LEADERS Magazine July, August, September 2019 Volume 42, Number 3

July, August, September 2019

Volume 42 Number 3

IDENTITY LEADERSHIP 24 A CENTENARY STORY OF C.V. STARR & CO. 30 SIEBEL

WILLIAMS

KANT

DIVERSITY & INCLUSION 32 CORPORATE WELLNESS 66

CALDER

HELANDER

OUTLER

CINCINNATI 76 ZURICH NORTH AMERICA 80 WOMEN LEADERS 94

BARRETT

BERMAN

MCLEAN

HOSPITALITY 102

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On the Cover Thomas M. Siebel, C3.ai - 8

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

Ronald A. Williams, RW2 Enterprises LLC - 12 Surya Kant, Tata Consultancy Services (TCS) - 16 Richard D. Calder, Jr., GTT Communications, Inc. - 18

Photo Credits: Cover, 12 - Williams - ©THE BOEING COMPANY; Cover, 16 Kant - www.danbigelow.com; Cover, 84 Helander - Ralph Alswang; 4, 91 - ©David Garb; 6, 104 - ©David Cleveland; 6, 107 Giuseppe & Sons - ©DJoseph; 22 - ©C. Kurt Holter; 32 Radwaner ©Dick Duane; 40 Caterino - Simon Productions; 44 - Larry Lettera/Camera 1 48 - ©www.claudiapaul.com; 54 - ©Dave Cross Photography Inc.; 60 - Derek Dudek; 66 Sekler - ©Taylor Hooper Photography; 84 - ©Lindsay Hite; 88 - ©www.jsnphoto.com; 92 - ©Geoffrey Tischman Photography; 94 - ©Kholood Eid; 99 - ©Karen Fuchs; 100 - ©Schram; 102 author - ©Arrow Studio LLC

Kara Helander, The Carlyle Group - 35 Shawn Outler, Macy’s, Inc. - 39 John F. Barrett, Western & Southern Financial Group - 78 Melissa A. Berman, Rockefeller Philanthropy Advisors, Inc. - 94 Jodie W. McLean, EDENS, Inc. - 96

2 LEADERS

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VOLUME 42, NUMBER 3

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Contents INTERVIEWS Digital Transformation Thomas M. Siebel, Chairman and Chief Executive Officer, C3.ai

8

Fulfilling a Passion George “Monk” Foreman III, Founder, EverybodyFights

84

A Centenary Story of C.V. Starr & Co. New York City – June 3, 2019

30

Learning to Lead Ronald A. Williams, Chairman and Chief Executive Officer, RW2 Enterprises LLC

12

A Focus on Excellence Surya Kant, President – North America, U.K. and Europe, Tata Consultancy Services

16

Simplicity, Speed, Agility Richard D. Calder, Jr., President and Chief Executive Officer, GTT Communications, Inc.

Trex’s Turnaround James E. Cline, President and Chief Executive Officer, Trex Company, Inc.

88

CORPORATE WELLNESS A LEADERS ROUNDTABLE DISCUSSION

18

Changing the World With 3D Printed Electronics Amit Dror, Chief Executive Officer, Nano Dimension Ltd.

Empowering Data-Driven Healthcare Keith R. Dunleavy, M.D., Chairman and Chief Executive Officer, Inovalon Holdings, Inc.

90

66

22

Meeting the recruiting and hiring challenges are dramatically changing the future of work Al Crook, Head of HR Business Partners Zurich North America

Identity Leadership Stedman Graham, Chairman and Chief Executive Officer, S. Graham & Associates

80

24

Security Solutions Richard “Bo” Dietl, Founder and Chief Executive Officer, Beau Dietl & Associates

28

4 LEADERS

The Story of the ASPCA Matt Bershadker, President and Chief Executive Officer, American Society for the Prevention of Cruelty to Animals (ASPCA)

92

Innovation is one of the keys to attracting the workforce talent of the future Brandon Fick, Chief Underwriting Officer, Zurich North America

82

VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION A Record of “Firsts” Brad S. Karp, Chairman, and Valerie E. Radwaner, Deputy Chair and Partner, Paul, Weiss, Rifkind, Wharton & Garrison

“Be Yourself, Bring Your Best” Smita Pillai, Chief Diversity and Inclusion Officer, Dow Jones

Driving Engagement Melique Jones, Global Head of Diversity, Inclusion and Talent Pipeline, Skadden, Arps, Slate, Meagher & Flom LLP

Create, Articulate, Regulate and Evaluate Lori George Billingsley, Chief Diversity and Inclusion Officer, The Coca-Cola Company

People, Market and Society Randall Tucker, Chief Inclusion Officer, Mastercard

34

45

The People Business Darcy Mackay, Chief Human Resources Officer, CBRE

Driving the Best Outcomes Kara Helander, Managing Director and Chief Inclusion and Diversity Officer, The Carlyle Group

An Inclusive Culture Dr. Terri Cooper, Chief Inclusion Officer, Deloitte

A Tool for Social Justice Dorcas Lind, MPH, Assistant Vice President of Diversity and Inclusion, Montefiore Medical Center

32

35

A Healthcare Innovation Company David L. Casey, Vice President, Workforce Strategies and Chief Diversity Officer, CVS Health

36

An Unrivaled Place for Talent Lareina Yee, Chief Diversity and Inclusion Officer, McKinsey & Company

37

Inclusive Leadership Sonia Cargan, Chief Diversity Officer, American Express

38

America’s Department Store Shawn Outler, Executive Vice President and Chief Diversity Officer, Macy’s, Inc.

39

Entrepreneurship & Diversity Latino Entrepreneurship and Economic Growth A discussion of EY’s recent collaboration with the Peterson Institute for International Economics around the contributions Latinos make to economic growth in America

40

44

46

The Power of Individuality Jaleh Bradea, Chief Diversity and Inclusion Officer, Vivendi SA

47

A Legacy of Excellence Gary C. Butts, M.D., Chief Diversity and Inclusion Officer, Mount Sinai Health System

48

Beauty For All Angela Guy, Senior Vice President, Diversity and Inclusion, L’Oréal USA

49

PwC’s Purpose Elena Richards, Minority Initiatives and Talent Management Leader, Office of Diversity, PwC

50

An Inclusion Revolution Cristina Santos, North America Head of Inclusion & Diversity and Equal Employment Opportunity, Sanofi US

51

54

55

56

Making a Meaningful Difference Patti Clarke, Chief Talent Officer, Havas Group

57

Achieving More Jay Santamaria, Chief of Staff, Active International

58

Customer Focus Bernard Garrigues, Executive Vice President and Chief Human Resources Officer, Webster Financial Corporation and Webster Bank

60

Values Driven Cathy Fraser, Chief Human Resources Officer, Mayo Clinic

61

The Impact of Insurance Dee Lehane, Independent NED, Argo Group International Holdings, Ltd.

62

Empowering People Rahnold “Rah” Thomas, Managing Director, Accenture

Delivering Diversity Alexander Amonett, Global Leader of Inclusion, Diversity and Colleague Experience, Marsh

Marcum’s Mission Saran Johnson, Co-Chief Human Resources Officer, Marcum LLP

“You Belong” Wanda Bryant Hope, Chief Diversity and Inclusion Officer, Johnson & Johnson

Cooperation, Compassion and Innovation Le Joyce Naylor, Chief Diversity and Inclusion Officer, Cleveland Clinic

Creating Campaigns for Diverse Stakeholders Trisch L. Smith, Global Chief Diversity and Inclusion Officer, Edelman

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VOLUME 42, NUMBER 3

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LEADERS 5

Cincinnati’s Resurgence The Honorable John Cranley, Mayor of Cincinnati

76

Committed to Cincinnati John F. Barrett, Chairman, President and Chief Executive Officer, Western & Southern Financial Group

Telling a Story Richard Kessler, Chairman and Chief Executive Officer, The Kessler Enterprise, Inc.

Service and Design Michael Schulson, Founder and Chief Executive Officer, Schulson Collective

102

107

78

The Evolution of Philanthropy Melissa A. Berman, President and Chief Executive Officer, Rockefeller Philanthropy Advisors, Inc.

94

Effortless Elegance John Meadow, President, LDV Hospitality

104

Modern Luxury Kaila Pugliese, Director of Sales and Marketing, InterContinental New York Barclay

108

Enriching Community Jodie W. McLean, Chief Executive Officer, EDENS, Inc.

96

A Global Footprint Julie Leonhardt LaTorre, Chief Operating Officer, Sotheby’s International Realty Affiliates LLC

97

Delivering the Bare Maximum Jennifer McLennan, Global Brand Leader, Delta Hotels

106

Making Magic by Providing Invisible Services Victoria J. Cerami, Chief Executive Officer, Cerami & Associates, Inc.

98

HAP’s Growth Andrea Lawrence, General Counsel and Deputy CEO, HAP Investments

99

Bremont’s Journey Giles English, Co-Founder, Bremont Watch Company

Creating the Unforgettable Peter Yenawine, President and Chief Designer, Crystal Signatures

110

112

Simplifying Real Estate Louisa M. Gillen, Co-Founder, The SIMPLE Real Estate Co.

100

6 LEADERS

VOLUME 42, NUMBER 3

Dr. Joan “Rock Star” Germana by 6-year-old Charlotte

Dr. Beth “Queen” Gottlieb by 8-year-old Olivia

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See children’s healthcare differently at Northwell.edu/Cohen Dr. Joel “Super Broccoli” Brochstein by 10-year-old James

INTERVIEW

INTERVIEW

Interview

Digital Transformation An Interview with Thomas M. Siebel, Chairman and Chief Executive Officer, C3.ai

Thomas M. Siebel

EDITORS’ NOTE Tom Siebel was the Chairman and Chief Executive Officer of Siebel Systems, which merged with Oracle Corporation in January 2006. Founded in 1993, Siebel Systems became a leader in application software with more than 8,000 employees in 32 countries, over 4,500 corporate customers, and annual revenue in excess of $2 billion. Siebel is also Chairman of the Siebel Energy Institute, a global consortium for innovative and collaborative energy research for the public domain. He serves on the board of advisors for the University of Illinois College of Engineering and the University of California at Berkeley College of Engineering. He is a graduate of the University of Illinois at Urbana-Champaign, where he received a B.A. in history, an M.B.A., and an M.S. in computer science.

COMPANY BRIEF C3.ai is a leading enterprise AI software provider for accelerating digital transformation. C3.ai delivers a comprehensive and proven set of capabilities for rapidly developing, deploying and operating large scale AI, predictive analytics, and IoT applications for any enterprise value chain in any industry. The C3 AI Suite and C3 applications are proven and tested at petabyte scale, solving previously unsolvable challenges. At the core of the C3 AI Suite is a revolutionary and powerful model-driven AI architecture that dramatically enhances the productivity of data scientists and application developers while future-proofing applications against underlying IT evolution. The C3 AI Suite is 10 to 100x faster and more reliable than other solutions or DIY approaches, enabling robust delivery of production applications with 100x less code and cost. The C3 AI Suite seamlessly works with existing data storage, sources, tools, and infrastructure investment, while flexibly operating in a private, hybrid cloud, or multi-cloud environment. The C3 AI Suite supports configurable, pre-built, high-value AI applications for predictive maintenance, fraud detection, sensor network health, supply chain optimization, energy management, anti-money laundering, and customer engagement.

8 LEADERS

Did you always have the entrepreneurial spirit and the desire to build your own company?

No. I don’t think I started out to be an entrepreneur. I started out to be a computer scientist and wanted to play the game in what I then thought would be a very large industry that would change the world as I think it has. I did my graduate work in relational database theory.

When I finished my graduate work, I was recruited by a young entrepreneur named Larry Ellison at a small startup. They had maybe 20 employees in the United States and the worldwide market for relational database technology might have been $5 million. I worked with Larry and his team for about a decade building the relational database industry.

That became a large company before we were done, but it didn’t start out that way and I didn’t approach it as an entrepreneur. I approached it as a computer scientist. It ended up being a professional experience of a lifetime to be involved in the emergence of an industry and of what became one of the world’s great companies. In the course of being there for about a decade, I learned a great deal about how to run a company and I think I might have actually learned even more about how not to run a company. So when I came up with the idea to apply information technology and communication technology to the business processes of sales, marketing and customer service – a market that became known as CRM – I didn’t actually think of it as a startup.

I took the CRM idea to Larry and suggested we build this out as a division, but Larry had no interest, so I left and started Siebel Systems. What I had learned was that the idea that people are somehow genetically entrepreneurs and can drop out of college and be the next Steve Jobs is really a very long shot. I think that leadership and management come through hard knocks and mistakes and learning by experience. I learned a great deal at Oracle which made a substantial contribution to my success.

We started building Siebel Systems in 1993.

By 2000, Siebel systems had 8,000 employees in 29 countries. We exceeded $2 billion in annual revenue. Even today, it is the fastest growing enterprise application company in history by a long shot. That was unquestionably a professional experience of a lifetime – perhaps until this one.

Now, we’re at it again. We’re off in a new market, in a new field that’s an order of magnitude larger than the others I was involved with and it’s very hard, very challenging, very exciting, and very rewarding.

What opportunity did you see for C3.ai and what was your vision for creating the company?

After Larry bought Siebel Systems in 2006, I looked at the world. It looked to me that, as we were powering into the 21st century, there was a new step function of information technology coming online that was going to change everything.

This included elastic cloud computing, big data, artificial intelligence, and the Internet of Things.

At the conversion of those vectors, it looked like a massive change in the way that we think about computing and the type of problems that we solve and the types of social and economic benefit that we could realize.

I thought that this was a really exciting time in the world, so I put together some talent and we spent a decade and about a half a billion dollars building a software platform to allow large multinational corporations and governments to take advantage of these technologies to use industrial AI to solve problems that had never been solved and realize social benefit that was unrealized before. But why did I do it? Obviously, this is not about making money. When I’m done with this, no matter how successful it will be – and I believe it will be successful – it’s not going to make any difference in my life. I’ll have the same wife, same car, and the same house.

Everything is the same for me, but for those with whom I work, which is 330 people today and will be 800 people in a year and probably 2,000 people in two years, it will change their lives profoundly. It will also change the lives of our customers, whether that be 3M or the Air Force or the Defense Intelligence Agency or Royal Dutch Shell, and it will change their customers’ lives in a very positive way. So, I do this because this is my idea of a good time.

Has the company progressed as you had hoped and how big is the opportunity?

Absolutely. The idea that you can just write a business plan and then execute it is a bunch of bunk. That’s not the way the world works.

Microsoft today is nothing like the business plan that Bill Gates had when he dropped out of Harvard. Oracle today is nothing like the company that Larry Ellison founded in 1979. Apple is nothing like the idea that Steve Jobs envisioned in his garage in Palo Alto.

Markets evolve in funny ways and successful companies are companies that consist not of people executing business plans well, but of athletes who are on the balls of their feet and resilient, who can deal with adversity and market changes and VOLUME 42, NUMBER 3

unanticipated events. Athletes can figure out how to seize those opportunities and move around them. The market has evolved from where we began in January 2009. It’s in a completely different place than we anticipated. How big is it? When I joined Oracle in 1983 the worldwide market for information technology was about $50 billion.

Today, it’s about $3.5 trillion. In five years, it will be $8 trillion. We’ve seen a dramatic acceleration in the growth of the information technology market and much of it is about AI. When we look at the convergence of elastic cloud computing, artificial intelligence, big data and the Internet of Things, all of the analysts suggest that this will become a quarter of a trillion dollar software market by 2023.

2023 is in a blink of an eye; it’s tomorrow, so this is the fastest growing software market in history. It looks like an entire replacement market for everything that’s gone on for the last 30 years in enterprise application software. Nobody has ever seen a market this large before.

Is your client base primarily large global multinationals and governments or are you also focused on small- and mediumsized businesses?

We have been focused on large multinational corporations. I have pretty good relationships with these organizations and have had the opportunity and the privilege of doing business with them on a large scale whether they are AT&T or General Motors or Pfizer or Royal Dutch Shell. Honestly, there’s nobody that I haven’t had the privilege to serve at large scale be it at Oracle or at Siebel Systems or both, so we are known and we are welcome. We’re not perceived of as a startup.

The sales cycle for Royal Dutch Shell, which is the fifth largest company in the world, is about the same as it would be for selling to a bakery. It requires the same time and the same effort. It’s just that when you’re done, for one, the size of the exchange is probably three orders larger.

Our focus today is to establish a leadership position at a global scale with the leaders in defense, intelligence, aerospace, oil and gas, utilities, manufacturing and healthcare. As we enter our new fiscal year this May, we’ll be moving down market very rapidly. In the long run, this is a technology that is going to be a utility to everyone but, first, we had to get the business up and running and well capitalized, and we’re there.

Is it difficult to maintain culture when you are growing so rapidly and how important is it to keep culture at the heart of the company?

Culture is absolutely everything and I think about it more than anything. As you may recall, we had a very rich culture at Siebel Systems, but that was a culture of the end of the 20th century when you were dealing with baby boomers. Baby boomers are pretty easy to motivate. In all fairness, people learn about Maslow’s Hierarchy of Needs in school as the force that motivates people.

With baby boomers this wasn’t true. What motivates baby boomers is the compensation plan.

Whatever you put in the compensation plan, they do it. You tell them to go to Detroit, they move to Detroit. Now we’re in the 21st century and we have a much richer tapestry of human capital that consists of baby boomers, millennials, Generation X and Generation Y. They all have a different sense of history.

They have a different purpose in life, a different VOLUME 42, NUMBER 3

reason to work, and different value systems about work/life balance. It’s a much, much more interesting organizational management problem and the only way that you can manage a tapestry that rich is through culture. You can’t do it through rules.

You can’t do it through training. You need to come up with a set of cultural values that all these people share, that all these people find motivating, and use that to get everybody moving in the right direction at the right time doing the right thing.

We have a very unique culture and we don’t pretend to be everything to everybody in this new generation where people work from home or from their Uber and stay in Airbnb’s and show up at work only two days a week. That is not who we are and while we don’t pretend that our value systems are always right, we’re very clear about what our value systems are. For a certain type of psychographic, for which we very carefully recruit and very carefully select, C3.ai is a great place to work. If you’re well educated, if you have a book in your hand, if you like to work, if you like to work in teams, if work is a big part of your life, if you like to work with customers and you like to work on really challenging problems, this is a great place. People love it.

If people need to work from home three days a week or they want to coach soccer five nights a week or want to be active in their church group or want to be a stay-at-home mom or a stay-at-home dad – and, by the way, I’m not going to argue that those aren’t better decisions – they very well might be better and more wholesome decisions - but, if that’s what you need in your life, you should go to work for a company like Google and as I interview those types of people, I offer to send their resume to Eric Schmidt.

However, for a certain type of person, we’re a great place to work and we do a very, very good job of selecting that psychographic. Today, we employ 330 people. We hired 130 people last year.

We’ll give you the rough math. We had 100 open positions for which we had 26,000 applications.

We interviewed 1,700 people and hired 130. So we’ve done a very good job of selecting people who are like us.

Now, let’s look at the problem. We have to go from 300 people to 800 people in a year, and to 2,000 people in two years. Will that process scale?

That is probably the ultimate test of this company and what I think about more than anything else.

You might be familiar with a phenomenon called Glassdoor.com where people anonymously evaluate their company. I think we’re ranked as the best place to work in the world. People love working for us because we select people who will like working at a place like ours.

