LEADERS Magazine April, May, June 2019 Volume 42, Number 2

April, May, June 2019

Volume 42 Number 2

CHINA REFORM FRIENDSHIP MEDAL/ MAURICE GREENBERG 25 SANDY WEILL 26 TISHMAN

HUMPTON

ROTH

HOWARD MILSTEIN 29 ARNOLD FISHER 32 JERRY REINSDORF 34 JORGE PÉREZ 38

MARCUS

ZELL

TRAMUTO

THE COLUMBUS WAY 98 A GLOBAL CITY 105 KAZAKHSTAN 110

ZHANG

ANTONIO

BOTTOMS

WORLD’S BEST SUITES 116

“Efforts and courage are not enough without purpose and direction.”

- John F. Kennedy 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 Daniel R. Tishman, Tishman Realty - 8 Barbara Humpton, Siemens USA - 12

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

Michael I. Roth, Interpublic Group - 14 Joel S. Marcus, Alexandria Real Estate Equities, Inc. and Alexandria Venture Investments - 17 Sam Zell, Equity Group Investments - 20 Donato Tramuto, Tivity Health, Inc. - 68

Photo Credits: Cover, 12 - ©www.siemens.com/press; 14 - ©alban@pichon.com; 21 - ©2006 University of Michigan Photo; 22 - ©www. alongilboa.com; 29 group - ©2019 Kristina Bumphrey, StarPix; 30 - ©8AM GOLF; 33 - ©Maxwell MacKenzie; 35 - ©2012 Ron Vesely/ Chicago White Sox; 38 Plensa Park - ©Robin Hill; 39 - ©Nick Garcia; 41 - ©Jerome Domine; 45 background - ©Seth Caplan; 50 - ©2017 Peter Goldberg; 52 - ©2017 Roxxe Ireland; 53 - ©2018 John O’Boyle; 55 - ©Sam Kittner/Kittner.com; 66 - ©2016 Ben Hider; 76 Kraut - ©2018 John Halpern; 92 city - ©Joey Kyber; 94 arena - ©Becky Stein Photography; 95 - ©Alex Arnett; 98 author - ©Shellee Fisher; background - ©Randall L. Schieber; 105 city - ©Muzammil Soorma; 117 - ©Bruce Buck;118 Presidential Suite - ©Francis Amiand; 124 Ocean Prime - ©Anthony Tahlier; 128 author - ©Jade Cantwell; ACE Atemus - @Andrew Walkinshaw Photography; 120 - ©Hotel Plaza Athenee; 121 - ©2018 Troy Campbell

Zhang Kuan, Galaxy Group - 72 Robbie Antonio, Revolution Precrafted - 80 The Hon. Keisha Lance Bottoms, Mayor of Atlanta - 92 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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663 million people, mostly in developing nations, are still living without clean water. That’s why IPG is working to advance U.N. Sustainable Development Goal 6 – access to clean water and sanitation for all. Clean water can truly change everything for a community. Please visit https://www.interpublic.com/about/stronger for more information.

BUILDING THE FUTURE OF LIFE-CHANGING ™ INNOVATION

The Alexandria Center® for Life Science - New York City

www.are.com | NYSE:ARE

ALEXANDRIA REAL ESTATE EQUITIES, INC. / ALEXANDRIA VENTURE INVESTMENTS Alexandria is the leader in creating collaborative life science and technology clusters and campuses, where the world’s most innovative companies develop breakthrough discoveries aimed at advancing human health and improving the quality of people’s lives.

Located in the heart of the East Science Medical Corridor, the Alexandria Center® for Life Science is the epicenter of the New York City life science ecosystem.

Contents LEADERS

ADVISORY China Reform Friendship Medal Maurice Greenberg

6

25

112

The Columbus Way The Honorable Andrew Ginther, Mayor of Columbus, Ohio Global risk interconnections challenge business resilience strategies Kathleen Savio, CEO of Zurich North America 86 Organizations must take a more holistic view of an increasingly complex global risks landscape Barry Franklin, Head of Risk, Zurich North America 88

98

Buckeye Nation Michael V. Drake, M.D., President, The Ohio State University

90

An Iconic Establishment Theodore V. (Teddy) Suric, General Manager, 21 Club

114

Personalized Service Kanvar Singh, Area Managing Director, Time Hotels

115

100

Colleagues, Customers & Communities Stephen D. Steinour, Chairman, President and Chief Executive Officer, Huntington Bancshares Incorporated

101

Opportunity for All The Honorable Doug Ducey, Governor of Arizona

Values and Culture Cameron Mitchell, Founder and Chief Executive Officer, Cameron Mitchell Restaurants

Safety and Service Adam Johnson, Chairman and Chief Executive Officer, NetJets Inc.

102

The Peninsula Chicago

116

The St. Regis New York

117

Le Meurice

118

The Ritz-Carlton, Istanbul

119

Hôtel Plaza Athénée New York

120

Acqualina Resort & Spa on the Beach

121

Omni Berkshire Place

One Atlanta The Honorable Keisha Lance Bottoms, Mayor of Atlanta

A Global City The Honorable Francis X. Suarez, Mayor of Miami

105

92

Making Life’s Everyday Moments More Enjoyable Helen Smith Price, Vice President, Global Community Affairs, The Coca-Cola Company and President, The Coca-Cola Foundation

93

Cameron Mitchell Restaurants

124

LDV Hospitality Innovating for the Future The Honorable Doug Burgum, Governor of North Dakota

Team Depot Shannon Gerber, Executive Director, The Home Depot Foundation

97

VOLUME 42, NUMBER 2

125

108

Being True to Atlanta Thad Sheely, Chief Operating Officer, Atlanta Hawks and State Farm Arena and Brett Stefansson, Executive Vice President and General Manager, State Farm Arena

94

122

Custom Treatment for Luxury Pens Giuseppe Aquila, Chief Executive Officer, Elmo & Montegrappa S.p.A. A Beacon of Economic Growth His Excellency Erzhan Kazykhanov, Ambassador of Kazakhstan to the United States

110

126

The Watch in Steel Jordy Cobelens, Chief Executive Officer, TW Steel

128

LEADERS 5

PURPOSE

Contents Defining Leadership Daniel R. Tishman, Principal Owner and Vice Chairman, Tishman Realty and Board Chair, Montefiore Medicine

Effective Philanthropy Sanford I. Weill

26

Responsible Business Laurence Morvan, Corporate Social Responsibility Officer, Accenture

41

8

Diversity, Culture and Education Howard P. Milstein, Howard & Abby Milstein Foundation A Business-to-Society Company Barbara Humpton, Chief Executive Officer, Siemens USA

29

12

Giving Back Arnold Fisher, Senior Partner, Fisher Brothers

32

Building Brands Michael I. Roth, Chairman and Chief Executive Officer, Interpublic Group

14

The Power of Sports Jerry M. Reinsdorf, Owner, Chicago White Sox and Chicago Bulls

34

Advancing Human Health Joel S. Marcus, Executive Chairman and Founder, Alexandria Real Estate Equities, Inc. and Alexandria Venture Investments

17

Passion and Purpose Sam Zell, Chairman, Equity Group Investments

20

Philanthropy in China Yue-Sai Kan

24

6 LEADERS

Client Service Richard Edelman, President and Chief Executive Officer, Edelman

A Business of People Donald B. Marron, Chairman and Founder, Lightyear Capital

42

A Valued Partner James W. Crystal, Vice Chairman, Alliant Insurance

44

Developing State-of-the-Art Properties Joseph Moinian, Chief Executive Officer, The Moinian Group

45

Building a Better Working World Richard M. Jeanneret, East Region Managing Partner, EY

46

36

Transforming Neighborhoods Jorge PĂŠrez, Chairman and Chief Executive Officer, Related Group

38

Driving an Inclusive Future Craig Vosburg, President of North America, Mastercard

40

Child Health Patrick M. Vivier, Professor of Health Services, Policy and Practice and Director of Interdisciplinary Education Programs, School of Public Health, Brown University and Institute Director, Hassenfeld Child Health Innovation Institute

50

A Force for Good in Society Daryl Brewster, Chief Executive Officer, CECP

52

VOLUME 42, NUMBER 2

“Over the past two years, with all of the problems plaguing social media platforms, fake news and a lack of faith and trust in CEOs and government leaders, the employer has become the most trusted institution.”

-Richard Edelman Brand Promise Timothy J. McClimon, President, American Express Foundation

53

Plaza Moving Forward Richard Wood, Chairman and Chief Executive Officer, Plaza Construction

54

Creating Memories Keith M. Douglas, Managing Director, One World Observatory

70

Accessing China Jonathan Krane, Founder and Chief Executive Officer, Krane Funds Advisors

71

Cooperation, Compassion and Innovation Kristen Morris, Chief Government and Community Relations Officer, Cleveland Clinic

79

Design-Driven, Limited-Edition Homes Robbie Antonio, Founder and CEO, Revolution Precrafted

80

Leadership Lessons James D. Robinson III, General Partner and Co-Founder, RRE Ventures

58

Creating Value George Pyne, Chief Executive Officer, Bruin Sports Capital

60

A Human Institution Serving Human Needs Jill McGruder, Senior Vice President and Chief Marketing Officer, Western & Southern Financial Group, and Edward J. Babbitt, Vice President and Senior Counsel, Western & Southern Financial Group and Secretary/Treasurer, Western & Southern Financial Fund

Building a Life Experience Circle Zhang Kuan, President, Galaxy Group

72

Understanding China Anla Cheng, Founder and Chief Executive Officer, SupChina

66

Advancing Overall Vitality Donato Tramuto, Chief Executive Officer, Tivity Health, Inc.

68

VOLUME 42, NUMBER 2

82

74

CBRE Cares Alison Caplan, Senior Vice President, Corporate Responsibility, CBRE

Highlighting Women’s Stories Daryl Roth, Daryl Roth Productions

83

75

64

Fostering Life Skills Dr. Nido R. Qubein, President, High Point University

A Values-Driven Culture Marc Costantini, Executive Vice President, Commercial and Government Markets, The Guardian Life Insurance Company of America

Social Change Agents Jeff Kraut, Executive Vice President, Strategy and Analytics and Ram Raju, Senior Vice President and Community Health Investment Officer, Northwell Health

Making a Better World Laura Gallagher, Global Head of Corporate Citizenship, AIG

84

76

The Entrepreneurial Spirit for Business Parker H. “Pete” Petit

78

A Decade of Empowering the Caribbean Region and Its People Heidi Clarke, Executive Director, The Sandals Foundation

85

LEADERS 7

PURPOSE

Defining Leadership An Interview with Daniel R. Tishman, Principal Owner and Vice Chairman, Tishman Realty and Board Chair, Montefiore Medicine

Daniel R. Tishman

EDITORS’ NOTE Daniel Tishman serves on numerous not-for-profit and corporate boards and is a member of the Board of Directors of the engineering firm AECOM, which merged with Tishman Construction in 2010. A major force in propelling the green-building movement to the forefront of the construction industry, Tishman spent more than a decade as Chairman of the Board of the Natural Resources Defense Council, one of the world’s leading environmental advocacy organizations. He also currently serves on the boards of the Conservation Fund and serves as Vice Chairman of the National September 11 Memorial & Museum. He was previously Chairman of Governor Cuomo’s Airport Advisory Panel and is a long-serving member of the Real Estate Board of New York’s Board of Governors and Executive Committee. Tishman is a longtime supporter of Montefiore Einstein and has been a member of the Board of Trustees for 15 years. He recently served as Vice Chair and member of the Executive Committee. In 2011, Montefiore Einstein recognized him and his wife, Sheryl, by building The Sheryl and Daniel R. Tishman Cognition Neurophysiology Laboratory at Einstein. In 2003, the College of Medicine awarded him the Albert Einstein Humanitarian Award to commend his leadership. Tishman holds a B.S. in ecology and planning from Evergreen State College and an M.S. in environmental studies from Lesley University.

ORGANIZATION BRIEFS Tishman Realty (tishman.com) is a vertically integrated real estate owner, developer, operator and advisor. With roots dating back to 1898, Tishman is comprised of a diversified staff of experienced real estate, financial and hotel management specialists, and is complemented by a technical staff of architects, engineers and construction management professionals. Over the past 30 years, Tishman has owned and developed roughly 10 million square feet for its own account and has sourced and structured nearly $8 billion of debt and equity for its projects. Additionally, Tishman has developed, managed and advised on more than 35 million square feet of real estate projects including hospitality, retail, residential and office.

8 LEADERS

As the academic health system and University Hospital for Albert Einstein College of Medicine, Montefiore (montefiore.org) is nationally recognized for clinical excellence – breaking new ground in research, training the next generation of healthcare leaders, and delivering sciencedriven care that puts the patient first. 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.

Will you discuss what makes philanthropy so important to you, and with so much need today, how do you focus your efforts?

Developing one’s philanthropic profile depends, to some extent, on how one learns to be philanthropic to begin with, and I don’t think this is directly connected to wealth. Philanthropy is connected with ideology.

Fortunately, our family has been blessed with a wonderful history in the U.S. for more than 120 years and I’m the fourth generation in the family business.

Going back to our roots, had it not been for acceptance and encouragement for an immigrant family in New York City, we would not be where we are today.

For us, committing time, resources, and money to philanthropic causes has always been important. I learned that philosophy early on, so I started by donating time, which was all I had to donate initially.

Today, we have built a foundation with an executive director and a staff, and our goal is not just to donate money, but to partner with institutions to solve problems.

Do your business skills and expertise naturally translate to your philanthropic work?

I believe they are much more aligned today than they were 10 years ago. Philanthropy is really just a financing vehicle, but ultimately, we want outcomes.

When I was running my business, every day was about how to deliver outcomes to my employees and my clients.

I think the same thing is true of philanthropy. I don’t give away money anymore just because it’s fun to give away. It is fun, but I give it away because I believe there are problems to be solved. For instance, we funded Montefiore

research into understanding the human brain.

We also give a lot of money to environmental causes, such as climate change or land degradation. We also donate to people fighting for equal and just access to education at all levels through scholarships.

I believe there are institutions in the world that are much better at solving those problems than I would be at building an institution to solve those problems, so I invest in those best-in-class institutions to assist me in solving the problems that I believe need to be solved.

My skills as a businessman did not relate to brain science or advocacy around climate change, but my skills as a businessman can be applied to helping those institutions finance their problem-solving missions. However, we also help them on a regular basis to adapt and adjust their strategy for solving those problems and we want to see outcomes that justify my investment.

That means we need data and metrics and those are things institutions haven’t been particularly good at historically. However, successful business people have often made their money by paying attention to data and metrics. They know how to collect and analyze data and evaluate if they’re succeeding or if they need to pivot. If there is one thing that business does well that many philanthropic institutions do not do well on their own, it is knowing how to pivot.

You recently became board chair for Montefiore. Will you discuss how your relationship with Montefiore developed and what makes Montefiore such a special place for you?

I got to know Montefiore through a business transaction. For the past 15 years, I have been on the board of Albert Einstein College of Medicine.

The College of Medicine was an institution that our family had an on again/off again philanthropic relationship with.

I was invited to sit on the board because I had a commercial relationship with the institution – my construction company was building their new research institute. That was how I got to know Montefiore.

A number of us on the board realized that Albert Einstein College of Medicine had to be more closely aligned with the hospital in order to deliver on its promise. It was aligned with a university, but it had reached the point where it had to be aligned with a hospital in a more formal way.

VOLUME 42, NUMBER 2

When I was running my business, every day was about how to deliver outcomes to my employees and my clients.

I think the same thing is true of philanthropy.

A group of us structured a plan for Montefiore to acquire Albert Einstein College of Medicine from Yeshiva University, and the deal was completed four years ago.

As an active participant in that transaction, I got to know Montefiore very well. I was particularly interested in early childhood learning disabilities, because we had a family member who grappled with learning disabilities. We also saw a nexus between health and environment, which are two areas we’re involved in because we know that many of the ailments affecting young people are stimulated through environmental exposures.

There was some groundbreaking brain research being done at Einstein on this issue and, as one of our first contributions to Montefiore, we funded one of their labs and have continued to fund this lab for years.

Once the transaction between Montefiore and Yeshiva was complete, the institution asked if I would be willing to chair what essentially is the holding company board of the combined

institutions. What excited me about this was that Montefiore Health System would now be backed by the academic and research engine of a powerhouse medical school, making it one of the biggest systems in the New York City region.

Montefiore’s population base is extraordinarily large and underserved. I am a firm believer that quality healthcare is deserved by all, and that healthcare is to be provided by private enterprise and not the federal government. I saw a huge opportunity to partner with other institutions that we have now acquired, and we successfully provide quality accessible healthcare to an underserved population in a way that has become a national model.

The communities we serve in the Bronx and in Westchester are much more diverse than the population in Manhattan and they are reflective of the vast healthcare needs in the U.S. We hear about the struggles to find accessible, affordable healthcare every day. We read about people foregoing basic medical care because they

Montefiore Hutchinson Campus at Montefiore Medical Center VOLUME 42, NUMBER 2

simply can’t afford it or they can’t get to an appointment. But Montefiore is on the ground working to change these stories. Our accountable care organization and population healthcare models, which reward doctors for keeping people healthy, are pioneering, and I believe they are going to turn healthcare around.

The prospect of being involved in an institution dedicated to this kind of work incentivized me to boost our philanthropic investment and, as I mentioned, part of my definition of philanthropy is not just giving money but also giving time.

Is the ability to pivot you discussed earlier necessary to allow Montefiore to stay ahead?

Montefiore is special because 10 years ago it was a single hospital with a children’s hospital and a few outlying facilities – it had no medical school and virtually no presence elsewhere. Today, it’s a system that is a teaching and research powerhouse that touches the lives of about 4 million people throughout the Bronx, Westchester and the Hudson Valley.

It is still early on in the integration of so many new entities and we are in the process of truly becoming a Health System. If we define it as a business, it’s a business that has been in the merger/ acquisition mode for a few years and is now in the process of reinvention. This is exciting and is where a business background can be helpful.

We now know a standalone hospital like Montefiore was 10 years ago will not be able to survive on its own. Hospitals will always be required in order to provide people with care, but now there are so many more options for appropriate, “right-sized” care and services that all add up to a smarter and more sustainable business model. For example, not every surgery requires someone to spend the night in the hospital, which costs thousands of dollars. Montefiore’s Hutchinson campus handles hundreds of ambulatory surgeries every week, where people come in the morning and go home at night. That’s what you call a pivot that makes sense. Montefiore is also working hard to get people to rely on primary care instead of just showing up in the emergency department.

As a general rule, underserved populations tend to use emergency departments for primary care and that dynamic doesn’t work for many reasons. It doesn’t deliver the full level of care they need for their issue; it’s vastly more expensive; and it’s unlikely the patients or the hospital will get reimbursed for those treatments.

LEADERS 9

In communities throughout the Bronx, Montefiore is working to reeducate patients about what preventive healthcare really means, so they don’t have to show up in the emergency department; this will redefine the healthcare system of the future.

Will you discuss the platform that Montefiore offers to researchers?

Research at Montefiore provides many things that are extraordinarily important for a large system such as ours.

First of all, the fact that we have a medical school, that we can do research, and that we have a diverse patient base makes our institution remarkably attractive to researchers. We have had some of the best researchers in the country come to us just because of that dynamic.

Researchers want to work at places that will allow them the greatest opportunity to solve problems that they have spent their lives trying to solve. Researchers today are also drawn to translational medicine, which involves not just solving a problem scientifically, but once they solve it, discovering how to best bring it to the bedside and how to bring the greatest benefit to the patient through the research. It’s not just research about investing, patenting, and selling a drug for a lot of money.

For instance, there are many researchers who want to understand diabetes, which will lead them to a study of obesity. At a place like Montefiore, this, in turn, will lead to having conversations with people at risk for diabetes directly in their kitchens, so they can get handson guidance about healthier food choices that might help prevent this disease.

Montefiore’s patient population base gives researchers a fertile environment in which to work on this translational medicine.

Are you optimistic that the healthcare industry is going to be able to meet the challenges of an increasingly difficult healthcare environment?

I’m very hopeful, because I’m an optimistic person by nature, but it’s not going to be easy.

Research at Montefiore provides many things that are extraordinarily important for a large system such as ours.

One of the major philanthropies we are involved with right now at Montefiore is focused on brain science. We are directly focused on brain science studying addiction, as our population faces an overwhelming struggle with addiction.

We are studying what actually triggers behaviors that define addiction, and it’s not just addiction to things like opiods, it could be addiction to food or behaviors. We’re searching for common threads in those addictions in order to understand if there are particular triggers that activate them. If we can determine what those triggers are then, like a light switch, we can learn to either dim or turn them off. This is an area of real excitement and something our foundation is thrilled to invest in.

This helps us start dealing with some of the issues that lead to chronic health problems that make healthcare unaffordable for some people today. If we can turn off the addiction to unhealthy foods, we could potentially reduce the incidence of diabetes, which is very costly to deal with.

Montefiore is a great example of this complexity.

It is a multifaceted institution that must rely on the deep technical capabilities of the board.

It is an intricate web that we are well-positioned to be weaving. For me, this is an area we can invest in, we can measure, and we can make pivots on a real time basis.

We meet with the scientists periodically and learn where they need to pivot because some of the assumptions they made a year ago may have proven to not be accurate. They know that they can come to us and ask about changing things and explain their rationale.

How has the role of boards evolved?

I’m not sure there is a uniform answer, because the role of boards in various sectors has changed dramatically.

Twenty years ago, the only role a philanthropic board was supposed to play was to write a check. The institutions didn’t want boards meddling unless they had a crisis.

Today, the complexity of running these institutions is significantly deeper than it was 20 years ago. Boards are now being called on not only for their philanthropy, but also for their technical expertise in helping deal with extraordinarily complicated issues.

Montefiore is a great example of this complexity. It is a multifaceted institution that must rely on the deep technical capabilities of the board.

With all of the impact and success that you have had in business and philanthropy, are you able to take moments to celebrate the wins?

I find myself basking in success and glory much more in the philanthropic world than I did in the business world. When I can sit around a table at Montefiore and witness a presentation by world-renowned doctors who successfully separated twins conjoined at the head in a 27-hour surgery, saving the children’s lives and enriching the lives of the family, this is a wonderful thing.

Whether or not it was my money or my expertise that contributed to supporting an institution that enabled that procedure to happen, it’s a feel-good moment.

•

10 LEADERS

VOLUME 42, NUMBER 2

1919

Cornelius Vander Starr founded American Asiatic Underwriters in Shanghai.

1927

American Asiatic Underwriters opened its headquarters at 17 The Bund, Shanghai.

S E T T I N G T H E R E CO R D ST RA I G H T

1967

Starr’s Maurice R. “Hank” Greenberg established AIG. Greenberg streamlined operations to form American International Group, Inc. ( AIG ) as an umbrella organization for many of Starr’s enterprises.

1969

Greenberg took AIG public with a market value of $300 million.

1989

Greenberg met with Deng Xiaoping, the paramount leader of the People’s Republic of China.

1990

Greenberg met with Zhu Rongji, former mayor of Shanghai and Premier of the

1992

Greenberg secured the first foreign life insurance license in China.

2018

Greenberg was awarded the China Reform Friendship Medal by Chinese

People’s Republic of China.

President Xi Jinping.

Why does this matter? Because no other global insurance company shares our long history and comprehensive experience in China, an especially complex business market. Starr is the leading name in the insurance industry with the right knowledge and relationships to help companies succeed there. Period.

2019

Happy 100th Anniversary to Starr Insurance Companies.

PROPERTY / CASUALTY / ACCIDENT / AVIATION / MARINE

STARRCOMPANIES.COM

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.

PURPOSE

A Business-to-Society Company An Interview with Barbara Humpton, Chief Executive Officer, Siemens USA

Barbara Humpton

EDITORS’ NOTE Barbara Humpton guides the company’s strategy and engagement in serving its largest market in the world, with more than 50,000 employees and over $23 billion in revenues and $5 billion in annual exports. Most recently, Humpton served as President and CEO of Siemens Government Technologies, Inc. (SGT), a leading integrator of Siemens’ products and services for federal government agencies and departments. In this role, she also served as an officer/director member of the board of directors of SGT. Prior to joining Siemens in 2011, Humpton served as a Vice President at Booz Allen Hamilton where she was responsible for program performance and new business development for technology consulting in the Department of Justice and Department of Homeland Security. Earlier, Humpton was a Vice President at Lockheed Martin Corporation with responsibility for Biometrics Programs, Border and Transportation Security and Critical Infrastructure Protection, including such critical programs as the FBI’s Next Generation Identification and the TSA’s Transportation Workers’ Identification Credential. Humpton is Chairman of the Siemens Foundation and of the Center for Strategic and Budgetary Assessments (CSBA) and serves on the board of directors of MorganFranklin, the American Heart Association Greater Washington Region, the Northern Virginia Tech Council and the Seabee Memorial Scholarship Association. She is a graduate of Wake Forest University with a bachelor’s degree in mathematics.

COMPANY BRIEF Siemens (siemens.com) is a top-10 global software company and one of the world’s largest producers of energy-efficient, resource-saving technologies. With approximately 377,000 employees worldwide, the company is active around the globe, focusing on the areas of electrification, automation and digitalization. For more than 160 years, the company has innovated and invented technologies to support American industry spanning manufacturing, energy, healthcare and infrastructure.

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With more than 60 American manufacturing, digital and R&D sites, in fiscal 2018, Siemens USA reported revenue of $23.7 billion, including $5.0 billion in exports, and employs approximately 50,000 people throughout all 50 states and Puerto Rico.

What have been the keys to the strength and leadership of Siemens USA and how do you define the Siemens difference?

Think of Siemens as a large infrastructure company. Siemens has been in the United States for more than 160 years, and has a long history advancing the hardware and technology for the things that support modern life – everything from power plants to rail systems and factories. Today, we’re also a top-10 global software company; this gives us an array of new digital tools to drive forward our mission.

In terms of what really sets us apart, I’d say that it’s two things: One is our focus on the future. The second is how we view ourselves not as B2C (business to consumer) or B2B (business to business); we’re a business-tosociety company. We’ve put together a business strategy based on the inexorable forces moving world markets and shaping our world. These are global megatrends, from urbanization to climate change to, as I say, the digitalization of

everything. We have strong capabilities in all of these areas. As we bring our technology and solutions to the marketplace, it’s consistently grounded in both creating value for customers and creating lasting value for society.

How critical is purpose to Siemens USA’s culture and what makes Siemens a purpose-driven brand?

There’s the old Milton Friedman philosophy that the business of business is business.

Our global leader, Joe Kaeser, has challenged us to see it very differently. Being a business-tosociety company means that we exist to create value for society. If we aren’t doing that, why do we exist?

We’re lucky in that we get to do this every day through our core business. Electrification brings power to underserved regions and is integral to smart cities. Efficient, clean power generation helps societies meet their sustainability and security goals. Medical technology enables healthcare providers to respond to changing demographics. Automation and digitalization drive productivity and lead to value creation for cities, industries and utilities.

This is also critical to our culture in that our employees feel inspired to come to work every day. We’re competing fiercely to recruit and retain talent alongside major tech companies and what we see is that our employees thrive

This is also critical to our culture in that our employees feel inspired to come to work every day.

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Our global leader, Joe Kaeser, has challenged us to see it very differently. Being a business-to-society company means that we exist to create value for society. If we aren’t doing that, why do we exist?

given the opportunity to use software smarts, artificial intelligence and machine learning not just to change the virtual world, but to improve the real one we live in.

Will you discuss Siemens USA’s commitment to corporate responsibility and the areas that it supports?

We have four areas of focus: access to technology, access to education, sustaining communities, and diversity and inclusion. These emerged from our business strategy, our core competencies, our focus on megatrends, and our overarching goal to improve society. It’s also rooted in our business-to-society approach.

How important are metrics in order to track the impact of Siemens USA’s CSR programs?

There’s no doubting the value of metrics.

We request consistent and accurate data from the non-profit partners we work with in our areas of focus, and we ourselves believe a company must measure value, impact and reach if it’s going to understand its own performance, benchmark itself and, most importantly, identify areas to improve. We were honored to be listed as one of the World’s Most Reputable Companies for Corporate Responsibility by Forbes in 2018.

That said, some elements of social responsibility can’t be measured. Certainly, our behaviors can, but there are intangible results – captured through storytelling – that simply can’t be translated into a data point.

How do you engage Siemens USA’s employees in the company’s corporate responsibility and community efforts?

It’s honestly not something that requires a big push from leadership. We find our people across Siemens USA are incredibly driven to give back and be involved in their communities. What’s interesting, too, is that they seem to naturally connect what they do at Siemens to what they do in their communities. As an example, the vast majority of jobs at Siemens require a background in the STEM fields (science, technology, engineering and mathematics). It’s clear to us that more must be done to inspire young people to pursue these fields in order to build a talent pipeline. In many cases, our employees are committing themselves to organizing youth STEM activities and mentoring the next generation of STEM leaders. This again strikes me as a natural extension of our business-to-society mindset.

VOLUME 42, NUMBER 2

Siemens USA has placed a major focus on b u i l d i n g a d i v e r s e a n d i n c l u s i v e workforce. Will you highlight these efforts and the importance of having diverse thoughts and experiences when making business decisions?

Siemens’ efforts are drawing recognition.

We’ve been named a top supporter of historically black colleges and universities for the last 15 years. We’ve appeared on Forbes’ Best Employers for Diversity List in 2018 and 2019. We’ve also been named a “Best for Vets” Employer by Military Times.

But we need to do even better. This is about our business and our future. Right now, we have more than 1,500 open positions across the United States. The highly skilled nature of these jobs – they oftentimes combine STEM and digital knowledge with hands-on technical skills – makes it very difficult to find qualified candidates. The labor pool is just very small so we have to ask ourselves, “Where are we missing people? Where else do we need to be looking?”

That is really why diversity matters. To attract and retain the best talent in our business, we need to be tapping into the whole population. As an example, we have looked to the veteran community for advanced manufacturing skills. We are trying to forge

closer ties with technical schools and industry associations. We have also been able to drive change in senior management through recruiting more diverse candidates into top positions, networking activities, training and mentoring.

Siemens USA has made a major impact with its CSR efforts and investments in the communities it serves. Are you able to take moments as a company to celebrate the wins or are you always focused on what is next?

We do celebrate special moments. A great example was when we recently found out that we led our industry category on FORTUNE magazine’s World’s Most Admired Companies list for the fourth year in a row. When we found out about the recognition from FORTUNE, sure, our team members in senior leadership and communications heard the news. But what about everyone else across our organization? We developed a communications strategy to ensure that this recognition – and what it meant in terms of our business-to-society agenda – reached everyone on our team.

That’s really how we celebrate – by sharing stories, because that’s what inspires others to take action. That’s what helps people see that they are part of a larger mission, and what propels our future.

•

We find our people across Siemens USA are incredibly driven to give back and be involved in their communities.

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PURPOSE

Building Brands An Interview with Michael I. Roth, Chairman and Chief Executive Officer, Interpublic Group

Michael I. Roth

EDITORS’ NOTE Under Michael Roth’s leadership, IPG has delivered industry-leading shareholder returns and organic growth, posted long-term operating margin improvement, significantly upgraded the company’s portfolio of agency offerings and presence in high-growth markets, and established a record of industryleading corporate governance, environmental and social good, and work in its communities.

COMPANY BRIEF Headquartered in New York, IPG (interpublic.com) is one of the world’s largest advertising and marketing companies. From global communications networks like McCann and FCB to domestic advertising agencies like Hill Holliday, The Martin Agency and Deutsch, to global specialists like the events marketer Jack Morton, sports marketer Octagon, and public relations experts Weber Shandwick, Interpublic agencies span the globe, employing 54,000 people in more than 100 countries, working with clients like L’Oréal, Unilever, General Motors and Geico.

How important is it for corporations today to be purpose-driven in order to attract top talent and how do you define purpose at IPG? Purpose is a very important part of what we do. IPG is a company that stands for giving back to our communities. There is no question that, if there is purpose associated with the work we do for our clients, it makes our work more effective.

Take the Super Bowl: we did some work for Microsoft and Verizon, both purpose-driven spots. I recently read that the Microsoft spot was the most effective of all the Super Bowl ads. There was a message in there, and it represented the brand.

We’re in the business of building brands and, in order to develop the relationship between the brand and consumer, the consumer has to trust the brand. Of course, they have to have a good product as well, but the consumer has to trust the institution they’re dealing with and understand what that brand stands for.

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Does purpose need to be driven at the top of the organization in order to be sustainable?

It all starts at the top. We have to define a purpose – ensure that we are doing the right thing and embed it into our business. Once that message gets embedded in the DNA of the organization, it becomes part of the way we work and part of the way we partner with our clients.

As a public company, do shareholders and stakeholders understand that doing good can also be good for business?

Yes. I was at the World Economic Forum in Davos and there were conversations on ESG (Environment, Social, Governance) and how important it is for companies and investors to ask what is being done about sustainability and climate change and important social issues.

Companies that are addressing these issues have a better shot at recruiting top talent and have better relations with clients that are on the same page. With much of the client work we do, we find that we are on the same page as our major clients when it comes to these issues. We are often on joint panels with them and work with them on many topics of shared interest.

Does IPG focus on overarching issues to support or do the individual brands have their own areas of focus?

We do both. For example, IPG corporate supports UN Sustainable Development Goal #6, which works to ensure access to water and sanitation for everyone and we do work with clients on water because of our commitment to this goal.

However, some of the work we do with clients regarding water is independent of our UN commitment – it just works out that way.

We then have our local agencies that have their own purpose programs that cover issues ranging from women’s rights to veterans’ issues to raising awareness of child abuse. We encourage our agencies to do work that meets with their mission and those of their clients. On the corporate side, we establish general principles and objectives and then the agencies take it from there.

Do you put metrics around these programs to measure impact?

We do. Diversity and inclusion is certainly a goal that we have metrics around. It’s part of the DNA of our company and we’re very proud that we lead the industry in terms of the programs we have developed.

We have objectives for all of the CEOs within IPG in terms of what programs they are advancing in these areas and what they’re doing to move the needle within their respective agencies.

Will you discuss IPG’s commitment to pro bono work?

We are very active with the Ad Council and have a long history of doing PSA work through the Ad Council. We are fortunate that, when the Ad Council is looking for talent to do this, they consider our agencies and we get to produce some great work. One of our agencies, FCB, has worked on the campaign to prevent wildfires since 1944.

Our agencies also do pro bono work with organizations they are involved with in their communities.

You mentioned IPG’s support of UN Sustainable Development Goal #6, which focuses on water. What prompted this commitment?

We’re in the business of building brands and, in order to develop the relationship between the brand and consumer, the consumer has to trust the brand.

VOLUME 42, NUMBER 2

It all starts at the top.

We have to define a purpose – ensure that we are doing the right thing and embed it into our business.

When the UN adopted the sustainable development goals, it was understood that business would play a key role in advancing them.

Our industry decided to get together to tackle these goals.

Water is an important goal to focus on – it’s critical in terms of climate change and affects so many other issues in communities around the world, like poverty, women’s education and the health of children.

Water also ties well into a focus of our clients, like Unilever, Nestle and Coca-Cola.

Do you find millennials and the next generation of leaders are focused on working for companies that have a strong purpose?

Yes. They will usually ask about it when they interview. They want to know what we’re doing about issues that matter to them. In fact, they expect it.

The efforts we have made with respect to diversity and inclusion have had a significant impact in bringing female and diverse individuals to IPG. They mention this in the interview process when asked why they selected IPG and it has a lot to do with the retention of our people.

When we take positions on social issues in public, we communicate about this to our people. We’ve even had all-company calls following issues around the world, like those in Pittsburgh and Kentucky earlier this year. The notes I get from our individuals explaining how proud they are and how important it is for them to be associated with a company that stands for these issues are really special.

We have a global leadership meeting with high-potential individuals and they ask me if I view it as important that, as a global company, we take positions on social issues and my answer is always clear – it is vital because they, and our clients, want to be associated with a company that will do that.

IPG is a company that hires creative people and is known to attract top talent.

Does this, on its own, ensure diversity or do you need metrics in your hiring practices to foster a diverse and inclusive workforce?

We still need metrics. We have done a good job with female representation – we have a number of female CEOs who’ve been promoted within the organization. But we (and the industry) still have a ways to go in terms of diversity.

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The metrics we hold our agencies to are important. I wish we could get to a point where we didn’t need to do this, but as I said, we’re not there yet.

An accurate representation of the marketplace is what we’re driving for. If our workforce does not represent the marketplace, it is challenging to appropriately and effectively communicate to a diverse consumer.

Are you looking for a different skill set with the disruption that is taking place in the industry?

We always need creative talent; they represent the secret sauce in terms of what we do.

The talent we need now is very different than when I came in. Digital capabilities and data analytics are critical along with an understanding of how they come together and how one uses a creative concept not just for a 30-second spot, but also how they apply those creative capabilities with respect to the Internet and social media.

Many look to the public sector to drive societal change, but is it the private sector that needs to lead this effort or will it be through public/private partnership?

It requires both – if both the public and private sectors aren’t involved, we won’t accomplish much.

If we think, for example, about what happens in Davos, we have the global companies like Coca-Cola and Unilever and others getting together to focus on issues.

If we put the fire power of these companies together behind a purpose in concert with an NGO that has boots on the ground to deliver on that purpose, then we make a real impact.

We are living in an environment right now where public companies are often viewed as “capitalist pigs.” It’s important for society to realize that corporations are an integral part of the solution to issues like climate change and diversity and inclusion.

Unless we have these companies working to solve these issues, we’re not going to make a real difference.

You’re in the brand-building business.

How can the positive stories of what leading companies are doing for society be conveyed more effectively?

We’re trying to do that. I’m involved in an organization called CECP – it used to be known as the Committee Encouraging Corporate Philanthropy. I was one of the

original participants in this organization and we’re trying to get the message out about all the good that corporations do. This is why The Business Roundtable is doing sustainability programs, to showcase the positive programs businesses are leading and participating in.

Our work reflects this too – you could see it in this year’s Super Bowl ads. Verizon and Microsoft did two terrific spots focused on purpose, and the reception the marketplace had to those ads is an indication of how consumers appreciate corporations that are trying to do good things. And these ads were among the most effective as well!

You give a great deal of your personal time and resources to causes that are important to you. How do you choose the specific areas where you can make the most impact?

I try to get involved in organizations that I believe in. For instance, I’m involved in the Center on Addiction, which just merged with The Partnership for Drug Free Kids. Drug addiction to opioids is one of the biggest issues in the world today. We can be of help to an organization like this in terms of messaging, media, annual reports and other marketing programs, while making an impact on a critical issue.

We’re also able to make connections between organizations that may be working on similar issues – for example, we know that New York State is involved in the opioid crisis, so I connected them with one of our agencies that has specialized in working with the Center on Addiction, so that they can pool resources. If I think I can add value, then I participate.

You were known for your leadership in the insurance industry before you joined IPG. Do you now think of yourself as a media person?

I like to think I’m a business guy. My current business has a client-centric environment and is a service business, which is the same as those I have been involved in my whole career.

Whether it is in insurance or in advertising, I deal with clients and manage and meet their needs in the marketplace.

I have been lucky to be involved with organizations with terrific, talented people. And that makes it fun and rewarding to come to work every day.

•

LEADERS 15

"It is the small details that make the biggest impact" - Joseph Moinian, CEO & Founder

MOINIAN.COM

PURPOSE

Advancing Human Health An Interview with Joel S. Marcus, Executive Chairman and Founder, Alexandria Real Estate Equities, Inc. and Alexandria Venture Investments

Joel S. Marcus

EDITORS’ NOTE Joel Mar cus co-founded Alexandria Real Estate Equities, Inc. in 1994 as a garage startup with $19 million in Series A capital. As CEO from March 1997 to April 2018, he led its growth into an S&P 500 company with an approximately $18 billion total market capitalization and a total shareholder return of approximately 1,350 p e r c e n t f r o m t h e c o m p a n y ’ s I P O in May 1997 to December 31, 2017.

Alexandria, which celebrated its 20th anniversary as an NYSE listed REIT in May 2017, is the only publicly traded pure-play office/laboratory REIT. In 1996, Marcus founded the company’s venture capital arm, Alexandria Venture Investments, to provide strategic investment capital to innovative life science and technology entities developing breakthrough therapies and technologies. Marcus introduced the company’s thought leadership platform in 2011, when he co-founded the renowned Alexandria Summit®. The Alexandria Summit convenes a diverse group of visionary partners and key stakeholders – from the biopharma, technology, agribusiness, medical, academic, venture and private equity capital, philanthropy, patient advocacy, and government communities – to address the most critical challenges in healthcare. With a focus on sustainability and philanthropy, Alexandria’s corporate responsibility business vertical affirms the company’s commitment to making a positive impact on the world.

Marcus is also personally engaged in numerous mission-critical philanthropic efforts, which include his service as Chair of the Navy SEAL Foundation’s 2017 New York City Benefit in support of the Naval Special Warfare community and their families. Marcus was one of the original architects and co-founders of Accelerator Life Science Partners, for which he serves on the board of directors. Marcus also serves on the boards of Applied Therapeutics Inc., Boragen Inc., Frequency Therapeutics, Intra-Cellular Therapies, Inc., MeiraGTx Holdings plc, and Yumanity Therapeutics; the Foundation for the National Institutes of Health (FNIH), VOLUME 42, NUMBER 2

MassBio, and Scripps Research; and the Emily Krzyzewski Center, the National September 11 Memorial & Museum, the Navy SEAL Foundation, the Partnership for New York City, and Robin Hood. Additionally, he is a member of the MIT Corporation Visiting Committee for the Department of Biology. Prior to co-founding Alexandria, he had an extensive legal career specializing in corporate finance and capital markets, ventur e capital, and mergers and acquisitions. During that time, he acquired an expertise in the biopharmaceutical industry and was one of the principal architects of the Kirin-Amgen EPO joint venture in 1984.

He was also a practicing certified public accountant and tax manager with Arthur Young & Co., where he focused on the financing and taxation of REITs. He was named one of Real Estate Forum’s 2017 Best Bosses in commercial real estate and was previously a recipient of the EY Entrepreneur Of The Year Award (Los Angeles – Real Estate). Marcus earned his undergraduate and J.D. degrees from the University of California, Los Angeles.

COMPANY BRIEF Alexandria Real Estate Equities (are.com) is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria has successfully utilized Harvard Business Professor Michael Porter’s cluster theory as the foundation for its proven cluster model, which identifies four critical components for life science clusters to thrive: location, innovation, talent, and capital.

To foster innovation and collaboration in the nation’s top life science ecosystems, Alexandria made the crucial decision to pursue its urban cluster campus strategy as the first mover in Mission Bay (2004), New York City (2005), and Cambridge (2006).

How has the mission of Alexandria Real Estate Equities evolved since the founding of the company in 1994?

Our mission is to create clusters to ignite and accelerate the world’s leading innovators in their pursuit of advancing human health by curing disease and improving nutrition. Improving nutrition is a newer goal that we’re just starting to develop.

We have a lot of agriculture technology (agtech) initiatives coming up in the pipeline, which reflects an evolution in our mission.

Our focus on advancing human health is made up of fighting disease and it is now increasingly including nutrition.

The human body must have adequate healthy food, so we focus on serving the life science and technology industries, as well as the agtech area – how the technologies relating to the agricultural industry are driving fundamentally disruptive changes in our whole farmto-table ecosystem.

That is our overarching purpose.

When you look at the focus on agtech, was this a natural progression for Alexandria?

We have been involved in this sector since 1998, when we had only been a public company for one year. However, the mega-mergers in the agricultural field that have occurred over the past two years have made it clear that the only way to disrupt the entire farm-to-table system is by spawning a whole new system of startups in the agtech area. We think now is the right time.

It has been in the works for a long time, but it has been catapulted by the M&A activity.

We now have two or three mega agriculture companies that literally control the world’s food supply, and that isn’t good.

Will you discuss Alexandria’s verticals?

Our business is built around four business verticals. The overarching larger vertical is real estate – the infrastructure and collaborative campuses that we build to support entities like life science and ag companies. What happens on these campuses is intertwined with our other three verticals.

The other three verticals are corporate responsibility where we focus on sustainability, philanthropy and volunteerism; thought leadership – we recently hosted our second agriculture-focused Alexandria Summit; and venture LEADERS 17

investments where we invest in and support startup to early-stage life science and technology companies building the next generation of therapies.

Bringing these elements together creates thriving centers that incorporate our cluster model, which guides how we select our real estate hubs, and build collaborative, sustainable campuses that enable scientific and technological breakthroughs to benefit humankind. It has really taken off and become a great model.

The cluster model has worked well for life science companies because they innovate together and they’re purpose-driven around therapies – there are 10,000 diseases that have been identified and only 500 therapies to date, so we’re in the early innings. These life science companies are all about trying to cure or retard disease that will help mitigate the whole healthcare burden personally and financially.

The tech sector tends to be more interested in disrupting businesses, but they also focus on enhancing the way people live and work.

The agtech industry is purpose-driven because the nutrition effort, similar to fighting disease, is bringing healthy, fresh, and costeffective food to the U.S. Was the cluster model built around providing a collaborative environment?

Absolutely. The life science industry thrives on that. Very few people in that industry would not want to be in a cluster; the same is true of the agtech world.

We have found that technology companies are not collaborative because they don’t want other companies taking their technology or poaching their people. However, the elements of the cluster model, such as having access to top talent, are attractive to the industry and they do want to be on our campuses.

We were ahead of that curve because, historically, life science companies did not want to collaborate with institutions and other companies either. Now, the model that they have all adopted is based on our cluster model.

In the ag business, you mentioned that two or three companies control that business globally. How challenging is it to disrupt that model?

It’s easier than one thinks. Bayer bought Monsanto, Syngenta got bought by ChemChina, Dow and Dupont merged, and BASF is out there.

There are a handful of dominant companies that control the whole global ag effort.

What has happened because of that is that the larger they get, they can’t deal with innovative new technologies so they’re now looking outside to have startups and spinouts help them rethink the entire ecosystem.

A lot of people have left these companies and are now starting companies. It’s a perfect time. They’re embracing it, but they’re not very good at it yet.

In the biomedical area, the federal government supports basic research and makes us the leader in the world to the tune of $40 billion from the National Institutes of Health. The U.S. Department of Agriculture and the related departments spend less than $1 billion on ag research.

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China is the dominant force – they bought a number of large companies and they’re tying up all kinds of agricultural sites around the world. There is a great need to step up funding for agriculture in the U.S. Alexandria’s culture, even at its size and scale, remains entrepreneurial and nimble.

How critical is it to maintain that culture in order to move into new areas and adapt quickly to a changing environment?

We’re almost a $20-billion market cap company, which is hard to imagine since we started with $19 million.

We don’t have an organizational chart.

When we hire, everybody tries to check their egos at the door and we try to really have a mission-driven focus at all levels of the company. That has been the secret sauce in trying to get things done.

We all make deals, but we also make the coffee, so nothing is too small to deal with.

We’re also big thinkers.

We encourage everyone to be super entrepreneurial and not think like they work in a structured corporation.

Will you highlight Alexandria’s commitment to building a diverse workforce?

Diversity is fundamental to our culture.

We don’t focus on hiring a certain number of people in certain groups, we focus on hiring the most qualified candidates.

We think about who the greatest person is for the role we need, and it always works out.

I don’t like a view that is focused on pure quotas. The government loves quotas, but that’s not a way to operate a business.

How do you focus Alexandria’s corporate responsibility efforts?

I work specifically on our philanthropy and volunteerism efforts. We see this as a critical role in helping our mission to advance human health. We focus on four core areas: first, biomedical research to help discover drugs and new technologies that will help cure disease.

We’re funding some of the premier biomedical research institutions across the country in helping to bridge that gap between basic science and translational research and also supporting some translational research.

The second is STEM education – without the next generation of scientists and computer programmers and engineers, we’re at a loss to imagine where our innovation industries will go. STEM education is extremely important to us, so we fund a variety of efforts. For instance, in New York City, we’re a founding supporter of Computer Science for All. That is an initiative to bring computer modules and computer science education to every single New York City public school student by 2025. That is 1.1 million students every year. Kids don’t have computer science classes even through high school – it’s shocking. This is a really scalable effort and it is being run by Fred Wilson of Union Square Ventures and is a really effective program.

In addition to biomedical research and STEM education, we also do a lot in our local communities – the communities in which we

live and work and in which our tenants live and work. That encompasses everything from school supplies for kids in a local underserved school to homeless shelters.

Then we also feel it’s important to support military families. These are the men and women who are going out every day and risking their lives so we and our tenants can work every day and we are honored to support them and their families.

Those are the areas we focus on, but we impact those areas in a variety of ways and we try to engage our team members throughout the company.

We participate in corporate giving and we’re quite philanthropic in that respect, but we have a lot of programs that allow team members to get involved: matching gifts; a volunteer rewards program that rewards those who volunteer on their own time; quarterly engagement opportunities so every office has a volunteer opportunity each quarter at a local charity; and, of course, volunteer time off in the form of two paid days a year for folks to volunteer at a charity of their choice.

One of the more interesting programs we launched when we revamped our philanthropy and volunteerism program a year and a half ago is a program we call Alexandria Access.

It’s a program that allows our 400 employees to access Alexandria’s network of expertise.

After over 25 years in the industry, our various executives have an amazing network, which we have developed through our summits and our real estate, as well as through our venture investments. When families or their loved ones are facing illness or injury and can benefit from some guidance, we have a mechanism here for them to reach out and be connected with an expert who can, hopefully, offer them a second opinion or help them get in to see a doctor they might not otherwise have been able to see. It’s a really fabulous benefit for people when they’re unfortunately in need of something like that.

All of these efforts support our mission, and they’re core to the culture here and to all the employees’ everyday experience as an Alexandria team member.

Is it difficult to make long-term investments with the short-term, quarter-to-quarter pressure for results?

It’s not hard to do it because we’re uniquely focused. We’re not a real estate company that is wrapped up in the deal or the financial return.

We started this whole life science real estate niche with the purpose of helping to solve human diseases.

This is such a natural part of what we do – we think of it every day; it is not something we strain to do. It’s part of our DNA. I spend a lot of time as a board member of mission-critical social responsibility organizations, and one of the most important things each of us can do is to participate in a number of ways with such things.

We don’t even give it a second thought – it’s part of our culture and DNA.

•

VOLUME 42, NUMBER 2

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PURPOSE

Passion and Purpose An Interview with Sam Zell, Chairman, Equity Group Investments

Sam Zell

EDITORS’ NOTE Sam Zell is a global, opportunistic and often contrarian investor. He specializes in identifying market anomalies and emerging trends and has a long track record in turning around troubled companies and assets, leading industry consolidations, and bringing companies to the public markets. Much of his investment portfolio is in energy, logistics, transportation, manufacturing, communications and healthcare, but he is often best known for his pioneering role and stewardship in creating the modern commercial real estate industry. Zell is the Founder and Chairman of Equity Group Investments, a private investment firm. He chairs five companies listed on the NYSE and also chairs Equity International, a private equity firm he founded to focus on real estate-related opportunities outside of the U.S. Zell is recognized for his advocacy of corporate governance, particularly in real estate and in the emerging markets. He is an active philanthropist with a focus on entrepreneurial education.

Zell holds a J.D. and a B.A. from the University of Michigan. He began his career in real estate while still an undergraduate. Zell’s book on how he became a self-made billionaire is called, Am I Being Too Subtle?

COMPANY BRIEF Equity Group Investments (egizell.com) is a private investment company.

Its founder, Sam Zell, pioneered the public equitization of the commercial real estate industry through the creation and leadership of Equity Residential, Equity LifeStyle Properties, and Equity Office Properties Trust. EGI’s investment portfolio encompasses a broad range of corporate and real estate interests, a small sampling of which includes Anixter International, Covanta Holding Corporation, Ardent Health Services, Exterran Corporation, RailUSA and Par Pacific.

What are the keys to effective philanthropy?

I remember doing my taxes one year in the 1980s. I had given $1,000 to a hundred different organizations and realized I felt none of it was making any real impact. That ran counter to everything else I did in my life.

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My career has been all about making an impact – changing something for the better – and it has worked because I am personally involved. I set a vision, give guidance on strategy, establish accountability, manage risks and so on.

It dawned on me that day – if I wanted to really make a difference in my philanthropy, I had to apply the same approach. I had to combine my own passion with a focus. In other words, I had to invest both financial capital and personal capital.

I went from giving $1,000 to everybody and having nothing to do with any of them to narrowing my contributions down to a few areas I felt very strongly about. I wanted part of their success to be based on my involvement. I wanted to stand behind and lend strength to program leadership executing the day-to-day work.

Will you elaborate on the power of passion?

I get asked all the time about why so many of the people I hire stay around for so long.

We have an inordinate number of people – at all levels – who have grown up within our Equity-related companies and have been here for decades. I respond by talking about passion, and the fact that we need passion at least as much as we need intellectual quotient, maybe more.

Passionate people tend to be self-starters.

They are invested in the outcome, and they tend to have a sense of urgency to get there. My role is to give them the opportunities to stretch and to guide and support them. Together, that’s a powerful combination.

What are your philanthropic focus areas?

Education, entrepreneurship, Jewish day schools and medical centers are our main focus.

We created The Helen Zell Writers’ Program, which encourages creative writing and has been phenomenally successful. The alumni have gone on to win all kinds of awards. What’s fascinating about this arena is that a lot of money is donated to high-tech and business education, but there is very little given to literature, science and the arts. The idea that we’re allocating significant capital to develop and grow the best creative writing program in the country in partnership with the University of Michigan is rewarding.

We’re also proud of all the work we have done in entrepreneurship. If I’m successful in my mission, I will have weaponized a whole cadre of future business leaders. In Israel, with the Zell Entrepreneurship Program, we have 400 alumni who have collectively monetized their start-ups for almost $1 billion, which is really incredible. We have also created a broader community, combining the students and alumni of our other entrepreneurship programs at University of Michigan and Northwestern, and now they all mentor each other, support each other and invest with each other.

Like everything else, sustainable success ultimately revolves around who else climbs onboard, because I’m just one person and, although I have a big checkbook, checkbooks aren’t enough. We need an idea that is strong enough to attract the right kind of people who can perpetuate what we’ve started.

Will you touch on your focus on Jewish day schools?

I’m all for education, and in an unexpected way, Jewish day school education has a big impact on urban development. Part of the reason that I encouraged my family to endow the Jewish day school in the middle of the north side of Chicago was because I knew that its existence would have a significant impact on building and keeping a robust Jewish community in the city.

My encouragement was without any sensitivity to whether the school’s doctrine was conservative, reform or orthodox. I was promoting culture, not religion.

Now we have done the same thing with a high school in the suburbs. I am a big believer because I’m worried about assimilation and about the future of the Jewish community, and I’m looking for ways to perpetuate it.

I had a conversation with someone recently who wanted me to contribute to the creation of a museum in Jerusalem. I told him that the last time I checked, there was no shortage of museums in Jerusalem. However, there is a shortage of people committed to Israel.

Allocating my capital to increasing the American-Jewish connection is important to me. I’m also concerned about divestment and the fact that we have a Jewish community in the United States that takes great pride in separating from Israel. I don’t think that is a good idea.

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What about the medical arena?

In the medical arena, we have primarily focused on things that have affected our family. Hopefully, if we solve a disease that one of our children has, it will benefit millions of other people with that disease. Knowing that I may be laying down a marker to help cure a problem that one of my grandchildren has is pretty heady stuff.

I have prioritized my philanthropy to focus on areas in which I have a personal connection and, therefore, a passion. At the same time, I want my contributions to solve the problem we’ve identified while also benefiting mankind.

On the business side, you are known as being results-oriented and metric-driven. In philanthropy, is it harder to track impact?

Of course, and many donors don’t demand metrics or hold the recipients accountable. My methodology of approaching this has been to stick my toe in the water, get a better understanding of the organization, it’s people and it’s potential.

I started the Israeli entrepreneurial program by underwriting a very small part of it for the first five years. It was only after I saw how they seized the opportunity and implemented the program that I increased my involvement.

Then, 10 years in, I endowed it because I was confident about what they were doing and the direction they were headed.

