montana, and The May River Golf Club in Bluffton, South Carolina.

Has the mission for Montage Hotels & Resorts remained consistent since its inception?

The mission for Montage Hotels & Resorts has remained consistent. When we started Montage, I had the belief that ultra-luxury or old-world luxury was too pretentious and scripted and that the next generation of luxury traveler was looking for a much more humble and gracious approach. We felt that travelers wanted a property to be more reflective of the locale. We set out to fulfill that vision, both through the style of service and the unique sense and spirit of place of our hotels.

When we launched in Laguna Beach, our style of service was exceptionally well received by the younger generation of affluent travelers, but additionally, we were pleasantly surprised at how 74 LEADERS

Montage Beverly Hills (left): Montage Deer Vally (above); Montage Los Cabos (below) Caption

well our service culture resonated with the older generation of travelers.

While each of your properties clearly has an individual focus and position within its community, are there certain consistent characteristics a guest will find in every Montage?

Guests will find there is a very local aesthetic from a design and architectural perspective. At all Montage’s, there is a great emphasis on culinary and spa experiences, dynamic programming, and the style of service will be our gracious and humble approach to ultra-luxury.

What is the key to being successful in the culinary part of the business?

Food and beverage has always been a cornerstone of Montage. Rather than place the same concept in every hotel or resort, we view each food and beverage venue as a new opportunity to highlight something special. We look at each outlet with fresh eyes in order to create concepts that are appealing to both our hotel guests and visitors.

charge in order to provide the level of service that we do. All too often, hotel companies will put luxury properties in markets that can’t support the rates necessary to provide a top level of service and there is an inherent disconnect when doing that.

We have stayed laser-focused on putting Montage hotels in locations that can support the luxury rates we need to deliver on our promise to our guests.

What was the vision behind the development of the Pendry brand?

We view Pendry as new luxury; the intersection of design and service. The early generation of lifestyle hotels generally had a great vibe but lacked luxury service levels. We have taken the energy and excitement of lifestyle hotels and coupled it with the style of service that Montage is so known for.

Will growth for both the Montage and Pendry brands be primarily in North America?

Montage will see more international growth in the coming years. It’s a brand that is well suited for gateway cities, as well as select resort destinations.

Have spas always been an important part of the Montage experience?

Spas have been part of the DNA of Montage since the beginning. Montage Laguna Beach was the very first five-star rated spa in the world. Our spas, like our hotels, have a tremendous sense of place and the treatments are reflective of and take advantage of the incredible locations where we operate.

How do you decide on location when looking to expand the Montage brand?

We are very particular about the markets we select. First and foremost, it must be a market that our customers would want to go to. Fortunately, there are many such exciting places.

From a business perspective, it’s important that the markets will support the rates we must

We opened our first international hotel, Montage Los Cabos, last year to rave reviews. This signals the beginning of our international expansion.

We will also see growth internationally for Pendry, but there are still many domestic destinations for that brand as well.

Does providing the Montage level of service lend itself to a certain size property and is that service standard harder at a larger property?

The size of our hotels is market driven. In some markets, we can have larger hotels, but as a general notion, ultra-luxury is better served by smaller properties.

The personalization, customization and relationships that guests have with our staff is essential, and we factor that into all of our developments.

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VOLUME 42, NUMBER 1

A LEGACY OF LUXURY ON MADISON AVENUE

U N PA R A L L E L E D S E R V I C E & A C C O M M O D AT I O N S

4 5 5 M A D I S O N AV E , N E W Y O R K , N Y 1 0 0 2 2 1.800.804.7035 W W W. L O T T E N Y PA C E . C O M

W W W. L O T T E N Y PA C E . C O M / T O W E R S

W W W. L O T T E H O T E L . C O M

Driving Value An Interview with John Belden, President and Chief Executive Officer, Davidson Hotels & Resorts EDITORS’ NOTE John Belden started his career as a hotel consultant for Laventhol & Horwath, with successive stints at The Residence Inn Company and Holiday Corporation, where he was a member of the founding concept team for Homewood Suites. He joined Davidson Hotels & Resorts in 1989 and led the business development team during a period of unprecedented growth for the company, overseeing new management, John Belden acquisition and development opportunities for the company, as well as asset management and asset disposition responsibilities.

He then became President and CEO in 2006. In early 2016, Belden helped launch Pivot Hotels & Resorts, Davidson’s lifestyle and luxury operating division. Belden also serves as President on Marriott’s MINA Board, the Sheraton Owner’s Advisory Council, the Hilton Owner’s Advisory Council, the Hyatt Full-Service Hotel Franchise Advisory Committee and the Board of Directors for Give Kids the World. He obtained a degree fr om the Business College at Michigan State University with an emphasis in hotel, restaurant and institutional management.

Belden was named Michigan State University’s Industry Leader of the Year in 2010 and was inducted into its Alumni Hall of Fame in 2016. In 2018, the Illinois Hotel & Lodging Association presented him with the J. Patrick Leahy Lifetime Achievement Award.

COMPANY BRIEF For over 40 years, Davidson Hotels & Resorts (davidsonhotels.com) has focused its efforts solely on the hospitality industry and built a substantial portfolio in the upper-upscale and near-luxury segments. As one of the largest privately-held management companies in the lodging industry, its success is built on a unique entrepreneurial management style and owner’s mentality that enable it to provide each of its properties with the individualized personal service of a small company, enhanced by the breadth and depth of skill and experience of a larger company.

76 LEADERS

Lobby of Hotel Zachary in Chicago (above); Hotel Viking, Newport, Rhode Island (below)

Will you discuss the history and heritage of Davidson Hotels & Resorts and how the business has evolved?

At nearly 45 years old, Davidson is one of the largest and longest tenured management companies in the industry. We started with humble beginnings as a small, regional operator of Holiday Inns in the Southeastern U.S. Now, Davidson has grown to become one of the most respected and sophisticated operators, overseeing one of the highest quality portfolios in the hospitality industry.

Throughout most of our history, Davidson has been led by a small cadre of entrepreneurial owners, but due to its enviable success, reputation and the growing size, stature and sophistication of the platform, today Davidson is owned

by KSL Capital Partners, which is the single largest private equity firm focused solely on the hospitality, travel and leisure space.

Is brand awareness important for Davidson Hotels & Resorts or is the focus more about the branding of the individual properties?

Both are important, but the performance of our properties will largely determine the power and respect behind Davidson’s brand. Not surprisingly, the performance of the properties themselves hinge upon their brand awareness

in their respective communities, whether they are identified by the consumer via a hard brand, or whether that identity comes in the form of the unique personality of an independent hotel.

Certainly, the stature, name equity and power of either is really important to their success in the B-to-C community.

The value of the Davidson name is important from a B-to-B perspective, shaped largely by our unparalleled experiences in driving asset value across hundreds of hotels that we’ve operated throughout the history of the firm.

We recently launched a new lifestyle and luxury operating division called Pivot Hotels & Resorts, so branding is even more critical for them, since they’re newly formed and we’re creating that awareness from scratch. The ability to position them in the mindset of the business community has been important to us and, fortunately, Pivot has been the fastest and most successful lifestyle launch of an operating platform in the industry.

What is the distinction between Davidson and Pivot?

The distinction is that Davidson operates all of our hard-branded assets, meaning properties that have a national affiliation with well-defined and prescriptive customer experiences, a global distribution system, a frequent traveler program and robust sales and marketing platforms. Our hard-branded properties largely involve fullservice and high-density selectservice premium hotels that are within the Marriott, Hilton and Hyatt ecosystems.

The Pivot division oversees all of our lifestyle and luxury properties which are independent and/or are a part of soft brands or collections. These are properties that require the development of their own identity, design, storytelling, activations, partnerships and integrated marketing. Soft brands are hybrid assets that embrace the heart, soul and unique personality of an independent, but have access to all of the powerful tools of a hard-branded platform.

Is there still a role for independent hotels with all of the consolidation that has taken place in the industry?

VOLUME 42, NUMBER 1

Absolutely. In fact, it’s even more exciting for independent hotels in today’s environment because today’s travelers are looking for something that is unique and different. They’re looking for something that is heavily experiential, both in design and F&B, in addition to using the hotel as a conduit to explore the local community. Independent hotels are free of constraints in regard to the experiences they create and the manner in which they connect with their guests, thus allowing them to take greater risks as they compete against brands.

As you look at growth going forward, do you focus on locations and markets where you feel you need a presence or is it about where the opportunities arise?

It’s a bit of both. We have targeted MSAs that are a definitive part of our strategy, but we also have property owners who have brought us into assets in unique locations. The common thread is that so long as we believe we can create material value in an asset, we will take on that opportunity.

With the short-term pressures for results, how hard is it to make the long-term investments that Davidson needs for future growth?

We believe that driving holistic value in the asset from the outset is the best strategy.

It’s one thing to be able to create short-term value by simply cutting cost, but there can be material consequences to those actions. Accordingly, it is our goal to maximize value through proper positioning, revenue optimization, strong cost containment measures, aggressive flow thru targets, maintaining an asset’s physical health and most importantly leveraging strong culture. We believe that holistic health in an asset provides the owner not only with the strongest asset value, but also the greatest options in their hold/disposition strategies.

Davidson’s culture includes being a part of the communities where it operates and being a purpose-driven company, as shown by its partnership with Give Kids the World. Will you discuss why this is so important for the company and the responsibility that you feel leading companies have to address broader societal need?

Love is an omnipresent force in our culture and, as a result, we feel compelled to touch our respective communities in ways that make a difference. In addition to our deep relationship with Give Kids the World, we have fostered countless volunteer and charitable endeavors in Atlanta and throughout the cities in which we have properties, as we have a sense of responsibility to give back in the communities which, in turn, have given so much to us.

We have been involved with Give Kids the World for nearly 30 years, passionately helping them achieve their mission to provide hope for children with life-threatening illnesses VOLUME 42, NUMBER 1

by providing them with a cost-free, week-long vacation at their 84-acre Give Kids the World village in Orlando, Florida. While there, the kids and their families have access to Disney World, Universal Studios, Sea World and Legoland. In addition, The Village itself is a whimsical, magical place that encompasses 168 villas with numerous F&B and entertainment venues where kids can experience love, joy and hope, while recapturing the carefree part of their childhood that has been taken away because of their illnesses.

When it comes to hiring talent, how important is cultural fit given Davidson’s strong culture?

Cultural fit is everything, as we can teach aptitude, but we want to hire for attitude and a deep-seeded spirit to serve. We’re very fortunate to have strong core values that support a very engaging culture which, in turn, have attracted some of the best talent in the industry. Nonetheless, we’re in a period of declining unemployment, wages are beginning to rise and it’s more competitive to access talent in the

Margaritaville Hollywood Beach Resort, Hollywood, Florida

droves that we need as a growing company.

We trust that people want to work for a deeplyprincipled and fiercely competitive company that favors high-energy team members who serve with love. Due in large part to our culture, we have been selected as one of Atlanta’s top workplaces, as well as garnering best places to work designations in cities throughout our portfolio. It is one of the things that attracts people to us.

We look to hire people from hospitality schools around the country, but we also find wonderful talent from our communities.

One of our core values is to be in touch with one’s inner weird, which is a fun way of saying, we want you to be yourself. True hospitality comes from the heart and our guests are most often touched when those feelings are seen as authentic and genuine, not scripted.

Is it important for you to be at the hotels interacting with guests and to feel the pulse of what is happening at the properties?

It is important for all of us to witness these critical interactions, as we want to gauge where and how we can be even better. One of my most important responsibilities is to create an environment in which everyone feels like they have the authority and power to engage our customers in a way that creates the experiences we want them to have. This, in turn, creates indelible memories associated with the properties, which spurs further organic marketing as they tell their friends and spurs them to become repeat customers.

Part of that is making sure that we all feel like ambassadors for our culture. I can’t be everywhere all at once, so it’s important that everyone in our company, particularly on the leadership side, has the ability to share that message as they visit properties throughout our portfolio.

How critical is it for the diversity of your workforce to mirror the diversity of your clientele?

It’s critical that we have a diverse workforce to engage with a diverse clientele. The experiences we can deliver are more enriched with a diversity of thought and creativity, all fueled by the originality of our upbringings. We live in one of the greatest melting pots in the world and that should be celebrated not only in our workforces, but also in our communities.

Are you someone who can take the time to appreciate the success that the company has achieved under your leadership or are you always looking ahead?

Ours is an industry where we are essentially here to serve and make people happy, and every day is wonderfully different. Each year we have literally millions of transactions with people serving people and to know that we are able to pull that off successfully, which in turn, creates success and performance for our property owners, is incredibly satisfying to us.

We get instant gratification from strong financial metrics, wonderful letters from guests, and heartfelt feedback from team members who say that this is the best place they can possibly work – all of these things provide great delight and satisfaction along the way.

Of course, when we think about where we started and where we are today, there is also great fulfillment because countless careers have been created and advanced, while many families have been supported through the endeavors of the company. Equally as important, we have created a lot of value for our property owners and our investors, which fuels our future growth.

All of this leads to a daily sense of satisfaction, but we have so much more to accomplish, and the boundless energy of our team simply won’t allow us to sit still. It’s hard to keep pace with the speed of our dreams, but rest assured, we will keep trying.

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Excellence Wins An Interview with Horst H. Schulze, Founder and Chief Executive Officer, Horst Schulze Consulting EDITOR’S NOTE Horst Schulze is Chair man Emeritus of Capella Hotel Gr oup, and CEO of WP Hospitality Group. In 1991, Schulze was r ecognized as “corporate hotelier of the world” by HOTELS magazine and in 1999, Johnson & Wa l e s U n i v e r s i t y p r e s e n t e d him with an honorary Doctor of Business Administration degree in Hospitality Management. Schulze served as vice chairman of The RitzCarlton Hotel Company from 2001- Horst H. Schulze 2002, after serving as President and COO of The Ritz-Carlton Group, starting in 1988. Under his leadership, the Group was awar ded the Malcolm Baldrige National Quality Award in both 1992 and 1999 – the first and only hotel company to win even one such award. In addition, Ritz-Carlton was continuously voted “best hotel company in the world” by meeting and other trade publications.

Upon joining Ritz-Carlton as a charter member and VP of Operations in 1983, Schulze created its operating and service standards that have become world famous. At the time that he left Ritz-Carlton to form Capella Hotel Group, Schulze was responsible for the $2 billion RitzCarlton operations worldwide. Prior to his long tenure with Ritz-Carlton, Schulze spent nine years with Hyatt Hotels Corporation, where he was a hotel general manager, regional VP and corporate VP. Today, Mr. Schulze serves on various boards, speaks for The Washington Speakers Bureau, and acts as a consultant across industries.

What is the state of the hospitality industry today?

This is an extremely good time. We have to understand, over the past 20 years, a totally new market developed for the hotel business. The Chinese didn’t travel at all until 20 years ago and they provide over one billion room nights today. Other societies are traveling more than ever, so if one isn’t making it in the hotel business now, they will never make it.

This is the strongest time I can imagine in all my years in the hotel business.

As someone who is known as a pioneer in the luxury space, has the word luxury lost some of its meaning today and how do you define a true luxury hotel experience?

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It started changing about 20 years ago to where there were two areas of luxury – the affordable luxury hotel that serves the purpose of shelter during meetings or during travel; or the ultra-luxury hotel that provides an experience, which is true luxury.

At Capella, for instance, there is no check-in or check-out time because the customer doesn’t want that – they want to arrive and depart when they want. That is one element the ultra-luxury business offers today.

If I hang a chandelier, it’s a luxury for the guest, but it’s not ultra-luxury today. Ultraluxury is providing an individualized response to the wishes of the customer.

With the consolidation that has taken place in the industry, can brands maintain their brand identity and levels of service?

They have already proven that they cannot. It isn’t even a question anymore; the answer is that it is unattainable.

The luxury hotels feel it necessary to give points now to encourage their customers to come back rather than giving them a product that the customer desires and wants to come back for.

You created Capella to provide a product that guests want to come back for. Has Capella filled that role?

I’m not running Capella anymore, but I believe Capella will manage to remain that type of company. If they continue on the path that they are on now, within five years, the name for luxury will be Capella.

It’s a narrow path and if they stray from that path, they will not be there, but if they stay on that path, which they clearly decided that they will, they will be the name for luxury within five years.

Do you find leadership can be taught or are leadership skills something that a person is born with?

It can be taught to people who have the inner values to be leaders. They may have the inner values but not know how to apply them.

If someone doesn’t have inner values to care for and respect people, they will never be a leader.

I believe nearly everyone has respect for people so we can teach them. We can teach them how to relate to people and employees, how to be leaders, how to align people to an organization, etc.

The lack of leadership today doesn’t come from the leader not having those values; it comes from the fact that they’re being pressured to just think about money and they’re being judged only by the money they make.

The whole concentration is on money reported to Wall Street, while I think the entire concentration should be on the things that make money.

What interested you to write the book, Excellence Wins, and made you feel the timing was right for the book?

I always want to give back to the industry and particularly to the young people that come into the industry.

However, this book is much broader than the hotel industry. It’s a leadership book with emphasis on customer service to a great extent.

I felt that it was my way to give something back. A number of years ago, a close friend told me that at this point in my career I had an obligation to share how I had accomplished success in my industry with young people. He called me a few times and admonished me for not doing it, and always said he wanted to write the forward for the book. Unfortunately, I waited until he passed away, but that gave a jolt to my conscience.

I guarantee anyone who reads it will realize they are sucked into the issues of the day rather than leading the people in their organization. We don’t lead an organization – we lead people. We move it forward with people.

With the book, I want to encourage people to realize that the human beings are what is creating value for the organization.

Human beings aren’t things and no matter how many machines we have, there are still human beings running them. Also, we are serving human beings, not companies.

I want to tell young people to develop that type of thinking, to develop the willingness to care for and serve people, and to become a leader.

If I find that I have accomplished that with just one person, I will be deeply fulfilled.

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VOLUME 42, NUMBER 1

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Genuine Hospitality An Interview with John Kiesendahl, President and Chief Executive Officer, Woodloch Pines Resort EDITORS’ NOTE John Kiesendahl I was 11 when we moved up is the eldest son of Woodloch Pines here from Long Island. We started the Resort founders Harry and Mary resort and treated every guest just like Kiesendahl. He attended Cornell they were coming into our home.

School of Hotel Administration We offered personalized hospitality and served as a naval officer that originally cost guests only $6 per before deciding to make Woodloch day to stay and that included three his career. He is best known for meals per day. greeting guests personally during We started very humbly with a meals and wearing “funny” pants very small season between Memorial (he has custom-tailored pants feaDay and Labor Day. We gradually grew. tur ing many different children’s In 1961, my dad attempted to buy a characters). Kiesendahl serves John Kiesendahl building next to ours that was a camp. on the Board of Directors for the We borrowed the money to buy it.

Dime Bank, is a 35-year member of the School He was forward-thinking and he knew that Board and is also Vice President of the Pocono if we were going to stay here, we needed more Mountain Visitors Bureau. property, so he sold bonds to our guests to raise funds. If they bought a $500 bond, they got a 4 PROPERTY BRIEF For over 60 years, the percent discount on their stay and a 6 percent Kiesendahl family has owned and operated interest rate. We ended up selling $60,000 worth Woodloch Pines Resort (woodloch.com) of bonds, and that summer, we were able to buy in Hawley, Pennsylvania and has worked the camp. very hard to grow Woodloch into what it is We went from a little boarding house to a today. The family of properties operated by small resort, and that really changed things for Woodloch includes a year-r ound family us because we could then renovate the space resort – Woodloch Pines, an award-winning at the camp. We more than doubled our size in championship golf course – Woodloch Springs, acreage and lake frontage. and a luxury destination spa – The Lodge at We offered horse rides and a lot of other Woodloch. The Kiesendahl Family’s com- activities which allowed us to extend our seamitment to excellence shows in the hands-on son. The key was always taking care of our staff running of daily operations, as they embody and our family worked side by side with them. what it means to treat guests as if they were I used to go down to the spring and get water company in their own homes. The origi- so people could have something to brush their nal founders, Harry and Mary Kiesendahl, teeth with in the morning. It was really humble. passed along their passion and traditions to This laid the foundation for everything we have their children and grandchildr en to pr o- done since. vide memorable experiences to thousands During the ’60s and ’70s, we grew gradually, of families each and every year for genera- mostly by extending the season until we were tion upon generation. The Kiesendahl fam- eventually open pretty much all year-round. ily has always understood the importance I bought the business from my dad in 1981, o f c o m m u n i t y . E a c h f a m ily me mbe r is when we had 180 staff members and a full active in the local community and serves on house of 150 guests. I was 34 at the time and many chambers and boards. very ambitious. I had gone to Cornell School of Hotel Administration and spent 4 years as a Will you discuss the history and heritage of naval officer. When I left the service, my dad Woodloch Pines and Woodloch Resort and asked me to come home as he was going to how the property has evolved to where it sell Woodloch. is today?

I worked hard and got a good handle on My Mom and Dad bought a little board- the property. After purchasing the business, ing house in 1958 – they paid $40,000 for the we went through a strong growth spurt. From house that included 12 acres with 200 feet of 1981-1986, we added 75 suites, a 700-seat lake frontage. It had room for 35 guests but nightclub, an Inn as well as two additional dinno running drinking water and only one year- ing rooms. We also purchased an additional round employee.

250 acres of land.

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Woodloch Pines Resort founders Harry and Mary Kiesendahl (left); Woodloch Springs Golf Course (above)

By 1987, we were well-known. We didn’t have a golf course, and our clientele were becoming more affluent. It was obvious to me that with all of the development it made sense to build housing along with it. So we developed Woodloch Springs, which is a 438-acre, 402home community with a beautiful golf course as the centerpiece along with an indoor sports club and complex.

That was a challenging and expensive education. I bought the land in 1988 and decided to put the infrastructure in up front because our marketing study said we would sell it out in a few years. However, we then had the real estate recession in 1991 and 1992, so it took us much longer. I used my dad’s formula to sell bonds once again, which helped us get through that difficult time, and Woodloch Springs has become successful.

We continued to grow over time and owned 1,200 acres and a mile of lake frontage.

By the time we got to the late ’90s, our guests were looking for a spa. We had long-time guests who were spa consultants, and they suggested we build a destination spa. A few of my friends invested with us, and we started The Lodge at Woodloch, which is situated on 72 acres with its own 18-acre lake.

We had our spa consultants running the spa, but it became very elitist, and it didn’t fit with our name and reputation. It was a beautiful structure but didn’t have the right personality, so we changed things around. Right now, we’re running 85 percent occupancy annually. It has become a great success.

This is a high-end property – Condé Nast has named us the third best in the country, and we get a lot of nice press. TripAdvisor also selected us as the number one family resort in America.

My dad chose a great location, which is 90 miles from New York and two hours from Philadelphia. It’s also only five hours from Washington and Boston.

We’re not particularly fancy, but really genuine. We get to know our guests, and we know all of our staff. We treat everyone how we want to be treated.

Our family is here all the time. We are an old-fashioned throwback – everything we do is pretty wholesome.

Is the property open year-round?

Yes. We make our own snow for snow tubing here on property, and skiing is available at VOLUME 42, NUMBER 1

Ski Big Bear just 10 minutes down the road. We have a beautiful lake that guests can skate on when it freezes during winter, and we have a canopy-covered, synthetic ice rink that guests can use year-round.

Any time that kids are out of school, we’re busy. In our shoulder seasons, we do more corporate and senior business midweek.