Are you concerned about the potential negative impacts of AI? The negative aspects of AI concern me a lot and I’m very outspoken in this area. Our applications of AI tend to be industrial and commercial applications, which generally everybody will agree are positive such as smart grid analytics. This reduces the greenhouse gas footprint of the power grid by roughly 50 percent, increases cyber security and increases the reliability of power. It’s a good thing. In precision medicine we can use AI to have more accurate disease prediction, more accurate diagnosis, AI assisted diagnosis and genome specific treatment protocols. That’s all good and allows people to live longer, happier, and healthier. It also allows for lower-cost healthcare. We can use artificial intelligence to identify problems in aircraft before they manifest themselves, so aircraft don’t fall out of the sky. These are all examples of good things.

I also think there are some very concerning aspects of AI, particularly as it relates to social media. What is going on in some of these companies in Silicon Valley today – and these are friends of mine who run these companies like Facebook and Google – is really scary. These people have figured out how to manipulate human beings, say 2.2 billion of them at a time, at the level of the limbic brain. We no longer have computers serving people. We have people serving computers. They’ve got the science of addiction down to where they can manipulate the limbic brain and manipulate the release of dopamine when somebody likes your photo or you have 15 new friends or whatever it might be. Roger McNamee just wrote a book called Zucked. Everyone should read this book; it is truly disturbing. I think it’s entirely possible that, when history is written, social media might be the single most destructive force in the history of civilization. That’s how concerned I am about AI. I am not a big government guy. I think it has a role in defense and other matters such as running a judicial system and what have you. However, I think that we have an unbelievable failure of companies to regulate themselves. We’re way beyond “do no evil.” If we do not regulate these social media companies, we will be very sorry.

What made you feel the timing was right for your new book, Digital Transformation, and what is the message that you wanted to deliver with the book?

I have spent a lot of time in boardrooms over the past ten years in places like Shanghai, Rome, Paris, New York and Chicago. I kept on hearing this refrain of digital transformation coming from the CEOs and the chairmen. First of all, this was unusual in my experience – and this is my fourth LEADERS 9

decade in information technology – for the CEO or the chairman to even be interested in information technology. Now, they’re not only interested, he or she is the leader pounding on the table mandating this thing called digital transformation.

As I engaged with people and poked at what they were thinking about, it was clear that there was really no common view, but they knew it was important. I spent quite a bit of time thinking about it and then, over the past couple years as I was writing this book, I developed a point of view on what digital transformation is all about. I took a page in this book out of evolutionary biology. When Charles Darwin came up with the idea of natural selection, he thought this was the driving force behind the speciation of the planet. He thought evolution was a continuous function, kind of like Moore’s law. Natural selection was the driving force that resulted in the evolution of species and speciation of the planet.

However, he could not explain the gaps in the fossil record, so he theorized that this was just because we haven’t found those fossils yet. It wasn’t until 1973 or 1974 that an evolutionary biologist by the name of Stephen Gould from Harvard explained it in a concept he called punctuated equilibrium. He said that evolution was not really a continuous process; it was actually highly discontinuous.

Planet earth has been around for 4.5 billion years. We’ve had life for 3.5 billion years. In the last 400 million years alone, we’ve had five mass extinction events on the planet where as much as 96 percent of the species on earth were eliminated. The most recent of these was the extinction event called the K-T extinction which took place when the meteor hit the Yucatan 65 million years ago and all the volcanoes erupted causing a massive climate change and the dinosaurs disappeared from the planet.

When the dinosaurs became extinct, so did 86 percent of the species on earth. After these mass extinction events, Gould theorizes that these are followed by mass re-speciation events. We have all these life forms with new DNA that fill the voids left by those that became extinct. In the case of the K-T extinction, the ecosystem that was occupied by the dinosaurs got filled by mammals, so that worked out pretty well for us, at least so far.

The same phenomenon, mass extinction, is taking place in the corporate world in the 21st century. If you look at the data, since 2000, 52 percent of the Fortune 500 companies have disappeared from the face of the planet; they’re gone. Where is Sears? Where is Westinghouse? Where is Kodak?

These companies are gone and how is it possible that they can just be gone? In the last year alone, 8,000 retail outlets have closed in the United States and, if you’re Walmart looking down the barrel of the gun that Amazon has pointed at you, you’re in a world of hurt.

At the same time, the companies with new DNA, like Airbnb, Amazon, Uber, Tesla, Lyft and Spotify, are taking over the world. These companies are really all about taking elastic cloud computing, big data, AI, and IoT and pointing it at the value chain, be it in transportation, housing or other fields. Look at Uber; with no cars and no drivers, they’re completely upending the transportation business systems in New York and every other place in the world.

I think that digital transformation is about recognizing that this is an existential event. This is not 10 LEADERS

led by your mediocre CEO who just wants to survive the next three years until he or she gets retirement. These are leaders who feel that they have a fiduciary responsibility to make sure that their companies survive and who recognize that they need to reinvent their companies – either they’re going to be on the train or they’re going to be on the tracks. If they can adopt this new generation of technologies so they can play the game in the 21st century, they will digitally transform themselves.

This is what the thesis of the book is about.

The book starts by addressing the parallels between what’s going on in the business world and evolutionary biology. It talks about the collision of technology and sociology and then it talks about the various components of digital technology and what they mean, how to use them, and how to go about thinking about getting the job done.

Is it a book for those who are business leaders today or for those that are starting their careers?

It’s a book written for business leaders, for CEOs, for managers, for leaders in government, in the military, as well as for people running utilities, oil and gas companies, consumer packaged goods companies, etc. I spent the past two years writing it.

In 1996, I wrote a book called Virtual Selling which basically talked about what CRM was all about, how I envisioned that market and laid out the roadmap. It was a best-selling book. I think it was a book that laid the groundwork for the CRM market as it exists today.

I would like to believe that, as people think about what’s going on with information technology in the 21st century, this book will help them put it into historical context and help them understand what the components are and figure out how to take advantage of them to better serve their customers, their employees, their shareholders, and society at large.

You are very committed to philanthropy.

What has made this so important to you and do the skills that made you a successful business leader translate to your philanthropic efforts?

The way that I do philanthropy, the skills I have in operating businesses apply directly. I’m very engaged in entrepreneurial philanthropy.

We create things. We don’t tend to contribute to things. We’re not the guys to give to the opera.

That’s not us. However, we’re very interested in and have created a number of organizations dealing with public health. We have created an organization called the Meth Project which was a very large-scale exercise in drug prevention as it related to methamphetamine, which has been hugely successful. We have a stem cell institute that we created at Berkeley and Stanford that is achieving miracles in the application of stem cell technology to therapeutic medicine. These people are curing stage IV breast cancer, for example, and that used to be a death sentence.

We tend not to contribute to organizations, but to create organizations that make a difference.

Why do we do it? There are organizations that have had a large impact on my life. I am a product of the great public education system in the United States, particularly the University of Illinois, and have benefited greatly from the many years that I spent at the University of Illinois. It’s a great privilege to be able to give back and contribute to a great

institution. I’ve had the opportunity to be associated with organizations like Princeton and Stanford and the University of California at Berkeley. To be able to make some small contribution to those efforts, be it in healthcare or energy research or the development of artificial intelligence or scholarships for underprivileged students, is a privilege.

I don’t think it’s an obligation. I’m not here to lay a guilt trip on anybody. I just happen to be in a position to make a positive contribution. I try to leave the neighborhood in a better place than I found it and I’m in a position to be able to make some small contribution on the edge of these institutions. That is what I try to do.

What advice do you offer young people beginning their careers?

There are people in my field and many of my friends and colleagues who are huge STEM advocates. They believe everybody should be studying science, technology, engineering and mathematics.

I do not subscribe to that school. The advice I give to my kids and other people is that they should study what they like. They should take advantage of the opportunity. They’re never going to be there again. If they want to study history, they should study history. If they want to study classics, they should study classics or if they like art history, study art history. They are in a candy store. They can do whatever they want. Go learn what you find rewarding. Life will work itself out just fine.

I don’t believe you need to know as a freshman in college or even as a senior in college what you want to do for a living. You should be taking advantage of every opportunity that is put before you. You have this cornucopia of opportunities to study anything you want. Study what you like.

Study what you find interesting and then figure out what you want to do.

Do you take moments to reflect and celebrate the wins or are you always looking at what is next?

I know that I am the luckiest person on earth.

I have had the good fortune professionally to be in the right place at the right time a number of times.

I don’t know how that’s possible, but when I went into the relational database industry I was as well trained in that field as anyone. I got into what was the relational market and, by the time we got a product to work, the market grew at around a 35 percent compounded growth rate for 20 years. In regard to CRM, we invented the idea. There was no market for CRM when we began. By the time we got customer relationship management down and the product to work, we looked over our shoulders and all of a sudden there was a househigh wave coming at us which was the CRM market and all we had to do was stay on the surfboard.

With AI, we did ten years of work beginning when there was no market and, at about the time, we got a product to work all and of a sudden we’re looking at this tsunami scale wave, and the game is figuring out how to stay on the surfboard. The extent to which we have been successful is because we have repeatedly found ourselves to have been very fortunate to be in the right place at the right time and then manage not to goof up the opportunity.

Do you attribute this to skill or luck?

It’s like when you see Tiger Woods win; is that skill or is that luck? I think if you train hard enough, for some reason, you get a lot of lucky bounces. Funny the way that works.

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VOLUME 42, NUMBER 3

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.

INTERVIEW

INTERVIEW

Interview

Learning to Lead An Interview with Ronald A. Williams, Chairman and Chief Executive Officer, RW2 Enterprises LLC

Ronald A. Williams

EDITORS’ NOTE Prior to his current role, Ron Williams served as CEO and Chairman for Aetna. He is one of only 16 African Americans to have been CEO of a Fortune 500 company. He sits on the boards of American Express, The Boeing Company and Johnson & Johnson. He was appointed to and served on President Obama’s President’s Management Advisory Board from 2011 to 2017, where he worked to bring the best of business practices to the management and operation of the federal government. Black Enterprise magazine has named him Executive of the Year and he has appeared on CNBC and Bloomberg. He holds an M.S. in Management from the Sloan School of Management at the Massachusetts Institute of Technology.

COMPANY BRIEF Through RW2, Ron Williams (ronwilliams.net) counsels C-Suite corporate executives on the development of strategy and on how to achieve transformational leadership grounded in core values, and the keys to successful board service. He works with private-sector and nonprofit groups to address critical societal needs, including how to transform American healthcare so that it creates more value for consumers.

What was your vision in creating RW2 Enterprises?

RW2 Enterprises is focused on human capital in a variety of ways. It focuses on coaching at the C-Suite level. It also focuses on doing research in areas that advance the human capital discussion. For example, we did a major study with The Conference Board on millennial leaders and how the C-Suite envisions the skills, competencies, and experiences that millennial leaders need to develop to move into the C-Suite, in contrast to what millennials believe is necessary. That was quite interesting.

Last year, I coached appr oximately 1 6 5 different C-Suite executives to help them confront problems of transformational change, new assignments and new groups. I spent a good deal of time doing that. RW2 is 12 LEADERS

also a central location for my board work as well as the central focus for my private equity work, where I partner with Clayton, Dubilier & Rice. I currently chair two portfolio companies in the healthcare space, agilon health and naviHealth.

RW2 is an entrepreneurial venture.

When you were leading large companies such as Aetna, did you still take an entrepreneurial approach?

I did. Big companies are a collection of businesses. People think about Aetna as insurance. That’s correct, but we had insurance to serve small and mid-sized groups, insurance to serve individual businesses and insurance to serve large and national accounts. We also had a Medicare business, a Medicaid business, a dental business, and a data analytics business. In order to grow when you have a huge earnings base, your existing lines of business must grow, but the future is always in innovating and creating new businesses, which is entrepreneurial.

I actually had been an entrepreneur earlier in my career, and I started two businesses before I joined Aetna.

Is innovation more challenging once a company reaches a certain size and scale?

Yes, it is. If you think about a large organization that has been structured over time to fulfill client and stakeholder expectations, it is really an organization that has been built to do the work of yesterday, and innovation is the work of tomorrow. If you have 50,000 employees, all of those employees, by and large, are there doing the work of yesterday.

This focus on the work of yesterday makes innovation hard, and that’s why sometimes companies build skunk works. They take many of the high-potential talent and send them off to create innovative new lines of business. That’s also why companies do acquisitions and generate growth in new lines through acquiring skills, competencies and attitudes that are necessary to innovate.

How have the roles and responsibilities of a board member evolved and how do you define the role today?

I have to say that I came after what is referred to as the Golden Age of board service, when it included trips to faraway places, often including spouses, as well as golf outings and dinners.

I think board service today is an obligation that you take on to help an organization have a great long-term future. The board is the only

entity that transcends a CEO in the enterprise.

The work can be challenging, depending on what is going on in the environment. The rule today is, “Noses in, fingers out.” Noses in extensively and vigorously, but keep your fingers out because you don’t know what management knows and you will never know because you don’t think about the company 24/7 as they do.

I think boards need a balance of skills, but some portion of the board should be those who have been CEOs as they understand what is involved in actually running and governing a large enterprise.

The title of your new book, Learning to Lead, would seem to have a premise that leadership can be taught. Is that your view and what do you want to convey through the book?

I do believe leadership can be taught.

Some people may have a higher propensity that makes it easier to learn, but I think the fundamentals of leadership can be learned. They can also be unlearned.

The book came about because I got a lot of calls from CEOs who needed practical advice on leadership issues and challenges they were facing. I got the same calls from people who found their way to me mid-career, perhaps heading into jobs as a division president or even chief operating officer roles in a company. As I did talks at some of the universities, colleges and graduate schools, I had people entering new careers looking for practical tips.

This book is really about practical advice and tools that can help leaders, whether they are figuring out how to lead themselves into early stages of success, or they are mid-career and taking on new challenges leading groups of people, or even if they are already leading an organization.

I’ve learned that people think about these skills as hierarchical. They really are not hierarchical. When you are the CEO, you must revisit that skill of leading yourself or revisit those competencies around leading others. So my book really is a toolkit to be visited and used depending on what your needs are.

I also have had access to some great executives who have had great careers. Ken Chenault of Amex was one of them. Others were Pat Russo, who led Lucent Technologies, Ian Davis, who led McKinsey, JD Hoye, who runs a huge nonprofit called NAF, as well as Ursula Burns at Xerox. Their experience in going through VOLUME 42, NUMBER 3

that process of learning to lead themselves and learning to lead people and organizations, along with my own experience, really is the basis for the book.

What advice do you offer to young people who hope to lead an organization during their career?

I’ve mentioned the study of millennial leaders that I did with The Conference Board. We looked at the skills and competencies that millennial leaders thought were necessary to move into the C-Suite, and then we also looked at the same views from those currently in the C-Suite.

We found some really interesting discrepancies. The C-Suite placed enormous emphasis on what I will call fundamental business competency: understanding how the business operates at a molecular level and being in a position to create value. That ranked much lower in the hierarchy of the millennial leaders.

Millennials also, as a group, were quite comfortable with certain kinds of risk, but uncomfortable with other kinds. For example, they were very comfortable walking into the CEOs office and telling them how to run the business. On the other hand, when asked to take on a risky assignment, they were much less comfortable.

There was a mismatch between what the CEOs believed the millennials would need to move into the C-Suite versus the millennials’ beliefs. It is not clear who is right, but I’ll put my money on the CEOs. This outlines a developmental challenge that companies are going to face, because the millennials believe much more in hierarchy than I ever thought they would. They value hierarchy much more than the CEOs partly because, if there is no hierarchy, you can’t get promoted.

Are these leadership skills and lessons being taught at universities?

One of the things that would help students develop these skills earlier, not just at the university level, but at the high school level, is internships. There is no substitute for working with other colleagues and peers early on and understanding the role of collaboration in business today. Very few things can get done

This book is really about practical advice and tools that can help leaders, whether they are figuring out how to lead themselves into early stages of success, or they are mid-career and taking on new challenges leading groups of people, or even if they are already leading an organization.

without collaboration among people with a range of skills – digital, marketing, product innovation, legal, regulatory, etc.

So people need internships sooner. They need to get exposure earlier and perhaps even rotate going to school with going to work so that they keep the theory and the practice in sync as they move through their educational process.

Where do you see the U.S. healthcare debate today and are the right issues being addressed?

Unfortunately, I think we are getting a lot of slogans rather than a fundamental, thoughtful discussion that leads to bipartisan solutions.

You can’t solve healthcare with single-party solutions, and it doesn’t matter whether it is the Democrats or the Republicans.

This is a major issue that requires confronting some really important issues such as the moral obligation that we have to make certain that everyone has access to certain healthcare services; making certain that healthcare is affordable; and coming to a conclusion about

You can’t solve healthcare with single-party solutions, and it doesn’t matter whether it is the Democrats or the Republicans.

VOLUME 42, NUMBER 3

where the individual’s responsibility begins and ends, and where our society’s responsibility begins and ends. We need to make certain that we don’t destroy 20 percent of the GDP of the country with healthcare solutions that haven’t been well-thought-out.

At this point, I see policymakers engaging much more in slogans and political maneuvering than I do actually engaging in a practical discussion that brings all parties and stakeholders, particularly the clinical community, to the table to sort this out.

Will this need to be a public/private solution?

I think it has to be a public/private solution. I think that the entities who actually operate hospitals and health plans, and the physicians who deliver care, all have to be actively involved. If you have only political input, politics will overrule policy, and we won’t end up with a solution that is economically viable, practical, and produces affordable care and great outcomes for patients.

How critical is diversity and inclusion as a top priority for leading companies today?

I think it’s extremely important. It’s a job half-done. I am one of a very small number of African Americans who has ever been a CEO of a major corporation. There are three now, and before long, there may be fewer. The pipeline is not robust. The same can be said if we are talking about gender, both in the CEO role and on the board. We have a lot of work to do.

Our businesses have to be reflective of the customers we serve. We have an obligation to develop the talent pipeline so that people get the experiences and competencies necessary to demonstrate that they can have the kind of impact on business that I had, for example. I think that only happens when there is CEO leadership and board leadership in making certain that candidates for jobs represent a broad pool.

I am doing a search now for one of my portfolio companies. We are looking for a chief human resource officer, and I can say that when I worked with the search firm, the first set of candidates they brought me was not terribly LEADERS 13

diverse. We had a heart-to-heart talk, and it was amazing how more diverse candidates came from a more rigorous review of the pool of candidates. Now, we’ll pick the best candidate for the company, but it’s amazing, when you broaden the pool, how often the best candidate turns out to be a woman or a person of color or some other constituency.

Will you discuss the importance today of leading companies having a purpose broader than just the bottom line?

I think that not only is it a responsibility, but I think it’s also good business. Capitalism exists with the permission of our society, and so businesses have to be viewed as contributing to the greater good. While the CEO and the CFO can get very excited about increasing EPS 15 percent year-over-year, most employees want to be part of a clear and elevating goal or mission.

Having that mission and goal, which is good for society and good for the company and good for the employees, is extremely important.

Articulating that and having a values-based, high-performance business is really, I believe, the best strategy.

In my book, I talk about the fact that values-based, high-performance is the best way and, I would say, the only way I would want to operate. Ian Davis pointed out that in his work, he had seen many high-performing organizations where the driving vector was fear or financial remuneration. One of the things the CEO has to do is to make a conscious choice about what they stand for and what they believe the values of the company dictate about how the organization will govern itself. Personally, I believe in values-based leadership and converting that into a high-performance model for operating a business.

How much does income disparity concern you and what role does business need to play in addressing this issue?

It is always a concern when we have people that are not able to participate in the quality of life that people on the upper end of the scale are able to experience. I think the answer is not to redistribute the resources. The answer is to grow the pie. The answer is to make certain that we are creating opportunities and paths for people who otherwise do not have paths.