We did the same thing with the writer’s program in Michigan. At first, we just endowed a chair. Then we watched how the university and the program interfaced with that. We then began to support a few students, and then a few more and, eventually, we made a major gift to underwrite the program – but only after there was unquestionable passion shown on their side.

Sam Zell with a Kellogg student at a Zell Fellows start-up showcase

There have been circumstances where it hasn’t worked, and I have stopped supporting a program. There was one case where I made a $10 million commitment of $1 million a year for 10 years, but I didn’t feel like I was connected to it, and the program just stalled. It was a difficult decision to terminate that program but, interestingly enough, I ended up supporting something else at the same institution.

Many people assume that job growth comes from Fortune 500 companies, but most of it is driven by small business and start-ups. Is the impact of entrepreneurial companies well understood?

Sam Zell teaching a class at the Zell Lurie Institute at the University of Michigan Ross School of Business VOLUME 42, NUMBER 2

I first got involved in an entrepreneurship program in 1979. What stimulated me was the fact that I had read through the curriculum for the University of Michigan business school and the word “entrepreneur” didn’t seem to exist. I couldn’t understand how that could possibly be the case. Then I discovered that this wasn’t the only MBA program that didn’t recognize entrepreneurship. They all thought it was junk science.

Fast forward to today and the answer is very different. I think the contributions of entrepreneurs to the economy, job growth and innovation is much better understood and appreciated.

Entrepreneurs are and continue to be a basic tenet of what this country is all about.

You have a global perspective and run global businesses. Is the U.S. still the leader in innovation and entrepreneurship?

It is very important to define what America’s edge actually is. Our edge is freedom – the freedom to pursue opportunity, to go left when everyone else is going right and to not be ostracized because of it – to fail, get up and chase opportunity all over again.

When immigrants come here, the thing they’re most overwhelmed by is the opportunity – not that anyone is going to give them anything. They love that they can stake out a direction, pursue it and succeed.

And if they fail, that is acceptable within our society, and they can start again. We’re the only country in the world that has Chapter 11.

In England, if you go broke, you’re liquidated; same in Canada.

My father talked about the fact that the streets in this country were paved with gold.

What he was saying was that, as opposed to other parts of the world, there is unlimited opportunity here.

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Students at the Zell IDC (Interdisciplinary Center Herzliya) in Israel who participate in a one-year program for those who aspire to work in an entrepreneurial organization or start their own business

Unlimited opportunity coupled with the rule of law will keep the U.S. in a leadership position. China is doing incredibly well, but in China there are limits to what one can do.

I think, in many cases, they are seeing the impact of these limits now. Think about the thought process behind the one-child policy.

Effectively, it wasn’t open to a lot of conversation. Somebody made the decision; it didn’t seem to be a problem and, then, all of a sudden, time caught up with them. Now, the largest country in the world has a ratio of older to younger, working-age people that is going to become extraordinarily burdensome and carry with it all kinds of other implications, none of which were thought about at the time someone made that decision.

Once a decision is made in that environment, it’s very hard to change it. In the U.S., we change our direction as often as we change our underwear.

When you’re searching for talent, are you looking at the resume or is it more about personality and drive?

The resume establishes a minimum skill level. I don’t have an interview with anyone whose resume doesn’t meet the standard bar.

Then it’s a question of how motivated they are and how driven they are; those are the things that lead to success.

You have a structure that allows autonomy for your people, but you always know what is going on. How do you accomplish this?

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I am always available. I’m the chairman of everything, and the CEO of nothing, so I don’t have a lot of direct reports and my door is always open. I have a steady stream of senior people in and out of my office all day long, touching base and looking for direction or guidance. Most of them have been with me for decades but, even if they haven’t, they quickly learn our rule of “no surprises.” That means keep me informed, operate with transparency, don’t take on big risks without checking in – and whatever you do, don’t cover up problems.

Bring them to me early on and I’m confident we’ll be able to fix them.

Although I delegate a lot of authority, I’m highly accessible – and that develops strong players. Someone who delegates authority but then closes his door makes their people a lot more uncertain and, therefore, they act more like managers than owners. I’ve always wanted owners.

It’s about much more than selecting the people; it’s about creating an environment that fosters a tribe-like culture, where you don’t develop enemies from within, and the internal sense of competition stays focused outside our walls.

The minute there is a lot of internal competition, information becomes currency and that is a formula for destruction.

How important is it for you that your philanthropic work leaves a lasting impact?

We now have almost 400 alumni from the Israeli program and 1,100 from the University of Michigan program. I don’t have to hit a very high percentage of winners from those programs to make a lasting difference. I like those numbers.

Do you take moments to appreciate what you have built and celebrate the wins?

There are times when I stop for a second and recognize that I have been lucky. So far, I’ve gotten to do almost everything I wanted to do. However, those are generally fleeting moments because there never is a stop to the challenges.

I could stop them by going to play golf, but why would I do that? My day-to-day is much more fun. Maybe as I get older, I will reduce the number of challenges I take on, but I doubt I will ever shift to a different personality.

How much of your success do you attribute to luck?

Depending on how I feel about myself on a given day, the percentage could range from 10 percent to 90 percent, and then an hour later it might be 60/40.

I don’t even really know what luck is.

Is luck noticing there’s an oversupply and, therefore, potential opportunity in a certain industry? Is luck reading about changing legislation and seeing where it will cause disruption? I don’t know. I do know, at least in my business, luck must certainly be enhanced by a keen sense of awareness.

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VOLUME 42, NUMBER 2

REDUCE THE RISK OF HEART DISEASE AROUND THE WORLD. HOW’S THAT FOR A MISSION STATEMENT? Mount Sinai has launched an unprecedented global effort to promote cardiovascular health. We’ve established programs that highlight the risk factors for heart disease and help kids develop healthy habits. It’s a lofty goal to be sure. But that’s all the more reason to pursue it. Which hospital you choose can make all the difference. mountsinai.org

PURPOSE

Philanthropy in China An Interview with Yue-Sai Kan

Yue-Sai Kan (second from right) visiting Tara, a reseach vessel

EDITORS’ NOTE Chinese-American Yue-Sai Kan (yuesaikan.com) is an Emmy-winning television producer, best-selling author, entrepreneur and humanitarian. Her Looking East television series was the first nationally-syndicated program to introduce Asian cultures to American audiences.

Following her success in the United States, China’s national network, China Central Television, invited her to produce and host One World, giving millions of Chinese their first look of the outside world.

In 1992, she successfully transformed herself from a TV personality to an entrepreneur by creating the Yue Sai Cosmetics brand, which is recognized by over 90 percent of the Chinese population today.

She has written nine best-selling books, spreading the knowledge of beauty, etiquette, health and success among Chinese readers. Her humanitarian efforts have primarily been focused on education and children. She has built schools and libraries in her hometown of Guangxi and other underprivileged regions throughout China. She awarded scholarships to students in a number of colleges in China as well as Hunter College and the Fashion Institute of Technology in New York. Since 2018, she has served as the Co-Chair of China Institute in America. She also sits on the boards of the Ellis Island Honors Society, Committee of 100, and Prince Albert of Monaco’s Philanthropy Roundtable. Yue-Sai Kan is the first and only living American featured on a Chinese postage stamp.

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Training at the Safety for Mother and Baby program

What makes philanthropy so important to you?

It started when I was young. There are many ways of participating in philanthropy.

In my father and mother’s generation, philanthropy was never organized.

Philanthropy is a huge business in America, but with the old Chinese, the most important thing about philanthropy is that the family takes care of itself. This is their definition of philanthropy.

Under Communism, the government is supposed to take care of everything. They give people tickets to buy their meat, rice, and oil, and a home to stay in. That is what the state is supposed to do. So the government used to be embarrassed to see people raise money for disaster relief or other causes. Some people were admonished for doing that. Then things began to change. The Open Door Policy initiated in the late 1970s brought about tremendous changes economically and socially.

Chinese people began to accumulate wealth and started to support philanthropic causes. The new wealth allows the Chinese to now think of other people. In the old days, they would only think about leaving money for their children. It’s no longer like this. The government’s attitude also changed. Today, for example, the Chinese government gives an award to outstanding philanthropists.

In my particular case, I remember the first philanthropic endeavor I had in China was in 1985 in partnership with the Chinese Women’s Federation because I had a cosmetics company at that time, and they asked me for support.

I donated $1.5 million to the United Nations’ first women’s conference in Beijing.

To give that kind of money away was very new – in the U.S. sense, it is probably not a lot, but in those days in China, it was a lot of money. I was very proud to support an international gathering of leaders to discuss women related issues. It was also the first world class event China hosted successfully, then the Beijing Olympics followed, and then the World Expo.

Subsequently, I started doing philanthropy in rural areas in China where the mortality rate of children was so high. Mothers had no access to modern facilities to give birth. We called it the Safety for Mother and Baby program. We decided to do the first charity event to raise

money to buy ambulances and build small clinics where doctors could be there to help with deliveries of babies. Eventually, through a foundation, we built thousands of those clinics around the country.

I remember we set the price of a ticket at $2,500. At that time, it was difficult to sell a dinner for $100 a seat. People thought it was a joke. But through our efforts, they quickly got used to the notion. At the last fundraising event I did in Shanghai, I was selling tickets for $5,000 a seat. That is the difference between 10 years ago and today.

We also chose to make the final competition of the Miss Universe China Pageant a charity event. Besides choosing Miss China, we also raised money for charity. The first year we did it, we made about $1.5 million and donated it to a charity called Smile Train. We have helped a lot of children around China get operations for cleft palate for free.

I also sponsor and support the Tara, the big boat that goes around the world measuring changes in the ocean. It will go to China and measure the ocean, and the earth under the ocean, to ascertain their condition. When the boat returns, we will mobilize 5,000 students to go to understand the environmental impact.

Philanthropy in China has grown and people are receptive to philanthropy and actively doing it.

Do you put metrics around your philanthropic work as you do with your business activities?

It’s much harder to do this with philanthropy, but I do try to concentrate my efforts.

Instead of sitting on one of the bigger boards, I decided that since I’m Chinese and the China Institute had been around for 92 years, I should put my efforts into this organization to help it survive. I could do some good for other organizations, but I can have the most impact for China Institute. It’s a wonderful organization that advances a deeper understanding of China through programs in education, culture, art and business.

We recently moved from a small townhouse on the Upper East Side to Downtown Manhattan so we have a much bigger space for our programs. We are in the middle of a capital campaign to raise enough money to build out the two floors we have – very exciting and challenging.

I want to do this to help China Institute grow and then I will think about other things.

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LEADERS

ADVISORY China Reform Friendship Medal Maurice Greenberg Maurice Greenberg, Chairman and CEO of Starr Insurance Companies, a leading global insurance and financial services organization, was one of 10 foreigners awarded the China Reform Friendship Medal by Chinese President Xi Jinping on December 18, 2018.

The award was presented at a ceremony at the Great Hall of the People in Beijing and celebrated the 40th anniversary of China’s reform and opening-up.

Mr. Greenberg first visited China 43 years ago and built a partnership for his insurance company with China. He joined Starr as Vice President in 1960 and consolidated a number of insurers into the company to form American International Group, Inc. (AIG), which became the largest and most valuable insurance and financial services company in the world.

Having traveled to China every year since 1975, Mr. Greenberg states, “I first went to China in 1975 because I believed the country would not be kept out of the world trading system and would continue to be around for a long time.”

His early visits led to a partnership between Starr Companies and People’s Insurance Company of China (PICC), which at the time had only a few hundred employees in Beijing. Both companies agreed to reinsure each other, and Starr Companies helped PICC train its workers.

VOLUME 42, NUMBER 2

Mr. Greenberg has noted, “We agreed to reinsure each other, and even though the business was small, the significance was that we started something.”

In 1992, Starr Companies became the first foreign company to receive a whollyowned life insurance license in China, which helped open up China’s financial services industry to the United States.

Mr. Greenberg helped to establish the agency system for life insurance in China, which created more than a million new jobs.

He has been vocal about China’s development opportunities and has supported mutually beneficial cooperation between China and the United States. “As China continues to grow its economy, it is also learning how to serve as a responsible stakeholder in the global community,” Mr. Greenberg said.

Mr. Greenberg has devoted much of his life to supporting closer U.S.-China relations and has provided advice and guidance on China’s reform. “I spend a great deal of time on U.S.-China relations because it’s the most important relationship in the world today,” he says.

He has been awarded honorary citizenship in five cities in China – Shanghai, Beijing, Guangzhou, Chongqing and Wuhan.• LEADERS 25

PURPOSE

Effective Philanthropy An Interview with Sanford I. Weill EDITORS’ NOTE In 1955, Sandy Weill graduated fr om Cor nell University and began his career as a runner for Bear Stearns before becoming a broker. After a storied 50-year career on Wall Street, he r etir ed as CEO of Citigroup in 2003 and retired as non-executive Chairman in 2006. Weill was the recipient of Financial World magazine’s CEO of the Year Award in 1998 and received the same honor from Chief Executive magazine in Sanford I. Weill 2002. He is Founder and Chairman of the National Academy Foundation (NAF) (since 1980); Chairman of the Executive Council of UCSF (since 2015); Chairman of the Lang Lang International Music Foundation (since 2015); President of Carnegie Hall (Chairman for 24 years, on the board for 36 years); Chairman Emeritus of Weill Cornell Medicine (Chairman for 20 years, on the board for 35 years); Member of the Board of Visitors of UC-Berkeley; and Member of the Chancellor’s Board of Advisors of UC-Davis.

Weill is a member of the prestigious American Academy of Arts & Sciences, and he and his wife of 63 years, Joan, are recipients of the 2009 Carnegie Medal of Philanthropy.

Will you discuss the keys to effective philanthropy?

There are a million not-for-profits that donors can support, so I always look at it from the point of getting a return on the investment.

I also believe that a donor’s first contribution will not usually be the last if the institution does well.

When my wife and I contribute, you just don’t get our money, you get our time, energy, experience and intellect. We get involved personally so we can offer what we might know that is different than what the others involved know, such as doctors and musicians.

For example, during the Great Recession and for the next five or so years, all of our not-for-profits did well – Alvin Ailey, Weill Cornell, Carnegie Hall, National Academy Foundation; none of them lost money in any of those years because of the expertise we were able to help provide.

My problem was that my for-profit company became a not-for-profit during this time.

With so many areas of need, are there specific issues where you feel that you can make the most impact?

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The oldest of our philanthropies is NAF, which was started with one school in Brooklyn in 1980 in partnership with the Board of Education in New York and the Teacher’s Union. Thirty-nine years later, I’m still the chairman.

We are now doing something that I think is going to revolutionize our ability to grow and add new academies in different cities. We have just signed a partnership with University of California, Berkeley, which is an unbelievable school for both science and the arts. They are going to partner with NAF and create an internship for NAF students for three weeks in the summer after the 9th, 10th and 11th grade, so these kids will have three summers living on the campus and learning what college life is like, as well as getting to spend time in some of the National Labs which reside on Berkeley’s campus.

They will learn how to code and will learn where the jobs of tomorrow are, not the jobs of two centuries ago.

We are talking to four other universities of the same caliber in different states where we hope to replicate the Berkeley model. We plan to build it out around the country in partnership with great institutions that are looking to diversify their offerings and have a more diverse student body.

We have 110,000 students in NAF right now, of which the great majority – around 85 percent – are on meal plans so they are from very poor neighborhoods that normally don’t present many opportunities.

One of the biggest problems in the U.S. today is the gap between the haves and have nots. People who have the chance to get a great education that prepares them for the opportunities out there are making fortunes. On the other hand, the great majority of people are left behind.

Less than 4 percent of all American engineers are African American or Hispanic, and only about 13 percent are women. Together, these 3 constituencies make up about 80 percent of our population.

If we don’t figure out a way to open these kids’ eyes to show them opportunities, because most kids don’t know how to find them, then we will have a big problem in this country.

Is that an issue that needs to be addressed as a public/private partnership?

It’s going to have to be solved in a partnership. We have to work at it in a way that it can be replicable.

The best way to do this is with the public schools, which are all mainly controlled by the unions, so there has to be a partnership with the unions also.

When we establish this, we have a model that can grow, whereas the charter schools happen one at a time and, while many of them do good work, some don’t. It’s hard to make charter schools scalable.

Business leaders across all segments talk about the K-12 education system being broken. What has made NAF work so well and what differentiates it when it comes to achieving results?

NAF really is a public/private partnership.

We want the kids to be college and career ready, so we have mentors that work with them and we help the kids get summer internships with companies in the area they’re interested in. We operate in 35 different states, including the District of Columbia, and we have 4,420 advisory board members who have a vested interest that these kids succeed.

We now have five career academies in engineering, health sciences, information technology, finance, and hospitality and tourism. We are also flexible enough to help develop programs that cut across our five different themes, such as in the airline industry. Last year, 99 percent of our NAF seniors graduated with 87 percent going on to college, usually the first in their family to do so. Given these results, I believe we have a model that works.

The health and medical arena has also been a focus that you have been involved in for a long time. What made Weill Cornell the right partner for you?

I graduated from Cornell and I was on the board of the university, but it is located in Ithaca, New York, which is not easy to get to from Manhattan.

I wanted to give something back to the school. They had a medical school in New York so I decided to try that, even though I can’t stand the sight of blood.

What I discovered early on from my involvement with Weill Cornell is that I was able to help a lot of people get appointments with the right doctor and help lead them through the difficult maze of understanding and interpreting medical lingo. We ended up spending 30 percent of VOLUME 42, NUMBER 2

NAF really is a public/private partnership. We want the kids to be college and career ready, so we have mentors that work with them and we help the kids get summer internships with companies in the area they’re interested in.

my secretary’s time assisting people that worked in our company or friends to get them appointments in a timely way.

It was very rewarding because we were helping many people who were facing very severe issues and seeing good results made us feel good.

As this progressed, I became interested in international expansion – one of the things that makes Weill Cornell unique is that in 2000, the school started talking with Qatar. In 2001, we signed an agreement to build a medical school there, which is taught by our doctors. That program is now 18 years old and we’re in the process of negotiating the fifth five-year term.

It has been incredibly successful. There are half as many students in Qatar as we have in New York, but the kids have done incredibly well.

Most come to the U.S. to do their residencies and about 95 percent get their first choice of where they want to go.

We’re dealing mainly with the Muslim population, but they agreed to have all the same governance rules we have in the U.S. and to this day, we are still the only U.S. medical school that gives a U.S. MD degree outside the U.S. in an Arab country, which I’m very proud of.

We also got involved in Tanzania where a Maryknoll missionary, Father Peter Le Jacq, who is also a graduate of Weill Cornell, was involved in a hospital there with only two doctors serving 17 million people. Fifteen years ago, we started a medical school there, which is a partnership between Weill Cornell, the Catholic Church, and the government of Tanzania. We have now graduated 1,000 doctors. It has changed the whole society, and maybe that can be replicated. I’m also very proud of this.

I’m now concentrating on neuroscience because the brain is the most complicated part of what makes us who we are, and we don’t know that much about it yet. We have made unbelievable progress in cardiovascular diseases and cancer, so people are being cured in many of those areas so they can live longer. We have to do a lot more to find ways where we can prevent many of these problems from happening through science.

In pursuing this, I have gotten very involved in California with UCSF and also with UC-Berkeley, which has two of our national labs on their campus. Berkeley has world class basic science, but they don’t have the ability to do clinical trials and they don’t have a medical VOLUME 42, NUMBER 2

school. Fortunately, UCSF has both. I’m trying to create a program where neuroscience from both universities can come together so we can have some of the best people in the world working together in that area.

It is fun putting together things like I did in business. The people really want to do it – they like each other. Last year, we hosted a square dance at our home in Sonoma where we had 60 people from Berkeley and 60 people from UCSF. It turned out that people make a lot of mistakes in square dancing, so they’re forced to meet other people and work together.

We’re making a lot of progress with this and it has kept me very busy. I have become involved in three of the public institutions that are in the Bay Area – UC-Berkeley, UCSF and UC-Davis, which has very good agriculture and vet schools and a growing medical school.

Will you discuss your passion for supporting the arts?

I played a bass drum in the military band and, to me, the greatest composer in the world was John Philip Sousa. I didn’t know much about Beethoven, whose 250th birthday we’re celebrating this year at Carnegie Hall.

After I sold our company to American Express, a fellow board member of mine at American Express who was also on the board of Carnegie Hall approached me about getting involved with the legendary concert venue and felt I would like it.

When I joined the board in 1983, they were just beginning to raise enough money to remodel the hall, which looked like it would be a $60 million job at that point. I didn’t know anything about raising money, but I have never been laid back and quiet, so I would open my mouth at meetings and that led to them asking me to be the chairman of this fundraising effort. I said I would try if Jim Wolfensohn would be the co-chair with me and we could do this thing together.

We ended up raising a lot of money. I became a pretty good fundraiser in a city where, after 20 years of doing it, very few people go out to lunch with me anymore because they know it will be very expensive.

I just loved it. I learned so much from Isaac Stern, and when Jim Wolfensohn left in 1991 to go to the Kennedy Center, Isaac asked me to be the chairman. Isaac was a great mentor to me, not just in music and running a music hall, but also in life, business, politics, the arts and even vodka.

Will you discuss your investment to complete the concert hall at Sonoma State University and have you been happy with the impact it has made?

We got excited about the opportunity to try and help Sonoma State build a reputation and put the university on the map. I think we got lucky and ended up building a great hall where the acoustics are really fantastic – maybe the best in the country for a hall where part of it can be opened to include people both outside and inside.

We looked at it as an opportunity to give back to our community and attract the best artists from all over the world to perform there because they liked the hall. It is a welcoming kind of hall and the orchestra can hear their own music performed on this great stage – it is really outstanding. Plus, it is a destination located in the heart of wine country which boasts world class food, wine and weather.

We built a terrific board and were able to raise a lot of money from some very generous donors, including a $15 million gift from Mastercard, which was the biggest gift a CSU school had ever received.

Like others who are very successful in business, you are a builder. Do your business skills naturally translate to your philanthropic efforts?

I think so. No one thought I would ever retire, but I was able to start another career because I had been involved with philanthropy for decades while I was still in business. When I was 65 and chair of Weill Cornell, my wife was chair of Alvin Ailey. I was also chair of NAF and Carnegie Hall while I was executing the largest merger of two companies that had ever been done when we put Travelers and Citicorp together to form Citigroup.

I was able to do all these other things but could not spend as much time as I would have liked on philanthropy. When I retired from business, it gave me more time. I always tell CEOs that their companies will be more successful if their employees see that they’re personally involved and passionate, and that they want to make the communities where their employees live and work better places.

Most of these CEOs tell me they don’t have the time because they are too busy. I don’t buy it. I am a big believer that the busiest people can always do more. If someone has a lot of time available, there is probably a reason that is the case.

•

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IT ALL BEGINS WITH A VISION Unique moments deserve celebrations beyond extraordinary.

ASPIRE at One World Observatory 285 Fulton Street, Floor 102 New York, NY 10007 ASPIREnewyork.com | 212.602.4090 events@ASPIREnewyork.com @ASPIREnewyork

PURPOSE

Diversity, Culture and Education An Interview with Howard P. Milstein, Howard & Abby Milstein Foundation E D I T O R S ’ N O T E H o w a r d P. You have a long history supMilstein is the third generation to porting public television and lead the Milstein family business recently became a primary sponsor and philanthropic activities. An of Henry Louis (Skip) Gates’ new entrepreneurial builder of innoprogram Reconstruction: America vative, lar ge-scale companies, After the Civil War, which will air Milstein’s ability to marshal busithis Spring on PBS stations across ness, government, philanthropic, the nation. Will you discuss your and family r esour ces d r i v e s a involvement with public television? br eadth of initiatives. Milstein Sponsorship of PBS programs is Chairman and CEO of New York is a perfect example of how our tarPrivate Bank & Trust, chairs and geted support can further understandoperates the Milstein family’s real Howard P. Milstein ing of our nation’s diverse history and estate companies, and is also its impact on community and civic life owner and publisher of GOLF magazine, today. Reconstruction: America After the Civil among other sports-related ventures. In the War presents the definitive history of one of the philanthropic arena, Milstein is a Trustee least understood chapters in American history – at Cornell University, an Overseer of Weill those transformative years following the Civil Cor nell Medical College and serves on the War when our nation struggled to rebuild itself Dean’s Advisory Boar d of Harvar d Law while making its first full attempts at equality and School. He is Chairman of the American Skin social change. As a friend and admirer of Skip Association, the Howard and Georgeanna Gates for so many years, I am constantly amazed Jones Foundation for Reproductive Medicine, at both his strength as a storyteller and his ability and the Milstein Medical Asian American to foster crucial conversations about race, our Partnership Foundation. Milstein also serves humanity and what it means to be an American. on the boards of the National September 11th These are themes that resonate across our nation Memorial, the Nicklaus Children’s Healthcare Foundation and PGA REACH. Milstein was named the 2008 Entrepreneur of the Year by Cor nell University, and also served fr om 2011-2014 as Chairman of the New York State Thruway Authority, where he successfully led the design and procurement process for a new Tappan Zee Bridge – the largest infrastructure project in the nation.

today. In recent years, we have faced some difficult times for democracy and public discourse, and Dr. Gates’ new series is a stark reminder of how fragile our progress as a nation can be.

More broadly, a series like Reconstruction is exactly what we look for in our giving to public television. Over the years, we’ve served as primary sponsors of several landmark public television programs. In addition to Dr. Gates’ most recent program, we have also supported his previous documentary series, 2016’s Black America Since MLK: And Still I Rise, and 2013’s The African-Americans: Many Rivers to Cross, as well as other critically acclaimed PBS series such as Shakespeare Uncovered, and Simon Schama’s The Story of the Jews and the Fate of the World.

In December 2018, you were named a trustee and made a major donation to PGA REACH, the foundation of PGA of America.

How did you begin working with PGA REACH? For many years, I have been partners with my good friend Jack Nicklaus in the Nicklaus Companies, and Jack and I have supported a number of charities together, including St. Jude Children’s Research Hospital and the Nicklaus Children’s Healthcare Foundation. More recently,

ORGANIZATION BRIEF The Howard and Abby Milstein Foundation (howardandabby milsteinfoundation.org) participates actively in the organizations it supports, with hands-on leadership and long-term financial support.

Will you discuss your philanthropic areas of focus?

We look to take on some of the most challenging issues facing the world today, finding areas where we can have real impact and produce measurable change in people’s lives. We emphasize strategic gifts, institutional leadership and hands-on involvement, bringing the principles of entrepreneurship and best practices to area such as arts & culture, history, community, civic engagement, medicine and healthcare.

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Howard and Abby Milstein (second and third from left) join Henry Louis Gates Jr. (center), at the launch event for Dr. Gates’ new PBS program Reconstruction: America After the Civil War LEADERS 29

We look to take on some of the most challenging issues facing the world today, finding areas where we can have real impact and produce measurable change in people’s lives.

I’ve become involved in other golf-related businesses, including as publisher of GOLF magazine.

Golf is a game of community, integrity, sportsmanship and managing the balance between risk and reward – principles at the heart of my own core values, whether in business or philanthropic pursuits. Thus, it was a natural fit for our mission.

Jack Nicklaus is the person who introduced me to PGA REACH several years ago, and I spent about a year working with PGA REACH and its trustees, learning about their important programs to help grow the game, seed diversity and inclusion programs, impact youth and also help our veterans become part of our community. So when I was asked to become a trustee of PGA REACH, I made a $1 million donation in honor of Jack and all of his charitable efforts over the years. I deeply believe in the game of golf and its positive impact on participants of all ages, and through this donation and my involvement as a PGA REACH trustee, I hope to give back to a community that encourages inclusion and the building of supportive relationships.

You and your family have a deep commitment to Cornell University’s Milstein Program in Technology & Humanity. What was your vision in creating this program?

For many years, we’ve had an interest in technology and its impact in furthering progress.

We have also long recognized the importance of bridging the gap between a humanities education and the science and technology skills needed to succeed in the future. Along with my son, Michael, we conceived Cornell’s Milstein Program in Technology and Humanity to help build this bridge – creating a rigorous, truly distinctive experience for Cornell undergraduates in technology, while also providing a context and an ethical framework through the humanities and social sciences. Students in the program divide their time between the College of Arts & Sciences in Ithaca and Cornell Tech New York City campuses. In the Fall of 2018, we welcomed our first group of 14 Milstein Scholars – the first of 100 the program is designed to accommodate. We look forward to continued growth and success of this program in the years to come. New York has always been a city at the confluence of business, technology and the humanities. Cornell Tech is a critical ingredient in further embedding a robust tech ecosystem in New York, and we believe the Milstein program will only strengthen New York’s leadership through the contribution of these students to technology and, more importantly, to society.

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PGA of America CEO Seth Waugh with Howard Milstein who was selected to be a trustee of PGA REACH VOLUME 42, NUMBER 2

PURPOSE

Giving Back An Interview with Arnold Fisher, Senior Partner, Fisher Brothers

Arnold Fisher

EDITORS’ NOTE Arnold Fisher has served as Chairman of the Board of Trustees of the Intrepid Museum Foundation, Chairman of the Fisher House Foundation, and heads up the Fisher Brothers Annual Scholarship Fund for military children. He is personally responsible for the construction of more than 15 million square feet of space, both commercial and residential, and has left his indelible imprint on the Manhattan skyline and cityscape. The properties for which he was personally responsible include the four signature midtown office towers that are the centerpieces of the current Fisher Brothers portfolio. His wide-ranging philanthropic endeavors have been focused on members and veterans of the armed forces and their families, particularly those who died or were wounded in action. He spearheaded the construction of the National Intrepid Center of Excellence on the Navy campus in Bethesda, Maryland by the Intrepid Fallen Heroes Fund, which raises money for the construction of these centers. This facility is a 72,000-square-foot stateof-the-art research, diagnosis and treatment center for service members diagnosed with traumatic brain injury and psychological health conditions. In addition, seven satellites called Intrepid Spirit Centers have been built across the country to extend care to the home bases of the wounded suffering from TBI and PTS, with three more scheduled to be built. He served as a member of the Independent Review Group committee formed by the Department of Defense to investigate the shortcomings of the treatment of wounded service personnel at Walter Reed Medical Center. He is a recipient of the 2008 Presidential Citizens Medal from the White House and was an Iraq and Afghanistan Veterans of America Honoree in 2007. Fisher’s other philanthropic causes include the Veterans Bedside Network and the development of the Vietnam Memorial in Westchester County. He has also served as Chairman of the Board of the Hall of Honor, while also receiving the Patriot Award from the Congressional Medal of Honor Society. Additionally, he is a Trustee of the New York State Trooper Foundation and a recipient of the Ellis Island Medal of Honor.

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COMPANY BRIEF Fisher Brothers (fisherbrothers.com) was founded in 1915 by Martin Fisher, who was joined by brothers Larry and Zachary Fisher.

Over the next several decades, Fisher Brothers built residential properties in Brooklyn, Queens, Long Island, Riverdale, Mount Vernon and then in Manhattan. Fisher Brothers began putting up commercial buildings in the mid-’50s. It rewrote its business plan in the mid-’70s, adopting a new strategy that called for selling off its residential properties while continuing to develop and manage commercial real estate investments, and diversifying its investment portfolio into nonreal estate sectors. With the decision to capitalize on the firm’s capabilities as a builder and manager, the partnership formed Plaza Construction in 1986 which was led by his son, Steven, as well as Sandhurst Associates in 1992 to provide onsite management for other building owners.

Fisher Brothers has emerged as a highly diversified financial investment force. Assets currently under management exceed $6 billion, with a substantial portion strategically invested in a broad spectrum of financial markets and ventures, including opportunistic overnight investments in treasuries and repos, as well as building refinancing and construction loans.

The Fisher family has a long history in philanthropy and supports many causes, especially relating to the military. Will you discuss this philanthropic commitment and how much it is a part of the Fisher family culture?

It started with Zachary Fisher, my uncle and one of the three brothers that started Fisher Brothers. Zach tried to get into the military service during the Second World War. They refused him because he had two arthritic knees.

Since the family was making money at that time, Zach decided that we shouldn’t just take from this country; we had to give back. That was the beginning of our focus on philanthropy.

Our family came to this country from Russia where they were bricklayers. They then became bricklayer contractors; then builders of six-story buildings doing their own brickwork; then they came to New York and started building there. That’s when I started working in the company after I returned from the Korean War. Zach had gone to Bethesda with Admiral Thach, who was Commander in Chief of the U.S. Naval Forces Europe at the time. On the

way out, it was a little dark and there was one car in the parking lot and the windows were fogged up. Admiral Thach knocked on the window and there was a sailor in the car. He asked what he was doing and was told that the sailor’s wife was in the hospital and he didn’t have money to go to a motel so he was going to sleep in the car. Admiral Thach said, “That’s not going to happen”, so Zach started Fisher House to provide these military families with housing while their loved ones are receiving care. When Zach died, I took over that effort.

We also discovered that the government was giving $6,000 to families of soldiers killed in action, but $3,000 of it was taxable. So we raised $22 million from the American people and we gave $10,000 to the survivors of someone killed in action and $5,000 to each of their children.

The British also approached us about this issue. They don’t have great care for their veterans and they don’t have military hospitals. We extended our same donation to the families of British soldiers killed in action, for which I was knighted which was a huge honor.

When the government eventually upped the $6,000 it gave to $12,000, and then to $50,000 and $100,000, we decided to discontinue this program. So we got together and then decided to help the catastrophically wounded.

We went to the surgeon general and asked what they needed. He told us that when he was the former vice secretary of defense, $10 to $12 million had been approved to build a rehab facility at Walter Reed Hospital on the third floor. Three years later, they hadn’t built it yet, so we decided we would build it.

We built the Center for the Intrepid (CFI) at Brooke Army Medical Center as the finest rehabilitation center in the world for treating soldiers who come back from service with a missing limb. Patients can get fitted for prosthetics 20 minutes after arriving. We had a person arrive in a wheelchair missing both legs and we were able to get him in the therapeutic pool right away.

There is a burn unit that also does phenomenal work. It is kept at a special temperature and patients can be there for over a year. They come in with great challenges, but there isn’t a victim in the place. They are there to get better and they work hard to improve.

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This facility offers true hope for a quality life after the loss of limbs. It has given these men and women hope through prosthetics.

They have even developed a replacement knee that is better than those that people are born with.

When we built this facility, technicians and doctors from all over wanted to work there because they get an opportunity to learn while providing care. We treated thousands of injured warriors so one can’t have a greater experience than working there.

We have worked with the top manufacturers and have some of the finest equipment at CFI. Our next focus was post-traumatic stress and brain injury so we built the National Intrepid Center of Excellence in Bethesda at a former Naval hospital. We originally raised $62 million for the project, but we wanted to also build satellite facilities. In the end, we raised about $200 million in total and have now built eight Intrepid Spirit Centers. Eventually, the ninth will be at Fort Carson and the tenth will be at Fort Bliss in Texas. Then the mission will be complete.

I’m very emotional when it comes to this country. I am a super patriot. I love this country. I’m a quintessential American. We can’t just take from this country – we have to give back.

I’m trying to give back to this country that has been so good to me and my family.

How critical is it to provide support for those in the military while they are in active duty?

We have a problem, because we try to fix young soldiers before they become veterans, but after they become veterans, they are killing themselves.

I would like to ask President Trump for money to support a solution to this. I think the government should pay for this because we owe it to these veterans.

I read a letter in a newspaper from a mother whose son had come back from Afghanistan and was only at home for two weeks before he took his own life. I need to create a hotline so we can get support for people like this and help them.

The whole thing is to prevent them from harming themselves. That is why addressing this during active duty is so important –we have to get to them right away. The longer we wait, the worse it gets.

How important is it to engage the entire family unit in these efforts?

There is not a single military hospital where my son Kenny hasn’t built a Fisher House for the families to be there. We cannot fix these people without the family being next to them to see what they’re going through and how they’re being cured.

It doesn’t help if a person comes home cured but the family doesn’t understand what he or she has been through.

At one of our facilities, we have a playground in the back and we have two Fisher Houses there where the family can come and VOLUME 42, NUMBER 2

National Intrepid Center of Excellence (NICoE) in Bethesda, Maryland

stay for two months. The kitchens have separate refrigerators for each family. The hospitals also chip in and even send nurses over should they be needed.

There is a statue of Zach and his wife in the front of this facility, because he started this and deserves the credit. When he died, I took over Fisher House and Kenny has since built 80 of them all over the country. I built two when I was the head of the foundation at the Landstuhl Regional Medical Center in Germany because that is the number one hospital for soldiers wounded in Afghanistan. It’s important that they know that if something is wrong with them, they’re going to get treated right away.

It is critical that the families are a part of the care from the earliest stages so they understand the treatment and can continue to help with recovery.

Will you touch on CFI in San Antonio and its impact?

CFI is the number one rehab center in the world. It has a track where patients can walk and run; it has simulated cars to help them learn how to drive with no legs; there’s a piece of equipment there that was invented in Israel and made in Holland which is a black dome virtual reality machine with a platform in the middle. They can hook a patient up and put him on the platform and he gets to experience the feeling of being able to move on legs that aren’t his. The facility also has basketball courts where they can learn how to play – the San Antonio Spurs even come over to help sometimes.

San Antonio has become the number one residence of soldiers who come back wounded, because it’s a great town. Our patients quickly feel at home there.

I could talk forever and never fully get someone to understand the belief these guys have that they’re not victims. If they were asked to serve again, they would. They are special people.

I went to Afghanistan for eight days with General Richard Cody. It’s a different Army today than when I served. These kids know what they’re there for and know what they’re there to do.

When I was in the Army, I didn’t feel that way. I had to go to Korea, although I volunteered because I didn’t want to get drafted.

My mother came to the U.S. when she was one year old and was a super patriot. She told me that I should go to Korea to fight for this country. Today, these young soldiers choose to fight for their country.

Given all that your family has given to this country, do you worry about the America of today?

I’m scared stiff. I have grandchildren that are going to have children. What is going on in this country now is not my America.

Should everything I have done for years, and everything I’m still doing, be prohibited by taxes? I pay taxes – I pay everything I’m supposed to pay and then some because I give in other ways. I’m very passionate about this.

The passion for what you do clearly comes through as a bigger purpose. It’s not about Arnold Fisher, but about the people you’re impacting and about America.

However, are you able to appreciate what you have accomplished and the impact you have made?

I’m not looking for recognition. I want to talk about what is wrong with America. I don’t need to brag about our work – the servicemen show me what kind of impact we’re having.

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PURPOSE

The Power of Sports An Interview with Jerry M. Reinsdorf, Owner, Chicago White Sox and Chicago Bulls EDITORS’ NOTE Jerry Reinsdorf is a CPA and a lawyer. He started his professional life as a tax attorney with the Internal Revenue Service. As the Owner and Chairman of the Chicago Bulls since 1985, he has turned the franchise into a lucrative business that won six NBA Championships in the 1990s. Since the early 1990s, he has been considered one of the most influential basketball owners. As a baseball owner since 1981, the Chicago White Sox won a World Series in 2005. In April of 2016, Reinsdor f was elected to the Naismith Memorial Basketball Hall of Fame.

in-kind assets, but we have to partner with the right stakeholders in order to deliver that support. We are not the experts – rather we are best used to support our community partners who do the actual work, make the impact and deserve the credit.

You are known as a results-oriented business leader with clear goals and objectives. Do you look at your philanthropic work the same way and how critical are metrics to track the impact of your charitable programs?

Metrics have become a very important element of charitable campaigns and are becoming even more You commit a great deal so every day. We receive so of time and resources to much support from our fans philanthropy. What makes and our sponsors that we feel philanthropy so impora very real responsibility to tant to you? make sure philanthropic dolSports organizations, lars are making a measurable and the owners and operaimpact. It’s our obligation to tors of sports teams, receive be responsible stewards to Jerry Reinsdorf (right) alongside his son, Michael Reinsdorf, President and Chief Operating Officer of the Chicago Bulls, at a Chicago Sports Alliance event so much love from the cities, those who support us. communities and fan bases We all want to make that support them – through thick and thin – that W h a t a r e t h e k e y s t o e f f e c t i v e sure we are spending our philanthropic dollars it only makes sense that we return the same sup- p h i l a n t h r o p y ? wisely, and we always want to have measureport. In that sense, I truly believe it is an obligaThere is so much need in our communi- ments in place to evaluate our efforts. Ninety-six tion to give back. ties today. As much as you would like to be, the cents of every dollar donated to White Sox and Owners are only temporary custodians of Chicago Bulls and Chicago White Sox just can’t Bulls Charities is put back into the community. It’s their teams. In the case of sports, sometimes it be all things to everyone. We have tried to focus an incredible return on a donation and one metric might mean a financial donation to a charity or our impact and our giving efforts on specifically we’re incredibly proud to share. support for a cause, but even more often, it is a defined areas that are important to our franchises Another example is the Chicago Sports signed baseball or basketball, a hospital visit from for a variety of reasons.

Alliance, comprised of five professional sports an athlete, or even just stopping to shake a hand Sometimes, you have to say no to others just teams in Chicago who recently joined together to and say hello. to maintain your focus on what is important to help fight the gun violence that has been plaguOn a human level, when you see the you. So I definitely would say focus. As with any ing our city. All five teams – the Bears, Bulls, real power of sports to make people happy business unit, you have to hire great people and Blackhawks, Cubs and White Sox – donated or to dramatically change someone’s life trust them to do their jobs. I believe the same is funds and in-kind support, but we only agreed f o r e v e r, t h e s e n s e o f r e s p o n s i b i l i t y i s true for our giving efforts at the Bulls and White to do so under the guidance of evidence-based immense. When you can do something to Sox. We have great community relations staffs, recommendations from the University of Chicago help someone in your community who may with people who care deeply about our fans and Crime Lab. Each of the five owners was commitbe struggling, who may be disadvantaged or who are constantly looking for ways for our pro- ted to making sure our money was used efficiently may need a lift, the reward is simply amaz- grams to have the biggest possible positive impact. to address the issue of gun violence. The Crime ing. It’s a very powerful return for all of Collaboration with community stakeholders Lab helped lead us to other programs, like the the support fans give their teams and their who deliver services to those in need is impera- Chicago Police Department’s Strategic Decision heroes – the players. tive to our success. We can deliver funding and Support Centers, READI and Choose2Change, 34 LEADERS

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and we have been able to make an incredible impact with metrics to prove it.

Do you see it as a responsibility of business leaders and leading companies today to give back and make a difference?

As I said earlier, I think it is absolutely true for sports teams and sports owners because of all we get from our fans and our communities. I think the same principle applies across the board to other businesses as well. Altruism, gratitude and karma aside, there is also a simple argument that it is good business, regardless of the industry.

Today, it’s an expectation for a business to serve as a responsible steward for its local and global communities. People want to support and connect with brands and products that have shown they care, shown they are committed to improving their communities, the environment, the world. That trend is only growing more apparent across generations. It’s often not just about transactions anymore. It is about building meaningful relationships.

Will you discuss the history of giving back for the White Sox and how deeply engrained community engagement is in the culture of the organization?

I think that answer is probably easiest communicated through two stories, both about Robin Ventura, who was an All-Star third baseman for us from 1988-97 and then returned to manage the team from 2012-2016. I think the world of Robin.

When he was a player, Robin used to go to what is now Lurie Children’s Hospital in downtown Chicago to visit patients, but he always wanted to do it without fanfare. One day, he met a very young boy hospitalized for an intense treatment of a difficult cancer. The child was receiving treatment in a wing funded, in part, by the White Sox. Robin, the boy and his family became close, exchanging photos and cards as this young man battled the disease through his teens. Then, as things happen in life, they lost touch. Robin went on to play in New York, and the young man dropped from his radar as life moved on. When Robin came back to the White Sox as manager in 2012, he got a note of congratulations. It was

Athletes are tremendous when it comes to getting involved in the communities where they play.

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Jerry Reinsdorf joined more than 200 Volunteer Corps members during a 2012 KaBOOM! playground build in Chicago’s West Pullman neighborhood. The White Sox Volunteer Corps has engaged more than 5,000 fans and served nearly 48,000 hours in the community in the last 10 years.

from the young man, who had beaten his cancer, grown into a 35-year-old and was living a successful life of his own. The two reunited happily at the ballpark one day and have remained friends.

Robin also befriended a young girl who was battling cancer, and as part of a special Make-AWish program, he actually starred with her on stage in an annual presentation of A Christmas Carol. The two stayed close, meeting one another often at the ballpark over the coming years as her treatments continued. Sadly, she lost her battle with cancer, and her death – which Robin learned about at the ballpark one night before the game – was devastating to us all. We remain in touch with her family to this day.

Sports teams can write checks, donate tickets and sign baseballs to help raise funds for worthy causes. All of that is wonderful. In the end, however, we are just people, all sharing the same challenges, emotions, victories and losses, together.

We try not to ever forget that.

What about the philanthropic work of the Bulls?

Getting out into the community and giving back to the city that supports us each year is an integral part of the Bulls culture. In 2012, my daughter-in-law, Nancy Reinsdorf, was named President of Chicago Bulls Charities, and working alongside my son, Michael, they made the strategic decision to take the team charity in a new direction with four areas of focus – youth education, youth health and wellness, violence prevention and military and first responder support.

Since that strategic shift, the Bulls have contributed time, materials, resources and financial donations to organizations that share our commitment to those four pillars within the community. Nancy has done an incredible job with Chicago Bulls Charities, and both she and Michael are committed to giving back to the community. Last year, the team hosted

and participated in more than 150 events that reached more than 200,000 Chicagoans.

How do you engage the players in each team’s charity efforts?

Athletes are tremendous when it comes to getting involved in the communities where they play. Our players don’t have to be here long to quickly understand that giving back is just part of our organizations’ culture. It is part of who we are.

Our manager and head coach preach its importance. It’s expected.

They often point out that being on a successful team means, almost by definition, being willing to make your interests secondary to those of others, to give for the greater good. Our community relations departments are active within our clubhouses and locker rooms, talking to players about programs or causes that are important to them and their families. We then try to build programs that work within our vision and also support the interests of the players.

Our players, their wives and their families are stretched a lot of directions during a season. There are a lot of demands on their time, but every single player finds the time, finds a way, to help make a difference in Chicago. They are proud of that commitment, and so am I. You have achieved great success in your life, both in business and in philanthropy.

Do you take time to reflect and celebrate the wins?

Every day. I grew up in Brooklyn sleeping on a cot in an apartment hallway, and I have led a life where I have been so fortunate to have experienced championships, great moments and great friends over my four decades in sports. I am going to paraphrase a famous line from one of my boyhood heroes to answer this question. Jackie Robinson once said that a life is not important except for the impact it has on others. That, in the end, is each of our challenges and each of our legacies.

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PURPOSE

Client Service An Interview with Richard Edelman, President and Chief Executive Officer, Edelman EDITORS’ NOTE Richard Edelman has extensive experience in marketing and reputation management, having led assignments with major corporations, NGOs and family businesses in over 25 industries around the world.

He has topped PRWeek’s list of most powerful executives three times (’07, ’08, ’13), was recognized as the highest-rated CEO by Glassdoor (2014) and was inducted into the Arthur W. Page Society’s Hall of Fame (2014).

He is regarded as an industry thought Richard Edelman leader and has posted weekly to his 6 AM blog since 2004. Edelman is the founder of the Edelman Trust Barometer, which will celebrate its 20th anniversary next January. He is consistently mentioned as one of the foremost experts on the topic of trust. He serves on the Board of Directors of the Ad Council, the Atlantic Council, the Chicago Council on Global Affairs, the Children’s Aid Society, the Gettysburg Foundation, the 9/11 Museum and the National Committee on US China Relations. He is a member of the Civic Committee of the Commercial Club of Chicago, World Economic Forum and PR Seminar.

COMPANY BRIEF Edelman (edelman.com) is an independent global communications firm that partners with businesses and organizations – longestablished and just-emerging – to evolve, promote and protect their brands and reputations. Its global network comprises 6,000 practitioners in more than 60 offices whose work spans brand, reputation, digital and advisory and is powered by analytics, planning, creative and media relations. Among its many honors are the Cannes Lions Grand Prix for PR; the Holmes Report’s 2018 Global Digital Agency of the Year; Advertising Age’s “Agencies to Watch 2018;” and, five times, Glassdoor’s “Best Places to Work.” Since its founding in 1952, it has remained a family-run business. Edelman also owns specialty companies Edelman Intelligence (research) and United Entertainment Group (entertainment, sports, lifestyle).

What are the keys to Edelman’s strength and leadership in the industry and how do you define the Edelman difference?

The most important distinction is that we are still private, independent and family-owned. We have not become part of one of the holding companies and that has allowed us to have the freedom to continue to evolve the business.

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We started as a classic PR company doing marketing and PR; then we diversified into corporate and public affairs; then we went global; then, more recently, we built Edelman Digital into the largest social digital business; we’ve gone on to add creatives – planners, paid media people, etc. of which we have added 600 in the past four years. We have also added experiential and entertainment.

We think of Edelman as a strong tree with a trunk that is PR and the first two branches are corporate PR and brand PR. Further up the tree, there are digital, creative, experiential, entertainment and research branches.

We don’t care so much about money. That sounds nuts, but we care much more about the clients and making sure we keep them for a long time. Seventeen of our top 20 clients have been here for a decade and that says everything.

It’s about client service – my dad’s whole focus was on being humble. I still do media relations.

That is the tone from the top.

We don’t talk at people – we create conversations and we build relationships.

With the disruption taking place in the industry and the impact of technology and digital, is there still an effective understanding about the value of traditional public relations?

It’s more important than ever, partly because the context has changed so profoundly.

We have populism and we have new demands on business because government is dysfunctional. We also have new expectations of CEO’s by employees and we have a new expectation of brands.

We have done two studies: one is called Earned Brand and it revealed the rise of what I call brand democracy – two-thirds of consumers, globally, are now belief-driven buyers, which is unbelievable. These consumers say that they will buy or boycott a brand solely because of its position on a social or political issue. More than half of the people (53 percent) we surveyed believe that brands can do more to solve social ills than the government, and 54 percent believe it is easier for people to get brands to address social problems than to get government to act.

The other amazing statistic we uncovered was from this year’s Trust Barometer, which found that trust is now local.

Over the past two years, with all of the problems plaguing social media platforms, fake news and a lack of faith and trust in CEOs and government leaders, the employer has become the most trusted institution. Globally, “my employer” (75 percent) is significantly more trusted than NGOs (57 percent), business (56 percent), government (48 percent) and media (47 percent). Furthermore, three-quarters of people want their CEO to speak up on issues of the day, especially on pay, diversity and inclusion, and job retraining. This is a huge jump from last year.

That context proves why PR is so important today. People and consumers don’t want to be spoken to. They want to be communicated with, and PR is how that gets done. We don’t talk at people – we create conversations and we build relationships.

What we do matters more than ever.

How should employers look to apply PR today?

We have come up with a new compact we call Trust at Work, which has four components.

First, employers must create an aspiration and a vision that employees can look to.

The second is that they have to educate employees, not just advocate. They have to make employees the first group they talk to and allow them to provide feedback.

The third is, they have to have some roots in the local community wherever they are headquartered.

They have to have a connection and help solve the problems in the communities in which they operate.

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Lastly, CEOs must speak up directly on issues of the day.

Smart companies will heed the call to build trust from the inside out with employees as the focal point.

With its surveys around trust and brand, Edelman is known as a thought leader in the industry. How critical is thought leadership, especially given the investments Edelman makes in gathering and analyzing this information?

In 2000, when we started the Edelman Trust Barometer, my idea was to bring McKinsey-like intellectual property into the marketing services business, and the trust barometer has fulfilled that dream.

It has enabled us to go, with conviction, to clients like CVS to tell them how they can really benefit by taking cigarettes off of their shelves, and to REI to close their stores the day after Thanksgiving and to do the #OptOutside program – to take bold actions, because actions speak a lot louder than words.

Thought leadership has also been central to our being able to have a corporate and public affairs business that is now just as large as our brand business.

Edelman is heavily committed to pro bono work. Will you discuss how this work reflects the values of the organization?

We volunteer during crises like the shootings in Dallas or Orlando and provide pro bono work.

We have also done important work for veterans such as the Department of Defense Warrior Games.

We also do this after natural disasters – our Miami office went to Puerto Rico and did a #RebuildingWithLove pro bono campaign in August 2018. We donated hundreds of thousands of dollars worth of hours to that.

We also helped open the 9/11 Museum and Memorial pro bono.

If something is important, we do it.

With the size and scale of Edelman today, is it more challenging to maintain the family culture Edelman is known for?

It certainly requires more travel. I also have a brother and sister in the business. My brother runs the foundation and my sister is working in recruitment. I also have one of my children in the business now in our San Francisco office working in our Tech practice.

More importantly, it’s not just Edelman direct family members. It’s the inclusive culture my dad before me and now I try to put forward that inculcates taking chances and being entrepreneurial.

It’s not a top-down, numbers-driven organization; it’s all about client service, so we have to have an entrepreneurship-and-innovation-matters type of culture.

With Edelman’s diverse client base, how critical is it that your workforce mirrors that diversity and will you discuss your emphasis on building a diverse and inclusive workforce?

About five years ago, I set the goal of having women account for 50 percent of our leadership positions, and we are just about there. In the operating committee, 47 percent of the senior VOLUME 42, NUMBER 2

The Chicago office of Edelman founder, Dan Edelman, with images of various Edelman campaigns on the walls

leaders are women; we also have women running four of our five largest offices. Across our system, women lead 21 offices. I can look at my three daughters and say that we’re on our way.

In terms of the diverse population, our goal by 2022 is to be 30 percent people of color in the U.S. We’re more than two-thirds of the way there.

We are accomplishing this through hiring, but also through training and recruiting horizontally.

The person who runs our Southwest business is Hispanic; the person who runs our Miami and Colombia business is Hispanic.

To enhance these efforts, in 2018 we appointed our first Global Chief Diversity and Inclusion Officer, Trisch Smith. Additionally, our Employee Network Groups, such as Edelman Equal (LGBTQ community), Edelman Griot (black community), Edelman Inclusivo (Latino community) and Edelman Forward (veterans and their families), continue to create community, assist in recruitment and inclusion efforts, and inform client programs.

We know we consistently deliver better work for our clients when our teams reflect our communities.

How worried are you about the lack of trust in information and fake news, and what can be done to bring more trust back in news and reporting?

Two things: one, I think that PR firms have to do everything possible to help media report accurately and fairly.

Increasingly, with only half as many reporters in newsrooms today, we have to help educate them, but on both sides of an issue instead of just out and out advocacy. We’re in our business to support truth and clients will benefit from healthy debate.

At the same time, I’m increasingly telling clients to go directly to the end user of information.

Every one of our clients should be its own media

company. If we think about the media cloverleaf as mainstream media, digital media, owned media, and social media – owned media, like Walmart. com, needs to be an important channel that provides information on supply chains, sustainability and employment practices. People need to be able to rely on that information, particularly the employees.

Edelman is known for its marquis bluechip clients and working with some of the largest and most well-known brands. How important is it to work with start-up companies and entrepreneurial companies as well and will you discuss Edelman’s ability to service the whole spectrum of companies?

The Silicon Valley office is our best example of that. We have a dozen or more companies that are a billion or below in revenue and doing new approaches in cloud-based services or other areas.

We also have started a special subsidiary called Revere, like Paul Revere, to work with smaller, domestic clients. Some clients want the global Edelman network; for those that just want U.S., we now have this new subsidiary.

How special is it to be able to work with the third generation of your family when it comes to continuing to build on the Edelman legacy?

When I go to Chicago, I work in my dad’s old office. I see all of the pictures of the campaigns from the past 60 years on the walls. The heritage of this place is so fundamental and what really matters is consistent and decent management. There have only been two CEOs for the past 22 years, and that provides an important stability.

Also, our other top people who have been here 20-plus years are core to our legacy and are woven into the fabric of the firm – they are just as much family as I am.