Woodloch has 75 two- to six-bedroom guest homes, which are scattered throughout the property. Each one is set up to be a rental unit that we sell and manage. 55 of these guest homes are located at Woodloch Springs.

We also have 160 guest rooms, and all but 20 overlook the lake. Most are either one- or two-bedroom suites with beautiful views. We have great outdoor pools and water slides, and the lake is used for water skiing and various boating activities.

It’s a very active place, but we’re also surrounded by natural beauty. There is no development other than what we have created. We’re proud to have received several environmental awards for the projects we have developed.

Will you discuss your success in attracting and retaining talent?

It’s important that our clientele see the same faces each time they visit. The key to our success is the staff. We have been blessed with 1,218 wonderful people on our team, many of whom have been with us for a long time. We are the largest employer in Wayne and Pike counties.

In the early 2000s, the State of Pennsylvania chose us as one of the best large companies to work for throughout the entire state. We care for our staff, and they do a great job.

The staff are very genuine. They don’t just deliver food or clean rooms; they really get to know our guests. We even try to assign specific waitstaff to clientele so that they really get to know them during their stay.

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The Lodge at Woodloch (above); Woodloch Pines Resort lakefront (below)

We have 140 people on our Social Staff who handle our activities. We have to make sure the property runs well from a general standpoint, but we also need to have a great social program. Our social activities really set us apart.

Each of my children now has a different area of responsibility. The genuineness of our hospitality is the key characteristic people feel when they come here.

Our staff includes many generations, which makes a big difference as one generation helps the next. Nonetheless, staffing is always a challenge. It’s difficult for us to find the quality of staff we need; it’s becoming more difficult to find those who don’t mind working weekends and nights, which is a requirement in the hospitality business.

In the summer, we bring in college students from Eastern Europe to work with us, and we have found they are good people who work very hard. The visas for this program were recently cut significantly, which hurts the hospitality industry overall.

Do you have plans to grow the property further, and is it more difficult to maintain the family feel as you have grown?

We have decided not to become any larger than we are today. We are paternal with our staff. If my kids didn’t come back into the business, we could never have grown in the way that we have. In the early days, the staff were our friends. We’re committed to maintaining that genuineness because it makes us different from any other resort. Our lobby feels like a living room, and guests are greeted by people who are truly invested in their well-being here.

We want to upgrade the resort to enhance the facility, but the size will remain the same.

There are always things to do to make it better.

You have placed a strong emphasis on entertainment. How important is this offering to the success of the property?

It’s important, and we put a lot of money into our theme shows. We invest over $250,000 a year into producing a theme show. Nobody else does this so it is critical in separating us from the crowd.

The nightclub opened in 1986, and we have expanded it. However, it’s still not really large enough since everyone wants to come to the shows, which ar e very family-oriented.

In regards to dining, we serve everyone at once, which brings people together and gives us the opportunity to do things such as announce birthdays and anniversaries. The families that come here really enjoy this; they don’t always get to sit down and have dinner together anymore.

While you’re constantly looking at what is ahead, when you look back to when you first arrived at the property and how things have evolved, are you able to enjoy the process and appreciate what your family has built?

My wife would say I don’t do that enough.

I don’t see what I do as work. I have a passion for doing what I do. There are difficult times, but I love what I do. I also feel very blessed to have my wife, children and grandchildren working here at Woodloch.

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Experiencing Turks & Caicos An Interview with Karen S. Whitt, Vice-President Sales and Marketing of The Hartling Group: The Palms Turks & Caicos, The Shore Club Long Bay Balcony of the Oceanfront Penthouse at The Palms Turks & Caicos (left); The Shore Club Long Bay Executive Penthouse living area (above) and The Sands at Grace Bay EDITORS’ NOTE Kar en Whitt serves as Vice-President of Sales and Marketing of The Hartling Group in Turks & Caicos. She served as General Manager of the The Palms from February 2011 to December 2015, and she brings more than 20 years of hospitality industry experience to the landmark properties in the Hartling Group collection. She is an active board member of the Turks & Caicos Hotel and Tourism Association and serves as First Vice- Karen S. Whitt President of the Caribbean Hotel and Tourism Association. Whitt serves as a volunteer to numerous civic and professional organizations on the island including the National Cancer Society. In 2010 and 2012, she was named “Hotelier of the Year” in Turks & Caicos.

She was also awarded the prestigious title of “Top General Manager Worldwide” by Luxury Travel Advisor at their March 2014 Awards of Excellence Ultra Summit.

COMPANY BRIEF The Hartling Gr oup (hartlinggroup.com) is a resort management and real estate sales and development firm specializing in luxury Caribbean resorts, condominiums and villas. Projects to-date include The Sands at Grace Bay, a picturesque development set on the shores of Grace Bay; The Palms Turks & Caicos, awarded the world’s best spa resort; and the company’s newest development project, The Shore Club on Long Bay, featuring a village-like, low-density resort development inspired by traditional Barbadian architecture on the pristine Long Bay Beach on Providenciales. Hartling Group resorts are the choice for the most discerning visitors and consistently recognized as leading resorts in the Turks & Caicos Islands. The Palms and The Shore Club are named among the top resorts in the world by the leading travel publications including Condé Nast Traveler and Travel + Leisure.

Will you discuss the state of the travel business in Turks & Caicos and has there been growth in the market?

The success of this market goes back many years when the platform was being set for the hospitality and tourism industry in Turks & Caicos. The pioneers at the time did a very good job mapping out and executing their vision for a low-density luxury destination that appealed to the high-end demographic.

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There is room for growth and we’re seeing interest from luxury brands that fit the vision for the industry in the country. Turks & Caicos was built largely on the condo/resort business model, which lends itself to a higher-level product. We have these amazing resorts that are built and centered around million-dollar-plus condos. This creates an environment of a very highend luxury product.

While Providenciales is limited by its size, there are still some opportunities for growth with projects that have broken ground recently, including a Ritz-Carlton. Ther e ar e a few others that have also expressed interest in developing here.

As we continue to mature as a destination and become better known in the industry, we are now looking at our sister islands, North Caicos, East Caicos and South Caicos, which are emerging because of their similar flora and fauna, and the breathtaking coastline which is every bit as exquisite as what we have in Providenciales.

How are your properties positioned in the market and do you look at them as complementary properties?

The Palms Turks & Caicos has been a landmark property on Grace Bay for 14 years now. It was one of the very first high-end luxury condo resorts in Turks & Caicos. The Shore Club on the North Shore, or Long Bay side of the island, is complementary to our flagship resort, The Palms. The Shore Club is an oasis on its own in a very pristine, untouched four-mile stretch of Long Bay Beach, which is a different orientation than Grace Bay Beach.

Long Bay is very smooth with calm and shallow waters, and it lends itself to a more active water sports venue. Kiteboarding is very popular, paddle boarding is very easy, and kayaking is a great option because the waters are shallow at the start.

The Shore Club was designed and built to appeal to an affluent demographic with more of an active lifestyle. It’s a very trendy but chic property, and being new, it features a lot of the modern technology and the latest advances that some of the other resorts may not feature.

We see the two properties as being super complementary to each other, and we have even promoted a beach-to-beach package where people can actually stay two nights at The Palms and two nights at The Shore Club. If one is adventurous and wants to experience both properties, they can. We also have a shuttle that runs between our three hotels all day, including The Sands.

One major element that distinguishes The Shore Club from The Palms and from many other resorts in Turks & Caicos is our villa product. Our private villas are very exclusive – 8,800-square-foot beachfront estates with six bedrooms and all of the amenities one would expect in a luxury villa product, but with the advantage of being situated inside a luxury resort. If guests want to escape from their villa and enjoy a restaurant or another pool or a different orientation, they are close by, so it’s convenient to have the best of both worlds.

Will you discuss the role The Hartling Group plays for both of these properties?

Stan Hartling, CEO and founder of The Hartling Group, came to the island 25 years ago and developed his first resort, The Sands at Grace Bay, a four-star property which just celebrated 20-years on Grace Bay Beach. The Sands remains a favorite resort for many, with the highest returning guest ratio on the island.

Stan was at the forefront of the development of Turks & Caicos Islands and shared with the government his vision to create these amazing luxury properties.

Not only has he invested and reinvested for a third time on the island, but he has also been dedicated to enhancing the community through civic and charitable organizations and contributions. This helps not only the growth of his individual businesses, but also ensures that we’re doing our part within the community for the welfare of the people.

The Hartling Group expanded its platform with The Palms and The Shore Club, both members of Virtuoso and represent the most elite and elegant of luxury properties.

Although the condos are individually owned, The Hartling Group manages these assets for the condo owners while it also operates everything on the resort segment including hotel and grounds operations, food and beverage, spa and retail.

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VOLUME 42, NUMBER 1

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Truly Unique An Interview with Paul N. Leone, Chief Executive Officer, The Breakers Palm Beach and Flagler System, Inc. EDITORS’ NOTE Born and raised in New York, Paul Leone was exposed to the hospitality industry at an early age, having been raised in a family that owned and operated five local motels and two restaurants. He went on to study accounting and became a Certified Public Accountant. After graduating from the University of Kentucky, Leone joined Coopers & Lybrand in Louisville, Kentucky. He later relocated to Coopers & Lybrand in West Palm Beach where he worked Paul N. Leone with various hospitality accounts, including The Breakers. He joined The Breakers in 1985 as Controller and was later promoted to Vice President and Chief Financial Officer. In 1992, he was promoted to President of Flagler System Management and two years later became President of The Breakers Palm Beach and Flagler System, Inc. In January 2016, Leone was appointed CEO of Flagler System, Inc. and The Breakers Palm Beach, Inc. respectively.

PROPERTY BRIEF Set amid 140 acres of oceanfront property on the island of Palm Beach, Florida, The Breakers (thebreakers.com) is a privately-held AAA Five Diamond award-winning resort destination. Founded in 1896 by magnate Henry M. Flagler, it was rebuilt in 1926, after two fires destroyed the original building. The multifaceted, Italian Renaissance-style property features an outstanding selection of nine restaurants, two 18-hole championship golf courses, a 6,000 square-foot indoor/outdoor oceanfront fitness center, a 20,000-square-foot indoor/outdoor spa, a Mediterranean-style beach club overlooking one-half mile of private beach, four swimming pools, five whirlpool spas, luxury poolside bungalows, a variety of water sports, 10 lighted tennis courts, an extensive program of family and children’s activities, as well as 11 on-site boutiques with distinctive merchandise.

The travel industry has achieved strong growth over the past year. Have you been happy with the growth for The Breakers and what is your outlook for the property in 2019?

Growth for The Breakers is a relative benchmark because the hotel has been running near capacity for many years. We have stabilized occupancy around 80 percent and our market-leading REVPAR index is almost 200 percent, but it is our ability to drive rate that is fueling our growth. We are achieving rate because we continue to improve 84 LEADERS

our product and service and distinguish The Breakers as truly unique. We anticipate another strong year in 2019.

Will you highlight some of the projects taking place at the property that guests can expect in the coming years?

The Breakers endures as a spectacular, continuously-elevated resort, with the support of our family ownership (heirs of founder Henry Flagler, c. 1896). Their investment of over $30 million each year in property enhancements represents a peerless, long-term commitment for a single, independent hotel and is about three times the norm for luxury resorts.

This ensures that our abundant amenities and guest experiences remain exceptional and ever evolving.

We have recently completed a full-scale renovation of our historic Ocean Course, Florida’s oldest golf course, by famed golf course architect Rees Jones, our Spa received a stunning makeover and we renovated our News and Gourmet shop and Flagler Club, our ultra-luxe boutique hotel situated atop The Breakers, which has now become the crown jewel of VIP lodging in Palm Beach.

In such a competitive market, how challenging is it to differentiate and how do you define The Breakers’ advantage?

With the hotel’s unique architectural design, priceless 140-acre Palm Beach oceanfront location, which is just 15 minutes from an international airport, unparalleled array of amenities and our genuinely friendly, engaging staff, we are easily differentiated from the more cookie-cutter, chainaffiliated properties, and from trendy, boutique hotels that lack the variety of offerings and services that we provide. But we have also really differentiated The Breakers by evolving as an organization, not just as a property, recognizing and reinforcing that our team members are the heart and soul of our company.

Will you highlight The Breakers’ food and beverage offerings and what are the keys to driving profit for this part of the business?

The Breakers is among the world’s best destinations for great food, cocktails and award-wining wine programs, with nine distinctive restaurants that reflect a variety of concepts fulfilling every guest’s need. Our restaurants are continuously elevated thanks to our talented chefs, expert food and beverage team (including two Master Sommeliers) and Adam D. Tihany, our partner in interior design.

Our restaurant profiles include the glamorous HMF,

The Breakers main drive (above); Rees Jones® Course (left)

a Wine Spectator Grand Award winner since the award’s inception in 1981, which offers an extensive menu of sharing plates inspired by global cuisines and a lively cocktail culture; the re-imagined Seafood Bar, reminiscent of a private luxury yacht; Flagler Steakhouse, a fresh take on the classic American chophouse; Echo, which features the distinct cuisines of Asia; The Italian Restaurant, which draws all generations to enjoy authentic cuisine; and our Sunday Brunch at The Circle, renowned for its variety of impeccably prepared items, is arguably the most successful of its kind in the business.

Having made our restaurants feel like independent establishments as opposed to “hotel” restaurants, we drive profitability by keeping hotel guests on property and creating significant demand from locals.

How much of a focus are the spa/wellness offerings at The Breakers and will you provide an overview of these facilities at the property?

A destination for personal renewal, our 20,000-square-foot indoor/outdoor spa is a focal point within our operations, as we recognize many of our guests travel to escape their stressful, fastpaced routines. The facility’s relaxed modern style complements The Breakers’ seaside sophistication and Italian influence. Our expert team of therapists customize treatments based on our client’s needs, nurturing guests with heightened comfort and care.

The curated menu of spa services focuses on quality, with treatments that are built around three core product lines, which represent the finest in natural skin and body care: Tammy Fender, OSEA and Guerlain. The Spa is one of the most important and appreciated amenities on property, coupled with the 6,000-square-foot Ocean Fitness Center that shares its prized oceanfront location.

What advice do you provide to young people interested in a career in the hospitality industry?

I want the young enthusiasts of our industry to recognize the many possibilities and paths that exist within this business, as well as the opportunity to work among a dynamic group of mentors and peers, in a continuously evolving environment.

In the course of our recruiting efforts, we encourage the younger generation to seize the most from their role by taking advantage of experiences, such as supporting sustainability initiatives or volunteering within the community. At The Breakers, we provide forums for millennials to do all of this in a meaningful way so that they feel professionally and personally inspired and, hopefully, recognize their responsibility as future leaders.

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Personalized Service An Interview with Senih Geray, General Manager, The St. Regis New York EDITORS’ NOTE In December 2016, Senih Geray returned to The St. Regis New York as General Manager. He joined The St. Regis New York from The St. Regis Atlanta where he served as General Manager since 2012. He began his career in the hospitality industry in 1989 as a Guest Service Agent at the Sheraton Grande Torrey Pines in La Jolla, California. After much success, he relocated to New York where he first joined The St. Regis New York team Senih Geray as Financial Controller, a position he held for eight years. Geray has also served as General Manager at the Sheraton Voyager Antalya Hotel, Resort & Spa in Turkey, and The St. Regis Aspen Resort. He attended the United States International University in London where he received his B.S. in business administration.

Geray continued his education at the United States International University in San Diego, California, where he studied hotel and restaurant management.

PROPERTY BRIEF The St. Regis New York (stregisnewyork.com) offers 238 luxurious guest rooms and suites. Contemporary luxury meets classic sophistication at this iconic hotel, just steps from an exceptional Fifth Avenue shopping experience. The guest rooms and suites feature Waterford crystal chandeliers and elegant crown moldings, with beautiful, large-format photographic artwork, vibrant-hued fabrics and stunning beveled mirrors as well as marble-tiled entryways, rich color schemes, custom furnishings and state-of-the-art technologies. It is the flagship property of St. Regis Hotels and Resorts.

What are your views on the state of the hospitality business in New York City?

From what we have seen here and at our sister properties under the Marriott umbrella, 2018 was better than expected.

Some of this has to do with international travel. In 2017, we had some challenges in the international markets, especially in the first half of the year, whereas 2018 started strong and there is every indication this is going to continue through the first half of 2019.

International travelers also feed our toplevel suites, so they are not only helping from an occupancy perspective, but also from a rate perspective.

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Our group business has been exceptionally strong, especially domestically. This has been the case not only in the luxury segment, but also within the big box city hotels.

We have seen compression across the city resulting in higher prices for our group business.

There is also a lot of last minute business for large meeting groups, which was unheard of a few years ago.

In banking and finance, we saw many roadshows as well.

Every sector has performed at a higher level than usual, including transient and leisure.

Will you discuss the value that the Marriott relationship has brought to St. Regis?

St. Regis was once part of Starwood where it was one of 10 brands. With Marriott, it is now one of 30 brands.

The portfolio has tripled and includes many different levels of product but, among the brands under the luxury umbrella, where we competed with Ritz-Carlton in the past, we’re now sister hotels. When it comes to inventory levels, we enjoy this camaraderie because we are now able to sell both products when needed.

From the perspective of deployment of resources, when we go to certain trade shows, we can now sell New York as a luxury market very effectively with the same number of people. Our expertise has doubled in some respects because we now have the talent resources of both groups. Those additional connections have deepened our reach into the industry.

More importantly, within the Marriott brands and portfolio, we have more ability to access resources and the opportunity to buy with the mass scale that Marriott brings us which provides greater cost efficiencies.

Are you happy with where The St. Regis New York product is today?

Yes, I am. Our last renovation was in 2013 so we feel that in another two years, as we finish a seven-year cycle, we will be ready for the next renovation. Just as we did in our last renovation, whatever current design factors our guests are looking for, we will look to update.

More importantly, though, on the last renovation we were very careful in trying to find a happy medium between the old classical style while

The St. Regis New York lobby (above) and lobby clock (left)

also modernizing the product so we can appeal to millennials and our future customer base.

Our suites are now more vibrant and alive, and they better reflect the tastes of our current customer base.

How critical is a broad suite offering when it comes to competing for top clientele in the New York City market?

We have one of the most elaborate suite selections in the city from entry level to designer suites and master suites.

Having 28 percent of our inventory within the ultra-luxury side of the market gives us an advantage, especially when the times are good.

The ADR premium on those suites significantly affects our total revenue.

We continue to evaluate whether the suites remain relevant in terms of what we have now and to update our plans to make sure that we introduce the most important new elements when we touch these again in two years. It’s always top of mind to make sure we can keep them attractive to ensure they’re always in demand.

We have butler services in all rooms in this hotel. Among the competition in this city, the suites at certain hotels have butlers but they are not provided for the full spectrum of the room product as they are here.

We provide the same service levels regardless of the room someone is in. However, when one is in a suite, the elegant settings, spaciousness and options for what can be done with the room takes a more thoughtful process. We can always tailor the suites to the guests’ needs, especially for long-term stays.

Our average length of stay in our suites went up in 2018, which is encouraging. Guests have told us that they like to spend more time here because they feel at home and it becomes easier to increase their satisfaction as we get to know them in-house.

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Focused on the Pacific Northwest An Interview with Greg Mount, President and Chief Executive Officer, RLH Corporation EDITOR’S NOTE Greg Mount joined RLH Corporation as President and Chief Executive Officer in January 2014, with more than 25 years of experience in the industry. Prior to joining RLH, Mount served as President of Richfield Hospitality, Richfield Hospitality China and Sceptre Hospitality, where he executed a number of strategic deals including the acquisition and merger of Whiteboards Labs into Sceptre Hospitality. Previously, he Greg Mount held senior roles at Sage Hospitality, as well as Starwood Hotels & Resorts Worldwide, where he led the full-service division responsible for developing franchises and management contracts for the Westin, Sheraton, Four Points

by Sheraton, Le Meridien, and Luxury Collection brands in the United States, Canada and the Caribbean. Earlier, Mount held senior operating positions at Interstate Hotels Corporation and Marriott International Hotels, working his way up through a number of hotel and regional management positions before moving into development.

COMPANY BRIEF Hailing from the Pacific Northwest, Red Lion Hotels Corporation can trace its beginnings all the way back to 1937 with hotel developers and has since transformed into RLH Corporation (redlion.com).

Its family of brands includes Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, Lexington, Settle Inn, Signature Inn, GuestHouse, America’s Best Inns & Suites, Americas Best Value Inn, Canadas Best Value Inn, and Country Hearth Inn & Suites. RLH caters to travelers from all walks of life with a warm staff, spacious rooms and affordable rates while seeking to introduce local experiences to ever-savvy guests.

Will you discuss the history and heritage of RLH and what excited you to join the company?

When a few of the other executives and I came onboard, we were excited about the heritage of the company. It is a 40-plus yearold organization that has a great heritage. It grew from a place on the Pacific Northwest where people held their family vacations, weddings and proms. It had a great historic glow to it.

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The ethos of the company was also rooted in the Pacific Northwest, which we saw as a distinct advantage when we came onboard.

When we started looking to reposition the company and the brand, and to look forward at what we should leverage upon, the Pacific Northwest was the focus and it continues to be in our brands, in our organization and in our culture.

We have utilized this as our cultural base, and it’s the North Star for us as we go forward with everything we do.

Is there close coordination between the brands or do they operate independently?

The brands do benefit from each other in terms of the innovations that are derived from one brand or another. At the same time, the brands are very different and distinct. They each have their own team, their own focus on consumer segments, and they each stay fairly siloed as it relates to the digital e-commerce and marketing that goes on around them because they have different consumers.

We are able to work them vertically. We have a number of owners that own multiple brands in multiple segments, and that is always an advantage for us as well.

Hotel RL was developed to be an upscale conversion brand. That brand, not unlike my time at Starwood, is somewhat similar to W Hotels, and is really where all the innovation occurs within our organization.

When we are building our mobile app or figuring out how to go without a desk at check-in, or any of the other innovations we have put forth from a technology or service standpoint, it always starts at Hotel RL and evolves into the other brands.

While the individual brands are at the forefront in terms of branding, is it also important to promote the RLH name?

This is a question that is becoming pertinent in the current environment as it relates to how consumers are booking rooms.

The ways of the travel consumer are changing, but I would argue that brands are becoming less important, although they will always matter since they designate the price value for the consumer.

Hotel RL in Washington, D.C. exterior (above) and guestroom (left)

That said, the bigger brands are commoditizing the locations they’re in and are asking the consumer to make a decision based less on the brand and more on the location and price.

We also see that the millennial generation, which is now upwards of 37 years old, just eclipsed the Baby Boomers in their overall spend on travel and hotels, and are very different consumers. They are looking for location and experience and online reputation and expect to be able to communicate with the hotel when and how they want to.

It’s a different positioning than we have seen before. The way that digital e-commerce has evolved and is evolving means the disruptors are going to get disrupted and will continue to be.

Google controls 90 percent of search worldwide, which basically means that if we’re not in the first five hotels listed on a mobile device, we’re not going to be seen.

The landscape is changing rapidly.

Is it challenging to balance shortterm pressures with the need to make long-term investments?

When we came onboard, we had a balance sheet that needed to be cleaned up.

We had a number of assets that had to be sold and we had a number that needed to be renovated and sold. We’re now in a position where we’re selling those assets and are almost becoming asset light.