One of the philanthropic activities I am involved in is a group called NAF, which Sandy Weill started. It serves 100,000 public high school

Capitalism exists with the permission of our society, and so businesses have to be viewed as contributing to the greater good.

students who are in academies that are focused on finance, insurance, information technology and health science. These are high school students who are from both urban schools and rural schools who would not normally have exposure to these careers and occupations, nor to the skill sets necessary to be successful in them. These programs give kids the motivation and incentive to graduate from high school and go to college.

I think we need more programs that really link that early career-based experience in high school and that give kids an understanding of the importance of getting a foundation that enables them to go to college or to get other kinds of training that leads them into a career where they can have a good life.

How do you describe your road to success and was it a difficult journey?

It was not easy for me. If I look at the cohort I grew up with, the original title of the book sums it up. The original working title was Do the Impossible, because statistically, the odds of me doing what I have done would be impossible, but it happened anyway. In a lot of ways, I think it’s easier today, but it is still not easy.

I got one piece of advice very early on, which is that you cannot win if you are not in the game. There is no guarantee that you are going to win, but if you accept the negative messages that you shouldn’t try, you shouldn’t get in the game, the deck is stacked against you and there is no way to win, then you will never win. But if you start out, and you try, you may find that you get help from people and you gain insights. Then, if you apply what I call the 15

I got one piece of advice very early on, which is that you cannot win if you are not in the game.

percent rule – which is that every year, you’re going to be 15 percent better than you were the year before – then you will move ahead.

If you do the math, that rule is probably not possible in perpetuity, but the point is not just about marginal changes every year; it is about thinking deeply about what you want to learn and accomplish that cumulatively adds up to a pretty significant progress over time.

I think my path to success is doable today. I think in a lot of ways it’s easier. However, it’s not easy, and I think people confuse easy with easier.

When you write a book like yours, does it provide an opportunity to reflect and appreciate what you have accomplished in your career?

It does. I was very fortunate. Many of the people whose lives I have touched when they worked for me who are CEOs today were willing to talk in the book about what they learned and about our experiences together.

Writing the book was reflective. I started out thinking about the book in the context of a journey and describing my journey and the journey of others. As I progressed, I found myself reflecting on the fact that, at each stage of the journey, there are important lessons that have to be relearned. If you look at CEOs who have gotten in trouble and who have challenges, much of it stems from not leading themselves effectively. If you look at organizations that have enormous turnover, it comes from not leading other people effectively.

So I think the book was, in fact, highly reflective in that regard and an opportunity for me, both in writing it and talking about it, to continue to learn.

Do the skills you needed to effectively run a business translate to your philanthropic work?

I think that it requires a different skill set that applies the same tools. The objective that I still hold to is that activity is great and fully appreciated, but results are what it is all about. That is the same whether it is a business or philanthropy, but the activity may be different, and the results may be different. They may not involve financial EPS, but instead result in 60,000 kids being in the NAF, and then reaching 100,000, and then even more, so I think they are similar.

The one area that I would say is fundamentally different is politics, and my experience in health reform cured me completely of any interest I might have had in politics.

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VOLUME 42, NUMBER 3

We’re Different Paul, Weiss has been committed to inclusion since our founding — a dedication that has shaped the intellectual and cultural character of our firm over many decades.

Different perspectives continue to enrich our institution and help us solve problems more effectively.

We salute other organizations and leaders who share our commitment to diversity and inclusion.

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP NEW YORK

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INTERVIEW

INTERVIEW

Interview

A Focus on Excellence An Interview with Surya Kant, President – North America, U.K. and Europe, Tata Consultancy Services (TCS)

Surya Kant

EDITORS’ NOTE Surya Kant is responsible for overseeing and strengthening customer relationships and revenues across markets that account for more than 75 percent of TCS’ global revenues. He also plays a key role in expanding the company’s range of technology and service offerings. Additionally, Kant is a passionate supporter of U.S. STEM education and career initiatives – particularly for women, minorities and those in underserved communities, through major national partnerships such as Million Women Mentors and US2020, and TCS’ signature campaigns, goIT and Ignite My Future in School. He received his bachelor’s degree in electrical engineering with a specialization in electronics from Delhi College of Engineering, and his master’s degree in electrical engineering with a specialization in computer technology from IIT Delhi.

COMPANY BRIEF Tata Consultancy Services Limited (tcs.com) is a leading IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the past 50 years. With revenues of more than $20 billion in 2018, TCS is ranked as one of the top three most valuable global IT service providers. Its consulting-led, cognitive-powered integrated portfolio is delivered through its unique location-independent Agile delivery model, which is a benchmark of excellence in software development. TCS was recognized in 2019 as a Global Top Employer by the Top Employer Institute, and as one of the Best Employers globally in the Forbes 2000 list. In the 50th year of its founding, TCS was ranked the fastest growing brand by value in the IT Services sector, globally, over the past ten years – growing 14.4 percent year-on-year. TCS’ proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability™ World Index, the MSCI Global Sustainability Index, and the FTSE4Good Emerging Index.

16 LEADERS

How do you define the TCS difference and what has been the key to the company’s strength and leadership?

We live in an age where consumers are a segment of one, and they expect nothing less than a first class, personalized experience. As technologies such as artificial intelligence, the Internet of Things, analytics and machine learning are becoming more pervasive, this is guiding many of the worlds’ leading businesses through a growth and transformation journey, using our Business 4.0 framework.

We are helping to shift the paradigm, from companies having to optimize with scarce resources to now harnessing an abundance of talent, capital, data, and computing resources. This is changing business behaviors to drive mass personalization, create exponential value, leverage ecosystems and embrace new risks. TCS is redefining every aspect of its business and that of its customers.

At the core of the success is our ability to be agile, resilient and leverage the contextual knowledge of a talented, diverse global workforce of more than 424,000 employees from 150 nationalities around the world.

Are large global companies the focus for TCS or do you also serve smaller entrepreneurial companies?

Both; we primarily work with more than a third of the large, established Fortune 500 companies, but also collaborate with emerging, fastgrowing start-ups. And if you look at verticals or industries, we work in banking, financial services, insurance, retail, manufacturing, travel, transportation, hospitality, high-tech and communications and information services businesses. We work with both large and small companies because all large companies, at one time, were small companies.

Is a C-Suite relationship critical for the work TCS provides and do you work at multiple layers within your clients?

We start with C-Suite and then we work with various levels, because the work that we ultimately come up with, the business transformation models and information technology systems that we devise, have to be implemented and reach from the front-end, which is where the customer experience is, to the back-end of the company, so we need to work with various levels from C level down.

Is there consistent messaging and strong cooperation for TCS between the various geographical regions in which you work or is it more of a localized focus?

I would say it works both ways. You have to be global, because businesses are global these days, even if some primarily operate in one market, so they require a uniform interface around the world. It is becoming increasingly important as newer technologies like cloud and AI are evolving and enabling businesses to become truly global with better control over their data resources.

At the same time, you find some markets where customers are a lot closer to technology or further along in their adoption and digital transformation cycles, so you have to adapt based on the specific requirements. The key is that TCS operates globally and offers enormous scale and contextual customer knowledge, while being deeply embedded in local markets and being a leading local recruiter of talent in providing cutting-edge customer solutions.

How challenging is it to find the talent you need to help clients through their transformations?

In this industry, talent really plays a huge part. The number one asset of our company for our customers and partners is really our people. In that sense, the ability to attract really diverse, talented people from across the world becomes very important. This means that working with and giving back to the communities is a very big magnate for our diverse workforce around the world. As you know, giving back is in our DNA, as 50 percent of our ownership is indirectly held by two philanthropic trusts.

The ability to attract a talented workforce and to keep them, nurture them and grow them, as TCS and our customers grow, is a very big part of the glue that keeps this company together. As we work on the Business 4.0 growth and transformation journeys of our customers, it becomes important for us to also bring in specific skills and talents.

We are also reskilling our own workforce.

The whole technological landscape has been changing and becoming far more agile.

This includes the whole area of cloud migration, artificial intelligence, machine learning and automation, as well as the area of data analytics and insights. It is very important for us to ensure that we continue to reskill our people as we go through our own transformation to support the future success of our customers.

To accomplish this, we have brought in a number of learning systems and transformed them from a majority of classroom training to VOLUME 42, NUMBER 3

something which is available anywhere, anytime on your mobile or other platforms. This has been a huge success. We’ve been able to reskill and upskill over 300,000 of our people in a comprehensive range of technologies, platforms and agile methodologies. With more than 424,000 people, we’ve come a long way with our own reskilling efforts, and that is a big reason for our success.

Will you discuss the focus TCS places on building a diverse and inclusive workforce and the importance of having diverse thought and experiences when making business decisions?

We recognize that our clients represent many different industries and collectively serve millions of diverse customers around the world.

We also realize that the technology solutions that we provide must reflect the global needs and global challenges of our clients. These can best be served through a diverse and global workforce, whether that’s diversity of experience, culture or thought process.

This year, we celebrated the 50th anniversary of TCS. We crossed the $20 billion mark in revenue and our market capitalization exceeded $100 billion. More than 165,000 of our global 424,000 workforce are women. In our view, inclusive businesses are those that transcend the traditional notions of diversity in terms of gender or ethnicity and truly bring a diversity of skillsets, mindsets, experiences and cultures to foster innovation.

This way, diversity becomes the driver of business, as people bring unique perspectives to the organization which enhances the solutions that we develop, how we develop them and the way we deliver them to our customers.

In a quickly changing world of work, inclusion is the glue that binds people together with a sense of identity, belonging and purpose.

Do you find that those coming into the business are looking for companies that are not only focused on the bottom line, but are purpose-driven?

From the founding of the Tata Group 150 years ago, our parent group started as the custodian of public good and calibrated its mission to address the world’s most urgent needs.

Our founder said that in a free enterprise, the community is not just another stakeholder in business but is, in fact, the very purpose of its existence.

At TCS, which is now 50 years old, we stay true to the Tata Group’s DNA by harnessing the power of technology to solve the complex problems and create innovative solutions for our customers, employees and the communities where we work and live. The impact of our work on society is compounded in several ways, through the economic value added in these markets as a large employer who provides highly paid, highly rewarding careers and as a community leader empowering society to be more equitable and inclusive.

We have a workforce with an average age of 28 years. At the same time, we also have a multigenerational workforce and we have a global presence and customers across almost every industry. We are a purpose-driven brand, which allows us to foster long-term partnerships with our customers, attract and retain highly VOLUME 42, NUMBER 3

skilled talent and be a trusted partner in change and the upskilling of the global workforce.

When you grow to the size and scale that TCS is geographically and in numbers, is it challenging to maintain an innovative edge and how important is it to have innovation at the heart of the company?

It is very important to have innovation at the heart of the company, because we have to bring in innovative solutions to more and more complex problems that we are facing – whether in business or society.

At TCS, we have our Co-Innovation Network, which looks at innovation as a collaborative process. We have our own labs across the U.S. and other geographies, where we work on new solutions, rapid product prototyping and advanced research alongside customers. We also partner with universities like Cornell Tech and Carnegie Mellon, where we have provided large grants to establish centers of excellence and joint industry-academic research into areas such as human-machine collaboration, biotechnology and autonomous vehicles.

The number one asset of our company for our customers and partners is really our people. In that sense, the ability to attract really diverse, talented people from across the world becomes very important.

We also have venture capitalists and start-ups as part of the Co-Innovation Network.

We scour the world for appropriate technologies that our customers would find interesting.

We bring all of these together for the benefit of our customers to help them gain a comparative edge and solve problems that they’re facing. Some of those problems could be how they help the communities where they work and live to flourish, so innovation is very important.

How are advanced technologies such as AI impacting the workforce?

Technology is certainly having a major impact on business and customer experiences,

so we need to have people with deep areas of knowledge across a host of technologies and industries in order to help propel our customers’ Business 4.0 transformations.

We have also been working with the World Economic Forum over the past three years on issues including the skills gap and have focused on three major challenges.

Today’s workforce needs to be reskilled.

Some assessments state as far as 52 percent will need to be reskilled by 2022.

The second is that tomorrow’s workforce will need to be trained for jobs that don’t exist today. Two thirds of the jobs in 2030 and beyond will be new. That means students who enter primary school today will need to be taught by teachers who are aware and confident about what those changes will be, and the skills required.

The third relates to inclusion. Women and minorities will need to be integrated into this transformation by design, and more than 50 percent of the disparate impact of technology adoption currently falls on women and minorities, which needs to be addressed with scalable solutions through industry working alongside educational and government institutions.

How we address these challenges will determine how society reacts to the shifting work patterns in business throughout the world.

We consider this not only a moral obligation, but fundamentally critical to business to ensure that we bring all of the stakeholders along with us on this new journey.

At TCS, we have a three-pronged approach.

First, by harnessing our contextual knowledge – re-skilling and up-skilling of our own workforce.

The second is preparing young people for 21st century careers, and the third is empowering women, minorities and underserved groups through our various educational and mentoring programs.

Our signature goIT and Ignite My Future in School programs run in North America, and we run Future IT in Europe and Bridge IT in India.

These programs are very important.

What has made your experience at TCS so special for you?

I’ve been very fortunate to work in many geographies and industries, helping our customers on their path to gr owth and transformation.

TCS also has a big focus on realizing employees’ potential. One dimension is professionally. Another is in the work we do with communities. A third is their well-being. For instance, we have a program called Fit for Life that is run within the company and has more than 200,000 active participants.

The one thing that has really carried me through my career is TCS’ focus on excellence.

Whatever you’re doing, you must do it to the best of your abilities and to the highest standards. Where you are today is because of what you did yesterday, but where are you going to be tomorrow is because of what you are doing today.

People cannot rest on their laurels. There is a restlessness in the company – that constant concern that we are doing the best for our customers, our employees, and our stakeholders. I think that is what is so special.

•

LEADERS 17

INTERVIEW

INTERVIEW

Interview

Simplicity, Speed, Agility An Interview with Richard D. Calder, Jr., President and Chief Executive Officer, GTT Communications, Inc.

Richard D. Calder, Jr.

EDITORS’ NOTE Rick Calder was appointed to his current position in May 2007 after more than two decades of experience in the telecommunications arena. In his role, Calder has full strategic and operational responsibility for the company and also serves as a director on the company’s board of directors. He joined GTT from InPhonic, Inc., a leading provider of wireless services and products, where he served as the President and Chief Operating Officer.

Prior to InPhonic, he was President of Business Enterprise & Carrier Markets at Broadwing Communications. He held senior management positions at Winstar Communications and, before Winstar, Calder co-founded GO Communications, a wireless communications company. Early in his career, Calder held various marketing and business development positions at MCI Communications, and various marketing and engineering positions at Tellabs, Inc. He received a B.S. in electrical engineering from Yale University and an M.B.A. from Harvard Business School.

COMPANY BRIEF GTT (gtt.net) connects people across organizations, around the world and to every application in the cloud. Its clients benefit from an outstanding service experience built on the core values of simplicity, speed and agility. GTT owns and operates a global Tier 1 Internet network and provides a comprehensive suite of cloud networking services.

Will you discuss the history and heritage of GTT and how the business has evolved?

When I joined the company 12 years ago, we were a $50 million firm. We were a special purpose acquisition company (SPAC), which bought two private companies seven months before I joined. The strategy back then was basically to grow organically and through selective acquisitions into a player that could take on the incumbent telecom carriers such as AT&T and Verizon. Our strategy today remains the same, as has our purpose and our values. We have laid out a succession of timebound financial 18 LEADERS

objectives and have delivered on all of them.

We have grown from a $50 million firm to an almost $2 billion firm, with an opportunity to become a much larger company.

We help large and multinational companies connect their people to any location in the world and to every app in the cloud. We’re a connectivity company, and everyone needs more of that. There is not a day that goes by when anyone thinks they need less Internet connectivity or any less bandwidth; they always need more. This means most corporations are happy to consider alternative providers. We live different values from the incumbents and we preach this all the time. Every time we buy a company, these are the values that form the fabric of our cohesive culture – simplicity – be easy to work with; speed – be fast and responsive; agility – strive to say yes.

This sets us apart from the incumbents.

Additionally, our focus on serving the needs of the enterprise market with an outstanding client experience makes us different. Most incumbent carriers prioritize their consumer businesses, investing in mobile or expanding into media and content. This shift in focus away from the enterprise market presents a tremendous opportunity for GTT to take share. We are very focused on our set of products. We are a cloud networking company, selling widearea networks to get people connected. We sell Internet services. At our heart, we are an Internet company and operate one of the industry’s largest Internet backbones. We also sell transport and infrastructure services and unified communications.

Today, we have 3,000 people in 30 countries and 60 offices around the globe. There is no reason we can’t be a $3 billion firm, which is our next financial objective. We believe we can continue to grow for our employees and for our clients, generating opportunities for both vital stakeholders in the company’s future success.

We have a relatively small portion of most of our clients’ telecom spend and we think we can continue to create great value for them.

Are you able to differentiate when it comes to product offerings or is it more about culture, values and strategy?

I wouldn’t call our connectivity offerings commodity-like. We can differentiate when it comes to reliability. This is critical for our clients.

We have to be reliable and we also want to be a company that is easy to work with. Our

view is that clients should try us and they will find that they can do it at a relatively modest investment. As enterprise bandwidth requirements grow and applications migrate to the cloud, CIOs need more networking. Yet they want it for the same amount of money or maybe less. We can hit those buckets.

In terms of differentiation, the interesting technology innovation and trend in networking is software defined wide area networking (SD-WAN). Historically, networks have been private. They started years ago when there was no Internet and its main purpose was to connect office locations. Today 60 to 70 percent of the traffic goes to the Internet. The old networks existed as private networks and every company bought separate Internet access lines at every location.

SD-WAN provides more efficient performance for traffic transported across the Internet and leverages two redundant Internet connections. If one fails, the other connection can take all your traffic.

More importantly, it gives you visibility into the applications your employees are running.

This allows companies to decide what they want to do with their traffic and ramp it up and down. They can decide whether they want an employee to be able to access YouTube all the time, or prioritize access to key business and communications applications. We can give them that enhanced visibility and control.

Typically, we can also do it at a better price because Internet connectivity is generally a little less expensive provided we put it in a package with two redundant connections backing each other up. The large incumbents can do this too, but they want to protect all their revenue from legacy connectivity. They are saddled with old private networks and they are reluctant to move clients onto newer, more efficient technologies.

Their position is often that, “of course we can do this, but it is going to cost you more.” GTT can come in and do it for less.

What have been the keys to being successful with GTT’s acquisitions and how have you been able to maintain culture when bringing in so many new colleagues with these acquisitions?

We take a very different approach to acquisitions. We have a playbook that we continue to refine. We evaluate every deal we make and incorporate what we learn from each one to make our playbook better.

VOLUME 42, NUMBER 3

We live our values with every integration – simplicity, speed, agility. Most integrations among our peer group take place over one, two or three years. For us, integrations take place over one or two quarters. For big acquisitions like Interoute, it may take three or four quarters.

We only buy companies that are a strategic fit. They have to be in the cloud networking business and selling to large and multinational clients. Something like 70 percent of acquisitions fail because the strategy isn’t right and a company just buys something because they want the shiny new object and then hope to build a strategy around it. We have a well-defined strategy and are able to integrate acquisitions quickly.

In addition to only buying firms that align to our strategy, it must be for the right price.

If you pay the wrong price, it undercuts the strategic value. With each acquisition, we aim to realize a post synergy multiple of five times EBITDA or less in one, two or three quarters.

We trade for multiples above that so they are generally accretive to our business.

Speed is really critical and I generally spend a ton of time listening and presenting myself to the organization. The first time I meet people, I explain our values and tell them that to be a part of GTT they have to live our values.

They have to be easy to work with internally for their employees and peers, as well as for our clients. They have to be fast and responsive and strive to say yes.