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PURPOSE

Transforming Neighborhoods An Interview with Jorge Pérez, Chairman and Chief Executive Officer, Related Group EDITORS’ NOTE Jorge Pérez has been at the for efr ont of South Florida’s complex urban evolution for over 40 years. He started out in the 1970’s, making a name for himself in the public housing market of neighborhoods like Miami’s Little Havana and Homestead. Pérez has received numerous awards for his professional and philanthropic achievements, including Ernst & Young’s Entr epr eneur Of The Year, the Jorge Pérez Hispanic Achievement & Business E n t r e p r e n e u r s h i p Aw a r d f r o m H i s p a n i c m a g azine, The Developers and Builders Alliance’s Community Advancement Award, and The Beacon Council’s 2015 Jay Malina Award. He is also committed to The Giving Pledge, a campaign founded by Warr en Buffett and Bill Gates which states he will donate 50 percent of his wealth to philanthropic purposes. In 2005, Time magazine named Pérez one of the top 25 most influential Hispanics in the United States, and he has appeared on the cover of Forbes twice. He graduated summa cum laude from C.W. Post College in Long Island and earned his master’s in urban planning from the University of Michigan.

COMPANY BRIEF For more than 40 years, Related Group (relatedgroup.com) has been improving city skylines with developments characterized by innovative design, enduring quality, and environments that celebrate culture and active lifestyles. Related’s distinctive residential projects range from luxury high-rise condominiums to public and affordable housing developments. Since its inception in 1979, Related Group has built and managed more than 100,000 condominium and apartment residences which are meticulously designed with finishes and amenities that transform buildings into vibrant r esidential envir onments. Answering the demands and desires of a new generation, Related has helped to define South Florida’s urban evolution through its dynamic living communities. Many of Related’s properties are distinguished by groundbreaking partnerships with world-r enowned architects, designers, and artists who help to create residential developments recognized as 38 LEADERS

The Poets in Bordeaux (Body Soul God, Country, Water Fire)

by Jaume Plensa at Park Grove in Miami

urban landmarks. Philippe Starck, David R o c k w e l l , Karim Rashid, Rem Koolhaas, Piero Lissoni, Cesar Pelli, Carlos Ott, Yabu Pushelberg, and Arquitectonica are among the many famous collaborators and inspirations behind Related properties. A longtime art collector and philanthr opist, Related Gr oup’s F o u n d e r, C h a i r m a n a n d C E O Jor ge P é r e z , i s c o m m i t t e d t o s h o w casing museum-quality art in Related’s developments, educating and inspiring residents across the demographic spectrum. Original works by artists from around the world, from iconic contemporary sculptur e to one-of-a-kind commissioned installations, infuse Related’s properties with energy and sophistication.

Related’s commitment to architecture and design excellence has resulted in a host of accolades, including the prestigious Honor Award from the National Building Museum.

What have been the keys to Related Group’s success and how do you define the Related Group difference?

The key to our success has been the same since day one: each and every project must benefit its surrounding community, not just its respective residents.

Looking at developments through this lens definitely adds a layer of difficulty, but it also challenges us to truly understand the needs and wants of each hyper-local community, resulting in a superior product. This approach not only allows us to gain an unmatched understanding of our various markets, but also to kick-start numerous neighborhood-wide transformations throughout areas such as Brickell, South of Fifth, Wynwood, Liberty City and more.

Our team’s ambition and commitment to excellence are our biggest differentiators.

Each of our developers is always striving to out-do their last project, and those of their peers, and the results speak for themselves.

This approach encourages project leaders to

Auberge Beach Residences & Spa Fort Lauderdale VOLUME 42, NUMBER 2

develop a strategy that extends far beyond the building’s walls, resulting in our museumquality art collections, our partnerships with architects and world-famous interior designers, the integration of mixed-use components and more.

Does South Florida remain the priority for the company’s growth?

Miami is our home, and nobody knows it like we do. Of course, we need to diversify geographically for business reasons, but we will continue to play an integral part in South Florida’s urban evolution. In fact, we’ve recently started work on the first set of mixed-use buildings in the Wynwood neighborhood and our affordable housing division has more than a dozen local projects at any given time.

With that said, we’re always looking for new markets and are eager to see the completion of new projects throughout markets like Tampa, Orlando, Atlanta, Texas and Arizona.

Will you provide an overview of Related Group’s current projects?

We currently have upwards of 5,100 units under active development throughout our four divisions. Our domestic properties range from ultra-luxurious condos like Auberge in Fort Lauderdale, GranParaiso in Edgewater, or Residences by Armani/Casa in Sunny Isles, to hip rentals like Wynwood 25 in Downtown Miami or Manor Riverwalk in Tampa, to transformative mixed-income properties like Liberty Square in Miami, with retail and community spaces and over 1,455 residential units, or the 1,636-unit West River project in Tampa. We are also in the middle of a major expansion into the Southwestern United States.

Internationally, we’re much more focused on developing luxury condos and condo-hotel concepts. Currently, we have the two-towered SLS LUX Puerto Madero in Argentina; sixtower SLS-branded property in Cancun; hotel, condo and single-family oceanfront project in Zihuantanejo, Mexico; high-rise condo tower in Panama; Parque Global, a massive 47-story project consisting of five high-rise towers in Sao Paulo, and more.

What are your views on the Miami real estate market today?

Miami is a young, vibrant city with huge potential. Thousands of people from around the country and the world are moving here every year, and that influx is sure to keep the local real estate industry thriving for years to come.

Of course, there are matters we must keep our eye on, namely, the limited supply of workforce housing, among other issues. However, the private sector and local government have been doing an incredible job of tackling these issues proactively.

It’s also encouraging to see developers taking a much more measured and responsible approach to development. We all learned some valuable lessons after the challenges in 2008, and that stumble forced us to take a hard look at our work and explore ways to end Miami’s long-running boom-and-bust cycle. Today, VOLUME 42, NUMBER 2

La Maternidad by Fernando Botero at Auberge Beach Residences & Spa Fort Lauderdale

Miami’s real estate market is much more mature and, most importantly, it is set up for long-term success. I can’t wait to see how the city continues to evolve and grow into its full potential.

What do you see as the strengths of Miami from a business standpoint?

Miami’s location and natural assets are its biggest strengths. Today’s world is much more connected and flexible, meaning a large proportion of businesses are no longer locked into a specific location. So, why would a web-based business choose to be located anywhere other than a tropical paradise like Miami? Adding to that allure is a rich entrepreneurial ecosystem, a world-class culinary scene and a thriving cultural landscape.

This city has it all, but perhaps the most important aspect is the feeling of forward momentum you get when walking through any given neighborhood. You can immediately tell there is something special happening and you want to be a part of it.

How critical is the role of art in terms of the culture of South Florida?

The role of art cannot be understated, especially when you consider the direct correlation between the arrival of Art Basel Miami Beach and the recent blossoming of the local arts and culture scene. Today, there are hundreds of young, ambitious artists who are not only pushing the local creative scene forward, but also impacting everything from the area’s fashion to its architecture and even the food scene.

Where does your passion for art stem from and what had made art such a key focus of your philanthropic work?

My mother ingrained in me a love and passion for art and culture from a very early age.

She’d take me to the best museums in Colombia, Argentina and Cuba, and while I didn’t know it at the time, these day trips laid the foundation for a life-long passion.

Today, art continues to be a strong link to my family and my culture. It reminds me where I came from which, in turn, guides me to where I’m going. I want others to be able to experience this link to their pasts and by contributing to organizations like PAMM and The National YoungArts Foundation, I achieve just that.

When you look at the Pérez Art Museum and the impact it has made, is it what you had envisioned?

The goal remains to help make PAMM a celebration of the city and its incredibly colorful, vibrant and warm people. Today, when I walk the halls, I see visitors of every color, shape and size enjoying the incredible art and coming closer together because of it. What else can you ask for? I couldn’t be prouder of what the museum’s team has accomplished and can’t wait to see what comes next.

Are you able to take moments to appreciate and celebrate all that you have accomplished?

I have always tried to stay focused on what’s ahead of me and, to be honest, it’s been a great way to stay humble and avoid resting on my laurels. But, of course, sometimes I look around and realize just how much things have changed, and it can get overwhelming. To be honest, I just feel incredibly grateful for my lifelong career doing what I love, and more importantly, the family I have built in the process.

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LEADERS 39

PURPOSE

Driving an Inclusive Future An Interview with Craig Vosburg, President of North America, Mastercard EDITORS’ NOTE Craig Vosburg oversees Mastercard’s customer-facing activities in the United States and Canada, including sales, business development, strategy and relationship management with issuers, merchants, digital partners, governments and acquirers. He sits on the company’s management committee. Prior to assuming this role, he served as the company’s Chief Product Officer leading the development, commercialization and man- Craig Vosburg agement of the company’s global core products offerings, which include consumer credit and debit, commercial, prepaid and loyalty solutions. Since joining Mastercard in 2006, Vosburg has held positions of increasing responsibility in Mastercard Advisors and U.S. Market Development. He holds an M.B.A. from The Wharton School at the University of Pennsylvania and a B.S. in business administration from Bucknell University.

COMPANY BRIEF Mastercard (mastercard.com), is a technology company in the global payments industry. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments, and businesses in more than 210 countries and territories.

What have been the keys to Mastercard’s success and how do you define the Mastercard advantage?

It starts with what we have been doing for more than 50 years now, in providing the kinds of products, technologies and capabilities that enable payments to happen more seamlessly, easily and securely.

That is the thing that underpins the strength of our business, and we continue to build upon that by using the power of our technology to bring more and more value-added services and capabilities. In doing so, we extend the reach of those services and capabilities to more people and more businesses to benefit as diverse a set of users, customers and stakeholders in our society as possible.

Is innovation primarily occurring on the technology side of the business?

It’s happening across our entire business, although much of how we innovate starts with technology. For example, digital technologies 40 LEADERS

have changed consumer behaviors and how commerce is conducted.

Introduction of new technologies like chips in cards and tokens are being used to secure digital transactions, while AI and machine learning are making use of massive amounts of data to inform decision making about things like a cardholder’s identity, the validity of a transaction, etc.

However, it goes beyond just the technology – much of it has to do with innovating in terms of how the technology is brought to market so we can serve different segments of society than we have traditionally served and be innovative about who we partner with and how we engage with the market.

Some of it involves innovation in our own processes and the way we work, both within Mastercard and with our partners. Oftentimes, we co-create with our partners to address unique challenges we are facing and combine the capabilities of our respective organizations to address them more effectively.

This also has to do with the purpose of Mastercard in the world, and how we resource our organization to fulfill that mission most effectively through a diverse and talented group of employees that represent all kinds of different experiences, capabilities and backgrounds, which fuels an environment that encourages innovative thinking.

Does your focus on hiring the best talent ensure a diverse workforce or do you need to put systems in place to make sure you are meeting Mastercard’s diversity goals?

It requires some of both. Certainly, it is important to have an outward focus to create an understanding of the broad purpose of the organization and the impact we want to have in creating a world beyond cash while making a difference in the world and improving the lives of people and the quality of the communities we serve.

When we think about an organization’s purpose in broad terms like that, we naturally gravitate toward hiring the kinds of people that reflect those communities and bring the breadth of experience needed to serve those interests and that broader mission.

This also needs to be complemented by a real internal effort and focus on making

sure we are making decisions day to day about who to hire and who to put in which roles. We continue to challenge ourselves to make sure that the decisions we are making are consistent with our broader objective and that we’re getting the best possible person into a role that is not necessarily a function of their past experience, but more a function of the contribution they can make as we look to the future.

Do Mastercard’s corporate responsibility efforts align with its business strategy?

The lion’s share are complementary to our business, for the simple reason that it makes them sustainable. There is a role for philanthropy and we give money to different organizations across a number of our markets.

However, to drive meaningful social change, any organization’s efforts become more sustainable if they are related to what the organization actually does so it can add value beyond just giving money.

We believe that doing good is good for business. It is a core part of our business strategy and our product innovation. In North America we are calling this our Inclusive Future’s strategy – where we are empowering women in small business and allowing workers to control their own financial destiny and also co-developing solutions to help drive inclusive, sustainable cities.

How important is it that the personal relationship remain at the heart of Mastercard’s business and do you worry that technology is taking away from some of the human touch?

The human touch remains critically important. I don’t think that is at risk of getting lost. Certainly, we focus actively on the quality of human relationships with our partners with whom we do business. We also work hard to ensure that we maintain a personal connection with the consumer through the way in which we promote our brand and the way in which we invest to create the priceless kinds of experiences that our brand stands for.

However, we can use technology to make the delivery of these products, capabilities and experiences more efficient and allow people to focus on the things that only people can do, which have more to do with relationships and emotions and finding meaning in what it is that we do.

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VOLUME 42, NUMBER 2

PURPOSE

Responsible Business An Interview with Laurence Morvan, Corporate Social Responsibility Officer, Accenture EDITORS’ NOTE Laurence Morvan was a part of his vision, for our company is the Chief of Staff to Accenture’s CEO and for the world, and it reflects our strong as well as Accenture’s Corporate Social sense of purpose at Accenture.

Responsibility Officer. She is a member Purpose, at its core, is ignited by pasof the company’s Global Management sion and is what drives people and compaCommittee. As CSR Officer, she has nies to succeed – to think outside the box, management oversight of Accenture’s make something better or create something Corporate Citizenship initiatives, which new, and ultimately, to achieve a vision. At advance Accenture’s digital responsiAccenture, it is our passion and ambition bility with programs around skilling for to improve the way the world works and the digital age and innovating for socilives – our credo since day one. ety. Morvan also serves as the executive This is critically important because, sponsor for Accenture’s relationship with Laurence Morvan as a company, we ourselves are a unit of the B20, an international forum that society. We have an obligation, the same as brings thought leadership and business policy recom- every organization and every individual, to participate. mendations to the G20 heads of state, with a focus How has Accenture’s commitment to coron entrepreneurship, future skills and innovation. porate citizenship evolved?

Additionally, she teaches Strategic Human Resources From the very beginning, we have focused our Management at Sciences Po, a leading French busi- corporate citizenship efforts on the intersection of ness school. Morvan holds an M.B.A. from the Wharton what we have to offer – our resources, expertise and School of the University of Pennsylvania and an M.S. capabilities – and wider societal issues. This has posidegree in management from ESSEC Business School tioned us to not only ensure we are relevant to our (École Supérieure des Sciences Économiques et business, but to more strategically pinpoint where we Commerciales) in Paris. allocate resources and efforts to make the greatest contribution.

COMPANY BRIEF Accenture (accenture.com) is a If you take a look back, corporate citizenship at leading global professional services company, provid- Accenture has always focused on issues of employing a broad range of services and solutions in strat- ment and entrepreneurship. Nearly a decade ago, egy, consulting, digital, technology and operations. we launched our Skills to Succeed initiative, which Combining unmatched experience and specialized aimed to use our expertise – the talent of our people skills across more than 40 industries and all business and capabilities in learning and development – to functions – underpinned by the world’s largest deliv- address the global need to close skills gaps and help ery network – Accenture works at the intersection of people find jobs or build businesses. This was a definbusiness and technology to help clients improve their ing step for us, as it set a meaningful precedent for performance and create sustainable value for their our company and for our people – a commitment stakeholders. With 477,000 people serving clients in to taking the best of Accenture and applying it stramore than 120 countries, Accenture drives innova- tegically to complex social challenges. It has been a tion to improve the way the world works and lives. The fantastic vehicle to provide skilling opportunities company has been recognized on Corporate Knights’ at scale for underprivileged populations and, to date, Global 100 Most Sustainable Corporations in the World, we have equipped more than 2.8 million people featured on the Dow Jones Sustainability Index for 14 around the world with the skills needed to secure consecutive years and recently ranked number one on lasting employment. the Thomson Reuters Diversity & Inclusion Index.

Today, Skills to Succeed remains a major pillar of our efforts. Just last year we committed more than How critical is purpose to Accenture’s cul- $200 million over three years to further advance this ture and how do you define Accenture’s initiative and have expanded our focus to account purpose? for opportunities and challenges created by the digiFor many years, I worked side-by-side with our tal age – for example, doing more to raise awareformer Chairman & CEO Pierre Nanterme, an extraor- ness of digital skills with younger people, while doing dinary person and leader, who was driven by a strong more to support workers in mid-career transitions. As sense of purpose to make this world better. He once our broader corporate citizenship efforts continue to said, “What’s the point of having the best technolo- evolve, we are also addressing a variety of societal gies – and living in the world we are living in – if we challenges, including sustainability, human rights and are not joining forces to make this world better.” This inclusion. Our commitment to making a measurable VOLUME 42, NUMBER 2

difference in these areas is underpinned by an acute focus on innovating responsibly, acting ethically with our clients, partners and suppliers, and reducing our environmental impact, all while exploring more ways to leverage the power of intelligent technologies.

Will you elaborate on the meaning of responsible business?

I recently attended the World Economic Forum at Davos, where responsible business was a key topic of conversation. The pace of innovation is driving this renewed focus and now more than ever, businesses have both an opportunity and a responsibility to demonstrate ethical leadership and make a meaningful difference.

Intelligent technology carries enormous potential as well as consequences, both positive and negative. As a result, business leaders are facing new issues around business responsibility, including removing bias from AI, addressing the impact of automation on their workforce, ensuring the responsible collection and use of workforce data and ensuring resiliency to cyber-attacks.

Leading companies are beginning to consider the impact their technologies and operations are having on the wider society. At its core, responsible business means addressing two fundamental questions: how do we innovate ethically and how can we help to promote inclusive growth?

Think of corporate citizenship as an investment in driving the responsible business agenda forward and finding win-wins for both business and society.

How does Accenture demonstrate responsible business through corporate citizenship?

Responsible business is inherently a part of our DNA – and always has been. For Accenture, this means ethically, proactively and continuously assessing the consequences of innovation while creating trust with our clients, our people and society.

Our corporate citizenship initiatives combine our people’s expertise and passion with our understanding of technology and its impact on people to develop inclusive, responsible and sustainable solutions. A few examples of what this looks like in practice are: 1. Creating new skilling pathways for an inclusive future of work in which all workers have the motivation, means and opportunity to adapt to and thrive in the digital economy.

2. Working with our clients to navigate an exciting but uncertain future with artificial intelligence, with transparency and accountability at the core.

3. Taking our environmental strategy to the next level by developing responsible solutions for further sustainable growth.

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LEADERS 41

PURPOSE

A Business of People An Interview with Donald B. Marron, Chairman and Founder, Lightyear Capital EDITORS’ NOTE Donald Marron When you evaluate investment founded Lightyear Capital in 2000 opportunities, how critical is the and serves as Chairman and a memstrength of the management team? ber of the Investment Committee.

The absolute key is management; Prior to this, he served as Chairman this is a business of people. As we and CEO of PaineWebber Group Inc. look at the evolution of Wall Street, for 20 years. In 2000, PaineWebber and particularly of money managemerged with UBS AG, creating a top ment, we find an increasing separation wealth and asset management firm. between those that have been able to Following the merger, Marron served navigate the big change in regulation as Chairman of UBS Americas until and technology and markets and those September 2003. Prior to his tenure that have not. at PaineWebber and UBS, Marron Donald B. Marron Whatever opportunity we find, it served as Pr esident and Chief has to have good management or we Executive Officer of Mitchell Hutchins. He began have to be able to put good management into it. his career at the New York Trust Company and, You have a long history of philanin 1969, co-founded Data Resources Inc. (DRI) thropy. What are the keys to effective with Harvard economist, Dr. Otto Eckstein. philanthr opy and how do you focus Marr on served as DRI’s Chair man until your efforts?

McGraw-Hill Inc. purchased the firm in 1979.

The big issue for anyone that wants to Marron attended The City University of New effectively use the money they direct to charity York. In February 2013, New York University is whether they do it with big established orgaannounced the launch of the Marron Institute nizations or with smaller and more specialized on Cities and the Urban Environment, an inter- organizations. We tend to do both. disciplinary and international effort to advance We support Memorial Sloan Kettering vital new research and teaching on cities and Cancer Center just because of the basic the urban environment. research it does in cancer and because of the great clinical care that it offers to a COMPANY BRIEF Based in New York, growing number of people. That is a major Lightyear Capital (lycap.com) is a leading issue for all Americans – it’s amazing that private equity firm making primarily control cancer permeates so many families in so investments in North America-based, mid- many ways. dle-market financial services companies.

I’m also involved with MOMA and that Through its affiliated funds, Lightyear has continues to be important. raised over $3.5 billion of capital and has We have started the Marron Institute of completed investments across the financial Urban Management at NYU. A few years ago, services spectrum, including asset manage- the world reached the point where, for the first ment, banking, brokerage, financial tech- time, more people were living in cities than nology, insurance and specialty finance. were not. It highlighted the need to be thinkThe senior team of professionals averages ing about how to build and manage cities, and over 25 years of financial services-related how to deal with many of the big problems experience. they have.

Finally, the area that is so important to Will you discuss Lightyear Capital’s focus me is the homeless. The Coalition for the on the financial sector?

Homeless in New York is doing an extraorIt has turned out that the financial sector dinary job, both as an advocate and in taking has been the focus of substantial change and care of the homeless, but much more needs to regulation and has clearly been in the middle of be done. the questions about the economy, be it interest Are the skills needed to be successful rates or markets or volatility or liquidity, which in business transferable to being effective are all big issues. in philanthropy?

This gave us an opportunity to find investIn the case of a business, it’s about business; ments in companies that focused on those in the case of a not-for-profit, it’s about the focus, issues and were able to take advantage of them. and combining it with effective leadership.

42 LEADERS

In all the things we do, we look to find really special people we can work with and invest in.

For example, for our cities program at NYU, we work with Paul Romer, who left to go to the World Bank and is back. Paul won the Nobel Prize in economics earlier this year.

He is an important thinker and has been a very serious contributor to the building of NYU’s Institute and a lot more can be done there.

Notwithstanding AI and automation and technology, it’s still about people.

On the philanthropic side, is it important that the organizations you support have metrics in place to track impact and is it difficult to develop metrics in some of these areas?

I think it’s very difficult, and I don’t think we can use the same approach as we use in business.

Here, we’re dealing mostly with people, many of them hands-on people, particularly with issues such as working with the homeless.

We have to first get to know the management and be convinced that it’s the kind of management that is needed and then we have to track the impact it makes on people – sometimes those are metrics, and sometimes it’s more about meeting with people and getting a sense of what is being accomplished.

Education is a passion for you. Is enough being done to address education reform and preparing the next generation for the jobs of the future?

We have to realize that we now have a society where everybody feels they have to go to college, but they generally do so without having a very good sense of what that education is going to do for their careers.

We have to figure out what to teach young people that will allow them to become constructive citizens for the country. Coding is an obvious area – the demand for that skill is growing rapidly and it’s a language that can be learned by young people.

There must also be other specialty areas where that should be the case.

Are you able to take moments to reflect and celebrate all that you have accomplished?

For me, and for most people who are fortunate, it’s a function of building. I like to build things or be part of something being built in a constructive way. That is the heart of it.

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VOLUME 42, NUMBER 2

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PURPOSE

A Valued Partner An Interview with James W. Crystal, Vice Chairman, Alliant Insurance EDITORS’ NOTE After joining his father, Frank Crystal, at Crystal & Company in 1961, James Crystal was named President in 1963. Crystal serves as Vice Chairman and Member of the Board of Alliant Insurance, Vice Chairman, Trustee, and Member of the Executive Committee and Co-Chairman of the Audit Committee of Mount Sinai Medical Center, along with serving on the board of K2 Intelligence.

they’re doing is trying to get pieces of an account or pay more to get that account, neither of which is helpful to the client.

There is growth for companies that are creative in finding new products.

There are also growth opportunities because the world is in such turmoil that we need to look at inventive solutions to solve situations that we have never had to face before.

Is there an appreciation and understanding in regard to providJames W. Crystal ing value as opposed to just the best COMPANY BRIEF Crystal & Company price for clients and how do you (crystalco.com) is known as a leading strate- build client loyalty today? gic risk and insurance adviser, addressing cliI believe there is, but it has to be earned. For ents’ risk management, insurance brokerage and those that are selling only on price, no loyalty is employee benefits consulting needs. Founded in created because someone else will always come 1933, Crystal & Company was comprised of more in cheaper. But if one is interested in establishing than 400 colleagues in 11 regional offices across relationships with the client as well as the insurer, the United States and placed more than $1 bil- that can grow over time based on mutual respect lion in premiums in the global marketplace annu- and quality delivery of products and services. ally. Prior to its acquisition by Alliant Insurance I believe more people are looking for loyServices, Crystal & Company was a family enter- alty than one would assume, but loyalty has to prise spanning three generations of Crystal family be earned by deed, not just by word of mouth ownership and management. or price.

Will you discuss the strength that Crystal & Company’s relationship with Alliant has brought to both organizations and has this relationship progressed the way you had hoped?

The strengths of each organization were basically the challenges of the other.

For example, Alliant is the biggest construction broker in the U.S. We had almost no construction business, and what we had, they could easily build upon.

On the flip side, they had a limited amount of financial institutions and high net-worth personal business, which we are now in the process of expanding upon.

Once we identified strengths and areas to improve, we’re now morphing into a bridge hand where we each play our strengths.

Is this a time for growth in the industry and will you discuss your views on growth opportunities for Alliant?

This isn’t a growth industry, but I believe a good deal of the growth will come through consolidation. As an industry, we don’t need a large number of fringe players who try to siphon off the best and contribute nothing more to the business that another company is already doing. All 44 LEADERS

One wants to have a relationship and a quality intellect for a long time.

How critical are personal relationships when you look at the impact technology is having on the delivery of services in the insurance industry?

Personal relationships are just as important today as ever, but they will only get someone as far as their ability to deliver a product that meets the needs of the client, and technology will help increase the product and service capabilities.

Technology cannot completely replace personality or the intellect of underwriting, so there has to be some space for personal relationships.

We have clients that go back 40 years through numerous owners. I don’t think we’re totally unique in that respect, but one has to continue to earn this relationship. You can’t acquire the business of a client and never have any touching points except for renewal or an occasional claim.

Most people need a little TLC and not just a reminder that it’s time to pay their bill and renew the policy even though they haven’t seen us in a year. That relationship isn’t going to last.

Can more be done to build a better understanding of the need for insurance and the critical role that the industry places in providing financial security?

There is a fundamental problem in that the insurance industry is not one that generates great love from its clients.

If one goes to a cocktail party and says they’re in the insurance business, someone will say, either on a personal or corporate basis, why they hate insurance. This has to be overcome. The industry has to understand that the client, if they had a substitute for insurance or a big enough cash flow, would probably not buy insurance or would buy it at a level where they would never expect to have a claim paid.

This gets back to insurance having to acquire the respect of the client as a valued partner.

Insurance can be no different than banking, corporate finance, or law. One has to know what the client does, what their needs are and what is frightening them about their business and what they don’t want on their balance sheet.

At that point, we can bring technology to bear and give them equations that make sense from a financial and coverage point of view.

Too much of the industry is constructed on a transactional basis without being backed by personal service and an understanding of the client’s needs and wants. Ultimately, clients expect someone who will do research and provide a value of more than a cold call or a thin string of a relationship. One wants to have a relationship and a quality intellect for a long time.

If business gets transferred from one broker to another or one insurer to another, it’s generally based on dissatisfaction of the client either with a product or service, or with the pricing.

We can’t always sell on price. There are plenty of people who still don’t buy online. They may look online, but they want advice and brain power.

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PURPOSE

Developing State-of-the-Art Properties An Interview with Joseph Moinian, Chief Executive Officer, The Moinian Group EDITORS’ NOTE Joseph Moinian, the New York City-based developer, investor and long-term owner of prime real estate nationwide, is recognized for pioneering the development of emerging neighborhoods in major metropolitan cities across the United States. He is a member of the Board of Governors of the Real Estate Board of New York and sits on the board of the Skyline Museum.

gleaming office tower rising in the heart We have spent our entire history investing, of the Hudson Yards District. Oskar, one developing, and leasing a wide range of properof our luxury rental residential properties ties in the country’s most competitive markets. on 11th Avenue, launched last year and We have always taken the long view, investhas seen a rapid pace of leasing. This ing in overlooked neighborhoods with unrealyear we plan to be very active on the ized potential, holding until market conditions residential development side – we are are right, and then building to the highest levmaking our first venture into Brooklyn els of excellence and elegance. We have also with a rental property in Prospect embraced the use of technology and partner Lefferts Garden at 123 Linden Boulevard, with the most innovative firms. We strive to be as well as bolstering our already strong ahead of the curve. We don’t have any plans presence in Downtown Manhattan with to slow down regarding new development and COMPANY BRIEF Founded by Joseph Moinian a rental property at 2 Washington Street look forward to continually developing new, Joseph Moinian in 1982, The Moinian in the Financial District. The financing state-of-the-art properties.

Group (moinian.com) today boasts a portfolio of arm of our business, Moinian Capital Partners, How critical has it been to attract top talmore than 20 million square feet of property has already placed more than $750 million into ent to the firm and how important is cultural and is among one of the only national real the market. fit when hiring for The Moinian Group? estate entities to develop, own and operate In any business, you are only as good properties across nearly every asset cateas your people. It is critical to surround gory, including office, hotel, retail, conyourself with talented, dedicated profesdos and rental apartments. The Moinian sionals who share your vision of success Group has been a pioneer for the develand believe in your company’s values. I opment of state-of-the-art, visually distinam fortunate to be able to work with my guished properties. family every day, and then bring in outside professionals to expand our capabilities at Will you discuss your vision in creating every level. This past year my daughter, The Moinian Group and how the firm Max, graduated from MIT with a masters has evolved through the years? in Urban Design and has taken a key role I founded The Moinian Group in in shaping the way we approach design 1982. In the years since then, we have and development sustainably. developed, owned, and operated properYou have made a lasting impact ties across nearly every asset category on New York real estate. Do you take including office, hotel, and retail, as well as moments to reflect and appreciate residential condos and luxury rentals. What what you have built? started as a small firm has expanded to a It is always satisfying to look back on portfolio in excess of 20 million square feet our success and all that we have accomacross major markets including Chicago, plished at The Moinian Group over the Dallas, Los Angeles and, of course, New The lobby of Oskar, a Moinian building located at 572 11th Avenue at the intersection years. However, our main focus has and York City. We are primarily focused on always will be on the current and future of the breathtaking new Hudson Yards and the rapidly transforming Hell’s Kitchen developing and maintaining state-of-theactivity of the company – maintaining our art, aesthetically distinguished properties What is the current state of the New York current portfolio and exploring new opportunities. across the city. We have refocused our energy to City real estate market and do you worry about What are your key priorities for The concentrate on New York, including Downtown, oversupply with all of the new development Moinian Group as you look to the future? the Far West Side, and other emerging neighbor- taking place?

We are always focused on maintaining a hoods. In recent years we have grown our busiWe are always enthusiastic about New York. standard of excellence across our portfolio, someness to include a formal lending division, Moinian The demand to work, play, live, and learn here has thing that will always be a priority for the comCapital Partners, and a venture investment arm, only increased over time. In my mind, the amount pany. Looking to the future, we are excited for Currency M. of new development taking place in the city makes the possibilities that come alongside expanding Will you provide an overview of your things exciting and I am eager to see how it contin- our residential portfolio, both in areas where we current projects and developments? ues to transform the landscape. New York is like the have strong roots – like Downtown Manhattan – The Moinian Group is more active than best fashion – it never goes out of style. and ones we hope to help shape – like Prospect we’ve ever been. Last year we partnered with How do you define The Moinian Group Lefferts Garden, Brooklyn. We also expect that our Boston Properties to develop our crown jewel, advantage and what have been the keys to financing arm, Moinian Capital Partners, will con3 Hudson Boulevard, a 2 million-square-foot the firm’s success? tinue to grow and be active in the space.

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PURPOSE

Building a Better Working World An Interview with Richard M. Jeanneret, East Region Managing Partner, EY EDITORS’ NOTE Richard Jeanneret Will you highlight EY’s strength is also a member of the Americas in the East Region?

Operating Executive and United With thousands of EY professionStates Executive boards at EY. He als calling the area home, the East is leads more than 12,000 professionthe largest and most robust EY U.S. als across all business units in 22 region. We service a significant numoffices stretching from Boston to ber of Fortune 500 companies, capiRichmond. He has also served on tal providers and numerous mid-size the firm’s Global Advisory Council. organizations as well as the vibrant Prior to his current role, Jeanneret technology and entrepreneurial comserved as the Americas Vice Chair munities. Our main difference is our of Transaction Advisory Services, people and how these exceptional where he led more than 3,600 pro- Richard M. Jeanneret high-performing diverse teams colfessionals in the United States, laborate with our clients to help them Canada, Mexico, Central and South America, solve their most complex business issues. the Caribbean and Israel. He has more than 30 What is your outlook for growth for EY years of transaction experience with both private in the East Region and where do you see the and public companies, advising on mergers and greatest opportunities for growth? acquisitions for corporations and financial buyEY has been the growth leader in the ers; public company spinoffs; initial public offer- profession for the past several years. The East ings; and securities offerings. Jeanneret received Region has been a major contributor to that his bachelor’s degree in economics from Boston growth and due to its sheer size has produced College. He is a member of the American Institute more dollars of top-line growth to the firm than of Certified Public Accountants, as well as the any other EY region. The opportunity for innoEconomic Clubs of New York and Washington. He vation, due to the disruption caused by techalso sits on the Boards of Wolf Trap Foundation, nology, is everywhere and, in a region robust Lincoln Center Business Advisory Council and is in industry convergence, EY has and can conan Ex-Officio Board Member for the Partnership tinue to guide our clients’ success through this for New York City. transformation.

How close is the coordination at EY FIRM BRIEF EY (ey.com) is a global leader in from region to region in order to provide assurance, tax, transaction, and advisory ser- seamless, consistent service and solutions? vices. In the Americas – EY’s largest and fastThe benefit of being part of such a large est growing area – it employs more than 65,000 global organization is that we are able to bring people across 30 countries and generates $15.6 the power of the whole firm to our clients. We billion in revenues. Globally, EY employs more operate as one EY and whether it’s between than 260,000 people and generates $34.8 bil- regions or service lines, we collaborate to offer lion in revenues. some of the best and most effective solutions by specialists in their field. We encourage an What have been the keys to EY’s industry lead- environment of cross service line integration as ership and what makes the firm so special? well as align our teams by industry sector to There are many factors that make EY a best support our client’s numerous growing unique business leader. I think the most impor- needs for their business. tant to highlight would be our commitment to EY serves many of the most well-known our purpose, our culture and our people. We global companies, but also leads in supporthave a defined purpose of building a better ing and working with entrepreneurs and working world and our professionals contrib- emerging companies. Will you discuss EY’s ute to that purpose every day as they work commitment to entrepreneurship? with our clients, each other and the commuWe have a long history in supporting and nity. Our culture is defined by our global code celebrating our entrepreneurial community. of conduct and keeps us closely aligned with Alongside our 32-year-old Entrepreneur Of The our values and beliefs. Our people create and Year™ signature program, in which the East has deliver exceptional client service with experi- five local programs, we are embedded in the ence, skill and ingenuity. ecosystem as advisors to venture capitalists and 46 LEADERS

private equity firms, high-growth and private businesses, groundbreaking start-ups and nonprofits and other entrepreneurial organizations.

New York is one of the strongest hotbeds of technology and entrepreneurship in the U.S., so our region has the privilege to guide and collaborate with some of the world’s most innovative organizations.

EY places a major focus on building a diverse and inclusive workforce. How critical is this to the success of the firm and how important is it for EY’s workforce to mirror the diversity of its clients?

We believe that given today’s social climate, diverse and inclusive teams are a modernday workplace expectation, both to our people and to our clients. It’s extremely important for us to focus on diversity because we know that building diverse, high-performing teams and cultivating a culture of inclusiveness, where all differences are valued, are key to delivering exceptional client service and diverse teams enable us to offer better solutions and service to our clients.

In addition, research has shown that companies with diverse teams that are led inclusively perform better than those with more homogenous teams.

Technology is playing a major role in the profession and transforming the way work is done. How is EY leading in implementing new technology into the business and how important is it to make sure that technology does not take away from the human touch and personal relationships that are at the heart of EY’s culture?

Whether it is through development of our own technology to better educate our clients on M&A decisions, or the thousands of bots automating portions of our tax practice, or utilizing blockchain to ensure security, we have fully embraced the use of technology to provide valuable insights, increase efficiency and offer advanced solutions.

Leveraging technology enables and fosters an environment of innovation.

Technology plays an increasingly important role in how businesses grow and function, but it doesn’t remove the invaluable elements of human interaction, trust and building meaningful relationships. Technology enables us to shift some of the responsibilities off our talented and skilled professionals to allow them to focus on critical functions that only humans can successfully perform.

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You serve as EY Americas Executive Sponsor of Unity. Will you provide an overview of Unity and EY’s support and commitment to LGBT+ professionals?

The objective of our LGBT+ professional network, Unity, is to support and promote an LGBT-inclusive culture at EY and foster a sense of belonging among our LGBT+ people and their allies, as well as to share best practices with our clients. We have 70+ active chapters across the globe, thousands of members, and provide extensive education and networking opportunities for our LGBT+ professionals. Through our efforts as a firm and through Unity, we can encourage a culture where everyone feels that they belong regardless of sexual orientation, gender identity or gender expression. Our efforts extend beyond our walls as our strong internal network frequently connects and collaborates with the LGBT+ community on various initiatives and programs, such as our engagement with local LGBT+ Chambers of Commerce and through hours donated to LGBT+ serving community organizations via our EY Connect Day efforts. We also engage with our clients who share similar values and beliefs, as this helps align our organizational strengths to advance equality for all.

Will you highlight EY’s initiatives geared toward the LGBT+ community?

EY is a leader in supporting, advocating and championing for the LGBT+ community with government, LGBT+ community organizations, among other business leaders and with our clients. I’m proud to acknowledge that we were one of the first professional services firms to sign on to the HRC Business Coalition for the Equality Act, which supports the Equality Act, federal legislation that would provide the same basic protections to LGBTQ people as are provided to other protected groups under federal law. We also spoke on the Hill about the business perspective on the U.S. Commission on Civil Rights Report on workplace discrimination faced

by LGBT+ Americans. Internally, the EY U.S. Executive Committee (USEC) recently signed the EY Board Diversity Statement to demonstrate our commitment to leading inclusively and to our increased focus and accountability around Diversity & Inclusiveness (D&I) progress.

On a local level, we joined other Massachusetts business leaders and were a key contributor to upholding anti-discrimination protections for transgender people through the “Yes on 3” campaign, which backdrops our strong internal efforts to ensure our trans and non-binary people are supported via robust benefits and resources.

On a global level, at the recent World Economic Forum, we announced via a press conference our collaboration with six other industry leaders to formulate a partnership to fund and lead the charge in focusing on helping companies activate their implementation of the UN standards of business conduct around LGBTI inclusion. EY was one of the early signatories on the UN standards in 2017 and we are now joined by over 200 other companies.

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Throughout the year we also sponsor numerous LGBT+ conferences and programs, which this year will include significant activities across the globe, especially in host city New York City, to celebrate World Pride. We also regularly present and share our best practice with our clients to help further develop their own inclusiveness programs. These are just some examples of how EY is an active and vocal supporter outside of our internal initiatives.

Is that impact and the value of the professional services industry well understood and does the profession do a good job of telling its story?

We have a much bigger impact on society and the capital markets than some might be aware.

It’s reasonably well known that we’re important to the capital markets because of the role we play in the regulatory environment through our audits and our tax work, but EY’s leading culture sometimes might not be so evident.

We have a tagline of building a better working world and we bring it to life through our culture and how we engage with our communities.

It’s particularly noteworthy when it comes to diversity and inclusion and the opportunities EY creates for everyone, no matter what their gender, ethnicity or sexual orientation.

We are also doing work now with younger people on the neuro-diversity spectrum such as autistic professionals, who have come to work for us because we’re committed to those societal shifts.

We have had a big impact on culture and on business values and ethics. We have a tagline of building a better working world and we bring it to life through our culture and how we engage with our communities.

We’re very committed to our communities, both civically and philanthropically, with respect to local government, how we make our cities better and how we contribute.

That is a part of who we are and was probably not as well known before our current and outgoing Chairman, Mark Weinberger, took office and instituted a clear focus on purpose, and from purpose came building a better working world, and our culture and values rapidly evolved around this.

Are the skills needed today in the profession different given the impact of technology?

The same skills that we have always needed are still needed, however the types of skill sets required have increased.

We’re hiring a lot more data engineers and scientists and people with different educational backgrounds that can improve the quality of what we do and the products we offer.

I don’t think we’re going to need fewer employees – we project out very far in our business and our revenues are projected to grow for a long time, so the workforce will grow with it. It might not grow as linearly because of the advancement of technology, but we expect to still have continued job growth.

I anticipate that we’re going to have people doing jobs that don’t exist today or haven’t even been thought up because the technologies haven’t even been invented yet.

For instance, data allows us to do things more efficiently, but we still need people to mine and analyze the data, as well as provide insights. Data is not just a tool that allows us to be more efficient; it can provide deep understanding into challenges and opportunities but someone has to analyze what it all means.

What advice do you offer the next generation coming into the industry about the keys to building a sustainable career?

I support intellectual curiosity and encourage the younger professionals to do more than just the assigned task, and to take some time to invest in the client relationship, so they can fully understand the client’s business.

They will find more professional satisfaction if they do that, and they’re likely to learn and progress through their careers much faster if they build those relationships.

Looking back to when you joined EY, has the experience been what you expected?

The journey has been much more multidimensional than I ever thought it would be.

The firm is constantly changing and there is no limit to our creativity and ingenuity. The opportunities as vast as we want them to be.

If someone is talented and wants to make a great contribution, this is an incredible organization that allows people to do just that.

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LEADERS 47

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PURPOSE

Child Health An Interview with Patrick M. Vivier, Professor of Health Services, Policy and Practice and Director of Interdisciplinary Education Programs, School of Public Health, Brown University and Institute Director, Hassenfeld Child Health Innovation Institute EDITORS’ NOTE In addition to being a pediatrician and doctoral-level health services researcher, Dr. Patrick Vivier has extensive experience in curriculum development and teaching for undergraduates, graduate students, medical students and postgraduate trainees. He is also the Director of Interdisciplinary Education Programs in the School of Public Health at Brown University. In his role as Institute Director of the Hassenfeld Child Health Innovation Institute, Dr. Vivier is Patrick M. Vivier responsible for day-to-day operations.

He attended Dartmouth Medical School and Brown Medical School, receiving his degree from Brown in 1989. Dr. Vivier completed his residency in pediatrics at Rhode Island Hospital and also completed a health services research fellowship and received a Ph.D. from the Department of Health Policy and Management in the School of Public Health at Johns Hopkins University.

INSTITUTE BRIEF Hassenfeld Child Health Innovation Institute (brown.edu/initiatives/ child-health) was launched in September 2015 thanks to a $12.5 million gift from the family of retired Hasbro Chairman and CEO, Alan Hassenfeld. Brown University is raising an additional $12.5 million to match the founding gift, supporting an integrated approach to research, clinical practice, public health efforts, and educational programs. The Institute, located at Brown University and created in collaboration with Hasbro Children’s Hospital and Women & Infants Hospital, targets autism, asthma, obesity and other urgent problems affecting the health of children. Hassenfeld Child Health Innovation Institute seeks to integrate research, clinical practice, public health efforts and educational programs to achieve the following goals: improve the health of children, make the communities it serves among the world’s healthiest places for children and their families, address the issue of poverty and how it impacts child health, serve as a national and international model for what can be achieved in child health, and train the next generation of child health leaders.

Will you discuss the vision for creating the Hassenfeld Child Health Innovation Institute?

The Institute brought a number of different experts together to address four main goals. The 50 LEADERS

first is to make in Rhode Island, which means a lot to me and the Hassenfeld family, the healthiest place in the world for kids.

To do that, we have to address the second goal of addressing issues of poverty because we know what a strong determinate this will be in the outcome.

Rhode Island is a special place because it’s smaller and there are things we can try here that would be difficult to do in a larger place. If we can learn critical things or find new ways to do things, we can then achieve our third goal of being a national and international model in child health and welfare.

Hopefully, we will get a lot done in our lifetimes, but people younger than us will have a longer chance to do that, and our fourth goal is to train that next generation and make them part of the solutions now and make sure that they are ready to take things further than we can take them.

The vision started with the goal of focusing locally but applying what we learn nationally and internationally.

Will you discuss the collaboration between different entities and what has made these partnerships work so well?

Alan Hassenfeld’s gift to the Institute came through Brown, but with the understanding it would include all of Brown’s partners.

That brings together the medical school where we can tap into the expertise of its physicians, its school of public health and the other campuses at Brown, as well as the Hasbro Children’s Hospital, which is near and dear to Alan’s heart. In Rhode Island, 90 percent of inpatient stays for kids are at that one hospital, so it is a great place for us to study and learn what we can do to create better outcomes.

There is also Women and Infants Hospital on the same campus where between 75 and 80 percent of Rhode Island babies are born.

As part of establishing the Institute, each entity was to be a partner from the beginning.

The Institute is led by the executive committee. I serve as director and focus on the day to day operations, but the people who are in charge are part of a three-member executive committee which is comprised of Phyllis A. Dennery, MD, who is the chair of pediatrics at Brown and the pediatrician-in-chief at Hasbro Children’s Hospital; Maureen G. Phipps, MD,

MPH, who is the chair of ob-gyn at Brown and the head of ob-gyn at Women and Infants hospital; and myself. The three of us make decisions within the Institute, answering to an advisory council that Alan is on as well as our director of the department of health for the State of Rhode Island and other national leaders.

We have also developed a very close relationship with the Rhode Island state government.

What are the Institute’s main priorities?

One of the big projects we’re now working on is a comprehensive assessment of child health throughout the state. To do that, we have connected with every state agency doing work with children such as the Rhode Island Department of Health; the Department of Education; the Department of Children, Youth and Families; the Medicaid program; and the Department of Human Services, along with three of the major urban school districts, to study issues from pregnancy to birth to whether third grade kids are reading proficient.

Every month, members of each of these state agencies come together to look at the data we’re analyzing to make sure we understand it and figure out how it affects policy.

We even have a deeper dive just for the Department of Health. Once a month, Rhode Island’s heads of those departments hold a Children’s Cabinet meeting that I attend, where they talk about these issues.

We have a shared dream to make a difference and have all spent time working to bring all the players together to go for it.

Will you touch on the Institute’s collaboration with the Fashion Institute of Technology (FIT)?

FIT reached out to Alan to do a special seminar at their school on developing toys specifically for children with autism so they could design toys that would be particularly useful for that community. Alan reached out to us to provide the experts on autism.

Last year, I took one of the leads of our autism initiative, as well as the head of the Rhode Island Autism Project who has an adult child with autism, to FIT. They discussed what autism is and the challenges of being a parent of an autistic child.

We came back a month later and saw PowerPoint presentations of the toy designs the students had come up with and critiqued them.

They developed prototypes of these toys, which were impressive.

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It’s an incredible partnership and we just started the second year. We will come back soon and do another three sessions with them.

We have connected with NYU to get them involved in this effort as well. Much of this will play out in Rhode Island, but it’s also about connecting with the world to try to innovate and move forward.

Is a holistic approach necessary when looking to improve children’s health?

It has to be if we want kids to get the most out of life that they possibly can.

For instance, our third-grade reading goals depend on having done everything right during pregnancy, such as feeding and nutrition, so they develop normally. These are all related to being able to read in third grade.

We’re finding out that a lot of kids can’t read by third grade. If we look at why, we find that premature babies, those who are lead poisoned, or those from low-income areas, are much less likely to be reading proficient.

If we want to impact this problem, we have to fix the third-grade classroom and have summer programs, but there are other pressing precursors that need to be examined. Almost any issue that we address must be looked at holistically.

Our healthy weight and nutrition group has been focusing on summer weight gain. There are a number of nutritional options when kids are in school but, when the kids go home, they don’t necessarily have access to good food, nor can they be active if their neighborhoods aren’t safe. This can lead to poor nutrition choices and weight gain.

We have been conducting summer camps and studying the impact of active living in the summer and what that does for weight gain.

Almost any issue that we address must be looked at holistically.

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Success in any of these programs requires bringing parents and those administering the programs together. How are you engaging all of the different parties?

It requires all parties. That is the reality with everything we do.

There might also be structural issues that need to be addressed. Maybe the family can’t get access to good food or places where physical activity can take place.

It requires education, but also engineering products to make them better and the enforcement of restrictions on activities that should be against the law. Furthermore, it requires empowering communities to try to get involved in what is happening.

However, there is still a lot that we don’t know. For instance, if we are to design better toys that will help kids with autism, there is a lot we need to know about how kids with autism approach play. There is a lot we already know that has not been put to the right use yet, but there is also a lot we don’t know.

Our autism group, for example, is also looking at the genetics of autism and realizing that it’s probably not just one gene. This may mean that with one genetic profile, we should do things differently than with another genetic profile.

It’s the same thing with asthma; we’re looking at markers and biomarkers to understand what is developing and putting kids at risk.

That is where the heavy focus on science comes in.

Does this effort need to be driven at the public level or by the private sector?

It is a partnership. Everybody needs to be involved.

We are anxious to try to increasingly work with the private sector, be it the Hasbro toy company or others. The nonprofit sector is important as well.

The government also plays an important role – there are things government can do that those other sectors can’t.

I don’t think we can say this is just a healthcare industry problem or a government or private sector problem. The only way this will be solved is if everyone makes this a priority.

How do you define success for the Institute?

We need a healthy tension between patience and impatience. We have to be realistic about where we can go, but if we keep grading on the curve, we will never get to where we need to be.

It’s a balance.

We’re trying to work on metrics on a micro level – we tried this intervention, did it work?

Is it interesting enough that we want to make this a national or international model? Looking at metrics on those manageable levels helps us figure out what we should try to scale up.

For instance, we’re partnering with state government on the third-grade reading level.

The governor of Rhode Island said that 75 percent of babies born last year need to be reading proficient by the third grade. It’s currently 40 percent. This helps us develop a solid metric.

I don’t think we can say this is just a healthcare industry problem or a government or private sector problem. The only way this will be solved is if everyone makes this a priority.

The spirit of innovation has to be all of us moving these metrics and how we leverage all of the pieces we have and then measure to see if we’re accomplishing something or not. Then everyone can take credit.

Are you able to enjoy the process and celebrate the wins or is it always about what’s next?

We try to find a balance. We do try to be happy when something happens and try to celebrate reaching intermediate goals.

For the asthma team to be only one of four in the country to get a certain grant and to know that this was all attributed to the team that took advantage of everything the Institute was designed to do and leveraged it to do something amazing, was a great feeling.

We were able to get every state agency to share data and personnel to examine the data school district by school district. To connect these data sets in this short of a time and have every director of every department be focused on this kind of child health issue is amazing.

To be able to see the deans and all of these centers working together is also amazing.

These successes are celebrated for a short period, but most of the day is spent focusing on the things we haven’t done yet.

Are you concerned about attracting the next generation of health leaders and what do you tell young people about a career in medicine?

We’re always enthusiastic with learners. If I’m talking to a first-year medical student, the energy they bring into this energizes me.

I sometimes lament about the way things used to be and it is challenging to make a difference today, but we have incredible people and they are going to make a difference.

I’m excited when I talk with the students and they’re excited too.

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PURPOSE

A Force for Good in Society An Interview with Daryl Brewster, Chief Executive Officer, CECP EDITORS’ NOTE Daryl Brewster has served as the CEO of Krispy Kreme Doughnuts, Inc.; President of Kraft’s $6-billion North American Snacks, Confections, Cereal, and Pet portfolio; President of the $2-billion Planters Specialty Products Company; and Managing Director of Campbell Soup’s U.K./European operations. In addition, Brewster serves on several public, private and nonprofit boards.

ORGANIZATION BRIEF Chief Executives Daryl Brewster for Corporate Purpose (CECP;cecp.co), a global nonprofit organization, is a CEO-led coalition of more than 200 CEOs of the world’s largest companies across a wide range of industries that believes that a company’s social strategy – how it engages with key stakeholders including employees, communities, investors and customers – determines a company’s success. CECP provides its members customized connections and networking, counsel and support, benchmarking and trends, and awareness building and recognition striving to solve some of the world’s most pressing problems and drive through their sustainable value. Through CECP’s CEO Investor Forums, CECP provides a platform for CEOs to present long-term strategic plans to long-term investors, supporting progress towards re-orienting capital markets toward sustainable value creation.

Will you discuss how CECP has evolved in order to remain relevant and drive impact?

Over the past five years, we have tripled the size of CECP by listening carefully to the companies that we serve to better understand the needs and challenges of business today and provide solutions to address those challenges.

We are building on CECP’s unrivaled survey and have continued to hold world-class events as well. As we move toward CECP’s 20th anniversary this year, we have also added programs to engage with a broader number of companies, while also diving much deeper.

Thirty percent of our companies are participating with other companies in specific communities that are addressing today’s challenges and issues.

CECP is also developing much deeper research with our companies and we’re learning from it. We just finished a survey on diversity and inclusion sponsored

by Walmart. This continues a strategy of sharing best practices in the field.

CECP has been tracking the rise of “corporate purpose” as well, watching as leading companies become laser-focused on corporate purpose. They explore what their purpose is, how it translates to their 52 LEADERS

people and community and bring that purpose to life through intentional practices and strategies. Not only does this consideration on purpose offer a competitive advantage in workforce challenges, purpose leads to a future-forward outlook that enables a longterm view.

We also have expanded engagement opportunities for leading CEOs. CECP’s annual Board of Boards meeting and it’s CEO Investor Forum continue to grow.

We have had roughly 30 leading CEOs share their integrated long-term plans with investors representing nearly $30 trillion in assets under management. This is operationalizing the calls companies are hearing from investors and stakeholders to create sustainable value.

These opportunities help companies think more deeply and comprehensively about their social strategies and sustainable practices as part of the overall business enterprise.

Will you discuss the vision for CECP’s Global Exchange?

Over the past several years, with the support of Newman’s Own Foundation, CECP embarked on an effort to cultivate a global network of organizations that are on the leading edge of social strategy. Today, we have assembled partners in 18 countries around the globe representing over half the world’s population and two-thirds of the world’s gross domestic product.

In a world where politicians are focused on their own geography because that’s where their votes come from, it is leading businesses that are driving sustainable global practices.

There is a lot of interest in how CECP and leading companies can be a force for good in the world.

What is the mission behind CECP’s Strategic Investor Initiative?

This initiative was inspired by a CEO at CECP’s annual Board of Boards in New York City. At a panel discussion, the CEO of the biggest pension fund in America told our assembled CEOs that their orientation was too short-term, and 86 percent of CEOs agreed.

After spirited discussion, CECP was asked to step in and improve the dialog between companies that are trying to focus on the longer term and the increasing numbers of investors who are thinking along those same lines.

We launched the Strategic Investor Initiative and have already held six CEO investor forums where more than 30 CEOs representing nearly $3 trillion in market cap have shared their long-term plans. The investors at each session represent $25 to $30 trillion in assets under management and include thousands of online listeners.

When leaders think about their businesses from an integrated long-term perspective, strategies concerning issues such as the environment, social impact, and governance become more important.

These issues may not be addressed on the quarterly call, but they certainly matter over time.

The Strategic Investor Initiative honors the view of our founders, John Whitehead, Paul Newman, Paul Volcker and David Rockefeller, that the capital markets can also participate in building a better world by investing in responsible businesses which research increasingly shows outperform over time.

After 20 years of existence, is the mission of CECP even more critical today given the environment we live in and the issues we are facing?

Absolutely. CECP was created with the mission to encourage and empower the world’s leading companies to be a force for good in society. This was a nice thought back in the 1990s when it started, but it is even more important today. We’re seeing business trust scores improving. People trust their employers now more than ever, but there is room to go.

There are several big trends that we are seeing in our work: First, companies are banding together because they realize strength in numbers when addressing social issues is key. Businesses are joining forces on specific issues like diversity and inclusion with the CEO Action for Diversity and Inclusion, led by the Big Four accounting firms. Veterans on Wall Street (VOW) is another great example, as well as the 100,000 Opportunities Initiative led by Starbucks, JP Morgan Chase & Co., Microsoft and more than 50 other companies.

Second, we’re seeing employees’ voices gain power and have meaningful results. Low unemployment rates and the ongoing war for talent have created a new focus on the needs of the employer to bolster recruitment, training and retention efforts. Leading companies are listening to and supporting the needs of their employees and providing tools and resources to elevate those voices.

Finally, responsible technology is dominating headlines and is top of mind for business leaders. The public is pushing back and examining the risks of living a digital life. But this is not just an issue for the tech sector; every company is a tech and data company, and with that acknowledgment comes responsibility.