I look back on this process and it was a short-term strategy with more of a longterm goal, which is really to become a franchising organization that has much stronger EBITDA and less capital requirements. This is rewarded in the public markets more than real estate-based hotel organizations.

We continually need to and are making investments in innovation and technology to stay relevant and pertinent today and for the future.

The landscape is going to change pretty dramatically and, if we don’t reinvent or innovate around what that is going to look like and make those investments in the short term and long term, it will have a negative impact on us.

We take this very seriously and we have made, and will continue to make, significant investments in the short term and long term.

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VOLUME 42, NUMBER 1

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Creating an Immersive Experience An Interview with Maria Zec, Regional Vice President, USA East Coast, The Peninsula Hotels; General Manager, The Peninsula Chicago EDITORS’ NOTE Since March 2002, Maria Zec has served as General Manager of The Peninsula Chicago and assumed her current post with The Peninsula Hotels in May 2007. Prior to this, she served as Managing Director and Hotel Manager at the New York Palace Hotel. Zec holds a B.S. in business management and a B.A. in French from Purdue University.

PROPERTY BRIEF The Peninsula Chicago (chicago.peninsula.com) has Maria Zec been recognized as a premier property with Forbes’ Five-Star and AAA Five Diamond awards since its grand opening in 2001. The property boasts 339 luxurious guest rooms and suites and offers a 15,000-square-foot spa and fitness center, 24-hour room service, a ballroom, and seven additional meeting and event rooms as well as three distinctive restaurants and Z Bar. The name “Z Bar” was chosen by the HSH Board of Directors in honor of Maria Zec, Peninsula Hotels’ first-ever female general manager. The Peninsula Chicago is managed by The Peninsula Hotels which operates luxury properties throughout Asia, Europe and the United States.

What are the keys to being a great hotel today and how do you define The Peninsula Chicago difference?

A key component to our success is being able to create an immersive experience that integrates timeless tradition with new and exciting offerings for our guests.

We often define our success by the beautiful memories we create for our guests. This starts with our compassionate employees who are genuine, considerate and happy people who take great pride in their work, going above and beyond for our guests and their co-workers at every opportunity.

Beyond offering warm and caring service, we keep our hotel immaculately maintained throughout the public space, the spa, restaurants, meeting rooms, guestrooms and suites. One of the most unique features is our in-room technology which is innovative yet very intuitive and easy for guests to use.

Our culinary offerings allow guests to experience a wide variety of exceptional cuisine in venues that are favorite spots for guests and locals alike. This year we expanded our offerings with a fabulous new rooftop bar.

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Will you discuss the culture of continuous improvement at The Peninsula Chicago and the investments made at the property to maintain its leadership position?

The Peninsula brand stands for continual reinvestment in our hotels in order to offer the most relevant and forwardthinking features, amenities and facilities.

This allows us to remain market leaders and to continue to provide one of a kind experiences at our properties.

Not only do we evolve to keep our loyal guests happy, but also to provide opportunities to welcome new guests to The Peninsula. A good example of this was our conceptualization and construction of Z Bar, which opened at The Peninsula Chicago this past year.

This venue has elevated the profile and awareness of the hotel and brand among the millennial community. While we love that we have been a part of families’ traditions and memory-making moments for many years, we want to connect and engage those from the next generations to continue to build our legacy. This historic company has a longterm focus on addressing the needs of the local community and benefitting the world around in numerous ways.

Personalization and attention to detail are passions of our team as they focus clearly on all the details related to both our product and our service. This past year, we renovated our main lobby restaurant to create a more contemporary look and feel, which complements the guest room renovation completed in 2016. In addition, we take great care in personalizing each guest stay. Whether a guest is traveling for business or leisure, we focus on details to deliver their preferences and provide special moments that surprise and delight.

You mentioned that The Peninsula Chicago recently introduced a new bar, Z Bar. Will you provide an overview of this offering?

Z Bar is a rooftop destination that celebrates the city with spectacular views of the Magnificent Mile (Michigan Avenue) including the historic Water Tower Park and the iconic John Hancock building. The bar opened June 2018 and is located six and a half floors above street level. Our goal was to create a one-of-a-kind experience featuring internationally-inspired cocktails and global cuisine, complimented by an upbeat atmosphere with curated music and a unique calendar of cultural happenings.

Z Bar outdoor terrace (above); The Peninsula Chicago lobby (left)

The creative interior has five distinctive areas including two lounges and a bar with a cityscape mural of Chicago’s famous bascule bridges and a bean-shaped skylight with amazing views of the John Hancock building as well as a private salon that can accommodate up to 12 guests. In addition, the exterior terrace can accommodate 75 guests and includes a water feature in the summertime and fire pit and heat lamps for the cooler months.

Art is an important component of the property. Will you highlight the focus on art at The Peninsula Chicago?

We maintain amazing art collections throughout our hotel including select pieces depicting Chicago’s industrial and Art Deco era. Each guestroom and suite showcases an “art wall” that features a chrysanthemum flower, which is Chicago’s official flower since 1966.

In addition, we are celebrating our fifth year as the official hotel sponsor for EXPO Chicago, one of the premier contemporary art fairs in the U.S. Every September we collaborate with EXPO Chicago to bring a fascinating contemporary art exhibit to the hotel.

We recently expanded our commitment to art through showcasing artists and their work in a revolving “Artist-in-Residence” program on the lobby level.

You have led The Peninsula Chicago for a number of years. What has made the experience so special for you?

I love my job. I love the people with whom I work. I have a great team. We have guests that value what we do and we have the support from our head office.

Finally, I love developing talent. I take great pride in mentoring young managers and helping them to achieve their dreams and their potential.

What are your key priorities for The Peninsula Chicago as you look to the future?

It is important that we evolve with the changing times and ensure we develop our products and services based on the desires and passions our customers will have in the future. We must provide the very best in terms of accommodations, cuisine, wellness and cultural experiences and constantly remain a leader within the industry.

What advice to you offer young people interested in a career in hospitality?

My advice to young people is to be passionate in whatever industry they choose. To excel, you must work hard, take chances, be inquisitive and constantly learn. It’s all about the journey.

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VOLUME 42, NUMBER 1

Istanbul Luxury An Interview with Nicolas Kipper, General Manager, The Ritz-Carlton, Istanbul EDITOR’S NOTE Nicolas Kipper has led successful projects and received awards in the field of rebranding and positioning of the hotels and restaurants under the structure of Marriott International. Prior to his current position, he was the General Manager of The Ritz-Carlton, Budapest after having served as the General Manager at Marriott Moscow Tverskaya, Marriott Moscow Grand and London Marriott Park Lane.

Kipper started his professional career Nicolas Kipper at Hyatt Regency Cancun, Mexico in 1990 and assumed important positions in the food and beverage departments of international chain hotels such as Hyatt Regency Guadalajara, Hyatt La Manga Club Resort, Spain, Hyatt Regency Belgrade, Grand Hyatt Istanbul, Hyatt Regency Taba Heights, Egypt, Hyatt Regency Warsaw, Poland and Hyatt Regency Casablanca. He received a bachelor’s degree and a master’s degree from Strasbourg University.

PROPERTY BRIEF The opulence, culture and tradition of the Ottoman Empire is given a modern twist at The Ritz-Carlton, Istanbul (ritzcarlton.com/ istanbul). Set along the Bosphorus in the upscale Dolmabahçe district, the hotel has 243 luxury accommodations, including 23 suites, and overlooks the waterway from nearly every vantage point. It offers an enticing collection of five-star amenities, including the Spa at The Ritz-Carlton, Istanbul with locally inspired treatments including a Turkish Hammam, the city’s first outdoor spa, an indoor swimming pool and fitness center. The Atelier Real Food restaurant features farm-to-table dishes and a showcase cellar with 150 local and international wines. Mediterranean-inspired snacks, mixologistcrafted cocktails and views overlooking the city and the Bosphorus are available at Bleu Lounge. The property has nearly 26,000 square feet of conference space with state-of-the-art audiovisual expertise, custom catering and other meeting services. The RitzCarlton, Istanbul is a complete wedding destination with venues overlooking the Bosphorus, a dedicated wedding planner, custom catering, packages and other services.

How has the hotel business fared for Istanbul and what are the key markets for growth for The Ritz-Carlton, Istanbul?

The business has progressed particularly well this past year. We have seen a major increase in business. It varies dramatically from VOLUME 42, NUMBER 1

one category of hotel to another, and traditionally luxury properties are the ones that benefit last, but we did benefit as well.

Our dominant market is the Middle Eastern market, but we are diversifying and making a concerted effort to visit and foster other markets in the Far East and Latin America that are developing. We are expecting 2019 to be fantastic.

Will you highlight the state of the property and the recently completed renovation?

This past year, we have just finished a fullscale hard renovation of the property. All of the rooms are brand new and very contemporary.

There is a great evolution of Ritz-Carlton standards that lead to more modernity but that retain the traditional feel of Istanbul and its hospitality.

The investment has been done and the business is coming back as well, so this should be a great opportunity to develop the business.

How important is it to have a strong suite offering and will you discuss the strength of your renovated suites?

There are different major standout points of the hotel and one is definitely the suites. The building is a tower and 80 percent of our rooms have views of the Bosphorus, which is a big advantage.

Most of our suites have both a living room and a bedroom. During the renovation, we mixed materials with wood floors in the living rooms, carpets in the bedrooms and marble in the bathrooms to help guests feel a sense of home when they stay in one of our suites.

We also have our two signature suites. The Presidential Suite has a huge terrace in excess of 200 square meters that is bigger than the interior area of the suite and that features a Jacuzzi overlooking the Bosphorus.

Recently, we started operating The RitzCarlton Suite, which is located on the 14th floor of our building with floor-to-ceiling windows providing breathtaking views of the Bosphorus.

Will you discuss your food and beverage offerings and what are the keys to being successful as a hotel restaurant in a city like Istanbul?

Istanbul offers a variety of elaborate foods.

We have a restaurant that serves some of the best hotel food I have ever had in my life. It

The Büyükada meeting room (left); a Premium Bosphorus View Room (above)

offers Turkish food but also a wide variety of international offerings.

Our key feature is our brunch offering, which is successful both with hotel guests and with locals. We serve Turkish food and help international travelers discover it. This has had a very good impact on us and our business.

We also have a very successful rooftop bar with a retractable roof. It’s a lovely place overlooking the Bosphorus that hosts many parties and has live music. We have enjoyed great success with this venue over the past summer.

How important is the spa offering at The Ritz-Carlton, Istanbul and do you look at the spa as an amenity?

Spas are becoming increasingly important everywhere and people tend to use them more often today, even if it’s only for a massage or to work out. In a destination like Istanbul with language barriers in the city, guests tend to use our spa rather than going to one outside of the hotel.

We have the largest indoor swimming pool in town, as well as an outdoor swimming pool.

We have more than 12 treatment rooms, which includes the traditional Turkish Hammam and offers everything from full body massages to facials.

We do not view this as an amenity – we are driving revenue and profit. We offer some limited memberships for local clientele, but mainly generate revenue through the treatments and the promotions we have.

With all the financial pressures in running a hotel today, is the role of the general manager still about hospitality or more of a business role?

It is a complex equation. With companies going public, it’s becoming more and more financially driven. On the luxury side, it is even more critical to find a good balance.

I tend to always consider that we should be profitable at everything we do; otherwise, there is no point in doing it. However, I try to leave a certain margin where we must incorporate the unexpected for the customer, to create an experience and something for them to talk about.

It’s about what we provide to customers that they can talk to their friends about. We strive for this every single day and I push our ladies and gentleman to work towards making each customer experience unique in this regard.

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Growing Dream An Interview with Jay Stein, Chief Executive Officer, Dream Hotel Group EDITORS’ NOTE Jay Stein has held his current post since December 2015. Prior to this, he served as Chief Operating Officer for Dream Hotel Group, formerly known as Hampshire Hotels Management, LLC; Area General Manager for Starwood Hotels & Resorts Worldwide, Inc.; Ar ea General Manager New York City for Doral Hotels and Resorts; and Food and Beverage Manager for Hilton Jay Stein International.

COMPANY BRIEF Dr eam Hotel Gr oup (dreamhotelgroup.com) is a hotel brand and management company with a rich, 30-year history of managing properties in some of the world’s most highly competitive hotel environments. Home to its Dream Hotels, Time Hotels, The Chatwal and Unscripted Hotels brands, Dream Hotel Group encompasses three business lines: Proprietary Brands, Hotel Management, and Dining & Nightlife. The company is committed to the philosophy that forward-thinking design, service and guest experiences should be available across market segments. After thoughtful evaluation, and to leverage its world-renowned Dream Hotels brand, the company decided to sunset the Hampshire Hotels Management name in 2015.

The change to Dream Hotel Group capitalizes on the company’s most recognized assets to help raise awareness among guests, hotel owners and hotel developers.

Will you discuss the state of Dream Hotel Group’s business and the growth for the individual brands within the group?

We have been a bit surprised. We expected our Chatwal brand to see the slower growth of the four brands, but it’s turning out to have one of the faster growths at the moment. However, I don’t think that will last forever unless we truly become a five-star luxury player.

There is a lot of interest in the Chatwal brand. We are developing one ourselves and have had some interest in Mexico, which has been a good market for us. We also have an Unscripted in Tulum, Mexico and we signed a Chatwal in San Miguel de Allende, which is a great city in the center of that country. We are hoping to sign another Chatwal in a different part of Mexico in a few weeks.

90 LEADERS

There is also good interest for the Chatwal brand in Spain and we hope to make some announcements there soon. There is also interest in Asia, which has been surprising.

The Time brand tends to be the slowest in regard to growth at this point, because it does go head-tohead with Dream and most developers would rather talk to us about a Dream opportunity.

The Dream has some unique requirements with high-volume food and beverage opportunities at multiple venues and high-energy nightlife components, and it needs to be in the right city, so not every piece of real estate is appropriate for a Dream.

Even so, Dream is our most famous brand and is usually the first brand our partners want to work with.

Unscripted is the newest of the brands.

There is good interest there and there is probably more in the pipeline there than at any of the other brands. It’s just starting and there is only one Unscripted currently open, so it will take some time to get that brand kickstarted. We do have one property under development in Birmingham, England at the moment and we just signed a deal for a large Unscripted in Belgium, right on the border with France. We’re also working on opportunities in Austin, Belize, and Tulum, so we do have a number of deals signed and a few more we’re working on in Asia as well. We hope to announce those soon, including Vietnam.

As you grow the Chatwal and Unscripted brands, will there be certain common characteristics that guests will expect at each property, or will the hotels be customized for each local market?

It’s a bit of both. One might recognize common elements upon walking in, but we’re more specific to the location. Even if it’s not designed specifically to the locale, there will be a uniqueness about the property. The designer will steer the property into a statement, be it a local statement or one shaped by the design in general. For instance, there may be a Moroccan themed hotel in Paris.

To be a true lifestyle luxury property, we’re not looking to do the traditional, sedate, lowenergy version of luxury. We’re bringing more of our lifestyle and energy into that luxury to satisfy the modern-day luxury traveler and to bring a high ADR.

Dream Hollywood lobby (above) and pool (left)

That feeling will be the common element one will see as opposed to a cookie cutter luxury product. That goes for all four of our brands.

One could never walk in and know immediately that something was an Unscripted, because we come from a history of independent hotels – all of these brands were one-off independent properties and they weren’t dreamed up to be part of a larger brand when they started.

They come from the great tradition of boutique hotels. They all end up being great, truly appropriate for the areas they’re in and for the community to use – not just the travelers that come from outside.

What has been the key to the success you have had in the food and beverage space, whether it be for Dream, which is known for its food and beverage offerings, or with the relationship that The Chatwal New York has with Geoffrey Zakarian?

Everyone says they want to be authentic and local in its food and beverage offerings, and I’m glad they are because it’s where our industry should have been heading for a long time and we’re finally on track.

I don’t think everybody is able to do this successfully or that they put the commitment into doing it like we do. We are truly focused locally on our communities.

Most guests who stay with us primarily need a place to have breakfast and possibly enjoy a cocktail. More often than not, the guest is more than capable and happy to go out in the city and experience the great things it offers.

Our hotels offer exciting and vibrant dining and nightlife options that reflect the city it calls home. Our goal is to build properties that truly become a part of the community so that guests walk into the lobby and see a buzzing scene with locals enjoying themselves and, in turn, our guests want to be part of that fun.

Do you still see the general manager role as a hospitality role or has it become more of a financial/business function?

It’s a mix. We have other people on staff who are not General Managers and whose job is to worry about the financials, but to be a real hotel leader is more than just that. I need leaders who build great teams – otherwise we become a commodity and that is not what Dream Hotel Group is about.

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VOLUME 42, NUMBER 1

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Lifetime Innovation An Interview with Becky Hubbard, General Manager, Lotte New York Palace EDITORS’ NOTE Prior to her current post, Becky Hubbard was Executive Assistant Manager at Trump SoHo Hotel; Assistant Rooms Executive at The Ritz-Carlton Hotel Company LLC; Front House Director for The Ritz-Carlton Hotel Company LLC; Director of Reception for Starwood Hotels & Resorts Worldwide, Inc.; and Assistant Director of Reception for Sheraton. She received her B.S. degree in hospitality from the State University of New York at Plattsburgh. Becky Hubbard PROPERTY BRIEF Lotte New York Palace (lottenypalace.com), a legendary New York City luxury hotel, underwent a thorough transformation from a historic Madison Avenue gem to Midtown’s premier modern hotel. The hotel features 909 spacious rooms and suites, including 176 exclusive Towers accommodations, which provide the perfect setting for relaxation and inspired stays in New York City. Unique dining venues such as Pomme Palais offer everything from imaginative breakfast dishes to signature pastries and sandwiches. Lotte New York Palace’s collection of versatile meeting and event spaces is ideal for weddings, corporate events, and special occasions. The hotel’s famed Villard Mansion, built in 1882, is recognized as a New York City landmark and gracefully blends with a contemporary 55-story tower. The Madison Avenue courtyard provides a dramatic entryway to the hotel’s grand lobby. Villard restaurant offers a New American menu comprised of “farm house” breakfast and brunch fare.

What are your views on the state of the hotel business in New York City and the opportunities for growth in the market?

The New York City hotel market is on the upswing. We are seeing higher tourism levels than ever before, with increased hotel room inventory each year. 2017 was a record breaking year for NYC with 61.8 million visitors and 3.1 percent growth in hotel rooms. The city has demonstrated many years of record-breaking visitation and is on track to do the same in 2018.

Even though the room supply has increased, it has been met with strong demand. As the largest luxury hotel in New York City, Lotte New York Palace has a unique opportunity to be a leader within the hotel community and create standout experiences that visitors flock to.

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What are the keys to being a great hotel today and how do you define the Lotte New York Palace difference?

In the luxury travel space, it’s a given that we have to provide amazing service.

We need to be thoughtful, memorable and impeccable in our service delivery and execution. Our overarching goal is to create transformative experiences that people want to be a part of. We strive to deliver far beyond what our customers have paid for including experiences that are available only at The Palace. We genuinely care about the well-being of our guests, and it’s that passion that I try to instill into my entire team.

Will you discuss the culture of continuous improvement at Lotte New York Palace and the investments made at the property to maintain its leadership position?

Lotte is a leader in every type of business that they engage in. It is a company that is based upon continuous innovation and irreversible momentum. We are constantly seeking ways to improve our guest experience. In the upcoming year we plan to launch a new spa that is unlike anything else available in NYC. With our new spa partner, we are creating an urban oasis and expanding our offerings to 8 treatment rooms, a state of the art fitness center and a yoga stu-

dio. We are also renovating four of our specialty suites this year. In addition, we are redesigning uniforms for our entire staff. We are constantly seeking opportunities to upgrade service and cater to the needs of our travelers with changes to technology and exceeding all guest expectations.

The grand stairway of the Lotte New York Palace (above); a Tower One-Bedroom Suite living and dining area (left); a Tower Executive Suite bedroom (below)

How important is the strength of the suite offering for Lotte New York Palace and having such a wide range of suites in The Towers?

Lotte New York Palace has a large offering of suites to cater to the needs of our clientele. We have 87 suites including 40 Corner Suites that would be considered a Presidential Suite in virtually any other hotel throughout the city. In addition, we have four triplex suites (5,000 square feet each), a Royal Suite and a number of other offerings. In a luxury hotel such as The Palace, our clients expect us to have a variety of suites to meet their needs. Guests stay with us to take family vacations, celebrate special occasions and to conduct business. We are also lucky enough to host many leaders of business and diplomats. With such a large inventory, we feel that we have something for everyone.

Lotte New York Palace has a strong offering with its lounges and bars. Will you highlight these venues and the value they bring to the property?

We have a number of lounges and bars throughout the hotel. Each one is unique and has its own personality. Our Lobby Lounge is ideal for sipping wine and casual conversation. Troubles Trust (tucked beneath our Grand Staircase) serves curated hand-crafted cocktails. Tavern on 51st Street is the most upscale tavern that you’ll find in the city with microbrews and classic cocktails. We also have Rarities where we serve fine spirits, wines and champagnes (by reservation and invitation only).

Our famous Courtyard on Madison Avenue is open during the spring and summer months.

Is personalized service the key in providing a true luxury hotel experience today?

Personalizing service is no longer fully defined by tangible things. At Lotte New York Palace, we feel that catering to an individual’s personal preferences is very important. Guests want to feel that they have received value for what they have paid.

We seek ways to create authentic experiences for our travelers. We want them to come away from their visit feeling refreshed and with a renewed sense of well-being.

What advice do you offer young people interested in a career in hospitality?

I would advise people embarking on a hospitality career to work hard and prepare yourself to be lucky. Your career in hospitality can expand into many different areas of the industry. In hospitality, you can do anything from operations to sales to acquisitions, all while advancing in one company.

Most importantly, always remember that the guest comes first.

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VOLUME 42, NUMBER 1

Employees First An Interview with Edward V. Staros, Vice President and Managing Director, The Ritz-Carlton Resorts of Naples EDITORS’ NOTE Edward Staros served as Vice President of Operations for The Ritz-Carlton Hotel Company, L.L.C. from 1992 to 1999. In October 1999, he was appointed to his current position as Vice President and Managing Director for The Ritz-Carlton Resorts of Naples. He has also served as Vice President and General Manager of The RitzCarlton, Buckhead (Atlanta); General Manager of The Ritz-Carlton, Atlanta; and Corporate Director of Edward V. Staros Rooms Operations. Prior to joining Ritz-Carlton in 1983, Staros worked for Hyatt Hotels Corporation. He holds a business degree in hotel and restaurant administration from Florida State University.

PROPERTY BRIEF The Ritz-Carlton, Naples (ritzcarlton.com/naples), a Forbes Five Star, AAA Five Diamond resort located on Florida’s Paradise Coast, offers 450 guest rooms, including 35 suites and 70 Ritz-Carlton Club rooms, all featuring spectacular Gulf of Mexico views. Resort amenities and activities include seven restaurants, a spa with 35 treatment rooms, three miles of pristine white-sand beach on the Gulf of Mexico, two pools, four tennis courts, and a variety of water sports.

Just three miles away, The Ritz-Carlton Golf Resort, Naples (ritzcarlton.com/naplesgolf), features 295 guest rooms, including 38 suites, four additional tennis courts, two championship Greg Normandesigned golf courses, four restaurants, and an impressive Club-Level lounge with balconies overlooking the 18th hole. Guests staying at each resort are considered registered guests at both resorts and may enjoy the amenities of either property.