We have acquired more than 30 companies and we have been maniacal about creating and sustaining a cohesive culture that understands our values of simplicity, speed and agility. We also communicate frequently on our purpose and our strategy so that each employee knows what we do – we’re a connectivity company helping companies connect their people across organizations, around the world and to every application in the cloud. We do it by providing a comprehensive portfolio of cloud networking services that include wide area networking, Internet services, etc.

Do you worry that this cohesive culture will be difficult to maintain as GTT continues to grow?

We have grown to more than 3,000 employees and our culture has been very consistent and resilient throughout the company’s expansion. I think it can be maintained if you are committed to living it. When we reach $10 billion in revenue, we might have to think about it a little bit more because then there is the possibility that bureaucracy sets in. The HR and Finance organizations might be compelled to step in and set a few more rules. But we have a long runway ahead before we reach that point.

The most important thing is making sure that all of our employees live our values. It is vital that they don’t just know them, but that they live them.

How important is brand awareness for GTT? Our biggest challenge is that we don’t have great awareness and familiarity. No one buys anything, whether it is toothpaste or cloud networking services, unless they have heard of the company. We struggle with this, but our growing scale helps. When we were a $50 million VOLUME 42, NUMBER 3

company it was impossible to overcome this hurdle; at $100 million, it was a little easier; and at $2 billion, it is much easier.

If potential clients do a little research on us, they will discover that we have been around for 20 years and are traded on the New York Stock Exchange. They will find out that we are very transparent and have a Who’s Who list of clients in every industry segment.

At our current size, brand awareness is worth more effort, whether it is through investor relations, public relations or marketing, and we are making that effort. Every year, we move up a little bit. We still haven’t reached the AT&T and Verizon level, but we’re getting closer.

We help large and multinational companies connect their people to any location in the world and to every app in the cloud.

Is it challenging to balance the longterm focus with the short-term pressures for a public company?

Not at all. I actually enjoy going through that process. We have nine covering analysts. In the early days, we had no one on our earnings calls. We have hundreds of people on the calls now and they ask good questions.

One of the things that investors judge us on is performance – how we are doing against our objectives. We don’t give short-term guidance on what we are going to do the next quarter.

We are one of the few firms that gives intermediate guidance. We are on our fifth round of doing this. We started this when we were an $80 million company back in 2011. We stated that our objective was to grow to $200 million over the next three years. We did it in two and a half years.

At $200 million, we then advised that we wanted to grow to $400 million over the next three years. We did that in two years. Then we said we wanted to grow to $1 billion and that

we thought it would take four or five years to do it. We did it in two years. Then we announced at the end of 2017 a new objective of $2 billion.

When we bought Interoute in May 2018, it quickly led to our approaching $2 billion, so we updated our revenue objective once again. In the fourth quarter of last year, we announced that we are now trying to grow to $3 billion by the end of 2021 and that we are going to execute it, as we have in the past, through organic growth and selective acquisitions.

While our capital expenditures are relatively low, we continuously canvass for M&A investment opportunities. We currently have a deep funnel with more than 70 acquisition opportunities. Not all of them are strategic fits, but the vast majority of them are very good fits for us.

How large is GTT’s target market?

Large corporations that operate only in the United States are great targets for us. Companies that only have 250 employees across 10 sites that operate on a regional basis are also a good fit. So we target companies from the low end all the way up.

We think the target market is at least 100,000 enterprises if we include all of North America and Western Europe. Around 500 of them are material targets right now. So our current penetration is actually a very small percentage of the addressable market.

We think the total addressable market is close to $200 billion and we are currently under $2 billion. The smaller single locations or even those with three locations in New York City are not ideal targets for us. We would leave those to the smaller or more regional service providers.

This means our targets are the larger companies with a reasonable revenue stream and a good number of employees across multiple sites for which networking reliability is critical because they are connecting their people across their organization and into the cloud.

How critical is it to attract and retain talent as GTT continues to make acquisitions?

The best employees at a firm don’t leave if they are treated like the king or the queen of that firm and feel that they are really valued there. This was the case for me. So here’s a little secret; if you buy a company and treat those employees well, they become your best employees, so our best employees come from our acquisitions.

One of the nice parts of being public is that I have the best reward vehicle – stock. We pay great salaries, give great bonuses and have great sales incentives and benefits, but the lock-in is stock. We award it liberally time and again. Great performers may get stock once or twice a year.

We use E*Trade as a platform so that they can track the growth of the stock’s value over time.

We want our people to know that it is each of them who are driving the value of the firm. If we take great care of our employees and they take great care of our clients, everything will generally take care of itself over time.

Do you feel that it is important for companies today to be purpose-driven and how do you define GTT’s purpose?

Purpose is absolutely important, and as previously alluded to, I define our purpose as helping corporations connect their people LEADERS 19

across organizations and to any application in the cloud everywhere on the Internet. I define our purpose that way because I think we are one of the underpinnings of productivity and performance for the corporations which play a central role in powering the world’s economic growth and expansion. Fortunately, we don’t burn fossil fuels and we don’t pollute the environment. As a communication cloud networking company, we don’t have to face those type of issues. Are we interested in all of that? Yes. But we feel our best strategy is helping corporations connect their people and, if we focus on that and we deliver on that purpose, we will do our little bit to power productivity improvements and GDP growth around the world.

Do the relationships you develop with your clients need to include C-Suite engagement?

Yes, absolutely. The decision maker for us in most firms is frequently the chief information officer. We provide a mission-critical service to our clients, so it is a strategic sell to technical buyers such as the CIOs and their staffs.

There are frequently other people involved in the purchase decision. The CFO is frequently involved. The procurement manager is sometimes involved and it is not unusual to have the CEO involved as well.

With our top clients, we probably account for under 10 percent of their spend for the type of services we provide. This means that there is a great opportunity for us to continue to grow just by developing deeper relationships with those firms to win a greater share of their business.

As GTT has grown, is it more challenging for you to be involved in every aspect of the business?

Every day, I have to examine what I should stop doing. At 60 employees in our three initial offices in Washington, London, and Düsseldorf, I could talk to everyone every day if I wanted to.

Today, I have to look at the things I should not do anymore and delegate authority and accountability downward within the organization.

I spend the majority of my time communicating and listening. I try to be back in our office on Fridays because we have a “brown bag,” bring your lunch day. We started this when we had three offices with 60 employees.

Every week, we gather everyone together for lunch and now make it a global video conference with 3,000 employees. We record these events for people who can’t participate in person. We ask someone to give a presentation.

These have two criteria – be entertaining and make sure the participants learn something about the business. An executive will close, preferably me. I spend five minutes at the end basically reinforcing whatever was said and reinforcing the core of our business – our purpose and our values. I often close with a story about how we deliver on our purpose for a client or a story about an employee who lived our values that week.

I also send our extended leadership team a weekly update of things they should be sharing with their teams. Every month, I do a meeting by video and, every year in June, I bring the extended leadership team in for two or three days of presentations and interactive discussions 20 LEADERS

to reinforce why we exist, how we do business and what we do, as well as to conduct some training.

Today, I spend about 50 percent of my time thinking about and running the business, about 30 percent thinking about M&A, and about 20 percent in external affairs. Communicating with employees and clients takes up most of the 50 percent of my time running the company.

If we take great care of our employees and they take great care of our clients, everything will generally take care of itself over time.

How did your father influence your management style, even though he was involved in a much different field?

My father was a senior official in the Central Intelligence Agency. I found that out when I was 14 years old and we were posted in Syria.

There was no high school for me to attend in Syria so my father told me I was going to boarding school. He also told me that he didn’t actually work for the State Department but for the Central Intelligence Agency, and that I couldn’t tell anyone. So my dad had the coolest job in the world, but I couldn’t tell anyone.

My dad taught me that most operatives recruited as sources of intelligence are lying to you and that only one out of every 20 or 30 pieces of information will actually pan out to be anything. He taught me that the only way you can discern this is by active listening. This is the concept of listening with all your senses and paying attention to everything people are saying. He also suggested that having a device keeps you from talking too much. My device is writing. I always take a pad of paper to write on. Some of it is gobbledygook. I’m just moving the pen to enhance my listening. My father taught me that, if you actively listen to multiple people and ask just a few targeted questions, they will tell you what you need to know. You can discern truth from that if you spend enough time at it, and that’s what I do.

When we buy companies, I try to talk to as many of their people as I can. Access Point was a deal we did last October. They had 100 employees or so and I probably talked to 30 of them over two sessions. I asked a few questions such as: “What would you stop doing?”

“What are the crazy things this firm does that causes everyone to wonder why they are still being done?” “What would you change if you were king for a day?” “Who are the great people in this organization?” I also ask them what the company’s values are. That one is usually quick because, usually, no one really knows.

Before we closed the Interoute deal, I had spoken to about 200 of their top people and I spoke to almost 500 employees of the company throughout the process. We know that the number one question employees have in the back of their brain when their company is sold is, “What is going to happen to me?” So, on the day of the closing, we announced all of our top organizational positions. We told the staff that we would announce our decisions on filling those positions within 60 to 90 days because we take our responsibility for making them part of one organization seriously. Unfortunately, some people are leaving, but many will be fantastic employees as we continue to grow the business.

Active listening is a key asset for me. We even run a reverse agenda in our leadership meetings. I tell my leadership team that each one of them has to come with at least two issues they think that we, as the top ten people in the organization, should debate and try to bring to closure. If they can’t come up with two, they’re not thinking hard enough because every firm has things that should be discussed and debated.

We generally get 15 items on the agenda and they do a rapid-fire vote on them. Our process is fairly democratic and I just tick down the list. If there is a tie, I can be the tiebreaker, but I generally don’t say anything during these conversations. I feel that, if I tell them what I think, then the tendency is for them to just agree.

Frequently, if I know we have a consensus, we will make that decision and be done. This process helps us get a lot done.

You are clearly somebody who is always thinking about what is next. Are you able to enjoy the process and take moments to celebrate the wins?

I think we have had tremendous success and there are few firms that grow from $50 million to $1.8 billion. I take the time to recognize that this is a fantastic achievement, but then I’m back to looking forward again. It is great to remember where we’ve been and what we have accomplished up until now, but we are on a journey to keep creating a great company that people will remember and that will continue to thrive. The GTT brand is not yet a household name, but there is no reason that we can’t be recognized as a firm that large and multinational corporations need to consider in addition to AT&T or BT. I think we are moving forward on that journey. As I tell anyone who joins us, we employ 3,000 people today, but there is no reason that we cannot continue to grow and create a fantastic opportunity for you as an individual to thrive beyond anything you have ever imagined.

•

VOLUME 42, NUMBER 3

WHEN RESEARCHING HOSPITALS, CONSIDER HOW MUCH RESEARCH THEY DO. The research we do today drives medicine we will practice tomorrow. That’s why we’re very proud to say that during the last five years, Mount Sinai has ranked among the top four medical schools in the country in research dollars per investigator. Which hospital you choose can make all the difference in the world. mountsinai.org

INTERVIEW

INTERVIEW

Interview

Empowering Data-Driven Healthcare An Interview with Keith R. Dunleavy, M.D., Chairman and Chief Executive Officer, Inovalon Holdings, Inc.

Keith R. Dunleavy

EDITORS’ NOTE Keith Dunleavy has served as Inovalon’s Chief Executive Officer since 1998 and as Chairman of the Board of Directors since 2006. Dunleavy received a bachelor’s degree in biology modified with engineering with high honors from Dartmouth College. He earned his doctorate in medicine from Harvard Medical School, completed his medical residency at The Johns Hopkins Hospital in Baltimore, Maryland, and practiced and was Board Certified in Internal Medicine. He serves as a Director on the Dartmouth Medical School Board of Overseers.

COMPANY BRIEF Inovalon (inovalon.com) is a leading provider of cloud-based platforms empowering data-driven healthcare. Through the Inovalon ONE® Platform, Inovalon brings to the marketplace a national-scale capability to interconnect with the healthcare ecosystem, aggregate and analyze data in real-time, and empower the application of resulting insights to drive meaningful impact at the point of care.

Leveraging its platform, unparalleled proprietary data sets, and industry-leading subject matter expertise, Inovalon enables better care, efficiency and financial performance across the healthcare ecosystem. From health plans and provider organizations, to pharmacy and life sciences companies, Inovalon’s unique achievement of value is delivered through the effective progression of “Turning Data into Insight, and Insight into Action®.”

Will you discuss Inovalon’s mission and has this mission remained consistent over time?

All along, it has been about how data and technology can help to make healthcare better. That theme and that mission has kept true.

However, the tools that we have available to us and the technologies that we’ve been able to innovate and bring to the market have evolved and continue to evolve a fair amount.

What solutions does Inovalon offer today and how do these offerings differentiate the company?

22 LEADERS

In the earlier years of the company, the large computer systems were what we would now call enterprise software systems – software systems residing on large computer systems in centralized data centers.

They have evolved to a more cloud-based capability set, which allows for handling a much larger dataset, much higher analytical complexity, and much higher compute speeds.

Ten years ago, there would have been a lot more batch processing. This meant handling the crunching of numbers at regular intervals, oftentimes monthly in the healthcare space. Today, they’ve evolved to real-time access with transactional based analytics that handle the individual compute with up-to-date, current information when and where it’s needed to impact the point of care.

It has evolved quite a bit and allowed us to have a larger and more valuable impact on the outcomes of care, as well as the economics of care.

Do you define Inovalon today as a healthcare company or has it become a technology company?

It really is a technology company. It’s a cloud-based platform company enabling and empowering data-driven healthcare.

How competitive is the industry and how do you define the Inovalon advantage?

Competition is an important topic for any organization. We categorize our competition in three different categories. Category one is large healthcare organizations having their own technology department that are looking to develop their own data analytical capabilities.

Category two is traditional competitors – large corporations that work to do things similar to what we do.

Category three is smaller individual partand-piece solutions that are earlier in the stages of life.

In all of those areas, we have been fortunate to do very well for a number of reasons.

In the first category, our clients have learned that having a specialized platform enabler like Inovalon brings to the table a capability that is achievable only from persistent, large scale investment across the whole ecosystem. This has resulted in the connectivity that we have into many different doctors’ offices, hospitals, and other data sources, as well as the size and sophistication of the compute architecture that we have achieved.

The size of our data set and purpose-built analytical sophistication really differentiates us in the market. Today, we have more than 271 million patients’ worth of data. In value-based or outcomes-based healthcare, having that dataset is critical to having the most advanced analytical capabilities that the market needs.

Similarly, in category two, although there are other large competitors in the market, none of them have the independence that we have, the datasets that we have, the breadth of reach of connectivity that we have, and the purposebuilt analytical sophistication that we have.

Together, these allow us to deliver differentiated value to our clients.

The third category, the smaller part-andpiece solutions, has been less of a competitive issue in the market, because organizations are very wary of entrusting their data or the security of their important operations to smaller organizations. They are tending to move to a few trusted partners, like Inovalon.

So, there are competitors in the marketplace, but we have unique differentiators that are allowing us to serve and provide a differentiated value to our customers.

Is brand awareness important for Inovalon?

I think brand matters to everybody. Brand matters to our customers, to our shareholders as a public company, and to existing and potential employees. Human resources are an important asset to every technology company. So, brand is important for any organization that wants to be successful long-term.

But Inovalon is a B to B company. We predominately focus on delivering cloud-based platform capabilities to a very identifiable customer audience and we have done a very nice job of penetrating them. We have 24 of the top 25 health plans in the U.S. as clients. We have 22 of the top 25 pharmaceutical companies on a global basis. We have over 50,000 provider sites as well.

We’ve done a very good job of raising awareness among these audiences, but we’re not yet a commonly known brand to the household consumer. However, we see that this may change over time.

Will growth come from attracting new clients or bringing additional services and solutions to Inovalon’s existing clients?

Both. We have been growing significantly with new logos as we refer to them. Last year VOLUME 42, NUMBER 3

Healthcare is really one of the last bastions of transformation to transactional data-driven ecosystems. It’s already occurred in many other spaces, whether it be entertainment, retail, financial services or energy. For many different legacy reasons, healthcare has, as an industry, been slow to make that transformation, but now it’s happening very quickly. Therefore, it is exciting to be a part of this. we grew our new logos by approximately 29 percent and we are also expanding the business we do with our existing customers.

Last year, we increased our ACV (Annualized Contract Value) of new sales by 77 percent year-over-year.

We are doing a nice job of extending what we do for the customers we already have, and expanding the number of customers we’re fortunate to call our partners.

Are you able to find a balance between the long-term needs of the business and the short-term pressure for results?

We are a company that focuses on having a very good balance of keeping an eye on the long-term, and also being respectful of shareholder demands in the shorter term. I think we have been increasingly able to balance those two forces.

Reflecting this, we have a very long track record of strong client retention that we have increased even further this year. Coming into 2019, our client retention rate was 103 percent, which means that not only are we keeping our customers, but we are expanding what we do for them. This is really a reflection of customers feeling that we are focused on the right longterm things.

This focus has resulted in significantly increasing the value that we demonstrate to our customers which, in turn, translates into our own growth and profitability. We put the customer first. We make sure that we are a leader in delivering value to them and we believe that value to our shareholders will follow appropriately. We see that playing out really well in 2019.

What message do you offer potential employees about a career with Inovalon?

Our mission is important. A person can be in technology, in cloud computing, in data analytics or in different industries such as financial services, retail or others.

However, in healthcare, we get to apply those capabilities to something that is important to all of us throughout our lives. That focus on applying these capabilities and technology to something as important as healthcare is an important part of our message to our employees and why somebody would want to choose to be at Inovalon.

In addition to that, healthcare is really one of the last bastions of transformation to transactional data-driven ecosystems. It’s already VOLUME 42, NUMBER 3

occurred in many other spaces, whether it be entertainment, retail, financial services or energy. For many different legacy reasons, healthcare has, as an industry, been slow to make that transformation, but now it’s happening very quickly. Therefore, it is exciting to be a part of this.

We’re in a very positive velocity and momentum period of the company’s life cycle right now. Adding the best people, and the most diverse set of people, is part of that.

How critical is it to build a diverse workforce at Inovalon?

I think that’s important for any organization. I think diversity in all aspects of people, whether it is age, race, gender or beliefs brings diversity to our thinking and how we approach problems and solve them. I think that this is a very important factor for technology and innovation companies.

We also believe that this goes part and parcel with having the best talent around. The more momentum you have, the more successes you have; the more great people you have, the more it builds a velocity and momentum that allows you to continue to attract and retain those great people.

We’re in a very positive velocity and momentum period of the company’s life cycle right now. Adding the best people, and the most diverse set of people, is part of that.

Young people today look to work for companies that are purpose-driven and have a focus bigger than just the bottom line. How critical is it to be a purpose-driven company?

It is definitely important for successful companies. People want to work for an organization of which they’re proud, and which has like-minded values and cares about things besides just finances.

Like any organization, whether it be a family or a company, you have to work at that.

You have to work at finding the things that are important to people and build critical mass around them. We have many of those things here such as charitable committees and womenin-workforce initiatives. We have programs for giving back to local community programs. We have many of these elements built into how we operate as a community every day and they have been endorsed by the company, because the people of the company want to do them.

It’s something we’re always looking to do better at, but there is a very nice energy around it today.

Are you able to take moments to reflect and celebrate the wins or is it always about what’s next?

We are so far from being done and that’s always the challenge. I’m very, very fortunate with every passing year to be surrounded by more and more great people who help to bring Inovalon further along. Since they are so good, frankly, I am less and less of what drives Inovalon, and Inovalon is more and more of what drives Inovalon.

I’m exceedingly proud, but never satisfied.

My college friends and wife frequently remind me of the importance of that which you’re inferring in your question. However, I am incredibly proud of what this company is and the people that make it up but, as my colleagues will tell you, I still get quite frustrated when I feel like we can be better.