All of these examples represent just some of the remarkable work businesses are doing to address challenging social issues and become more purpose-driven.

Companies understand the imperative to go beyond shortterm financial performance, instead concentrating on longterm value creation and coming together to help build a better world. It is exciting to see leading companies taking action, but we believe they can do even more.

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PURPOSE

Brand Promise An Interview with Timothy J. McClimon, President, American Express Foundation EDITORS’ NOTE Timothy McClimon We focus American Express’ corpodirects all of the global social responsirate social responsibility efforts on five key bility, philanthropy and employee pillars: promoting responsible business engagement programs at American practices; serving our colleagues; deliverExpress. Before joining American ing for our customers and partners; caring Express, McClimon was Executive Director for our communities and managing our of Second Stage Theater, one of the largest operations responsibly. nonprofit theaters in New York City, where For example, as part of our carhe was responsible for fundraising, maring for our communities pillar, 11 keting, public relations, production manyears ago, we launched the American agement, financial management and Express Leadership Academy, which board development. He has also served works to cultivate the next generation as the Executive Director of the AT&T Timothy J. McClimon of nonprofit and social leaders. To Foundation where he directed AT&T’s date, we have hosted 112 Leadership global philanthropy and corporate citizenship programs. Academy programs across 11 countries, training more than 3,500 nonprofit and social secFOUNDATION BRIEF Created in 1954, the American tor leaders. Early this month we will host the Express Foundation (about.americanexpress.com/ American Express Leadership Academy Global corporate-responsibility) is a New York based non- Alumni Summit. Now in its fifth year, the Summit profit that supports charitable organizations. The offers nonprofit leaders two days of robust proFoundation believes strong communities enable thriv- fessional development and networking opportuing people and businesses which shapes social respon- nities. At the event, we will honor an alumnus or sibility. Through its philanthropic and community alumna of the Academy with the 2019 American work, the Foundation seeks to strengthen communities Express Leadership Academy Alumni Award for by serving and supporting the people and organiza- demonstrating strong leadership while continutions that are tackling some of society’s toughest chal- ally impacting his or her community. lenges. It focuses on charitable giving in three main What are the keys to driving employee areas: helping develop emerging leaders who are engagement in American Express’ CSR efforts? addressing society’s most complex issues; promotOur colleagues are instrumental to the success ing stewardship of the historic places that bring value of our CSR efforts, and we integrate them by initiatto local communities; and sustain our shared cultural ing volunteer efforts and making donations to the heritage; and enabling nonprofit organizations to causes they are passionate about. have a greater impact by engaging community memThe American Express Foundation focuses on bers, including its own colleagues, as volunteers. charitable giving in four areas: serving communities, developing leaders, preserving places and sponsorHow critical is purpose to the culture of ing employee programs. Our colleagues are actively American Express? engaged in all four of these areas, and we also supAt American Express, the powerful backing port them in giving back directly. In 2017, we conwe provide our customers is at the heart of our tributed $37 million to these areas with more than brand promise, and our service ethos is central to 400 grants and support for over 5,000 colleaguewho we are as a company. The purpose of our chosen organizations through the company’s gift corporate social responsibility program extends matching program. our powerful backing and service ethos beyond Additionally, each year, thousands of American our customers to the communities where our Express colleagues join company-sponsored comstakeholders work and live. It benefits both our munity projects. Our Serve2Gether volunteer probusiness and our communities to invest financial gram gives them tools that make it easier to connect and human resources in ways that address the with and promote the causes they care about. Our social, environmental and economic needs of our Serve2Gether grants program provides micro-grants communities, customers, colleagues, shareholders ranging from $500 to $2,500 to organizations where and partners. This is the purpose of our corporate our colleagues volunteer 50 or more hours within social responsibility program and the guidepost a 12-month period. In 2017, the program awarded for the work we do every day. $103,000 in grants in recognition of nearly 3,500 Will you highlight American Express’ areas hours of volunteer service recorded by more than of focus in its corporate responsibility efforts?

500 colleagues.

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How important is it to have such a strong commitment from the top of the company in order to drive success in your CSR efforts?

It’s essential to have engagement at all levels of the company for our efforts to be successful.

Our Chairman and CEO, Stephen Squeri, is a chief ambassador of our CSR program and authored the letter that we included in last year’s Corporate Social Responsibility Report. Our colleagues also demonstrate a commitment to our CSR efforts with 80 percent of U.S. employees contributing to nonprofit organizations through our annual giving campaign, Give2Gether. Everyone from our student interns to our most senior executives have shaped and contributed to these efforts.

How critical are metrics to track impact of American Express’ CSR programs?

It’s imperative that we continually evaluate and measure the success of our CSR efforts. Our executive management holds ultimate responsibility for our CSR progress and success; these leaders review and evaluate environmental, social and governance (ESG) key performance indicators and long-term goals within their business units. At the Board of Directors level, the Public Responsibility Committee reviews our CSR program, monitors progress against our goals, and provides guidance on our efforts.

Day-to-day, our CSR team works with colleagues throughout American Express to shape our program and monitor progress on key ESG issues.

We also report on our progress to our key constituents, most comprehensively in our annual corporate social responsibility report.

Are you able to take moments as a company to celebrate the impact that American Express has had with its CSR efforts?

There are several moments I share with our employees to reflect and celebrate the impact that American Express has had. For example, each spring, we offer our employees the opportunity to participate in the Serve2Gether Consulting Challenge, which is a 10-week program that allows employees to team up and apply their business skills to projects that help our nonprofit partners improve their branding and messaging, implement new digital media strategies, deepen engagement with donors and volunteers and strengthen their operations. At the end of the program during the closing celebration, it’s amazing to see the hard work and dedication that our employees put in to help these nonprofit organizations. Since the launch of the program in 2012, we’ve engaged over 1,200 employees who have provided 52,000 hours of consulting (valued at $7.8M) to nearly 260 nonprofit organizations.

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LEADERS 53

PURPOSE

Plaza Moving Forward An Interview with Richard Wood, Chairman and Chief Executive Officer, Plaza Construction EDITORS’ NOTE Richard Wood has served for over three decades in increasingly visible leadership roles, cultivating and transforming Plaza into one of the most preeminent construction management firms in the country. Throughout his career, he has overseen construction of some of the nation’s most innovative, interesting and highly complex projects.

He has been instrumental in establishing regional offices in the MidAtlantic and Southeast corridors of Richard Wood the United States. Under Wood’s leadership, the firm has grown from a regional organization to a multi-faceted, national presence in the industry with headquarters in New York and regional offices in New Jersey, Miami, Tampa, Orlando and Washington D.C. He serves on the boards of organizations such as Friends of the Vietnam Veterans and Hope for the Warriors.

Wood is an active supporter of The Valerie Fund and a member of the U.S. Department of State’s Overseas Building Operation Industry Advisory Group, CAGNY- Past Chairman, Greater New York Chamber of Commerce and New York Building Congress.

COMPANY BRIEF Plaza Construction (plaza construction.com) is one of the nation’s leading full-service construction management/general contracting firms recognized for building value with vision. Plaza’s roots are based in real estate, investment and development management and its portfolio includes work across various industries. Plaza’s uniqueness comes from understanding what it is to be the owner, the developer and the builder – a trifecta that is evident in Plaza’s core portfolio of prestigious commercial, corporate and residential properties. Innovation and creativity allow Plaza to translate a client’s concept into reality while keeping a solid focus on the bottom line. The portfolio reflects the leadership, energy, motivation, and hands-on approach incorporated into every project that is built. Since 1986, the firm has played a relevant role in building corporate headquarters, commercial properties, healthcare centers, universities, infrastructure, transportation facilities, museums, retail spaces, hospitality and residential buildings, including such prestigious projects as One Thousand Museum, The Four Seasons Restaurant, 55 Water Street, MTA Fulton Center, Brooklyn Navy Yard, 11 Times Square, CCRA-MA railway assembly factory, among others.

54 LEADERS

Plaza Construction is owned by China Construction America, a U.S. subsidiary of China State Construction Engineering Corp., the world’s largest construction company.

Plaza Construction is known as an industry leader and for its quality of work. How do you define the Plaza difference and what has made the company so special?

Our roots began as the construction arm of an owner/builder, which gave us a different sensibility than most other contractors.

From that, our thought process regarding financial transparency, our focus on long-term property value and not merely just getting a project finished and delivering it to an owner, gave us a different perspective. The evolution of the company was centered around this premise.

We also attract people who want to be with a company like Plaza that is known for its integrity and managing clients in a way that gives them the sense that we are an extension of their staff.

This owner/builder sensibility was a unique starting point that we have never lost sight of, mainly because many of the people that worked with us in the early days are still with the company – myself included.

The people that helped us develop this philosophy own the buildings that they built. This is different from merely competing for a project from an owner who has hired a design team that then delivers a set of drawings to a contractor. The contractor then prices it up and tries to limit his risk and not concern himself with the long-term maintenance of the building. Instead, he merely completes the job.

There was an entirely different mindset that went into the evolution of Plaza.

Following the acquisition of Plaza by China Construction America, how important has it been for Plaza to maintain its culture?

For many years, when China Construction America was pursuing an acquisition, they were able to utilize their investment arm, Strategic Capital.

They were looking for a company that understood what it meant to build for an owner, because the parent company, which is the world’s largest real estate and construction enterprise, does a lot of development in China and shares those sensibilities.

Whether they realized it or not, when they came upon us, they found cultural similarities in the way we evolved with an owner/builder mentality.

The culture has mixed very nicely. They’re completely focused on providing real value, not only for their own projects, but for the clients they work for. The cultures married neatly.

Plaza is known for some of the leading work it has done in New York City. Will you discuss how important New York City has been to the company and the growth opportunities for Plaza in other markets outside of New York City?

New York is the foundation and headquarters of our business. We have enjoyed growth in other markets, but New York remains a very strong component of our total strategy and business.

We have expanded New York to include New Jersey, Connecticut, D.C. and Massachusetts and have offices in Miami, Tampa and Orlando as well.

However, with the new ownership and the history of the company and the evolution of the culture of Plaza, we moved into new markets fairly boldly

One Thousand Museum, a luxury residential tower in Miami designed by the world renowned architect Zaha Hadid VOLUME 42, NUMBER 2

with a sense of confidence that we could do things that people hadn’t done before. We felt that we could bring legitimate and intelligent construction methodologies and different ways to build a component to other cities or countries that differed from the way they were previously done there.

We always felt confident in taking measured risk and that we could deliver real value to our clients by doing things differently. For instance, buying material in a different way or constructing a building in a different sequence than had been typically done. These make sense and save money and time and promote the idea of being as efficient and cost-effective as possible with the highest quality product possible.

We always felt like we didn’t need to accept the status quo and that we were willing to do things others may not be willing to do. Other companies were trying to mitigate risk or felt they were only going to take on risk associated with completing their contractual obligations.

We felt that if we did the right research and had the right conversations with the stakeholders that were involved, we could get buy-in by presenting it in a way that made everybody understand why it was necessary.

We always felt that there wasn’t enough dialogue with people who thought things needed to be done a certain way, such as between management and unions. There was a historical divide between those two factions and we always felt that additional effort was necessary to make each side understand the sensitivities. Until we did that, there was no way to bring a more common approach towards thinking about how to make positive and intelligent changes in the industry.

We thought that taking a different approach to what people believed was critical to changing our business. Something may have been done in a particular way for 100 years, but we always felt there may be better ways to do it. We didn’t need to sit there and fall in line but, instead, we want to see what we are able to intelligently accomplish through good communication and creating an understanding about changing those things and making them viable. By doing this, we felt we could help make New York become more of a trendsetter rather than being stuck with methods of doing business that set us back in time.

Does it surprise you to see what the outer boroughs of New York City have become?

When we realized that stand-alone land prices before we improved the land were pushing up against the maximum rent that one could get in a given area, we recognized that the way that we could justify that cost of the land was to do a for-sale product.

There was a natural movement outside Manhattan. I’m not an expert on population issues, but if there is a building with 400 units in it, it doesn’t take many new residents in New York to absorb those.

If New York is putting up 10,000 units a year at market rate and New York has 10 million people, 10,000 is only 1/10 of 1 percent. This means we don’t need a lot of growth to absorb 10,000 units.

VOLUME 42, NUMBER 2

Station House, a mixed use residential development in Washington, D.C.

Many units are being delivered in New York annually and, at some point, Manhattan is going to be filled. If there is no ability to build rentals in Manhattan, the only possibility is to move to the outer boroughs or other areas where land is affordable and people can afford to pay a certain rent so that, after the land is improved, it can be delivered at a profit.

Plaza is known for complex builds and marquis projects. Are those the sweet spot for Plaza or is your focus broader?

We’re full service. We like the smaller buildings, too. We can’t depend solely on large projects for all our business, the cycles will kill us if that is the only area of work that we’re looking for.

Right now, there is a slowdown in condos and, if we were merely building super tall condos, we wouldn’t have much of a backlog.

We need to be diversified and do commercial, residential, hospitality and healthcare – so we can be prepared for the cyclical nature of the marketplace.

How is technology changing the way construction is being done?

Building information modeling (BIM) has matured a little slower than I thought it would because, in order for it to be totally effective, all of the stakeholders in a project need to be totally proficient at it.

Over time, construction managers have taken on the responsibility of managing the BIM process. This requires, of course, that there is a viable BIM model that is delivered to us by a design team, which most of them are now capable of doing.

In managing that BIM process, it helps to bring on some of the sub-constructors to participate so we have integrated electronic communication. Utilizing BIM gives us a much better picture of where we could foresee problems in a project.

The requirements by lenders and investors for technical information have also continued to increase over time. We have bank loans that are syndicated, and we must be able to justify why certain payments are being made. There are a lot of backups required.

The electronic and technological advancements in information management have been helpful to satisfy the needs of those stakeholders that require that information.

That information is much more readily available. It’s data-based so we don’t have multiple points of entry as we did in the past, which has made it more efficient and less time-consuming.

From those two perspectives, technology has become mainstream at this point.

Future on-site technology management is also being advanced. The use of GPS surveying and project mapping of both existing and new work in place and the generation of real-time information from that is becoming mainstream.

Infrared surveying can now identify the exact conditions of existing buildings. There is also the development of technology for use by personnel on the job in making sure people are remaining safe as they work. These are some of the many things we expect to start using in the near term.

In the long term, I would love to see a much higher rate of evolution of real intelligence and intelligent design to solve issues, including Artificial Intelligence and other cutting-edge construction technologies pursued by our parent company in China. This could help us determine whether a condition we are facing has ever happened before and what the repair or fix for that condition might be. There is already a mountain of information in existence that could save a lot of unnecessary research and be preloaded into a database that allows us to pull up potential solutions immediately.

LEADERS 55

The first Fisher Houses in the Bronx, New York, for families of veterans being treated at VA Medical facilities around the country

There is also a wonderful company created by Adam Sandow called Material Bank that allows us to search and sample materials from across the globe. This is another example of where the industry can go.

Long term, worldwide online procurement and bidding is important. We have systems now that allow us to make electronic payments automatically as we take in payments.

Also, the more technology we can weave into the business, the less need there is to have as many people on location. We don’t necessarily need to have every expertise locally when technology can connect those experts to the job site. It could ultimately help lower our costs when the people can connect and contribute from wherever they may be.

The construction industry is often thought of as a male-oriented business. Is it important for Plaza to build a diverse workforce and are there opportunities for women in the industry?

Yes. For many years, we have been trying to develop a more diverse workforce and to include women in this traditionally male business. Initially, it was difficult to interest women, but it is less of a challenge now. The industry as a whole employs a mere 9 percent female workers.

However, Plaza has a 25 percent female worker rate, far outpacing the industry. With today’s worker shortages, women have become much more valuable in the marketplace and Plaza actively pursues, trains and hires to promote a gender-neutral working environment.

In attracting more women into the industry, our Corporate Compliance Officer, Rosie Toscano, suggested we create a new construction sign as part of Plaza’s gender-neutral workplace initiative that read “Men and Women at Work” to replace the age-old construction “Men 56 LEADERS

at Work” sign. The new signs were posted at Plaza job sites around the country, gaining public recognition and national media attention.

Plaza brought the evolution of women in the construction industry to the forefront and took on a leadership position in doing so.

You commit a great deal of your time and resources to philanthropy and, as a company, Plaza supports its people being engaged in the community. Do you see it as a responsibility for leading companies to be supporting causes outside of the business?

Yes. Plaza’s people aren’t entitled to receive their annual bonus unless they put in a day a year on company time to some philanthropic effort of their choosing, be it at a charity they support or as a volunteer in a homeless shelter.

The company is committing its own resources to making sure they get involved and, the more they get involved, the happier I am because community involvement brings a sense of pride and brings self-esteem to people. The best workers we could possibly have are those with good self-esteem. That kind of charitable heart and thought lends itself to having selfesteem that someone might not have had before.

I was fortunate that I worked for the Fisher family that was very involved in philanthropy as it related to the military. I adopted that commitment because of my close relationship with them.

I’m on the board for Hope for the Warriors, which is an organization that cares for families of soldiers that have returned and are wounded.

I’m on the board of the Friends of the Plaza, which is the memorial from New York City to the people that died during the Vietnam era and the Vietnam Memorial Park downtown, next to 55 Water Street. I’m also involved in a Fisher

House we’re currently building in the Bronx – it’s the first New York Fisher House. The Fisher House Foundation has built 80 houses around the country that house the families of soldiers who are being treated in military hospitals.

They are located on the grounds of those military hospitals and save the families staying there the cost of hotels as their loved ones are being treated when they otherwise may not have been able to be by their sides.

My favorite project I was ever involved in was when we were the program manager for the Center for the Intrepid in San Antonio. My love for the work we did on that project is still with me.

What do you tell young people interested in building careers in construction about the keys to building a sustainable career in the industry?

Every year, we bring in summer interns, and I give them the same speech. I tell them to work hard, absorb as much information as they can, be sensible about what they say and, most importantly, provide leadership.

Providing leadership means always doing the right thing in support of other people and the company. When someone needs help, help them – don’t ask or look for recognition.

Always make sure that you are prepared. It might mean working late, but it is not necessary to tell anyone that you are doing that.

When someone does that, someone will ultimately recognize that they’re doing it and appreciate them more for not having touted it.

That is leadership.

When one gets to be a more senior person, people who worked with that person will not only support them, but will follow them to the ends of the earth.

Are you able to take time to reflect and celebrate the wins or are you always looking for the next opportunity?

I started out as a superintendent on a construction site. I lived through the zerodegree days in winter and at the end of day, I would fall asleep with my jacket still on. I recognize that every square inch of every building ever built is custom built in place, and we depend on millions of man and woman hours to build these things in a manner that is efficient and timely and that is done with the highest level of quality with a limited amount of supervision.

I still love going to these projects because I truly appreciate the effort going on, not only by management, but by the people that put the work in place – some are more dedicated and sincere than others, but those that are sincere are the salt of the earth.

I remember every square inch of every project I have worked on. I take pride in the total product, but also the little components that went into it. I truly have an appreciation of it.

When I step back and look at a building from a quarter of a mile away, there is a sense of pride that we put something in place that I had some part in changing the way a skyline or cityscape looks.

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VOLUME 42, NUMBER 2

Proud Supporter of

Our Community For more than 130 years, Western & Southern has proudly supported our community. Working together, we are committed to making Cincinnati the best place to live, work and enjoy life.

Cris Collinsworth Western & Southern Spokesperson

WesternSouthern.com/community

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-40093-A 1812

nati n i c n i C Ma ki n g h er t e g o T Great

PURPOSE

Leadership Lessons An Interview with James D. Robinson III, General Partner and Co-Founder, RRE Ventures EDITORS’ NOTE Jim Robinson fascinated by the dynamics of change also sits on the private boards of a and watching the extent to which peonumber of portfolio companies, ple, companies and countries respond including Avant, CoverHound, to change or fail to respond to change.

Fast Performance and NerdWallet.

Most often, we have a bell-shaped Additionally, he serves as President curve with those that lead change and of J. D. Robinson, Inc. He was then we have a bunch in the middle Chair man and Chief Executive and then there is the tail that resists Officer of American Express change until they are irrelevant.

Company from 1977 to 1993 The companies we deal with are and Non-Executive Chairman of not all aimed at disrupting, but they’re Bristol-Myers Squibb from 2005 to aimed at the enterprise or network 2008, where he sat on the board James D. Robinson III level, or the consumer level, of using from 1979 to 2008. Previously, new technologies brought about by Robinson held several executive positions within the digital world to do things better, cheaper American Express, was a general partner with and faster.

White, Weld & Co., and served as Assistant Is change more difficult once companies to the Chairman and President of Morgan reach a certain size or is it more about havGuaranty Trust Company. He also served ing a culture that is adaptable and employees from 1975 to 2015 as a director of The Coca- who aren’t afraid of change?

Cola Company. He has served on the board I would look at the umbrella of change. It of Memorial Sloan-Kettering Cancer Center should apply to big, small and medium compasince 1970 including as Honorary Chairman; nies as well as to governments, etc. he is an Honorary Trustee of The Brookings Knowing when to change is the challenge Institution; and Chairman Emeritus of the that a CEO or board faces. Knowing how to Partnership for New York City and the World change gets into the details, because entities Travel & Tourism Council. Robinson holds an can have a lot of legacy systems and people M.B.A. from Harvard Business School and a around who want to keep things the way they B.S. from Georgia Institute of Technology. have been.

That is fine – we have to respect the hisCOMPANY BRIEF Since its founding in 1994, tory that created the platform we’re now dealRRE Ventures (rre.com) has worked alongside ing with. One of the big concerns, however, is talented management teams and has helped to that any management must watch out for the build industry-leading companies. The firm now arrogance of success because that sets them up manages $1.8 billion in assets dedicated to for failure. investment in early-stage technology companies.

Big companies have the silos of the prodRRE’s investment professionals focus on rapidly uct people, the P&L managers, the corporate growing markets in the information technology, staff, compliance, finance, PR, HR, so the quessoftware, communications, and financial ser- tion of accountability and who has the authority vices industries, and back entrepreneurs and to decide change is confused. management teams that possess vision, industry An organization needs to make decisions knowledge and discipline. and to execute. Any of the few big decisions that can change the dynamics of the comYou created RRE with a clear interest in invest- pany are things I want to get involved with ing in emerging technology companies. When and see if my instincts and thinking says it you look at RRE today, has it developed how is a sensible thing to do and that the timing you had envisioned? is right.

I started RRE with my son, Jim, and Stuart Even as successful as Amazon is, they have Ellman 25 years ago, which is longer than I was to worry about how to avoid a slowdown in the with American Express. gears because of the organization structure, the We focus on the early stage venture busi- authorities and the matrix of the organization. ness. For me, that is an exciting part of the Change and keeping an innovative spirit world around us primarily because technology as part of the DNA in a big company can only drives change. Throughout my life, I have been happen from the top down. We have to worry 58 LEADERS

about it like weeds in the lawn – they come up every day so we have to be on guard to make sure they don’t strangle what we’re trying to accomplish.

In a smaller company, change sometimes rears its head in a different fashion.

A number of companies, including some we have started, go out to do X and after nine months, they figure the market isn’t interested in X so they change into Y. Then several months later, they figure that Y isn’t it either but, in the process, they have learned a lot and figure it has to be Z – sometimes this can be a superb moment of change that leads to great success.

The dynamics are different than in the big companies because of the size of the organization.

Even so, somebody has to have the authority to make the decision to make change or not to make it.

When you look at opportunities, is it more about the product, solution and innovation that can happen within that space or is it more about the people and management team?

I think it has to be both. The bets we’re making, particularly in the A round and B round bets, require that we believe in the individual and team and their passion. We think they have enough domain experience to not do stupid things that aren’t going to work, and it is the package of those things together that leads to success.

Often, in a number of our companies, at a certain point, we change the CEO. More often than not, this is because the CEO, who is the founder, realizes that he or she is having to spend time on managing a lot of people and it isn’t as much fun as being in the laboratory or creating a new product or being at the point of sale.

When we say, should this be a fine cottage industry company or something big and important, they almost always say the latter and they want to find someone who can take it to that level and they go back to the lab.

When you look at where the world is today, one issue that many leaders in the U.S. are concerned about is income inequality and the separation of haves and have nots. How concerned are you about this and what can be done to bridge this gap?

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I’m very concerned about it because the middle class and the gap between the haves and have lesses is continuing to grow. This is not something the government alone can address.

We see the progressive viewpoint is to let the government do it. The government is never going to do anything, except in rare circumstances, with the efficiency the private sector can.

The other side of that coin, however, is that managements, particularly at the big companies, have to take a different viewpoint on the issue of who the stakeholders are.

When the focus shifted to the shareholder, I think this was a dangerous risk, because it has been a part of allowing the income gap to grow. It’s interesting to look at all of the anger at the concept of raising the minimum wage.

Whether it ought to be $12 or $15, should it be mandated by government? Companies should realize that we’re talking about their employees, the communities around them, where their customers live and work – they should want that group of employees to have money to be able to spend and help the local community grow along with their own income.

It’s not that the government is forcing them to do this; it has to be seen as taking a step in leadership that will make employees even more loyal and be greater supporters of the company. Pay based on performance and delivery is appropriate and that needs to apply to the broader employee base as well.

Over the past few decades or so, the compensation of senior management has gone way up and that of the employee base has gone flat or up a few percentage points. That is ridiculous because we want our employees to have the money to invest in their communities, to save and to spend. When that happens, the communities do well.

This requires a different perspective. The CEOs must give serious thought to whether their cash compensation is way out of line.

Should they take a smaller percentage to make more available to the employees?

It can be stock purchase plans with stock purchase being at a discount with matching amounts or other approaches for broad-based rewards. These are good ways to engage the employees as part of the company and its success. Stock options probably mean the most to the top 20 or so – they’re the ones that can make the difference there.

I would separate stock performance from the cash compensation, which has become too big.

I would redistribute that in a way that answers the question, “Are we really increasing the take-home pay of our employees so they can be even better members of the community?” If they are, they’re going to be even better employees of the company.

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Are you optimistic that CEOs will address this issue?

It probably takes a number of dynamics to get their attention and, by that, I mean that many of the CEOs recognize that this is a problem, but they don’t want the government telling them how much to pay employees.

Then they should decide, but they should do so with a different thinking cap on than has been used traditionally.

They are part of the income inequality equation. What are they going to do to show some leadership to change it, at least for their own employees, and hopefully the communities around them and the customers they’re selling to?

Is there a role for government in trying to drive this or is this going to have to come from the private sector?

There is always going to be a role for government, but simply focusing on legislating a $15 minimum wage is what will happen if they don’t see the problem being addressed in a significant enough way.

My view is to get the C-suite into the game and figure out whether it’s in their best interests to start doing things differently. They need to adopt a number of measures that were common practice years ago, like profit sharing and stock purchase plans, which have been cut out as they s t r i v e t o e x p a n d m a rg i n s a n d q u a r t e r l y guidance.

Why isn’t that happening when CEOs know how critical this issue is to the future of the country?

They shrug and say it’s political, and there’s nothing they can do, but there is something they can do. It can happen one by one by leaders showing what an intelligent policy looks like.

I can guarantee it’s not what has been happening for the past few decades where every year the C-suite salaries and bonuses and the other perks go up and with generous options on top of it.

I’m not knocking options or restricted stock, particularly those that are performance based and not just time based, but all the tools of incenting employees have, for the most part, gone to the most senior people in the company. Those that have been at a company for a long time will have the low option prices and that builds and builds as new awards are made. Those programs have gotten out of hand and there are CEOs who recognize this and are toughening up on it.

That is great to see.

This is a major problem because community after community being disenfranchised.

That is what leads to some of the ideas by the progressives gaining traction.

The concern I have with that is that almost none of the progressives have ever created real private sector jobs and they cannot run a successful country without those.

Has globalization played a role in the divide?

Yes, from the standpoint of goods from China and Mexico coming in. We didn’t need new trade agreements – we just needed to use the policing mechanism in the existing ones to make a difference.

Is Trump right in challenging unfair trade in some of the practices in China? Yes, and those will get better.

However, we want the world to also show economic growth, and I’m talking not just the industrial world, but also the developing world.

It’s a good thing if countries in Africa see income levels rising. Coca-Cola committed to hiring five million women in Africa by 2020 and putting them into a position where they can earn money in their communities. They are being provided with containers that are converted into both digital hubs as well as water purification centers.

The individual actions of a number of companies, such as Bristol Myers Squibb, in terms of building medical facilities, are examples that can make a difference.

The problem in some of those countries is the corruption factor to deal with and the testosterone of leadership. We can’t solve all of those issues, but we want to work with those who have the vision. We know that central planned economies do not work. Market-oriented economies work, but there has to be respect for law and order and for the legal system and the judiciary system to work in a transparent and fair way.

If those are in place, you are going to attract investment dollars and with those you can build. The private sector needs to be a major part of that rather than just the government sector.

If you look at the many challenges that the world faces today, is it difficult to be optimistic and is the U.S. still the leader in the world in setting the standard?

Some of the diplomatic principles of the w o r l d o r d e r s i n c e Wo r l d Wa r I I have been frayed by personalities. If we step back and evaluate what is the best world for us to live in, it’s one in which we’re doing very well and our neighbors are doing very well; one where remote countries are doing well and not raising Jihadists because, with no jobs, that is the only thing they can do.

That is not going to be driven from the U.S. In my view, it has always been that the examples of what works successfully in the U.S., hopefully, will be copied by other countries. The solution is not going to come from our being the ugly American preaching; it’s going to come from our being a successful dynamic country with income levels rising at the middle-class level.

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PURPOSE

Creating Value An Interview with George Pyne, Chief Executive Officer, Bruin Sports Capital EDITORS’ NOTE Geor ge Pyne founded Bruin Sports Capital in January 2015. Before that, he was President and Board Member of IMG Sports & Entertainment where his game-changing strategies ignited exponential revenue growth across multiple global businesses culminating in the company’s record sale to William Morris Endeavor.

Earlier, as COO and Board Member of NASCAR, Pyne took the sport from regional niche to national sensation George Pyne and created billions in new revenue.

While at Portman Companies, before NASCAR, he played a central role in organizing a $2-billion debt restructuring for the company founded and run by the iconic architect and real-estate developer John Portman. There, he also launched his first business, AMC Events, devoted to management and marketing of sports-related properties.

Prior to AMC, Pyne held a senior role with the Atlanta Chamber of Commerce, leading a comprehensive analysis of the city’s school budget.

His recommendations led to sweeping reforms.

He has been credited as one of the most influential figures behind the rise of global sports and entertainment over the last 25 years. He is a board member of the National Football Foundation and the National Catholic Charities for the Archdiocese of New York and was previously on the board of 24 Hour Fitness. Pyne was Captain, All-Ivy League, and All-New England honoree as an offensive lineman at Brown University.

COMPANY BRIEF In 2015, George Pyne announced that he would launch Bruin Sports Capital (bruinsportscapital.com) to invest in, acquire, build and operate global sports and entertainment companies. He launched with $250 million in capital backing from a collection of investors including some of the world’s wealthiest families. Bruin’s focus is to develop high-growth, high-yield global businesses in the technology, sports, media, live events, marketing and entertainment sectors. Today, the company’s portfolio spans five continents with 37 offices and 1,700 employees. Its platforms are relied upon by virtually every major sports league, governing body, rights holder and blue-chip brand. They represent the vanguard of the new global sports economy. Billions of consumers engage with their favorite sport through Bruin’s enterprises.

60 LEADERS

What was your vision in creating Bruins Sports Capital?

When we conceived Bruin, we believed that the way people consumed sports and entertainment media was going to become much more fragmented and disrupt the way business has been done in the industry for decades. That was an opportunity for us. We believed we could build high growth businesses at the center of this change and ones that lead the industry forward. That is what we saw when we started this and, thankfully, that is exactly what is happening. We are on track, and we are pleased with our results.

How broad is your focus?

Right now, we are specializing in sports and entertainment. For decades, sports operated with the living room as the center of its economy. Now fans are more mobile, more active and much more personally invested in their passions. It’s a tectonic shift to the industry, and we see great opportunity in helping businesses with the right essentials to capitalize on this channel change.

For example, we acquired Deltatre, a global media technology company. It is a worldleading technology company that delivers live sports and entertainment to every screen. But it needed a partner that could help it grow beyond its European roots and that meant capital and connections. In just two years, we have expanded the company into the U.S. and the Asia-Pacific region and organized a significant acquisition making it the industry-leader in OTT technology services – the centerpiece of the future of media. Today, Deltatre operates in 18 countries and works with every major sports federation in the world as well as with major broadcasters. It has worked out exceptionally well for us.

We a l s o i n v e s t e d i n O n L o c a t i o n Experiences, which is a premium experiential entertainment company because live events provide more options for people to consume and engage with sports. VIP experiences get people out of their homes to attend events that are unique and different and that are perceived to offer more value for their investment.

We acquired Engine Shop, a new model marketing agency that specializes in managing brands through the exploding experiential

economy and digital ecosystem. We also bought a design company because we believe that design is a catalyst for growth. When we think about the brand identity of the likes of Google or Nike which are design-led companies, it shows the power and value of design especially in this new media era. We want to bring design strategy deep into sports and entertainment as a lever to unlock tremendous growth.

We also oversee Courtside Ventures, which has invested in 25 early-stage companies at the convergence of the media, sports and technology sectors and are well-positioned to lead the industry changes.

Collectively, this group impacts the way billions of fans worldwide experience sport in some way. They are driving massive amounts of commerce and value creation in our industry.

When you evaluate investment opportunities, how critical is the talent of the management team?

The first thing is that it must be a good idea with potential and then we look at the people.

If we see growth potential, we want to have the management in place to make that a reality.

We want to back good managers; we want them to tap into our global Rolodex, and we want them to leverage our access to capital to deploy against growth opportunities.

We have been around this sector for 30 years and have global relationships in sports, so offering all of that to these companies is, we believe, a major differentiator of us. We also have deep access to capital that is available to accelerate growth and enable companies to take advantage of opportunities that they might not have been able to before. We’re backing our leaders to take advantage of opportunities that heretofore weren’t there.

None of the companies we own today look like they did when we bought them. They’re very different, performing at higher levels, have grown in countless ways and haven’t changed a leadership team. We think that’s a meaningful statement about our value proposition.

Is your focus on making long-term investments?

We look at everything in terms of creating value. We want to create value for the company and grow it. It’s not necessarily based on an exit strategy and timing. That is not to say that we wouldn’t exit a company, but our focus is on creating value for it. When you create value, good things will happen.

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We’re backed by long-term investors, so we have no pressure to do anything on a timeline, and this has allowed our companies to perform quite well.

Will you discuss your relationship with Courtside Ventures?

With Courtside Ventures, we have made 35 investments in 25 early-stage companies. We have two dynamic co-CEOs and have cultivated an incredible amount of deal flow – some of which they generate and some of which comes from Bruin.

A great example is our lead of two early rounds in the subscription-based online local sports media site called The Athletic.

The newspaper business is changing, but people still like rich, local content, and we liked the management team, so we backed them. It’s doing quite well.

While it is early days, Courtside has emerged as the definitive early-stage fund in its space.

Is your focus on growing companies with a global footprint?

Sports is a global game and we look at everything through a global prism. We want to be at the front of globalization in this sector.

We operate globally and Bruin’s portfolio reaches 18 countries with 37 offices and roughly 1,700 employees. We have relationships with most of the major sports leagues or federations in the world, so we have the luxury of looking at global companies and platforms.

How difficult will it be for traditional players to remain competitive in the new media environment?

Technology is changing everyone’s lives, and sports and entertainment are no different. People and companies have to be able to evolve and adapt, and those that adapt in the early stages are probably going to do better than those on the back end, primarily because the consumers – meaning young people today – are consuming content much differently than they did 25 years ago.

If one wants to be relevant to this whole new generation of consumers, you have to be on the front end of this change in media.

Every situation is slightly different, but those that adapt first will do best. The early adopters are probably going to be rewarded.

There is a real penalty for those that don’t change because they’re missing a generation of consumers, which nobody can afford to do.

How valuable has it been for Bruin to work with investors that have a shared vision and long-term commitment?

When we’re talking to a company about an investment, we do talk about the fact that some of the most successful families in the world are part of our investor group.

What makes us unique is strong, solid capital; a 30-year track record of relationships and value creation; and that we’re user-friendly for management. We know what it’s like to miss a budget and we know the dynamics of the business – every day is not a sunny day. When it’s a rainy day, we’re pretty good at helping people.

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All of that has played out at Bruin. If there is a league or founder and they’re looking for a place to accelerate growth and help with their challenges, we’re a very attractive place to look.

People want to see a firm source of capital.

Did you always know that you had an entrepreneurial spirit?

I’ve always been in an entrepreneurial environment. I mentored under some exceptional people. John Portman started his company from scratch and at one point had 25 million square feet of real estate that he either owned or managed and had one of the largest trade show companies in the U.S. He was an entrepreneur, and I apprenticed with him.

I worked with Bill France at NASCAR, and we achieved enormous growth.

Then there was Ted Forstmann at IMG. My office was right next to his office, and I spoke to him every day. I took the job with IMG when I was 40, and I learned a lot.

I had a great experience working under those men, but it was more of an entrepreneurial environment than a big corporation. I think that experience has served me well, both from an entrepreneurial and leadership standpoint as well as from an operating perspective.

Sports is a global game and we look at everything through a global prism. We want to be at the front of globalization in this sector.

Many entrepreneurs who create companies are visionaries. They see an opportunity and go after it, but many times they aren’t necessarily managers. Does there need to be a transition to a different type of leader as companies grow to a certain size and scale?

Every situation is different. Being the leader, one has to have a vision. A leader knows where they want to go and they figure out how to get there.

Those are the essential skills of an entrepreneur – having the vision to see things others don’t and making them happen. Sometimes an entrepreneur goes against conventional wisdom.

It also changes through the lifecycle of a company; as a company goes through time, the skills needed to take a company to the next level change.

While I’m an entrepreneur right now, I had a lot of experience at IMG in terms of restructuring and building – the same when I was at NASCAR. In terms of taking companies to the next level, that is something that we have had a lot of experience in doing. This doesn’t necessarily mean we have to change the people – we have to have people who understand that their roles might change, and it is a good thing to embrace that change to further a common goal.

That is the key in taking companies to a new level – we did it at IMG and NASCAR, and we’re doing it at Bruin. We’re taking something from one point to another place. That is a skill in and of itself.

Our model is to help on the revenue side, provide best practices on the operational side, create new lines of business and enter into new markets. This is the same model I have used for 20 or so years.

How much of your leadership style was crafted from your experience playing competitive sports at a high level?

In sports, one has to be a good teammate and good at sharing experiences so, no question, being a teammate and playing sports has helped me relate to people and helped me in business.

I care about what I’m doing, and I build relationships with the people around me. If I care, then everyone else is going to care.

Those are the lessons I’ve learned – being a good teammate and leading by example.

Those are important elements.

The other element that one only gets in sports is a lack of concern about getting knocked down because you always need to get back up. In sports, someone’s circumstances doesn’t matter on the field of play, and everybody gets knocked down. Sports teaches one to get back up.

In business – and no one likes to talk about this – every day is not a sunny day. One of the keys to success in business is being able to get back up when it isn’t comfortable and to overcoming challenges and not letting a situation overwhelm them.

The place I learned all that was through sports. I learned how to win, and how to fail, and to make the sacrifice to be successful.

It had a significant impact on me and changed me. Those lessons are invaluable.

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LEADERS 61

"We are more expensive 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

PURPOSE

A Human Institution Serving Human Needs An Interview with Jill McGruder, Senior Vice President and Chief Marketing Officer, Western & Southern Financial Group and Edward J. Babbitt, Vice President and Senior Counsel, Western & Southern Financial Group and Secretary/Treasurer, Western & Southern Financial Fund EDITORS’ NOTE Jill McGruder joined Western & Southern in 1991 and is responsible for Columbus Life Insurance Company, Gerber Life Insurance Company, Integrity Life Insurance Company, Lafayette Life Insurance Company, Touchstone Investments, The Western and Southern Life Insurance Company, and W&S Financial Group Distributors. She is a Fellow, Life Management Institute (FLMI), a Chartered Life Underwriter (CLU), a Chartered Financial Consultant (ChFC), and has earned FINRA Series 6, 26, 7, 24 and 63 registrations. Throughout her career, McGruder has been active on numerous industry committees at the national level, chairing the Life Office Management Association (LOMA) Equity Products and Annuity Committee and Life Insurance Marketing Research Association (LIMRA) Specialty Distribution Committee. She currently serves on the LL Global Inc. (LIMRA/ LOMA) board of directors and is a member representative of the Financial Services Roundtable.

McGruder obtained a Bachelor of Arts magna cum laude from Capital University and a Juris Doctor from Capital University Law School. Some of her not-for-profit activities include serving as board chair for YWCA of Greater Cincinnati, board vice-chair for the Taft Museum of Art, former board member of the United Way of Greater Cincinnati, and former board chair of the Cincinnati Nature Center.

With more than 30 years of experience in government affairs, Edward Babbitt began his career at Western & Southern in 1988.

Prior to Western & Southern, he worked in Wa s h i n g t o n , D . C . , f o r t h e U r b a n M a s s Transportation Administration, U.S. Department of Transportation and the U.S. House of Representatives. He is a member of the State Bar of California, District of Columbia Bar, State Bar of Ohio and Cincinnati Bar Association. Babbitt holds a bachelor’s degree in business administration from the University of Cincinnati and a Juris Doctor from Southwestern University School of Law in Los Angeles.

COMPANY BRIEF With a heritage dating back to 1888, Western & Southern Financial Group (westernsouthern.com) is a Cincinnati-based Fortune 500 parent company to a group of diversified financial services businesses. Collectively, Western & Southern provides a broad range of life insurance, investments and retirement solutions as well as a variety of financial solutions to institutional clients.

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Jill McGruder

Edward J. Babbitt

Will you discuss the keys to the strength of Western & Southern Financial Group and how you define the company’s difference?

McGruder: We are differentiated by our culture. The culture of our company is second to none in the financial services industry or business in general. While our culture has been built over 130 years of operating history, its articulation and the 10 principles that underlie it are relatively recent, and we live and breathe it all day, every day.

This distinguishes us and is the backbone of our phenomenal year-over-year top and bottom line growth, capital position and why we are in the industry leading position we are today.

How critical is it for Western & Southern Financial Group to be purpose-driven?

McGruder: When we celebrated our 130th anniversary last year, we went back through the archives and found a number of taglines that we had used over time, but the one that really resonates still today is “A Human Institution Serving Human Needs.” This is at the heart of all that we do.

We provide financial security and peace of mind to people through retirement and protection products, so our purpose is imbedded in our business. It’s not only how we excel as a financial services organization, but also why we direct a lot of our philanthropic efforts and our financial resources toward institutions that support our motto.

Cultural fit is also a part of recruiting, so we also invest in making Cincinnati the ideal place to work, raise a family and enjoy life.

Investment in numerous not-for-profits is how we put our money where our mouth is in terms of making Cincinnati an attractive place to live, work and enjoy life.

Is that work done through the Western & Southern Financial Fund and will you discuss the focus of the fund?

Babbitt: The Western & Southern Financial Fund is our philanthropic foundation and our guidelines specify that our focus is in the areas of health research and higher education. For example, one area that we have focused on is cancer research. We are strong supporters of cancer research and are playing a leading role to bring National Cancer Institute (NCI) designation to Cincinnati.

But its philanthropy is much broader than that. We also have a corporate element to our giving and participate widely in the community.

We have found that our purpose as a human institution serving human needs appeals to many of our younger associates coming into the company, and they are very interested in participating in the various nonprofit organizations that serve the community.

At the foundation, we support those associates as well as initiatives that we feel are critical to the community, and we do this in a variety of areas.

Does the foundation have metrics in place to track the impact of its investments similar to how you measure Western & Southern’s business results?

Babbitt: It requires a different set of metrics. We do follow up and monitor our gifts, especially our larger gifts. We have regular meetings with the nonprofits and our donations committee often wants to understand how we’re doing with some of our commitments, especially when it comes time for a renewal or an extension of a multiyear contract. We might ask for an accounting of sorts to understand how many people are being served, the impact of our gift and the proposals going forward.

McGruder: It also depends on the nature of the organization. Clearly, United Way is very metric driven, so we’re a huge United Way contributor both in corporate gifts and through our employee campaigns we run every year.

We are also a major contributor to one of the oldest community fine arts funds in the country, supporting the fine and performing arts in Cincinnati. They also have very specific metrics for participating arts organizations.

We also sponsor a tennis tournament each year – the Western & Southern Open – that supports a number of charities. We measure the benefit of the W&S Open by the economic impact to the community, which is almost $70 million annually.

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We are a metric driven organization, so it’s important for us to quantify the results of our sponsorships and gifts.

Babbitt: We also make donations to a wide variety of smaller organizations in addition to our position with the larger arts organizations and nonprofits here.

We are disproportionately generous. We’re the fourth largest supporter of United Way in the community, which shows that given the size of our workforce, we punch above our weight class since we’re only 30th in terms of employment.

Many of our associates like to participate and volunteer on boards for smaller nonprofits, where we also make contributions.

It’s not as easy, as Jill points out, to do hard and fast metrics on those.

How important is internal communication to keep the employees aware of the philanthropic work that is being done and to keep them engaged in this work?

Babbitt: We have internal publications that we produce to share with our associates what we’re doing in the community. We publish a community involvement brochure in which we share how much we contribute as an organization and as employees.

McGruder: On a more routine basis, we update our company intranet site weekly. Every week, there is an article on the site that raises awareness with our associates about their colleagues who are making a difference and giving back. It’s not just about donations or contributions from the company – it’s what individuals are doing to support a wide variety of causes and issues. We also recognize associates annually in our awards program with the Humanitarian of the Year Award.

Cincinnati has experienced a tremendous amount of growth and change. Is this well understood when it comes to attracting talent to Cincinnati?

McGruder: Yes. Young people coming into this city who didn’t grow up here are probably shocked by what they see. I don’t think we do a good enough job of touting what a great city we are, although there are a lot of efforts underway to do that.

There has been a revitalization of this city.

If we look at the riverfront, bars and restaurants, the lifestyle and the new downtown housing here, there is a lot to offer.

We have a wonderful quality of life here – from our world-class parks to our major league sports to our incredible arts scene. Cincinnati has a fully developed fine and performing arts tradition because we’re an old river city, so this has been developed and refined over a very long period of time. That is a lot more attractive to millennials than it used to be – they are looking for engaging activities and for ways to give back to that community.

When they see how many different options there are for participating across Cincinnati in whatever passion they have, they can find a way to serve in this city because there is such a diverse offering of everything – arts, sports, social services, economic development and civic involvement.

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Cincinnati is a very attractive place for young people to have a meaningful career and a fun life.

Cincinnati is a city with a strong relationship among business leaders who work together to better the community. How important is this relationship to the success of the city?

Babbitt: We think it’s vital for a city like Cincinnati to have an engaged business community, and we do have strong organizations and a long history of businesses getting together and doing what is needed to move the city forward.

None of the progress we have made in Cincinnati recently would have been possible without the vision of the business community – they’re basically viewed as the drivers of change and improvement.

When we celebrated our 130th anniversary last year, we went back through the archives and found a number of taglines that we had used over time, but the one that really resonates still today is “A Human Institution Serving Human Needs.”

This is at the heart of all that we do.

What can be done to build a better understanding of the insurance industry and the value it delivers?

McGruder: The value we bring often gets lost in the noise. It’s the bad news, not the good news, that makes the headlines. We’re not in the health insurance business so we don’t take the arrows that some of the health insurers do.

We’re blessed in our company because we are in the lines of business that offer protection, retirement and investment management where what we do provides such value that we don’t take as much criticism as other sectors of the insurance industry do.

We’re very active in our trade group, the American Council of Life Insurers, and we constantly have this discussion about messaging, getting the good news out and bringing more public attention to the good and noble work we do – protecting people’s financial future. It’s hard to get attention with a good news story, but that is the reality.

Babbitt: It’s not a sexy topic, but we are trying to get the word out on the importance of the role this industry plays in retirement security. It’s not flashy and people don’t immediately come to it, but the role this industry plays in retirement security is vital to virtually everyone who is working now given the retirement crisis we’re facing.

We need to do a better job with that. We have an initiative at the national level where we try to educate legislators and others on the importance of what this industry brings in this area.

McGruder: That is a national perspective and an industry perspective, but what we’re trying to do on a more granular basis here goes to recruiting the best and the brightest out of the best business schools and undergraduate schools as they come into the employment market by talking about the value of what we do and the rewarding nature of our business.

We are helping people and that is not just a tagline. We are a human institution serving human needs, and that resonates a lot better today with millennials and those coming out of school than it did in the past.

You both have been with Western & Southern for more than 25 years. What has made the experience so special and does it feel as if you have been able to have a number of careers within the same company?

Babbitt: What has made it special for me is the leadership of the organization. I came here from Washington, D.C., and the leadership afforded me an opportunity to participate in a wide variety of different issues at the company and to see the company grow. To become a key player philanthropically and in the business community in Cincinnati has been rewarding.

The reason I’ve remained here is because of our chairman and the leadership of the organization. We have been focused and have grown from a mutual company into a very strong and diverse financial services company.

McGruder: What has made it fun and exciting is the people. We have put together a unique team and I credit John (Barrett, Western & Southern’s Chairman, President and CEO) for developing that group of special, hardworking people. I have worn a lot of different hats over the 27 years I have been here, and that has been fueled by the growth and diversification of businesses we have seen.

Everyone experiences change, but I don’t think everyone has the good fortune of experiencing the growth we’ve had, fueled by great talent and an extraordinarily strong balance sheet.

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Fostering Life Skills An Interview with Dr. Nido R. Qubein, President, High Point University EDITORS’ NOTE Dr. Nido Qubein Will you highlight the history and became the seventh president of High heritage of High Point University?

Point University in January 2005. He HPU was established in 1924 has served as past president of the Big through a partnership with the United South Conference and teaches a class Methodist Church and the city of High to all freshmen titled, “The President’s Point. Since 2005, when I accepted Seminar on Life Skills.” In this course, the role as president, I’ve been priviDr. Qubein shares with students the leged to lead an extraordinary team of habits, skills, values, and the practifaculty and staff. Together, we have cal intelligence that one must apply to transformed High Point University by succeed in an ever-changing world. increasing enrollment 259 percent, The author of 11 books, Dr. Qubein growing net assets from $56 million received an associate degree in busi- Dr. Nido R. Qubein to almost a billion dollars, creating six ness from Mount Olive College, a new academic schools and attracting bachelor’s degree in human relations from High $375 million in philanthropic investments. This Point University, and a master of science in busi- mega-transformation, which continues today, ness education degree from the University of North has attracted students and families from every Carolina at Greensboro Bryan School of Business & state and more than 56 countries.

Economics. In 2009, he was awarded an Honorary What differentiates High Point University Doctor of Letters in Humanity degree from from other universities? the University of North Carolina at Greensboro.

High Point University is the Premier Life Skills University. We understand the world UNIVERSITY BRIEF Founded in 1924, High needs graduates with capabilities that outPoint University (highpoint.edu) is a 94-year-old last and extend beyond technical skills. In a liberal arts institution located in the Piedmont competitive atmosphere, employers seek new Triad region of North Carolina. At High Point hires with more than technical competence University, every student receives an extraordinary because technology changes daily. The skills education in an inspiring environment with car- that outlast technological advances are what ing people. “America’s Best Colleges” 2019 Edition, we call life skills – the ability to communicate, published in the U.S. News & World Report, ranks build relational capital, develop a growth mindHPU #1 among all regional colleges in the set, embrace failure as a small price to pay for South (the seventh consecutive year at #1). It learning, solve complex problems and continualso ranks HPU for the fourth consecutive year ously adapt. Our faculty are excellent teacher/ as the #1 Most Innovative Regional College in scholars who invest time mentoring HPU stuthe South for innovative improvements in terms dents. Faculty mentor students through formal of curriculum, faculty, students, campus life, programs like undergraduate research, but our technology or facilities. HPU was selected, for campus has been intentionally built and our culthe eighth consecutive year, as a “Colleges of ture intentionally nurtured to encourage organic Distinction.” HPU also earned Fields of Study mentorship to take place all the time. distinctions for the Philips School of Business At HPU, our curriculum is grounded in life and the Stout School of Education. High Point skills. It starts their freshman year with my Life University has been named one of the nation’s Skills Seminar, where I share my experience in top institutions for undergraduate education building a life of both success and significance.

by The Princeton Review. HPU is recognized in Our campus is collaborative in nature, and stu“The Best 384 Colleges: 2019 Edition” for its aca- dents are encouraged to work across academic demic programming, as well as positive survey disciplines and departments to engage with responses and feedback from students, parents, one another, build their companies, operate and higher education leaders across the coun- their agencies and beyond. In addition, every try. In addition to including HPU in “The Best corner of our campus is designed to foster life 384 Colleges,” the new Princeton Review rank- skills. Consider the lobby of the Wilson School ings also names HPU as one of the top 20 univer- of Commerce, which resembles a Fortune 500 sities in the nation for Best-Run Colleges (#19) company, or 1924 Prime, our fine-dining learnand Best College Dorm Rooms (#5) and Most ing lab where students practice how to conduct Beautiful Campuses (#18). themselves during a job interview over dinner 66 LEADERS

and are exposed to international cuisine and etiquette. Building confidence and learning to thrive in these settings is celebrated everywhere at HPU. Parents appreciate this highly-relevant and distinctive educational focus which, by the way, contributes to 97 percent of HPU graduates being employed or continuing their education within six months of graduation, which is 11 points above the national average.

But families value equally our commitment to values-based living. Parents spend their life modeling the values they want their children to inherit. When they send their student to a university, they want that institution to uphold and further those values, not tear them down. What educators must understand is that values cannot be taught. They must be modeled. It’s not about what we say, but what we do. At HPU, every faculty and staff member is empowered to positively impact the students on our campus.

Our culture promotes the values of generosity, gratitude, hard work, personal initiative and joy, among others. These are among the values that built our nation and we have the responsibility to ensure HPU students graduate having lived in an environment for four years that model those same values.

We aren’t a perfect school, but perfection is not our goal. Excellence is our goal. HPU is an excellent institution that has attracted thousands of students and parents who appreciate our holistic approach to education, and they enthusiastically advocate on our behalf.

How deeply engrained is an entrepreneurial spirit in High Point University’s culture?

My background is in business leadership, executive coaching, consulting and public speaking. When I became president of HPU nearly 15 years ago, I set out to spark a transformation that infused the entrepreneurial spirit into the campus DNA. Today, “Growth Mindset” is the theme of our faculty’s Quality Enhancement Plan. HPU is home to the Belk Center for Entrepreneurship, a major and minor in entrepreneurship studies in the Phillips School of Business, an annual Business Plan Competition and many other academic initiatives that instill an entrepreneurial mindset in HPU students.

We have not only attracted learned faculty to HPU, we’ve added global leaders to a robust “In Residence” program to help mentor and VOLUME 42, NUMBER 2

The entrance to High Point University

coach our students. Where else can students learn from Apple Co-Founder Steve Wozniak, who is HPU’s Innovator in Residence. Where else can students enjoy mentorship from Netflix Co-Founder Marc Randolph, HPU’s Entrepreneur in Residence. These are only a few examples.

Students at HPU are guided to understand that the entrepreneurial spirit can be applied to every aspect of their lives. You can be entrepreneurial in your way of thinking, such as a scientist who develops an innovative way to solve a problem. Or you can be an entrepreneur in any sector by creating a business, service or product that fills an unmet need. Teachers can apply entrepreneurial thinking to getting the best out of their students in the classroom. Starting a business is not the only endeavor that requires a growth mindset or entrepreneurial spirit.

You only need to walk around our campus for five minutes to feel this upbeat, can-do culture. There’s a reason our call to action is: Choose to be extraordinary!

What do you see as High Point University’s role in the community and how critical is community engagement to the university?