How do you keep the history and heritage of The Ritz-Carlton, Naples alive while making sure the property is current and relevant?

The Ritz-Carlton, Naples’ reputation of being one of the premier luxury resorts in the country is attributed to respecting our history while reinvesting in our property. We have an incredible ownership group that believes in reinvesting in our property. Physically, we closed the hotel last June and reopened in September and spent millions of dollars to ensure the infrastructure stays relevant.

However, it’s truly about the 1,300 ladies and gentlemen that keep this hotel running day after day and who are responsible for the long-term VOLUME 42, NUMBER 1

success; the average employee has been with us for 16 years. The core of our relevance is derived from delivering on our reputation and consistently providing intuitive, personalized services and experiences to each of our guests.

Guests have been coming back for over 30 years in a row because of the service we continue to provide.

The Ritz-Carlton, Naples will remain relevant as long as we engage every guest, and the only way to do that is to engage each and every employee.

Remaining committed to introducing new and exciting experiences that our guests might not know they are looking for, whether it’s wellaging treatments in our spa, using healthy ingredients in interesting ways, or educating our youngest guests about our delicate ecosystem – that innovation comes through each of our ladies and gentlemen.

My personal commitment is to ensure open, frequent and transparent communication with our staff. I spend the majority of my day with our teams discussing their own guest interactions and experiences. By encouraging their inventive ideas, we are able to continuously develop and motivate an enhanced guest experience. The employees have to come first; their happiness at work leads to a commitment to excellence, and the reason why our repeat guest ratio is so high.

How important is it to have ownership that is so engaged in the property?

It is imperative. We have a long history together and we strive to continue to maintain the relationship we have built together.

We reflect on the potential within the resort, and how we can take something from good to great. We contribute thoughts to the ownership group often, and because of our track record, they listen and budget for new ideas accordingly. We consistently recommend enhancements to our ownership that bring value to all four of our customers; employees, guests, owners and The Ritz-Carlton Management Company. Keeping our owners engaged is the key. We have a tendency to under-promise and over-deliver, and we’ve worked together long enough that they have confidence in our ideas and subsequent results. We are extremely thankful to have such a wonderful relationship with our owners, Host Hotels and Resorts.

The Ritz-Carlton, Naples (above); The Ritz-Carlton Golf Resort, Naples (left)

Is a true luxury hotel experience today about personalization and creating a one-onone guest experience?

If we think about what guests are looking for today, individualized service accounts for 80 percent and only 20 percent relates to having a strong property. While the travel experience has transformed, most guests look for an escape, yet still want to know that there’s an opportunity for access to connectivity and other “bells and whistles.”

They want anticipatory service and outstanding food and beverage. Our saucier makes all soups and sauces from scratch. We also bake every piece of bread as well as make every sorbet, gelato and ice cream by hand. I believe that is part of what differentiates The Ritz-Carlton, Naples experience for our guests.

A third of everything on our menu is individualized to meet our guests’ dietary needs or taste preferences. We never say no; it’s always yes, because we can do that. We individually prepare food for guests so they can have the best of the best, and can accommodate their many needs. Our guests repeat their stay because they trust what they’re going to see, taste, and experience each time, which I believe is a key component of luxury.

How important is having a diverse and inclusive workforce to the success of the property?

I come to work every day to apply the principles of trust, honesty, respect and integrity, and in order to fulfill the commitment, we have to take care of each other.

We have the diversity of 67 countries represented by our hotel staff, and we all care deeply for each other and celebrate each other’s heritage. I have a flag for every single employee’s country to celebrate our diversity, the perspectives and cultures that are brought into the building every day.

If our team knows they’re in a loving environment, that positive energy is circulated to each guest. I hear it every day. Guests love our hotel because they connect with our employees.

For example, I have three doormen who have been here from the day we opened and they can identify a guest before they step out of their cars.

Some days I never make it to my office because I go from employee to employee and from guest to guest. Those are by far my favorite days; the guest and employee relations are the most important part of my job and I’m proud of the constant communication I share with our staff and guests.

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LEADERS 93

A Great Location An Interview with François Delahaye, Chief Operating Officer, Dorchester Collection and General Manager, Hôtel Plaza Athénée, Paris EDITORS’ NOTES After graduating from l’Ecole Supérieure d’Hôtellerie de Saint Cergue, François Delahaye held a variety of positions in the hospitality industry before becoming General Manager of Hôtel Plaza Athénée, Paris in 1999 and Chief Operating Officer of Dorchester Collection in 2004.

like in 2008. Despite these small worries, I’m quite confident we will see growth.

With all of the new product coming on the market in Paris, what are the keys to staying relevant and remaining a leading property?

First of all, we are very fortunate with our location. Other hotels PROPERTY BRIEF Hôtel Plaza may open in our market, but they can Athénée, Paris (dorchestercollection. never have a location as good as ours. com/en/paris/hotel-plaza-athenee) François Delahaye One of the main reasons people come welcomes guests delighted to stay on to Paris is for shopping and we are avenue Montaigne, the heart of haute couture. located in the best shopping area. The luck of The hotel features subtly updated Parisian inte- having a great location is our number one asset. riors and beautiful new event rooms, inspired We also need to manage renovation. The by haute couture. Guests can stay in luxu- owner has to utilize his deep pockets to ensure rious comfort overlooking either the Eiffel Tower we remain competitive. We must routinely have or the charming courtyard with its signature new restaurants, new bathrooms, etc. red awnings, perfect for al fresco summer dining and, in winter, features its own ice rink. Bar du Plaza Athénée has been lavishly redesigned, and Alain Ducasse, world-renowned multiple Michelin-star chef, oversees all of the dining venues. In his Alain Ducasse au Plaza Athénée restaurant, visitors can experience a new culinary concept amidst a stunning ceiling of crystal. In contrast, the listed Art Deco Le Relais Plaza is a chic and ever-popular Parisian brasserie, which hosts popular jazz nights. Those seeking complete indulgence will appreciate Europe’s only Dior Institute, offering exclusive spa treatments in a stylish setting.

Will you discuss the state of the hospitality business in Paris and the growth for Hôtel Plaza Athénée, Paris in the market?

We saw a growth rate of around 10 percent in 2018, which is very good. However, we must not forget that following the act of terrorism three years ago, we lost 30 percent of our business. In addition, there is a new five-star property being opened every six months in Paris.

Despite all of this, growth continues.

Paris has so much to offer that there is some real hope for growth again this coming year. I’m confident that 2019 will be a good one if nothing terrible happens on the stock exchange and we don’t have a financial crisis 94 LEADERS

People will agree to pay a high rate to stay in Paris – the average rate is one of the highest in the world – but they need perfect bathrooms, perfect views and perfect layouts as well as great technology in the rooms. If we invest, we will get the best business, but if we keep the same things we’ve always had, we’re putting ourselves behind the market. Guests know what they expect when they pay a high price and they won’t pay it if the product is not worth it.

Will you discuss how valuable your suite product is in a market like Paris?

When we did our latest renovation, we purchased a new building on the corner facing

Hôtel Plaza Athénée, Paris facade (above); Alain Ducasse au Plaza Athénée restaurant (left); Signature Eiffel Suite salon (below)

the Eiffel Tower. We thought about just adding more bedrooms, but realized that the maximum price we could sell them for was $1,000 a night.

However, when there is a view and we add a sitting room, there is no limit on the price of the suite. Having these suites allows us to have a much higher return on investment on the real estate.

Paris is known as a culinary destination. What are the keys to being successful with the food and beverage component for a hotel and can you achieve a profit in this area?

The difficult part is the profit. Driving revenue is easy. In Paris, it’s very hard to make any money on food and beverage. The cost of labor is high and there is a limit on what we can charge for a meal.

Then we add in the competition, where there are a lot of great chefs fighting against each other. When people organize a trip in Paris, there are certain restaurants they have heard about that they feel they have to go to. When we are one of those restaurants, we have to make sure the guests enjoy their experiences so they will talk about them and come back.

I believe that food and beverage is an asset to bring people to the property. We have to make a profit, but it’s very important that we have celebrity chefs and pastry chefs in order to get positive press.

With the financial pressures of the industry and shortened booking windows, is the GM role today still about hospitality or has it become more of a financial role?

When I was hired 18 years ago, I had to do marketing, be an innkeeper, watch the chef, etc. I didn’t focus too much on finance because that was taken care of by another office.

In the past, I used to see travel agents and press people to talk about my property.

At the salary I’m making, this is a waste of my time and needs to be handled by someone in the sales office. Dorchester has those offices in Sydney, Singapore, Shanghai, New York, Los Angeles, London and São Paolo. Having 10 hotels allows us to have that sales and marketing presence in all of those markets.

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VOLUME 42, NUMBER 1

SANATIO SPA JAPAN

SLEEP PROGRAM

BY DR. REBECCA ROBBINS

BY CHEF GEOFFREY ZAKARIAN

Fresh and Relevant An Interview with Deborah Yager Fleming, Chief Executive Officer & Partner, Acqualina Resort & Spa on the Beach EDITORS’ NOTE Deborah Yager we utilize technology. Technology is Fleming joined Acqualina Resort a very important part of any business, & Spa on the Beach in Mar ch and we have to look at how we’re uti2004 after having served as Vice lizing the opportunities it provides to President, Sales & Marketing at become more customer centric as a Island Outpost, where she managed brand. marketing campaigns for 12 bouThose are things we have heavtique hotels, including The Tides in ily focused on this past year and the Miami. She also garnered valuable result speaks for itself because we experience in New York at Leading have seen tremendous growth. Much Hotels of the World where she held of this is a result of increasing the senior management positions and value proposition for the customers, implemented the design of world- Deborah Yager Fleming but also because of our increasing the wide sales strategies and innovative engagement of our staff and continumarketing programs. ing to get better and better, which is critically important to us.

PROPERTY BRIEF Acqualina Resort & Spa How important is it that technology is on the Beach (acqualinaresort.com) is a place used to better enable the employee/guest where the charm of a Mediterranean villa meets relationship and that it does not take away elegance on the beach. Located in Miami’s pris- from the personal interaction? tine Sunny Isles Beach, the resort is situated For the employees, we are always looking on 4.5 beachfront acres with 400 feet of stun- to increase efficiency so we can give them more ning Atlantic Ocean coastline. Acqualina fea- time to interact with guests. They enjoy having tures 188 residences, 98 impeccable guest rooms the time to create conversations beyond just the and suites, a 20,000-square-foot ESPA ocean- pleasantries. front spa, three oceanfront restaurants including the acclaimed Il Mulino New York, three oceanfront swimming pools, and an innovative marine biology-based AcquaMarine children’s program. The property is the recipient of the coveted Forbes Five Star Award and the AAA Five Diamond Award. Trip Advisor named Acqualina as the Best Beachfront Resort in the U.S. for four years in a row.

Will you discuss the strength of Acqualina’s business and has there been growth in the market?

We actually had a very successful year partly because the market in general in the luxury sector has had growth. There is room for all the new entities that have come here, and for us, we have focused on the repeat business which remains 50 percent for Acqualina.

That is remarkable and we do that by developing services and amenities and keeping in mind the current and future needs of the customer. Keeping the property fresh and relevant has helped us hold on to our repeat business.

Building our infrastructure is important for us, not only in remaining true to the brand and empowering us to create personalized experiences, but it also impacts how we are engaging with our employees as an organization and how 96 LEADERS

As a five-star service brand, we abide by standards and provide the necessary five-star components, but also must be sure to converse with our customers as we find that they love to converse with our team members.

Giving them technology efficiencies that allows them to do this is a tremendous benefit for us in all areas. For example, in housekeeping, technology allows our staff to do their jobs more efficiently and we need to make sure we’re giving the leaders in this area the tools they need to gain efficiency.

Acqualina Resort & Spa (left); the tranquility pool (above): Himalayan Salt Wall at the Spa (below)

From the guest perspective, our customers are interested in being in control all the time, so we’re looking at the use of technology in regard to the room offerings. These are things that are important to our customers because they want to be in control of certain things.

Using technology to enhance the guest experience in terms of the engagement is important, but using it to lessen the personal interaction with the guest is something we want to avoid.

So it’s really about going above and beyond the obvious and gaining an understanding of how the guests are utilizing technology so we can know which new amenities or technologies to add in.

You are focused on having engaged employees, which leads to return guests which, in turn, leads to financial results. Is the focus on employees first?

I do look at employees first. They are the ones who deliver on the brand promise. It’s so important not only to have passionate employees, but also curious employees. Curiosity is exceptionally important in a hotel experience and for me to have team members that are curious and interested in asking customers questions is huge. I also want them to be willing to collaborate with fellow team members.

It’s important for them to be insightful, to observe and explore and to be willing to address what doesn’t really make any sense – the more they do that, the more information I get so I can improve what we’re doing here. I am careful to always give them recognition for that.

This approach definitely translates into financial success because the guests are the ones who eventually benefit from it.

Are you happy with where the product is today and are there changes on the horizon?

I’m happy in that we are an owner-operated entity, so we’re constantly investing in our property. We have the opportunity to make decisions and get things done because we’re present at the property and, if we see something that needs to change, we will move forward on that. That is the advantage of being independent.

However, we’re always striving to be better. It would be foolish of me to say that I’m sitting back and coasting. We have to constantly be improving. Our mission is to constantly strive to do better at every level here.

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Service Culture An Interview with David I. Cohen, General Manager, Hôtel Plaza Athénée New York EDITORS’ NOTE David Cohen was named to his current post in 2015. He began his career as a Four Seasons Hotel management trainee at New York City’s Pierre Hotel in 1984. Prior to joining Hôtel Plaza Athénée, Cohen ran his own hotel consulting business and before this, he oversaw New York hotel operations for TPG Hospitality.

Cohen also held General Manager positions at New York’s historic Warwick Hotel and Le Parker Meridien and was Resident Manager of the RIGHA David I. Cohen Royal. In addition, he was a member of the opening team for The Ritz-Carlton Battery Park and The Ritz-Carlton Central Park South.

Cohen received his B.S. degree from the Hospitality School at Rochester Institute of Technology as well as a degree from the Centre International de Glion in Switzerland. He also holds an associate’s degree from The University of Hartford in Connecticut.

PROPERTY BRIEF Hôtel Plaza Athénée New York (plaza-athenee.com) is steps from some of the city’s most revered attractions, including Central Park, Museum Mile, and Madison Avenue shopping. The 143-room luxury boutique hotel has been the home-away-fromhome for sophisticated travelers from around the world for over two decades. Owned by the TCC Group of Thailand, it is a member of The Leading Hotels of the World.

Hôtel Plaza Athénée New York has gone through a transformation over the past three years. Are you happy with where the product is today and what are your plans for the future?

I’m comfortable with the product we have today. I would like it to be newer sooner. Three years ago, we had a three-phased plan and we have finished the first and second phases. We are now waiting to complete the third phase, which will be in 2019, and will include all the guest rooms, bathrooms and hallways of the hotel. This is scheduled and we’re excited about it. We are waiting for ownership’s final approval on styles and brands. We know what we want to do – we have surveyed hotels from all over the world to find the good, the bad and the ugly and what we want and don’t want. We have also spent a lot of time with our guests asking them what they want and don’t want.

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We are ready and now it’s a matter of ownership commitment, which I believe is coming. The physical product we have right now is the best it can be.

The most important thing for me is the level of service we’re providing.

Right now, if there is anything to choose from in the hotel that one would consider the best, it would be our phenomenal team of managers and employees, especially in New York City where most people might not say that.

I’m comfortable saying that 95 percent of our entire team is some of the best in New York City. They know our guests, they greet our guests and engage with them. They have cared for guests who have had generations of family members who have visited us. It’s always very special to see the engagement.

The guests know us or get to know us and they keep coming back, and that stems from the service at the hotel and the service is all about the staff.

The staff is what I am most proud of.

What are the keys to making a hotel restaurant and food and beverage operations successful?

The success and failure of food and beverage in hotels is strictly based on catering and banquets. If we were a hotel in New York City that had 12,000 to 15,000 square feet of banquet space with a main room of a certain size, then we would have the opportunity to make money; at any size below that, no one can make money and food and beverage becomes an amenity.

My logic is based on the fact that we have a limited amount of catering and banquet space which we have made more flexible over the past three years, so we can sell the main dining room out for an event in conjunction with the banquet space.

Manhattan Terrace Suite living area (above); an atrium terrace (left); Gold Penthouse dining area (below)

Even though it is difficult to make money on food and beverage, we have to understand that there is a value to this service, be it offering a power breakfast or room service, which we do 24 hours a day, as well as in the lounge and bar environment. Our success comes from having a very good chef and consistently putting out a great product.

Many luxury hotels lease out their food and beverage space. The risk factor changes because the odds are that money is still being lost, just someone else is losing it. If I’m going to lose money, I will lose it because of me.

Amenities such as room service and valet, as well as a concierge, mean that we can ask for a higher rate. Our concierge services are particularly valuable because we can fill any request as long as the guest is willing to pay for it. All of these are amenities, but they also contribute to the room rate. I can drive rate higher than my competitors by offering these services. Our competitors are continuing to reduce services like these while we’re maintaining them.

Do you look at the spa offering similarly?

Valmont negotiated with us to come in and operate our spa. They hire their own people and manage it. In 2018, their business was up 45 percent. Before they were managing it, the spa was losing money consistently every month.

They have great products and services and they have a great following inside and outside the hotel.

It has been a perfect marriage. As a brand and product, Valmont is outstanding.

Is it harder today for a general manager to be with guests and focus on hospitality with the impact of technology and the financial pressures of the business?

Yes. I’ve gotten much better at technology and I appreciate it, but the day I become 100 percent technology, that will be my last day in the industry. I push toward being 65 percent in the operation and 35 percent in the office because I get to see the staff and the guests, and I get a feeling of how well the hotel is operating. That can’t be done from an office. I have to know what is going on.

If something goes wrong, my goal is to get that guest back to show them it was a fluke.

Things do go wrong, but when a guest comes back and gives us another chance, we make sure it’s perfect.

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Experiencing History An Interview with Markus Platzer, General Manager, Willard InterContinental Washington D.C. EDITORS’ NOTE Markus Platzer began his career as a night auditor at the Park Hilton in Munich, Germany, and eventually earned a role as Sales Manager at Hilton International’s hotel in Vienna, Austria. In 1992, he joined the IHG team at the InterContinental Hotel Abu Dhabi, and in a few short years became the Regional Manager, Travel Trade Development, for the United Arab Emirates, working from the company’s hotel in Dubai. Markus Platzer He returned to Europe in 2001 as Director of Sales & Marketing for InterContinental Hotel Prague, the hotel where he first led operations as Resident Manager before beginning a sevenyear stint in Bangkok, Thailand, overseeing four hotels in that country. More recently, he has served as Area General Manager for IHG in Japan, based at the ANA InterContinental Tokyo. Platzer earned bachelor’s degrees in international tourism and hotel management at the Tourism School Bad Gleichenberg and in business and commerce at Handelsakademie Feldbach, both in Austria.

PROPERTY BRIEF A celebrated historic hotel, listed on the National Register of Historic Places, the Willard (washington.intercontinental.com) first opened its doors as a two-story rowhouse in 1818. Today, offering 335 guestrooms and suites, the Willard InterContinental remains an integral part of Washington, D.C., and is regarded as a world-class destination. Located in the heart of the nation’s capital, the property is within walking distance to many of the city’s most notable attractions including The White House and the National Mall. Nicknamed the “Residence of Presidents” for its long-standing reputation of hosting the world’s political and social elite, the Willard exudes contemporary luxury and historic charm.

Will you discuss the history and heritage of the Willard, and what have been the keys to remaining relevant?

Here at the Willard, we take tremendous pride in the history and uniqueness of our property, recognizing the significant contributions that this legendary hotel has made, and continues to make, in this nation’s history. For 200 years, the Willard has welcomed U.S. presidents, foreign dignitaries and celebrities, and been the site of many historic 98 LEADERS

moments. The Willard is more than a hotel; it’s a living, breathing, piece of history and an iconic institution. Like Nathaniel Hawthorne said in 1862, “it’s the center of Washington.”

Yet, we can’t rest on our laurels. It’s important to utilize our heritage as the basis for serving the next generation of customers and guests to the property.

Remaining relevant means keeping true to who you are, while being innovative.

While our history will remain the centerpiece and the most important part of the hotel, we must evolve to remain competitive in the market and to attract the next generation of luxury travelers.

Are you happy with where the product is today or are their changes planned?

I am happy with the room product. This past spring, the hotel completed a multi-milliondollar refurbishment of all 335 guest rooms and suites, the historic Round Robin Bar, and our restaurant – Café du Parc, as a continuous investment to maintain and preserve this heritage property while also enhancing and elevating the guest experience. A celebratory year, the refurbishment came as an early birthday gift to the hotel as it celebrates its 200th Anniversary. I couldn’t be happier with the end result.

How important is a strong suite offering when it comes to the Willard’s clientele?

It’s very important. Here at The Willard we boast some of the largest hotel rooms in the city ranging in size from 375 square feet to 3,000 square feet. With 41 suites, all very residential in feel and each with their own identity and unique attributes, the Willard sets a distinct standard for the ultimate luxury experience for our clientele.

Washington has a strong culinary focus.

Do you look at food and beverage as an amenity or is it an area where you can drive profit?

I look at our F&B program as a way to create exceptional experiences for our guests. While it is a necessary amenity, and driver of revenue, our culinary offerings –whether in our restaurant, bar, private dining or banquet spaces – are one facet of our business that allows our personality to shine through our rich diversity of cuisine.

How broad are the Willard’s meeting and banquet capabilities and will you discuss the strength of the property in this area?

With over 22,000 square feet of event space, the Willard offers 19 function rooms, including

The lobby of Willard InterContinental Washington D.C. (above); Peacock Alley (left)

three ballrooms. We can accommodate groups as small as 5 all the way to 600 people. Like our suite product, our function spaces also have their own identity and unique attributes. Some even have quite a storied past – such as our Crystal Ballroom or Willard Room. Our hotel is known for the many historic moments that have taken place here over the past 200 years. You’re experiencing history in these rooms and the hotel. It’s a strength that definitely helps set our product apart.

Are there common characteristics that tie each of the InterContinental hotels together?

Brand standards are what tie InterContinental hotels together. They are the DNA of the brand and are critically important in communicating our brand promises to the consumer.

What is the state of the hotel business in Washington, D.C.?

Evolving and ever growing. Last year, Washington, D.C. welcomed a record-breaking number of visitors to the city – 22.8 million – which was a 3.6 percent increase from the previous year.

At the moment, hotel room inventory continues to grow with 18 additional hotels to open in the coming years. The strengthening global economy is a huge driver of this growth and, as a result, we continue to find ways to be innovative and to remain competitive, as well as exploring new market segments including China, the Middle East and Europe.

Is there such a thing as forecasting today and how challenging is it to project a few years out?

It becomes very challenging. That is why revenue departments are growing and more people have been tasked with overseeing that function. Everything is last minute. We can forecast our base business because, as a large global company, we have a very strong booking engine and receive a certain percentage of our business from it. After that, it’s a balancing act. Accurate forecasting has been almost impossible.

Has the general manager role become more of a business position today and how do you make sure hospitality stays at the forefront?

Hospitality will always be at the forefront.

That is the heart and soul of the business. The role of a GM is a delicate balance between maximizing profitability, managing employee expectations and delivering the most memorable experience for our guests.