•

LEADERS 23

INTERVIEW

INTERVIEW

Interview

Identity Leadership An Interview with Stedman Graham, Chairman and Chief Executive Officer, S. Graham & Associates

Stedman Graham

EDITORS’ NOTE Stedman Graham is an author, educator and speaker who consults and conducts training with corporations, educational entities, the military and veterans, non-profits and the government. His Identity Leadership message is grounded in the fact that the key to success is self-leadership capability. Graham has authored eleven books, including two New York Times bestsellers, You Can Make It Happen: A NineStep Plan for Success and Teens Can Make It Happen: Nine Steps to Success. His last release, Identity: Your Passport to Success, was a Wall Street Journal bestseller. His new book, Identity Leadership, was released in early 2019. His clients have included the Indiana Pacers, Minnesota Vikings, Gulfstr eam Aerospace, Microsoft, Deloitte, Wells Fargo, Lenovo, General Dynamics, the U.S. Departments of Labor, Education and Agriculture and CVS Pharmacy. Graham has also lectured throughout Europe, the Caribbean, North America and Africa. He received a bachelor’s degree in social work from Hardin-Simmons University, a master’s degree in education from Ball State University and honorary doctorates from several universities.

COMPANY BRIEF S. Graham & Associates (stedmangraham.com) is a management and marketing consulting company specializing in programs for the corporate and educational markets. SGA offers keynotes, seminars, curriculum and consulting based on the Identity Leadership Nine Step Success Process which was first introduced in Stedman Graham’s New York Times bestsellers, You Can Make It Happen: A Nine-Step Plan for Success and Teens Can Make It Happen: Nine Steps to Success.

What made you feel it was the right timing for your new book, Identity Leadership?

It’s very interesting because I had no idea that this would be such great timing for the book, but leadership is a hot topic right now. It’s the number one issue in the world today. I wrote this book to help people self-actualize, to teach them how to organize their lives around themselves, 24 LEADERS

and to develop an identity for themselves. This is a reflection of my own development.

Leadership is crucial. I work every single day and compete with people in the global marketplace. At every level, whether it’s the educational level, the corporate level, the family level or the athletic level, leadership is key.

Tom Brady is able to lead his team because he’s a strong leader. His leadership is what allows them to outdistance most other teams.

At every level, leadership is critical and Identity Leadership puts it all together. I started off with identity and then I realized that if you put that with leadership, you’re able to find your authenticity and you’re able to organize your life around yourself. It’s based on the philosophy that you can’t lead anybody else until you first lead yourself, so it’s all about self – you have to be self-made in the leadership arena to be authentic.

Can leadership be taught or is it something you’re born with?

Well, you can have it and then not accomplish much. You can have it and not be worth a lot. You can have it and be dysfunctional. You can have the potential and still not know how to organize it. Sometimes you need help. If you’re lucky to have parents who teach you their leadership skills and who are role models for you every single day because of their work ethic, their drive, their education, their understanding, and their cognitive ability, you’re very fortunate.

It used to be leadership training was readily available; the community taught leadership, the churches taught it, the schools taught it and it was an everyday occurrence in the Boy’s & Girl’s Clubs, Boy Scouts, Girl Scouts and 4H. All of those were geared towards building character and building stronger leaders for the future.

Today, it’s a little bit different because we don’t have the personal interaction like we used to, we don’t have the one-on-ones like we used to, and we don’t have communities functioning the way they used to. Now, we have technology, we have television, we have people living in the external world, really focused on themselves.

They don’t know who you are, they don’t know who they are, they don’t know where they are going and they don’t know how to get there.

They are looking for all the answers on the outside, but the answers are on the inside.

What needs to be done to change this?

Today, we have more opportunities than we’ve ever had in the history of the world because of technology.

The problem is that everything is outdated as soon as we learn it according to where the technological revolution is going, so we’ve got to turn it around to where information becomes relevant to the core of who we are – the missing piece is that we don’t know who we are. We don’t have a foundation for development. We don’t have a foundation for organizing information around our talents, our skills, our passions and our purpose. The new leadership discipline has to be around organizing ourselves first and then taking the access that we have in terms of information, knowledge and education and making it relevant to our everyday lives.

There has to be a paradigm shift, just like there is a paradigm shift with taxi cabs to rideshare and there is a paradigm shift from gas to electric cars; there has to be a paradigm shift with human development. If that paradigm shift doesn’t happen, we are pretty much outdated and we are going to have all these artificial intelligent robots taking over and jobs will be eliminated because we are outdated and don’t have a learning process to keep up.

How can this paradigm shift be moved forward?

Eventually, it is going to happen, but if we can get there faster, we can begin to raise the consciousness of people around those things that are really important. I try to serve as an example by creating a customized system to run the Nine-Step Success Process that helps people understand how to do this. We have to turn it around and show people how to make information relevant to their development everyday so that they can develop a process of continuous improvement.

In the book, you share personal experiences and stories. Were these insights in hindsight or did you recognize them as you were having these experiences?

I was kind of thrown out into the world, because I started with low self-esteem and a lack of confidence since my family situation was somewhat dysfunctional.

I was searching; I was trying to figure it out, so I read every book I could get my hands on. I studied it. I had to live it every single day because I was defined by the outside world. The world was defining me and putting me into a box and, either you sink or swim, and I was trying to survive through all of it.

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In that survival effort, I’m on point every day. I’m thinking every day. I’m creating every day. I’m writing. I was trying to figure it all out, and I realized it’s not how the world defines you, it’s how you define yourself. Unless you can create self-actualization, you’re not going to be in the game.

I started writing about this and organizing my thoughts and then came up with a book and with a process. When I started that process, I realized it was the missing piece for me and then I realized it could also help other people.

Does self-fulfillment, no matter what level you’re at, start with identity leadership, self-awareness and self-reflection?

It’s all self. What I realized – and this was a big ah-ha moment for me – is that the process of success is the same for everybody.

The difference is that some people know it and some people don’t.

However, there is only a small percentage of people – probably 1 percent of the 1 percent, who understand it – who are able to take control of their learning, take control of their development, and take control of the decisions they make. They know how to build relationships and they know how to organize their lives. They’re focused on themselves as a way to create self-mastery and self-empowerment and self-efficacy.

They’re present in the world that they live in every single day.

They’re watching things. They know how to apply things. They don’t waste a lot of time. They eliminate all the time-wasters.

They’re what I call identity leaders who work from the inside out and who are authentic in their development.

Do you worry about where we are culturally today?

I do worry about that.

I worry about a lot of young people wasting their time doing all kinds of things with technology that has nothing to do with their development. I worry about the access that they have to information that’s not good for them. I worry about them being seduced by all the advertisements and all of the pictures and everything else out there when they are really not even capable of making good decisions because they are so young.

I worry about everybody thinking that technology solves all of the problems when it’s really just a tool. It’s a wonderful, wonderful tool when used correctly to empower who you are as a person. If you can create self-mastery based on your purpose in life, and then create a vision based on where you want to go and raise your socioeconomic development VOLUME 42, NUMBER 3

because you have access to a machine that gets you all around the world; that’s a pretty good opportunity.

You wear many different hats. How do you maintain your focus when you are pursuing so many passions?

That is the secret of the work that I teach – you organize every part of your life and you organize all of your passions. You can create work/life balance that is long term, but you have to have a long-term vision of who you want to become, not who you are now.

I know who you are. You wake up in the morning, you wash your face, you brush your teeth, you get breakfast, you get the kids off to school and you work all day. You come home in the afternoon, spend time with the family, watch TV, go to bed and maybe dream. Every single day, the same routine.

To get to who you can become, I need to interrupt/disrupt the routine that you have and then I need to get you to understand who you want to be and I need you to create that based on the vision that you have for yourself that’s bigger than the circumstance of where you are

today. You have to create the vision. You have to create the opportunity.

You can’t create this vision standing still.

You can’t create it by doing the same thing over and over. You have to create it with your thinking. You have to create it by understanding the power of education and information.

Einstein said, “You cannot solve a problem with the same mindset that caused it,” so you have to be able to disrupt the routine of what you’re doing every day and read more, learn more, and develop more and take that information and make it relevant to your passions, to your talents, to your skills, and to your abilities because those are your strengths. That’s what keeps you in the game.

Since you have been in such a public relationship with such a power ful and well-respected person, has identity been a key to what has made that relationship work so well?

Yes, it’s because I’ve been able to be comfortable with myself and not worry about what other people think about me based on what Oprah has done in her own life. I support her in her own quest for happiness and freedom and meaningfulness, and she deserves that because she’s worked hard for it, but that’s her. That’s her life and, while I’m there to support her and I’m happy for her, it has nothing to do with who I am or what I do every single day.

You don’t want to turn your power over to somebody else to define you because whoever you turn that power over to will almost always define you as less than them, so you can’t afford to buy into that. You have to be able to create your own, get your own, develop your own, build your own and be happy with that. And when you’re happy with that, you’re really not looking around to see what somebody else is doing.

With all the things that you are involved with, are you able to enjoy the process?

I have a great life and I’m the first one to admit it. I get to travel around the world. I get to play golf around the world with my buddies. I get to meet all kinds of folks. I get to eat in great restaurants. I get to go where the weather is warm sometimes. In many cases, I can decide what my schedule will be.

Is it tough? Yes, it’s very difficult. Do I have to work for it? Yes, I do, but I like the process.

I have to work hard, so I can play hard. It balances long term and the seeds that I plant eventually will come up and I can enjoy the harvest every once in a while.

•

LEADERS 25

"We are the most respected framing company for good reasons" - Eli Wilner

Eli Wilner & Co. created the 12 ft x 21ft replica frame (above) for Emanuel Gottlieb Leutze's 1851 painting Washington Crossing the Delaware, which dominates the Metropolitan Museum of Art's American Wing.

For over 40 years I have been creating frames for the world’s finest art collections.

I understand that one of the most important commodities you have is your time and the last thing you want to do is waste it.

That is why the level of service and skill that would be extraordinary for most is standard at Eli Wilner. I understand that you want your art framed beautifully, created with extraordinary skill, delivered on time and installed professionally. The first time!

The number of times that I have been called in to repair others’ work is shocking. Who has the time to do things twice?

When asked what separates us from other firms I offer the following: • I personally oversee each frame choice as it relates to scale, period correctness and aesthetics.

• We are obsessed with providing perfection for each framing project.

• We employ the finest carvers, gilders and finishers in the world.

• We include a Lifetime Quality Guarantee.

• We have been the framers for the Metropolitan Museum, the Smithsonian, the White House, Sotheby's and Christie's since 1983.

• We are the recommended frame restorers by Chubb and AXA art insurance companies.

• We offer incredible white glove service that is flawless and unmatched by any profession.

• We respect your desire for confidentiality and go to great lengths to insure your privacy. Historically we have used pseudonyms for our clients.

• There are no extra charges: Included are preliminary drawings, mockups, travel time, fitting, a photographic record of the work process, crating and shipping.

• We provide a guaranteed delivery date (often impossible for anyone else to meet) or the entire project is free.

I look forward to speaking with you about your next project.

I promise not to waste your time!

1525 York Avenue, New York, NY 10028 212-744-6521 | www.eliwilner.com | info@eliwilner.com Antique Frames, Antique Frame Restoration, Antique Frame Replication

INTERVIEW

INTERVIEW

Interview

Security Solutions An Interview with Richard “Bo” Dietl, Founder and Chief Executive Officer, Beau Dietl & Associates

Richard “Bo” Dietl

EDITORS’ NOTE Richard “Bo” Dietl was a New York City police officer and detective from June 1969 until he retired in 1985 when he founded Beau Dietl & Associates. He was appointed as Co-Chairman of the National Crime Commission in 1989 by President George Bush. In 1994, Governor George E. Pataki appointed him to chair of the New York State Security Guard Advisory Council. He served as Security Consultant to the National Republican Convention and as Director of Security for the New York State Republican Convention. In 2010, Dietl formed Beau Dietl Consulting Services (BDCS), which recruits temporary and permanent placements in IT, finance and business for global leaders and Fortune 500 companies such as JP Morgan Chase, Citibank and Ernst & Young. He has also been a Fox News and Business contributor for the past 10 years and his commentary is called upon countless times for his expertise on current events. For the past 30 years he has been a weekly guest on Imus in the Morning and appears on several other Fox shows on a regular basis.

COMPANY BRIEF Beau Dietl & Associates (investigations.com) was founded in 1985 by Richard “Bo” Dietl, one of the most highly decorated detectives in NYPD history. For more than 30 years, BDA has provided security services, consulting services and investigative expertise to private and public clients throughout the United States.

Headquartered in Midtown Manhattan with offices in New Jersey, Miami, and Beijing, BDA’s senior staff is comprised of experienced former senior law enforcement and military officers, security and investigations professionals. Utilizing an “all-hazards” approach, BDA understands each client’s unique security needs and provides customized solutions, including hand-selected personnel and state-of-the-art countermeasures, to effectively and efficiently mitigate risk and provide safe, secure and welcoming environments. BDA’s team of highly-trained analysts can also perform in-depth due diligence for any situation and currently supports Fortune 100 companies, major financial institutions and top law firms around the globe.

28 LEADERS

Will you discuss your vision for creating Beau Dietl & Associates?

As far as private investigating and private security companies go, we have something many of them don’t have. We just reached our 34th year in business, which is a very big plus.

Many people have started businesses like ours. Many have been acquired or have gone out of business, but we have done networking that I think is unique. Since I retired from the police department in ’85, I ran for United States Congress in ’86 and then ran for New York City mayor in 2017. This helps keep the name and the brand up front.

We bought the domain investigations.com about 28 years ago – at that time I think we paid $20,000 for it. I’ve since been offered $1 million dollars for investigation.com, but it’s behind our brand and our name and it’s something that we have continued to promote as part of our very in-depth investigations.

We have been at the forefront of big investigations on illegal drugs coming into the United States. We also headed up the investigation of the Iron Workers’ Union concerning the takeover of the unions. Today, we’re working on a triple murder of a federal witness in Kentucky where we were able to facilitate a conclusion and people involved with the murder of a federal witness are now about to be arrested. There aren’t too many types of cases that we have not been involved with.

Part of our strength comes from having an international network of people that we’ve been utilizing for the last 34 years who have been proven to be really good information finders around the globe. If we received a phone call right now and needed surveillance in London four hours from now, we have the capabilities to do it.

We are now becoming involved in some new areas. For instance, with the advent of the MeToo Movement, I’ve tried to ascertain how we could get involved, because this issue is not going away; it’s going to be a key issue for a lot of corporations. It seems that many employees who are victims of sexual harassment, discrimination or who see bad things going on in the corporation have no way to report it. They feel as though if they report it to HR it’s going to affect their position and their employment and their chances for elevation within the corporation.

We have now put together a secure website for corporations that allows people to report what is going on and choose to remain anonymous should they so desire.

Then we investigate the claims. We use Title VII investigators who are required to do these types of investigations. We then bring our findings to HR, the general counsel or, in some cases, right to the CEO. This is something that I think corporations have to be well aware of – it could take a corporation down.

We have also developed another AI technology. We now have security cameras in buildings and CCTV but people don’t realize that, with the advent of AI, you now have smart cameras. A person sitting on a console watching different cameras is only effective for about 20 minutes. With the addition of AI, you put criteria into the system that causes an alarm to go off so if a specific person is somewhere they are not supposed to be, AI enables smart CCTV cameras. Many residential and commercial buildings have security guards and we could cut that price in half by using more AI cameras. They are as efficient, if not more efficient, than a physical guard and they can be monitored from a remote location.

We have a remote command center in New Jersey and are developing a mobile command center in Lower Manhattan that will be able to monitor 200 to 300 buildings through the use of AI. The future is about using technology that allows for better security than can be provided by just utilizing physical security guards. Many variables affect physical security guards and AI can help mitigate these issues.

Another area that I’ve been actively involved in is keystroke encryption. I ended up buying the three patents relating to keystroke encryption. Whenever you use a mobile device or your laptop computer, every time you strike a key there is a risk of that keystroke being stolen. In one case, a CEO of a major drug company had his paycheck diverted to another bank account and didn’t know what happened. Keystroke encryption can help prevent this.

There are people out there called day loggers who utilize the dark web to steal information. People will knowingly open up an e-mail they think is from a friend or VOLUME 42, NUMBER 3

Part of our strength comes from having an international network of people that we’ve been utilizing for the last 34 years who have been proven to be really good information finders around the globe. If we received a phone call right now and needed surveillance in London four hours from now, we have the capabilities to do it. colleague. Day loggers infect these e-mails and invade your system where they can install malware and then remain dormant and watch your activity. They might not do anything right away but, once you start your online banking, they record keystrokes and can get account numbers and passcodes and all of a sudden you have a problem. We got another call recently where someone sent $150,000 of security monies to their brokerage and it was rediverted to another account.

Those utilizing our keystroke encryption technology, even if they are breached and malware is installed, still cannot see any of your security codes or account numbers. You can’t always stop hackers from getting in, but our technology will prevent them from gaining any pertinent information.

You have described a number of the activities you are involved in. How broad is the list of services you provide at BDA? We handle litigation support, corporate due diligence, internal investigations, surveillance and insurance investigations, and we also provide a whole array of security.

We have physical security and armed security, but we have also now embarked on the CCTV AI cameras for buildings that I mentioned earlier. We do security assessments including casino security in Las Vegas as well as the Miami World Center security. We’re able to take on almost any and all projects.

We are also involved in litigation investigations. Right now, we are involved in one against Ford Motors and another against Qualcomm involving patent infringements.

With our 34 years of experience, there is not much that we can’t handle today.

How critical is it for the C-Suite to take a very serious and comprehensive approach to security?

Many people don’t understand that CEOs of corporations have the fiduciary responsibility of overseeing the whole company.

Whether they have a cyber security breach or they have a scandal about sexual harassment within the corporation, it’s the responsibility of the CEO. If public companies don’t stop a problem before it becomes big, it could destroy their entire corporation.

How concerned are you about the adversary relationship between the public and law enforcement today?

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I support police out there who are out there every day. The majority of them try to do the right thing, and they’re under such scrutiny now. They all have cameras. They can’t do anything without being on video and they have multiple systems of checks and balances.

We have a great city like New York, but we also have many with mental health issues that law enforcement ends up dealing with on the streets every day. These need to be addressed in our correction facilities and even in our classrooms. Mental health issues have to be dealt with.

This has led to many bad police shootings so there needs to be an alternative to guns in these cases. There is the Taser but it has killed almost 1,000 people since its development. There is now a new device called BolaWrap which was developed by Wrap Technologies Inc., which I’m a shareholder of. It is a non-lethal technology that is about the size of a cellphone. From about 15 to 18 feet away, it shoots out at about 500 feet per second two thin Kevlar ropes with a four-prong fish hook that wraps around a person’s arms or wraps around their legs. If officers are addressing an emotionally disturbed person with a knife, they have an alternative to shooting him.

This is another piece of technology that could save a person’s life in the community.

I’m behind it not just for the officers, but I’m behind it for the community because you have a lot of mentally disturbed people that I don’t want to see shot by cops. We need cops to have an alternative other than the Taser, which hits you with 50,000 volts.

The former CEO of Taser just joined the board of Wrap Technologies. He loves this technology, because it is non-lethal. That’s what we need. We need cops to be out there with technology that helps them save people.

Is public service and politics still something that you plan to pursue in the future?

Never. As far as politics go, they don’t like me because I don’t lie, I’m not a backstabber and I tell people the way I feel. I’m not cut out for politics. The only person in politics that I really like, although he has some pitfalls, is Donald Trump because of his forwardness and his non-political approach.

He’s out there telling it like it is and trying to cut through the crap.