HPU is a values-based institution, so naturally we are committed to serving our community. HPU students, faculty and staff complete 110,000 hours of annual service through events such as the HPU Veterans Day Celebration, when 1,000 local military veterans come to campus for a complimentary breakfast and patriotic program. The entire event is operated by staff and student volunteers to express gratitude for the men and women who served this nation. In December, HPU welcomes more VOLUME 42, NUMBER 2

than 30,000 visitors to campus for a two-night Community Christmas event complete with a life-size Nativity, falling snow, and Santa, who even offers a gift to each child. The entire event is complimentary.

These are just a few examples of HPU’s commitment to its community and its values.

I’m grateful to be in a position to have raised $116 million in private philanthropy dollars to revitalize downtown High Point. Those funds are being used to build a professional baseball stadium, events center, children’s museum, hotel and more as part of the city’s downtown revitalization efforts.

My favorite scripture is Luke 12:48 “To whom much is given, much is required.” I believe that.

HPU believes that. And collectively, our HPU Family models that behavior.

What attracted you to High Point University and has the experience been what you expected?

I love people. I love to coach. I love mentoring. I love encouraging people. When you really look at my career, I’ve been an educator.

While I didn’t work in higher education prior to 2005, I’ve certainly been an educator throughout my career.

When I became president of HPU in 2005, we came to understand that what got us to this point might not get us to where we needed to go as an institution. The academic landscape was shifting. Today’s college graduates face global, not merely continental, competition for their jobs and careers. It’s no longer enough to simply acquire information during one’s time at school – students must acquire knowledge and wisdom too.

That’s the advantage of attending a premier life skill school like HPU, one that provides students with a holistic education and teaches them how to build relational capital while arming them with the tools of decision-making, problem-solving and critical thinking.

It was clear to me that HPU had to exit an ocean of sameness and enter a lake of differentiation and, ultimately, reside in a small pool of distinction. We are committed to helping students make the journey from success to significance.

We want our students to be not only effective, but transformative; not only productive, but truly generative.

We are preparing our students not for the world as it is today, but for the world as it is going to be.

I am so grateful for the privilege of serving as the seventh president of High Point University. God’s hand has been on this work from the beginning. He blessed me with a committed and equally talented team to achieve the extraordinary results we’ve seen on our campus. I am thankful for the trustees, students, faculty, deans, staff, parents, alumni, donors and the city of High Point for supporting our mission as a transformational university. What resourceful friends they all are.

What are your key priorities in order to ensure that High Point University remains an education leader?

We believe in the art of the possible and are living proof of it. We’ve invested $2 billion in our campus, including facilities, academics, technology, and more. We’ve more than tripled enrollment from 1,450 undergraduate students to more than 5,200 today, and the world has noticed. Since the transformation began, HPU has received national recognition. For example, HPU was included in The Princeton Review’s Best Colleges. In U.S. News & World Report, HPU is named #1 Best Regional College in the South for seven consecutive years and Most Innovative for four consecutive years.

Supporters of HPU have jokingly remarked, “HPU has nowhere else to grow.” But I remind my team that how you change is how you succeed.

It’s true that our academic programs have never been stronger, our facilities have never been better resourced and our vision to enhance the lives of the students entrusted to our care has never been more focused.

However, achieving your vision doesn’t mean you’ve reached the end of the line. It simply means that you’ve come to a new starting place. While we are proud of the recognition, our goal is not to achieve high rankings. Our goal is to positively impact the hearts and minds of the students who choose to attend HPU. Our call to action, “Choose to be extraordinary!” by design, has no definitive conclusion. Excellence is to be pursued, not obtained.

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PURPOSE

Advancing Overall Vitality An Interview with Donato Tramuto, Chief Executive Officer, Tivity Health, Inc.

Donato Tramuto

EDITORS’ NOTE Donato Tramuto has more than 35 years of healthcare experience with a deep commitment to global healthcar e access, a steadfast focus on patient outcomes and a keen understanding of digital solutions. In 2008, Tramuto founded Physicians Interactive Holdings (now known as Aptus Health), a global provider of insight-driven digital engagement solutions for healthcare professionals and consumers where he served as CEO and Chair man. In 2011, Tramuto founded Health eVillages, a non-profit organization which pr ovides state-of-the-art mobile health technology in the most challenging clinical environments. He is also the Chair man and Founder of the Tramuto Foundation, which helps individuals and organizations achieve their educational and healthcare goals. Tramuto has been widely recognized for his more than three-decade commitment to social change and healthcare innovation.

COMPANY BRIEF Tivity Health®, Inc. ( t i v i tyhealth.com) is a leading provider of health improvement, nutrition, fitness and social engagement solutions at scale to improve clinical outcomes, reduce healthcare costs and create opportunities to feel better, work better and live better. With decades of clinical and operational expertise, the company touches millions of consumers through its integrated portfolio of brands and works directly with hundreds of healthcare practitioners and many of the nation’s largest payers and employers. Tens of millions of Americans are currently eligible for Tivity Health’s SilverSneakers®, Prime® Fitness, WholeHealth Living™ and flip50™ programs and millions of people have lost weight with Nutrisystem®, South Beach Diet® and DNA BodyBlueprint™. As part of its commitment to tackling social isolation and loneliness, in 2017, Tivity Health launched a rural aging initiative at addressing challenges unique to older adults in rural communities.

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Will you highlight the history and heritage of Tivity Health and how you describe the Tivity Health difference?

Tivity Health has a rich history of supporting better health and lowering healthcare costs by addressing the factors that lead to poor health and chronic illness. The company started more than 30 years ago as a disease management company and evolved to become a total population health services provider. When I became CEO in 2015, it was clear that we needed to shift our focus to our more profitable SilverSneakers division. We divested our total population health business in 2016 to focus on healthier aging. In doing so, we were able to turn around the company’s performance, adding nearly $1 billion in valuation, and transform the corporate culture to one of empowerment and accountability.

What makes Tivity Health different is our passion for our members, customers and partners and our dedication to delivering a consumer experience that goes beyond supporting physical health to advancing overall vitality.

How do you define the mission and purpose of Tivity Health?

I am a firm believer that it doesn’t matter what you do unless you understand why you do it. In my nearly four decades of healthcare experience, I have been guided by my personal and professional “why.” After I was scheduled to be on one of the planes that hit the World Trade Center on September 11, I found my personal why. I established The Tramuto Foundation to provide scholarships and to support organizations that are working to make the world a better place. My professional why became apparent when I realized that more than 1 billion people will die in our lifetimes having never visited a healthcare provider. I established Health eVillages in 2011 to increase healthcare resources and access in underserved areas.

This intense focus on mission and purpose extends to Tivity Health. As a trusted provider of solutions to support a healthier lifestyle, our why is to empower adults to live their best lives now – with vitality, dignity and purpose. All our offerings – from helping seniors care for their physical and social health, to removing barriers to physical activity, to addressing social isolation and loneliness – are guided by our why.

Will you discuss Tivity Health’s flagship products?

Tivity Health offers an integrated portfolio of fitness, weight management and social engagement solutions to support overall health and wellness. Our lifestyle brands include SilverSneakers, the nation’s leading community fitness program for older adults. SilverSneakers provides nearly 15 million eligible members with regular exercise and social opportunities at more than 16,000 fitness locations across the country. We work with healthcare providers to offer SilverSneakers at no cost to our members through their Medicare Advantage programs.

For adults 18-64, Prime Fitness provides reciprocal membership at more than 10,000 participating facilities nationwide, from gyms and sports facilities to specialty fitness studios and more. This variety of locations, class offerings, equipment and amenities help participants easily find the ideal location to meet their needs.

WholeHealth Living is a managed network of chiropractic, rehabilitative therapy, complementary and alternative medicine, and other specialty health providers.

Our newest offering is flip50, a comprehensive program that provides fitness, nutrition, and rest and recovery options supported by a companion mobile app that includes guided activities, meditation, recipes, healthy eating tips and daily workouts.

Tivity Health offers an integrated portfolio of fitness, weight management and social engagement solutions to support overall health and wellness.

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What makes Tivity Health different is our passion for our members, customers and partners and our dedication to delivering a consumer experience that goes beyond supporting physical health to advancing overall vitality.

Finally, with the acquisition of Nutrisystem, we’ve added leading weight management brands to our healthy lifestyle portfolio. Nutrisystem® is America’s #1 home-delivery weight loss service, offering delicious, nutritionally balanced meal plans for men and women. South Beach Diet® is a weight-loss meal-delivery program focusing on a low-carb, high-protein approach that is heart healthy. And, DNA Body Blueprint™ is a simple and secure DNA test kit that provides a personalized roadmap for healthy eating, weight loss and maintenance based on the body’s unique traits.

Where do you see the greatest opportunities for growth and will the growth be organic or through acquisitions?

In December of 2018, we announced plans to offer a Calories In + Calories Out solution by entering into a definitive agreement to acquire Nutrisystem. The transaction closed on March 8, creating a premier portfolio of healthy lifestyle brands that will provide significant opportunities for growth. We expect that this transaction – and the opportunity to create a premier portfolio of healthy lifestyle brands – will provide significant opportunities for growth.

The transaction will result in a diversification of Tivity Health’s portfolio and increased scale that will benefit all company stakeholders, including health plans, fitness partners, members and consumers as these offerings support healthier lifestyles and can lower medical costs. Through this expanded portfolio, we will be better positioned to address weight management, a major factor contributing to many chronic diseases. Additionally, our combined consumer data insights will be enormously helpful in enabling us to drive greater integration of our programs as well as offering new products and services. Our popular high-quality brands and shared focus on marketing across a variety of channels will allow for deeper digital engagement and increased economies of scale, particularly for media buys connected to our marketing programs.

How critical is innovation to Tivity Health and where is innovation taking place within the company?

Innovation is critical to moving our business forward and finding new and better ways to serve our clients and members. For our 65+ population, we must innovate to meet the evolving needs of this demographic. Older adults want tools and resources to support active, vital lifestyles and help them stay healthy, and they want us to meet them where they are. One example is our recently introduced VOLUME 42, NUMBER 2

SilverSneakers GO™ app. Our members are using digital resources to communicate, to schedule their activities and to manage their health. SilverSneakers GO gives members access to mobile workout programs, the ability to schedule classes from their phones, and track their weekly and monthly progress. We are especially interested in solutions to help seniors be more socially connected. Social isolation is now being recognized as a chronic health condition, and innovative ideas and partnerships will be necessary to address this issue.

How challenging is it to make long-term investments for the business with the shortterm, quarter to quarter pressures?

It’s always a challenge, but at Tivity Health, we are focused on long-term sustainable growth and providing high-quality programs to our members, customers and partners. If we get that right, the rest will follow. When I became CEO of Tivity Health (then Healthways) in 2015, I made three commitments to the organization: to unlock the value within the organization, which we did by divesting our total population health business in 2016; to create an empowered and accountable culture with a compelling growth strategy focused on enrolling and engaging members in SilverSneakers; and to transform the organization for long-term sustainable growth. Over a threeyear period, we cleaned up the balance sheet by paying down our debt, significantly increased the value of the company and positioned ourselves for the next phase of growth focused on diversification. With the Nutrisystem acquisition, we are focused on long-term transformation.

Will you discuss Tivity Health’s commitment to building a diverse and inclusive workforce?

Workplace dignity and inclusion is one of our core values, and one we strive to further every single day. I recently launched a program through the Tramuto Foundation with Robert F. Kennedy Human Rights to address workplace bullying and other issues that lead to hostile and unproductive workplace environments. The program will work with businesses to establish a respectful and fair work environment by exposing toxic cultures, advocating on behalf of those in abusive work relationships, empowering those that are marginalized or held back and training employees at every level on behaviors that support a healthy and respectful workplace culture.

The Tramuto Foundation donated $1 million in December 2018 to launch this program because we believe so strongly that it is time for

corporations to step up and commit to a supportive, healthy and respectful culture.

What do you see as leading companies’ responsibility to their communities and how does Tivity Health focus its corporate responsibility efforts?

In January, Larry Fink, CEO of Blackrock – the largest asset manager in the world – once again implored companies to be responsible to the communities they serve, stating that purpose and profit are inextricably linked. This has been my mantra for most of my career. I believe social responsibility is also a key element of corporate culture.

Companies absolutely must find ways to utilize their expertise and areas of focus to help address unmet needs within a community. At Tivity Health, our work with the aging population has helped to guide one area of focus.

In 2017, we created a movement to transform rural aging when we launched our first Connectivity Summit on Rural Aging. Ten thousand Americans turn 65 every single day, and one in four of them live in a small town or rural community. As many rural areas lack access to several health and quality of life services, older adults who live there have a higher prevalence of chronic disease, higher disability rates, lower prevalence of healthy behaviors and a lower life expectancy. Our summit brought together thought leaders and experts from a diverse set of fields, including healthcare, government, academia and community organizations. We are now planning our third summit this August and we’ve refined our focus further to address social isolation and loneliness among rural seniors.

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

Certainly, successfully integrating Nutrisystem into our portfolio of lifestyle brands and adding nutrition to our fitness and social engagement solutions is a top priority. In addition, we are focused on increasing enrollment and engagement among our SilverSneakers members.

We have nearly 15 million eligible SilverSneakers members, but only about one-third of them are actively using the benefit, which is offered at no cost through many Medicare Advantage plans. In January, we launched our first ever national SilverSneakers television campaign to increase awareness of SilverSneakers and encourage members to enroll. “Find Your Place” is part of a multi-channel integrated TV, digital and social media campaign that underscores our commitment to SilverSneakers member engagement in 2019 and beyond.

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PURPOSE

Creating Memories An Interview with Keith M. Douglas, Managing Director, One World Observatory EDITORS’ NOTE Keith Douglas from out of town and we are proud was named to his current post in to be the attraction of choice when 2017. Before joining One World exploring their home city.

Observatory, Douglas was the It’s really important to us that we President and Managing Director have a very diverse group of associat KD&CO after having served ates working here to make sure that for 10 years as the Managing we can interact with our diverse popDir ector of Rockefeller Center ulation of visitors. and Top of the Rock Observation We are called One World and Deck for Tishman Speyer. He also we want to make sure that we are spent over a decade as a senior always holding ourselves to a stanexecutive responsible for overseedard of being representative of the ing sales, marketing and general Keith M. Douglas world population. managerial roles for several leadHas the programming at One ing hotel franchises including W Hotels, Omni World Observatory remained consistent?

Hotels and Doubletree. Douglas is a graduate The Observatory was designed to have of the Johnson and Wales University, where he the capability, using technology, to change, received his B.S. in hospitality management. refresh and redesign the visitor journey as we grow and evolve with our guests.

O R G A N I Z AT I O N B R I E F O n e Wo r l d The experiential components that exist Observatory (oneworldobservatory.com), today have served us extremely well in the located at the top of One World Trade Center, is first four years of operation, but we’re now the tallest building in the Western Hemisphere looking at the next generation and evolution and offers unparalleled panoramic views of of the visitor experience, so we want to utiNew York and three floors of immersive, inter- lize the technology we have to improve the active experiences. operational efficiencies, as well as expand and enhance the visitor experience. We have a Will you discuss the vision behind One robust three-year plan we will begin to impleWorld Observatory and how you define its ment later this year that will change and evolve purpose? the guest experience through 2022.

The purpose of One World Trade Center What do you hope those who visit take and One World Observatory are truly comple- with them from the One World experience? mentary. One World Trade Center is a beaBeing in the hospitality business now for con of resilience and hope that has grown over 30 years, I think the one most important into the central pillar of the new downtown. takeaway is creating a great memory for the One World Observatory opened in May 2015, visitor. A special moment that they will shortly after the building opened, and was cherish and share with their friends and family purposely designed to ensure that the build- when they go home. We want them to look ing was open and accessible to visitors from back on their visit to One World Observatory around the world. and smile when they think about the great time From a tourism perspective, downtown they had when they were with us.

Manhattan has an energized vibe, and the Those memories become embedded, not Observatory is an integral part of the tourism only because we have a really great product, community and creates a reason for people but also because we have an incredible team from New York and around the world to visit who delivers on those human touch points us and discover everything that the new down- throughout the visitor’s journey. town has to offer.

One World Observatory just completed One World Observatory has achieved a record-setting year based on numbers of strong global interest. How broad is its visitors. Are you able to take moments to reach? reflect and celebrate this success or are We welcome a global audience at One you already focused on what is next?

World, and we also have a very strong followFor us, because we are in the hospitaling from the local community. Oftentimes, we ity business, we certainly want to celebrate see locals bringing guests who are coming in the great moments that have happened 70 LEADERS

One World Observatory (left); Aspire event space (above)

throughout the year. We also want to challenge ourselves to think about the evolution of our business and what we can do better and focus on making it even more memorable for our guests.

Will you highlight the food and beverage offerings and private event capabilities at One World Observatory?

We have a full-service lounge and restaurant, One Mix and One Dine. We also have a more casual café and bar, One Sip, where guests can enjoy their beverage of choice. Both the lounge and the restaurant are great amenities for tourists, but we also have a loyal local following, mostly from the tenants in the building, but also from around the World Trade Center Campus.

Aspire is our special event space located on the 102nd Floor. We can host cocktail receptions for up to 500 guests, as well as seated dinners and a variety of corporate events, such as product launches and holiday parties. For those looking for a unique, once-in-a-lifetime experience, we are a great wedding venue. Aspire is a completely customizable space that offers panoramic views of New York looking North, South and West. It is the absolute perfect location and provides a very local-centric opportunity for our clients to showcase the city.

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

Try everything. In the hospitality world, we are in the unique position to explore our passions and there are so many opportunities to explore different areas of the business. Young people should begin their journey in operations. This could include guest services, food and beverage or retail, but any customer service area is a great way to start your career.

Once you have the operational experience, there are ample opportunities in finance, human resources, culinary, IT, security, engineering, sales or marketing. Regardless of your role, it’s important to fully focus on how you can deliver a memorable experience with each guest with every interaction. If you focus on creating a great guest experience, you are going to get noticed within your organization and there will be opportunities created for you to expand your purview within hospitality.

We only have one opportunity to make an amazing first impression in this business.

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PURPOSE

Accessing China An Interview with Jonathan Krane, Founder and Chief Executive Officer, Krane Funds Advisors EDITORS’ NOTE Jonathan Krane is the Founder and Chief Executive Officer of KraneShares, an asset management firm delivering China-focused exchange traded funds to global investors. KraneShares focuses on providing expert access and products for investors to gain exposure to China’s capital markets. Krane received his M.B.A. from Columbia Business School and a B.A. from Connecticut College. He is on the board of the US-China Strong Foundation and is a member of the Jonathan Krane Young Presidents Organization (YPO).

COMPANY BRIEF Krane Funds Advisors, LLC (kraneshares.com) is the investment manager for KraneShares ETFs. Krane’s suite of China focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. Krane strives to provide innovative, first to market strategies that have been developed based on strong partnerships and deep knowledge of investing. Krane also helps investors stay current on global market trends and aims to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).

Will you discuss your vision in creating KraneShares?

I had done business in China for the past 15 years and had lived there from 2004 to 2009. I started a company in 2004 that focused on bringing live international content such as concerts, sporting events and cultural events to China.

We brought in professional ticketing technology to sell tickets to those events and developed a sponsorship business that sold event sponsorships to corporations.

We grew that business over five years in partnership with many different Chinese government entities. We became comfortable doing business in China, and also saw incredible growth trends happening.

Urbanization was taking place with people moving to cities and making more money. This meant they had an expanded discretionary spend so we saw our business grow dramatically over that five-year period. We also ended up getting involved in the Beijing Olympics.

I had a very positive experience as an American doing business in China, but when I sold that company, I moved back to the U.S. VOLUME 42, NUMBER 2

I was in New York figuring out what to do next, and I became interested in the money flows that were happening between the United States and China. China was diversifying globally for the first time, and U.S. investors were under-allocated to China in their portfolios.

I thought these money flows between the U.S. and China would increase significantly going forward, so I decided to build a business in the middle of those money flows.

We identified ETFs as a good focus in 2013. ETFs were then a fast-growing product type in the U.S. and remain so today. We decided to launch a U.S. ETF firm that was 100 percent focused on China and to list our products on the New York Stock Exchange. We could then help U.S. and global investors understand China, as well as provide them very innovative and thematic opportunities to access China.

We were the first to provide an MSCI China A Share ETF fund listed on the New York Stock Exchange. This allowed U.S. and global investors to buy a fund on the New York Stock Exchange that provided access to the Shanghai and Shenzhen stock markets, which had always been closed markets before.

In 2017, MSCI decided they were going to include the China Mainland capital market in their global indexes for the first time. Ninety-nine of the top 100 global institutions benchmark to MSCI indexes for international investing. For MSCI to include the mainland market is significant because it means that institutions have to buy China.

The same thing will happen on the fixed income side. China’s Mainland bond market is the third largest in the world at $11.9 trillion. It’s another market that has been closed and not included in global bond indexes.

China offers incredible growth opportunities.

It is the second largest economy in the world, the second largest equity market and the third largest bond market globally. As such, we think that investors need to look at China as its own asset class and construct completion strategies around it.

A year ago, KraneShares sold the majority stake of its company to CICC – China International Capital Corporation. CICC is a leading financial institution in China, with expertise in research, asset management, investment banking, private equity and wealth management, so it’s a full-service

investment bank right under the Chinese government. They have been an incredible partner and have provided many opportunities for KraneShares to grow.

In five years, we have grown this firm to more than $3 billion in AUM and we see a lot of opportunity for more growth going forward.

At what point will China no longer be considered an emerging market?

It has emerged. Within asset allocation, China is part of the emerging market category, but with the MSCI inclusion, China is going to grow from 30 percent of emerging markets to over 40 percent and even higher, especially as market caps increase. At that point, we need to do a completion strategy around it.

We think it has emerged and that China, over the coming years, will become its own asset class, similar to what happened in Japan in the 1980s.

Japan has become its own asset class. We will see a similar path for China.

Over the past 20 years, China focused a lot of investment capital into their infrastructure, and they have also proven to the world that their stateowned enterprises that focus on construction are some of the best in the world.

The high-speed rail of China has helped the economy tremendously in connecting the second and third tier cities with the major cities like Beijing and Shanghai, and it has done wonders in terms of growth for the country.

They are focused on modernizing the original Silk Road, which involves connecting 70 countries and investing trillions of dollars into infrastructure by land, which will be high-speed rail and roads, as well as by sea through its ports. This will not just help China with all of their excess capacity going forward, but will also help these 70 countries with their modernization.

When investors visit China, we have found that they quickly invest into opportunities there.

They quickly recognize that this is not an emerging market anymore – it has emerged and there is so much opportunity.

How critical is it that the trade issues be worked out and that U.S./China relations remain strong?

The trade issues will work out soon. The last six months have quickly demonstrated that it’s a lose-lose situation, especially with two countries so dependent on each other.

Both countries see that this needs to get resolved. In the coming months, there will be resolution around the tariffs and U.S./China issues.

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Building a Life Experience Circle An Interview with Zhang Kuan, President, Galaxy Group

Zhang Kuan

EDITORS’ NOTE Zhang Kuan co-founded Caribbean Galaxy Real Estate in 2014 to take advantage of the growing North American tourism market. He is one of the first Chinese entrepreneurs to create real estate projects in the Caribbean. One of his major projects is the St. Kitts Ramada which will cover 100 acres and will be the largest real estate project in the nation’s history. In addition to Caribbean Galaxy Real Estate, Zhang also founded the SCC Sports Car Club in 2009. He is an investor in EPGN Bulk Carrier Co. Limited and Hongyi International Trade HK Co., Ltd. which he merged into Galaxy Group in order to make it even stronger.

COMPANY BRIEF Galaxy Group (galaxy carib.com) is a leading conglomerate with its core business in areas including shipping, energy trading, automobile trading and vehicle maintenance, agriculture, and property development and management. The company has hotel operations in Asia, Europe, America, the Caribbean, and other regions around the globe. Its r eal estate division, Caribbean Galaxy Real Estate Corporation, is r egister ed in St. Kitts and Nevis and is involved in numerous construction projects in Asia, Europe, and the Americas. Some of Galaxy’s work in the Caribbean includes high-end residential apartments and condominiums, five-star resort hotels, shopping plazas and business centers.

What was the vision for Caribbean Galaxy?

I fell in love with the Caribbean at first sight. I am very passionate about traveling and had experienced different customs and cultures from all over the world before establishing Caribbean Galaxy Real Estate Corporation.

There is no single place that can parallel with the Caribbean area when it comes to beautiful scenery.

However, there were many things that needed to be improved to construct highquality hotels in the Caribbean region at the 72 LEADERS

time I started the company. Soft service facilities were still incomplete. In order to improve the local tourism demand, the construction of high-quality hotels was the only way to enhance the development of the local tourism industry. As a tourist who fell in love with the Caribbean at first sight and, as a businessman, I knew that the only way to promote the development of local tourism was to build high-quality hotels. Caribbean Galaxy Real Estate Corporation was established to respond to this need.

Who were the founders of the company?

A friend, Qingmin Wu, and I established Caribbean Galaxy Real Estate Corporation together. As a founder of Galaxy, Mr. Wu is also the chairman of EPGN Bulk Carrier Co. Limited and was operating my SCC Sports Car Club before establishing this company. I was acquainted with Mr. Wu at that time and we always talked about sports cars and traveling, so we shared common interests with each other.

He’s from Hainan Province which has led to his deep feelings about tropical areas. Each time we referred to the Caribbean, we were deeply attracted by the tropical landscape in the region.

Is Caribbean Galaxy publicly-held?

It is not a publicly-held company at present, and is still in the development stage, but we are thinking about taking the company public, although we’re not sure when this decision will be made. I currently prefer to take things one step at a time, slowly but smoothly. The initial purpose of creating this company is to improve the local tourism and provide more enjoyable experiences for tourists, so I think the most important thing right now is to run our own business well.

Do you describe Caribbean Galaxy as a real estate company, a construction company or a hotel company?

We are a real estate development company, but we don’t want to confine ourselves only to the real estate development business. What we construct and develop is not only buildings, but also the complete circle of life experiences. We want to not only give visitors comfortable vacation experiences, but also let all people fully feel the Caribbean flavor through genuine and diversified service. We hope to help more tourists experience the Caribbean and have their own love-at-first-sight experience. This is what I have always been pursuing and this is the dream I hope to fulfill.

Views of the ocean from the Ramada Resort in St. Kitts VOLUME 42, NUMBER 2

The setting of the Ramada Resort in St. Kitts

How do you describe Caribbean Galaxy’s business model?

As I mentioned before, we are building a life experience circle. I hope that through our efforts, we will establish an ecosystem of service that is consistent with the Caribbean characteristics. We hope to provide this to our local and international clients with exclusive experiences within the beautiful scenery of the Caribbean while they enjoy our comprehensive and diverse facilities.

What attracted you to the Caribbean?

I love to travel and to share experiences with others. It gives me great pleasure to recommend areas with beautiful scenery to my

friends. I hope they will experience the pleasant shock that I experienced in the Caribbean, with the beautiful scenery, simple customs and warm people. There is no reason not to share this with my friends and with everyone who visits our facilities.

What are Caribbean Galaxy’s current projects in the Caribbean and what economic benefits will they bring?

At present, the second phase of our ongoing project in St. Kitts not only extends the previous resort project, but also adds a conference center with five-star hotel standards, a spa, an advanced water park and a multi-functional

large-scale commercial shopping mall and entertainment center as well as other multifunctional facilities.

I believe that the industries supporting the tourism industry have been vigorously developed and upgraded, and the local tourism industry will be even more vigorous. The benefits of the booming tourism industry are not just good numbers on a report. There are also soft developments that come along with it, such as increased employment and the spread and development of local culture.

From a development perspective, there are additional jobs that will be created at the facilities that support tourism and our business. These positions will have certain skill requirements that may not be available in the area. This means that we can offer more than just a job, but also professional skills training. In this way, the real economic benefits include completely sustainable economic and ecological environments.

Beyond operating a profitable, growing company, what are your greater goals, especially in regard to the Caribbean?

Even before I started this company, I was deeply attracted by the local customs of the Caribbean. The original intention of creating this company was to help more people get to know the Caribbean and better understand and enjoy the charm of the region. We have already achieved good results in St. Kitts and have gained valuable experience. Therefore, we hope that based on these valuable experiences, we will be able to continue to lift the veil on the beautiful and mysterious Caribbean. We will stick to the feeling in our hearts that leads us to want to make the Caribbean more glamorous through more and better hotels and services.

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We hope to provide this to our local and international clients with exclusive experiences within the beautiful scenery of the Caribbean while they enjoy our comprehensive and diverse facilities.

A model suite at the Ramada Resort in St. Kitts VOLUME 42, NUMBER 2

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Understanding China An Interview with Anla Cheng, Founder and Chief Executive Officer, SupChina EDITORS’ NOTE Anla Cheng has been a Partner at Centenium Capital and Sino-Century, a China hedge fund and cross-border privateequity firm, and has decades of experience in the U.S. and major Asian financial markets. She is a trustee of the boards of the China Institute, Committee of 100, The Nature Conservancy and Facing History. Cheng is also a member of the China Council of Brookings, Columbia China Global Council Anla Cheng and National Committee on United States-China Relations. Cheng received her M.B.A. from Wharton Graduate School of Business and graduated magna cum laude from the Pratt Institute.

COMPANY BRIEF SupChina (supchina.com) is an independent digital media and events platform that informs and entertains a global audience of influencers and leaders with smart, accessible content, helping them make sense of a complex country that is reshaping the world. SupChina is divided into three principal components: a daily newsletter that keeps readers up to speed on China’s most important business, political and cultural news; an ever-expanding podcast network anchored by the award-winning Sinica Podcast, the crown jewel of English-language China podcasts; and a website with the day’s news along with original content, original reporting and deeper analysis which are also available on its app and all social media channels. Some recurring weekly features include a sports column, a music and movie feature and a monthly quiz. SupChina currently hosts two large-scale annual events: NEXT CHINA and SupChina’s Women’s Conference.

Will you discuss your vision for creating SupChina?

Most children in the U.S. get very little time to learn about China in their history classes.

When students graduate from high school, their knowledge on China is minimal.

However, because many of the main media companies, such as Bloomberg, The New York Times, and The Economist are banned in China, what is being written on China tends to be skewed and is not providing the 360 view that Americans should have of China.

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Now, with China’s engagement on the Belt and Road initiative, which involves 69 countries and $1.3 trillion, many countries are writing a great deal about China, but much of this is still not disseminated to Americans.

The view of most Americans is that China is a “communist” country, but they don’t realize it is also very capitalistic – in many ways even more so than the U.S. because of its regulations and the ease of doing business there in specific sectors.

It’s my way to bridge the knowledge gap and inform and educate those who want to learn about China.

What platfor ms ar e you using to accomplish this goal?

We have a newsletter, videos and seven different podcasts available via an app and on our website covering politics, business and culture. The website is geared more towards millennials and the newsletter is geared more for the business and academic community and Fortune 500 companies We are on several social media platforms from Twitter to Facebook to WeChat.

We have the largest number of podcasts under the umbrella of our award-winning Sinica Podcast Network. The seven podcasts on China include a number of topics including politics, business, economics, tech, culture and women’s issues.

We have from 100,000 to 150,000 listeners per month. The newsletters and videos on our sites, in total, are accessed by about four million visitors per month.

How many events does SupChina host?

We host over 30 events per year, two of which are signature events. The two large events are called Women in China conferences which highlight women who are making a difference.

We also host the Next China Conference with over 50 speakers and 500 attendees.

You mentioned earlier about China as a capitalist environment. Will you discuss this transformation, which many outside of China and in the West might not realize is taking place?

The word “communist” is something that causes Americans to shudder but, within China, it means a group of people who believe in socialist capitalism and who believe in a community that allows communism and capitalism

to thrive side by side. Today’s Chinese communism means making prosperity more available to everyone.

When I say China is more capitalist than the U.S., there are two sides to that: the Chinese have made it very easy for entrepreneurs to start businesses, especially in technology and in science. China lost 50 years of economic growth due to Mao, who ordered people to make steel in their back yards, which caused peasants to melt pots instead. China doesn’t want to miss out on the next technological revolution, so they have invested heavily at the government and corporate level.

The U.S. may argue that this is not a level playing field because the Chinese give start-ups interest-free loans, free rent and professional assistance to help them get started.

There has been a huge growth of venture capital, and there were almost 100 unicorns that went through IPOs in China last year.

This is probably the largest concerted effort ever undertaken by one country to develop a whole industry in science and technology. China has ten times as many STEM graduates each year than the U.S. and applies for twice as many patents. It has been phenomenal.

With issues such as trade impacting China/U.S. relations today, how critical is it that this relationship remains strong and grows in a positive way?

The U.S. and China need to resolve their trade disagreements and, hopefully, learn to agree to disagree. Once we get to that point, these two strong countries have the resources to come together to solve our most pressing global issues. The U.S./China relationship is one of the most important in the world, which is why we launched SupChina to help people on both sides to understand each other.

Some may hold the view that Trump might not be the President the U.S. deserves and some say Trump is the perfect President for China because he provided a wake-up moment. It is true that China sometimes took unfair advantage of their entry into the WTO. The U.S. hoped that growth in trade would lead to China becoming a democratic country.

Now that this appears less likely, the U.S. is taking a much harder stance on trade.

Should the U.S. and China agree to disagree, we can look to renewed prosperity, which benefits both sides.

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PURPOSE

CBRE Cares An Interview with Alison Caplan, Senior Vice President, Corporate Responsibility, CBRE EDITORS’ NOTE Alison Caplan works closely with corporate leaders and teams to develop and implement strategic objectives in environmental stewardship, community engagement and corporate giving. This includes direct oversight of CBRE Car es, the company’s phila n thr opic or gani z ation. Caplan also serves as chief of staff for CBRE’s General Counsel, whose organization includes the global Legal team as well as the Insurance, Enterprise Alison Caplan Risk Management, Compliance, Internal Audit and Workplace Safety & WellBeing departments. She has an active leadership role in the CBRE Women’s Network and serves on its Advisory Board where she oversees programing and operations, and currently leads its Field Delegate Program, which has 100+ delegates across the country. Caplan has worked at CBRE for the past 14 years and has experience in other areas of the business, including Human Resources (Staffing and Employee Relations), Compliance and Legal Operations. She was the recipient of the 2018 Women’s Network Endurance of Spirit Award and received her B.S. in industrial and labor relations from Cornell University.

COMPANY BRIEF CBRE Group, Inc. (cbre.com) is the world’s largest commercial real estate services and investment firm, with 2018 revenues of $21.3 billion and more than 90,000 employees (excluding affiliate offices). CBRE has been included in the Fortune 500 since 2008, ranking #207 in 2018. It has also been voted the industry’s top brand by the Lipsey Company for 18 consecutive years and has been named one of FORTUNE’s “Most Admired Companies” for seven years in a row, including being ranked number one in the real estate sector in 2019. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

How are the corporate social responsibility efforts structured at CBRE? Corporate social responsibility reports directly into our chief administrative officer, who is a direct report of our CEO. VOLUME 42, NUMBER 2

Corporate responsibility is divided among the following pillars: environmental sustainability; people and culture, which includes diversity, talent and employee engagement; procurement, which is how we’re sourcing; community and giving, which is our philanthropic efforts; workplace safety and well-being; and ethics and compliance and governance.

Communities and Giving along with Environmental Sustainability r eport dir ectly to the corporate responsibility department.

The other pillars report to the same operating board member or to our general counsel, so we have collaboration where we’re working together.

The corporate responsibility team designs an overarching CR strategy for the company.

The team expands and elevates the company’s understanding of the expectations of customers, employees, investors and the broader society with respect to CR. The CR team works closely with senior leaders, leading the effort to fulfill the commitment to CR in the design and implementation of business strategies and operational objectives of the company. We identify trends in the external and internal environment, recognize risks and opportunities and use insights gained to integrate CR practices with the current business strategy.

We use industry metrics to evaluate ourselves and look at the progress we make each year.

Will you discuss CBRE Cares?

CBRE Cares was a grassroots organization that started over a decade ago with a few signature programs. Our current focus is to transform our regional programs into one unified global strategy.

One of our most important programs is our Disaster Relief Foundation. This foundation was set up to provide grants to employees who are personally impacted when there is a disaster.

Our disaster relief also contributes to communities impacted by natural disasters. One of our key partners has been the American Red Cross. This year, with the fires in California and also the hurricane in the Gulf area, we made contributions to help those communities.

How critical is it to get your employees engaged in these efforts?

We have amazing local CBRE Cares chapters, which we rely on throughout the U.S. They get involved in their local communities, which is really important to CBRE as a commercial real estate company. Giving back to our communities is a key foundation to CBRE Cares.

CBRE offers generous policies for our employees relating to donating their time. We want to make sure people know about what is offered, because information can get lost in a very large organization. For instance, we are currently running a campaign reminding employees that we offer two PTO days for employees to donate their time toward a worthy cause.

We also need to remind employees that CBRE has a matching program.

People certainly know about it, but it’s not communicated widely enough, so that is a real focus for 2019.

Will you discuss the activities of the CBRE Women’s Network?

The Women’s Network is founded on the four pillars of mentorship, growth, connection, and advocacy.

CBRE has an amazing network of women.

In the U.S., we have over 4,000 members.

Women support women at this company in a way I haven’t seen elsewhere. Participation in the Women’s Network provides connections to women in all levels of the organization. This network provides both formal and informal mentorship, which is a key to success. We have some amazing programs – this year, we unveiled a new professional development program for members that focuses on distinct areas of their careers. This gives them online access to customized professional development and training courses that were not available previously.

You have been at CBRE for more than 14 years. What has made CBRE so special for you?

The Women’s Network has been a big part of it. Through my work in the Network, I developed my confidence and leadership skills and was able to grow my career in ways that I could not necessarily have done only through my day job.

I have been fortunate to have sponsorship in my career at CBRE. My sponsor has been instrumental in my career advancement, as has the CBRE entrepreneurial environment which provides endless possibilities once employees prove themselves.

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Social Change Agents An Interview with Jeff Kraut, Executive Vice President, Strategy and Analytics and Ram Raju, Senior Vice President and Community Health Investment Officer, Northwell Health EDITORS’ NOTE Jeffrey Kraut also serves as Associate Dean for Strategy for the Donald and Barbara Zucker School of Medicine at Hofstra/ Northwell, one of the nation’s most-innovative medical schools. He serves as Chair of the Public Health and Health Planning Council (PHHPC), which oversees public health, health planning, regulatory and certificate of need activities in New York State.

Kraut is a board member of the New York eHealth Collaborative, the entity responsible for coordinating the development of the NYS Health Information Network and served on the American Hospital Association’s Society for Healthcare Strategy and Market Development where he was the 2017 recipient of its Leadership Excellence Award. He is a Fellow of the New York Academy of Medicine and serves on the Standards Council of the Commission on Accreditation on Healthcare Management Education. Kraut is also involved in regional economic development and community building activities as a board member of the Long Island Regional Planning Council and the Brookville Center for Children Services, where he serves as its President.

Kraut serves as a health policy advisor to the Long Island Index and ERASE Racism and is a member of the Energeia Partnership which is dedicated to achieving social equity through regional private/ public partnerships. Prior to joining Northwell, Kraut served as the Vice President for Policy and Planning at the SUNY Downstate Medical Center, where he was recruited from the healthcare consulting group of KPMG Peat Marwick. He received an M.B.A. in Healthcare Management from Baruch College/Mt. Sinai School of Medicine and is a graduate of Stony Brook University.

Dr. Ram Raju is responsible for evaluating the needs of Northwell’s most-vulnerable communities and providing solutions for them by collaborating with community-based organizations. Prior to Northwell, Dr. Raju served as President and CEO of NYC Health + Hospitals from 2014-2016. He also served as CEO for the Cook County Health and Hospitals System in Chicago, the nation’s third-largest public health system. Dr. Raju’s medical career began at Lutheran Medical Center in Brooklyn and he later served as COO and Medical Director at NYC Health + Hospitals’ Coney Island Hospital. In 2006, Dr. Raju became the HHC Chief Medical Officer, Corporate Chief Operating Officer and Executive Vice President. He served as Vice-Chair of the Greater New York Hospital Association and currently sits on the boards of numerous city, state and national healthcare organizations, including the American Hospital Association, the New York Academy of Medicine and 76 LEADERS

Jeff Kraut

Ram Raju

the Asian Healthcare Leaders Association. Among his numerous awards and accolades, Dr. Raju was selected to Modern Healthcare’s “100 Most Influential People in Healthcare,” “Top 25 Minority Executives in Healthcare,” and “50 Most Influential Physician Executives in Healthcare.” In 2013, he was named a Business Leader of Color by Chicago United. Dr. Raju earned a medical diploma and Master of Surgery from Madras Medical College in India. He underwent further training in England, where he was elected as a Fellow of the Royal College of Surgeons.

He later received an M.B.A. from the University of Tennessee and CPE from the American College of Physician Executives.

INSTITUTION BRIEF Northwell Health (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 Zucker School of Medicine at Hofstra/ Northwell and 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 68,000 employees – the state’s largest private employer. With 23 hospitals, more than 700 outpatient facilities, and a full complement of home care, rehabilitation and long-term care services, Northwell is one of the nation’s largest health systems, with $12 billion in annual revenue.

Will you provide an overview of your roles within Northwell Health and the key priorities for your areas of responsibility?

Raju: My role is to incorporate the social risk factors into our patients’ treatment plans. We know that these nonclinical issues affect health outcomes.

We are developing a system that will be able to analyze social risk factors at the point of care

and make connections to community-based organizations through a program called the Northwell Health Social Vulnerability Index (SVI).

We want to also systematically collect data on social issues directly from our patients. We have a questionnaire that informs the SVI algorithm to analyze the data we collect.

Once we understand the social issues of our patients, it naturally follows that we are interested in understanding the social issues of communities in which our patients live.

We are trying to aggregate some of the publicly available social data to create an important social risk profile for each community we serve, and then determine how we can work with community-based organizations to mitigate some of the social determinants in a strategic way.

Most importantly, we need to be able to measure the interventions we put in place and how much of a difference they make in mitigating the social issues, which translates into better health outcomes for patients.

Kraut: My primary responsibility is to help coordinate and facilitate the development and execution of our strategy across the health system, which addresses two overarching areas.

The first and most important is core to our mission; we exist to improve the health of the communities we serve.

The second issue involves recognizing that what we do comes with a unique social obligation.

After first serving as a social worker, Michael Dowling (Northwell Health’s President and CEO) then served in government as Secretary of Health and Social Services to the Governor as well as commissioner of social services.

Because of his leadership, we view the health system as an agent of social change – and not only in health – and with that comes a unique corporate responsibility. We are the largest provider of healthcare within the state of New York – we provide twice as much care as our next closest competitor.

With that size comes a unique obligation. The area that Ram has been talking about deals with the social determinants of care – how Northwell responds to those issues is integral to our social responsibility. We need to focus on social equity because we believe that, without health equity, we can’t achieve quality health. We align our approach around national and New York State prevention priorities and strategies that are focused on those social determinants.

Part of my job is to maintain our focus on this and make sure that all the different things we’re VOLUME 42, NUMBER 2

doing, and all our planning and investments include conversations that bring the voice and needs of the community into the discussion as we consider the programs, services and initiatives we launch.

Have you been happy with how the community-based organizations have engaged with Northwell Health on these issues?

Raju: We are very pleased with the community-based organizations. The response to both what we are doing and the reputation of our brand have helped us create connections with community-based organizations.

For example, when it comes to our focus on food as health, we have established a food prescription program, which involves giving certain patients fresh food so they can enhance their nutrition. We are working with Island Harvest, Long Island Cares, The Harry Chapin Food Bank, God’s Love We Deliver, US Foods and Baldor to deliver food to the patients’ doorstep.

This is an example of how the various community-based organizations and some of the big players can come together and create food security for our patients.

Kraut: To elaborate more on examples, we are also participating very actively in a 1115 Medicaid waiver that is redesigning the system by helping to improve access, quality, and cost effectiveness of health services for the poorest and most at-risk residents.

We have also created very strong partnerships to align and integrate community-based mental health needs within our primary care practices. We work to integrate and coordinate services by developing a common, clinical, electronic platform with those organizations. In certain communities, this has been absolutely invaluable in reducing admissions for mental health and decreasing emergency room visits.

Another example would be in our Greenwich Village facility where we have been focusing on the LGBTQ community. A community health center that serves the LGBTQ population has been a wonderful partner with us. They can hand off patients to us in the event of emergencies or for other care, and they have helped our staff to focus on the cultural sensitivity issues that are important in serving those communities.

A number of underserved high schools experience challenging limitations in their educational funding, so we have created the “Medical Scholars Pipeline” program to support promising high school students in communities affected by the social determinants of poverty, low educational attainment, and high unemployment. We are working with these highly motivated students to help them get through high school and create a pipeline to college with the objective of interesting them in the health professions, including medical school. Some students from our pipeline program have been accepted into our medical school as well as others.

We also have an association with the Long Island Coalition Against Bullying, working with those issues and educating our pediatricians about how to best assist kids who are being bullied.

These are just a few examples of the many partnerships we have. We try to connect with communitybased organizations that have some degree of scale, VOLUME 42, NUMBER 2

but also have a shared sense of vision and ability to embrace a partnership with an institution like ours.

We both see the added value of working together.

With the many different factors that go into healthier communities, what is the starting point in reaching out to communities?

Kraut: It fundamentally starts with trust. In some African American communities, there might not be a very strong infrastructure in healthcare, so we have a program focused on the high incidence of hypertension within this community. Although we offer a large number of community education programs, we realized that we were not well known nor were we necessarily trusted.

We created a program called Bridging Communities of Faith and Health. We work with the local religious organizations in developing relationships on a church-by-church basis. The church leaders work with us to choose the topics that are most important to the health of their congregations.

We then tailor programs to address those topics with their parishioners.

We recently completed a six-week program and it generated a tremendous response. This motivated us to create another program to go to other churches in the area and build on that success. We are addressing men’s health and other issues that are important in these communities.

These successes have to start with trust. In New York, there are many different definitions of community – it could be by faith, by ethnicity, by language, by culture or by geography. This means Northwell has a phenomenal national laboratory in its service area where we speak more languages than anywhere else in the world. The ethnic diversity and language challenges are second to none, so trust needs to be the foundation of any progress.

While Northwell’s primary focus is on healthcare, how important is it to partner in addressing other critical social issues in the community such as housing?

Kraut: When we were looking to restructure healthcare in central Brooklyn, which was served by four hospitals that were losing $400 million per year, the government was willing to invest $700 million in capital and give these hospitals a five-year commitment to support their operations so they would come together and restructure healthcare within the community. Overall, there is a nearly $2.5 billion commitment to these communities to rebuild and transform healthcare.

We not only focused on what the healthcare delivery system would look like and how we needed to expand away from the bricks and mortar of inpatient care, but we proposed a regional alignment of all the entities receiving funding for social programs in the region. Collectively, they worked together toward shared goals, and coordinated their responses to address community health needs.

The governor took these ideas and created his own program called Vital Brooklyn. He is trying to align healthcare and other social spending, and there is one very promising development: the state has issued RFPs to develop housing using some excess hospital property.

They gave incentives to developers proposing to build housing for the frail elderly or behaviorally challenged individuals, many of whom were

homeless. If the developer works with the local healthcare delivery system and gives the first floor over to create primary-care capacity, they will be given a higher priority for funding. If they give that space to the healthcare provider for free, the state will pay to build it out and give the developer a bonus for doing this.

The state is now trying to create incentives that would force the community investment to be aligned with healthcare investment. This is a great model.

Raju: Northwell is on the cutting edge in addressing the social determinants, both as a healthcare issue as well as a corporate social responsibility issue.

Being a healthcare provider alone is not enough; we also take an interest in the communities we serve.

Northwell is one of the leading institutions behind the Democracy Collaborative Healthcare Anchor Network. This group has committed to not only provide healthcare and work on improving community health, but also to working on the economic vibrancy of a community.

This means hiring locally, procuring services locally and investing locally. We are trying to do that while also supporting local businesses.

To foster our efforts to hire locally, we created a community health worker program, so people with a high school diploma are given a grant to go through a Northwell program where they are trained to be community health workers which creates economic opportunities for people who, otherwise, would have few real job opportunities.

Northwell has taken social responsibility much more seriously than most other organizations.

How deeply ingrained is this as part of the Northwell Health culture?

Raju: Michael Dowling is a social worker at heart. He cares about people. He’s also bringing his own personal experience to address these issues, which makes all of us want to work towards making it better every day.

While we are here to heal people, we are also here to make sure that people stay healthy and to address social issues. We want to be social change agents, not just healthcare providers. That is what we’re trying to do and that differentiates us from other healthcare systems.

Kraut: This is woven into the culture of our organization. Many of our employees take it as a point of pride when they look to these programs.

Many are joining business employee resource groups that take on projects outside the walls of the health system based on the particular community affinities they have.

This is a cultural issue for us and people know that, when they join us, we are here to make a difference and we have a different level of obligation - this isn’t a job; it’s a calling.

This also makes us essential to our communities. When we need support, there is no lack of it from our communities, patients and the political structure. They recognize us as an important community asset that brings enormous value which, in turn, has resulted in a very loyal community and philanthropic base.

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The Entrepreneurial Spirit for Business An Interview with Parker H. “Pete” Petit EDITORS’ NOTE Pete Petit has at night. I could use my veteran’s extensive experience as an entrebenefits, and I achieved my M.B.A. preneur, philanthropist, and CEO. in Finance at Georgia State in 1973.

He is a healthcare executive with With both of those universia history of developing companies ties, I have tried to give back so that from their emerging stages and future students could have these leading them to maturity and sigsame opportunities. nificant stature in their respective My other philanthropic efforts markets. Petit is heavily involved are focused on teenagers and finding in philanthropic activities includways to better prepare them for life – ing the funding of a professorial spiritually and emotionally. chair for “Engineering in Medicine” Do you put metrics around and the endowment of the Petit Parker H. “Pete” Petit your philanthropic investments in Institute for Bioengineering and order to track impact?

Biosciences at Georgia Institute of Technology I have always tried to have some metrics in Atlanta, Georgia. He also funded the Parker that drove my investments. At my two universiH. Petit Science Center building at Georgia State ties, I have made more than one investment.

University. Petit is former Chairman and CEO The decision for the subsequent investments of MiMedx Group, Inc. located in Marietta, was always based on the progress I saw from Georgia, has been inducted into the Georgia making the first philanthropic donations.

State Business School Hall of Fame, and was You have had a long career as an entrerecently inducted into the National Academy of preneur. Did you always know that you had Engineering. Petit graduated from Georgia Tech the entrepreneurial spirit and desire to where he received his B.S. degree in mechani- build businesses? cal engineering and M.S. degree in engineerAs a teenager, I exhibited characteristics ing mechanics. He received his M.B.A. degree in of being relatively independent and willing to finance from Georgia State University. take risks. As I exited the military and then into my late twenties, I began to have an interest What are the keys to effective philanthropy? in doing something independent and entrepreTo me, philanthropy is about investing in neurial. While I had an excellent career expepeople and projects requiring capital just as it rience at Lockheed, I kept feeling the pull of is accomplished in business projects. The prin- some other endeavor. It turned out that calling ciples of making sound business investments was the entrepreneurial spirit for business. certainly apply to philanthropic investments.

My thrust into an entrepreneurial situation There are always more needs that can be imme- occurred when we lost our second son from a diately fulfilled; therefore, one needs to make crib death in 1970. Subsequently, I developed common sense investment decisions. I try to the first home physiological monitor for infants keep my emotions out of my philanthropic activi- at risk for Sudden Infant Death Syndrome. I ties, just as I do my business activities. managed to develop the product by unofficially How do you decide which areas to sup- using the Georgia Tech electrical engineering port with your philanthropic efforts? laboratories to test the first prototypes of I first gravitated towards projects where that product after my normal working hours at I am personally giving back to areas where I Lockheed. Therefore, I unofficially used Georgia experienced life-changing activities. My initial Tech as an entrepreneurial incubator which is donations were focused on the two universities such a successful concept today. However, in which allowed me to obtain my education. First, 1971, I had to know the head laboratory techniat Georgia Tech, where its engineering coopera- cian in order to have access to the facility. tive program allowed me to work a quarter and Is entrepreneurship something that go to school a quarter. Without that cooperative can be taught? work program, I could not have afforded colEntrepreneurship takes a significant amount lege. Second, when I started my first entrepre- of risk-taking ability. I found that most people neur endeavor, I knew that I needed a business do not have the courage to take the personal or education. Fortunately, Georgia State University financial risk associated with an entrepreneurial had an excellent MBA program that was offered endeavor. That ability is in one’s DNA. 78 LEADERS

The other required skills are associated with the ability to synthesize and develop vision. These skills are more easily found, and some can be taught.

However, as I have talked to young entrepreneurs in educational settings previously, I always explain that their capacity for risk-taking would be a key ingredient no matter how visionary their projects were. Also, they needed a partner who would be a general manager sooner rather than later. In other words, business judgment needs to be brought to the project early in the process.

You are very involved in Atlanta and have a long association with the city. What makes Atlanta so special for you?

Atlanta is special to me for a number of reasons. First, I was born at Emory University Hospital. Second, I received my education here.

When I started my first business in 1970, Atlanta was beginning to awaken to its huge opportunity as a major growth city.

During my tenure as a member of the Atlanta Chamber of Commerce, we all devoted significant amounts of time to developing programs to attract high technology and other businesses to the city. However, there were times when many of us thought we had done too good a job due to the unbelievable growth rate and subsequent traffic.

What do you see as the strengths of Atlanta from a business standpoint?

I believe Atlanta has all the attributes for business success. It will continue to be one of the strong business leadership areas of this country. While we do not have the technology roots of Silicon Valley or the technology in the Boston loop, we have so many of the other assets necessary for business development and a wholesome environment for families. Over the decades with my businesses, I have moved numerous families to Atlanta. I do not think I have ever had a family complain or want to return to the West Coast, Northeast or Midwest.

With all that you have achieved in business and philanthropy, do you take moments to reflect and appreciate what you have accomplished?

I will be 80 years old this year, but I cannot seem to stop focusing on new opportunities, particularly in philanthropy. I now have some philanthropic investments in social entrepreneurial organizations, which I find extremely exciting.

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Cooperation, Compassion and Innovation An Interview with Kristen Morris, Chief Government and Community Relations Officer, Cleveland Clinic EDITORS’ NOTE Kristen Morris joined Cleveland Clinic in 2013 as the Chief Gover nment and Community Relations Officer. Her ar eas of r esponsibility include cultivating and maintaining relationships at the federal, state and local government levels to monitor development and influence legislative outcomes that affect the mission of the Cleveland Clinic; fostering continual development and partnership with the govern- Kristen Morris ment agencies to conduct critical research and share best practices; ensuring good relations, communications and involvement with the city of Cleveland and its civic organizations; developing and leading community relations strategies and initiatives that support public health goals in the neighborhood; and creating and engaging civic education programs to promote education in the sciences and health disciplines. Morris’ background includes ten years representing the biotech and medical device industries, eight years as the Vice President of Legislative Affairs for the American Hospital Association and several years r epr esenting physician associations including time at the American Medical Association. She also served as a legislative assistant on Capitol Hill. Morris graduated from Purdue University.

INSTITUTION BRIEF Based in Cleveland, Ohio, Cleveland Clinic (my.clevelandclinic.org) is a nonprofit multispecialty academic medical center that integrates clinical and hospital car e with r esearch 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 & 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 VOLUME 42, NUMBER 2

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 special and how do you define the Cleveland Clinic difference?

It is our focus on everyone wanting to be the best at every level.

We want to be the best place for care anywhere, we want to be the best place to work, and we put a tremendous amount of energy and effort into accomplishing that.

How critical is the commitment to continuous improvement to the culture of Cleveland Clinic, starting with the top of the organization?

A new element was introduced when Dr. Tom Mihaljevic came on board as our CEO where, every single day, we sit down and have tiered huddles to review everything that is going on in the organization to help determine what we can do better.

The process is data driven, but we also share the experiences and anecdotes that strike our caregivers and roll all of that information up to our CEO. We even celebrate the good catches – things that could have been bad if we hadn’t prevented them.

We’re working in an organization that has nothing but A-level people and it is in their nature to constantly strive to be better – I have never seen anything like it.

Will you discuss the focus that Cleveland Clinic has around purpose and community?

There are our four care priorities, which we embraced as part of our five-year strategic plan.