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VOLUME 42, NUMBER 1

Bridging classic and contemporary in the heart of Manhattan. #1 Best Hotel in New York City | #3 in the Best Hotels in the United States | 2018 CondÊ Nast Traveler Reader’s Choice Awards

THE CHATWAL, new york, a luxury collection hotel

130 west 44th street, new york, ny 10036 212.926.5250 thechatwalny.com

Constant Reinvention An Interview with Peter Simoncelli, General Manager, The Ritz-Carlton, Chicago EDITORS’ NOTE Peter Simoncelli assumed his current role in January 2016. Over the course of his career, he served 14 years with Four Seasons Hotels and Resorts, including his post as director of food and beverage, followed by executive assistant general manager at its Chicago property. For more than 15 years, he has been in Chicago where he served as General Manager of the Westin Michigan Avenue Chicago and Westin Chicago River North. Simoncelli graduated Peter Simoncelli with a B.A. in business administration from Illinois College. He sits on the board of directors for the Illinois Hotel and Lodging Association and served as its Ambassador of Hospitality in 2013.

He served as Chairman of the Magnificent Mile Association, the Development Board of St. Francis High School, and the Westin Hotels and Resorts GM Advisory Council.

PROPERTY BRIEF Among the skyscrapers of the Magnificent Mile awaits The Ritz-Carlton, Chicago (ritzcarltonchicago.com), a hotel located in the coveted Gold Coast neighborhood.

The Ritz-Carlton, Chicago’s 434 guest rooms, including 90 suites, each offer stunning views, spacious layouts and unimposing elegance.

The property unveiled a new Ritz-Carlton Club Lounge, refashioned suites and a fitness center with city views at the end of 2016. The final phase of sophisticated updates debuted in the summer of 2017 featuring reinvigorated, modernized spaces including the lobby, restaurants and ballrooms that blend the charm of Water Tower Place with the rich history and architecture of the city.

Will you discuss the state of the hospitality market in Chicago?

Chicago had a great year and exceeded our expectations across the market, especially considering the increase in supply in past years.

This has been a nice surprise. Summers continue to draw in family travelers and the demand continues to increase year after year. The Chicago hotel market has tremendous upside as we have a world class convention center that continues to draw new customers, along with the traditional base of business.

Citywide, business was up this year but, for the most part, it is leisure travel that is really doing well.

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With so much new supply coming online, how important is it to have ownership that continues to invest in the property to keep it relevant and competitive?

It is crucial in order to keep our edge in a crowded luxury marketplace.

Those properties that have become tired and outdated will be put aside for the newer properties and those that are renovating and enhancing their products. However, the most important part of any hotel is always the service culture which is ultimately the ladies and gentlemen who deliver the success.

We just completed a major renovation in 2017, which is a big advantage for us. We will have another phase that will begin in December 2019, which will involve a total renovation of our guest room product. We did the suites in the first phase.

What sets The Ritz-Carlton, Chicago’s suite offering apart from the competition?

Our suites have some of the best views of the city, lake and skyline, if not the best, and are signature to this property like no other property in the market.

What is the secret to being successful in food and beverage at the property and how broad are the catering and banquet facilities?

A great restaurant and strong catering department can really differentiate a property.

With our meeting space, we differentiate ourselves from other properties that don’t have this kind of quality product. Our culinary team prides themselves on their creativity in offering an innovative dining experience. Visitors are able to sample the city’s distinctive personality through our extraordinary culinary scene whether that be in one of our dining destinations or for a traditional holiday brunch. Additionally, our Executive Chef continues to enhance the social offerings with a reinvigorated South Asian menu featuring items from his recent travels and training. We’ve even revamped our food and beverage offerings for meetings with a more mindful approach on wellness.

The property is excelling in the catering and banquet area since we launched the new product. We have turned a very nice facility into an absolutely great one, particularly for our group customer. The way the current space flows is much improved from past years.

The Ritz-Carlton, Chicago lobby (above); the recently refashioned Navy Pier Suite (left)

How much of a focus has been placed on fitness and providing wellness offerings?

Our Spa and Fitness Center is one of our biggest departments we continue to develop. Our fitness facility competes with any independent, particularly since it shares the same breathtaking views of the city, lake and skyline as our hotel suites do. It’s a beautiful facility that has all of the equipment that one would see in a high-end health club.

The wellness and pampering portion of our facility is a big part of a luxury environment and we’re certainly looking forward to continuing to grow it. While this has not been a large part of our business, we’re building on it each year.

What defines a luxury hotel experience today?

Everyone has great brick and mortar, so it’s truly about the personalization of each and every stay. We have a relatively large luxury property with 434 rooms, but we pride ourselves in the ability to personalize each and every stay. The strength of our brand is rooted in our core value of putting people first. Our legendary address has welcomed travelers for over 40 years, and recognizing our guests’ loyalty to the brand and hotel is of great importance.

True luxury travelers have high expectations when they walk into a building and they want the level of service to be top notch. The most important aspect of their stay is that they want to be recognized for their loyalty to the brand and to the hotel.

Is it harder today to forecast when the booking windows have shortened?

Forecasting is becoming more difficult. There are times when we overestimate demand and there are other times when demand exceeds our expectations.

As we continue to evolve and grow in our new space projections are more accurate.

How critical has it been to keep the staff engaged and involved, especially as you introduce a renovated product?

Every day, we have to remember we are only as good as the last experience we delivered. There is so much competition that, if we don’t continue to reinvent ourselves and challenge ourselves to be better, someone else will take that chair away from us.

The ladies and gentlemen at the property have embraced the revitalization. I’m extremely happy with how our team has come together since the renovation and I am thrilled to continue to evolve and grow with them moving forward.

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The Luxury of Truly Being Yourself An Interview with Gul Turkmenoglu, General Manager, The Benjamin EDITORS’ NOTE Gul Turkmenoglu Has The Benjamin experienced assumed her current post in growth this year and what are your January 2017. After beginning views on the state of the New York her career on the opening team City hospitality market? of the Conrad Istanbul and servWe closed 2017 at about 92 pering in a number of management cent occupancy and then focused on positions, Turkmenoglu was prorate growth which we have tripled. moted to Dir ector of Rooms at We have maintained a high occuthe Conrad Cairo. She then relopancy of around 90 percent, so it was cated to New York City to join a year for rate growth and we also the management team of the continue to grow our market share.

Waldorf-Astoria where she spent Next year, we’re looking for more s i x y e a r s . T u r k m e n o g l u a l s o Gul Turkmenoglu balance. Our growth target is going to served as Hotel Manager for ONE be more like 3 to 5 percent, both comUN New York, Assistant General Manager of ing from rate and occupancy.

The Lexington Hotel NYC and, most recently, How do you define the value that Assistant General Manager of the Hudson Denihan brings as an owner?

New York. Turkmenoglu r eceived her B.S. The biggest strength of Denihan is that degr ee in Tourism & Hotel Management they care about their people and product. They from Cukurova University in Turkey and invest a lot into their hotels and The Benjamin her M.B.A. from New York University, Stern is one of their own. They also invest in their School of Business. people so that is why our service is very good.

That leads to the retention of customers.

PROPERTY BRIEF Situated at the crossroads Our brands are very much related. The of culture and commerce, The Benjamin’s strength of Denihan as a company is shown by (thebenjamin.com) Midtown East location the way they pay attention to the details, and makes for easy access to New York City’s top that is a great reflection of what The Benjamin attractions, including Fifth Avenue, Grand does itself.

Central Terminal, MoMA, Rockefeller Center, How critical is it to have a strong suite Park Avenue businesses and more. The hotel offering to appeal to the top clientele you boasts a distinctly residential feel and a large service? array of spacious luxuriously appointed The suite product provides an important suites, inspiring guests to consider it a more differentiation. Service is also a top differentiapersonal pied-à-terre than a hotel. The lux- tor, but having our lovely one-bedroom suites ury hotel is widely known for its innova- is significant. It has been some time since we tive science backed sleep program, offered in renovated, but they’re still well maintained. partnership with author and sleep medicine It’s important, especially to our clientele, expert Rebecca Robbins, Ph.D., the hotel’s because many are from the financial, legal and Official Sleep Consultant. The Benjamin has high-end hedge funds and they need to have r ecently been awarded the honor of NYC space and privacy. landmark status. Designed by famed archiOur suite product is very homey and friendly tect Emery Roth, the neo-Romanesque build- as well. ing is considered one of the premier properties The Benjamin has a strong partnership of “hotel alley” – a stretch of hotels just north with Geoffrey Zakarian for The National of Grand Central Ter minal – and one of Bar & Dining Rooms. What are the keys to Roth’s most r ecognizable and successful being successful in food and beverage and works. The hotel opened in 1927 as the Hotel what has made this relationship work so Beverly and it was purchased by Denihan in well?

1997 and named in homage to Denihan’s First of all, everyone wants to have a profitfounder, Benjamin “Bud” Denihan, Sr. The able operation and we have one. Sometimes, I Benjamin is also home to The National Bar talk to other colleagues and they say that they & Dining Rooms, the award-winning grand keep the restaurant as an amenity. I’m happy to café by leading culinary figure and Chef have a hotel restaurant that is not just an ameGeoffrey Zakarian. nity. We are making good money through it.

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The Benjamin

If we have a healthy business that falls through to the bottom line, it’s easier to keep our relationship with Geoffrey Zakarian healthy as well. Geoffrey helps us with the creation of menus and is also excellent at maintaining quality assurance. We’re going to enhance our relationship further in coming years.

Making sure we have a good foundation and strong teams, be it in the kitchen or at the front of house, and having a strong partner who brings us creativity and quality, has led to this success story.

With shortening booking windows, is it possible to forecast for the business and how hard is it to project accurately?

The large conference business is still possible to project, but for smaller and boutique hotels like us that don’t host large conferences, it is very difficult.

We feel very happy if we get group business for Q1 or Q2, but that is very minimal.

The business is always last minute and, with some high-end business, it goes from day to day, as does some long-term luxury business.

It’s very hard to forecast.

For a property like The Benjamin with its size and intimate feel, is there an advantage in being able to personalize the luxury experience and more deeply understand guest preferences?

Yes. We have 209 rooms and are very intimate. Having many repeat customers is an advantage for us and they are remembered by the team that we have retained, especially at the front desk. It’s a huge strength because retaining guests is much more difficult now since there are new hotels opening all the time and constant renovations.

Other than that, there are two types of luxury right now. One is the classic, five-star product and the other is our category, which offers the luxury of truly being yourself and enjoying luxury as if it were in your own home.

We provide five-star service. Product wise, we are a bit more modern. Technology is also very important because everyone has all sorts of technology in their homes and it’s easy to reach. Luxury hotels have to keep up with that. It’s not a differentiation point anymore, but an essential and expected part of the product.

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An Entertainment Destination An Interview with Mario Kontomerkos, Chief Executive Officer, Mohegan Gaming and Entertainment EDITORS’ NOTE Mario Kontomerkos well as to Louisiana and Korea. The latjoined Mohegan Gaming & est acquisition is in Niagara Falls, which Entertainment in September is another large opportunity for us.

2011 as Chief Financial Officer. As We look to ensure that the company CFO, he oversaw all of the finance is guided in a way that allows for the matters for Mohegan Gaming & sustainability of this tribe for a very long Entertainment’s growing businesses. In time. The thought process that we take October 2017, he assumed the role in this company is very unusual – we of Chief Executive Officer to focus on make decisions for the next generations corporate diversification. His career as opposed to the next quarter. path evolved through various key I’m also responsible for carrying financial, research and analytical out our business in a way that is roles with companies such as Penn Mario Kontomerkos commensurate with the values of the National Gaming, Magnetar Capital Mohegan Tribe. This is probably the LLC, J.P. Morgan Securities, Lehman Brothers and most important thing I do.

PricewaterhouseCoopers LLP. Kontomerkos’ Is there consistency in each of the propexperience also includes service as a consultant erties or are the gaming and entertainment for TPG Capital LLC on the acquisition of Harrah’s offerings customized to the specific market?

Entertainment, the largest leveraged buyout in the There are no extreme differences. However, history of the gaming industry. Kontomerkos holds every market does have different tastes and a B.S. degree from Cornell University. considerations, so we try to customize the gaming and entertainment experiences in a way that best COMPANY BRIEF In 1996, Mohegan Sun opened appeals to the local demographic. This is apparent in Connecticut and quickly became one of the both in the design and in the way we advertise world’s largest casinos. It combined many differ- and handle our direct mail marketing. ent elements, from dining and shopping to profesThere is one major consistency, which is in sional sports and arena-sized shows, into a whole the way we go about interacting with our guests new kind of entertainment destination. Based on and our employees, as well as our vendors. We its success, Mohegan Gaming & Entertainment use an approach that looks at the world in the (mohegangaming.com) has brought this experi- most cooperative and friendly way we can. ence to new markets across the globe including the Is differentiation challenging in the recently opened ilani Resort in Washington State industry? and the Inspire Integrated Entertainment Resort It’s not easy, especially when we’re opening under development in South Korea, which will a new property 7,000 miles away in a remote be the first resort in the world with its own private country with a different language and different air terminal. Each destination is different but all customs and cultures. share the unique vision of Mohegan Gaming & However, we believe strongly in what we’re Entertainment which is to transcend gaming while creating, so we can make it stand out. It’s worth transforming entertainment into a more immer- the effort for us. sive, exhilarating experience.

As you grow and expand into new markets, how critical is it to understand different cultures?

Will you provide an overview of Mohegan This might be the most critical thing we do.

Gaming & Entertainment and how you define We spend a lot of time, money and resources your role? making sure that we fully understand the culture My role involves the oversight of an in a country like Korea. It would be a mistake to organization that started 22 years ago in Connecticut go into a foreign country thinking that we’re going and that is growing rapidly today. It has been to take over and do things our way. This doesn’t a fantastic story for the Mohegan Tribe that has work very well. created an entertainment destination like no other What does work well is spending time trying in a very remote area of the state. to understand the other culture and asking them That spurred other opportunities for growth, to spend time understanding ours. This takes a so they expanded into Pennsylvania. They were lot more time than people are used to spending. then able to take their expertise to Atlantic City and However, we make that investment and we think to the West Coast north of Portland, Oregon, as that pays dividends down the road.

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Mohegan Sun towers in Uncasville, Connecticut (above); Mohegan Sun Arena (Left)

We will hire people that are tasked with making sure we’re not missing something culturally. We also send team members who grew up in Connecticut to all of our properties to ensure that our values and culture are being propagated in other markets.

Will you discuss the investment Mohegan makes in its workforce and how important this has been to maintaining service standards?

It’s important. We invest in many ways.

There is an enormous ongoing effort driven by the fact that the company is expanding so quickly that we must make sure things are standardized.

We make sure that all of our properties meet and discuss what it means to be part of the Mohegan organization and then propagate this via consistent language to make sure that everyone understands.

Is the message well understood about the many positive things the gaming industry does and has the industry done an effective job in making sure this positive story gets out?

It depends. In Connecticut, that story has been told very well. Folks understand that the number of direct jobs created between the two gaming facilities alone in this state is somewhere around 12,000. The direct contributions that the two tribes make to the state has totaled hundreds of millions of dollars per year for several years now.

In other states or countries, where our industry is new, it takes a lot of time and investment to make sure that folks understand.

It’s often helpful for policy-makers from other jurisdictions to come to Connecticut to see what is happening here. When they observe the solid base of employment and opportunity we give people and the economic benefits created by that, they begin to understand what this business is about.

This is primarily an entertainment business and the vast majority of it is non-gaming.

Are you able to enjoy the process and celebrate the wins or are you always looking ahead?

We do take a chance to celebrate, but there is a very strong drive enterprise-wide to be able to create something that is even more special and more worldwide than it already is. We’re having a positive effect on many people so we’re spending time looking to the future.

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VOLUME 42, NUMBER 1

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A Sense of Place An Interview with Sase Gjorsovski, General Manager, The Ritz-Carlton Bal Harbour, Miami EDITORS’ NOTE Prior to his current post, Sase Gjorsovski was Executive Director and General Manager of Turnberry Ocean Colony. He has also served as General Manager for Acqualina Resort and Spa and China Grill Management, as well as Director of Operations for Ian Schrager Hotels – Delano. He received his B.A. in organizational leadership from St. Thomas University.

PROPERTY BRIEF Set along pristine, Sase Gjorsovski white sand beaches and overlooking the Atlantic Ocean and Intracoastal, The RitzCarlton Bal Harbour, Miami (ritzcarlton.com/en/ hotels/miami/bal-harbour) exudes a warm, inviting atmosphere while offering elevated services and amenities. The resort’s location in the exclusive Bal Harbour Village neighborhood offers easy access to boutique shopping, exciting nightlife, outdoor adventure, and a thriving art scene. Guests will discover that everything they desire is accessible, from South Florida’s finest flavors at the newly revamped Artisan Beach House to Core Fusion and Yoga classes at Exhale Bal Harbour Spa. With beautiful beach views from the floor-to-ceiling windows in each guest room and suite, the property also offers a European-edged outdoor heated pool as a worthy alternative to the Atlantic.

Will you discuss how The Ritz-Carlton Bal Harbour, Miami is positioned in the market?

We offer spacious suites and suite-style guest rooms. Our suites are fully equipped with kitchens and we are currently refreshing our product.

All of our guests enjoy residence-style luxury and intimacy with just two rooms per floor.

We leverage our proximity to the Bal Harbour shops and will continue to do so as they undergo another renovation at the mall.

We also offer strong wellness offerings and partner with Exhale Spa on our wellness programs.

We consistently create new programming and implement new partnerships to stay relevant within the Miami hotel scene. For example, we’re currently hosting a pop up with a New York-based swimwear and resort wear brand through the end of this month, offering the only brick and mortar shopping experience for that brand in Florida.

The property is currently making a major investment in its room and suite offering. What can guests expect from this new product?

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Based on feedback on the previous guest rooms, we have made some advancements to better cater to our guests. The room enhancements offer an elevated guest experience. Our new guest room and suite design evokes the essence of the sea and creates a more definite sense of place.

The new design is brighter, lighter and reflects the hotel’s prime waterfront location and the floor-to-ceiling windows offer impressive oceanfront views.

How broad is the suite offering?

The hotel has very spacious one- and two-bedroom suites. We also have a 2,800-square-foot Presidential Suite with ocean views from every room. This unit has a private movie theater, a piano and gorgeous living and dining areas.

What technological advancements will be added to the rooms and suites?

We always enhance the platforms. Every room will have a new high-tech TV that will enable our guests to stream content directly through their Netflix or other streaming accounts.

This means we can provide guests with more of the entertainment that they desire, not only what we’re offering.

Have there been changes made to the restaurant, Artisan Beach House, and what are the keys to being successful in food and beverage at the property?

We r e c e n t l y r e v a m p e d t h e A r t i s a n Beach House design and menu offerings to be more seafood centric. This will align it with the property location, which is right on the water.

There are also a number of refreshments like fresh pressed juices and light options on the menu that reflect the hotel’s dedication to wellness.

There are many restaurants we compete with locally. We are careful to follow the trends to ensure that we are aligned with customers’ expectations. We have seen great compression within the local market and the hotel guests are enjoying their F&B experience here.

How broad are your meeting and banquet capabilities?

We offer one of the best meeting room spaces in the market featuring floor-to-ceiling windows facing the ocean. We can accommodate a range of meetings and events for anywhere from 12 to 250 guests.

Ocean View One Bedroom Suite (left) and an exterior view of the property (above)

We also offer creative team building breakouts, including guided meditation breaks, as well as excursions on a yacht that incorporate dolphin and manatee watching.

Where do you see the Bal Harbour/Miami market today?

The market has increased inventory over the past year and has become very competitive.

As a hotelier, I have to stay in tune with what is happening, but also focus on service delivery and the experience we’re delivering. It is very important for us to consistently deliver the highest service standards for all of our guests.

Offering featured shopping experiences, especially in our area, is an important way we cater to our clients, regardless of what is happening with the market.

Does success for the property start with the focus on employees?

It does start with employees. Our culture is employee-centric. Our ladies and gentlemen are our most important resource in the delivery of service.

Happy employees will deliver what is expected by the customers, but I still must maintain a balanced scorecard to ensure that all the key success factors for this hotel are met. I don’t think any single focus would go well without the other.

As the business is becoming more dynamic, we must keep an eye on the ball in all aspects including financials, employee satisfaction, and guest satisfaction – all three of them have to be balanced.

Is it more challenging to forecast for the business today?

This is more difficult today. Customers are becoming more educated and the booking window has been reducing as well. Even groups are booking within a shorter window than we had previously experienced.

However, the enhancement of technology and ensuring we use all the platforms out there can enhance our forecasts. We continue to educate ourselves and introduce new platforms to help forecast meetings and transient business to ensure that we are ahead of the curve.

With the financial pressures on the business, is the general manager role still about hospitality?

The success of the business is about balance.

As the market has become more competitive in Miami, it’s important to emphasize certain aspects of the business, but it hasn’t been difficult for me to ensure that the core values and culture of the Ritz-Carlton brand remain intact.

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VOLUME 42, NUMBER 1

Team, Guests, Owners An Interview with Ashish Verma, Vice President Luxury Division for Dream Hotel Group overseeing The Chatwal, New York EDITORS’ NOTE Ashish Verma was previously with the Lowell Hotel in New York, where he served for seven years as General Manager. Prior to the Lowell, he served as General Manager at the famed Windsor Court Hotel in New Orleans and has held senior positions with luxury hotel companies including Orient-Express Hotels, Millennium Hotels, Hyatt International Corporation and Oberoi Hotels International. He earned a Bachelor of Arts degree with honors in Ashish Verma political science and economics from Punjab University in Chandigarh, India; a graduate degree in Hospitality Administration from the Oberoi School of Hotel Management in New Delhi, India; and a Master of Business Administration from IMHI Cornell-ESSEC in Paris, France.

PROPERTY BRIEF Located in the heart of Manhattan on 44th Street, The Chatwal, New York (thechatwalny.com) is one of the most centrallylocated luxury boutique hotels. A landmark building by architect Stanford White, and designed by the famous Thierry Despont, this 76 guest rooms and suites (many with terraces) iconic jewel boasts numerous custom amenities, such as Georg Jensen designware, Christofle silverware, Bernardaud porcelain, Assouline books and Asprey amenities.

All rooms are state of the art, with TOTO washlets, Intelity iPads, and custom Alpaca throws. The hotel offers Mercedes house car and butler services for all guests.

What have been the keys to The Chatwal’s leadership in the market?

Team – Our dedicated team members are handpicked for not only their talent, but also for their passion, attitude and commitment. The successes of The Chatwal, New York are primarily attributed to my most amazing team. They inspire and wow me each day and consistently exceed my expectations.

Guests – Our loyal guests are like an extended family. The observations they share are a source of constant learning for us. Since they appreciate and feel connected to our caring for them, we are privileged that they spread the word about the joy they have received from the experiences that we have helped create to serve their wishes.

Owners – The trust, confidence and the autonomy extended to us by our ownership is a vital piece of the mix. Without that we would VOLUME 42, NUMBER 1

not be able to make the tremendous changes and improvements that allow The Chatwal to remain a beacon among the finest luxury boutique properties in the world.

When you evaluate The Chatwal’s competitive set, are you focused primarily on other hotels in your location or do you look at properties throughout the city?

Our competitive set comprises of comparable luxury properties around town from both uptown and downtown.

Will you highlight the strength of the suite offering at The Chatwal?