As a matter of fact, I met with him recently about a number of issues in this country that I’m really concerned about. We talked about infrastructure in this country. There’s no reason in the world why we shouldn’t have construction consultants who, when they bid on billion-dollar jobs, get the job done for what they bid.

Construction consultants should utilize the talents of forensic accountants to make sure if you bid $1 billion to build a tunnel, you’re going to do it for $1 billion, not $1.8 billion. With the advent of big infrastructure spending in the country, this is so important.

If we are going to put $100 billion into infrastructure, it shouldn’t turn into $180 billion.

Another concern is the murder rate in Chicago. I think they’re up to 5,600 over the last ten years and no one seems to care about it. There are answers and I talked to people in the White House about utilizing the federal criminal RICO laws. If the federal government was more involved in this then we could go into Chicago and stop those murders.

For instance, when you get caught with a gun in Chicago they should give you a oneyear sentence. There are people who have been arrested there 15 times for gun violations and they keep getting sentences of less than a year. We have to deal with this because I’m concerned about the 5,600 murders in Chicago, the majority of whom were African Americans. Why don’t we care about them? I told the President he should care and he should address this and bring in initiatives for our inner cities to try to stop these murders. These are things I’m interested in as a human being.

Are you able to take moments to celebrate the wins or are you always looking at what is ahead?

I’m a CEO who is hands-on. I really believe you’ve got to keep thinking and bringing business in. If you lay back and celebrate on how well you did on something, you’re not going to be in business too long.

I think the success of my company here is that we keep looking ahead. I tell people we have to think about tomorrow. We have to think of new initiatives to bring into the business and continue building the business because that business is the lifeblood of any corporation.

•

LEADERS 29

A Centenary Story of C.V. Starr & Co. New York City – June 3, 2019 Starr Insurance Companies and LEADERS Magazine hosted a VIP lunch with Hank Greenberg at Starr’s offices on June 3 to discuss doing business in China as well as China/U.S. relations. The lunch was attended by leading executives from a diverse group of companies with an interest in China.

The attendees were: Maurice R. Greenberg, Chairman & CEO, Starr Insurance Companies Steve Blakey, President & Chief Executive Officer, Starr Insurance Holdings Rick Niu, President & CEO, Starr Strategic Partners Charlie Armstrong, Vice President, Marketing, Starr Insurance Companies Rob Cruz, Senior Vice President, Distribution, Field Operations, Starr Insurance Companies Xu Chen, President & CEO, Bank of China USA and Chairman, China General Chamber of Commerce - USA Sun Guoshen, Deputy General Manager, Industrial and Commercial Bank of China U.S. Eugene Kohn, Chairman & Founder, Kohn Pedersen Fox Associates Peter Selfridge, Global Head of Digital Government, SAP Adam Johnson, Chairman & CEO, NetJets James W. Crystal, Vice Chairman, Alliant Insurance Services Alan Elkin, Chairman & CEO, Active International Alan Brown, President, Active International Holdings Mitchell Moinian, Senior Vice President, Moinian Group David Schner, President and Executive Editor, LEADERS Magazine

Starr/LEADERS lunch

30 LEADERS

Gene Kohn, Hank Greenberg, Xu Chen, Adam Johnson

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Hank Greenberg and Xu Chen

Gene Kohn and Rob Cruz

Xu Chen, Jim Crystal, Peter Selfridge

Alan Brown and Alan Elkin

Peter Selfridge and Rick Niu

Steve Blakey and Adam Johnson

LEADERS 31

DIVERSITY & INCLUSION

A Record of “Firsts” An Interview with Brad S. Karp, Chairman, and Valerie E. Radwaner, Deputy Chair and Partner, Paul, Weiss, Rifkind, Wharton & Garrison EDITORS’ NOTE Brad Karp has served as Chairman of the firm since 2008 and is one of the country’s leading lawyers and corporate advisers. He has extensive experience successfully defending financial institutions and other companies in “bet the company” litigations and regulatory matters.

Valerie Radwaner has served as Deputy Chair of the firm since 2014. A longtime corporate finance lawyer, she has been recognized repeatedly for her leadership in the legal industry and her commitment to diversity and inclusion in the profession. Radwaner is active in several professional organizations devoted to women’s empowerment and leadership.

FIRM BRIEF Paul, Weiss, Rifkind, Wharton & Garrison (paulweiss.com) is a fir m of more than 1,000 lawyers with diverse backgrounds, personalities, ideas and interests who collaboratively provide innovative solutions to their clients’ most critical and complex legal and business challenges. Paul, Weiss represents the world’s largest publicly and privately-held corporations and investors as well as clients in need of pro bono assistance.

H o w d o y o u d e f i n e t h e P a u l , We i s s dif ference?

Karp: Our str ength comes fr om our unmatched talent, our strategic focus, our deep commitment to our clients, and our cohesive and collaborative culture. We strive every day to exceed our clients’ expectations, quickly and efficiently solving their most complicated problems and delivering a compelling value proposition. Our goal is to build enduring personal and professional bonds with our clients and our efforts have paid off.

We’re fortunate to represent the world’s most significant companies in their most challenging legal matters around the globe. We don’t try to be all things to all clients in all jurisdictions. Instead, we have invested strategically in five market-leading practices: public M&A, private equity, litigation, white-collar and regulatory defense and restructuring.

Finally, and perhaps most important, we’re blessed to have a remarkably strong, cohesive, collaborative culture and shared values of diversity, public engagement, pro bono and professionalism. All of these are important differentiators for our firm.

32 LEADERS

Brad S. Karp

Valerie E. Radwaner

How do you describe Paul, Weiss’ culture?

Radwaner: As Brad noted, our culture is founded on principles of collaboration, cooperation, mutual respect, diversity and public service. We are a true partnership, where partners work collegially towards a common objective.

We enjoy a collaborative, supportive workplace,

We’re blessed to have a remarkably strong, cohesive, collaborative culture and shared values of diversity, public engagement, pro bono and professionalism.

and value teamwork, transparency and giving back to the community. Pro bono and public service are deeply ingrained in our traditions, from our summer associates to our firm leaders.

Our commitment to diversity and inclusion goes back to the firm’s founding; we were the first New York firm to mix religions.

W i l l y o u h i g h l i g h t P a u l , We i s s ’ commitment to diversity and inclusion?

Radwaner: Our commitment to diversity and inclusion is part of our DNA. We were founded on progressive values and, more than a century later, we continue to embrace those values. Our record of “firsts” is extraordinary: we were the first major law firm to hire an African-American associate, William Coleman, in 1949; to hire an AfricanAmerican female associate, Pauli Murray, in 1956; and to make a female partner, Carolyn Agger, in 1949.

Today, that legacy continues. We have more African-American partners than any of our New York peer firms, including three of the most prominent African-American lawyers in the United States: Ted Wells, former Secretary of Homeland Security Jeh Johnson, and former U.S. Attorney General Loretta Lynch. Many of our immensely talented women have become partners here, while others have gone on to successful careers in public service, business, the non-profit world, the judiciary and academia.

Indeed, when you look at our record of advancing women and lawyers of color over any meaningful period of time, we have performed at the very top of the legal profession and significantly better than our peers.

However, progress for women and people of color in the legal profession has not kept pace with other industries. Being best in class among our peers is not good enough. We have elevated our goals beyond legal industry standards and acknowledge that more targeted efforts than in the past are needed to maintain our leadership in this area. Our rich legacy of diversity provides a wonderful foundation for making measurable progress in the years ahead.

How important is it to have diverse thoughts and experiences when making business decisions?

Karp: Our long history, more than a century in the making, of breaking down barriers has taught us that diversity of backgrounds and thought – in whatever forms they take – makes us a stronger and better law firm. There VOLUME 42, NUMBER 3

Our record of “firsts” is extraordinary: we were the first major law firm to hire an African-American associate, William Coleman, in 1949; to hire an African-American female associate, Pauli Murray, in 1956; and to make a female partner, Carolyn Agger, in 1949. is no question that we provide better and more nuanced advice when we bring different perspectives and voices to the table.

Radwaner: This message is also coming in loud and clear from our clients across industries and around the world. Our clients are making significant investments in diversity and inclusion strategies and they expect their outside counsel to reflect diversity at all levels. We are fortunate to have a competitive edge, both in the diverse teams that we assemble and in our market-leading diversity and inclusion initiatives, programs and policies.

How do you measure and track the impact of your diversity efforts?

Radwaner: We look to independent industry benchmarks issued by the National Association for Law Placement, the National Association of Women Lawyers and the Minority Corporate Counsel Association, among others.

They have consistently indicated that we are far ahead of the market in a number of categories; for example, racially diverse attorneys make up 24 percent of our firm, compared with the 19 percent national average, and 14 percent of our partnership, compared to the 9 percent national average. Six percent of our partners are LGBTQ, triple the national average. Women make up 24 percent of our all-equity partnership, far above the national average, and more than a quarter of our women partners self-identify as women of color, more than double the national average.

And, as I noted, we have more African-American partners than any peer firms.

Also, we have been repeatedly recognized by publications like The American Lawyer, including 17 straight years in the top 10 percent of “Most Diverse Law Firms,” with two numberone rankings. We recently ranked the highest in the 2019 Black Student’s Guide to Law Schools and Law Firms for our percentage of black attorneys and, last year, ranked the highest in The American Lawyer in our percentage of female equity partners. The Human Rights Campaign has also repeatedly recognized our firm as a “Best Place to Work for LGBT Equality.”

But, of course, numbers don’t tell the whole story. We continuously examine what is effective and what needs to be modified to ensure that we are making the right investments to promote a diverse workforce and an inclusive culture. At the same time, we are frequently called upon by our clients and by diversity and inclusion thought leaders to share our ideas and diversity and inclusion best practices.

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Will you describe the commitment by Paul, Weiss’ senior leadership and management to the firm’s diversity efforts?

Karp: There is no issue more important to me and to the firm right now than diversity and inclusion. Over the past year, we created an Inclusion Task Force, comprised of partners, counsel and associates, designed to take a fresh look at our talent lifecycle, with particular emphasis on women, diverse and LGBTQ associates. To ensure swift implementation of the task force’s ideas and best practices, I chair the group, along with Valerie and Ted Wells.

The task force has already generated more than 70 innovative recommendations that will ensure that we nurture and retain the next generation of talented and diverse attorneys who will lead our firm and our profession. To make certain that the changes are enduring and that

There is no question that we provide better and more nuanced advice when we bring different perspectives and voices to the table.

meaningful progress is made, we are imposing strict accountability among our partners measured against objective metrics.

We a r e o n e o f t h e f e w l a w f i r m s with a C-Suite executive focused entirely on the management and execution of our diversity and inclusion goals. Our Chief I n c l u s i o n O f f i c e r, D a n y a l e P r i c e , w a s recently recognized as among the nation’s 100 most influential women of color by EBONY magazine.

Will you discuss the opportunities for women at senior levels in the legal profession?

Radwaner: This is a fantastic time to be a woman lawyer. Women are increasingly stepping into leadership roles throughout the profession. In-house and across the industry, women are making gains. But progress has been slow, and there is so much room for improvement.

Now, more than ever, conversations about the advancement of women in the profession, and the obstacles to that advancement, are happening at all levels across the industry.

In-house lawyers and law firm leaders are getting together to brainstorm and to share ideas.

We all recognize that we have to get this right.

This intensive attention to gender diversity in the profession – and across society – promises to open up even more opportunities for women.

What advice do you give to young people interested in a career in law?

Karp: Young people interested in the law should identify their passions and invest time and energy to learn all they can about those areas in which they have the greatest interest.

If a legal career interests you, find a way to engage with the law in its many manifestations. As you learn more about the profession, concentrate on what you enjoy most and do best, and find role models and mentors who can inspire and teach you. There is no more rewarding profession, in my view, provided you do it right.

Radwaner: I always share with young lawyers the importance of looking for opportunities to distinguish themselves. There is no one path to success. But to succeed, there is no substitute for hard work and dedication. At the same time, keep in mind that asking for help is a strength, not a weakness. Find those advisors and mentors who can help you grow and advance. Last, nurture your communities; you never know where your friends and colleagues from college, law school, or your professional career will lead you.

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DIVERSITY & INCLUSION

Create, Articulate, Regulate and Evaluate An Interview with Lori George Billingsley, Chief Diversity and Inclusion Officer, The Coca-Cola Company EDITORS’ NOTE Lori Geor ge I’ve been involved in diversity and Billingsley has 17-years of leaderinclusion in every role I’ve had at Cocaship experience with Coca-Cola. In Cola, so this position is a culmination of her current role, she leads the compaall of those experiences. We’ve all been ny’s Global Diversity and Inclusion on a diversity journey for many years Center of Excellence, along with the and, recently, have embraced the imporDiversity, Inclusion and Workplace tance of inclusion. It’s an exciting time to Fairness teams for North America. Prior make an impact in both of those areas, in to assuming this role in October 2018, the U.S. and globally.

Billingsley served as Vice President of You were named Chief Diversity Community and Stakeholder Relations and Inclusion (D&I) Officer in late for Coca-Cola North America, where 2018. What have you learned so far Lori George Billingsley she led community giving and engageand what opportunities do you see? ment, stakeholder relations, employee For my first 90 days, I was on a lisvolunteerism, community board placements, disas- ten-and-learn tour. I talked to employees across all ter relief and the company’s 5by20 initiative in levels of the company, as well as Human Resources North America. Billingsley is also an ordained min- (HR) and senior leadership. I also met with D&I ister and serves as an executive advisor to the compa- officers at other companies and had the opportuny’s Multicultural Leadership Council, Global Women’s nity to present to our Board of Directors’ Public Leadership Council and Millennial Voices Leadership Issues and Diversity Review Committee.

Council. She also sits on several boards, including the I walked away with some important learnboard of directors of The Congressional Black Caucus ings. Company leadership was concerned about Foundation Inc., Women’s Business Enterprise the progression of our pipeline and difficulty of National Council, ColorComm, NAACP Foundation sourcing diverse senior-level talent. Many associand Arete-Executive Women of Influence. ates were not aware of all of our D&I programs, and some thought our work was only U.S.-focused.

COMPANY BRIEF The Coca-Cola Company Others were unclear about their path to promotion (coca-colacompany.com) is a total beverage at the company. I discovered a need for our office company, offering over 500 brands in more to strategically integrate better with HR, versus than 200 countries and territories. In addition operating as a standalone department, to focus our to the company’s Coca-Cola brands, its portfo- shared efforts on addressing areas of opportunity lio includes some of the world’s most valuable and building for the future. beverage brands, such as AdeS soy-based bevWill you share your key priorities? erages, Ayataka green tea, DASANI waters, Del I developed a destination statement based Valle juices and nectars, Fanta, Georgia cof- on everything I learned during my first 90 fee, Gold Peak teas and coffees, Honest Tea, days. We hear a lot about how community Innocent smoothies and juices, Minute Maid giving is in our company’s DNA. From my juices, POWERADE sports drinks, Simply juices, point of view, diversity and inclusion should smartwater, Sprite, vitaminwater and ZICO be, too. In support of this destination statecoconut water. The Coca-Cola Company is con- ment, I landed on four strategic imperatives stantly transforming its portfolio, from reducing under the CARE acronym: (Create, Articulate, sugar in its drinks to bringing innovative new Regulate and Evaluate). Create is about buildproducts to market. The company also works to ing an inclusive environment by engaging reduce its environmental impact by replenishing diverse talent and influencing recruitment, water and promoting recycling. With its bottling development, advancement and retention. We partners, The Coca-Cola Company employs more will Articulate our progress through proactive than 700,000 people, helping bring economic communications. Regulate means managing opportunity to local communities worldwide. our workplace in compliance with the law.

Evaluate refers to providing a systematic set of Coca-Cola was recently ranked among the 50 tools like a D&I assessment we plan to initibest companies for diversity and in the top ate with our business units to identify best 10 largest U.S. companies in terms of com- practices and opportunities for improvement. mitment to gender equality. What excited you How do you define diversity and incluabout assuming your current role? sion at Coca-Cola?

34 LEADERS

Diversity is about things you can see. Inclusion is about feeling, once you’ve been invited in, that you’re accepted as part of what you’ve been invited into. Inclusion is when your voice is heard and valued and that you feel like part of the team. Dr. Steve Robbins, a renowned speaker on diversity and inclusion topics, is helping our company with “unconscious bias” education with a focus on the insider versus outsider mentality. We want to make sure everyone feels like an insider and feels included.

What is unconscious bias and how can it affect personnel decisions?

Unconscious bias is being unaware of your biases – and we all have them. When it comes to how it affects a company’s personnel decisions, it is most evident in hiring decisions. For example, let’s say you have a resume from a job applicant and you see that they graduated from your alma mater. You may think to yourself, unconsciously, “They’ll be great!” The same could apply to someone from your hometown, who lives in your neighborhood, who attends your church or maybe has kids in school with your kids. You have an unconscious preference because of your familiarity. We try to counteract this through “conscious inclusion.” This involves being aware of your unconscious biases and making a deliberate attempt to be inclusive.

Coca-Cola has earned a reputation as one of the world’s most inclusive brands.

Does this provide an even greater responsibility to be a supporter of diversity and inclusion both inside the company and in the community?

Yes, we absolutely have a greater responsibility. We must be a champion for our business, our people and our communities. Our partners and suppliers also look to us to be a vocal and active leader in the diversity and inclusion space.

What excites you most about this role?

In my previous role, I focused on funding organizations that do great things in the community. My current role focuses more on our culture and the experiences our associates share inside the four walls of the company. I am fortunate that I get to directly see the impact on the organization.

Also, the fact that this is a global role is tremendously exciting. Our company has identified a set of growth behaviors to serve as a foundation of the culture we hope to build. “Inclusive” is one of these. Inclusion is a key priority for our business and everyone is expected to operate with an inclusive mindset.

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DIVERSITY & INCLUSION

Driving the Best Outcomes An Interview with Kara Helander, Managing Director and Chief Inclusion and Diversity Officer, The Carlyle Group EDITORS’ NOTE Prior to joining Diversity Officer, I work with leadThe Carlyle Group, Kara Helander ers across the organization to make was a Managing Director at our commitment to diversity and B l a c k R o c k w h e r e s h e le d th e inclusion actionable while we confirm’s global inclusion and divertinue to deliver the best results for sity, and philanthropy initiatives. our stakeholders.

Harvar d Business School proDoes recruiting the best and filed those ef forts in the case brightest talent ensure a certain study, “BlackRock: Diversity as a level of diversity or do you need Driver of Success.” More recently, to have hiring processes in place Helander consulted with or gato build a diverse workforce? nizations to develop corporate We very much need to be intenKara Helander social responsibility and divertional about attracting professionals sity strategies. She founded the with diverse backgrounds, experiScience of Diversity and Inclusion (SODI), ence and expertise. We all tend to gravitate a coalition of top companies and behav- towards those who remind us of ourselves ioral scientists working to design and test and rely on our own networks. This means new approaches to accelerate diversity and we have to be deliberate in asking, “Who do inclusivity in the workplace. She previously we need on our teams to make sure we are led CSR at Barclay’s Global Investors (BGI). taking advantage of the business opportuniPrior to BGI, Helander launched and led ties in front of us? What experience, expertise the Western Region for Catalyst in Silicon and backgrounds will give us an edge?” Then, Valley. She serves on the Board of Directors once we build well-rounded teams, we need of Leading Educators and received her B.A. to cultivate their collective expertise to drive from Vanderbilt University and her M.B.A. the best decisions. from The Wharton School at the University How broad is the definition of diverof Pennsylvania. sity at Carlyle?