Patients are always first, then caregivers – we treat our patients and each other as family, and then our operations – we treat our facility as if it were our home. The fourth pillar is community.

From a practical perspective, every hospital serves and often employs those who are right around them, and so we are naturally part of the community.

Health systems are continually learning how to care for people outside of their four

walls in a far more meaningful and long-term way.

Is it important that your community efforts align with the business or do you view corporate responsibility programs separately?

It’s all one and the same. A really strong corporate social responsibility strategy starts with the nature of the corporation. The social is what the community needs, and the responsibility is the balance between the two – we do what we are good at and align our strengths with what a community needs.

When organizations become unfocused, we water down our impact.

What role is Cleveland Clinic playing in leading the transformation taking place in healthcare?

Our generation has a responsibility and obligation to solve the global economic crisis around healthcare. The clinic has a firm footing in understanding that wellness, and how one cares for themselves throughout their lives, is a direct correlation to how costly their healthcare will be and to the quality of life that person will have later in life.

This is not necessarily new thinking, but driving action behind that message and doing everything we can to enhance policies and practices that foster that wellness are what our generation has to do. We have to change the culture around healthcare.

As an example, it was a big news day almost 12 years ago when the Cleveland Clinic announced it wasn’t going to hire smokers anymore. This has easily been our single most impactful policy on the wellbeing of our workforce. What if other large corporations were to adopt and embrace the same principles? We could see a time where we could significantly improve the number one driver for cardiovascular diseases if this was something we would adopt as a culture.

Our signature program is youth education for a reason. That is where the most impactful health practices start and that is also where we can inspire the next generation of the workforce, which aligns with our business imperative.

As a global, academic health system, it’s in the Cleveland Clinic’s DNA to learn, implement, and always share best practices.

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Design-Driven, Limited-Edition Homes An Interview with Robbie Antonio, Founder and CEO, Revolution Precrafted

Robbie Antonio

EDITORS’ NOTE Robbie Antonio currently has 82 million square feet worth of developed, in progress, and managed properties under his belt, being the Founder and President of Antonio Development in New York, Managing Director of Century Properties based in Asia, and now the Founder and CEO of Revolution Precrafted. To date, he has worked with 13 Pritzker Prize architects/firms such as Zaha Hadid, Philip Johnson, Alan Ritchie, Rem Koolhaas, Jean Nouvel, I.M. Pei, Paulo Mendes da Rocha, and Christian de Portzamparc, as well as designers such as Ron Arad, Campana Brothers, Tom Dixon, Philippe Starck, and Marcel Wanders. He has worked with more than 100 notable brands in various fields including fashion, Hollywood, luxury, design and art.

Antonio has established the largest number of luxury branded real estate developments across the globe by working with Giorgio Armani for Armani Casa, Forbes Media, Versace, Missoni Home, Paris Hilton, Lenny Kravitz and Wallpaper* magazine. He is one of the youngest and most prolific collectors of international modern and post-war contemporary art in the world. Because of his accomplishments as an art collector, he has received awards from many different organizations. In 2014, Artnet recognized him as one of “20 of the World’s Most Innovative Art Collectors,” while in 2015, he became part of Artnet’s “Top 200 Art Collectors Worldwide.” Artnet also recognized him with two awards in 2016: as one of twelve young art collectors to watch out for, as well as one of the top 100 art collectors for that year. This year, he was cited by BuiltWorlds in its 2018 Mavericks Report as one of “25 Pioneers Who’ve Transformed the Built Industry.” In May 2018, he was named “Real Estate Personality of the Year” by PropertyGuru. His passion for art has also led him to collaborate with artists such as Marina Abramovich, Maurizio Catellan, Francesco Clemente, Damien Hirst, Zhang Huan, David La Chapelle, Marilyn Minter, Takashi Murakami, Julian Opie, and Julian Schnabel.

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COMPANY BRIEF Revolution Pr ecrafted (revolutionprecrafted.com) is a collection of limited edition, precrafted properties, including homes and pavilions. Revolution Precrafted brings together over 80 of the world’s leading architects, artists, and designers including Sou Fujimoto, Daniel Libeskind and David Salle as well as celebrities such as Daphne Guinness, Helena Christensen + Camilla Stærk and Amar’e Stoudemire to supply transportable, collectible and customizable homes, pavilions, prefabricated museums, glamping, condominiums, hotels, villas, pop-up retail, pop-up F&B, pop-up offices, pop-up co-working spaces, art furniture, etc. to landowners, developers, and end users all over the world. The prefabricated home concept offers a solution by greatly simplifying the process – picking a design from a selection and having it delivered right to your doorstep. Revolution Precrafted breaks the monotony by delivering high-design structures crafted by the world’s leading designers and architects. To date, Revolution Precrafted has projects in the U.S., the Philippines, Myanmar, United Arab Emirates, Spain, Jamaica, Guyana, Bahamas, Trinidad and Tobago, Puerto Rico, Ecuador, Peru, Brazil, Cyprus, Mauritius, Seychelles, India, Indonesia, Australia, Finland and Japan.

You founded Revolution Precrafted in 2015.

What was your vision for the company and the opportunity that you saw in the market?

Having a background in real estate, I knew that there was still a lot of demand for homes in the Philippines and around the world. I also knew that customers have their usual pain points when trying to acquire a new home. Homes are expensive, and they take time to build and many people get discouraged. Addressing those pain points was one of the motivations behind Revolution Precrafted.

We want to offer homes that can be built fast at a fraction of the cost of traditional home building. We want to differentiate our products from the usual prefab homes by partnering with global architects, designers and artists to come up with design-driven, limited-edition homes.

How has Revolution Precrafted evolved since its founding and will you highlight the state of the business today?

The company was launched in December 2015 and, since then, we have evolved into a company that offers a diverse number of products, not just prefab homes. We still offer our main core products of prefab homes, pavilions, museums, furniture and pop-up retail, but we have expanded to offer low- to mid-rise offices and buildings.

Polygon House designed by Ed Calma VOLUME 42, NUMBER 2

We are also gearing up for new product offerings such as affordable homes, fintech products and hydroponics. We also intend to offer prefab condos and hotels.

We are also now offering licensing for salon, gym and spa concepts under our new company called Renegade Concepts, in partnership with our influencers and celebrities. We feel that its important to always grow so we maintain our success.

How do you describe the benefits and advantages of prefab housing and are these advantages well understood in the market?

Prefab structures are easier and faster to build. By streamlining the construction process, we are able to deliver homes faster and we are able to limit the cost by doing that. Over the past two years, we have been able to educate our customers and partners of the benefits of prefab construction. More than that, they believe in our business model of bringing designer and branded prefab structures.

What differentiates Revolution Precrafted from its competitors?

We are the only branded prefab company in the world. While there are other companies that partner with celebrity architects for a project or two, we have more than 80 of the world’s best architects, designers and artists under exclusive partnership. We expect this

Modular glass house by Philip Johnson

number to increase as we expand to develop other structures.

What has been the importance of partnering with well-known designers in helping to grow the business?

They are at the core of our business model.

Anyone can build a home, a gym or a spa, but

Butterfly House designed by Elizabeth De Portzamparc VOLUME 42, NUMBER 2

by partnering with design geniuses, we are able to elevate these products to a whole new level.

Our designers provide more legitimacy and credibility to our products and to our business.

Will you discuss the global footprint for Revolution Precrafted and the key markets for future growth?

We currently have a footprint in 28 markets in Asia, the Middle East, Europe, as well as North and South America. For our upcoming new products and ventures, we want to focus more on Southeast Asia because the demand there is great.

Have you been happy with your success in attracting top talent to Revolution Precrafted ?

Yes, I am very happy with the caliber and talent of our people. We have been successful at recruiting high performing individuals who are very much committed to the goals of the company.

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

Our priority is to expand our product portfolio and to become a bigger marketplace for real estate projects. We want to be able to link developers and fabricators to customers in order to achieve more cost efficient, quality real estate projects. Over the past two years, we have been successful at growing our network, but we want to expand this network even further so that there are more choices and there is a heavier inflow of orders and projects. We also hope to expand our franchising and licensing business because we believe that it is going to be a significant revenue stream for the company.

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A Values-Driven Culture An Interview with Marc Costantini, Executive Vice President, Commercial and Government Markets, The Guardian Life Insurance Company of America EDITORS’ NOTE Marc Costantini is charged with advancing the company’s commercial and gover nment strategy and continuing its growth across all markets.

Previously, he led the financial, risk, actuarial and internal audit functions as Chief Financial Officer of Guar dian. Prior to joining Guardian in early 2014, he held a variety of executive level positions with Manulife Financial and John Hancock. Marc Costantini Most recently, this included Executive Vice President, Corporate Strategy and Corporate Development for Manulife Financial; Pr esident, Annuities for John Hancock; and Executive Vice President and CFO for John Hancock. Costantini is on the Board of Directors for Children’s Health Fund and a trustee of Tenacre Country Day School in Wellesley, Massachusetts. Additionally, he was on the board of the Insured Retirement Institute and was the organization’s treasurer during his tenure on the board. Costantini is a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries, and a Fellow of the Canadian Institute of Actuaries.

He earned his bachelor’s degree at Concordia University in Montreal.

C O M PA N Y B R I E F T h e G u a r d i a n L i f e Insurance Company of America (guardianlife.com) helps protect families, secur e futur es and improve well-being through insurance and wealth management offerings for individuals, employers and businesses. Its ability to always put its 26 million customers first is driven by its 158-year heritage as a mutual company committed to serving the long-term needs of its policyholders. With appr oximately 9,000 employees and a network of over 2,750 financial representatives in 55 agencies nationwide, Guardian is passionate about advancing innovation, service and knowledge to help build strong families and communities for generations to come.

What makes Guar dian so special and what are the keys to its success?

I joined Guardian five years ago after nearly 24 years with my prior employer. I was not looking to leave the company as I was quite happy there. However, when I was 82 LEADERS

recruited to join Guardian, I started meeting people here and quickly learned that this is a special place.

Everyone I spoke with took tremendous pride in delivering value to our consumers day in and day out by putting themselves in their shoes and treating them with the care they deserve, which is to be expected of an insurance and financial services provider.

Part of what sets Guardian apart from the competition is our unwavering commitment to time-tested values.

We deliver by cementing the values by which we stand – we do the right thing, people count, and we hold ourselves to very high standards.

We take those three values and permeate them through every discussion we have, be it how we deal with our communities or our employees and, ultimately, with our customers. As a mutual insurance company owned by the participating policy holders, we have an alignment of interest and purpose that guides how we deliver value to our customers and create value for ourselves.

We pride ourselves in the company’s performance over the past few years. It’s not just a question of managing expenses or investing in cutting edge technology or how we approach our markets; we want to win, but we want to be one of those select companies that wins the right way so we can all go home and be quite proud of the association we have with this company. It’s a company where one wants their kids to work someday.

Our reputation is also dear to us. At nearly every meeting I attend, the discussion comes back to doing the right thing. There may be financial ramifications for us, but we always look at how we would like to be treated if we were in the other person’s shoes.

That is what has guided this company, certainly for the short five years I have been here, but also for the preceding 150+ years.

I always say that, if we could bottle this and bring it to other companies throughout America, we would have an even higher-performing and engaged workforce.

Will you discuss Guardian’s commitment to corporate citizenship and community engagement?

Guardian has 26 million customers tied to our products and value proposition. The fabric of those customers represents the fabric of America.

If we parlay that in the way we serve our communities, it means we focus on issues that we think are important and consequential.

For example, last year, we announced a partnership with Children’s Health Fund to launch a community program we named Guardians of the Smile to facilitate kid’s access to oral health services. We sponsor dental vans that reach children in schools and communities that otherwise would not have the means to see a dentist.

Another way we manifest this is through financial literacy. Over the past few years, we formed partnerships with local community colleges where we fund a program called Money Management for Life. Students can take these classes and get credit for them, all paid for by Guardian.

Do you feel that the next generation is looking to work for companies that have a bigger purpose than just the bottom line?

Being a purpose-driven company definitely enhances our ability to attract the next generation to work at what otherwise could be a lesser known industry.

When we visit colleges and espouse what we stand for and how we engage our employees in building that community presence, I feel we’re making an emotional connection with younger generations.

This is why we interview for cultural fit.

People will determine very quickly whether they fit into our firm or not.

When one is hired at Guardian, they go through a number of interviews and they meet a number of people who are part of this company.

We are very transparent, and we want everyone to determine if they fit into our values-driven culture. Will they be as passionate about our core values as we are? The people who interview candidates understand and live the culture on a daily basis, so they make sure the early entrants understand our values.

Our culture is seen as refreshing for a company that is based in Lower Manhattan.

Once they walk in, they get a different perspective on what we do.

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PURPOSE

Highlighting Women’s Stories An Interview with Daryl Roth, Daryl Roth Productions EDITORS’ NOTE Daryl Roth is a theatrical producer working in New York who is proud to hold the singular distinction of pr oducing seven Pulitzer Prize-winning plays: Anna in the Tropics; August: Osage County (2008 Tony); Clybourne Park (2012 Tony); Paula Vogel’s How I Learned to Drive; Proof (2001 T ony); Edward Albee’s Three Tall Women; and Wit. The recipient of 12 Tony Awards and London’s Olivier Award, her over Daryl Roth 120 award-winning productions both on and off Broadway include: Angels in America; Bea Arthur on Broadway; Buyer and Cellar; Caroline, or Change; A Catered Affair; Closer Than Ever; The Crucible; Curtains; The Divine Sister; Driving Miss Daisy; Fela!; Gloria: A Life; The Goat, or Who Is Sylvia? (2002 Tony Award); Harlem Song; The Humans (2016 Tony Award); Paula Vogel’s Indecent; Nora Ephron and Delia Ephron’s Love, Loss, and What I Wore; The Normal Heart (2011 Tony Award); Old Wicked Songs; One Man, Two Guvnors; Our Lady of 121st Street; The Play About the Baby; A Raisin in the Sun (2014 Tony Award); Shuffle Along; Sunset Boulevard; The Tale of the Allergist’s Wife; The Temperamentals; Twilight: Los Angeles, 1992; A View from the Bridge (2016 Tony); War Horse (2011 Tony Award); Who’s Afraid of Virginia Woolf?; Wiesenthal; The Year of Magical Thinking; and De La Guarda and Fuerza Bruta, which ran for 14 years at the Daryl Roth Theatre on Union Square.

Roth was recently named to Crain’s 2017 “50 Most Powerful Women in New York.” She is a Trustee of the Kennedy Center, the New York City Police Foundation, and the Mayor’s Theater Sub-district Council, and an Honorary Trustee for Lincoln Center Theater, having served on the Board for 21 years. Recent honors include: the Lucille Lortel Lifetime Achievement Award; the Town Hall Friend of the Arts Award; The New Dramatists Outstanding Car eer Achievement Award; The Elly Award from the NY Women’s Forum; and the New York Living Landmarks award. She was inducted into the 2017 Theater Hall of Fame. The Daryl Roth Creative Spirit Award, now in its 20th year, annually honors a gifted theater artist or organization, providing them with financial support as they develop new works in an artistic residency.

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ORGANIZATION BRIEF Daryl Roth Productions (darylrothproductions.com) has produced more than 120 Broadway and off-Broadway plays and musicals since its first production in 1988. The Daryl Roth Theatre, which opened in 1996 in the landmarked former Union Square Savings Bank, is home to the 299-seat main stage; the DR2, an intimate 99-seat theater that welcomes new plays as well as programming for young audiences; and the D-Lounge, an intimate cabaret space.

Are there strong opportunities for women in theater and the arts?

That subject is very timely. Until somewhat recently, I was one of the few women producers around the table and, happily, that is now changing.

By mentoring other women and bringing more women onto creative teams, we are working towards parity. We still have far to go.

I feel a responsibility to highlight women’s stories by the plays I choose to present, encouraging my daughter and granddaughters and the generations that follow to find their own strength, confidence and independence.

I am currently producing a play about Gloria Steinem’s life. She’s such an icon and visionary, and we all stand on her shoulders in ways that we never fully appreciated. The play itself, written beautifully by Emily Mann and directed by Diane Paulus, is a project I’m very proud of, primarily because I’m honored to be telling Gloria Steinem’s story but also because, as a way to pay tribute to her, I made the decision to have only women on the creative and producing teams.

We started developing this play over three years ago, and I never expected it would be a play that was so needed at this moment in time – for both women and men.

When you’re telling women’s stories, is it important that the shows also reach men to bring them into the conversation?

Yes, it has to be intersectional on all levels. With Gloria: A Life, for example, we have done that very well because Act One is about Gloria’s life and work, and the activism that she has inspired in all of us; Act Two is a Talking Circle, which is a conversation among all audience members. They respond to what they have

seen and heard within the play and they comment on life experiences, many of which are either told by men in the audience or women talking about their fathers, brothers and sons, and how opening up lines of conversation has made such a difference.

Gloria always said that we live in a patriarchy. That patriarchy lives within us, but we have to create a world that is focused on acceptance and parity and equality. The job of all genders is to open a dialogue and come to an understanding.

The beauty of theater is that it can really change our minds about things and enlighten and educate us, as well as entertain us.

How valuable has it been to have a venue like the Daryl Roth Theatre that is so appropriate for telling these stories?

It has been a great gift for me to have the theater venue. It has been an inspiration in terms of what I can choose to produce there.

It has an intimate feel and is an open space, so we can configure it in the appropriate way for each different production that we produce there.

For Gloria, we have made the seating in the round so that the second act Talking Circle is indeed that. People feel comfortable sharing their stories with one another and, in the words of Gloria, “we are all linked, not ranked.”

For other plays, we have used a more traditional, presentation design.

It’s wonderful to also have the DR2, the 99-seat theater next door. In March, we are opening a new play Accidentally Brave, a true story written by the actress performing it. This smaller space is ideal for intimate storytelling.

This wonderful venue is also where we introduce young children to theater under our DR2 Kids programming umbrella. It’s welcoming and hopefully starts them on a theater-loving journey.

What advice do you offer young people interested in building a career in the arts?

It’s important for people that love theater to expose themselves to as much theater as they can, as they can learn something new from every production.

I also tell people who are interested in producing to trust their instincts, be tenacious, and choose projects that are meaningful to them. At the end of the day, what one produces becomes their legacy.

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Making a Better World An Interview with Laura Gallagher, Global Head of Corporate Citizenship, AIG EDITORS’ NOTE Laura Gallagher joined AIG in 2009, wher e she has also served as Dir ector of Corporate Philanthropy, Community Engagement Manager, and Learning & Development Project Manager. In 2018, she accepted the Ignite Impact Award fr om the Association of Corporate Citizenship Professionals.

She earned an M.A. in educational media from New York University and a B.A. in inclusive education and psyLaura Gallagher chology from Syracuse University.

COMPANY BRIEF American International Group, Inc. (aig.com) is a leading global insurance organization. Building on 100 years of experience, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security.

Will you discuss AIG’s focus on purpose and its commitment to corporate citizenship?

I have been with the company for nine years, and we are celebrating our Centennial this year, so this is an exciting time to be here. Having had an opportunity to look at the history of the company, it’s clear that citizenship is infused into AIG’s culture. I feel very lucky to be part of an organization where this has always been part of who we are, as reflected in how willing we are to use our deep expertise for business benefit in ways that also help society as a whole.

Every day, our colleagues around the globe put purpose into action by volunteering to help others, by participating in their local Employee Resource Groups, which are groups of employees who come together based on a shared interest in a specific dimension of diversity, and by otherwise working toward the greater good.

With so many areas of need, is it important to focus on specific areas where you can make the most impact and do those areas need to align with AIG’s business?

As much as possible, we align our philanthropic efforts with our business, because that is where our core competencies are and, as a result, where we can really contribute to making a better world.

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Through this approach, our programs and partnerships result in meaningful employee engagement opportunities that ultimately better our business, brand and the communities where we work, live and serve our customers.

How important are partnerships in driving impact?

Throughout the history of AIG, partnerships have been our priority. We partner with our clients, our brokers and with nonprofit organizations that have the expertise to make change in society for good.

Through both our monetary support of nonprofit organizations and our employee volunteerism, we work with leading experts who guide us to where the need is the greatest and where we can make the most impact. We are extremely proud to support nonprofit partners on the local and global level, and to customize those partnerships to best suit the needs of local AIG offices and surrounding communities.

AIG’s leadership supports and communicates the importance of our Corporate Citizenship programs and partnerships, and they can be counted upon to personally participate.

Our Volunteer Time Off and Matching Grants Programs are excellent ways for our employees to support our partnerships. We offer two days off per year for employees to volunteer with any qualifying nonprofit organization or school, and AIG’s Global Volunteer Manager also develops phenomenal programming for employees to volunteer with their colleagues.

In addition to volunteer time off, we have a generous Matching Grants Program that matches employee donations to qualifying nonprofit partners of their choice two-to-one, up to $10,000 for each employee per calendar year.

How important are metrics when it comes to AIG’s citizenship efforts, and is it challenging to put metrics in place in this kind of work?

Metrics are very important. While it does take more effort up front, integrating metrics into Citizenship programs guarantees that all stakeholders know what the goals are right away – so that there are no surprises midway through a program or partnership.

The thoughtful metrics we put in place are developed in collaboration with our nonprofit partners because we want to make sure that we’re supporting their goals as well.

Those metrics help track the impact of our programs. They are essential for telling our story to our clients, investors, current and future employees, and the communities we serve.

Is it well understood today that a company’s philanthropic and community efforts can also be good for its business results?

I believe it is. When I speak with my peers at other companies, this is a focus for them as well.

At AIG, we use our business expertise to support nonprofit partners. For instance, we have an excellent legal pro bono program. Our legal team is wholeheartedly engaged in using their expertise to help nonprofit organizations.

We’ve expanded this concept and now the corporate communications team advises nonprofits that need marketing and communications assistance. As a result, opportunities have been made available for employees to build their own skill sets – all while helping others and positively representing AIG’s brand.

We see many of our leaders encouraging people to use their expertise to support nonprofit partners as well, so it’s naturally aligned with our business.

We also provide a wide variety of philanthropic opportunities that also support business results.

With AIG’s global footprint, how critical is communication internally in engaging employees and informing them about these CSR efforts?

Communicating about AIG’s Citizenship efforts is one of the most important things we do.

We have taken the time to better communicate this information internally from the day people start at AIG and throughout their careers here. We want to communicate about opportunities to get involved and recognize participation, in addition to communicating externally about the collective impact our employees have made.

Our Citizenship team has created a number of toolkits and communications that can be utilized around the world, and they are flexible enough to meet local needs according to customs and cultures.

As we attract new talent, we have a great story to tell about the culture of the company and that Citizenship is a fundamental part of our DNA. AIG is a company people want to work for because, in addition to being an exceptional insurer, we also have an excellent corporate culture in which employees can take great pride.

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PURPOSE

A Decade of Empowering the Caribbean Region and Its People An Interview with Heidi Clarke, Executive Director, The Sandals Foundation EDITORS’ NOTE Heidi Clarke’s primary responsibilities include managing mor e than 100 Sandals Foundation programs annually, as well as developing and maintaining relationships with nonprofit and corporate partners, travel associates, government agencies, team members, donors and the local communities in the eight islands where it operates. Born and raised in Jamaica, Clarke has experience in education and social services, as well as busi- Heidi Clarke ness. She attended the University of Miami, where she studied child psychology and education while working with abused children and underprivileged students in the South Florida community. Upon returning to the Caribbean, she consulted on school boards and taught part-time while running a sail charter company with her husband in Trinidad and Tobago. In addition to her work with The Sandals Foundation, Clarke is involved in a wide range of community activities and provides counseling and mentoring for troubled teenage girls who have suffered from domestic violence.

FOUNDATION BRIEF The Sandals Foundation (sandalsfoundation.org), is a 501(c)(3) nonprofit organization and was created to continue to expand upon the philanthropic work that Sandals Resorts International has undertaken. It is the culmination of nearly four decades of dedication to playing a meaningful role in the lives of the communities where Sandals and Beaches Resorts operate across the Caribbean. The Sandals Foundation funds projects in three core areas: education, community and the environment. One hundred percent of the monies contributed by the general public to The Sandals Foundation go directly to programs benefiting the Caribbean community.

Will you discuss the mission and vision behind the development of The Sandals Foundation?

Sandals had been doing work in Caribbean communities 28 years before The Sandals Foundation was even born. The Foundation allowed us to formalize our efforts and to get our conscientious consumers, our team members, our global partners, and our travel agents all involved. We felt that, with their input, we could have much greater impact in our communities.

From day one, our mission has been about empowering our Caribbean people. It’s about making the Caribbean a better place to live and to visit for our guests.

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How critical has it been to engage the employees of Sandals in the activities and efforts of The Sandals Foundation?

We recognize our team members are one of our greatest assets. They’re the reason we have one of the highest returning guest rates in the region.

They’re also our eyes and ears into our communities, and they help us to recognize where there are gaps in the community that need filling. They volunteer their time and expertise in certain areas as well as share awareness with our visitors and hotel guests who make up our largest source of donations.

Our employees have been very engaged from day one. They understand the importance of using our brand as a catalyst for change and, ultimately, to make a difference in their local communities and we have full buy in.

Will you discuss The Sandals Foundation’s work in the education arena?

Education is the driving force around everything we do, because education empowers people and provides them with opportunities.

We work with ministries of education and on the national agenda to make sure we’re all driving in the same direction.

We focus on capacity building for local institutions by working with schools to ensure that they have the necessary tools and technology.

It’s important to provide solid environments on a holistic level, so we’re looking at all aspects, from children’s diets to teacher training and the actual infrastructure.

From a company level, graduates from our programs often have the opportunity to work alongside Sandals’ employees as interns.

Additionally, we also have Sandals Corporate University, which addresses how we can take someone coming in at the ground level and let them have access to learning much more. We have many young people going through Sandals Corporate University now and climbing the ladder in management.

Will you discuss the importance of the environment to Sandals and some of the work of the Foundation around sustainability?

We always say, we don’t sell a hotel – we sell a destination. That destination is made up of the people and the beautiful environment the Caribbean has to offer. If we don’t invest in preserving and improving this at all levels through operations and

through the community, then we aren’t protecting our investment in the country and throughout the Caribbean as a whole.

The Foundation has two focuses in this area: marine protection and environmental education in communities and schools.

Jamaica alone has over 250,000 lives that depend on our fishing industry, yet we’re struggling when it comes to fish populations and with the decline of our reefs.

Addressing this requires that we have protected areas and that we work alongside ministries of agriculture and fisheries to develop ways to protect these livelihoods that are so dependent on the coastal regions.

This needs to be done hand in hand with environmental education. If we don’t make this link, especially in a region like this where there are so many other social ills, then protection won’t increase and people won’t understand how our lives intertwine and depend on the environment.

Each Sandals and Beaches also has an Environmental Health Safety Officer who works closely with resort operations and in the community.

What type of partnerships has The Sandals Foundation formed to support its efforts?

We have witnessed firsthand how partnerships have allowed us to strengthen and expand our work within the region through like-minded companies who share the same vision. Over the past 10 years, we’ve worked (and still work) with a number of incredible partners including: Sesame Workshop, Scholastic Book Fairs, Coca-Cola, and Great Shape! Inc. to name just a few.

Our partnerships range from the corporate level to partnerships with grassroots organizations who understand community needs and help us to develop and deliver our programs.

We also lean on the strength of our resorts and the valued guests who visit with us each year to benefit the communities. Our guests have been incredible partners as has the whole travel industry.

How critical has the commitment from Butch Stewart and the management team of Sandals been to the Foundation’s success?

It’s crucial. If that commitment doesn’t come from the top, then it isn’t felt throughout the company. From day one, CSR and empowering people have been part of Mr. Stewart’s vision and he, his son, Adam, who serves as Board President, and his entire team have been spreading this effort for four decades leading by example and playing an active role in lifting the region to greater heights.

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LEADERS 85

Global risk interconnections challenge business resilience strategies Exploring an intensifying global risks landscape

By Kathleen Savio, CEO of Zurich North America Zurich is proud that each year we collaborate with the World Economic Forum and Marsh & McLennan Companies to produce the annual Global Risks Report.

As a strategic partner, Zurich provides input and guidance into the strategy, scope and methodology of the report and key content areas to focus on. We also provide in-depth analysis and commentary on the risks identified by the annual survey.

By working closely with the World Economic Forum, we are able to learn firsthand about the various global risks that are keeping leaders up at night. Ultimately, we can share these findings, coupled with Zurich’s own insights, with our customers. With this report, we can help ensure that a light continues to shine on these risks. Working together, we can then find solutions.

FOR A THIRD YEAR, ENVIRONMENTAL RISKS HAVE BEEN A KEY CONCERN FORÂ LIKELIHOOD AND IMPACT OVER THE NEXT DECADE.

Source: The Global Risk Report 2019, World Economic Forum. *Survey respondents were asked to assess the likelihood and the impact of the individual global risks on a scale of 1 to 5.

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MANAGING THE RISKS OF AN

INCREASINGLY UNCERTAIN WORLD Navigating some of the most serious risks outlined in the World Economic Forum’s 2019 Global Risks Report will require organizations to become more resilient in managing potential impacts.

TOP GLOBAL RISKS BY LIKELIHOOD

TOP GLOBAL RISKS BY IMPACT

1.

Extreme weather events

1.

Weapons of mass destruction

2.

Failure of climate-change mitigation and adaptation

2.

Failure of climate-change mitigation and adaptation

3.

Major natural disasters

3.

Extreme weather events

4.

Massive incident of data fraud/theft

4.

Water crises

Source: The Global Risks Report 2019, World Economic Forum

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LEADERS LEADERS 872

Organizations must take a more holistic view of an increasingly complex global risks landscape

By Barry Franklin, Head of Risk Zurich North America The risks facing any business are always in motion – changing, transforming and often interconnecting in unexpected ways, with effects ranging from merely inconvenient to potentially catastrophic. A storm in the Pacific Ocean can disrupt a supply chain that will idle a factory in Iowa. Political instability in a developing country today could impact a corporation’s P&L statement several quarters into the future. A cyberattack striking in an instant could hinder global operations for days or weeks, and perhaps damage reputations for years.

Cataloging an increasingly complex and interconnected risk landscape is the continuing mission of the World Economic Forum’s (WEF) Global Risks Report. The findings of WEF’s Global Risks Report 2019 and past editions confirm that effective risk management requires taking interdependencies between risks into account and adopting a truly holistic business resilience perspective and approach.

In my role as Head of Risk for Zurich North America, I am responsible for ensuring adherence to Zurich’s risk policy and advising and challenging our leaders with respect to balancing business strategy and risk-taking within an agreed risk appetite. I am also responsible for promoting risk awareness throughout the organization.

Zurich’s role as a strategic partner – along with Marsh & McLennan Companies – in the production of the Global Risks Report allows us to contribute to the dialogue surrounding global risks, to help identify the things that keep our customers up at night and to share guidance that can help them mitigate those risks.

The Global Risks Report 2019 is like a crystal ball looking into the future of risk. The Global Risks Perception Survey asks hundreds of WEF stakeholders to consider a list of 30 global risks and rank them in terms of likelihood and impact over the next 10 years. Extreme weather, climate change and cyber/ data risks dominated the top 10 in both categories – although “weapons of mass destruction” secured the top spot in terms of impact.

But the Global Risks Report is much more than the results of a survey. The report also looks at the changing geopolitical landscape, the impact of workplace and societal changes, the spread of infectious diseases and a host of other topics. The report has something for everyone interested in managing risk. I’d like to highlight some of the risks that are likely to have the greatest impacts for Zurich and its customers.

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Extreme weather For anyone paying attention to the news, it should come as no surprise that “extreme weather events” have been identified as the top risk in terms of likelihood over the next 10 years, and the number three risk in terms of impact over the same time period.

Environment-related risks dominated the results of the report’s Global Risks Perception Survey, accounting for three of the top five risks by likelihood and top four by impact.

During the last two years in the United States, we’ve experienced some of the deadliest and costliest extreme weather events on record. After years of relative calm, 2017 ushered in three of the most damaging hurricanes in history – Harvey, Irma and Maria. In 2018, two more massive hurricanes made landfall in the Southeast – Florence and Michael.

While it is impossible to predict if this trend will continue, scientists say that if humans are unable to slow or reverse global warming, we can expect to experience more extremes in weather – stronger storms, more flooding, rising sea levels, droughts and wildfire seasons that extend throughout the year. The Camp Fire in Northern California in 2018 was the state’s deadliest and most destructive wildfire on record, and it may become the new norm, climate-change scientists warn.

Climate change People may forever argue about the causes of climate change, but the debate over its very existence is largely settled: The planet is warming and we are already seeing the effects.

Global warming has led to steadily rising sea levels, and the report devotes a chapter to the impact of this risk on coastal cities. Two-thirds of the world’s population is expected to live in cities by 2050, and an estimated 800 million people in more than 570 coastal cities are vulnerable to a sea level rise of 0.5 meters by 2050.

The risks of rising sea levels are often compounded by storm surges and increased rainfall intensity. In the U.S., East Coast cities including Norfolk, Va., Charleston, S.C., Baltimore and Miami have already experienced “sunny day” flooding due to rising sea levels. A study found that between 2005 and 2017, sea level rise wiped $14.1 billion off home values in New York, New Jersey, Connecticut, Florida, South Carolina, North Carolina, Virginia and Georgia.

Zurich in 2018 produced the report “Managing the impacts of climate change: risk management responses,” which provides risk management tools and outlines approaches and best practices to help businesses respond to the growing threat of climate change.

Zurich recommends developing and acting upon a climate resilience adaptation strategy, which includes the following steps: identify the broad business and strategic risks; develop a granular view of the risks involved; and develop a mitigation strategy involving insurance and resilience.

Cyber risk Another risk that has rightly garnered the attention of the global community is cyber/data. “Large-scale cyberattacks” are among the top 10 risks in terms of likelihood and impact in the Global Risks Report survey, and “massive data fraud/theft” is the number four risk by likelihood.

According to the Global Risks Report, a large majority of survey respondents expect increased risks in 2019 of cyberattacks leading to theft of money and data (82%) and disruption of operations (80%). About two-thirds of respondents expect the risks associated with fake news and identity theft to increase in 2019, while three-fifths said the same about loss of privacy to companies and governments.

Last year also saw continuing evidence that cyberattacks pose risks to critical infrastructure. In July, the U.S. government reported that Russian hackers had gained access to the control rooms of U.S. utility companies.

The U.S. business community feels particularly vulnerable to these threats, as evidenced by WEF’s report “Regional Risks for Doing Business 2018.”

WEF asked more than 12,500 business executives around the world to select – from a list of 30 global risks – “the five global risks that you believe to be of most concern for doing business in your country ©2019 Zurich American Insurance Company. within the next 10 years.” Cyberattacks were the top All rights reserved. risk in the U.S.; the number three risk was data fraud or theft.

What’s on the horizon?

The interconnected and systemic nature of global risks make it vitally important for businesses to anticipate triggers, trends and scenarios to prepare for the possible consequences of those risks, determining the best and most holistic response.

For businesses to reach their full potential in an increasingly interconnected risk environment, they must strive to see a bigger picture. They must work to more fully understand the risks and opportunities they face within proper context. At Zurich, we know that embracing new ideas and thinking deeper, wider and further can help inspire the confidence needed to help organizations reach their potential and help fashion effective resilience strategies. Because as challenging as the risks we face today may appear, the interconnections and potential severity of the risks we may face tomorrow could rewrite the book on business resilience. ©2019 Zurich American Insurance Company. All rights reserved.

VOLUME 42,LEADERS NUMBER 2

THE MORE RISKS YOU SEE, THE SAFER YOUR BUSINESS CAN BE.

Be more proactive about protecting the business you love by expanding your risk horizons. Zurich’s risk profiling is a structured approach that helps identify, prioritize and mitigate risk. We can help you manage your risk rather than just insure against it, so you can focus more on profit and less on risk.

VIEW OUR RISK PROFILING VIDEO AT zurichna.com/rp2

ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE THEIR BUSINESS.

This is intended as a general description of certain types of services available to qualified customers through the member companies of Zurich North America (Zurich), including The Zurich Services Corporation. Zurich 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.You are in the best position to understand your business and your organization and to take steps to minimize risk, and we wish to assist you by providing the information and tools to help you assess your changing risk environment. ©2016 The Zurich Services Corporation.

ARIZONA

Opportunity for All An Interview with The Honorable Doug Ducey, Governor of Arizona EDITORS’ NOTE Governor Doug the course and pick the people who Ducey was elected in 2014 as could help us get there. Finally, we the 23rd Gover nor of the State had to communicate, communicate, of Arizona and was reelected in communicate.

2018. He has applied his experiIt wasn’t that the budget was so ence from a successful career in difficult to balance; it was that it was business, which included being so politically unpopular to balance it. the CEO of Cold Stone Creamery, As someone who had spent 30 to bring much-needed change to years in the private sector and had Arizona government. Upon taking lived through a few downturns, I office, the Governor inherited a $1 knew that each time I looked back, I billion budget deficit and balanced thought I should have acted quicker the budget in his first year without The Hon. Doug Ducey and dug deeper. I wasn’t going to let raising taxes. Governor Ducey is that experience be lost on the biggest committed to investing in public education and job and responsibility of my life. I immediately in his first year, he led a historic and biparti- set out to make the right decisions and tighten san effort to invest $3.5 billion into K-12 schools the belt inside state government to get the budand also championed the passage of legislation get in the black. to increase teacher pay by 20 percent by 2020.

It was difficult because many legislators Governor Ducey has cut regulations and sim- knew it would be unpopular and that they were plified taxes every year to stimulate job creation going to have to vote for an unpopular budget and economic growth. He has also prioritized pub- that actually reduced the size of government lic safety, creating the Arizona Border Strike and the level of spending, and that had never Force, a statewide, multi-agency effort to com- been done voluntarily. bat border-related crime. In his second term, I wanted them to be able to go out into Governor Ducey remains committed to making their communities and explain it so I told them Arizona a land of “Opportunity for All” and has that they could blame me; I was going to own pledged to work every day to make that vision this budget – it’s going to be mine and, a year a reality. Governor Ducey was born in Toledo, from now, our economy is going to be better Ohio. He moved to Arizona in 1982 to attend and we’re going to be able to heal some of Arizona State University, where he graduated these areas where we have had to make tough with a Bachelor of Science in Finance. decisions.

The good news is the economy did get betAfter a successful business career, what ter and now it’s booming. We have gone from interested you in running for public office? a $1 billion budget deficit to a $1 billion budget I wanted to make a difference and I wanted surplus and, at the end of this year, we will have to give back to a state that had given so much to a $1 billion balance in our rainy-day fund. me. I also realized that the only thing that grew This is financially responsible and it’s faster than Cold Stone Creamery was the state something every household and small business of Arizona, and I couldn’t believe that it was out owner can understand. of money and insolvent in 2009.

Will you discuss your efforts to transI thought that someone with a fresh per- form K-12 education? spective and a business background could make There is no better investment that a gova difference, and that is why I threw my hat in ernor can make than in K-12 education that the ring and got involved in public life. focuses on results and outcomes inside the When you first took office, the state classroom. was in a challenging position and you Today, in Arizona, we have more jobs inherited a billion-dollar budget deficit. available than people to fill them, so if we What were the keys to changing the mind- can have a virtuous cycle of children getting set within the government and being able an education, leaving schools with skills and to drive change? knowledge, and then matriculating to univerThe real challenge of leadership is making sity, community college, the military, or beginthe difficult decisions and setting the vision for ning a career, that will certainly enhance the where the state can go. Then we had to chart quality of life for our state and cities.

90 LEADERS

We want to make sure we’re focusing not only on revenues and resources, but that a real exclamation point is put on the results. What does a child know at the completion of 12 years of education? We look at a number of points along the way – metrics like third-grade reading and eighth-grade math, graduation rates and chronic absenteeism, as these are metrics that can help measure the success of the system.

One thing that has been lost in our education system is that, when we were in school, we were exposed to shop. That is where many good people learned their passion and turned it into a purpose that resulted in a good paycheck.

Over the past few decades, we have developed a mentality that everyone should go to college, get a bachelor’s degree, and pursue a white-collar career. For many people, this isn’t exciting and is not something they will be happy doing, so we have lost them to the system.

Exposing young people in 7th, 8th, and 9th grades to the multitude of wonderful careers that are available is important.

Today, it’s not called shop – it’s called career and technical education. The students have fun in these classes and learn to apply math, reading and computer coding to what they’re doing on a day-to-day basis. These are the best educated kids coming out of our classrooms and, not only can they go into a skilled trade immediately upon graduation, but they turn out to be some of our best engineering students going to the finest schools.

Has it been critical for you to focus on teacher pay in order to ensure that you are attracting and retaining the best talent?

Teachers, in addition to parents, make the biggest difference. In my State of the State address in my third year, I listed out the teachers that made a difference in my life.

Governors across the country are experiencing a teacher shortage. Part of that is the people who came out of college 40 years ago with teaching as a mission and have been in the classrooms educating us for four decades have now done their duty and are retiring.

I want to provide an attractive career path for young people to go into public education, so we have committed a 20 percent pay increase for our teachers by school year 2020. We have also created the Arizona Teachers Academy where, if young people attending a university today will commit four years to public education in Arizona, they can graduate debt free with the aid of a scholarship.

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I use the example of Sandra Day O’Connor as the most honorable of all Arizonans. She was the first female supreme court justice, there is a law school named after her, she taught law, there is a federal court named after her right down the street from our state capitol building – yet if upon retirement in 2006 she had returned to Arizona and wanted to teach civics at a public high school, she would have been deemed unable by the system.

We want those principals and superintendents to take advantage of the amount of talent we have in the state of Arizona. When someone wants to give back and get in front of a classroom, we need to bring them in and not send them off for additional schooling when they have all this life experience that can make a difference in a young person’s life.

You have also prioritized public safety and created the Arizona Border Strike Force.

Have you been happy with the impact that this has made and will you discuss your focus on public safety?

Public safety is the top priority of a governor – it’s something I wake up every day thinking about. I look at the news differently and listen to phone calls differently because of all the concerns around public safety.

Four years ago, when I came into office, Washington, D.C. wasn’t listening – they were unconcerned about Arizona and other border states. I remember my first month as governor we hosted the Super Bowl in Arizona. It was a smashing success from every angle.

After the Super Bowl, I met with then Secretary of Homeland Security, Jeh Johnson.

I suggested that, if we enhanced the cooperation between the federal government, our state law enforcement assets and local law enforcement leaders, and applied those joint resources to border security, what a difference we could make.

Secretary Johnson liked the idea and said he would take it back to Washington, D.C., but we didn’t hear back.

We created the Border Strike Force because Washington would not address this issue.

The Strike Force is led by our leader of the Department of Public Safety, Frank Milstead.

He partners with our county sheriffs and local law enforcement in our border areas to make sure we’re focusing on the bad guys – the drug cartels, the human traffickers, the child sex traffickers.

With the Trump Administration, we now have a partner in the federal government – Kirstjen Nielsen. The Department of Homeland Security has been fantastic.

We work with customs and border patrol and border agents to make sure we have the best possible communication among all law enforcement assets in the state of Arizona.

You have established a goal of making Arizona a land of opportunity for all. What are the keys to accomplishing this and how concerned are you about the divide today when it comes to opportunity and income inequality?

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Part of the reason I talk so much about being a governor for all the people and focus on that vision of opportunity for all is because this is something we can be successful at and it’s a way to bring people together.

For example, we have a bill we are working on with our state legislature that would allow universal licensing for anyone who comes to Arizona. Someone doesn’t lose their skills because they pack up a truck in Chicago and come to Arizona. Yet, we have our own government boards and commissions that will tell that individual that they can’t work here because they have not paid the piper.

To me, issues such as this are nonpartisan and provide opportunities for people to enter the workforce and begin climbing the economic ladder. It’s a function of leadership to set that vision, bring people together and chart the course.

I am concerned about income inequality, so I want to see people have mobility and be able to climb the economic ladder. I know the people at the top are doing well and they’re going to continue to do well, but rather than seeing the haves and have nots, I prefer to see it as the haves and the soon to have mores. This is a model that allows the economy and country to thrive and states to compete.

There are other ways we can look at tax policy and regulatory policy that allows people to get involved in the economy and the workforce and create a better future for them and their families.

Will you discuss your efforts around building a strong public/private partnership in Arizona?

The business community is critical – it’s a community I came from, so I’m often more comfortable talking in a room of business leaders than I am in a room of politicians. I know what motivates and incentivizes business leaders, but I don’t always understand it with other politicians.

I look at the large communities like the business community, which is not monolithic; like the education community, and the faithbased community; and there are other constituencies like those in agriculture, our veterans and tribal communities.

When I get into settings where there can be a free flow of conversation with these communities, I become smarter and more knowledgeable as to how our team is doing and communicating.

That is true whether I’m at a sporting event or walking the aisles of grocery stores.

I’ll often pick something up for my wife on the way home and find that citizens will tell me what is on their minds if I take the time to listen.

What is the business climate in Arizona today?

Arizona is open for business, and business leaders across the country know that.

Arizona, by any measure, is winning. We are the fourth fastest growing state in the country; Maricopa County is the fastest growing county in the nation; and we have the fifth fastest growing city in the country.

Not only are we growing from a population perspective, but also from a personal income perspective, so not only are we bringing people here, the people here are doing better.

I’m the chief executive of the government, but I’m also the chief spokesperson and salesperson for the state of Arizona, and that is a role I have really embraced. We weren’t in this position four years ago.

Fast forward to today and we have the largest budget surplus in a decade, the education lawsuits are behind us, we’re investing in K-12 education, and our economy is booming.

It’s my role to take full advantage of those opportunities for the citizens of Arizona.

When you look at the success you’ve had, are you able to take moments to reflect and celebrate or is it always about what is next?

In this business – the business of leadership in government – the best leaders are thinking about what is next – they’re putting an agenda out there that is action-oriented and staying on offense.

I have often said to my team that, in the private sector, when we had a victory, we would have a closing dinner; in this business, we’re on to what’s next.

There is a lot of satisfaction in the success we see the state having, but it isn’t the state government that rebuilt Arizona; it’s business leaders who rebuilt their businesses and employees who worked hard and plowed through the downturn. Now things are booming and, as leaders in government, we need to make sure we stay out of their way and provide an environment where it’s the best possible place in which to live, work and play.

Governors don’t create jobs, and I get a real kick at election time, hearing all the politicians that are talking about the jobs they’re going to create. What they do is create an environment in which jobs can be created.

Arizona and our team, along with the business leaders and education community, is creating the best possible place in the nation for people to live and build a future and we will continue to do that for the next four years.

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ATLANTA

One Atlanta An Interview with The Honorable Keisha Lance Bottoms, Mayor of Atlanta EDITORS’ NOTE Keisha Lance Was it important to engage the Bottoms is the 60th Mayor of Atlanta. business community and the priMayor Bottoms strives to continue vate sector in this effort?

Atlanta’s progress as a global busiThe public/private partnerships ness hub and the nation’s cradle we have in Atlanta should probably for civil and human rights. A lifebe the envy of the nation. According to long public servant, Mayor Bottoms the Metro Atlanta Chamber, Fortune is the only Mayor in Atlanta’s has moved away from rankings and history to have been elected to all now says Atlanta has one of the highthree branches of government, servest saturations of Fortune 500s coming as a judge and City Council pared to other U.S. cities. To see our member before being sworn in as CEOs camping out on the West Side of Mayor. Only the second woman The Hon. Keisha Bottoms Atlanta for the opening of a Chick-fil-A to be elected to Atlanta’s highest because of what it represents for the office, she was designated a “Woman to Watch community is symbolic of the type of buy-in we in 2018” by Viacom’s BET Network. Leading have in our city. with a progressive agenda focused on equity Much of what we have been able to accomand affordable housing, she serves as Chair plish has been because of those living on the of the Community Development and Housing ground in our communities working with our Committee for the United States Conference of business partners and leading the transformaMayors. Mayor Bottoms received her undergrad- tion efforts and bringing joint resources to the uate degree from Florida A&M University and table. earned her Juris Doctorate from Georgia State Atlanta has appointed its first ever Chief University College of Law. Housing Officer to focus on affordability and how we address gentrification in a smart way.

What were your key priorities when you Even this position is being funded by one of our became Mayor of Atlanta and have you been nonprofit partners. happy with the impact that you have made It works out well for our city and, most in those areas? importantly, it matters to our corporate leaders The number one driver for me when I ran and is meaningful to our communities. for city council in 2009 was equity, but I don’t Will you discuss how Atlanta is know that I even knew to call it that – it was focusing on improving education and just the notion of giving people an opportunity job training and what is the key to drivto succeed. ing change when it comes to addressI have seen that when people have oppor- ing the challenges within the education tunities, the resources they need to take advan- system? tage of those opportunities, and the backing of The key is us finding our sweet spot where solid leadership, it makes a difference. I knew we can make a difference because the city govthat this is what I wanted for my community. ernment doesn’t control the public schools in The tagline for our administration is One Atlanta.

Atlanta. We have created a One Atlanta office In this effort, I believe that we either pay that promotes equity, diversity and inclusion. on the front end or on the back end. When This office addresses all of the things we saw we don’t invest in our young people, we see on the campaign trail that face our community crime numbers increase, so it behooves us all but don’t necessarily fit neatly into an opera- to care about what opportunities are being tional box. created for young people in their formative It is fascinating that even our water com- years. missioner is speaking through the lens of equity Going back to the public/private partwhen discussing water treatment plants and nership, I have an advisory board comprised how we can create resources in underserved of several CEOs which has been working for communities. the past year to create a vocational trainI’m glad to say that after a year of not just ing program in conjunction with our Atlanta talking about it, but doing it, we’re seeing a dif- technical college that is going to provide ference in our community. meaningful job training.

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The skyline of Atlanta

When Delta Airlines says they will need 10,000 mechanics in the next five years, they want to be able to find those mechanics in Atlanta, which means they want to create a pathway for training those mechanics in Atlanta.

That is happening through this program.

Our fire department has just partnered with one of our high schools. Beginning in ninth grade, they are starting to train young people so that, when they graduate from high school, they are trained and ready for a job as a firefighter in our city.

The other space where I think there is an enormous opportunity for us is the early childhood education space and looking at how we can be good partners to make sure that kids are school-ready.

Will you highlight the commitment to transparency for your administration?

If we have to hide something, then we probably should not be doing it.

There is an inherent distrust in government and we are working to change this. It may never be perfect because we’re human, but we need to do all we can to reassure people.

We created an open checkbook portal so people can go online from their smartphones or from their laptops and see where their money is being spent.

The best example of how well this is working is our local newspaper is about to do a story based on questions they have about some of the information they found on the open checkbook.

That is what it’s all about. People can access and ask the necessary questions.

To the extent that we haven’t done things perfectly, it gives us a chance to address those issues when they are brought to our attention by the public which now has a way to pay attention.

In a short period, your administration has made a strong impact for the city. Are you able to take moments to celebrate the wins or is it always about what is next?

Unfortunately, my personality is always about what we can do better, but I have reminded my team to celebrate wins.

When it comes to what we have accomplished over a year, it blows me away. It’s important for our team that they know that we’re out here doing things that people across the country are looking to emulate.

As a leader, though, I keep thinking about what we can do next and better and keep raising the bar.

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VOLUME 42, NUMBER 2

ATLANTA

Making Life’s Everyday Moments More Enjoyable An Interview with Helen Smith Price, Vice President, Global Community Affairs, The Coca-Cola Company and President, The Coca-Cola Foundation EDITORS’ NOTE Helen Smith Price is a 25-year veteran of The Coca-Cola Company and has served as executive director of The Coca-Cola Foundation since 2001. In that role, she leads the global strategy, governance and regulatory compliance for domestic and international philanthropy. The Foundation gave back $89.3 million in 2018 to enhance the environment, empower women and enrich the wellbeing of people and communities. Prior to joining Coca-Cola, Price held roles Helen Smith Price in audit, tax, accounting research and financial management at BellSouth Corporation.

She began her professional career as an auditor and tax accountant with Arthur Anderson & Co. She was licensed as a certified public accountant in the state of Georgia and earned a Bachelor of Science degree in Chemistry from Spelman College and a Master of Business Administration degree from Clark Atlanta University. Price currently serves on the board of Coca-Cola Bottling Company UNITED, Spelman College Board of Trustees, the board of Councilors of The Carter Center, and a number of community boards, including Children’s Healthcare of Atlanta Foundation, the Woodruff Arts Center’s Alliance Theatre, the Westside Future Fund, and the Corporate Contributions Council of The Conference Board. She is also a member of the Rotary Club of Atlanta, Azalea City Chapter of the Links Incorporated, and the Atlanta Alumnae Chapter of Delta Sigma Theta Sorority, Inc. COMPANY BRIEF The Coca-Cola Company (cocacola.com) is a total beverage company, offering over 500 brands in more than 200 countries and territories. In addition to the company’s Coca-Cola brands, its portfolio includes some of the world’s most valuable beverage brands, such as AdeS soy-based beverages, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest Tea, Innocent smoothies and juices, Minute Maid juices, Powerade sports drinks, Simply juices, smartwater, Sprite, vitaminwater and ZICO coconut water. The Coca-Cola Company is constantly transforming its portfolio, from reducing sugar in its drinks to bringing innovative new products to market. The company also works to reduce its environmental impact by replenishing water and promoting recycling. With its bottling partners, The Coca-Cola Company employs more than 700,000 people, helping bring economic opportunity to local communities worldwide.

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The Coca-Cola Foundation was established in the U.S. in 1984 as a registered 501(c)(3) charitable organization that has since given back more than $1 billion to enhance the sustainability of local communities worldwide. Since its inception, the Foundation has supported learning inside and outside the classroom. In 2007, the Foundation broadened its support to include global water stewardship programs, fitness and nutrition efforts and community recycling programs. Today, its strategies align with the Company’s sustainability platform and include women’s empowerment and entrepreneurship.

Will you discuss Coca-Cola’s purpose and how deeply engrained purpose is within the culture of the company?

The Coca-Cola Company’s purpose starts with bringing people the brands and beverages that make life’s everyday moments more enjoyable. That purpose is underpinned by our belief in doing business the right way – not just the easy way – so we can create shared opportunity for our communities, our customers, our associates and our shareholders.

Coca-Cola is not only a global company, it is also a network of locally-owned businesses with operations in more than 200 countries. Our company’s vast system of bottling partners creates deep, local relationships that make a meaningful difference in communities everywhere.

Ultimately, we know our success depends on the success of every community we touch, which is why we are committed to following our values and working toward solutions that benefit us all.

What do you see as Coca-Cola’s responsibility to the communities it serves?

Responding to community needs has always been part of our DNA. We do this through The CocaCola Foundation, the independent philanthropic arm of The Coca-Cola Company, as well as through contributions and volunteerism from our company’s local business units and bottling partners.

Around the world, The Coca-Cola Foundation supports organizations that change lives and strengthen communities by helping to create educational opportunities, economically empower women, restore local watersheds, improve recycling, provide supplies to victims of natural and manmade disasters, and so much more.

Coca-Cola has a long and storied history in Atlanta. Will you discuss this relationship?

The world’s first glass of Coca-Cola was poured at “Jacob’s Pharmacy” on Marietta Street in 1886.

Ever since that day, Coca-Cola has been proud to contribute to our hometown’s growth and success.

Coca-Cola’s culture of giving back has been continuously reinforced over the past century by former Coca-Cola leaders like Asa Candler, Robert Woodruff and Roberto Goizueta, who are known for their important roles in developing Atlanta real estate, helping to advance civil rights issues, and making significant charitable contributions to city hallmarks like Emory University, the Atlanta History Center and the Woodruff Arts Center.

This tradition of giving back continues today through our partnerships with local organizations that work to strengthen the city and support its residents, like the Atlanta Police Foundation and the Westside Future Fund, among many others.

Will you highlight the company’s philanthropic involvement in the city?

Much of the company’s philanthropic commitment is expressed through financial support it gives to The Coca-Cola Foundation which, in turn, distributes that money in charitable grants within certain giving priorities including education, the economic empowerment of women, and sustainability.

Since The Coca-Cola Foundation’s inception 30 years ago, more than $174 million has been extended in charitable grants in Atlanta. The Foundation has worked with nearly 400 organizations in Atlanta, including the Atlanta Police Foundation, the Westside Future Fund, the Atlanta Women’s Foundation, the Atlanta Community Food Bank, Special Olympics Georgia, and many others.