The themes we have created for our suites, and the fact that we have large terraces, are a big advantage. These are not mere balconies, but spacious terraces ranging from a minimum of 100 square feet to 1200 square feet. The amenities, touches, details, views, styling and ambience of our suites make our suites the most unique in New York.

Many hoteliers mention the challenges in regard to food and beverage in a competitive city such as New York. What are the keys for a hotel to be successful in food and beverage and would you highlight The Chatwal’s offerings?

Credit for this goes to our Chairman, Mr. Sant Chatwal. He is visionary par excellence and has tremendous experience in successful food and

The Chatwal New York Mezzanine Bar (above); Zen Suite private terrace (left); exterior (below)

beverage operations. It is his experience, relationships and business acumen which makes our food and beverage operations what they are.

How much of a focus is wellness for The Chatwal and will you provide an overview of your spa facilities?

We look at this not just as an amenity or a feature but as a way of thinking. Wellness is an aspect we embody beyond the beautiful treatment rooms, a small pool, Jacuzzi, manicure-pedicure room and smart gym. We have partnered with Eddie Stern as our yoga and meditation guru. Also, we offer several opportunities to relax, unwind and recharge with technology thru apps and in-room iPads. Our entire team is very committed to wellness so, in real terms, wellness is an important part of our culture.

Is the property primarily focused on small, high-level meetings and how broad are The Chatwal’s meeting and banquet capabilities?

While we do have a larger banquet space which can accommodate up to 120 guests and a more intimate one that can accommodate up to 45 guests, we focus on intimate groups, both on the social and corporate sides. We believe in personalized attention for large family getaways, board meetings, special occasions and celebrations. This is a natural draw for us with our location, features, amenities and services.

The Chatwal places a major focus on training its workforce and investing in its employees. How critical is this in retaining talent at the property?

How you prepare in peace is how you serve in war. Training is central and one of the most important aspects of our culture of excellence. We have our own Chatwal University program and also detailed SOPs, new hire orientation, consistent communications and an environment that supports constant growth and learning beginning with me; I am always learning and a lifelong student. So, training is constant.

What advice do you give to young people interested in building a career in the hotel industry?

Follow your heart. Don’t consider what is trendy, or what the expectations of your peer group, family or the career officer at the college might be. Real fulfilment and joy is in what your purpose is.

That is higher and more satisfying than a label, title or a badge. Feel happy from within for what you choose – and you will have the right career choice. Hospitality should be such a choice.

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Recreating The Colony An Interview with Thomas List, General Manager, The Colony Palm Beach EDITORS’ NOTE Thomas List assumed his current position in 2018. As a third-generation hotelier, List grew up in New York City, living and working in hotels his father managed. At age nine, he began washing pots and pans in the hotel’s main kitchen and continued to hold a hotel job every summer from then on. List began his car eer at the Plaza Hotel in New York City and has since managed upscale, boutique Thomas List properties including The Inn at Little Washington, Virginia; Woodstock Inn and Resort, Ver mont; Congr ess Hall and Star Inn in Cape May, New Jersey; and Williamsburg Inn, Virginia, among others.

PROPERTY BRIEF As guardians of a tr easur ed icon, The Colony Palm Beach (thecolonypalmbeach.com) faithfully pr eserves its legacy of gracious hospitality while ensuring continued r elevance to a new generation of moder n, well-traveled and discerning guests. The 89-room property provides unique, curated offerings for guests of all ages delivered with best-in-class ultraboutique service. Much more than a hotel, The Colony is a state of mind – a place to connect meaningfully and authentically with one of the world’s most storied destinations, steps from both Worth Avenue and the Atlantic Ocean. Aware of The Colony Hotels’ singular place in the hearts of long-time Palm Beachers, the hotel is dedicated to maintaining a rich tradition of culinary excellence in a vibrant social setting that is both welcoming and refreshingly unpretentious.

Will you discuss the history and heritage of The Colony Palm Beach and how the property has evolved?

The Colony is 71 years old and has had a presence on Palm Beach in an active way for many years. Anchoring Worth Avenue and just steps from the beach, The Colony holds one of the best locations for a hotel property on the island. Our location is unique and unparralled.

The ’40s, ’50s and ’60s were the heyday for Palm Beach and its thriving social scene.

The Colony was a very active player in what was happening on Palm Beach, with a large 106 LEADERS

number of international guests as well as the ‘Rat Pack’ crowd. The bar and restaurant scene was big – a few of our employees with a long history on Palm Beach and the hotel have fun stories about frequent visits from Frank Sinatra, Marilyn Monroe and JFK. The legacy of our guests and The Colony Palm Beach is very interesting and one we are proud of.

The hotel has great bones, a great history and a bright future ahead, something I’m happy to be a part of. Having managed historic properties that are individually owned my entire career, I’m looking to emulate The Colony’s history of gracious hospitality as we work on our future plans. Now offering live music seven nights a week in The Restaurant at The Colony, our focus is to pay homage to the property’s 70-plus years of entertaining Palm Beach society and guests alike.

How important was it to engage the employees as you assumed your role at the property?

The hotel had gone through a year of transitioning prior to my arrival, and I was aware that it had been a year of more change than progress.

Verbally conveying a strong sense of mission and hospitality as well as service first and foremost, I wanted everyone to know what the expectations were and are. Through time, we unrolled a plan for the processes that would aid in making the changes to allow us to elevate not only our systems but also our levels of service.

In a market with gr eat food and beverage offerings, what is the key to being successful in this area on Palm Beach?

It’s important for The Colony to stay “culinarily centric,” as the demographic on Palm Beach is very social and active.

Staying ahead of the curve is essential in terms of our product and service, as well as the styling of food down to plateware and the design aesthetic of The Restaurant.

We are focused on sourcing local products and have recently added an on-site herb garden that provides fresh ingredients for our c u l i n a r y offerings. We resource the garden for recipes including our soups,

The Colony Palm Beach patio and lawn (above): poolside at The Colony Palm Beach (left)

sauces and t h e h e r b b u t t e r w e s e r v e with our fresh bread, as well as cocktail garnishes.

Is there a consistent feel from room to room within the property and how valuable is the suite product that The Colony offers?

We will be redefining our suites to differentiate them from the standard rooms.

Wi t h 1 7 s u i t e s a n d s e v e n Vi l l a s , w e ’ r e currently in the process of upgrading the amenities for those guest accommodations.

Additional upscale offerings and services associated with the guest suite and Villa experience will allow us to provide a stay that is exceptional.

Is there a focus on the spa and wellness side of the business?

In recent years we have refocused o u r ef forts specific to spa and wellness offerings. All complimentary to our guests, we currently provide fitness classes every day of the week in our solarium. Just a short walk from the hotel, we also have a partnership with Palm Beach Fitness, a fully equipped fitness center. A s f o r s p a and beauty, we offer in-house massages, manicures and blowouts from a few local salons on the island. If a guest is looking for additional treatments, we can also set up appointments and provide transportation to any spa or salon the guest prefers.

The hotel has complimentary beach cruisers, an outdoor pool and new ‘healthy choice’ menu options such as smoothies to accommodate our health-conscious guests.

We focus on the things we do have. In our quest for excellence, we have become very centered on the service in-house, at the pool, as well as our restaurant, all of which we aim to deliver with the best-in-class ultra boutique service.

How important is it to have owners willing to invest in the property with a long-term vision?

Without a well-focused owner, we would not be able to achieve our dream of being the best hotel on Palm Beach. It’s not to cast doubt on how other properties operate, but I feel fortunate that the direction of this hotel is to bring The Colony Palm Beach to a point of recognition and to a place where all our staff can be proud and our guests can experience something unique and memorable.

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VOLUME 42, NUMBER 1

A Long-Term Focus An Interview with David Chase, Managing Director, Omni Berkshire Place EDITORS’ NOTE David Chase has worked in the hospitality industry for more than 25 years, beginning his career at The Ritz-Carlton San Francisco. After relocating back to the East Coast and working in Boston, he settled in New York to open the first W Hotel in New York City. Since then, Chase has held management positions at prestigious hotels including The St. Regis, The Ritz-Carlton, as General Manager of Trump SoHo, and, most David Chase recently, as General Manager of The New York Palace.

PROPERTY BRIEF Conveniently located on 52nd Street between Madison and 5th Avenue in the heart of Manhattan, Omni Berkshire Place (omnihotels.com) is near Central Park, Times Square, Rockefeller Center and Radio City Music Hall. Guestrooms and suites were designed with the feel of an Upper East Side residential townhome, while keeping them spacious and larger than most Manhattan accommodations. The property boasts 398 luxury guestrooms including 45 suites; a 17th floor terrace sundeck overlooking midtown Manhattan; 24-hour in-room dining; a state-of-the-art fitness center; 7,000 square feet of function space and a 24-hour business center.

What are your views on the state of the New York City hotel business and has Omni Berkshire Place achieved growth in this market?

After several years of the New York market retreating a few points, it has grown a few points this year. Amazingly, this market continues to add room supply, yet occupancies are still holding at 87 percent this year across the market.

We enjoyed some rate growth this year after rates had suffered over the past years due to the new supply. Rate has finally turned the corner this year.

This increased rate has led to increased profitability, which has made for a positive year for us.

Is your competitive set primarily located in Midtown or do you also compete against other parts of the city?

When it comes to corporate business, we compete geographically in this immediate 108 LEADERS

neighborhood. However, with weekend business, all bets are off. The city has become geo-blind for leisure travel. There was a time when leisure travel was based on location, but it has now blended.

The weekend landscape has changed. Customers now have many options when it comes to price range and this has caused the weekend rates to continue to struggle when compared to business travel.

How is Omni Berkshire Place positioned in the market and is the Omni brand well understood?

People know Omni Berkshire Place as an incredible location for a business hotel as well as an ideal location for our leisure guests. Though we have more than 400 rooms, there is a townhouse feel that people enjoy and that makes it feel like a home away from home.

As a brand, we have many convention hotels such as those in Dallas, Nashville and Louisville. We have others that are more similar to us in cities such as San Francisco and Chicago. We also have some unbelievable resorts in California and Arizona.

We’re currently building an 1,100-room convention hotel at the Boston Seaport which will have the biggest ballroom in Boston.

Our customers may know us in different ways, but those who are loyal to us are very loyal. They come to us because our loyalty program is experiential, not points based. They get special treatment when they’re here with complimentary beverages, WiFi, and pressing that they use every stay while still earning free nights for the future.

Are you happy with where the property stands today and are there changes planned?

As a GM, it is easy to come up with many millions of dollars we’d love the owners to spend on the property. However, Omni Berkshire Place has been well kept by a very engaged and committed owner. A room renovation is foreseeable in the not too distant future, we are updating our lobby next year and we have just redone our restaurant.

In a 92-year-old building, there is also a necessary commitment to keeping the back of house running and we spend a lot of money doing that.

The Apartment Penthouse dining room (left) and living room (above)

We’re lucky to have ownership that is completely about the long-term. They keep the mechanics and physical condition of the building in excellent shape because our brand owns and operates its hotels as they have here for 23 years. It’s a legacy long haul here.

Do you look at the restaurant as an amenity or is it a profit generator?

Food and beverage in hotels, in a perfect world, would be its own entity. To some extent, it’s an amenity but, in a luxury hotel location such as ours, I need to have a full-service, threemeal restaurant.

Over the past two years, we’ve provided our customers with an appropriate food and beverage experience for this luxury hotel. It’s not a driver of profit, but it’s doing well and has shown an excellent increase in its second year. We’re very pleased with how it has done for us.

How do you manage projections today with so many different booking channels and a shorter window for bookings?

We rely on firms like CBRE when it comes to estimates for the future, which are often driven by supply. On the demand side, there is still a lot of guess work. Data exists, but future projections are still often wrong.

For an individual hotel, the tools for projecting the relatively short term – zero to nine months out – are excellent. All the hotels share data with the tools we subscribe to that offer round rolled-up projections for the market.

There are also great optics on the shorter window. However, I can’t say with any accuracy what is going to happen in New York in 2020 other than at the convention level where the truly big hotels lay that business down.

How critical has it been to build a stable team at Omni Berkshire Place?

We just had our annual employee satisfaction survey that reflects the best scores this hotel has ever achieved. Similarly, we’re having the greatest year we’ve ever had with customer scores as well.

These are the report cards that determine if the leadership team is getting it right. The financials are the other metric on which we are judged.

I could not be happier with the results of the work we did over the last few years that have led to very little turnover and having the right people in all the right jobs.

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VOLUME 42, NUMBER 1

Understated Elegance An Interview with Alex S. Furrer, General Manager, The Setai, Miami Beach EDITORS’ NOTE After beginning his career in the banking industry in Switzerland, Alex Furrer held a number of positions in the hospitality industry in Switzerland before joining The Setai, Miami Beach in 2010. He served in a variety of roles at the property before being named Resident Manager in 2013 and then General Manager in 2015. Furrer completed the General Managers Program, Hospitality Administration/Management, from Alex S. Furrer Cornell University.

PROPER TY BRIEF Bespoke experiences a w a i t guests of The Setai, Miami Beach (thesetaihotel.com). Positioned in the heart of South Beach’s historic Art Deco district, The Setai exudes a refreshing blend of simplicity and understated elegance. The Setai, a name inspired by the Bahasa Indonesian phrase for “South Beach” inspires a rich heritage of multicultural influences and Far Eastern indulgences. The Setai provides a perfect blend of discreet personalized service, privacy and tranquility. Guests enjoy exclusive access to The Setai beach, three iconic temperature-controlled swimming pools, and The Spa at The Setai. The Setai’s exceptional dining experiences by Executive Chef Vijayudu Veena include Jaya, which boasts standout dishes from Thailand, Korea, India, China and Japan. The Ocean Grill offers Mediterraneaninspired dishes and specialty drinks, while The Bar & The Courtyard caters to those who savor light Asian-inspired fare for lunch or simply want to relax with coffee or a cocktail.

What have been the keys to The Setai, Miami Beach maintaining its leadership position in the market?

I’m fortunate to have been here since 2010 and to have worked with the original team and to be able to see and understand their vision.

So, although The Setai has gone through ownership and management company changes, we have been able to maintain our roots and our original approach that has driven the property’s values. This has helped us remain consistent and successful, and we continue to be the rate leader in the market.

How important is it to have an extensive suite offering at the property?

VOLUME 42, NUMBER 1

It’s crucial. Our profile would be entirely different without the suite component. We have more than 50 suites in our tower building, including a 10,000-square-foot penthouse.

Thanks to this, we are able to offer our Art Deco studio suites at a price point that enhances the overall impression of the value our clients get from their accommodations.

What are the keys to being successful with food and beverage and is culinary more of an amenity or does it drive profit?

Being a leader in the market, it is important for us to offer an attractive food and beverage program especially in a trend-setting city like Miami. We certainly expect our food and beverage program to drive profit as well. Our Executive Chef has been with our property for 10 years, so he knows the roots of this place.

Vijayudu Veena was promoted to Executive Chef a year ago after having served as our Executive Sous Chef for the past few years.

He has learned from the best chefs from Asia and Europe. He has a lot of knowledge and experience and keeps us in the loop when it comes to the culinary experience. He has also spearheaded an amazing brunch offering which has reached institutional status in the city.

The Ocean Grill, formerly known as The Pool & Beach Bar, was rebranded two years ago and it is now a hot spot that is packed yearround. It is the only upscale beachfront dining experience in South Beach and very popular.

Jaya is our featured restaurant which we renamed three years ago as a tribute to Jaya Ibrahim, our interior designer, who passed away the same year Jaya opened. The restaurant is the best we have ever seen and includes PanAsian dishes inspired by the historical silk and ancient spice trading routes.

With such an emphasis on health and wellness today, has the spa been a major focus?

The Spa, like our hotel, is boutique with four breathtaking treatment rooms overlooking our signature pools. Generally, wellness is important to The Setai and we’ve placed a focus on creating programming that enhances the guest experience in this area. The Serenity Path on the way from the Courtyard to the pools has a peacefulness to it, with lounges discreetly located and ideal for activities like

The Setai, Miami Beach pool (left); a one-bedroom suite (above)

meditation. On the weekends, we offer complimentary yoga on the beach for our hotel guests and residents.

Is The Setai’s event and banquet space primarily positioned for high-level and intimate events or does it also cater to broader social gatherings?

Our intimate meeting space is best catered to C-level meetings. We host a number of social events throughout the year, although we are particular about the brands we work with and ensuring like-mindedness.

Banquets are not considered a major revenue area because we believe the privacy of our guests and the luxury experience hold the most value, and we purposefully restrict how much business we do in this space.

How much of a strength is The Setai’s location?

Much of our success comes from being in a top location and this keeps us strong in our positioning. Being located in South Beach, steps away from Lincoln Road and the convention center, is important for our guests who want to explore restaurants, nightlife, and the scene in the city.

Over the past few years, we have also seen North Beach develop as a fantastic location that we can benefit from.

How strong is the South Beach hotel business today and is the market experiencing growth?

There has been growth over the past 12 months. We are very happy with the development over that period. Many of the new properties that opened made a mistake by dropping rates to drive occupancy. We always held firm on our price strategy which allowed us to attract the top clientele in the city.

How important is The Setai’s investment in training and retaining talent?

Very important. Especially in a highly competitive environment, it is crucial to remain an attractive employer for the best talent in the market. This includes a commitment to a strong training program and rewarding loyalty.

With 8 contracted quality assessments a year through LHW and Forbes, we receive constant feedback on areas we can improve, which also allows us to focus our training efforts.

We’re cultivating a firm management style which gives our talent confidence and allows them to continue to grow in their goals to be strong leaders in the luxury hospitality industry.

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LEADERS 109

The Personal Touch An Interview with Philip L. Truelove, General Manager, The Greenwich Hotel EDITORS’ NOTE Born in Colombo, Sri Lanka, Philip T ruelove began his car eer as Reception Manager at the Ritz Hotel in London in 1970. He later held managerial positions with the Connaught Hotel, The R i t z - C a r l t o n i n Wa s h i n g t o n , D.C., Chateau Mar mont, and The Mercer Hotel. He owned and operated The Island Inn i n Monhegan, Maine. Truelove r e c e i v e d h i s M . B . A . i n H o t e l Philip L. Truelove Administration in the U.K. PROPER TY BRIEF The Gr eenwich Hotel (thegr eenwichhotel.com), located in New York’s Tribeca district, has 88 rooms and suites with furnishings from hand-loomed, Tibetan silk rugs to English leather settees.

All beds are Duxiana and bathrooms ar e designed in unique patterns of handlaid M o r o c c a n t i l e o r I t a l i a n C a r r a r a marble. Modern room features include highdefinition flat-scr een TVs, iPod docking stations and complimentary wireless Internet.

Hotel features include a drawing room and courtyard, Locanda Verde restaurant, Shibui Spa, as well as indoor pool and gym facilities.

The Gr eenwich Hotel is a member of The Leading Hotels of the World.

Where do you see the New York City hospitality market today and has this been a growth year for the property?

It has been a growth year – New York is a very resilient market. In fact, occupancy is surging even though there are so many new hotels. Throughout recent history, additional hotel rooms in such numbers usually cause a slight decrease in occupancy but, at this point, everyone is doing well which is a very positive sign, and I don’t think there is any reason for it to change.

Is The Greenwich Hotel’s competitive set location based or do you look across the city?

We do look across the city. We have to consider our neighbors in Lower Manhattan, which are direct competitors, but we also look at Midtown where the five-star hotels traditionally have been and continue to be.

We have two primary competitive sets as a result – those nearer neighbors and 110 LEADERS

those hotels in Midtown. This gives us a better picture of occupancy, average rate and RevPAR. Are you more focused on driving rate or occupancy for the property?

With us, it’s a balance of both.

We d o n ’ t s a c r i f i c e r a t e t o g e t occupancy. We certainly like to see an increase in occupancy, but it has to be at a similar or improved average rate. There is no benefit for us to have a high occupancy and a lower average rate.

Are you happy with the state of the property and are there changes on the horizon?

We’re very happy and we continually work to improve and update, and technology is one thing that we have to constantly review and monitor for the future.

The advance of technology is relentless and reflects the world we live in. We tend to look cautiously at new developments and sometimes I have to laugh because so many people are calling us to say that we need robots. I’m not quite there yet; this is still frightening to me!

The Greenwich Hotel emphasizes the personal connection with guests. How critical is it to make sure that the focus on technology does not take away from the personal touch?

It’s essential. So much of the technology is about texting and messaging and allowing people to check in without going to the front desk and to ask questions without a face to face conversation. This truly takes away so many points of personal contact with the staff, who will be looking after them.

I’m very wary about taking away that personal contact. Much of our success is that so many of the staff have been here since the hotel opened and there should be a close connection between those who stay here and those who work here.

How important is it to have owners that continually invest in the property and have a long-term vision?

It’s incredibly important because, when we work toward the long-term, it’s so much more effective than taking short-term steps.

This was evident to us when the hotel opened in 2008, which was a truly difficult time, and

The Grenwich Hotel drawing room (above) and exterior (left)

we agreed that we would look toward the long-term – we didn’t sacrifice rates or do anything drastic to gain business but just continued in a positive fashion.

We offered the service we planned to, in the manner that we intended to and, in the end, the results were exactly what we wished for.

You have found a successful partnership with the food and beverage part of the business. What is the secret to driving profit in this area?

We’re very lucky to be working with a very professional company that is so very good at what they do. As I was growing up, hotel restaurants were considered a necessary amenity and profit was not the driving factor. Now, one wants to provide an excellent dining experience, so to work with a company that is a professional in the field and that can provide that experience is a huge benefit for the guest and, as a company in its own right, it has to run a successful business which provides a profit.

The Greenwich Hotel has a strong spa offering. Is this an area where you drive profit or is it more of an amenity?

The main intention was, and is, to provide a great amenity for our guests. It certainly is a luxury for an 88-room hotel to have a swimming pool, a big gym and a spa. This has proved to be a huge asset for the hotel during what would otherwise be quieter times such as weekends and during holiday periods.

The spa is also a great asset for our neighbors and now has a very loyal following.

As time has passed, we have found that Shibui Spa has continued to be a great amenity for the guests and, at the same time, a profitable one.

How important is it for young people entering the hospitality business to take the time to learn all aspects of the business in order to build a sustainable career?

Unless one understands the business they’re running, and that can only be done by working through the various departments in the hotel, they won’t be effective as a leader. It’s easy to forget how much of a challenge it is to get the rooms clean, for example. One has to put oneself in the position of doing each of the jobs and the refore understand exactly what is involved.

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VOLUME 42, NUMBER 1

Achieving More Through Corporate Trade An Interview with Elizabeth A. Topazio, President and Chief Legal Officer, Active Travel EDITORS’ NOTE Elizabeth Topazio owned and/or managed by its hotelier is President and Chief Legal Officer clients (owners, REITS, management of Active Travel. She has more than companies, asset managers, etc.).