Diversity means having a wide range FIRM BRIEF The Carlyle Group (carlyle.com) of experiences, approaches and cultures is a global investment firm with deep industry on our team. It is not just about gender or expertise that deploys private capital across four race. Diversity encompasses the meaningbusiness segments: Corporate Private Equity, ful differences that we can easily see, such Real Assets, Global Cr edit and Investment as race and gender and those differences Solutions. With $222 billion in assets under that we can’t see, like cultural backgrounds management as of March 31, 2019, Carlyle’s and sexual orientation. Our leaders and purpose is to invest wisely and create value on managers must be aware and thoughtful behalf of investors, portfolio companies and the about all of those differences so they can communities in which it lives and invests. The bring out the best in the people and teams Carlyle Group employs more than 1,725 people they lead. in 33 offices across six continents.

How do inclusion and diversity relate?

How do you define the role of chief incluInclusion is essential to realizing the sion and diversity officer and has that benefits of diversity. If you paid attention to role become a critical part of business my title, it is Chief Inclusion and Diversity strategy?

Officer for a very specific reason – you can Inclusion and diversity is a critical com- bring in all the diverse talent in the world, p o n e n t o f C a r l y l e ’ s b u s i n e s s s t r a t e g y . but if you don’t have a culture that can We are becoming increasingly global and tap the insights and expertise those diverse interconnected at an accelerated pace. We individuals bring, you’re not going to benneed diverse teams with a range of experi- efit from their contribution. At Carlyle, we ences, expertise and perspectives, and we focus quite extensively on creating a culneed to foster a culture that brings out the ture that ensures every individual and every best thinking within those teams to deliver team can achieve and contribute to their outstanding results. As Chief Inclusion and full potential.

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How critical is it in this role to have such a strong commitment and engagement from the C-Suite and senior leadership of the firm?

Commitment to diversity and inclusion from the top is what brought me to Carlyle.

Before I started, I sat down with Glenn Youngkin and Kewsong Lee, our co-CEOs, to understand the nature of the partnership that I could expect from them. They have been absolutely committed from the start. They co-chair our diversity and inclusion council, which we recently relaunched and on which the heads of each of our major funds and functions sit. Diversity and inclusion is one of our business priorities. Each function and each fund is creating, or has created, its own specific action plan to enhance inclusion and diversity in their part of the firm and we are tracking our progress against those plans. It’s not just words, but very tangible action that I’m seeing from our co-CEOs and other leaders across the firm.

Is it important to have metrics in place to track the impact of Carlyle’s diversity and inclusion efforts?

Metrics are critical to understanding where we should take action. When I started, we did a deep dive into our metrics to search for areas of opportunity and used the findings to develop specific, targeted action plans.

When developing metrics, you need both leading and lagging indicators. You want to measure outcomes in terms of representation, but you also need to measure leading indicators, such as how many employees, particularly diverse employees, have a career action plan or a sponsor, or how many job slates have more than two diverse candidates. Without metrics, you don’t know whether you are driving change and engaging in the right behaviors that will lead to progress.

What attracted you to this type of work?

As a woman in business, as the mother of mixed-race children, and as the wife of an immigrant, these topics are very close-to-home for me. Wanting to create environments and workplaces where my children can thrive and succeed is tremendously motivating for me. We are also at a pivotal moment as a society where this work is critical to the ongoing success and health of our communities. Being able to contribute to that is enormously rewarding.

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DIVERSITY & INCLUSION

A Healthcare Innovation Company An Interview with David L. Casey, Vice President, Workforce Strategies and Chief Diversity Officer, CVS Health EDITORS’ NOTE David Casey joined objectives. The breadth and depth of CVS Health in 2010 and is responsithe scope of work touches every busible for developing and driving diverness unit and department across the sity and engagement strategies across company. the company. In prior roles, Casey was How do you define what makes Chief Diversity Officer at WellPoint, CVS Health an industry leader? where he led the development and As the nation’s premier health innoexecution of enterprise-wide strategies vation company, CVS Health touches the to leverage diversity management for lives of more than 100 million patients the workforce, workplace and marketand customers every year – each of them place. He was also Regional Director with unique backgrounds and needs. So of Business Development for Bernard our company’s commitment to strategic David L. Casey Hodes Group, where he consulted with diversity management is not a stand-alone regional, national and international objective; it is deeply rooted in our purclients. Casey is a veteran of the United States Marine pose of helping people on their path to better health.

Corps and served in Operation Desert Storm. He How engrained is diversity and inclusion has a B.S. degree in Business Administration from in CVS Health’s culture and values?

Indiana Wesleyan University.

Our company’s strategic approach to managing diversity touches every aspect of our business, from COMPANY BRIEF CVS Health (cvshealth.com) is a maintaining a diverse workforce and inclusive culture, health innovation company with a presence in all 50 to spending nearly $2 billion with more than 3,000 states. The company has more than 9,900 retail loca- small and diverse businesses in our supply chain, to tions, approximately 1,100 walk-in medical clinics, offering products and services that meet the needs of a leading pharmacy benefits manager with approxi- all of our customers, patients and communities. As a mately 92 million plan members, a dedicated senior healthcare innovation company, the diverse perspecpharmacy care business serving more than one mil- tives and experiences of our 295,000 colleagues are lion patients per year, expanding specialty pharmacy essential to staying ahead of the needs of our customservices, and a leading stand-alone Medicare Part ers, patients, members and clients.

D prescription drug plan. CVS Health also serves an Will you highlight CVS Health’s diversity estimated 38 million people through traditional, vol- and inclusion strategies? untary and consumer-directed health insurance We have a four-pillar framework for strategic products and related services, including rapidly diversity management which is designed to engage expanding Medicare Advantage offerings. every colleague in the process and enable every CVS Health has a dedicated Workforce Initiatives business function to deliver on both our near- and team which partners with state and federal workforce longer-term goals. While many annual initiatives agencies to provide employment services and training evolve to meet the dynamic needs of the customto underserved communities. It has helped thousands ers, patients and communities we serve, these of people access meaningful employment opportuni- longer-term objectives provide a consistent ties. It also works with schools, churches, universities, and methodological framework: and faith-based and community organizations to Workforce Representation – a workforce reflechire people with diverse backgrounds. tive of the customers, patients, members and communities it serves.

Will you provide an overview of the role of a Inclusion and Belonging – an inclusive culture chief diversity officer and your key areas of whereby every colleague has a voice, a seat at the focus? table and authentic caring for one another.

As Chief Diversity Officer and Vice President Talent Systems – equitable access to growth of Workforce Strategies at CVS Health, I am and development, regardless of background. responsible for leading the strategic diversity Marketplace Diversity – meeting and exceedmanagement, AA/EEO and workforce initiatives ing the needs of all customers, clients, communities functions for CVS Health. As part of my role, I and external constituents. lead a team to develop workforce representaHow does CVS Health engage its employtion, inclusion and belonging, talent systems and ees in its diversity efforts? marketplace diversity strategies, with a focus At CVS Health, we work to educate, equip on measurable results aligned to our business and empower all of our nearly 300,000 colleagues 36 LEADERS

across the organization to deliver on our strategic objectives. This approach is anchored by both a top-down and bottom-up model. Our CEO, Larry J. Merlo, and his direct reports serve as the Diversity Management Steering Committee. As such, they all commit to serve as executive sponsors for one of the company’s 15 Colleague Resource Groups (CRGs).

A group of approximately 20 senior executives from across the business serve as the company’s Diversity Management Leadership Council (DMLC). The DMLC has a three-part charter to provide strategic direction and guidance on strategic objectives, serve as peer coaches to demonstrate how to leverage diversity management in their respective business units, and to amplify the company’s goals and progress through internal and external communications channels. Shoring up this extended organizational chart are more than 20,000 colleagues participating in CRGs and a host of business unit, market-driven and departmental diversity councils.

When you are focused on hiring the best talent, does that bring with it a certain level of diversity or do you need to include systems in your recruitment process in order to make sure you are reaching your diversity goals?

It’s really both. Developing a diverse, highlytrained workforce that reflects our customers and the neighborhoods in which they live is a win-win for CVS Health and the nearly 10,000 communities we are privileged to serve. We look for colleagues from often untapped or overlooked pools of talent and have teams focused on hiring individuals with disabilities, mature workers, veterans, underserved youth and others, which we believe gives us a competitive advantage. It’s a great example of how being guided by our purpose leads to solutions that help improve the health of our patients and our communities. In business, the things that matter tend to get measured, so we do in fact measure progress across any number of internal and external benchmarks.

What excited you about the opportunity to join CVS and has it been what you expected?

CVS Health has evolved so much over the past nine and a half years, I don’t think I ever could have expected early on to have the level of impact we have been able to have over that timeframe. To engage in a body of work that has a direct impact on our ability to serve more than 100 million people a year and empower more than 295,000 colleagues is more than I could have ever hoped for. The issues can be complex at times but, quite frankly, I consider myself lucky to be able to do it.

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DIVERSITY & INCLUSION

An Unrivaled Place for Talent An Interview with Lareina Yee, Chief Diversity and Inclusion Officer, McKinsey & Company EDITORS’ NOTE Lareina Yee is Will you highlight McKinsey’s also a member of the global partcommitment to research and thought nership service team, the firm’s leadership in this area?

16-person leadership team, and the Thought leadership allows us to global leader of McKinsey’s technollearn together with other companies. ogy hardware and services practice.

We’re in the cohort with everybody She brings 20 years of experience to else. We’re trying to do better. companies in the technology sector.

The research allows us to underAs a thought leader at McKinsey, stand the state of the state. We look at she is a sought-after speaker and the common challenges and the soluauthor on digital disruption, sales tions that people are applying. We growth and technological transsearch for the next level thinking that Lareina Yee formations. Determined to win the we should be applying to ourselves war for talent and gender parity, and to others. That research is really Yee leads Women in the Workplace, a research important for us and our clients. Our managpartnership with LeanIn.org and The Wall Street ing partner once said, “I’ve been reading what Journal. She also frequently speaks about women we published, and I want to make sure we’re in business, including at Fortune magazine’s implementing all of it.”

Most Powerful Women Summit, the Makers Our clients give us a lot of feedback in Confer ence, Techonomy, the Pr ofessional terms of diverse skills, talent, backgrounds and Business Women of California Conference, and capabilities that are really important to them. the Women’s Forum. Outside of McKinsey, Yee They share how they are evolving and developserves on the board of Safe & Sound, a not-for- ing more diverse management teams and what profit focused on child-abuse prevention. their aspirations are.

FIRM BRIEF McKinsey & Company (mckinsey.com) is a global management consulting firm committed to helping institutions in the private, public and social sectors achieve lasting success. With consultants in more than 132 cities in 66 countries, across industries and functions, it brings vast expertise to clients anywhere in the world. McKinsey works closely with teams at all levels of an organization to shape winning strategies, mobilize for change, build capabilities and drive successful execution.

How do you define the role of a chief diversity and inclusion officer and how do you focus your efforts within McKinsey?

McKinsey, like other companies, has elevated the diversity and inclusion role to one that sits on the executive management team. Other companies have elevated the role as well, underscoring its importance to the strategy and the business. We find that diversity and inclusion is not a nice to-have; it’s a must-have for the culture and fabric of an organization.

From a leadership perspective, the idea of putting a senior partner in this role to work with our CEO and our management team is an acknowledgement that it’s critical for our culture and our people.

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In the end, it’s about feeling accepted, included, connected and that you belong to the community and are inspired to be here.

Internally, we listen to our people and study what inspires them to be at McKinsey. We want to be an unrivaled place for talent. We have to think a lot about how we deliver that experience as things change. Those are the points of inspiration that guide our thoughts on how we execute.

In the end, it’s about feeling accepted, included, connected and that you belong to the community and are inspired to be here.

How does diversity relate to inclusion?

Diversity is based on counting the representation of the various groups. Inclusion is based on what their experiences are like. You need representation which is the counting, and you need experience which is the quality of what it feels like to actually be in the organization. You really need both to deliver on the aspiration.

Inclusion can feel nebulous. We’ve been working on trying to help people make it more concrete and developed an inclusion index. We look at if our people feel connected to those around them and have a sense of belonging.

Creating a remarkable experience, not just for a point of time, but over the course of a career, is dependent on inclusion.

What progress has been made in the effort to raise the percentage of women in top-level positions?

Progress has been slow in corporate America. We still see that one in five in a top team across corporate America are women. This pattern has held for the last decade. We see a drop-off to manager, a drop-off to director, and another drop-off to VP. By the time you’re all the way at the top, companies on average have 20 to 25 percent women at the level at which they report to the CEO. I do think that people are more aware of some of the challenges that contribute to those outcomes such as bias, the lack of sponsorship, insufficient work flexibility or too few networks that help women. I think that companies are making strides in thinking through this, but it has to be done consistently; it won’t happen if it’s just pushed for a quarter or two.

What excited you most about the opportunity to lead McKinsey’s diversity and inclusion efforts?

I was really excited to take on the challenge for two reasons. I think that if I can contribute to a more inclusive and gender balanced environment at McKinsey and also help my clients improve, it will be incredibly meaningful.

We also have an incredibly young organization. I think it is the least I can do to help contribute to making the best environment for all of them; to help our next generation reach their full potential and to feel that McKinsey is the place where they belong.

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DIVERSITY & INCLUSION

Inclusive Leadership An Interview with Sonia Cargan, Chief Diversity Officer, American Express EDITORS’ NOTE Sonia Cargan women’s spending power when develwas appointed to her current role oping and marketing new products. in March 2018. In this role, she American Express aims to ensure a leads a seven member team of D&I diversity of perspectives at every level experts. She also serves as a liaiand in all areas of the company, espeson to the company’s 16 Colleague cially in decision-making and problemNetworks that have more than 100 solving scenarios. This generates the global chapters including the Black best ideas that drive innovation and, Engagement Network, the Hispanic ultimately, business growth.

Origin & Latin American Network Will you highlight the compaand the Jewish Network. Prior to ny’s efforts to create a diverse and this position, Cargan spent 22 years inclusive environment?

Sonia Cargan serving in various roles at American American Express has a long hisExpress including Vice President of tory of being focused on inclusion and HR in the U.K. and in Singapore and, most diversity. Over the years we have continually recently, as Vice President, HR business partner, evolved and expanded programs to support our for global finance and corporate functions in colleagues and business imperatives. Our core New York City. inclusion and diversity strategy is about valuing and embracing difference and creating an enviCOMPANY BRIEF American Express (american ronment where all colleagues are engaged, have express.com), together with its subsidiaries, pro- a voice, and can achieve success. We are focused vides charge and credit payment card products, on enabling a culture of inclusion and diversity at as well as travel-related services, to consumers American Express, driving the integration of our and businesses worldwide. It operates through inclusion and diversity architecture into key talent three segments: Global Consumer Services, Global and business strategies and elevating the brand Commercial Services, and Global Merchant and narrative and our presence both internally and Network Services. The company’s products and externally. Our goal is to set the gold standard for services include charge and credit card products, inclusion and diversity. Ultimately, our diversity as well as other payment and financing products; efforts focus on improving the representation of network services; expense management products underrepresented minorities and women, while and services; travel-related services; and prepaid helping all colleagues achieve great things. products. Its products and services also comprise How does American Express engage its merchant acquisition and processing, servic- colleagues in its diversity efforts? ing and settlement, point-of-sale marketing, and Colleague engagement is essential to the sucinformation products and services for merchants, cess of our diversity initiatives. We have worked as well as fraud prevention services along with diligently over the past 30 years to build a culture the design and operation of customer loyalty pro- where all colleagues feel included and engaged. grams. American Express was founded in 1850 We track inclusion efforts in our colleague surand is headquartered in New York City. vey, which indicates that our employee inclusion level is quite high. However, we always strive How do you define the r ole of Chief for improvement and have recently launched Diversity Officer for American Express? a new training program focused on inclusive As Chief Diversity Officer, I am responsible leadership. The inclusive leadership experience for overseeing American Express’ global inclu- equips leaders with strategies and skills for leadsion and diversity strategy. This includes lead- ing inclusive teams and is designed to motivate ing a team of inclusion and diversity specialists, colleagues to engage in specific behaviors to overseeing our company’s 16 active Colleague foster an inclusive environment. We also offer a Networks with more than 100 global chapters, host of other substantive leadership programs, and implementing initiatives that help advance partnering with several organizations to provide minority colleagues. As an instrumental part of external development experiences for highmy role, I consider our stakeholder needs, as potential women and multicultural colleagues. well as our business objectives, and determine Our Colleague Networks also go a long way in how inclusion and diversity will help colleagues increasing engagement. Since 1987, Colleague deliver those objectives, such as understanding Networks have brought together people with 38 LEADERS

shared backgrounds and interests to interact with and learn from each other. In the U.S., a large majority of our colleagues reported that they were a member of at least one Colleague Network in our 2017 Colleague Pulse survey.

The same survey also indicated that colleagues who participate in networks are more engaged at the company. With 16 networks and more than 100 chapters globally, our Colleague Networks encompass the full spectrum of diversity, including disability, ethnicity, faith, gender, gender identity, generations, sexual orientation and veteran status.

How important is American Express’ commitment to diversity and inclusion in attracting the next generation of leaders?

Our stakeholders are increasingly diverse, and Millennials and Generation Z are extremely savvy in recognizing that and aligning themselves with a company that mirrors those stakeholders. Our commitment to inclusion and diversity helps us bring in some of the best and brightest among the emerging workforce. Our Global Talent, Leadership and Learning team recruits on college campuses, leverages colleagues’ personal networks, and participates in events that attract diverse populations. We also partner with professional associations to ensure that we’re tapping into top talent. Additionally, we recently created a new Vice President of Diversity Executive Engagement role. This vice president focuses on expanding the recruitment of women globally at the vice president and above levels, as well as underrepresented minorities in the U.S., helping build a robust pipeline of diverse prospective candidates.

What has made your time at American Express so special?

I joined American Express more than 22 years ago and prior to my current position, I was a senior HR business partner for a portfolio of groups including Global Finance, the General Counsel’s Organization, Global Advertising and Brand Management, the Internal Audit Group and Corporate Affairs & Communications – truly a diverse set of roles. I stayed with the company for the past two decades because I believe strongly that I have a voice with American Express. I’m a woman of color, a working mom, and have spent time living and working on three different continents. I’ve harnessed my diversity to impact the business and want all American Express colleagues to know they can do the same.

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DIVERSITY & INCLUSION

America’s Department Store An Interview with Shawn Outler, Executive Vice President and Chief Diversity Officer, Macy’s, Inc. EDITORS’ NOTE Shawn Outler the most broad and far-reaching ways – has held her curr ent post since from how we recruit and develop talent October 2018. During her career and how we treat customers, to how at Macy’s, she has been Executive we work with community partners and Vice President Licensed Businesses, make each of our 130,000 colleagues feel Food Services and Multicultural empowered to contribute to their fullest Initiatives; Executive Vice President potential.

Licensed Businesses, Pricing and At Macy’s, we know diversity is a Multicultural Strategy & Operations; key driver in the long-term success of our Senior Vice President - Lease, Pricing business and is critical to our business and Multicultural Initiatives; Senior strategy.

Vice President - Weddings, Gifting Will you discuss Macy’s diversity Shawn Outler Strategy and Multicultural Business and inclusion initiatives?