How critical is a strong public/private partnership in Atlanta?

Strong public/private partnerships are critically important to the city’s success. No one leader or organization can create sustainable change alone, and we are proud to work with a wide range of partners to help make Atlanta a stronger, safer, cleaner and more prosperous city for all.

Coca-Cola places diversity and inclusion as a key value of the company. How critical is building a diverse and inclusive workforce to the continued success and leadership of Coca-Cola?

As both a global and local business, diversity and inclusion are at the heart of The Coca-Cola Company’s values and are integral to our success.

For us, creating a diverse and inclusive workforce is not only the right thing to do – it is a strategic priority that fosters greater creativity, innovation and connection to the communities we serve.

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ATLANTA

Being True to Atlanta An Interview with Thad Sheely, Chief Operating Officer, Atlanta Hawks and State Farm Arena and Brett Stefansson, Executive Vice President and General Manager, State Farm Arena EDITORS’ NOTE Thad Sheely oversees all aspects of team and arena business operations and real estate development. He managed the operations and planning for the re-imagination of State Farm Arena which was upgraded with almost $200M of improvements. Sheely was also the point person for the design and construction of the team’s 90,000 square-foot new practice facility, the Emory Sports Medicine Complex.

The complex combines sports, medicine and science with three industry-leading tenants; the Atlanta Hawks, Emory Orthopedics and the Peak Performance Project (P3), the leader in athlete training and analysis. This partnership is designed to provide world-class medical and training to the Hawks and the Atlanta community. Sheely also oversees business operations for the team including accounting and finance, analytics, IT and human resources. Joining the Atlanta Hawks and State Farm Arena in 2015 with over 20 years of sports and real estate experience, his previous projects included the development of Hudson Yards for the Related Companies, a 28-acre mixed-use property on Manhattan’s West Side. Prior to Hudson Yards, he led stadium development and financing for major sports facilities including MetLife Stadium for the New York Jets and Giants, and American Airlines Arena for the Miami Heat. His professional contributions have distinguished him in the industry as SportsBusiness Journal selected him for their Forty under 40 Award in 2010, and Billboard Magazine recognized MetLife Stadium, while under his direction, as the #1 top-grossing stadium in the world in 2010 and 2011. Sheely holds an M.B.A. from Stanford Graduate School of Business and an undergraduate degree in urban studies from Columbia College.

Brett Stefansson has more than 20 years of experience in the sports industry in professional (NBA, WNBA and NHL) and minor league sports (IHL, indoor soccer and arena football). In his career, he has worked more than 5,000 events.

Prior to joining the Hawks, he served as Vice President and General Manager of the AT&T Center (San Antonio, Texas) which is home to the San Antonio Spurs (NBA), San Antonio Rampage (AHL), San Antonio Stars (WNBA), and the San Antonio Stock Show & Rodeo.

Stefansson’s experience there concluded with a $110-million renovation of the AT&T Center.

During his leadership, he also oversaw other facilities including the Spurs practice facility (now known as Medistar Training Facility) and 94 LEADERS

Thad Sheely

Brett Stefansson

Toyota Field, (now known as the home of San Antonio FC of the USL). Earlier in his career, he served as the General Manager of BB&T Center located in Sunrise, Florida. This 19,000-seat arena earned consistent top-15 rankings in Pollstar throughout his tenure. Stefansson spent a combined 15 years of his career at this venue in South Florida. He started his career in sports as the event coordinator at The Summit in Houston, Texas – then, the home of the Rockets (NBA), Comets (WNBA), Aer os (AHL) and Thunderbears (AFL). Stefansson received his master’s and bachelor’s degrees from Eastern Illinois University.

ORGANIZATION BRIEF Home to the NBA’s Atlanta Hawks Basketball Club, State Farm Arena (statefarmarena.com) opened its doors in October 2018 following the second-largest renovation in NBA history. Inspired by the fans, State Farm Arena is a next-generation venue focused on experience, service and entertainment. With the NBA’s third-largest center-hung scoreboard and an immersive video experience, fan-friendly food pricing and premium restaurant options, Topgolf Swing Suites, Killer Mike’s S.W.A.G. Shop (a four-chair barber shop) and celebrity-inspired spaces accessible to every fan, the downtown Atlanta arena stakes its claim as the city’s best sports and live entertainment venue.

Consistently ranked among the top 10 concert and event venues in the world by Pollstar, State Farm Arena hosts approximately 200 events and nearly 2 million guests annually.

The Atlanta Hawks (hawks.com) is an American professional basketball team based in Atlanta, Georgia. The Hawks compete in the National Basketball Association (NBA) as a member of the league’s Eastern Conference Southeast Division. The team plays its home games at State Farm Arena. The Hawks have been a fixture of Atlanta since the team moved from Milwaukee in 1968.

The exterior of Atlanta’s State Farm Arena VOLUME 42, NUMBER 2

Will you discuss your roles with the Atlanta Hawks and State Farm Arena?

Stefansson: I am the Executive Vice President and General Manager and I’ve been with the organization for two-and-a-half years and in sports entertainment for more than 20 years on both the facility and team side.

The day-to-day focus for me is making sure we are providing the best service to fans coming into the building as well as to our tenants, the Hawks, and to local promoters for concerts and shows.

We want everyone that enters our doors to have the ultimate in-arena experience.

That is managed through several different entities: operations, front of house, guest services, the food and beverage program, security, and managing all of our content in the form of which shows we’re delivering to the city of Atlanta.

Sheely: I have been the Chief Operating Officer here for about three years. When Principal Owner Tony Ressler bought the team, he wanted to create a world-class organization.

My role is overseeing that transformation, working closely with our CEO, Steve Koonin, on day-to-day operations and leading our major real estate projects.

On the basketball side, are you happy with the product that the Hawks provide to its fans and the community?

Sheely: From a fan perspective, the product is basically viewed in two pieces: one is wins and losses – are we winning or losing as we compete for a championship, which is basically the only reason we got into this game. That metric is fickle. If there are 30 teams in the NBA, by that metric, 29 are losers every year. We’re in the losing business whether we like it or not.

The other part of the product is the experience of coming to a game and connecting with the brand. NBA brands are big, but they are sometimes small businesses in the grand scheme of things, at least in relation to the size and scale and scope of the brand.

The year the new ownership came onboard, the Hawks won 60 games and its coach won Coach of the Year, but they did it by putting together a team comprised of second- and third-time contract players in Atlanta; their next contracts would be second or third contracts and, if they were successful, they were going to be super successful but also aging. That is not a great combination.

Basketball leaders decided that, in order to get better, we had to acquire assets to build for the long-term success of the team. It was really difficult to rebuild with the tenured contract players we had at that time, so they developed a new strategy for building the brand.

Will you discuss what you hoped to accomplish with the reimagining of State Farm Arena and have you achieved this goal?

Sheely: One of the key factors of the reimagination was transformation, although it’s still a renovation, and that was critical because of the scope of the renovation. This was one of the reasons behind its success.

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A view of the court at State Farm Arena

We looked at what it would cost to build a new arena in downtown Atlanta and the contractors developed these models and pricing formulas that added up to about $550 million.

When we looked at the price of renovating each portion – the foundation, the structure, the roof, the curtain wall and the mechanical systems – it came to around $350 million.

That left about $200 million for everything that the fan touches – all the fun stuff that drives the fan experience and the revenue opportunities in the building. That is really what we had to spend.

We rebuilt the arena from the inside out. We didn’t change any of the exterior of the building, but we were able to add 100,000 square feet on a 650,000-square-foot building to make the building more customer-centric and customer-focused.

What was our mission and vision? It was two things: the first was about being “True to Atlanta” and this fan base.

Steve Koonin, our CEO, has built unbelievable brands at Turner and Coca-Cola. When we thought about what our brand attributes are, those relating to a local sports team being true to the local market are obvious, but Atlanta is such a unique and growing city and being “True to Atlanta” really means something special because there is a pride in being here.

We felt that, if the arena can be a reflection of the city it calls home, it develops an even stronger connection to the city.

As a result, that pointed to some of the programmatic elements that we added to the building from the food venues to a barbershop to a social club.

We put in two Topgolf Swing Suites – not only is Topgolf here but Georgia is the home of the PGA and the Masters.

The other test was, if we took the building out of the city of Atlanta, would the building make

sense? We want it to be so identified by the city that there is a real connection between the two and we think that, if we do that, we built a successful building that feels as if it is a part of the city we’re in.

It’s a home-court advantage taken to another level.

Stefansson: Adding to the identity of the building, I always say, yes, we underwent a physical transformation of the building, but it was more than that. It was an organizational transition into operational excellence. Creating a building that was going to be successful at many different levels was our goal.

We also have to provide world-class guest services and food and beverage. We had to elevate the level of experience of all of those different elements that fans want when they go out for a great night.

It was an organization-wide focus on how to provide a great night out and enhance every component to make sure we hit all the touch points.

How important is it to have a hospitality culture to enhance the interaction of your employees with the guest?

Stefansson: I will start with two of the team members we recently brought onboard to help with this transformation.

It starts with our Vice President, Guest Experience, David Garcia, and he comes with a background from Amazon and Disney – two of the leading companies internationally in hospitality and service. He came in with a different vantage point from someone in sports.

Then we added Geoffrey Stiles, who is our Vice President, Facilities and Building Operations.

He came from Marriott, which has a really rich culture, and he also brings in a different mindset.

The employee experience is also helping to shore up how we’re going to become great.

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Creating a great back-of-house employee experience is important. We want our employees to know that we care about them. When they’re interacting with guests, that translates to the guest experience in a positive way.

We have worked hard on recruiting A-level talent and have raised the bar relative to our pay rates.

We want to make sure we get the best employees for the various jobs we have available.

We spend a lot of time not just recruiting, but training them as well. We have developed an important on-boarding and training process for our part-time staff and full-time staff. It’s about starting the culture early on in the process. Successful teams have great cultures.

That is no different than the business side of things as we have to create great teams to create success.

Will you discuss your success in attracting top concerts and other types of A-level programming to the venue?

Stefansson: Atlanta’s geographical location in the Southeast is a primary driver for tours as they travel across the country.

The experience entertainers have when they’re in the building is critical, so building a great back-of-house experience is just as important as the front-of-house experience.

We made significant investments to enhancing the building as part of the transformation, and we have improved things like the sound quality dramatically.

We have done a lot of things that, to the normal eye, fans won’t recognize but that are important elements to touring acts and shows to make their lives much easier when they’re in the building.

We are constantly trying to drive a variety of talent and a variety of programming through the arena from Country to Latin to Hip-Hop to Rock.

The city is so diverse, and there are so many great opportunities to reach a diverse audience here.

Sheely: Atlanta, over the past 10 years, is probably number three overall in the rankings for attendees at concerts. It’s a great concert town.

We’re always thinking about ways to make the experience better for concerts, not only for artists, but for the fans. We think we have been able to do that and it’s a real competitive advantage for us in this marketplace.

How did you approach the food and beverage offerings at the arena?

Sheely: We take food and beverage seriously.

Food is really important.

Before we started the renovation, we did a survey and talked to our fans and there were a few things that had the biggest gap between expectation and reality: one of them was WiFi and network connectivity. These buildings are so important for fans to be able to come in and then connect and propagate their digital lives, be it via Instagram, Facebook, or Twitter.

The second issue was food and beverage, and comments didn’t just address the quality, the variety, or expectation. Our offerings were compromised for a lot of reasons. Our second biggest line item in the renovation after technology was the kitchen equipment.

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The further that food has to travel in an arena, the worse that it tastes, so we wanted to make sure that our kitchens were adjacent to all the areas where we were serving food and that we were doing live prep for the cooking in lots of areas to make it more interactive.

This is an important part of the social experience that we’re trying to create. We look at food halls and the rise of celebrity chefs and all of the current trends and recognize that food is such a critical component to our lives today, and that should not stop when someone goes to an arena.

Rather than go to a hotel or an institutional setting to bring in a chef, we mined what is a great food scene in Atlanta and pulled Joe Schafer, Executive Chef of Bacchanalia, which is probably one of the longest-running and highest-rated restaurants in Atlanta.

Chef Joe brings a completely different perspective and, through his leadership, we have been able to connect to a bunch of great local food talents. These aren’t just the folks that everyone knows and it’s not based on the sponsored dollars that we can get; it’s also the up-and-coming food vendors and the chefs that have now become some of the favorites throughout our building.

For instance, barbecue and the south go together, and Atlanta represents all different kinds of barbecue. One of the most decorated barbecue chefs (Bryan Furman of B’s Cracklin’ Barbecue) in the south relocated to Atlanta where he was setting up shop, and we connected to him through some contacts, and now, we have his barbecue in the arena. More people probably know him from the arena than from his restaurant because his restaurant is small and just got going.

To partner with someone and pick a winner before he was highly decorated is great.

Stefansson: We reached out to Old Lady Gang, who was started by Kandi Burruss, a former singer, who has a great local shop here with great southern comfort food that comes from a series of different recipes that her mom and her two aunts have developed over the years. They have been great partners and have blown our socks off with what they have been able to deliver. We have great quality and great variety inside the arena.

Going out on a Friday or Saturday means drinks and food and the experience and, for us, that is a concert or a basketball game. We wanted to make sure that we focused on maximizing everything we could to enhance that experience.

Speed of service was a big focus for us – getting people through the lines quickly. We took soda off the concession stand line to help with speed of service and offer free refills for fans.

We worked to get the distribution right on alcohol and food – we sell 50/50 at a Hawks game and we’re about 75/25 in favor of alcohol at concerts. We wanted to make sure that the stands in the arena could convert to bars so we could meet that need and demand.

We have also done a lot on the analytics side to analyze what people want when they come into the venue. We want to ensure we offer a variety of local and other great quality food items that Chef Joe has developed, as well as fan-friendly items for

folks who may just want a hot dog, a beer, and some popcorn and don’t want to spend a lot of money on that. We have 12 items under $5.

We have created an opportunity for fans at all levels to come in and have a great night on the food side.

How important has it been to ensure State Farm Arena has an impact on the community in Atlanta?

Sheely: It’s really important to us. Many team owners recognize that they aren’t just owners, but are stewards of a community asset.

There have been a number of big projects we have done around the city. In 2015, we committed to building 25 basketball courts throughout the city by 2020. We just unveiled our 23rd court in partnership with State Farm and UPS. We’re adding programs for everything from after-school activities to youth camps to partnering with Vision To Learn who provides free eye exams and free eyeglasses to students in low-income communities.

Changing kids’ lives through that direct connection is really valuable, and we use the basketball courts as a way to do that.

In terms of just job creation, we have employees that come from all over Atlanta to fill our great part-time jobs. There are more than 1,000 part-time employees who are part of the State Farm Arena family and, with our focus on creating a great employee experience, they are an important part of delivering a great fan experience to all of our guests.

Have you had moments to appreciate and celebrate what the arena has become or are you always looking ahead?

Stefansson: We’re always looking at what is next, but it’s important that we take a break through this process and celebrate some wins.

We did that when we finished construction, as well as throughout various phases of construction.

Recognizing folks for their efforts is an important part of building a good culture.

As far as the overall vision, I’ve been blown away from the experience. We had an incredible design team on this project that has exceeded my expectations.

We have a product that not just the NBA but facilities around the world are going to want to see so they can understand what we have done here, not just from a physical perspective, but also with the operational components.

Looking at the recent surveys we get from our season ticket holders, our scores are blowing scores from last year out of the water.

Sheely: Brett really led the design and construction team and process, and without exception, everyone who has been involved in that has come away feeling this might be the proudest project they have ever been a part of.

We held a closing dinner for the design and construction team, which normally doesn’t happen. They were all blown away and felt that they were appreciated for having been able to create something special here because they were given the challenge, the opportunity, and leadership by Brett.

That speaks volumes.

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VOLUME 42, NUMBER 2

ATLANTA

Team Depot An Interview with Shannon Gerber, Executive Director, The Home Depot Foundation EDITORS’ NOTE Shannon Gerber leads The Home Depot’s philanthropic strategy, volunteer efforts and The Homer Fund. Prior to joining The Home Depot Foundation, she spent 13 years with The Home Depot in events management. Most recently, she served as the Senior Director of events management where she led large-scale events for the company, as well as The Home Depot Foundation’s fundraising events. In this role, Gerber helped Shannon Gerber raise millions of dollars to further the Foundation’s work. Previously, Gerber worked with The Ritz-Carlton Hotel Company in positions of increasing responsibility in events management and has served on the advisory board of Make-A-Wish Georgia and is an active volunteer through Team Depot, Atlanta Community Food Bank and other organizations. Gerber earned a B.S. in business management from the University of Phoenix.

F O U N DAT I O N B R I E F T h e H o m e D e p o t Foundation (corporate.homedepot.com/community), a registered 501(c)(3) public charity, works to improve housing issues facing U.S. veterans, train skilled tradespeople to fill the labor gap and support communities impacted by natural disasters. Since 2011, the Foundation has invested more than a quarter of a billion dollars in veteran-related causes and improved more than 41,000 veteran homes and facilities. In 2018, the Foundation committed $50 million to train 20,000 skilled tradespeople by 2028, starting with separating military veterans, at-risk youth and members of the Atlanta Westside community.

Will you highlight the history and heritage of The Home Depot Foundation and the main focus of its work?

The Home Depot Foundation was established in 2002, but we have been doing philanthropic efforts and volunteerism since the day the company was founded.

The Home Depot Foundation serves as the philanthropic arm of The Home Depot and focuses on three main pillars of giving including serving our nation’s heroes, assisting communities in need after a disaster strikes and training skilled tradesmen and women to fill the skilled labor gap. We manage the VOLUME 42, NUMBER 2

philanthropic strategy and grant initiatives, as well as The Homer Fund, which is our employee assistance giving fund, and Team Depot, which is our associate-led volunteer force.

Does the Foundation build partnerships in these efforts?

Through our nonprofit partnerships and our hands-on volunteering thr ough Team Depot, we have invested more than $280 million just in veteran causes alone since 2011.

We work through our nonprofit partners and have 20 national partnerships across the country, and then we have over 4,000 local nonprofits that we work with on smaller projects in local communities.

You mentioned the Team Depot associate-led volunteer program. Will you discuss this effort?

Team Depot is our associate-led volunteer force – we have over 400,000 associates who volunteer hundreds of thousands of hours each year to build and repair homes for those who have served us or live in communities that have been impacted by natural disasters.

Team Depot brings our mission to life by demonstrating our core values, like giving back, doing the right thing, and taking care of our people – those are all core values of Home Depot that have been around for the 40 years that this company has been in business.

Team Depot volunteers are very skilled associates – they are the boots on the ground that are getting the work done with our nonprofit partners in the local communities in which they live and work.

How critical are metrics to track the impact of these efforts?

We regularly track the impact of our efforts.

For any grant that is given to any of our national partners, we have a metric in place to measure what we’re trying to achieve.

These metrics are important for us in order to determine the best ways to support our veterans and communities through our giving. This allows us to optimize our future efforts and ensure we are making an impact.

We look at what social issue we’re trying to solve and develop the metrics to measure our progress.

Team Depot at work

For instance, we know that there are more than 37,000 homeless veterans on any given night. We look at our portfolio of efforts around this issue and we measure how we are helping to not only house those veterans, but how we decrease the in-flow of veterans so they don’t become homeless. Our goal is to see those numbers going down. When we started this effort in 2011, there were over 80,000 homeless veterans, so we know the work we and other partners are doing to help decrease that number is working.

When we look at our population of combatwounded veterans and the critical home repairs we’re doing to develop smart adaptive homes for them, we know how many critically wounded and catastrophically wounded veterans there are, so we are looking at the metrics that support our goals in helping that population.

It’s the same with our skilled labor. Last year, we committed $50 million to help fill the skilled labor gap and, today, there are 300,000 open construction jobs. That number fluctuates, but it’s about what we’re doing to decrease that number. We have a goal of training 20,000 people over the next nine years, so it’s about how we can help and measure the success for that program.

Each program and portfolio has a different metric, which we measure regularly throughout the year.

You have spent more than 13 years at The Home Depot working in different parts of the company. When this opportunity presented itself to lead the Foundation, what made you feel it was the right fit?

In my role, I am very blessed to be able to lead the philanthropic strategy and volunteer efforts to make sure we’re serving our associates, veterans, communities, and partners and that we’re making an impact. This is something I’m very passionate about.

It was an easy transition for me in terms of knowing that this was where I wanted to be and I was excited about the impact I know this great company can have.

I come from a strong military family, so the veteran tie was a nice part that ties into my personal life.

This company employs more than 35,000 veteran associates, so our mission is a natural connection to the company and doing the right thing is a part of who we are and it’s something I was excited to be able to lead.

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The Columbus Way An Interview with The Honorable Andrew Ginther, Mayor of Columbus, Ohio

Scioto Mile in downtown Columbus during the Columbus Arts Festival

EDITORS’ NOTE Mayor Andrew Will you discuss your focus Ginther was elected as the 53rd on early-childhood education in mayor of the City of Columbus after Columbus? having served on the Columbus I have always felt that the city City Council from 2007 and as should help keep a focus on kinderPresident of the Council from 2011 garten readiness – from birth to five. until assuming the Office of Mayor My vision is for Columbus to become a in January 2016. Mayor Ginther national leader in the birth to five space. is a Columbus native and proud This means better birth outcomes, reducColumbus City Schools graduate, ing our infant mortality rates, having our and he has a long history of comyoungest residents thriving in their first munity service. Prior to joining the years of life, and starting kindergarten Columbus City Council, he was The Hon. Andrew Ginther ready to learn. It also means supportelected to the Columbus Board of ing them with after-school and summer Education in 2001 and was re-elected in 2005. programs, and with internship opportunities and Mayor Ginther earned a B.A. in political sci- pathways to careers. I believe that’s our role. ence from Earlham College, studied abroad at What was the vision for the Smart the University of Ulster and Queen’s College in Columbus initiative and how has this effort Northern Ireland, and taught at public schools progressed? in Belfast and Derry. He also served in consecuI’m a big believer that mobility is the great tive internships at the Carter Presidential Center equalizer of the 21st century. If one has access to in Atlanta, where he taught non-violence and continuing education, living wage jobs, and things dispute resolution. some might take for granted like fresh fruits and vegetables and healthcare, then one can have a H o w d o y o u d e f i n e t h e s t r e n g t h s great quality of life regardless of where they live. o f Columbus and is Columbus well We beat out 77 other great American cities in understood? the Smart City Challenge. We started with a $40 We are becoming better understood. We’re million award from USDOT and $10 million from reaching that critical mass of Fortune 500 com- Paul G. Allen Philanthropies and, by the time we panies and have a growing number of start-ups submitted the application, we already had $90 milacross all industries. CoverMyMeds and Root lion in local matching funds generated from instituInsurance were our first unicorn start-ups. Both tions of higher education, corporations, and the recently have been valued at a billion dollars city, county, and state. We have now leveraged that or more, which we’re very excited about. They into $600 million of spending on Smart Columbus were born and developed in Columbus, where aligned projects throughout the community with a 80 percent of our businesses are considered goal of $1 billion by 2020. small businesses.

This has helped us dramatically increase We have an excellent workforce and a high mobility options and has even helped us tackle the concentration of educational institutions – we issue of infant mortality by expanding access for have 136,000 students in undergraduate study in expectant moms to prenatal assistant programs by the region at any given point in time. Besides providing access to doctor appointments and other Ohio State, we also have Columbus State and resources they need in order to make sure their many other institutions of higher learning pregnancies go full-term and result in healthy babies. throughout the region.

Have your efforts around public safety We’re also located at the center of the most been more about increasing law enforcement densely populated part of the country, so that presence or is it a broader focus? means we have superior access to the North It’s much broader. We developed a compreAmerican consumer population. hensive neighborhood safety strategy after a series Generally, we’re within a 10-hour drive of of roundtables around the community.

46 percent of the market in the U.S., so havWe had a record number of homicides in ing a high number of corporate headquarters 2017 and I knew that we could not police our and a significant U.S. manufacturing capacity way out of it. We know that public safety is everycontribute to why Columbus is a great place one’s responsibility, so having the involvement to do business. of the Departments of Health and Recreation and 98 LEADERS

Parks and Development is important – it’s not just the Division of Police’s job. All of us have a role to play.

We’re seeing some signs of success with a 28 percent reduction in homicides in 2018 and a reduction in violent crime in all categories.

We made it clear from the beginning that we didn’t just want more police; we wanted to police differently. This strategy will allow us to do that.

How critical is public/private partnership in addressing the issues that Columbus is facing?

It is critical. We talk about the “Columbus Way” and we think we do public/private partnerships better than anywhere in America. We leverage the public/private partnership – it worked for downtown revitalization, for our riverfront redevelopment and for economic development. We also leverage those partnerships with Smart Columbus.

We have a comprehensive community-wide plan focusing on safety, health and development that we are implementing in partnership with the private sector. We’re leveraging public/private partnerships to invest in and help transform the lives of people in one of the most challenged areas of Columbus.

Celebrate One is our infant mortality reduction effort that I launched when I was Council President and we have continued to gain momentum on that and seen a reduction of infant mortality in the community.

Leveraging public/private partnerships has made all the difference in these areas.

With all of the gridlock in Washington, is it at the state and city level where real progress is being made?

That is definitely the case at the city level.

It is a very different spirit on the local level. Most people run for mayor to get things done and help empower people to improve their own lives.

What makes Columbus unique is the people of Columbus, two-thirds of whom are doing better than they have ever done before, but that is still not enough for them.

They know that one-third of their neighbors have been left out of the Columbus success story and they want to advance them into the winner’s circle. They want mixed-income neighborhoods and a place with folks from all walks of life to be able to age in place in their neighborhoods.

We believe that now is the time for us to chart a course for not just dynamic growth, but also inclusive growth, and that is what generates the excitement that is so wonderful about leading the city right now.

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VOLUME 42, NUMBER 2

We’re the bank that looks out for people.

We’re Huntington.

At Huntington, we know the business of banking is about moving money responsibly. But we also know that behind the numbers there are always people. Human lives. Our families, friends and neighbors. It’s an honor to be part of the lives that help our communities prosper.

And for that privilege, we thank you.

Member FDIC. ⬢®, Huntington® and ⬢ Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2019 Huntington Bancshares Incorporated.

Buckeye Nation An Interview with Michael V. Drake, M.D., President, The Ohio State University EDITORS’ NOTE Dr. Michael V. Drake assumed his current post in June of 2014. From July 2005 to June 2014, Dr. Drake served as chancellor of the University of California, Irvine. He also served as a Distinguished Professor of Ophthalmology (School of Medicine) and Education (School of Education). Prior to serving as UC Irvine chancellor, Dr. Drake served for five years as vice president for health affairs for the Michael V. Drake University of California system. He also spent more than two decades on the faculty of the UC San Francisco School of Medicine, ultimately becoming the Steven P. Shearing Professor of Ophthalmology and senior associate dean. Dr. Drake is an alumnus of Stanford University (B.A.) and UC San Francisco (M.D.), and holds three honorary degrees. He is an elected member of both the National Academy of Medicine and the American Academy of Arts and Sciences and serves in leadership roles for the Association of American Universities (immediate past chair), Association of Public and Landgrant Universities (chair), American Talent Initiative, University Innovation Alliance, National Collegiate Athletic Association, and B1G 10 (chair elect). In 2015, Dr. Drake was appointed to the board of the Rock and Roll Hall of Fame and Museum.

INSTITUTION BRIEF For 149 years, The Ohio State University (osu.edu) has been the stage for academic achievement and a laboratory for innovation. The University’s Columbus campus is one of America’s largest and most comprehensive. As Ohio’s leading and one of the nation’s top-20 public universities, Ohio State is further recognized for its top-rated academic medical center and a premier cancer research center. As a land-grant university, Ohio State has a physical presence throughout the state, with campuses and research centers across Ohio and an Extension program serving every county.

What have been the keys to The Ohio State University’s success?

We have a very cohesive community – our staff, faculty and students – as well as the families that consider Ohio State part of their family tradition.

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The seal of The Ohio State University on its campus in Columbus

We ’ r e f o c u s e d o n c r e a t i n g opportunity and being the best that we can. Our last campaign was called “But for Ohio State.” The way the sentence goes is, “But for Ohio State, I would not be able to…” If it were not for the university, I would not be who I am. Everyone’s story was different, but they would all say, “But for Ohio State, my life wouldn’t be what it is.”

We appreciate having that positive effect on people.

It’s great to be a part of Buckeye nation.

How much does the issue of access and affordability to an education concern you and is the right dialogue occurring to address this issue?

It’s very important to us. Access, affordability, and excellence are themes we speak of all the time. The value that our community feels reflects their Ohio State experience.

People are really excited to come here.

We, as a public institution, know that Ohioans in particular can aspire to be Ohio State students or have their children come here, and that they can reasonably expect to afford it, and that the overall experience will be outstanding. It’s our mission to make sure those things are true and make sure that there is enough need-based aid to make us even more affordable.

We have done a lot of outreach to all 88 counties in Ohio with a variety of programs that make us known, and that create a pathway for students, particularly first-generations or those who otherwise might not have a wellworn path to us.

These are things we think about all day, every day.

How critical is it within The Ohio State University to have an innovative approach to teaching and learning in order to prepare the next generation of leaders for the jobs of the future?

To remain relevant, a world leading university is required to be surfing the cutting edge of innovation all the time.

We have to have adaptability as part of our DNA and be able to see and prepare for, and help create, the future.

Recently, I talked with people about new ways to do the things we have been doing over the past decades and how to make them

better. We have been talking about planning the university and the community of today for the tomorrow of 2030. These are all things that are part of our mission.

Will you discuss how valuable it has been to have The Ohio State University College of Medicine as part of the school?

We are a comprehensive university and appreciate the opportunities that gives us.

Medicine is a big part of our contribution to the community.

We do three things in the medical care arena: we’re a medical college, so we educate the next generation of clinicians and medical scientists; we are a research university, so we work on developing solutions to today’s problems so that we can help people here and beyond live more productive and fulfilling lives; and then we are a major provider of health services and healthcare for our community. This year we will have roughly two million patient encounters of one type or another, and those are a critical part of who we are as a university.

How important is the University’s relationship to the city of Columbus and what do you view as The Ohio State University’s role within the community?

We were founded as a land-grant university just under 150 years ago. It was a part of our founding mission to educate the sons and daughters of the people of this broader community in those disciplines that would allow them to contribute to the elevation of the quality of life of our region (and beyond) when they graduated. That is still part of our mission and we have tried to hold true to this every day.

The city has been a critical partner to us.

If we are doing our work effectively, we are engaged with issues that matter to the city in ways that help it to be a better place to live; so we strive to remain very involved in the city.

We also feel very involved in the state of Ohio. We feel a kinship and are compelled to do what we can to improve and support the quality of life throughout Ohio.

Ultimately, we feel very much a part of the entire U.S. and, as a major national university, we believe our policies and procedures and those things that we are good at help to elevate the discourse among our colleagues nationwide.

This is our mission. It’s who we are.

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VOLUME 42, NUMBER 2

Colleagues, Customers & Communities An Interview with Stephen D. Steinour, Chairman, President and Chief Executive Officer, Huntington Bancshares Incorporated EDITORS’ NOTE Prior to joining service, so we can see a half dozen Huntington, Stephen Steinour was years or more of JD Power awards and Managing Partner of CrossHarbor promoter scores that are very high, with Capital. Previously, Steinour was customer acquisition and retention rates Pr esident and Chief Executive that are strong relative to the industry.

Officer of Citizens Financial Group We’re fundamentally a people busi(CFG). Before joining CFG in 1992, ness. We have the luxury of having been he was Division Executive for Fleet able to serve Columbus for a century Financial Group after having been and a half. We have many long-time colExecutive Vice President at Bank of leagues that have continued from one New England. Following his graduageneration to the next and we’re trying tion from Gettysburg College in 1980 to continue to have this pass throughwith a degree in economics, Steinour Stephen D. Steinour out the company by looking out for our was an analyst for the U.S. Treasury people and helping them.

Department and subsequently worked for the That pays back – we see it in business FDIC. He is a graduate of the Executive Program at results, and we also see it in the intangible ways.

Stanford University Graduate School of Business.

We have very high colleague engagement scores and customer satisfaction ratings, and yet there is a COMPANY BRIEF Huntington Bancshares belief we can get better, and we have gotten better Incorporated (huntington.com) is a regional bank over time and will continue to improve. holding company headquartered in Columbus, How critical is being purpose-driven for Ohio, with $109 billion of assets and a net- Huntington? work of 954 branches and 1,774 ATMs across We started with a purpose-driven orientation eight Midwestern states. Founded in 1866, The and tried to build it into our brand 10 years ago – Huntington National Bank and its affiliates pro- this is not a recent idea for us. It has been centered vide consumer, small business, commercial, around colleagues, customers and our communitreasury management, wealth management, bro- ties. Our purpose statement, while it may change kerage, trust and insurance services. Huntington and be refined every few years, fundamentally also provides auto dealer, equipment finance, remains the same. It is centered on looking out national settlement and capital market services for people. that extend beyond its core states.

It’s a privilege for me to work here and see this every day, and I have opportunities to Will you discuss the keys to Huntington’s suc- occasionally participate but, most of the time, cess and its deep commitment to the commu- just witness or learn about things that are being nities it serves? done daily that are helping people lead better Huntington was founded in Columbus 153 lives. years ago. Over that period of time, there has I think we can do both – perform at a high been very extensive involvement in the commu- level, but also create an environment where nity, originally by the Huntington family them- shared values can drive wonderful outcomes for selves, and through the bank over time. people and communities.

There is a foundation of community support How important are public/private and engagement that is in the DNA of the com- partnerships in addressing issues facpany – it’s something I inherited. ing Columbus?

Our colleagues have been very generous to There have been enormous public/private the community and this is part of the soul of the partnerships and success along the way. company. We have picked that up in a purpose In the past few months, we have opened statement, again reflecting the fundamental beliefs a national veterans museum. We have an orgathat we are here to help people and make lives nization called COSI (Center of Science and better, strengthen the communities we serve, and Industry), which is a science museum that has help the businesses that we have the privilege of undergone an incredible expansion. The downworking with thrive. town area itself has been recast on a riverfront This cultural DNA and our efforts to build on that was mostly neglected and abandoned, and this have been a source of strength. Our colleagues now it’s a trophy location with miles of walkbeing highly engaged means better customer ing and bike trails and space for outdoor events.

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These were all public/private partnerships and there are many others in Columbus as well.

There is an organization called the Columbus Downtown Development Corporation that has been incredibly successful in a variety of projects including the Veterans Museum, the Scioto Mile and others.

Mayor Ginther is about to launch, in cooperation with the county and several businesses, a sizable housing initiative that focuses on maintaining and building affordable housing. Neighborhoods are changing very rapidly in some cases and we need to ensure there is affordable housing.

There is a sense of economic participation and concern for the community that is shared by the business community.

Is the message about the Columbus of today well understood?

It’s getting out. My tenure here has only been 10 years, but Columbus today would be recognized much differently than even a few years ago.

The city is growing, and the population is growing – we’re now the 15th largest city in the U.S. We have sizable institutions and companies here. Nationwide is a premier insurance company; L Brands is very strong as a specialty retailer globally; Battelle is the largest research institute in the world; and The Ohio State University is a force.

Governor Kasich did a great job solidifying the state financially and putting it on an economic development agenda. We’re typically ranked as one of the best states in the country.

There is a lot to be proud of looking back, but the exciting thing to me is looking forward.

Columbus has a very positive vibe. As kids graduated high school, many used to go to school in Chicago, but they are now staying around to attend school in Columbus.

There are so many different organizations that our colleagues are involved in – we have the largest corporate number of participants in Meals on Wheels in the city, and we have been that way for 30 years.

When I look at the library, the art museum, the food bank, the YMCA – Huntington over many years has been involved in all of them.

Through multiple generations of CEOs, we have been able to contribute to the growth and success of both the company and Columbus. For me, it’s part of what makes this job special and it’s a privilege that we have and something I hope to pass on to my successor.

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Safety and Service An Interview with Adam Johnson, Chairman and Chief Executive Officer, NetJets Inc. EDITORS’ NOTE With a passion for business aviation and an unyielding commitment to safety and service, Adam Johnson has contributed to NetJets’ continued growth and success for more than 20 years.

Johnson directs NetJets’ global operations, ensuring corporate goals are achieved and all divisions of the business are focused on a total commitment to safety, service, people and brand. During his tenure at NetJets, he has held a number of Adam Johnson senior leadership roles, including: President of Global Sales, Marketing and Service, Senior Vice President of NetJets Administrative Services, Senior Vice President of Logistics, Executive Director of the NetJets Aviation Flight Center, among others. He received a bachelor’s degree in business management from The Ohio State University and is a licensed pilot.

COMPANY BRIEF NetJets (netjets.com), a Berkshire Hathaway company, is the worldwide leader in private aviation with the largest and most diverse private jet fleet in the world. NetJets provides shared (fractional) aircraft ownership, a lease program and card services which allows individuals and companies to fly privately on a business jet at a fraction of the cost of whole aircraft ownership and guarantees availability 365 days a year with just 4-10 hours’ notice.

The NetJets programs worldwide offer the largest and most diversified fleet (approximately 750 aircraft) in private aviation, which includes a variety of aircraft types across four cabin classes.

NetJets has been serving owners for more than fifty years, with headquarters in Columbus, Ohio.

What are the keys to the consistent success and leadership of NetJets and how do you define the NetJets difference?

When we use the word “leader” in our business, it’s important to define how we look at that. We were the first private aviation company in the U.S. and this year is our 55th year in business – we started in 1964.

Today, we are still, and have always been, the largest private aviation company. By comparison, last year in 2018, we flew more flights than our top 15 direct competitors combined.

People will often compare leadership by size and length of business, but the reality is, 102 LEADERS

what has allowed us to be the leader in our business goes back to what Warren Buffett said when he bought our company in August of 1998: make sure there is a relentless focus on safety, then service, and everything else comes second to that.

The reason we have been as successful for as long as we have is our people. We have some of the industry’s top talent right here in Columbus, Ohio, and they are backed by our culture and focus on safety and service.

How have the programs and services that NetJets provides evolved?

Many people talk about Uber and the Uber effect. One of the things I’m often proud of is that, when Uber’s founders wrote their first pitchbook, they positioned themselves as the “NetJets of black car services.”

In many ways, we pioneered the “sharing economy” in private aviation in the mid-’80s.

Looking at our product and service line today, we have a product that meets all private aviation needs.

Our entry-level product is the Marquis Card, which allows one to enter into the program 25 hours at a time. We have a leasing portfolio that is larger than anyone on the planet.

Then our core business is our shared ownership business, which truly allows one to get all the benefits of whole aircraft ownership at a fraction of the cost.

If one is in the aircraft business, NetJets also offers management of the aircraft. We offer the full spectrum of product lines and services to meet any aviation needs.

However, our target audience continues to be whole aircraft ownership. When we analyze the people coming to our website, one of the top reasons they visit is to determine how to sell their aircraft and get out of whole aircraft ownership.

Our largest and most important target market are those people that have owned aircraft and realize that there is a better way to do it.

With NetJets’ size and strength in the industry, how important is it to avoid becoming complacent?

When people talk about us, they often talk about our scale and size. Internally, I try to steer away from that. Those topics, while they are true – we are much larger than our competitors combined – can lead to complacency.

NetJets’ headquarters in Columbus

We must maintain our edge, so every dialogue in every meeting is, in some way, about safety – making sure we’re keeping our owners safe and focusing on the service we provide.

It sounds simple, but we operate a very difficult business; there are a lot of moving parts, literally.

One of the top priorities that the leaders of our company have is making it clear that we focus on safety and service. We start each conversation with that.

We’re also focused on growth, but growth for growth’s sake is not what we’re interested in.

Another of our priorities is focusing on having a business that is viable for all economic conditions. We have what we call our NetJets 20/20 flight plan – 20/20 meaning the clarity of vision.

The flight plan is a one-page strategy that makes sure in this crazy-complicated business at NetJets that everybody, nearly 6,500 employees, are all focused on the goals that lie within that page.

Is it well understood that this unrelenting focus on safety is not just a given and that it should be a key part of the decision making process in terms of deciding who to fly with?

If you ask any aviation provider, they will all say they are focused on safety. The difference is, when we lay our heads down at night and ask ourselves if we’re really letting a culture of safety permeate the organization, we are looking at it at a deeper level.

Since I came back as CEO in June of 2015, this has been the most unrelenting focus I’ve had. It starts from the leadership of the organization and requires that we ask, “are we truly creating a culture of safety, and then are we investing in it?”

In our flight training alone, we invest more than $80 million in flight safety annually – that is more than the total of the pilots’ salaries at many of our competitors.

We look at things like the investment of dollars in new aircraft. Over the past four years, we’ve been quietly focused on bringing new aircraft into our program and have bought more than $4 billion in new assets totaling more than 300 aircraft.

One of the benefits of that, other than just having new aircraft, is being able to take advantage of the new safety features that come on VOLUME 42, NUMBER 2

those aircraft. We’re able to pull data off these new aircraft, digest that information and then, based on that data, modify many of our safety programs.

One of the programs is called FOQA, and it stands for Flight Operations Quality Assurance. If we take a look at our competitors, there are more than 20,000 business jets currently flying around today and 20 percent of those are more than 30 years old. Our competitors don’t have the money to make investments in newer planes and, thus, they don’t have that safety information available.

Another area we’re investing in is a fatigue risk management program. We’re making sure that when we build our schedules, we not only meet the FAA standards but we go above and beyond those in making sure that our crews are properly rested. There is no other competitor that is doing this.

The list goes on and this attention to safety allows us to hire the best pilots in the industry – most NetJets captains have seven times the industry standard in flight experience.

Creating that safety and service environment allows us to recruit the most experienced pilots in private aviation.

How critical is it that NetJets is engaged in the community and is a good corporate citizen?

On our one-page strategy document, one of the things we talk about is making sure that we have complete focus on our team members here and also in the community. We have quietly been trying to step that up over the past few years.

We probably have to start any conversation about our community involvement with our relationship with The Ohio State University. Over the past several years, we have donated close to $4 million to Ohio State for their aviation education center and their aviation studies program. I’m really proud that we have taken a leadership role with them, which helps keep the best aviation talent in Columbus and even helps recruit people to our company from outside of Columbus. Our commitment to Ohio State has been a big deal.

We’re a proud sponsor of the PGA. NetJets hosted a benefit concert in conjunction with the Memorial Tournament. Keith Urban performed and the primary benefactor for the concert was Nationwide Children’s Hospital. It is one of the best children’s hospitals in the U.S. and Abigail Wexner and the Wexner family have done a tremendous job of growing the cancer center and we were proud to be a part of that.

Columbus is a city where business leaders come together to support the city and work closely with the public sector.

Will you discuss this relationship and how important it has been in building on the vibrancy and momentum that Columbus has experienced?

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A NetJets pilot conducting a safety inspection on a NetJets plane

I have been in Columbus for 23 years and I have witnessed an amazing transition over the past 15 years in how the public and private sectors are working together. Fifteen years ago, we struggled as a community.

The transition that has taken place is truly amazing.

Columbus put out a campaign called One of Us. The tagline was, “Individually we are successful and together we are unstoppable.”

That is a great tagline. The public and the private sectors have understood that, together, better things can happen.

The Columbus 2020 program is all about economic development and working partnerships at the state and local levels.

I sit on the Columbus Partnership and, if we look at the various businesses coming together to bring outside companies to Columbus and growing different sectors of business, all of these partnerships have been extremely successful.

We have seen buy-in from the public and the private sectors who know that, together, we can not only keep the talent in Columbus, but recruit from other areas that in the past we weren’t doing well in.

There has been a fundamental shift in the past decade.

Is the message of Columbus’ success well understood and what do you tell those coming out of school about the work/life experience Columbus offers?

The message is certainly getting out. If one had asked that question 10 years ago, they would have heard the phrase, “one of the country’s best kept secrets.”

Now, I am blessed to be able to travel around the world and, when I talk to people from different states and regions, I hear that the message about Columbus is clearly getting out. Corporations are recognizing the attractive cost of living, that the talent pool is strong, and that it’s a great place to live.

Certainly, the efforts of Columbus 2020, the Partnership, and the Roundtable, as well as the campaigns that have been done have been effective in getting that message out.

We are now hearing that Columbus is competing for some of the larger business movements in the country.

What has made the experience at NetJets so special for you?

Honestly, one of the most exceptional things about being here is that what we do is challenging – we operate a private business jet flight every 65 seconds. There is a great responsibility to protect people’s lives that comes with that.

The people I have been able to work around over the past two decades are the most selfless group of individuals I’ve ever met anywhere in the world.

They always put the safety of other individuals and the service they provide ahead of their own personal interests.

What Columbus has allowed us to do is recruit the best and retain the best to maintain our DNA. Because of that, we have been able to build the largest private aviation company in the world.

Is it possible to take moments to celebrate the wins and appreciate all that NetJets is or are you always looking ahead?

We keep a lot of metrics, none more important than whether our owners and our employees are likely to recommend NetJets – when they go out to dinners or meet with their friends, what do they say about us? We track that.

With the focus on the 20/20 flight plan and our focus on safety and service, we have seen these recommendation scores going up and up over the years.

This is cause to celebrate and I take great pride in this because I know how difficult it is to achieve this and the dedication it shows from our owners and employees.

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t he good life

MIAMI

A Global City An Interview with The Honorable Francis X. Suarez, Mayor of Miami EDITORS’ NOTE Prior to being first Cuban Mayor of Miami in 1985 elected with 86 percent support from when I was eight years old, so I got to Miami residents, Mayor Suarez see up close someone who immigrated served as Miami Commissioner to the U.S., was raised and educated for District 4 for eight years up north, and then came down to and achieved many legislative Miami and struggled to get elected. It a ccomp l i s h m e n t s , including wasn’t easy for him because he wasn’t implementing ShotSpotter technolwell known and there had never been ogy in the City, a state-of-the-art a Cuban Mayor in Miami. I had a front gunshot detection system, setrow seat to a very transformational ting up a transportation trust political figure, who was my father. fund which allocates funds for curI educated myself and came back rent and future transit projects, and The Hon. Francis X. Suarez to Miami after law school, got married, passing the Reverse Redline legislaand started a business. I realized that tion authorizing lawsuits against several major there are two choices in life: one can be part banks for discriminatory mortgage lending prac- of the solution or one can complain about the tices. Mayor Suarez also serves as Chair of the things they don’t like.

Environment Committee and on the Advisory I was 30 years old at the time and we Board of the U.S. Conference of Mayors. In these didn’t have children, and the person running for capacities, he takes a leading role in collaborat- Mayor in 2008 was the councilman for the area ing with fellow mayors from around the country I lived in. When he ran for Mayor, it created a to preserve the environment and develop pro- vacancy for his council position, and I felt that grams and policies that directly benefit the if I was going to get involved in public service, City of Miami. Mayor Suarez also serves as this was the right time to do it.

Vice-Chair of the Miami-Dade Transportation I ran for office and was elected at 32 by Planning Organization (TPO) and is the former a very slim margin against a very well-known President of the Miami-Dade County League candidate who had run many times in the past. of Cities. In his role at the TPO, Mayor Suarez This was during a very difficult moment in the championed the Strategic Miami Area Rapid city because the city had just gone into bankTransit (SMART) Plan, which was unanimously ruptcy and two of the five councilmen had been approved. The SMART Plan expands mass tran- indicted. sit options in Miami-Dade County through six After I was part of the transformation that main corridors as well as new bus routes to ease took place in Miami and my time as commistraffic congestion and support future population sioner was coming to an end, I thought it was growth. Mayor Suarez helped negotiate the Tri- the right time for me to pursue a higher level Rail connection to Downtown, offering free rid- and decided to run for Mayor. I was fortunate ership to Overtown residents for life. As the son to be elected with the support of 86 percent of of former City of Miami Mayor, Xavier Suarez, the residents of the City of Miami. he was exposed to public service since he was a During my eight years as commissioner, child, growing up around his father’s office at we brought the city out of bankruptcy. Now, City Hall, the same one he works out of today. in my first year as Mayor, we have a signifiMayor Suarez earned a bachelor’s degree in cant reserve and the city is growing phenomfinance from Florida International University, enally well – we have double digit growth on graduating in the top ten percent of his class. average in our tax base for the past six conHe went on to receive his law degree from the secutive years.

University of Florida’s Frederic G. Levin College It has been an amazing first year full of of Law, where he graduated cum laude. accomplishments. It has also been a year where I have learned a lot and grown into the position.

What interested you to become Mayor of It is more intense than I expected, even though Miami?

I had a lot of experience coming into it.

I came from a family where public service I’m the first Mayor of Miami in its 122-year and giving back was a prerequisite. history who was born in the City of Miami, the My grandfather on my father’s side came first with a father who was Mayor, and the first from Cuba with 14 kids. My father became the Mayor of my generation.

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The skyline of Miami

A confluence of factors have come together in a really incredible moment where the city is transitioning from being a gateway city to being a global city.

What were your key priorities when you were elected?

One of them was making Miami the safest city. In my first year, we were blessed to finish the year with the lowest homicide rate in 51 years. That is remarkable in the context of the urban landscape nationally.

We also wanted to be a city that is cutting edge, not only in its economy, but as an organization. As a city, we are a billion-dollar entity with 4,500 employees and four labor unions so, from a process perspective, we want to make sure that we are a city that is easy to work with.

In our first year, we introduced electronic plans and we created a new website. We also put our employees through an innovation workshop to help them understand how to work with our new systems so the community of people who depend on the city for their livelihoods are getting a city that understands that time is money.

Another issue we wanted to focus on was resilience. We know that we have to deal with certain climate-based realities and we are hitting that point head on and dealing with it rather than putting our heads in the sand. We have a $400 million bond program and it’s completely focused on making Miami the most resilient city on the planet.

I have been blessed to be named to two major national and international boards. I am the chair of the environment committee for the U.S. Conference of Mayors, which is unusual for someone in their first year as Mayor. I am also on a global commission of adaptation that was established by Bill Gates and former Secretary General of the UN, Ban Ki-moon, who recently came to Miami to look at our resilience strategies, and gave our reports to the UN. We want to be a model for the world, not just the U.S. I’m the only Mayor in the U.S. on that commission and only one of two Mayors globally.

How have you built a broader understanding about the Miami of today as a global city and the transformation that is taking place?

We’re very proud of the progress we have made in this area and it is something that we continue to build on. From an investment perspective, we have never been more diversified LEADERS 105

A confluence of factors have come together in a really incredible moment where the city is transitioning from being a gateway city to being a global city.

in the pool of countries investing here. We are getting investment from countries that did not have us on their radars 15 years ago.

We have investments from Israel, the Middle East, India, Japan, China, Russia, and Turkey, as well as Europe, South America, Central America, and throughout the U.S. There aren’t many regions of the world right now that aren’t making significant investments here.

This is partially because one of my top managers used to be the former airport director and he did a great job expanding direct flights to and from different parts of the world. It’s easier than ever to get to anywhere in the U.S. through Miami and it’s an outbound launching point to many different parts of the world.

Will you address the state of the education system in Miami and your focus on achieving excellence in K-12 education?

We live in a knowledge-based economy today so it has never been more important to support education initiatives, and we’re doing this on different levels.

Starting just last month, we passed a bill that establishes child savings accounts. Studies have indicated that children are three times more likely to attend college if they save even small amounts of money towards their education and they are four times more likely to graduate college if they have saved. Every single kindergarten student in the publicschool system in Miami will get a child savings account that we are funding at a certain level.

I’m also a big proponent of early (pre-K) childhood education.

We are also creating a scholarship fund modeled after a program established by one of our university presidents. In addition, we are also highly involved in developing technical skill programs so those who decide they don’t want to go to college can have a career path that will allow their families to be successful.

Our objective is to create a path to prosperity for every single person born in our city.

Government can’t fix everything, but we’re trying to level the playing field to the maximum extent and at least give people the opportunity to succeed.

What made your approach to public safety and reducing crime work so well?

We took a holistic approach – it was not just having more police officers, though we did that. We increased our patrol officers by 70 106 LEADERS

percent. As our marginal revenue was growing, we dedicated a significant portion of that to hiring more police officers.

We aided this on the technological front by developing a gunfire detection system. We now instantly know, with GPS precision, the location of any gunfire in the City of Miami. We have the ability to get to the scene faster, to collect evidence more precisely, and to create policing strategies based on actual gunfire incidents.

This has radically changed our understanding of where these events are happening in the city and what we can do about it.

This system also gives first responders a few minutes of lead time to get victims to the great trauma centers we have in our hospitals in the event of a shooting.

We also have invested significant money in poverty reduction strategies and affordable housing, including a $16-million investment in one of our most vulnerable neighborhoods.

This area was an urban food desert, so part of that investment was for a supermarket. We also invested in culture in that neighborhood by reviving a cultural facility there.

Another approach involved the creation of job training centers. The developers of the affordable housing projects we invested in were required to hire from the community which allowed people who may have been selling drugs before to became construction workers.

I hired a new police chief as well and, to show my support for the communities, I started running 5Ks within 24 hours of any homicide beginning and ending in the exact point where it happened.

Even though our homicide figures represent the number of lives lost, when we’re reducing that number, it also represents the number of lives saved. For me, this is way more than a statistic – it’s personal; it represents human beings whose lives are being saved and who can become productive members of our society.

How critical is building a strong public/ private partnership in addressing many of these issues?

All of our affordable housing projects have been public/private partnerships. We’re leveraging the private sector’s ability to deliver financing and to develop better properties than the public sector ever did. Instead of getting horrible looking buildings, we’re getting beautiful buildings in our urban areas that look like they should be in the wealthiest parts of our communities.

When we marry the private sector’s innovation and ability to manage projects with our funding and our land, we get a high-quality product.

Public/private partnerships are essential, and we have also created them to address transit issues with our trolley system, so we are expanding them on many levels.

With the partisan state of politics today in Washington, is it at the local level where real change happens?

Yes, for two reasons: number one, as local governments, we aren’t allowed to carry deficits, so we have a prohibition against having a deficit in any fiscal year. We have to balance our budgets. Miami now has $160 million in reserves so, from a fiscal perspective, we are much better managed.

Second, I did not run for office on a partisan basis. If I were to create a party based on what we are trying to accomplish, it would be called the solutions party. It would be less ideological and more about problem solving.

This sometimes does ruffle the party structure, which is very powerful.

If we get away from the things that divide us and focus on the things that unite us, we would be far better off because, as human beings, we all have a lot in common and focusing on a problem/solution model is much more successful.

Are you able to enjoy the process and take moments to reflect and celebrate the wins?

It’s critical to celebrate. I’m a very driven person and the metrics are important, so I’m always focusing on getting better and getting my staff focused on what is next, but we have to enjoy what we’re doing to maintain the passion for it.

We all want to be happy in life and happiness is fostered by our ability to remain energetic and focused, so we have to maintain a certain balance and take the time to celebrate the wins.

I realize that what I’m doing at the macro level is meant to make a lot of people’s lives better, but I’m also thinking about living in a city that will make my family’s life better. I want my kids to have great opportunities and to be able to raise their families in Miami.

It’s personal for me because I was born here.

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VOLUME 42, NUMBER 2

NORTH DAKOTA

Innovating for the Future An Interview with The Honorable Doug Burgum, Governor of North Dakota EDITORS’ NOTE Doug Burgum took What interested you to become What is your approach to state government? office as the 33rd governor of North involved in public service?

Everything we do in state government, we Dakota on December 15, 2016.

The interest has always been there, do with a shared purpose: to Empower People, Burgum’s small-town upbringing be it in the private sector or the public Improve Lives and Inspire Success. Combined and agricultural roots laid the sector. As Teddy Roosevelt said, the great with our shared values of gratitude, curiosity, foundation for his shared values prize in life is the opportunity to “work humility and courage, we’re working to develop of respect for the past, gratitude for hard at work worth doing.” Maybe it was a positive and innovative state government culthe present and inspiration for the something my parents instilled in me, but ture in North Dakota. We aspire every day to future. Driven by a strong belief in it was the idea that I was going to put a work as one, maintain a citizen focus, approach North Dakota’s people and a powerlot of hours of work into my career, so I problems with a growth mindset, apply leaderful dream, he returned to his home should make sure that what I was doing ship everywhere and make a difference. state and helped lead Great Plains had purpose and was fulfilling.