25 years of experience structuring How do you define the value corporate trading transactions with that Active Travel provides for its travel suppliers (hotels, airlines, clients? rental car companies, and cruise Active Travel customizes corpolines) and corporate travel purrate trading transactions to deliver the chasers so that each may achieve additional value desired by each cliadditional value through corpoent. Statistics show most corporate clirate trading. Prior to joining Active ents booking hotel stays are looking in 1994, Liz Topazio was an M&A to realize cash savings, while at the associate at Orloff, Lowenbach in Elizabeth A. Topazio same time, hotelier clients are lookNew Jersey from 1992 to 1994, and ing to maximize revenues and increase at Dechert LLP in Pennsylvania from 1988 market share. While these benefits may seem in to 1992. She’s a member of the New Jersey, conflict, through corporate trading Active Travel New York and Pennsylvania bars and gradu- can deliver the additional value desired by each ated from Villanova University Law School in of them. For instance, many corporate clients 1988 with a J.D., cum laude, and Georgetown hold trade credits issued by Active International, University, Edmund A. Walsh School of Foreign while many hotelier clients have received a Service with a B.S.F.S., magna cum laude. She commitment from Active Travel to make cash participates in a variety of charitable endeav- bookings in their hotel properties. When Active ors and is on the Advisory Board for Animal Travel accepts a client’s trade credits (in lieu of Alliance of New Jersey. cash) as partial payment for bookings at hotel properties owned or managed by its hotelier COMPANY BRIEF Active Inter national clients, and then Active Travel pays the hotel (activeinternational.com), the global leader in properties 100 percent in cash for such bookcorporate trade, consults with Fortune 1000 ings, it delivers the value desired by each. companies on ways to leverage their enterprise assets, typically excess consumer packaged goods, real estate, and capital equipment, to purchase pre-budgeted expenses like media, retail marketing, events and hospitality, freight and logistics, and LED lighting and displays.

Founded in 1984, Active International is based in New York, has over $2 billion in gross trading volume and has offices in 14 countries.

How do clients make bookings?

For group stays (meetings and/or events), since hoteliers are looking for new market share, Active Travel only books “new” group business (of course Active can book repeat stays for any corporate client initially cleared as new business). Clients and/or their agents select hotel properties (owned or managed by hotelier clients) from Active’s Travel Portfolio. Once selected, and prior to sending any requests for proposals (“RFPs”) to any selected hotel property, Active Travel pre-clears the proposed group with each selected hotel property to determine if the booking would constitute “new” business to it. Clearance usually takes no more than a business day. Once cleared, the client or its agent can send its RFP directly to the hotel property (including via Cvent or a national account manager), or Active Travel can also forward. Active Travel will also make introductions, if and as needed.

Additionally, since Active Travel charges no commissions or fees for its services (and there is never any obligation to book any hotel property), any booking commissions customarily paid by hotel properties will continue to be paid to our client’s agents. In rare instances, corporate trading transactions with the hotelier client

Statistics show most corporate clients booking hotel stays are looking to realize cash savings, while

Will you discuss Active Travel’s services and solutions?

Active Travel is the travel and hospitality division of Active International, a global leader in corporate trade. It is comprised of a team of experienced corporate traders who are also travel professionals, committed to delivering additional value to both travel suppliers and purchasers through corporate trading. Active Travel is not a travel agency. Rather it maintains a unique closed travel distribution channel of clients (travel suppliers and purchasers) who have entered into corporate trading transactions with it. With respect to hotels, this means it only makes available for booking by its corporate clients and their agents those hotel properties 112 LEADERS

at the same time, hotelier clients are looking to maximize revenues and increase market share.

While these benefits may seem in conflict, through corporate trading Active Travel can deliver the additional value desired by each of them.

VOLUME 42, NUMBER 1

In addition to shifting new market share and maximizing revenues into their hotel properties, as discussed above, all transient bookings made

by Active Travel’s reservation center are booked on a non-commissionable basis, delivering lower booking acquisition costs and higher revenues.

may provide for non-commissionable rates. In such cases, Active Travel will advise the client/ agent in advance so they can take this into consideration when evaluating whether to book.

Of course, clients continue to earn any brand loyalty points when booking at hotel properties in accordance with each loyalty program’s rules.

Transient stays are booked by Active Travel’s onsite reservation center.

Are the rates competitive?

To maintain the integrity of the process and assure clients they are getting competitive rates, Active Travel never negotiates with hotel properties on behalf of clients. With respect to group bookings, clients and/or their agents negotiate all rates, terms, and concessions (and makes site inspections) directly with each hotel property as they normally would. Additionally, because under the corporate trading transactions hotel properties are being paid 100 percent in cash and gaining new market share, they are very competitive and motivated to win the business. For transient stays, the applicable rate is the lowest prevailing rate available from the hotel property to the general public at the time of the reservation request.

If the hotel is getting 100 percent cash, how does the client use trade credits?

For most of its group clients, Active Travel implements trade credit usage after they stay and pay the hotel property by redeeming for cash the agreed upon amount of trade credit usage. This allows the client and its agent to negotiate and enter into a group contract with the hotel property that does not reference trade credit usage. Concurrently upon a client entering

into a group contract, Active Travel enters into an event authorization with them that sets forth the costs eligible for trade credit usage, i.e., room rate costs, and the percentage amount of such costs that Active Travel will accept in trade credits (in lieu of cash), i.e., 25 percent of room rate costs payable in trade credits, with balance paid in cash.

Upon the client (or hotel property) providing Active Travel evidence of payment for the group stay, the agreed upon trade credit usage is implemented by paying the client a lump sum cash payment (and reducing their trade credit balance) by the agreed upon trade credit usage amount.

While this is the method preferred by most clients, Active Travel also can customize the process to be “payment agent” and accept a cash and trade credit payment directly from the client. From there, Active Travel will pay the hotel property 100 percent in cash in accordance with the group contract. With respect to transient bookings, they are booked with Active Travel’s onsite reservation center which allows for the use of trade credits at time of booking, while paying the hotel property 100 percent in cash. The guest will be provided with a confirmation indicating that room rate, taxes and resort fee, if applicable, have been prepaid in advance by Active Travel. Upon check in, the guest will have to provide a valid credit card only to cover any incidental charges.

What costs are payable in trade credits?

Each corporate trading transaction with hospitality clients is unique. In all cases, however, room rate costs are partially payable to

Active Travel via trade credits. Depending on the corporate trading transaction with the hotelier client, trade credits may also be used to pay Active Travel for group banquet food and beverage, meeting rental costs, daily resort fees and other costs. Clients always know up front (and in the event authorization) when a selected hotel property from Active’s Travel Portfolio includes costs, other than room rate costs, partially payable to Active Travel with trade credits.

How can clients that don’t own trade credits participate?

Active Travel can deliver the same amount of value to clients that may not own trade credits.

In fact, Active Travel has many clients that enter into corporate trading transactions that do not include the issuance or use of trade credits.

What additional value do hotelier clients receive?

In addition to shifting new market share and maximizing revenues into their hotel properties, as discussed above, all transient bookings made by Active Travel’s reservation center are booked on a non-commissionable basis, delivering lower booking acquisition costs and higher revenues. Additionally, Active Travel’s experienced travel team acts as a no cost extension of each hotel property’s sales department to market and promote their property to Active Travel’s clients as a new closed distribution channel. Of course, the hotel property also gets the trading benefit promised in the underlying corporate trading transaction as discussed above.

Ultimately, corporate trading is a win-win business for everyone involved.

•

“I plan quite a few events for my company and work with Active on a regular basis. I very much enjoy working with Active as they are extremely prompt in responding to my requests, they have stellar customer service and having the ability to negotiate directly with the hotels, I know that I am receiving the best value on behalf of my organization. They are always helpful in making my events seamless.”

-Breanna Clemens, Digital Trends VOLUME 42, NUMBER 1

LEADERS 113

Specializing in Luxury Travel An Interview with Ninan Chacko, Chief Executive Officer, Travel Leaders Group EDITORS’ NOTE Prior to joining Travel Leaders Group, Ninan Chacko was CEO of PR Newswire after having served as Chief Commercial Officer of Worldspan. He also spent more than 13 years with Sabre Holdings.

Chacko earned both his M.S. and B.S. in aerospace engineering from the University of Kansas and he also completed Harvard Business School’s Advanced Management Program and the London Business School’s Spencer Stuart Directors’ Forum. Ninan Chacko Chacko earned his Certified Travel Counselor (CTC) from The Travel Institute.

COMPANY BRIEF Travel Leaders Gr oup (travelleadersgroup.com) was formed in 2008 with a simple travel promise: to transform the travel experience one trip at a time. The company supports 52,000 travel advisors serving corporate and leisure clients in partnership with its trusted travel suppliers. The company began with a management-led buyout of Carlson Leisure Group and merged with Tzell Travel Group that same year. In August 2010, Travel Leaders Group acquired Nexion, the travel industry’s premier host travel agency network, from Sabre Holdings. In December 2010, Travel Leaders Group acquired the travel industry’s largest travel agency consortium, Vacation.com, from Amadeus. Then, in November 2012, Protravel International merged with Travel Leaders Group.

In the past two years, the company completed nearly 20 acquisitions, including U.K.-based Barrhead Travel and its merger with ALTOUR. Today, Travel Leaders Group continues to transform travel with an unparalleled commitment to vacation and business travel clients.

Will you discuss the history and heritage of Travel Leaders Group and how the business has evolved?

The original seed entity came from Carlson’s spin off of the Carlson Leisure Network, a consortium that is similar to a franchising structure in that it provides a variety of services to agents that join it. It organizes everything from branding and access to supply and benefits, to training, etc.

That seed entity then embarked on an acquisition strategy with a variety of different shareholders at different points. Interestingly, the physical agency side of the travel industry has been in decline since 9/11 and there hasn’t been a robust 114 LEADERS

market for acquisition, particularly on the leisure side of the business.

TLG was successful in creating size and scale through growth of the consortia side of the business, and also by physically buying advisors and owning a book of business too. This has been going on for almost 10 years now.

I joined the business in 2015 after having originally worked in travel and then in media. That year, we embarked on a strategy of integrating the business and accelerating the growth path on the acquisition side. Over the past two years, we have done more than 20 acquisitions, so we’re starting to expand our size and scale.

The business still has two parts to it: a franchise organization called Travel Leaders Network, where we have approximately 40,000 agents spread across North America; and then we have a host of brands we have acquired over the years that are our owned businesses, that span corporate travel, luxury leisure travel and mainstream leisure travel.

When the business grows at such a rapid pace through acquisitions, is it challenging to maintain culture?

Culture is certainly a key part of it. Many of the businesses we acquire are owner/founder managed, so our approach to preserving our core values has been to try to ensure that the owners/ managers participate post the acquisition period.

In some cases, they have even stayed on to run these businesses for a longer period of time.

This has helped maintain the existing integrity of the business and resulted in a broader integration within Travel Leaders Group at a steady pace. We accelerated integration a bit more on the financial and IT sides, but we have attempted to keep these businesses largely intact.

Two of our most storied brand names in New York used to be housed in two separate locations and we recently moved them into a brand new office space together that will serve as an integrated headquarters location.

Do the brands complement each other or do they compete with each other?

They do both. They complement each other in that we now have the largest stable of luxury travel brands in the travel agency business worldwide and the greatest concentration of independent travel advisors that specialize in luxury travel.

The complementing part comes from creating size and scale where firms like Four Seasons,

for instance, pay very close attention because we sit on a spigot of demand that is highly attractive to them.

If we think about most suppliers, they’re quite good at figuring out how to go after the big corporations, but they don’t have visibility into individuals to any great degree. Our ability to capture that high-end demand puts us on their radar.

What are the keys to staying relevant as a travel agent?

Complexity and price play a role in the kind of business our travel agents do. Their relevance comes from having deep expertise. Information is a commodity, so what matters is deep insight and experience, education on the product, and deep insight into client’s personal preferences.

Unique access to product is also important.

We can service clients with product that is different from what they can find on the web or through an online travel agency. This might involve upgrades or better room rates or discounts on airline tickets.

Agents can bundle that knowledge and access to product and put together something that connects all the elements.

If a client has a number of elements to their trip, a travel agent is invaluable in knitting all of those pieces together. If something goes wrong, they can call their travel advisor and get it taken care of.

How do you define the TLG client?

There is clearly a community of individuals who are diehard do-it-yourselfers who feel they’re web savvy and educated enough to plan things on their own and don’t feel they need travel agents.

I don’t think of our market as a niche when I think about the customer set we rely on. They are those high-end travelers who may use online agents or direct supply sites sometimes, while they rely on our agents at other times when they value the expertise of an agent to help them come up with the right answer to their travel equation.

That segment of the population values the expertise and advice, and the relationships, many of which are long-standing.

We have also seen a parallel shift in society where there is more of a desire for the experience element of travel that is becoming important. This bodes well for agents because this type of travel is about reconnecting with humanity through experiences.

Even with millennials, we’re seeing that there is an increasing use of travel agents. Millennials want unique experiences – they don’t want to take the vacation their parents took.

•

VOLUME 42, NUMBER 1

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Cultural Travel An Interview with Nancy G. Novogrod, Founder, Culturati Travel Design EDITORS’ NOTE Nancy Novogrod into a culture and find out some of the was Editor in Chief of Travel + Leisure cues about what makes a particular for 21 years, and during much of destination distinct. this time also served as Senior Vice As for the timing, I’m passionate President and Editorial Director about travel and Culturati Travel of American Express Publishing.

Design has clearly pr ovided me Novogrod oversaw the launch of six with the opportunity to be out there global editions of Travel + Leisure: keeping up with the world of travel Mexico, Turkey, China, Australia/ and the people in it, and the news New Zealand, South Asia, and about destinations. It affords me the Southeast Asia as well as Travel + opportunity to explore the world Leisure’s website and book series. She while researching new trips. was also an advisor for the annual Nancy G. Novogrod During my time at Travel + Leisure, American Express Publishing Luxury the access I had was of enormous Summit. Before joining Travel + Leisure in 1993, value. My effort, as the editor of the magazine, Novogrod was Editor-in-Chief of House & Garden was to try to find a way to share information magazine. Previously, she served as an Executive that would enable people to dig deep into Editor of Clarkson Potter/Publishers. Novogrod destinations and get beneath the surface in began her publishing career in the fiction a way that was beyond the reach of ordinary department at The New Yorker. She is a very active travelers, and closer to my own experiences. trustee of the American Academy in Rome.

COMPANY BRIEF Culturati Travel Design (culturatitraveldesign.com) is obsessed with culture, travel, and with discovering the people and places at the heart of a destination. It seeks to share its passion for art, design, food, style and local connections with discerning travelers.

Utilizing expert guides, well-placed insiders, and privileged access, it creates transformative experiences for intimate groups of like-minded travelers.

Culturati Travel Design is an affiliate of Valerie Wilson Travel. (ValerieWilsonTravel.com), one of the largest private, family-owned and managed travel consulting firms in the United States.

What led you to create Culturati Travel Design and what made you feel the timing was right for the company?

Culturati Travel Design brings together many elements of both my personal interests and my professional experience. It’s a very special opportunity for me.

I was an art history major in college and that interest has always remained and influenced much of the work I’ve done, both in book publishing and in magazines. This was certainly the case at House & Garden, a magazine that covered design, lifestyle, and art, as well as at Travel + Leisure, where the art and architecture and design elements were very important.

I also have a passion for food and for shopping, but not merely shopping – I call it cultural cruising. It’s an opportunity to dig deep 116 LEADERS

Our trips will allow for a deep dive into what each destination has to offer.

Planning trips through Culturati Travel Design makes it possible for me to share my knowledge and access.

How do you describe the service that Culturati Travel Design provides and where do you see the greatest opportunities for growth?

First and foremost, it’s about curation. I work with specialists on the ground to put together trips that are meant to enrich and further people’s knowledge of areas they are passionate about, and to provide meaningful and memorable experiences that enhance their lives. That, above all, is what I’m trying to do.

My time at Travel + Leisure provided me with a network of global contacts and unique sources of information. This, combined with my own point of view and particular interests and tastes will, I hope, create a rich experience for Culturati travelers. Our trips will allow for a deep dive into what each destination has to offer.

You’ve partnered with Valerie Wilson Travel. Will you discuss this relationship and the value that you feel the partnership provides for Culturati Travel Design?

I believe that Valerie Wilson Travel and I share a great interest in delivering quality experiences and doing things the right way. I have a high comfort level with the company and have known it for years. I worked with Valerie to plan my travels when I was the editor of House & Garden (she helped many of the company’s top editors with their travel arrangements). I also know Kimberly, who was a valued member of the Travel Advisory Board of Travel + Leisure. They are highly professional leaders in the travel industry, with a significant business that is operated in a thoughtful and intelligent way.

Our partnership gives me a great deal of confidence that the trips I design will be executed in the most careful and excellent manner.

I’m not a travel advisor, so having the support and expertise of a team of people who have that experience is crucial At Valerie Wilson Travel, it’s not just the front-line individuals at the firm – there are also many excellent people who support the trips that they plan and are valuable sources. I feel like I have an expert team around me.

Were you drawn to the hospitality industry at an early age and what makes the industry so special for you?

I’ve always been interested in how life is lived in other places, in meeting people whose experiences were very different from my own.

As the only child of a working mother, my parents brought me along on their vacations, so I got to see something of the world at a young age.

Travel is such a great opportunity to get beyond the surface of a destination and experience aspects of a place that are clues to the life that is lived there. As I used to say as the editor of Travel + Leisure, it opens hearts and minds.

•

VOLUME 42, NUMBER 1

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Sandstone’s Strategy An Interview with Dan Davidson and Holly Breuche, Sandstone Consulting EDITORS’ NOTE Dan Davidson is a long-standing and highly respected figure in the luxury lifestyle travel marketplace, leading Magellan in offering unparalleled value in major destinations around the globe.

Holly Breuche is a multi-faceted industry veteran, having served as General Manager, Director of Sales and Marketing overseeing Revenue Management, as well as Director of Asset Management for properties like The St. Regis Bal Harbour and The St. Regis Washington, DC. She successfully opened seven hotels including The New York Palace, The Setai, and the Quin.

Most recently, Breuche oversaw some of New York’s most iconic properties as Vice President of Operations for Highgate – which operates nearly 12 percent of the city’s total hotel room inventory.

COMPANY BRIEF Sandstone Consulting brings a fresh approach to an underserved niche: large scale travel negotiations. Formed by two veterans of the hospitality industry, Sandstone is built upon more than 50 years of combined experience. Dan Davidson, Founder and Chairman of Magellan Luxury Hotels, and Holly Breuche, former Vice President of Highgate Hotels, are harnessing their vast networks and expertise to elevate the group travel experience.

What was your vision in creating Sandstone Consulting?

Breuche: Dan and I have long enjoyed a synergistic professional partnership. Though our collaborations always served our respective businesses well, the inspiration for Sandstone came when Dan was tapped to negotiate a group booking of 26,000 room nights for two years on behalf of an organization. We decided simultaneously that our skill sets and extensive networks would support a successful agreement on behalf of both the organization and the hotel.

It became apparent that there was a gap in the market. No one was addressing this specific challenge, and we were uniquely suited to close the divide. The scale of these types of bookings makes them significantly more complex by nature.

By focusing on large-scale groups, we make full use of our backgrounds to deliver valuable solutions for both our clients and partner hotels. The relationships and knowledge that we cultivated over the years allows us to approach these negotiations from a bird’s eye view. This sharpened perspective spans all sides of the conversation.

We decided to create Sandstone, which is a nod to both land and sea – the great masses voyagers traverse. Because sandstone rock is 118 LEADERS

Dan Davidson

Holly Breuche

formed through a blend of multiple elements, it is considered a stone of creativity. Metaphysically, it strengthens relationships within groups and helps with focus. It encourages balance, helps one discern truth, and offers clarity when making decisions. As we’re aggregating multiple components to build unshakable foundations for our clients and partners, Sandstone embodies all of our values and goals.

What services will Sandstone offer its clients and partners?

Breuche: Sandstone Consulting is dedicated to hospitality sourcing for large-scale groups and meetings, constituting 1,000+ room nights. Our expertise makes us the most competitive negotiators in the business. This delivers unmatched access to the world’s most extraordinary destinations.

In addition to site selection and contract negotiations for groups, we assist with agreements for corporate transient rates. Although our focus is on large-scale groups, we remain proactive for our clients, anticipating and responding to shifting ground.

In this landscape, we understand that we must be dynamic. By working with us, clients get more than great negotiations. Our passion, determination, conviction and expertise ensure that they get the attention and “high touch” level of service that delivers results. Our business is to help both our clients and our partner hotels, and we bridge the best connections for mutual benefit.

How do you define the target market for Sandstone Consulting and where do you see the greatest opportunities for growth?

Breuche: Our target market is mega-sized groups, meetings and programs across all segments. We are adding some new layers to this business model, however. We will keep those close to the vest, knowing they may serve as “secret weapons” to our and our clients’ success.

We have already seen strong momentum as we raise awareness in the industry. We will

continue to take a consultative approach and are personally connecting with our partners to share the details of our services as we grow.

How do you differentiate Sandstone Consulting in the industry?

Davidson: Sandstone is gritty. Our relationships, tenacity, and good old-fashioned grit – Holly and I stick with things long after we master them which makes us stand above and apart. Most importantly, however, is our collective conation. It’s an obscure word referenced in one of our favorite books, Self-Made in America, by John McCormack.

He defines it as “the will to succeed, the quest for success, the attitude that ‘to stop me you’ll have to kill me’, that elusive ‘fire in the belly’ that manifests itself in drive, enthusiasm, excitement, and singlemindedness in pursuit of a goal – any goal.”

Furthermore, Sandstone is committed to giving back to the community and is actively involved with the organization Oceana. After all, how can we build solid foundations without first protecting our natural resources? Oceana is an incredible organization that has protected over 3.5 million miles of ocean since 2001. Before they started Oceana, the founders learned that less than 0.5 percent of all resources spent by environmental nonprofit groups in the U.S. went to ocean advocacy. They were the first group to work exclusively to protect and restore the oceans on a global scale.

From linen reuse programs to entire hotel brands now banning plastic straws, our industry has made and can continue to make hugely impactful strides in protecting the sea. We offer our support by donating a percentage of every confirmed booking to Oceana’s conservation efforts.

What are your key priorities for Sandstone Consulting as you build the business?

Breuche: Long term, Sandstone’s goals are simple. Our mission is to bring new revenue streams to hotels while simultaneously offering value to our clients through exceptional experiences at the best hotels across the globe.

Short term, Sandstone’s top priorities include a website launch in the near future, as well as ongoing outreach to potential partners. Our contacts are not a faceless database; they’re a collection of friends and trusted colleagues, and we understand that each person and their needs are singular. You won’t find us doing mass marketing. Instead, we’ve been engaging in meaningful connections to uncover new ways to help others in an exceedingly demanding marketplace. We believe in the confidence of personal contact in an age where that is almost extinct and take relationship building very seriously.

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Jamaica’s Potential An Interview with The Honorable Audley Shaw, CD, MP, Minister of Industry, Commerce, Agriculture and Fisheries, Jamaica EDITORS’ NOTE Following his In 2008/2009, we had the worst graduation from Northern Illinois global economic crisis the world University (NIU) with Bachelor of had seen since World War II. We Arts and Master of Arts degrees in had to concentrate on stabilizing the journalism with graduate studies economy. in marketing, finance and pubOnce economic stabilization took lic relations, Audley Shaw joined place, we sought to ensure that we the Chicago Office of Bursonhad lasting economic stabilization and Marseller as Client Executive. He we could then focus more on growth. later put that experience to work The Prime Minister then moved when he joined Jamaica National me from finance into a growth minisInvestment Pr omotion Limited try that involves industry, commerce, (JNIP) which was later named The Hon, Audley Shaw agriculture, fisheries, as well as investJAMPRO, then Jamaica Trade ment promotion. and Invest and now reverted to JAMPRO, as In the first year, we had just under 2 Director for Public Relations and Advertising. percent growth and we are targeting at least Between 1983 and 1986, Shaw was responsi- 2.5 percent for this year. We want to get to a ble for JNIP’s marketing and overseas offices. 5 percent growth level by 2020. We believe Shaw joined the Jamaica Labour Party in we are on a trajectory where that can be 1987 and, in 1989, the Leader of Opposition achieved. appointed Shaw to the Senate where he served In order to accomplish this, we want to as Shadow Minister of Infor mation and attract significantly higher levels of investment Culture, Shadow Minister of Public Utilities across a wide range of areas. This would include and Transport as well as Shadow Minister of tourism, which already has an impressive level Industry and Commerce. In March 1993, of investment taking place that is driving growth he was elected Member of Parliament for of 5 percent.