These values are applied every day as we Software from a small startup com- The Hon. Doug Burgum I always thought the private sector make progress on our five strategic initiatives: pany in 1983 into an award-winand the work we did there was incred- reinventing government, strengthening tribal ning tech firm that employed thousands of team ibly fulfilling in terms of our mission to help people partnerships, addressing behavioral health and members from more than 220 cities across North and organizations realize their full potential and help addiction, transforming education and helping Dakota. Burgum led Great Plains as CEO through customers and partners improve their lives and to build healthy, vibrant communities through its initial public offering in 1997 and acquisi- business success. I felt I was working on things that our Main Street Initiative. tion by Microsoft Corp. in 2001. He remained at were making a difference. In North Dakota, there What were your key priorities when Microsoft as Senior Vice President through August is a long tradition of people going directly from the you took office?

2007, helping the company stake a leading posi- private sector into the governor’s role, so when the It was an interesting time to take office tion in the global business applications software seat opened and timing was right with my young- because, in December of 2016, we were in the industry. In 2006, Burgum reaffirmed his pas- est graduating from high school, I felt that this was middle of several crises – one was the incredsion for North Dakota by founding Kilbourne an area where I could have an opportunity to do ible drop in oil prices and a simultaneous drop Group, a real estate development firm committed work worth doing and really make a difference for in agriculture commodity prices, so our two prito creating smart, healthy cities through vibrant the people of North Dakota in a state I really love. mary industries had collapsed. downtowns. The company’s substantial impact on revitalizing downtown Fargo inspired his Main Street Initiative. In 2008, Burgum cofounded Arthur Ventures, a venture capital firm that invests in ambitious, mission-driven software companies. The success of those people and businesses guided by Burgum’s leadership and inspiration has created billions of dollars of shareholder value and thousands of jobs. In 2009, then-Governor John Hoeven awarded Burgum the Theodore Roosevelt Rough Rider Award, North Dakota’s highest citizen honor.

The award recognized Burgum for his business leadership and numerous philanthropic efforts, including the Doug Burgum Family Fund, which focuses its charitable giving on youth, arts and education. Burgum grew up in Arthur, North Dakota and has maintained his commitment and connection to his roots through family farm partnerships, by serving as a member for Arthur Companies, Inc., a diversified agribusiness company founded by his grandparents in 1906, and through a ranching partnership in the Badlands of western North Dakota. He graduated with a bachelor’s degree in university studies from North Dakota State University in 1978. He earned an M.B.A. from Stanford The Governor with award winners at the Main Street Award Ceremony Graduate School of Business in 1980.

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Everything we do in state government, we do with a shared purpose: to Empower People, Improve Lives and Inspire Success. Combined with our shared values of gratitude, curiosity, humility and courage, we’re working to develop a positive and innovative state government culture in North Dakota.

We had to take a general fund budget from $6 billion down to $4.3 billion. Our legislature only meets for 80 days every two years, so we had an enormously challenging time making that happen and making sure we were meeting the essentials of delivering services from government.

We also had 8,000 people camping illegally on federal property in North Dakota related to the Dakota Access Pipeline protest, so we had to try to peacefully unwind those, which took a lot of engagement with the tribes in North Dakota. That turned out to be successful, but it took us our first 76 days in office. From there, we had to work to rebuild and strengthen the tribal relations with the sovereign governments that share land within our borders.

We had those two things going on and then had to deal with every aspect taking place across the country. In every state, people are dealing with big challenges in K-12 and higher education because of the technological, demographic, economic and cultural changes that are affecting how we think about education, so there are some big, unstoppable forces impacting that.

Also, like everyplace else, we have the crisis around the disease of addiction and trying to raise awareness of that critical issue and eliminate the shame and stigma associated with it.

We also have the workforce issue because, for the first time in the history of the country, we have more jobs available than people seeking jobs, so we had to prioritize resolving that.

Our approach was understanding that workers choose where they want to live first and get their jobs second. Our workforce initiative is built around our Main Street Initiative, which is built around healthy, vibrant communities that have smart infrastructure and are designed in a way that keeps property taxes down.

We had plenty of things to pursue and we have spent the past two years making progress in all of those areas.

What needs to be done to truly transform K-12 education?

We issued an executive order to form a task force on innovation in K-12 education. We tried to pull together a consensus from frontline leaders who represent all the groups – parents, the private sector, school administrators, etc.; there are many stakeholders, and we need to have them all at the table.

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We also convened two statewide innovation in K-12 conferences where we have had great turnouts and tried to take a look at best practices and shining a light on innovative practices that are happening.

North Dakota’s State Capitol complex in Bismarck

At day’s end, we have to empower people on the frontlines because we have teachers who want to figure out ways to innovate. We have to ensure that we are empowering local school districts and getting rid of obstacles that get in the way of local leaders and teachers driving innovation.

We are excited about what we see from the folks who are on the front end of that, who are driving that change from within, and we are going to keep supporting them, both with recognition and conferences, but also by eliminating obstacles and creating policies to accelerate innovation.

What are the keys in such a partisan time to bring people together and drive change?

The states are where change can happen.

We have developed a list of about 50 different areas where one can incubate democratic ideas at the state level.

Coming from the tech sector, I like to think about it as 50 platforms for innovation. Each state has a chance to out-innovate the others. In North Dakota, we have tried to focus on innovation and not regulation because regulation is, by nature, backward-looking. If someone has an issue, they try to get a law passed. It takes a few years to figure out how to implement the rule, then we have to hire inspectors to make sure we’re complying with the rule. Pretty soon, we have gone eight years before the problem can be addressed.

We’re always trying to get ideology out of the room and get the data into the room, and then look for new solutions.

The states really have an opportunity to collaborate and work together for the benefit of their citizens, and if we can get the data in the room and get the ideology out of the room, a lot of progress can be made.

Is it critical to engage the private sector in these issues and how important has it been to build a strong public/ private partnership?

It’s absolutely critical because the engine of the economy and the revenues that drive our state all come from the success of the private sector. Making sure that we are supporting it and creating an environment where the private sector can thrive is essential.

Having an opportunity to work with corporate officers for one of the world’s most successful companies, we know what goes on in the boardroom in terms of how capital and talent get deployed across borders.

Working with everyone from the small businesses and entrepreneurs to the largest businesses that work in the state and understanding how entrepreneurship works is an invaluable background to have.

In North Dakota, the governor can chair a number of different commissions because our state has a state-owned bank and stateowned mill and elevator, for instance, so involving the board chairman experience is really valuable.

Are you able to enjoy the process and take moments to celebrate the wins?

There have been a number of things that are happening that are enormously satisfying. With the work that the First Lady has courageously undertaken on the disease of addiction and her progress in working with people overcoming these challenges so that they are now years into recovery, it has been moving to see how that touches people.

We haven’t done a lot of celebrating, but there have been some quiet moments where the First Lady and I, along with Lt. Gov. Brent Sanford, realized this is work worth doing because we are making a difference in people’s lives. It’s easy to go to work every day when we can have that kind of positive impact on people.

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KAZAKHSTAN

A Beacon of Economic Growth An Interview with His Excellency Erzhan Kazykhanov, Ambassador of Kazakhstan to the United States EDITORS’ NOTE His Excellency Erzhan Will you discuss the policies and Kazykhanov presented his credentials reforms being enacted by the govto become Ambassador of Kazakhstan ernment of Kazakhstan? to the United States in April 2017. He Kazakhstan’s economic success is the previously served as Ambassador to result of numerous reforms and businessthe United Kingdom and Northern friendly policies. Kazakhstan is constantly Ireland. Ambassador Kazykhanov working to improve its policies in order has also held various government posito create an economic environment that tions in Kazakhstan including assisis attractive to foreign investment. These tant to the President of the Republic of efforts largely began with the 100 concrete Kazakhstan and Minister of Foreign steps launched in May 2015 at the Astana Affairs. He served as Deputy Minister Economic Forum, and are categorized of Foreign Affairs; Ambassador of H.E. Erzhan Kazykhanov into five areas of institutional reforms: the Kazakhstan to Austria; Permanent formation of a professional state apparaRepresentative of Kazakhstan to the interna- tus, advancement of the rule of law, industrialization tional organizations in Vienna; and Permanent and economic growth, enhanced identity and unity, Representative to the United Nations in New York. and the formation of accountable government.

Ambassador Kazykhanov earned his bachelor’s Through these institutional reforms, Kazakhstan degree in Oriental studies from the Saint Petersburg has positioned itself as a regional hub for trade.

State University in Russia and a Ph.D. in history from Because of its location in the center of the land trade Al-Farabi Kazakh National University. He speaks “bridge” between Europe and Asia, Kazakhstan has Russian, English and Arabic and has authored access to the largest sales markets – the Eurasian numerous articles on diplomacy and Kazakhstan’s Economic Union, Russia, China and Central Asia. foreign policy issues.

Kazakhstan has placed a major emphasis on economic diplomacy. What makes this so What is the current state of Kazakhstan’s critical and will you highlight these efforts? economy?

In today’s highly competitive global environKazakhstan has the strongest economy in ment, economic and trade ties are an increasingly Central Asia, earning a spot among the top 30 coun- important part of international diplomacy. Official tries of the World Bank’s “Doing Business 2019’’ government visits focus not only on international report. With an abundance of natural resources and political issues, but also on the development of a unique geographical location as a bridge between closer economic ties. Diplomatic posts around the East and West, Kazakhstan has become a bea- the world not only work on political and consular con of economic growth and an attractive destina- issues, but increasingly engage with foreign investion for trade and foreign investment. tors, businesses and trade partners.

As the country continues to diversify its econEach year the foreign ministry and its diplomats omy, the Government of Kazakhstan has adopted help to organize more than 300 trade, economic and numerous business-friendly policies to attract more investment events and approximately 600 foreign investment into the country, including exemption delegation visits to Kazakhstan. Such engagements from the value-added tax, corporate income tax, facilitate an increase in foreign direct investment. property tax, and land tax, as well as exemption Kazakhstan has attracted more than $300 billion from customs duties. Additionally, Kazakhstan has dollars in FDI since gaining its independence, makdeveloped critical transportation infrastructure to ing the country the leading investment destination facilitate trade across the whole of Eurasia. in Central Asia. In the last two years alone, foreign In 2018, Kazakhstan launched the Astana companies have invested over $20 billion annually International Financial Center (AIFC) as we aim in Kazakhstan’s economy. Kazakhstan continues to to become a major financial hub in the region. adapt to new global realities to stay competitive Partnering with American companies like Nasdaq, in attracting high-quality investments.

AIFC serves as a trading and financing platform for As we seek to further modernize our econforeign and domestic investors. omy in order to reach our goal of joining the top 30 Kazakhstan’s economic reforms have paved most developed countries by 2050, we are looking the way for international investments. The U.S., for to strengthen our efforts in attracting a diversified example, has traditionally been the biggest investor range of foreign investments and technologies. in Kazakhstan with total investments exceeding $45 How critical is the U.S.-Kazakhstan bilatbillion and more than 700 American companies are eral relationship and will you discuss the state operating in Kazakhstan. of this relationship today?

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Since the founding of our country, the U.S.Kazakhstan bilateral relationship has been of the utmost importance to Kazakhstan. The U.S. was the first country to recognize Kazakhstan’s independence and establish diplomatic ties 27 years ago.

Since then, the U.S.-Kazakhstan bilateral relationship has grown substantially. President Nursultan Nazarbayev made an official visit to Washington, D.C., last year to meet President Donald Trump and Vice President Mike Pence along with a number of business leaders. These meetings further cemented our countries’ mutual commitment to expand cooperation in many areas of shared interest, such as defense, trade, investment and energy.

In the past nine months alone, both countries engaged in an unprecedented number of highly successful bilateral visits and business meetings in a variety of sectors such as healthcare, agriculture, education, trade, culture and science. Last year U.S. Secretary of Commerce Wilbur Ross led one of the largest certified trade missions to Kazakhstan. This year we are expanding our presence in the United States by opening Kazakhstan’s Consulate General in San Francisco to boost cooperation with technology startups and foster innovation in tech policy.

What are your key priorities in your role as Ambassador of Kazakhstan to the United States?

Most of my time goes to enhancing trade and commercial ties between our countries. I constantly work to strengthen economic ties and seek new commercial opportunities. In order to promote mutually beneficial cooperation, it is necessary to understand your country’s needs while also being able to adjust to the interests of a host country.

I work to ensure that Kazakhstan continues to provide quality products and services to the U.S. markets. We are currently exploring trade and investment opportunities in various areas such as IT, finance, metals, oil, gas and agriculture.

In September 2018, the Deputy Prime Minister and Minister of Agriculture of Kazakhstan visited Washington and the Midwest. We discussed the advancement of cooperation with U.S. Secretary of Agriculture Sonny Perdue and American agricultural companies interested in entering the Kazakh market. With 24 million hectares of arable land, 188 million hectares of pasture and close proximity to the Russian, Central Asian and Chinese markets, Kazakhstan’s agricultural market has enormous untapped potential. As a practical step to help American businesses visit Kazakhstan, we established a visa-free system, opened the Consulate General in San Francisco and signed an Open Sky Agreement to enable direct flights between our countries.

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VOLUME 42, NUMBER 2

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E X P LO R E T W S T E E L . C O M

Values and Culture An Interview with Cameron Mitchell, Founder and Chief Executive Officer, Cameron Mitchell Restaurants EDITORS’ NOTE Like the histories of most entrepreneurial companies, Cameron Mitchell Restaurants (cameronmitchell.com) begins in a very humble place: Cameron Mitchell’s mother’s dining room table. It was there that Mitchell mapped out his career goals that would eventually set the course for his restaurant industry career. After a time at the now defunct 55 Restaurant Group in his hometown of Columbus, Ohio, Mitchell was ready to go out on his own and pursue his dream of running his own restaurant company. While remaining independent and privately-held, Cameron Mitchell Restaurants has grown to more than 37 venues and 15 different concepts with locations in 12 states. In addition to Cameron’s, the concepts are: Cap City Fine Diner & Bar; The Guild House; Hudson 29 Kitchen + Drink; M; Martini Modern Italian; Marcella’s; Ocean Prime, with 16 current locations; Molly Woo’s Asian Bistro; The Pearl Restaurant; The Barn at Rocky Fork Creek; The Avenue Steak Tavern; and, Harvey & Ed’s. Opening this year are Del Mar Coastal Kitchen, Lincoln Social Rooftop, Budd Dairy Food Hall, The Pearl in Bridge Park and an Ocean Prime location in Chicago. In addition to these restaurant ventures, Cameron Mitchell Premier Events is the premier caterer in Columbus, Ohio. In 2018, Cameron Mitchell Restaurants celebrated its 25th year of restaurant excellence.

Will you discuss your vision for creating Cameron Mitchell Restaurants and how the business has evolved?

I left my job at the 55 Group, where I oversaw the operations for six restaurants, to start my own company. I spent the first three or four weeks writing out our company culture and values. I wanted to create a company that was values-driven and valuesbased, and that was going to be around long after I was gone.

In the very early days, I wanted to build a multi-concept restaurant company in Columbus and didn’t have any thoughts of expanding outside of Columbus. However, over the first seven years, from 1993 to 2000, we had built 10 restaurants in Columbus, so it was a natural progression for us to start to think about expanding into other markets.

We started looking at concepts for our out-of-town expansion, and Mitchell’s Fish Market was born out of that. We ended 112 LEADERS

up also building 22 steakhouses and selling those t o R u t h ’ s C h r i s i n 2 0 0 8 . We sold Mitchell’s Fish Market to Ruth’s and we couldn’t use the n a m e M i t c h e l l ’ s a n y m o r e . We h a d t o change the name of our Mitchell’s Ocean Club to Ocean Prime, and that became a growth vehicle for us on a national stage and across the country.

That multi-concept origin of our company still stands today, and we continue to develop new concepts. We have a new one called the Del Mar opening up in a few months, which is a California cuisine concept. We have two other concepts, a Hudson 29 brand and our Cap City Diner brand, that we plan to open in other locations.

The company today is still based on the values and culture that we established in the beginning, but we have grown over the years and gotten better through practice.

How important has it been to build a culture that provides your people with growth opportunities in order to retain talent?

It’s incredibly important. Eighty percent of our management talent has been promoted from the hourly ranks and virtually everyone in the upper echelon of the company, outside of a few specialized people, were developed from within the company.

I want those who have spent years working hard with us to reap the rewards of that work.

When we sold the Fish Market business in 2008 for $92 million, I gave 5 percent of the proceeds to our management teams. I then spent another $400,000 on parties and gifts.

We’re also closed seven major holidays, plus Super Bowl Sunday, so that is eight extra days off that people get. It’s important for people to spend time with their families. One of my rules is for our people to make more of their kids’ games than they miss. I believe family life and work life are intertwined. People can’t be successful at work if they’re not successful at home and vice versa.

You recently completed a book, Yes Is the Answer, What Is the Question. What motivated you to write the book and what do you hope to convey with it?

I had wanted to write a book for five years.

I get many requests to speak and I was asked to write a book. With our 25th anniversary coming up, the timing seemed right.

I wrote the book as a legacy project – each new manager will get a copy. It memorializes

the story of how I started and my history. I also wrote it for our people, to help push the brand and company forward.

Additionally, it was written for the many people out there who I could help out. I wanted to provide inspiration for others.

What are the keys to long-term success in the restaurant business and how challenging is it to stand the test of time?

It is very challenging. It’s cool to say we opened a restaurant 25 years ago and it’s still going strong today, let alone building 90 other restaurants.

One of our five core values is to be better today than we were yesterday, and to be better tomorrow than we are today.

That is ingrained thoroughly in everything we do and it prevents us from giving in to the status quo.

Is cultural fit as important as expertise when you evaluate talent?

Cultural fit is more important. If they don’t buy into the culture, they won’t be successful within our organization.

I am often asked where we get such great people and how we deliver such great hospitality and service. The answer to both questions is the same – we treat people extremely well.

When we hire into the organization, I look at it as a triangular relationship. Our associates come first – they are who we have a direct relationship with. We take care of our people and they take care of our guests and our guests take care of our company.

Treating people with dignity and respect is one of our core values. Our associates truly come first.

Have you always had the entrepreneurial spirit and do you plan on slowing down?

Hopefully, we are going to announce a new venture in the hotel business shortly, and our goal is to start a hotel company. It’s new and completely different, and I hope we never lose our entrepreneurial drive in this company, whether I’m here or not.

I will still be looking for new opportunities, but I just won’t be doing all the heavy lifting.

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An Iconic Establishment An Interview with Theodore V. (Teddy) Suric, General Manager, 21 Club EDITORS’ NOTE Teddy Suric has held his current post since September 2013. He received his degree in Hospitality Financial Management from Cornell University.

INSTITUTION BRIEF Fr om the ornamental jockey figurines to the secret wine cellar, ‘21’ (21club.com) is an American icon. Officially opened on January 1, 1929, ‘21’ is one of America’s most famous speakeasies from the Prohibition Teddy Suric Era. Designed with its own disappearing bar and a secret wine cellar to hide the illegal liquor from prying eyes, it’s a place where celebrities and captains of industry have wined and dined for more than 80 years.

Will you discuss the history and heritage of 21 Club and how 21 has evolved over the years?

The 21 Club began as a speakeasy in the 1920s during the years of Prohibition when it was illegal to serve alcohol. It was started by two college students, Jack Kriendler and Charlie Berns, in 1922 in Greenwich Village called “Jack and Charlie’s 21,” and moved three 114 LEADERS

21 Club’s iconic Bar Room (above); entrance (below) and entrance lantern (lower left)

times before finding a permanent home on New Year’s Eve 1929 at 21 West 52nd Street. We will host a great 90th anniversary party this year.

You have led changes at 21 to make sure it remains current and relevant. Will you highlight the recent changes that have taken place in order to meet the needs of today’s guests?

I am entering my sixth year in charge of this great iconic establishment. We have evolved immensely in all categories of the restaurant, I call it a restaurant, but it is much more with four floors and 10 private dining rooms; it’s more a crossover between a hotel and a restaurant.

We have improved the culinary aspect with the hiring of chef Sylvain Delpique in 2014, which was important as today’s guest is very educated and health oriented when it comes to the foods they consume. We have also worked on the actual property itself with the recent renovation of all of our private rooms, including modernized AV equipment. We have improved and implemented new procedures and protocols to better service our clientele. We modernized from top to bottom without interfering with the true DNA of the restaurant.

How do you define the 21 Club guest and how broad is 21’s target market?

The 21 Club guest is very affluent. It is our goal to expand our reach to a younger demographic including taste makers and industry leaders. Over the past five years, we have seen a shift to a younger clientele who appreciate our rich history and ensure that our heritage will continue through the next generation.

How critical is the investment that 21 makes in training to fulfill its commitment to deliver the highest quality service standards?

Training and systems upgrades should never stop in the hospitality industry as it is evolving very quickly today. It is important to stay focused and fresh in all aspects of our business and training is conducted throughout the property on a quarterly basis. We are lucky to have a long-tenured professional staff that is willing to change certain steps of service to better the business. This is accepted more readily since the numbers and covers keep climbing year after year.

21 is a leader in private events. Will you provide an overview of 21’s event space and the broad range of its event capabilities?

21 Club has 10 wonderful, renovated private rooms that can host cocktail parties for up to 300 in one room or 1,000 in the entire restaurant as well as sit-down lunches or dinners for up to 180. Our crown jewel is our wine cellar which seats 22 people. It is located in the basement behind the original two-ton door which was used to hide contraband back in the 1930’s during Prohibition. It is truly a one-of-a-kind facility and a great culinary experience. Our private events are led by Cynthia Sutherland, our Director of Sales & Marketing, and her team who specialize in putting on outstanding social, corporate and philanthropic events and are always looking to tap into different markets.

What are your key priorities for 21 as you look to the future?

Our key priority is to make sure we don’t stray from 21 Club’s DNA and what makes it unique, but rather to build off its history and continue to evolve and be strategic in our decisions in order to achieve growth. We are not here to reinvent any wheels, but rather to stay relevant in today’s culinary market. We have a great foundation and history to achieve these goals and a great team on our side.

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Personalized Service An Interview with Kanvar Singh, Area Managing Director, Time Hotels EDITORS’ NOTE Kanvar Singh has held his current post since September 2016. He began his car eer with the Dr eam Hotel Group as a front desk agent at The Time New York in 2002. He quickly rose to become one of the youngest GMs in the city at Night Hotel in 2008. Under his leadership, Night was voted “the sexiest hotel in America” by TripAdvisor and won service awards fr om Booking.com, TripAdvisor, and Kanvar Singh Agoda. Singh then returned to The Time as General Manager in 2010, managing both The Time and Night properties for more than a year.

COMPANY BRIEF Time Hotels (thetimehotels.com) are destinations for the creative set, for a new breed of traveler seeking progressively designed living spaces, interactive social areas, and dining that balances upscale refinement with touches of cool. The overall result is a unique sense of existence that isn’t readily apparent, but rather uncovered slowly as the clock’s hands move round and round. Their destination properties include The Time New York and The Time Nyack.

Will you provide an overview of Time Hotels and how you define the essence of the Time brand?

The Time Hotels is a 4.5-star, designfocused brand with a strong emphasis on personalized service. Our goal at The Time Hotels is to both suspend time, as a boutique oasis from the daily hustle and bustle, as well as save time, with our thoughtful, tech-savvy design and bespoke hospitality.

Where do you see opportunities for growth for the brand?

We have our eye on major cities in the United States like Chicago, Los Angeles, Dallas and Miami. We also see opportunities for international growth in cities throughout Europe and Asia.

Will you discuss the strength of the suite offering at Time properties?

At The Time New York, we have a 2,000-square-foot Penthouse Suite which is the hotel’s largest and most expansive accommodation, spread over three floors, with 500 square feet of private terrace space. The first VOLUME 42, NUMBER 2

floor includes a living and dining area, featuring a gourmet kitchenette and customized wine list, as well as a large private terrace. The one-bedroom master sits on the second floor with Hudson River views, a sauna and a luxurious marble master bath. A third-floor sitting room, with a private terrace, tops off the Triplex Suite. The in-room amenities also include Italian Frette Linens, Argon bath amenities and Maison Margiela robes, rainfall showerhead, an oversized soaking tub, jewel box dressing room, work desk with USB ports, Siberian oak flooring, three Samsung Smart TVs with USB and HDMI connectivity, drawer safes, Bluetooth clock radio and custom blackout drapes.

At The Time Nyack our premium suites range from 550 square feet to 700 square feet. In a nod to the building’s industrial roots, The Time Nyack’s suites are eclectic yet chic, gritty yet graceful, and infused with loft-style aesthetic. The Balcony Suites have sweeping views of the Hudson River and Governor Mario Cuomo Bridge, while the Timeless Suites have luxurious clawfoot tubs. In-room accommodations include one king size bed and a pull-out sofa. Both suite categories feature soaring 11+ foot ceilings and include high-speed internet access, luxury linens, mini refrigerator, in-room safe, Keurig coffee and tea maker, 47-inch flat screen TV, work desk, Bluetooth radio alarm clock, lounge chair with ottoman, custom C.O. Bigelow bath amenities and phone with voicemail.

What are the keys to being successful in food and beverage for Time Hotels?

Our success in food and beverage at Time Hotels depends on the synergy between our hotels, restaurants and lounges. Strong communication is key. Service, quality of food and curated cocktails provide a unique high-end experience for our guests. We pride ourselves in having the same high-level style of service consistently across all venues.

Serafina, like The Time New York, was designed by award-winning architect and designer David Rockwell. Combined with Time Hotels’ elevated service and Serafina’s classic Northern Italian menu, the guest experience is taken to the next level.

Penthouse Suite bedroom (left) and terrace (above)

LeGrande Lounge, also designed by David Rockwell, has specially curated cocktails from Liquid Labs, along with gourmet light bites from our chef. In addition to The Time’s signature service, lighting, music and scent are important for creating the right ambiance for our guests.

Our boutique coffeeshop, Goldfinch, proudly serves Stumptown coffee, along with custom pastries and snacks. Included in our daily facility fee, each of our guests receive two complimentary coffees each morning to start their day.

How do you describe the Time Hotels guest and how broad is your target market?

The typical Time Hotel guest is a wellseasoned sophisticated traveler in their 30s to 50s. Our target market ranges from large U.S. cities to international cities in Canada, France, the U.K. and Brazil.

You place a major emphasis on service standards. Will you discuss Time’s focus on employee training and providing personalized service?

Onboarding and training at Time Hotels is curated to each property. We provide extensive interdepartmental training for each of our employees. Cross-training across all departments allows our employees to better understand each department and what they do. They also learn how to work as a team to reach our common goals of exceeding guest expectations. Additionally, we like to empower our staff to make decisions on their own and encourage creative problem solving to provide superior personalized service. An important aspect of training to provide personalized service is to ask simple questions at the point of reservation to set the team up for success in wowing our guests.

What advice do you offer young people interested in a career in the hospitality industry?

Personally, my advice would be that hospitality has a lot of growth potential, and if you work hard and are patient you will succeed. The best thing you can do is expose yourself to as many different facets as possible – from operations to revenue to sales.

Narrow down which field you want to get into and work towards that field. Once you decide which direction you’d like to take your career, then do some market research, network, find a mentor and expect to pay your dues.

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The Peninsula Chicago The Peninsula Chicago (chicago.peninsula.com) has been recognized as a premier property with Forbes Five-Star and AAA Five Diamond awards since its grand opening in 2001. In 2019 this rating contributes to The Peninsula brand becoming the first and only hotel collection to ever achieve the prestigious Five Star rating across all ten properties. Drawing from a strong brand heritage renowned for the warmth of its hospitality, The Peninsula Chicago is considered the top choice for everything from accommodations to celebrations and corporate events. For this, the hotel credits its strong links to both the local community and international inspiration and personalized service approach. The Peninsula Chicago has been named the #1 hotel in Chicago and the #2 hotel in the U.S. in 2018 and 2019 by U.S. News and World Report.

Trip Advisor named The Peninsula Chicago the #1 Luxury Hotel in the U.S. in 2019.

The hotel boasts 339 luxurious guest rooms and suites, furnished in a contemporary yet classical style, and offers a 15,000-square-foot spa and fitness center, as well as three distinctive restaurants and a new rooftop bar, 24-hour room service, a ballroom, and 11 additional meeting and event rooms.

With views overlooking The Magnificent Mile, Lake Michigan, and the historic Water Tower Park, the recently renovated Lake Suite features two bedrooms with a large entry foyer, large living area with seating for 10 guests, two marble bathrooms, an additional powder room, two dressing areas, dining room for six guests, study, and pantry area, as well as state-of-the-art technology throughout.

Once they experience this kind of comfort and sophistication, guests will be planning their visit back to this Windy City gem.

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The Lake Suite dining area (top), bedroom (center), and living area (below)

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The St. Regis New York Dior Suite living area (above); Tiffany Suite dining area (below); Bentley Suite bedroom (bottom)

Contemporary luxury meets classic sophistication at the iconic St. Regis New York hotel (stregisnewyork.com). Situated just steps from exceptional Fifth Avenue shopping, the property offers 238 luxurious guest rooms and suites which are newly renovated and marry original design elements, such as crystal Waterford chandeliers and elegant crown moldings, with beautiful, largeformat photographic artwork, vibrant-hued fabrics and stunning beveled mirrors. Rooms feature marble-tiled entryways, rich color schemes, custom furnishings and state-of-the-art technologies.

Since its founding by John Jacob Astor over a century ago, The St. Regis New York has established itself as one of Manhattan’s most alluring addresses. The flagship 5-star hotel has evolved to reflect the rich history of St. Regis, while infusing the timeless luxury that has come to define it.

Every element of the hotel is carefully considered, from the richly decorated rooms and designer suites to the graceful public spaces, highlighted by a regal rooftop ballroom. Exceptional dining at Astor Court and the world-class King Cole Bar – home to the nation’s first Bloody Mary – further enhance the experience.

Guests seeking a bespoke travel experience will revel in a choice of designer suites, including the Dior Suite, the Tiffany Suite and the Bentley Suite. Each suite offers its own distinct personality and charm. From the effortless French glamour of the Dior Suite to the jeweled tones of the Tiffany & Co. and the contemporary elegance of the Bentley Suite, these bespoke accommodations embrace the hotel’s rich legacy, while infusing a sense of modern elegance befitting one of Midtown Manhattan’s most coveted addresses.

In the Tiffany Suite, whimsical and opulent details reflect Tiffany’s modern aesthetic and contemporary vision. Designed in conjunction with Tiffany & Co. Design Director Emeritus John Loring, the suite sparkles with accessories from Tiffany & Co. and boasts a serene and sophisticated palette of whites, beiges, charcoal, and silver, with signature Tiffany blue serving as an accent throughout.

A collaboration between St. Regis and Bentley Motors, the 15th-floor Bentley Suite exudes the luxury, craftsmanship, and style associated with both renowned international brands. Styled in a muted palette of creams and neutral tones, the 1,700-squarefoot space is filled with signature details from Bentley’s vehicles – rich wood furnishings evoking burl-veneer dashboards, herringbone-pattern VOLUME 42, NUMBER 2

curtains trimmed with actual seat belts, and Breitling clocks mounted on the wall.

Each designer suite features St. Regis’s hallmark service and amenities including the 24-hour service of the iconic St. Regis Butler,

offering complimentary services including Butler served tea or coffee upon arrival and daily wakeup call, pressing of up to two items per guest upon arrival, shoe shine and packing and unpacking services.

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Le Meurice Pompadour Suite salon (above and center); Presidential Suite bedroom (bottom right) and salon (bottom left)

One of the City of Lights most precious jewels lies deep in the heart of historic Paris in the Vendôme quarter just steps from the Louvre Muséum and opposite the Tuileries Gardens. Le Meurice (dorchestercollection.com/en/ paris/le-meurice) embodies Fr ench excellence in the art of elegant living.

Its tradition of excellence began in the 18th century by Calais postmaster Charles Augustin Meurice, who was keen to cater to British tourists on the continent wishing to find all the comfort and services to which they had become accustomed. Le Meurice is an inspirational and fascinating place where 18th-century splendor and the most innovative modern comforts sit happily side by side. It is much more than a luxury hotel; it is a gallery, an adventure, and a living work of art.

The hotel was opened during the Restoration at 232, rue Saint-Honoré, where it welcomed monarchs, aristocrats, artists, and writers. From the Prince of Wales to the King of Monténégro, and Alfonso XIII to the Maharajah of Jaipur, the most powerful men of the day were delighted by the highly Parisian charms of Le Meurice. In 1835, the hotel moved to 228, rue de Rivoli and has remained in that location. Ever since, its story has been written in letters of gold – a story of opulence and exceptionality maintained

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by architect Charles Jouffre, the man behind the decor of the great lobby of the Paris Opéra Garnier who, in 2008, brought the style of an 18th century residence to the luxury hotel, giving it a unique image tied to its rich, prestigious past.

The hotel has 118 rooms and 42 suites – one of the most extensive collection of suites in Paris. One of the most impressive offerings is the Pompadour Suite. This 807 square foot, three-room suite offers spacious Italian marble bathrooms with waterfall baths, fresh flowers and stunning views of Rue de Castiglione.

This suite, inspir ed by Madame de Pompadour, is the epitome of the 18th century: symmetry, solid oak Versailles parquet, Regency-style wood paneling, hidden doors, Louis XV fireplace, cornices, chandeliers and rich trimmings by Maison Declerq.

Le Meurice also offers the 1,722 square foot, Dalí-inspired Presidential Suite. This suite offers panoramic views of Paris and its iconic monuments including the Eiffel Tower and the Louvre. This luxurious suite is built around two regal reception rooms whose high ceilings reflect the vastn e s s o f t h e s p a c e . The front-facing splendor of these rooms treats guests to a rarely seen view of the magnificent Tuileries Garden.

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The Ritz-Carlton, Istanbul The Ritz-Carlton Suite dining area (above), living area (below) and bedroom (bottom)

A luxury hotel that captures the beauty, history and culture of Istanbul with Bosphorus views and 5-star amenities, like the city itself, The Ritz-Carlton, Istanbul (ritzcarlton.com/en/hotels/ europe/istanbul) strikes a compelling balance between Middle Eastern tradition and beauty and European culture and style. This perfect pairing is weaved throughout the hotel experience and complemented by views of the Bosphorus from nearly every space, including luxury accommodations, restaurants and lounges, the seasonal outdoor spa and meeting and wedding venues. The opulence, culture and tradition of the Ottoman Empire is given a modern twist at The Ritz-Carlton, Istanbul, set along the Bosphorus in the upscale Dolmabahçe district.

In October 2018, The Ritz-Carlton, Istanbul announced the completion of an $8.5 million renovation. The newly refurbished guestrooms, suites and meeting facilities have been exquisitely designed by Portuguese designer Patricia Pina and Turkish architect Hakan Yürüoglu. The 243 guestrooms including 23 suites have been renovated to reflect a design concept created around the Ottoman Empire and the rich culture of Istanbul with views that allow guests to admire the city, from the Bosphorus to the famed Mosques. Each guestroom is beautifully decorated with contemporary pieces from Turkish artists, including a famed artwork “At Nagme” by Süleyman Saim Tekcan, a precious representative of Turkish Gravure Art. Glazed replicas of ancient coins from the reign of Selim III, the reformminded Sultan of the Ottoman Empire, also stand out in the guestrooms and suites.

Upon the completion of the two-year long renovation project, The Ritz-Carlton, Istanbul proudly unveiled its top suite, the 2,584 square-foot RitzCarlton Suite located on the 14th floor. This magnificent suite features floor-to-ceiling windows that provide stunning views of the Bosphorus, a luxurious King bedroom with a separate living room and working space. Guests staying in The Ritz-Carlton Suite can enjoy the ultimate indulgence with a spa hot tub with views overlooking the Bosphorus as well as a full marble bathroom with rain showers and a soaking tub. Other amenities include a 42-inch flat-screen IPTV; complimentary access to the exclusive, well-appointed Club Lounge; complimentary packing and unpacking service; and complimentary transfer service to and from the airport. For those travelling with a larger group, The Ritz-Carlton Suite provides two connecting rooms available to accommodate up to seven guests.

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Hôtel Plaza Athénée New York Thai Suite bedroom (above) and living area (below); Plaza Athénée Suite living area (bottom left) and bedroom (bottom right)

H ô t e l P l a z a A t h é n é e N e w Yo r k (plaza-athenee.com) is steps from some of the city’s most revered attractions, including Central Park, Museum Mile, and Madison Avenue shopping. This 143-room luxury boutique hotel has been the home-away-from-home 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.

The 26 suites curated by Hôtel Plaza Athénée New York each display their own individual decor and unique ambiance. While one suite features stunning Art Deco design elements with lush plum-colored furnishings, another shows off a Thai-inspired sensibility through bright white louvered paneled walls with a Plantation Shutter pattern.

Offered in two color schemes – red and yellow – the one-bedroom duplex Penthouse suites feature a main living room on the 16th floor and a bedroom with solarium and an expansive outdoor terrace on the 17th floor. At 1,972 square feet, these expansive suites offer a media room with 60-inch television, dining area for six, and one and a half bathrooms.

One done in classic French style and the other with a distinctive Thai influence, the property’s two Presidential Suites are located on the 8th and 9th floors. Facing quiet, tree-lined 64th Street, these spaces can contain between one and four bedrooms resulting in 1,410 to 2,200 square feet. Additional features include large walk-in closets, a living area with hardwood floors, and an additional half bath.

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Guests can dine at either of the charming on-property venues: Arabelle with its classically chic menu highlights local and organic ingredients and Bar Seine is an intimate cocktail lounge graced with rich velvets and an authentic leather floor, which serves a delightful afternoon tea as well as sophisticated evening cocktails. Adjoining Arabelle, guests will find

the private 280-square-foot dining room with seating for up to 25 guests for breakfast, lunch or dinner. This room offers the utmost in discretion and charm, whether guests are planning to share cocktails or a four-course meal.

Guests of Hotel Plaza Athénée New York will feel immediately at ease upon arrival to this magnificent, intimate space.

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Acqualina Resort & Spa on the Beach Acqualina Resort & Spa (acqualinaresort.com) is a place where the charm of a Mediterranean villa meets elegance on the beach.

A seaside luxury haven located on 4.5 beachfront acres in pristine Sunny Isles Beach, Acqualina Resort & Spa features 98 impeccably appointed guest rooms and suites and 188 residences with breathtaking views of the Atlantic Ocean, world-class dining including Il Mulino New York, three oceanfront swimming pools, spacious meeting rooms and an innovative marine biology-based children’s program. A variety of lavish interior and exterior venues provide an ideal background for opulent weddings and memorable events.

Acqualina Spa by ESPA, the first ESPA-branded spa in the United States, provides guests with an exquisite 20,000-square-foot, two-story tranquil sanctuary of excellence and relaxation. A family owned and operated property, Acqualina is a recipient of the coveted Forbes Travel Guide Awards for both the hotel and spa and the AAA Five Diamond Award.

In early 2019, Acqualina Resort & Spa, unveiled the new Grand Deluxe Three-Bedroom Oceanfront Suite located on the 32nd floor of the ultra-luxury resort featuring sweeping views of the Atlantic Ocean and Miami skyline. Designed by Stephanie Trump and Deborah Yager Fleming, the resort’s ownership team, together with Florida-based design firm SBI, the suite’s elegant styling and contemporary glamour carries the magnificent ocean grandeur throughout the interior design.

The white, blue, silver and gray palette combined with modern and traditional elements creates a tranquil-luxe experience. The elegant entry foyer with chic marble flooring has three round mirrored sconces, linear polished nickel light fixture and hand painted wallpaper.

The suite’s expansive living room features modern end tables with a geometric design pattern, a 65-inch 4K TV, a flush mount chandelier and elegant drapery adorns the floor-to-ceiling window. The sitting area has a queen sofa sleeper with quilted back cushions and accented pillows, antique brass coffee table and an area rug. There is also a serene gathering area with a sleek writing desk and lounge chairs for four.

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Grand Deluxe Three-Bedroom Suite living area (above), bedroom (bottom right) and kitchen and breakfast nook(bottom left)

A full gourmet kitchen has designer Arctic white quartz countertops with full backsplash, a Sub-Zero built-in refrigerator/freezer, microwave, dishwasher, stainless-steel sink, and fully stocked private bar. The dining area has a Ralph Lauren Baxter metal shade chandelier, bay window and floor-to-ceiling views of the ocean, two bar stools and dining table for four people.

There are three-bedroom options including an oceanfront master bedroom with king-size bed, a large bedroom with two twin beds with a wall-to-wall panel and a bedroom with a queen bed. All beds are outfitted with Frette duvet covers in light gray. In addition, there are three private bathrooms.

The oceanfront master bedroom with terrace access is furnished with a midnight blue rug, a king bed, walk-in closet, side table with nightstand, high definition TV and a sparkling chandelier reminiscent of a jewel box with its exquisite ring pattern. The master bathroom features imported marble flooring, beautiful chandelier, double sinks, custom vanity area, bathtub and glassenclosed shower.

The art reflects the warmth and the soft, luxurious lines of the interior. All of the art was personally selected for its ability to set the mood no matter the occasion; whether you are coming from the beach to enjoy a glass of wine or relaxing for an intimate evening.

Touchpad thermostats, Lutron lighting control and high-speed Wi-Fi connection are available throughout the suite.

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Omni Berkshire Place Clockwise from top right: The Apartment living area, dining area, bedroom, entrance, and kitchen

Omni Berkshire Place (omnihotels.com/new-york-berkshire) is conveniently positioned near Central Park, Times Square, Rockefeller Center and Radio City Music Hall. Guest rooms 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 399 luxury guest rooms including 45 suites, a 17thfloor 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.

Guests will embrace the experience of staying in one of Omni Berkshire Place’s incredible suites. The Penthouse Suite, named in honor of Rodgers and Hammerstein, who first met at Omni Berkshire place to collaborate on the 1942 musical Oklahoma!, features a 500-square-foot wraparound terrace with skyline views and elegant furniture, dining room, living room, one and half baths and a spacious master bedroom. Located on a top floor with sweeping views of Manhattan, the space is 1,000 square feet, sleeps up to four adults, and is great for private events.

The ultimate New York townhome, The Apartment, is inspired by the high fashion of New York design. This expansive apartment is spacious, light and bold. Featuring intricate textures, tailored design and curated art, it truly feels like a luxury New York home. Modern and en vogue, yet timeless, it offers a large living space with a study and separate dining room that opens to a private terrace with stunning views of the city.

The Madison Suites, of which there are 17 one-bedroom corner units, offer 781 square feet of comfortable space and are great for meetings. Separate living areas overlook 52nd Street and Madison Avenue.

The 5th Avenue Suites, of which there are six, vary from 450 to 500 square feet, and are great for the more casual traveler. Offering Fifth Avenue views and several featuring balconies or terraces, the units are located on floors 14 and above and have separate living rooms, sleep up to four adults, and can accommodate a rollaway bed.

As any visitor will attest, the customized service and elegant accommodations of Omni Berkshire Place provides a truly memorable experience.

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Restaurants Cameron Mitchell Restaurants Camrton Mitchell in his home office (above); Ocean Prime Washington D.C. entrance (below) and bar (bottom)

Founded by Cameron Mitchell in 1993, Cameron Mitchell Restaurants, LLC (CMR) has built a diverse portfolio of varied concepts, ranging from multi-location upscale destinations to single neighborhood favorites. Today, CMR operates 36 restaurants under 16 different concepts, including Cameron Mitchell Premier Events, which oversees four venues in Columbus, Ohio, where Cameron Mitchell first began his restaurant business. The Ocean Prime concept has 16 locations in 13 states.

The various concepts have received numerous culinary, leadership, entrepreneur, community service and readers’ choice awards. The award-winning Ocean Prime delivers an extraordinary experience with stunning settings, an impressive menu of seafood and prime cuts of steak, signature cocktails, a Wine Spectator-honored wine list and truly genuine hospitality. From the kitchen and bar, there is an appreciation for ingredients that comes through in every dish. The menu is classic and yet there is a modern sensibility to the preparations which range from lighter fare like a shellfish cobb salad and sushi, or more indulgent items like a smoking shellfish tower, juicy steaks and decadent desserts.

Each Ocean Prime location is designed and inspired by the unique energy of the city where it’s located. With stunning spaces, luxe details and truly exceptional service, Ocean Prime is an ideal place to socialize, talk business, celebrate and indulge.

CMR opened Ocean Prime Chicago in April 2019, and a location at the Denver Tech Center in fall 2018. In 2018, CMR celebrated its 25th anniversary. CMR commemorated the anniversary by making a $25,000 donation to the Mid-Ohio Foodbank as well as distributing box lunches to Serving Our Neighbors (SON) Ministries and the Homeless Families Foundation.

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Restaurants LDV Hospitality LDV Hospitality (ldvhospitality.com) is an NYC-based boutique hospitality group, creating “La Dolce Vita” for guests through signature restaurants, bars and bespoke concepts created for hotels. In 2008, John Meadow founded LDV Hospitality to the critical acclaim of flagship concept Scarpetta, followed by signature restaurants American Cut and Dolce Italian. Today, LDV owns and operates 27 food and beverage venues in eight cities throughout the country. In addition to its three signature brands, LDV develops bespoke concepts for hotels and resorts, working with iconic partners such as The James NoMad in NYC, Fontainebleau M i a m i Beach, Gur ney’s Resorts Montauk, The Cosmopolitan Las Vegas and others.

2018 was a pivotal year for LDV Hospitality.

After 10 years of expanding the Scarpetta brand, the flagship Scarpetta restaurant that had been a part of the bustling Meatpacking District since inception, moved locations to the NoMad district in NYC. The objective for the move was to create a larger, bolder space and offering for its guests while staying true to the DNA of the design, signature menu items and the staff.

Scarpetta has always been informal, comfortable and elegant, grounded with a passion for old world hospitality. It is the quintessential New York City restaurant. Guests have been very receptive to the new location, and the LDV team has found that they enjoy ordering several dishes to share for the table, as opposed to the earlier years of Scarpetta when the preferred style of dining was more individualized. Rather than the structured approach, the new menu and location was built for sharing and conviviality.

To further the notion of a true social experience, Scarpetta’s new location offers guests the option to go downstairs after dinner to enjoy LDV’s sister cocktail lounge, The Seville. The Seville is an old-school New York social cocktail lounge built for today, offering an eclectic mix of live music, an elevated cocktail program, lite bites and optional table-side service. With this new scenario, LDV strives to provide guests the opportunity to have a full night out all in one property.

In addition to the restaurant and cocktail lounge, LDV operates all of the food and beverage at The James NoMad Hotel, inclusive of in-room dining and banquets with meeting space and a ballroom. This type of multi-layered F&B experience positioned in the hotel space is where LDV plans to focus its growth going forward.

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There are five projects in the pipeline spanning from 2019 to 2022, each of which will open within a hotel and a majority having the same model as Scarpetta and The Seville’s fluid social experience. LDV will soon announce its next opening, slated for late spring 2019, which will be the first international project in the portfolio.

As of the end of 2018, LDV Hospitality’s portfolio included 27 total outlets, located in a combination of independent spaces and 10 different hotels across 8 U.S. cities; 1,260 employees with 27 located in the corporate office.

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LDV Hospitality Founder John Meadow (above) and views of Scarpetta in New York City

LEADERS 125

ifestyle Custom Treatment for Luxury Pens An Interview with Giuseppe Aquila, Chief Executive Officer, Elmo & Montegrappa S.p.A. EDITORS’ NOTE In nearly twenty get to impose their personality on the years at the helm of Montegrappa, object – and not vice versa. So much Giuseppe Aquila has been a driving of what is available in the market tries force in legitimising writing instruto neutralise taste: it’s antithetical to ments as a global luxury category. the notion of a tool designed for perAfter leaving college, Aquila spearsonal expression. headed the brand’s international What innovations does the expansion with a renewed commitplatform bring? ment to luxury and private bespoke Full customization, above all. production. His vision of pens as Users can control settings for eight difobjets d’art won awards and helped ferent parts of the pen, and preview foster a thriving collector commutheir design from any angle as either nity. Over recent years, a focus on Giuseppe Aquila a deluxe fountain pen or rollercontemporary customer experience ball. Real-time pricing is displayed has seen him open more than a dozen mono- throughout the design process. brand boutiques and break new ground with We have also introduced a new type an avant-garde approach to materials, design of sculpted resin with a striking look and and engineering. handle we think will appeal to the techm inded. A l o n g s i d e t h e s e , a r a n g e o f COMPANY BRIEF Italy’s first pen manufac- woods, engraved metals and our complete turer, Montegrappa (montegrappa.com), has archive of celluloid colors make it possible been setting standards for prestige writing to achieve much more than customers know instruments for more than a century. In the early from our production pens – or anybody twentieth century, portable fountain pens were else’s for that matter. the technological revolution of the day, and the Venetian maker’s earliest customers included the young Ernest Hemingway. Today, pens offer refuge from digital technology. For owners ranging from Quincy Jones to Sir Jonathan Ive, Montegrappa pens are a catalyst for creativity and a symbol of personal identity.

Montegrappa’s latest launch – Montegrappa Configurator – is the world’s first full customization platfor m for fine pens – objects that have been undergoing a renaissance in recent times. “Create the most interesting pen in the world” is the challenge laid down by Montegrappa Configurator, a newly launched platfor m that gives users unprecedented opportunities to create fine writing instruments to their exact requirements. Handmade at Montegrappa’s custom shop close to Venice, the custom designs take less than two weeks to go from drawing board to desk. The launch of the service represents a major milestone in the 106-year history of the luxury marque.

What was the vision behind Configurator?

It’s an idea that comes from the perspective of the user. As discreet accessories, pens can be used to say so much – both literally and figuratively. With Configurator, customers who want the sensation of owning a beautiful pen 126 LEADERS

How do you define the target market for Configurator?

Our first order last month came from a Noir fiction writer who wanted a fountain pen in black celluloid. Our customers range from creatives to corporations, or individuals

Montegrapps’s Configurator allows pen enthusiasts to create their own custom-designed rollerball or fountain pen

who want a pen to match their watch, car or boat. Many simply see the potential of pens as statement pieces and are intrigued by the possibilities. Diehard pen enthusiasts are also enjoying the chance to make the Extra – our flagship model – exactly the way they’ve always wanted it.

Does the move to customization represent a pivot by Montegrappa?

It’s a pivot in the sense that we want to make the experience of discovering fine pens as delightful as possible to a wider audience. We know how difficult many find it to fathom the pen market, or understand where the value points lie.

But our commitment to production pens and brand loyalists remains unchanged. In fact, we have substantially increased the rate and originality of new releases throughout this year, and have big plans for 2019.

Particularly since we released the Q1 limited edition in 2015, the market has taken notice of us as leaders in technical and design innovation. The launch of Configurator is the latest step in that direction.

How did you build Montegrappa Configurator?

We developed the rendering software in collaboration with a technology team from the University of Udine, here in Italy. Behind the scenes, we have made a huge investment in processes and componentry, so as to be ready to respond to any order. In all, the system took about two years to develop, test and refine. It has been a large undertaking for a family company, but we are delighted with the decision we took.

What is your outlook for fine pens in general?

Things have been going well for us, particularly at the upper end of our range.

More and more, people are looking for distinctive accessories to break norms and expr ess themselves. They like to know which products and makers are bywords for quality and status.

At a more general level, the distance people are putting between themselves and their digital devices is bringing more a t t e n t i o n t o p e n s . We s e e f e w p e o p l e who truly prefer typing and tapping on screens over actual writing. The intimacy and deep functionality of pens are difficult to replicate.

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VOLUME 42, NUMBER 2

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ifestyle The Watch in Steel An Interview with Jordy Cobelens, Chief Executive Officer, TW Steel EDITORS’ NOTE Born and raised in Amsterdam, Jordy Cobelens’ father, Ton, forged his son’s interest in timepieces as a watch distributor in the Netherlands. When Ton started his own watch brand, he honed his entr epr eneurial skills at school by selling watches to the fathers and relatives of his friends. During this time, as an accomplished DJ, he also founded his own record company, JC Records. In 2005, he entered the Jordy Cobelens watch business full-time, seizing on the opportunity to head up TW Steel and front its development. Cobelens was named Ernst & Young’s Emerging Entrepreneur Of the Year for 2011 in The Netherlands.

COMPANY BRIEF TW Steel (twsteel.com), the name meaning “The Watch in Steel,” concentrates exclusively on developing and leading the affordable oversized watch market and was established with the introduction of its first collection in 2005 in Amsterdam. With over 200 models in the collection, TW Steel is available in over 100 countries with leading sales in Europe, North America, and Asia.

What opportunity did you see when you launched TW Steel in 2005?

When we launched TW Steel, we saw there was a gap in the oversized watch market and a need for a product with a large face at a good price point.

We didn’t have a plan to create a global brand and invest a huge amount of money in marketing. We just saw that there was gap in the Dutch market in this segment, so we jumped in and launched in Holland. After the initial success there, we started to look at international expansion.

Now TW Steel is so big that people expect there is a complicated story behind it, but it was so straightforward and easy for the jewelers to take it on because there were only four different styles.

The simplicity of the concept was an important part of the success of the brand.

How have you been able to provide a high-quality product while keeping the price affordable to a broad market?

It’s simple – volume. In the beginning, operational costs were low, so the margins 128 LEADERS

on the product were healthy for a new business.

TW Steel became so successful because we had sales first and then we started to invest in marketing. The sales were already there to provide the revenue to support the marketing.

The margins remained the same, but the volume increased, which allowed us to support growing the brand around the world.

Have you focused on introducing additional models within the current collections or developing new collections?

Both. Over the past few years, we have continued building on the initial models we developed, but some models were phased out because they were no longer selling well.

We still sell a few styles we started with in the early days, although we have modified them.

Over the past 12 months, we have introduced many new collections and styles with even higher specifications. We decided to use more premium, higher-quality Swiss-made movements, which sets us apart from the fashion brands. This has been successful.

TW Steel is launching the ACE Genesis collection. Will you discuss this collection?

Our retail partners around the world have continued to tell us that a price point above $500 is difficult. The lower end or higher end work well, but anything between $500 and $5,000 is difficult.

However, we developed some really beautiful designs in the $1,000 to $1,500 price point and they sold extremely well.

We were convinced that the consumer is still looking for this range of product, which is why ACE Genesis was created.

My dad and I sat down to design this collection without looking at what the production costs or retail value was going to be.

We wanted to design the next level product for TW Steel. Only when the design was completed did we start to analyze the cost in the retail stores.

We wanted to make this product for our end consumers. This is why we came up with the preorder strategy where the consumer can buy the product before it is produced at a special preorder price.

TW Steel ACE Aternus (left); ACE Genesis (above)

I can confidently say this is the best offer in the market by far – there is no one offering a product like this with the look, feel, specifications and level of quality at this price point.

All the models are limited editions and, because we’re offering it as a preorder, we have a more competitive retail price. Both prices are very competitive, but the preorder price is the best deal one can find.

What are the key global markets for TW Steel today?

Our key markets are Europe, which is still very strong, Australia, the U.S. and Central America. Mexico is also strong for us and we do well in the Philippines. In the future, we see growth in India and China.

There is a lot of potential in each of those markets.

Is the TW Steel client predominantly male and are there plans to expand your offerings for women?

At the moment, we’re about 80/20. We are a masculine brand, which we will always be, but there are many women out there that like a masculine looking watch.

This year, we are launching a new female collection which will still have the bold look of TW Steel but with more feminine elements integrated into it.

Will you discuss the collaborations you have been able to form and how valuable this has been in building brand awareness?

Those partnerships have been incredibly important for TW Steel. Associating ourselves with high-profile individuals puts the brand in the position we want it to be.

It’s also about creating content from a spokesman for the brand that can explain what we stand for and what they stand for, which resonates with the consumer.

Many of these people don’t need to do it for the money. They like the brand because they see something they personally enjoy and that they feel their fans will enjoy wearing.

We include our partners in the process when we design a watch. When they see the final product, they express that it’s exactly what they would wear. That passion and enthusiasm gets across to our fans as well.

It is extremely valuable to have these ambassadors for the brand.

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