North East Manchester. In September 1995, The business process industry provides offhe was appointed Chairman of the Public shore back office functions for companies from Accounts Committee (PAC) of Parliament – the United States and other countries through the watchdog of expenditure of public funds call centers. After only a few short years, this is

by Government Ministries and Agencies. In creating many jobs and is growing rapidly. Part 1997, he was appointed Shadow Minister of of the reason for this is our location in relation Finance. Shaw served as General Secretary to the largest market in the world – the United of the Jamaica Labour Party and has been States. This close proximity allows ease of mana Deputy Leader of the JLP since 1999. In agement as opposed to distance locations like S e p t e m b e r 2 0 0 7 , S h a w w a s a p p o i n t e d India and others that have traditionally provided Minister of Finance and the Public Service in these services. the new Government of the Jamaica Labour Another area we want to significantly Party. In addition, he later assumed the expand is our alumina processing and our minportfolio of Planning. In 2012, Shaw was ing industry. This is being done right now with appointed as Shadow Minister responsible for a major investment by a Chinese company, Finance, Planning, Growth and Economic ALPART, which has already taken over a plant Development. In 2016, he was re-appointed that was closed for eight years. They have a Minister of Finance and the Public Service plant in St. Elizabeth, and they have produced under the JLP administration. In 2013, Shaw 1.6 million metric tons of alumina. They intend was conferred with Jamaica’s national award to build a second alumina plant. of the Commander of the Order of Distinction In addition to these initiatives, they also in the field of public service. He is also the intend to put up a modern agri-industrial plant recipient of the Donald R. Grubb NIU distin- as well as a factory and processing center that guished Alumni Award. can produce aluminum byproducts.

That is a very ambitious project of roughly Will you discuss the strength of the Jamaican US$6 billion, the largest ever in Jamaica’s history. economy and your outlook for growth for We believe we can target more partnerJamaica? ships and joint ventures like this one. We 120 LEADERS

have a lot of resources in Jamaica that we must put into production and there is no time to lose.

Our sugar industry has been on the decline and we have to produce sugarcane on a more efficient basis, on fewer acres of land, while making more land available for production of a wider range of other industrial crops.

We’re targeting mangoes in the near term.

We’ve just received permission to export to the U.S. where there is a tremendous demand in the ethnic market. We are also targeting castor beans, the raw material for castor oil. The demand for castor oil is growing at a phenomenal level and the castor oil made in Jamaica is a unique and powerful brand for us.

We want to build more self-sufficiency. For instance, we import 85 percent of our onions and we could produce all of the onions we need in Jamaica. We are also targeting cotton.

This attracts top dollar in Europe because of the quality of cotton we can produce in Jamaica.

There are a wide range of opportunities in agri-processing that can move us from poverty to prosperity in Jamaica. We have more than 240,000 small farmers in the country who are seeking stable, reliable markets.

One of the ways to build sustainability is to have vertical integration from what we grow to what we process and store. To drive that process along, we are putting together agri-processing logistic centers that can guarantee that what we grow will be processed or stored fresh so it can be sold to all hotels and to the regional markets.

Jamaica also has a unique situation in terms of where we’re located in the Western Hemisphere. We are building out our logistic centers. We have divested the port of Kingston to a French company and they have already put invested more than US$500 million in it.

They have dredged the channel coming into Kingston and this will allow the super liners coming through the Panama Canal to come to Jamaica. We’re a significant point of exchange where we can ship from Jamaica to the Eastern Caribbean and to Europe through the Atlantic.

Overall, we think Jamaica has tremendous potential. We believe we’re poised to grow, but we’re seeking more investment, not just of capital, but also in technology so we can drive the level of productivity that we require to achieve the levels of economic growth that we desire.

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The Mark of the Maker An Interview with Rob Samuels, Global General Manager and Chief Distillery Officer, Maker’s Mark EDITORS’ NOTE Rob Samuels, the grandson of Maker’s Mark founder, Bill Samuels Sr., is Global General Manager and Chief Distillery Officer of Maker’s Mark. Prior to this, he served as Chief Operating Officer. In addition, Samuels serves as General Manager of the Maker’s Mark Distillery in Loretto, Kentucky.

He has also served as Director of Global Brand Development for Maker’s Mark and as Manager of the Florida and Ohio territories for the distilled spirits portfolio of Allied Domecq Spirits & Wine.

Samuels received a B.A. degree in applied sciences from the University of South Carolina, and subsequently completed both the University of Chicago Graduate School of Business Executive Education Program as well as the Harvard Business School General Management Program.

COMPANY BRIEF With headquarters in Louisville and production centered in Loretto, Kentucky, Maker’s Mark Distillery, Inc., is America’s oldest continuously operating producer of bourbon, having been established commercially when T. William “Bill” Samuels Sr. purchased the “Burks’ Distillery” for $35,000 on October 1, 1953. Production began in 1954, and the first run was bottled in 1958 under the brand’s distinctive dipped red wax seal. Maker’s Mark (makersmark.com) is a handcrafted, smallbatch bourbon whisky, and the site of its production was designated a National Historic Landmark in 1980, becoming the first distillery in America to be recognized as a national treasure.

Will you discuss Maker’s Mark heritage and how important it has been that the DNA and culture of the brand has remained so strong?

We keep the founders’, both my grandmother and my grandfather, vision embedded in everything we do. Who they were and their vision are not just fond stories of the past, but they are the guiding light for the future.

After finishing college in 1937, they got married, resurrected the legacy family distillery and brought it out of prohibition – it was only the fifth distillery to reopen after prohibition.

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Rob Samuels at the Maker’s Mark Distillery in Loretto, Kentucky

Later they found the courage to break from that legacy tradition in order to follow their own vision, which was to bring bourbon and good taste together. They wanted to create a soft, rich, creamy, handmade bourbon.

My grandfather’s passion and focus were all on the distillery and that famous place that we call home, which today is a national historic landmark.

They settled there because of the water source; we are the only distillery today in North America that only uses water from a natural source in all of the whisky we make. We also own an entire watershed, so we have 600 acres between our two lakes – every drop of water that has ever been in a cooker has come from a natural source.

He broke down each and every step of the process and was guided by his taste vision.

My grandmother was the one who created the name and designed the bottle, which she wanted to celebrate the essence of my grandfathers’ handmade whisky. The Maker’s Mark – the mark of the maker, much like those used by pewter makers – would always be the finishing touch reflecting the handmade quality and celebrating the values behind the product. She also designed the distillery with the idea of having friends come to visit – it’s the first distillery in America to ever host visitors.

They didn’t think about marketing their brand in traditional ways; they thought about sharing what they were making with friends. Once a few

friends were interested, then they figured friends would come visit them. She designed the distillery much like someone would design their home. She would become the first female to ever be inducted into the Kentucky Bourbon Hall of Fame.

Maker’s was a 30-year overnight success. It was a Kentucky only brand with little interest from consumers. Kentuckyans, in many ways, kept us in business through the ’60s,’70s, and ’80s.

When we talk about the founders’ vision and the consistency in the distillery, my dad’s greatest legacy was that, when he chose to expand our distillery in the early 2000s, he chose to expand our distillery in a way that no distillery in the world had ever done. He resisted the temptation to scale up with the focus being reducing the cost. He actually built a second set of stills identical to the first with the same equipment and process, which meant the same consistency over time.

Four years ago, I built our third set of stills so, under one roof, we have identical triplets which is unique to Maker’s Mark. We have a single source of supply, which means every drop of whisky that has ever been in a bottle of Maker’s Mark has been made here, and it has never been anywhere other than a bottle of Maker’s Mark.

My family’s legacy within whisky is so much more than founding Maker’s Mark. The industry recognizes Maker’s Mark as the vision that began the modern era of bourbon.

Has the Maker’s Mark production process been impacted by technology or is it still about the hand touch?

The Wall Street Journal summed it up beautifully when they said Maker’s Mark is purposefully inefficient. Our founders’ goal was never to be the biggest or most efficient – irrespective of cost, he was a craftsman in pure pursuit of his taste vision.

As we’ve grown over time, our handmade tradition and the principles we employ continue to be executed by people who guide each and every step of the process. The technologies we employ are more around helping us manage the consistency from a quality standpoint.

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We’ve also been able to innovate in a thoughtful way based on our founders’ taste vision. My father, with his creation – Maker’s 46, essentially set out to create a product based on the flavors and characteristics that define what Maker’s is. He looked to create the perfect expression of what Maker’s Mark had become and amp up those specific flavors that live within Maker’s that he loves the most.

Maker’s 46 is finished in French Oak for nine weeks and we also used technology when we carved out a limestone shelf in the hillside of the distillery and created our industry’s first ever limestone whisky cellar. Maker’s 46 is a time and temperature sensitive whisky. Finishing in French Oak can only occur at 50 degrees or cooler. We now have a temperature-controlled environment in our cellar.

It was that idea of creating our own perfect expression that led to creating the industry’s first custom barrel program called Private Select. It was based on letting the best restaurants and bars in the world come to our distillery to better understand the handmade process that influences our whisky and, based on the flavor and characteristics, define their perfect expression.

How is Maker’s 46 differentiated from Maker’s Mark?

As more and more customers get interested in whisky, we see an increased number looking for a bigger, bolder bourbon. If one is in a bar and they strip away the marketing hype, the price tag and the exclusivity, people can be challenged to learn to like some big, bold bourbons.

We wanted to create a big, bolder expression of what Maker’s could be. My dad wanted to amp up the vanilla and the baking spices, and have a bit of a stronger finish while still retaining the foundation of what Maker’s is, so Maker’s 46 is a big, bold bourbon that is easy to drink.

How difficult is it to cut through the noise in such a crowded market to tell the Maker’s story?

In many ways, it’s a lot easier because when Maker’s was first released in May of 1958, there were essentially no customers asking for elevated bourbon. Friends purchased the first case from my grandparents and we were a Kentucky brand for the next 25 years.

Today, we have more consumers willing to explore products that are special and that have authenticity.

We have a team of people at the distillery who engage all of their senses through each and every step of the handmade process. While we will sell almost two million cases this year and while Maker’s Mark is distributed across many bars and restaurants, it’s still made through exactly the same purposefully inefficient process.

We’re the only distillery I know of that rotates every single barrel through the maturation process.

We print and hand tear every single label for every bottle. In our distillery, there is a team of 14 people managing every step of the process, whereas in the modern day of technology, wineries, breweries and distilleries often have just one person in a room pushing buttons on a computer.

The full sensory engagement helps us lead to our founders’ taste vision.

Has distribution evolved or have you remained true to your original distribution channels?

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We had no growth for 30 years, but for the past 30 years, we’ve sold every drop we’ve had available.

The brand today is celebrated and available in most every metro city in America, and there is meaningful consumer interest outside the U.S. In the leading cities outside the U.S., be it Paris, Sydney, or Cape Town, the values of what Maker’s Mark represents resonates with customers in the same way it does in New York and Kentucky.

Whisky and bourbon are considered more male-oriented. Have you been focused on building the female market?

Today, we probably have a few more male customers than female, but we probably have more female customers than most whiskies.

In the beginning, Maker’s was created for people who didn’t like whisky because legacy American whiskies were aggressive. They were tests of manhood and were commodities.

Thankfully, my grandparents had the courage to break from that tradition of whisky. In many ways, they might have felt pressure to just do what everybody expected. If you had a family business in the family for a century and it was commercially viable and successful, and if you lived in a community where six or seven of your neighbors ran the other distilleries, you would never think of parting ways with the family whisky. They had the courage and they complemented each other in such a beautiful way and, thankfully, they stayed true to their vision.

They operated their distillery for six and a half years before they sold the first case. How many new bourbons have been created since 1933 and how many of them started from scratch? I don’t know of any others.

In his P&L, my grandfather didn’t have a P for 25 years. He talked to me about what he had created and how proud he was that he had never wavered from his vision, even with well-intended pressure from the industry to conform to where the market was going.

That is what still drives me and our team.

We have 215 team members and all of them love Maker’s Mark as much as I do. There is no more highly engaged group of people.

How important has it been to maintain a family feel?

It means everything. Expanding and growing in whisky today isn’t all that interesting.

There are a lot of bourbon and scotch whisky distilleries that are expanding. I don’t know that any distillery in the world has ever done what we have done – keeping the high touch and sensory engagement in the distillery and in the warehouse with rotating and hand-cutting labels and hand-dipping bottles. We have done what a lot of people said could not be done. We have kept the sanctity of the place, which is the soul of the company and the product.

I can feel the growth starting to take over. We were starting to burst at the seams, but I am proud of how it has all come together. We haven’t just remained at the same level – we have pushed it further, but still under the direction of our founders’ guiding light.

All the decisions we make fall right out of the clarity of their vision.

Our vision for the place is to become one of the most culturally rich, endearing, and environmentally responsible distilleries in the world.

How important is the environmental focus?

It’s very important, because being stewards of nature is paramount for the future because bourbon comes from nature.

Bourbon is nature. Maker’s Mark is nature. In the beginning, our founders didn’t stumble upon this location by accident. The reason they purchased the property was because of nature and the 14-acre spring-fed lake.

Today, we have two spring-fed lakes and our farm manager is an environmental biologist.

He, along with our team, are putting conservation at the center of everything we do, from creating the first water sanctuary and planting more than 1,500 American white oak trees so as water comes down into earth, it naturally comes in and is filtered.

We own our entire watershed, but we are also exploring ways and implementing principles across American oak and grain to push the boundaries of flavor and put conservation at the center, beyond even the product we make.

Did you always know you would be a part of Maker’s Mark?

I worked in the distillery as a youngster. I loved those opportunities and I’m so grateful my dad gave me that chance. I would spend the summers with my grandparents, literally running the still – I worked every job.

That was very important to me, but it was also a great gift to be encouraged to get outside the shadows of Kentucky and the shadows of Maker’s Mark.

I never wanted my father to feel he had to hire his son, so I worked for a different company in the same industry for 11 years.

What I proved is that I have an appreciation for Maker’s Mark, but I also have a love for the industry and I wanted to make it my life’s work.

My dad retired eight years ago, so I began to work with our team and continue the journey and keep the whisky quality and consistency and add layers of richness to the depth of the experience.

We are becoming a destination. We used to have a lot of local visitors who were looking for tours, but people are coming from all over the U.S. and even internationally today. We know that our visitor is more loyal to our brand than any visitor to any other distillery. They want to go deep into those layers that our founder put in place.

While your focus is on continuous improvement, are you able to enjoy the process and celebrate the wins or are you always looking ahead?

It’s both. We have a great group of people and we let them work at the highest possible level to make a difference and keep them engaged.

We don’t try to do everything, but for everything we try to do, we try to do it better than before.

It’s a lot of work, but it’s inspiring for people.

How special is it to be part of such a legacy brand and how have you maintained such a strong family relationship in the business?

No one is more proud of dad’s legacy and his contributions than I am. Even though he retired, I call him almost every day. I decided from day one that I wasn’t going to be insecure about who he is.

He’s a larger than life figure – I celebrate him and I could not be more proud of him.

It’s not about me. It’s about the brand and I get to play a unique role given the family legacy, but there is a big group, so I want to help all of us be great. We can do things with our brand that maybe no one else can do.

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LEADERS

ADVISORY Jan Dilenschneider

If the weather over the past 24 months does not tell us that the environment has changed and needs to be addressed, nothing will.

Around the world, leaders are talking about and acting on global warming in an effort to protect the air, the water, the flora and fauna that are so important to society. In Paris thousands marched as part of an international effort to show popular support for urgent measures to combat climate change. They carried a message that it is up to the public to put global warming at the top of the political agenda.

To be sure, 700 French scientists have called for action saying, “solutions are available.”

In the United States, one of these leaders is Jan Dilenschneider, who has used her painting to make this point: we need to protect our environment. In enjoying her painting, she does not want to scold people, rather just have them fall in love with nature again.

Dilenschneider’s paintings have been exhibited five times in Paris and at numerous locations in the United States and Europe and they never fail to elicit a positive reaction.

“I think leaders in the world of art need to stand up on this issue,” Dilenschneider says. “If words could carry the message we would not need painters,” she adds.

Dilenschneider’s paintings, which hang in houses throughout the United States to Switzerland, Belgium, England and France, are now being made available to the Chinese.

“There are no geographical borders when it comes to punctuating our environment,” Dilenschneider says.

“My inspiration and goal is to use vegetation, snapshots of land and air, and more to move people to do something to protect the environment.”

“You are not just buying a painting by Jan Dilenschneider, you are purchasing a statement, “ said one of her collectors.

“It has been a privilege to exhibit Jan Dilenschneider’s work in our Galerie,” said Pierre-Alain Challier, one of the top gallery owners in Paris. “Jan’s work creates considerable comment and discussion about what to do to make the world a better place,” he added.

Jerome Marcade at the Jardins en Art said, “Jan Dilenschneider’s work focusing on painting the environment has made a major difference in our gallery.

Her statement to society has had real impact.”

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Dilenschneider says that she has been influenced by many who painted and delivered messages about the environment before the idea was popular.

Thomas Cole, who started the Hudson River School of painters and whose work is currently on exhibition in London’s National Gallery, is one example.

“Cole’s treatment of the Adirondacks and the Hudson River was unique and beautiful. Observing this beauty one would want to keep it as lovely as it once was,” according to Dilenschneider. “Winston Churchill, who painted his last picture The Goldfish Pool at Chartwell in 1962, is another.”

Dilenschneider likes to quote Sir Winston who said in his 1948 book, Painting as a Pastime, “Happy are the painters -- for they shall not be lonely. Light and color, peace and hope will keep company at the end of the day.”

Dilenschneider talks of the many ways the environment has changed, from the melting of the polar ice caps to half the species of insects that are now extinct.

“My work is focused on protecting the beauty of the planet by highlighting the dangers we face, “ she said. “Artists have the platform to draw attention to global warming and to solutions and we must act, “ she added.

Dilenschneider draws inspiration from the grasses, reeds and beautifully shaped leaves around the coastline where she lives. “Some people think they are weeds; I think they are beautiful organic structures, thus I paint them,” she said.

Dilenschneider adds, “These grasses reflect against beautiful meandering rivers or crystal blue skies. I see into the colors and new colors are revealed to me. I must speak out because I want to have these magnificent vistas to paint for a long time to come.”

“I am a great believer that the viewer needs to be drawn into the painting and participate. The viewer should feel or “read” the emotion in the painting.

I call this the fourth dimension. Everyone knows the second dimension, like a painting, or the third dimension, like a sculpture. The fourth dimension is what the painting “says to you,” how you interpret it. It is up to the artist to leave something “unsaid” for the viewer to imagine.”

Dilenschneider says she is calling on leaders of industry, government and the art world to make the ecology a priority and participate in making the world a healthier place.

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Big Leaf Mosaic – 36 inches by 36 inches (above) Wandering Brook – 30 inches by 30 inches (below) Flora against Blue Sky – 36 inches by 36 inches (right)

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Blue Water against Golden Reeds (a diptych) – 24 inches by 24 inches each canvas (above) Windows on Life #4 – 36 inches by 36 inches (below)

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Path Through the Trees – 30 inches by 30 inches (top left) Marvelous Organic Shapes – 36 inches by 48 inches (middle left) Elegant Leaves – 36 inches by 48 inches (bottom left) Intertwining Leaves – 36 inches by 48 inches (top right) Romantic Leaf Shapes – 36 inches by 36 inches (bottom right)

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Editors’

CHOICE Wempe Ashoka Collection

Founded in 1878 and headquartered in Hamburg, Germany, Wempe (wempe.com) is among the top 5 leading luxury retailers for timepieces and jewelry in the world and continues to be family-owned for 4 generations with 36 stores and brand boutiques in six countries as well as aboard the cruise ships MS Europa and MS Europa II. In the U.S., Wempe is run by Ruediger Albers, who has been with the company more than 30 years. In 1980, the company established New York-based American Wempe Corporation, whose flagship store on Fifth Avenue offers some of the world’s most prestigious watch brands and fine jewelry and is known for its warm, personal atmosphere. The store reflects the importance of Wempe’s longstanding relationships with prestigious watch houses, the Wempe-owned jewelry line “BY KIM”, and the Wempe watch lines “Zeitmeister” as well as “Chronometerwerke” while maintaining a homogeneous, European style salon appearance. Wempe’s commitment to customer service manifests itself in their expanded service atelier where five state-of-the-art workstations are equipped to handle the most challenging tasks and is recognized by Patek Philippe as one of just four authorized service centers in the U.S. The experienced master watchmakers embody the generous service culture for which Wempe has become known and consistently recognized. Wempe recently expanded their flagship boutique on the corner of Fifth Avenue and 55th Street. After doubling in size to now 5,500 square feet of sales area, eight impressive display windows stretch along half a city block of the facade of the time-honored Peninsula Hotel building. Featured boutiques for Rolex and Patek Phillippe, and an unrivalled selection of the most prestigious watch brands and high jewelry, as well as a special room dedicated to watch collectors featuring high quality watch winders and safes by Buben & Zoerweg, make every visit a memorable experience. Since 2012 Wempe also operates the Rolex Boutique inside the Rolex 128 LEADERS

Necklace in 18 kt white gold with 146 Ashoka®-cut diamonds 64.98 ct in total (upper left); Cube Ring with 6 Ashoka®-cut diamonds 2.00 ct in total (center top); Art Déco Pendant with 2 Ashok®-cut diamonds 1.00 ct in total and 1 baguette-cut diamond, including necklace (middle); Art Déco earrings with 4 Ashoka®-cut diamonds 1.40 ct in total and 2 baguette-cut diamonds (above); Cube earrings with 10 Ashoka®-cut diamonds 3.20 ct in total and Art Déco Ring with 3 Ashoka®-cut diamonds 1.10 ct in total (below)

Building on Fifth Avenue and 53rd Street, where one can experience the whole breadth of the esteemed brand. In 2018, Wempe introduced the Wempe | Ashoka® diamond jewelry collection inspired by the Manhattan skyline, reflecting the city’s glittering waterside and countless gleaming façades. The centerpiece of the collection is a necklace consisting of 145 diamonds with a combined weight of over 60 carats. The Ashoka cut is a modified emerald cut with a rectangular shape and rounded corners. This cut, which was patented by the renowned New York diamond dealer William Goldberg, is known as one of the most unusual of its kind. Because of its 62 facets – five more facets than a brilliant cut – it appears 20 percent larger than an emerald-cut diamond of the same carat size. Fewer than 1 percent of all the rough diamonds in the world have the potential to be transformed into an Ashoka® cut which radiates a timeless flair combined with a certain vintage appeal. Connoisseurs appreciate it because, thanks to its extremely varied angles, it generates additional brilliance and light reflexes to create a striking effect.

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VOLUME 42, NUMBER 1

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