Development; Group Vice President At Macy’s, diversity and inclusion Fashion Forecasting and Operations, Leased are essential to our culture and core values. As one Businesses and Multicultural Development; Group of the world’s leading retailers for fashion, beauty, Vice President - Multicultural Merchandising and home, we recognize that we are strongest and Vendor Development; and Divisional Vice when we are representative of the many commuPresident-Merchandise Manager Better Traditional nities we serve. We believe that no one should be Sportswear. She has also served as Divisional Vice discriminated against because of their differences, President - Merchandise Manager Updated Classic including, but not limited to, age, ability, ethnicity, Sportswear and Buyer-Better Dresses, Status Denim, gender, gender identity and expression, religion Women’s Casual Sportswear, Suits, and Leather or sexual orientation. Our vision is to be a beaOuterwear for Lord & Taylor. She received her B.S. con of diversity and inclusion for our colleagues, in Marketing and Transportation/Distribution from customers, and communities. Our commitment to Syracuse University. diversity and inclusion is embedded in all areas of our business – from our colleagues, suppliers we COMPANY BRIEF Macy’s (macys.com) is one of do business with, community engagements, to our the nation’s premier retailers with fiscal 2018 sales of customer experience and marketing. Our differ$24.97 billion and approximately 130,000 employ- ences and experiences drive our innovation, which ees. The company operates approximately 680 is the source of our competitive edge and sustaindepartment stores under the nameplates Macy’s and ability. Each of our focus areas have specific strateBloomingdale’s, and nearly 190 specialty stores that gies and we track our progress against KPIs, as we include Bloomingdale’s The Outlet, Bluemercury, do in every other aspect of our business. and Macy’s Backstage. Macy’s operates stores in 43 What is the focus and mission of Macy’s states, the District of Columbia, Guam and Puerto Diversity & Inclusion Business Council?

Rico, as well as macys.com, bloomingdales.com I serve alongside our CEO, Jeff Gennette, as and bluemercury.com. Bloomingdale’s stores in the Co-Chair of the Diversity & Inclusion Business Dubai and Kuwait are operated by Al Tayer Group Council, which is a group of cross-functional leadLLC under license agreements. Macy’s corporate ers throughout the organization who ensure our offices are located in Cincinnati and New York.

D&I strategy and work are integrated into our overall business practices. The DIBC’s mission is to proHow do you define the role of the chief diver- pel Macy’s to best-in-class in the D&I space. sity officer and how important is it that the What do you see as the impact of having role is engaged with business strategy? a diverse and inclusive workforce on business As Chief Diversity Officer, I have the unique outcomes? opportunity to shape Macy’s culture by fostering a D&I is so important and so connected to our diverse and inclusive environment, developing top business success. Studies show that there is a direct talent, and effectively responding to the needs and correlation between diverse and inclusive workexpectations of our customers. In my role, I also place environments and strong business outcomes. work with our Employee Resource Groups, our As America’s department store, having a strong Store and Customer Service teams, and the People group of leaders from diverse backgrounds injects Leaders throughout the organization to ensure that creativity and an innovative vision into our busiwe are thinking about diversity and inclusion in ness. We’re able to best serve our customers when VOLUME 42, NUMBER 3

our workforce reflects its diversity. Diversity and inclusion are key ingredients in propelling Macy’s on its path to growth.

How critical is diversity and inclusion in attracting talent and how do you engage Macy’s employees in its diversity efforts?

Research shows that companies whose colleagues feel accepted by their employer and peers will be more successful. Employee Resource Groups are an integral piece of our diversity and inclusion practice at Macy’s. Our ERGs are strategic business drivers, as they help develop future leaders, foster colleague engagement, build alliances across differences in the workplace, drive innovation, and cultivate an inclusive culture. We are proud to have built a culture of inclusivity and have found it to be one of our strongest attributes in attracting talent. Macy’s is a place the best and brightest want to work and stay because they feel nurtured and challenged.

Are there opportunities for women at senior levels in the industry and what advice do you offer young women interested in retail?

Across the Macy’s, Inc. workforce, women represent more than 70 percent of the company and more than 60 percent of those at or above the manager level. Helping our colleagues thrive and creating rewarding and challenging opportunities at every stage of their career is part of our culture and how we operate. My advice for young career women is to create meaningful alliances that can help you along your journey, always advocate for yourself, and do not put limits on what it is that you can achieve.

You joined Macy’s in 2006 and have held a number of leadership roles within the company. Does it feel as if you have had the opportunity to have a number of different careers within the same company?

Over the past 13 years at Macy’s, I’ve had several opportunities to meaningfully contribute to our success as we’ve journeyed on our path to growth.

The different roles I’ve held have been both challenging and exciting and have kept things fresh and new. I recognize that leading several business functions during my tenure has well prepared me to address the needs of our diverse workforce.

In my first months on the job as Chief Diversity Officer, I had an opportunity to attend a few D&I conferences, meet several D&I leaders, and dig into some of the very impressive work being done at home and in the field. I came away inspired and energized by the opportunity to lead Macy’s efforts in becoming best-in-class.

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DIVERSITY & INCLUSION

Entrepreneurship & Diversity Latino Entrepreneurship and Economic Growth EY builds a better working world by helping businesses grow. One way it does this is by promoting entrepreneurship and an inclusive work environment. For example, the firm recognizes the world’s leading entrepreneurs via a global Entrepreneur Of The YearTM program. EY also aligns its work and its people to pressing social issues, such as looking for ways to ensure economic growth and an abundant and capable labor pool. These efforts result in client insights, expand market leadership and allow it to gain most favored employer status.

One example of this is EY’s recent collaboration with the Peterson Institute for International Economics (PIIE) work in promoting a conversation around the contributions Latinos make to economic growth in America.

Ted Acosta - EY Americas Vice Chair - Latin America South Region, Managing Partner Economic growth is the lifeblood of our nation.

The better we can harness the factors of growth, be it labor or capital, the more robust and inclusive our growth can be.

EY approached PIIE with a simple question – what are the factors of economic growth for our country and where will that future growth come from? What resulted is a study, “The Economic Benefits of Latino Immigration: How the Migrant Hispanic Population’s Demographic Characteristics Contribute to U.S. Growth,” which describes how the Latino community in the United States has contributed significantly to U.S. economic growth in recent decades, and will continue to do so over the next 20 to 30 years. In addition, the Latino community is nearly twice as likely to start a new business as the rest of the U.S. population.

These findings highlight the extraordinary opportunity we have to harness economic growth. The narrative of Latino’s contributing to America is one that EY has taken seriously. We have participated in several settings, including L’ATTITUDE, the Latino Donor Collaborative and Diversity Inc. We were honored recently to have Forbes Media CEO Steve Forbes join panels to discuss the Peterson findings and the implications of the study. We have also engaged 40 LEADERS

our clients via a Latino Entrepreneurs Panel, sharing the path Latino entrepreneurs take to success with captive audiences.

We are excited about harnessing economic growth and driving a positive narrative for Latinos in America and to the global economy.

Adam Posen - President of Peterson Institute for International Economics As a think-tank, we like to go below the surface to analyze the economic data that drives critical discussions by corporate leaders and policymakers. When we were approached by EY to further look at the human factors in economic growth, our research revealed a vibrant cohort of first, second and third generation Latinos who are raising U.S. economic dynamism and growth on a scale that has not yet been truly appreciated.

Similarly, when we researched the impact of gender parity in the work place with EY’s support and encouragement, we uncovered hard facts in the data that had been long overlooked.

That study, “Is Gender Diversity Profitable? Evidence from a Global Survey,” establishes that increasing the presence of women in upper management positions can improve firm performance. Greater female management presence in businesses are associated with national policy choices, less discriminatory attitudes towards female professionals and even education, as well as the availability of paternal leave.

The sources of additional economic growth and dynamism are to be found in diverse segments of our population if we are willing to take a fresh look and give voice to the facts that convincingly show these opportunities. We are proud to partner with EY to bring these studies to a larger audience and raise the profile of such ideas for business leaders.

Anthony Caterino - EY Vice Chair and Regional Managing Partner for the Financial Services Organization At EY, we firmly believe diverse perspectives, combined with an inclusive culture, drive better decision-making and stimulate innovation.

Diverse perspectives stem from entrepreneurs – those who think outside of the box to improve our world, ultimately driving economic growth and prosperity. EY has been supporting the success of our entrepreneurs in the marketplace for several decades. One of our key programs, founded by EY in 1986, is Entrepreneur Of The YearTM (EOY).

Through EOY, we celebrate unstoppable entrepreneurs who redefine the way we live, work and play. Now in its 33rd year, the program has grown dramatically to include more than 145 cities and 60 countries worldwide. It celebrates entrepreneurs from region programs around the world, eventually culminating in EY World Entrepreneur Of The YearTM. Our work with PIIE and its studies show that there are significant market opportunities for every type of financial institution, including banks, insurance companies, asset managers and FinTech entrepreneurs within the Latino community.

Karyn Twaronite EY Global and Americas Diversity & Inclusiveness Officer At EY, we believe that a diverse and inclusive environment, where people from all backgrounds can experience a sense of belonging and bring their full selves to work, are central to helping us achieve our purpose of building a better working world. It can unlock business benefits by driving better decision-making, increasing organizational agility and strengthening resilience to disruption.

Studies show that when people feel like they VOLUME 42, NUMBER 3

“The Economic Benefits of Latino Immigration: How the Migrant Hispanic Population’s Demographic Characteristics Contribute to U.S. Growth” describes how the Latino community in the United States has contributed significantly to U.S. economic growth in recent decades, and will continue to do so over the next 20 to 30 years.

- Ted Acosta - EY Americas Vice Chair - Latin America South Region, Managing Partner belong, they are 3.5 times more likely to contribute to their full innovative potential.

This isn’t just for the benefit of our own bottom lines – it also extends to the growth of the communities around us and the health and well-being of our people. Our recent EY Belonging Barometer found that 57 percent of Hispanic respondents in the U.S. believe that exclusion can feel like a form of bullying and 27 percent of Hispanic respondents feel they belong most at work when their unique contributions are valued. As the Peterson Institute for International Economics report (https://piie. com/system/files/documents/wp19-3.pdf) supports, entrepreneurial spirit is not only valued at EY, it’s crucial to our success as an organization and within our working world.

We’re continuing to focus on building a culture where all people feel like they belong through providing equitable access to relationships, assignments and development opportunities for our minority professionals, encouraging sponsorship across differences and offering networking programs to enhance their professional opportunities and grow their careers.

Belinda Pestana - EY Partner, FSO and Business Tax Services Leader I have always been ambitious, even at a young age I set goals for myself academically.

From the day I walked in the d o o r at EY, I knew I wanted to be a partner. What I did not know was how much I would like the entrepreneurial side of being a partner. Once that goal was achieved I set the next and the next. Client work invigorates me and my favorite time at work is when I am on a pursuit with a diverse team and clearly winning as a team. One of the best ways we can impact our workplace is to be the change we want to see. I personally want to see more Latino partners and Latinos in leadership at EY. It’s a grass roots effort for me. I have a pay it forward philosophy. I make it my goal to invest in our Latinos through conversation, really listening, building relationships and helping identify opportunities.

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My focus now is on giving back. When I was a senior in high school, I had no one to help me navigate the college process. It was a fluke that I ended up at an accredited school with the opportunity to interview in public accounting. The profession has opened so many doors and created a spectrum of opportunities. I am passionate about finding those kids that work hard, getting them to understand their potential and creating new runways of growth and possibilities.

Marlene Devotto – EY Principal, Financial Services Advisory I enjoy helping our clients solve business issues, teaming together for a successful outcome.

What I most like is the entrepreneurial nature of my work. I have been doing advisory work at EY for more than 17 years. I have been able to work in different countries, build businesses and come up with solutions that required innovative thinking given the dynamic nature of the financial services market. One of the reasons I came to the U.S. from Argentina was to be able to explore a diverse culture that requires you to be intellectually curious and to challenge yourself every day.

When I arrived in New York from Argentina with plans to work in financial services, it was quite a change – a new country, a new culture and a new business to learn. I wanted to create tools and communities for other Latinos who follow my same path. So, we created the Advanced Latino Network with other Latino colleagues, dedicated to supporting the career advancement of our EY Latino professionals as well as supporting our external Latino community through new educational and professional programs that I am very passionate about.

Paul Estrada – EY Principal, Financial Services I learned about innovation and entrep r eneur ship from my mother. As the eldest of three, I have a strong recollection of how my mother (a sole parent) overcame our significant economic challenges. Whether it was cleaning houses, baking cakes, selling food, or buying and selling goods, my mother always held at least three side jobs in addition to her 9-to-5 one.

When I joined the military at 17, it was mostly out of patriotism since my uncles are all Marines and Vietnam Veterans, but it was also out of necessity to help my family. My mother passed 15 years ago, but not before seeing me work at Goldman Sachs, graduate from USC Law School, and join EY. Her legacy continues to guide me and I’ve had the opportunity to apply her principles in building several successful businesses at EY. I have always said that I stand on my mother’s shoulders, and that is why it is important for me to continue her legacy and help Latinos, women and anyone else deserving of an opportunity.

Having served in the 82nd Airborne Division for 5 years, I had many intense and perilous experiences which bonded me to those with whom I served. After leaving the military to attend college, I lost my former roommate and then my best friend from the 82nd. I honor them and all other veterans by continuing to serve for life. At EY, I’ve had the honor to co-lead our Veterans Network nationally. I am also a board member of the Bob Hope USO. I am passionate about helping veterans and anyone else serving our great nation.

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DIVERSITY & INCLUSION

Empowering People An Interview with Rahnold “Rah” Thomas, Managing Director, Accenture EDITORS’ NOTE With over 15 How does Accenture engage its years’ experience in digital transpeople in its diversity efforts? formation and cloud optimizaThe engagement factor is critition, Rahnold “Rah” Thomas is an cal. Our top leadership, including Accenture Technology managing Ellyn Shook, our Chief Leadership and director, based in the company’s Human Resources Officer, is personNew York City office. In addition to ally committed to this – which makes a his work delivering for clients, he significant difference. For example, our also serves as the North America diverleaders have been extremely purposesity lead for Accenture Technology, ful in engaging our more junior people as well as the national co-lead for to be involved in our diversity initiathe company’s African American tives. Through our Employee Resource Rahnold “Rah” Thomas Employee Resource Group. He spoke Groups (ERGs) we have regular sumabout inclusion and diversity at mits where we discuss feedback and Women of Silicon Valley 2019, was the featured aim to empower our young talent to dream up speaker for Black Entertainment’s Black Men and build innovative programs. One of our local XCEL Conference, and hosted Accenture’s 2019 ERGs recently started a podcast where they talk Celebration of MLK Day at the historic Apollo about Accenture’s culture, upcoming events and Theater. Thomas has a bachelor’s degree in things people might be struggling with. It has information management and technology from been extremely popular and our goal is to figSyracuse University. ure out how to take something like this national.

My view is that we need to be leveraging these COMPANY BRIEF Accenture (accenture.com) mediums of communication more frequently as is a leading global professional services com- a means for the next generation to more easily pany providing a broad range of services and find and use their voices. In other words, leversolutions in strategy, consulting, digital, tech- aging innovative tools that empower our young nology and operations. Combining unmatched people to talk freely and transparently to leaderexperience and specialized skills across more ship about how to solve problems. than 40 industries and all business functions – A powerful, unconventional example of underpinned by the world’s largest delivery net- engaging our people around diversity, inclusion work – Accenture works at the intersection of and equality, is what we did to celebrate MLK business and technology to help clients improve day in the U.S. this year. At the historic Apollo their per formance and create sustainable Theater in NYC, we opened a dialogue on culture value for their stakeholders. With 477,000 peo- as opposed to opening a dialogue on diversity ple serving clients in more than 120 countries, in corporate America. For a morning, we took Accenture drives innovation to improve the way over a black-owned venue in Harlem on MLK the world works and lives.

Boulevard and brought one of the top conscious hip-hop artists to have a “song-versation” with Will you discuss Accenture’s focus on us, touching on very specific topics. At the crux diversity? of the black community is the church, so we celWe’re really focused on building what we ebrated some of the religious aspects, as well call a “culture of equality” where our people as the music, the culture and the Apollo itself. can be who they are and be their best, both But what was astonishing, and especially powprofessionally and personally. We are con- erful, is that we didn’t recognize MLK day as a sistently applauded for our efforts around black holiday specifically – we had everyone transparency as it relates to publishing our represented: Black, Latino, LGBTQ, Interfaith, workforce demographics, which is a great among others. We tried to bring as many peofirst step regarding accountability at the top ple together in the spirit of inclusion. Dr. Martin and throughout our organization. But from my Luther King Jr. fought for equality and human perspective, we truly lead because we have rights, not solely black rights. I am proud that we consistent dialogue about what we need to recognized that as a company and acted on it. do to evolve and progress in the right direction.

How broadly do you define diversity at I believe what sets us apart is the empowerment Accenture and what is the impact of having of our people. a diverse workforce on business outcomes?

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To me, diversity is the fundamental recognition that you must strive to understand people who aren’t like you. Companies can have ERGs and other initiatives in place, but it is really individuals being able to accept someone who doesn’t look, act, talk or contribute to society the way they do. At Accenture, we are keenly aware that while more diverse teams are higher performing, you really need to have a supportive culture in place and, by doing so, you’re empowering people. We are looking beyond diversity to focus on equality, belonging and providing a workplace culture that empowers people. We know that people are more productive when they are happy and fulfilled and they are around others who inspire them.

However, it is not enough to simply focus on diversity. Diversity is key, but you must have the culture to support it. Our 2019 Getting to Equal research revealed that a culture of equality – where everyone has the opportunity to advance and thrive – unlocks innovation. More specifically, we uncovered that while diversity factors alone, such as a diverse leadership team and a gender-balanced workforce, significantly impact innovation mindset, a workplace culture of equality is the essential multiplier to help companies maximize innovation. Our research found that the innovation mindset of employees is 11 times greater when diversity is combined with a workplace culture of equality.

How has your personal story shaped your deep interest and advocacy for diversity in business?

Growing up in public housing with a single mother of four children grounded me to understand that there are multiple spectrums of reality and that you can find the good in any situation. This experience has proven to be one of my core strengths in business – I have a talent for being able to find the good qualities in people and how to strengthen those qualities through support, empowerment and technologies. At the beginning of my corporate career, I felt constricted. But I have been very fortunate to have a support system in leaders like Ellyn and our North America CEO, Julie Sweet, who empowered me to realize that what I believed to be my deficiencies, are actually my strongest qualities. I’ve been able to take those things that held me down and leverage them to make me the leader I’ve become today.

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DIVERSITY & INCLUSION

“You Belong” An Interview with Wanda Bryant Hope, Chief Diversity and Inclusion Officer, Johnson & Johnson EDITORS’ NOTE Wanda Hope is Our first step was to create a situaresponsible for globally advancing tion assessment, so we connected with J&J’s diversity and inclusion strategy, more than 7,000 J&J employees around strengthening D&I capabilities, improvthe world to ask them their thoughts on ing reputation, and driving innovation both diversity and inclusion. We also did and growth for future success. Prior to a pretty big external scan to figure out her current role, she served as the what was working and driving success Vice President of Global Performance in some other organizations. & Development, Vice President of From those, we found that while Commercial Analytics, Development diversity may look different depending & Operations, Vice President of Sales & upon what country you are in, everyMarketing, Surgery and Chronic Care body wanted to feel like they belonged.

Wanda Bryant Hope Franchises, National Sales Director, Everybody wanted to feel like they had and Global Marketing Leader. She a voice and that they were being heard. was recently recognized by Black Enterprise as one We then built a whole new strategy anchored of the Most Powerful Women in Diversity and has on inclusion because we know that by focusing on received several awards including the Healthcare inclusion, we can engage every single employee at Businesswomen’s Association’s Rising Star Award, J&J across the globe in this conversation. the YWCA Tribute to Women in Industry Award, We have redefined D&I within J&J as a part and the National Sales Network Community Service of that effort, and our new definition is “You award. Hope received her B.S. in marketing from The belong.” Diversity at Johnson & Johnson is about Pennsylvania State University. your unique perspective. It is about you, your colleagues, and the world we care for. It involves COMPANY BRIEF Johnson & Johnson (jnj.com), all backgrounds, beliefs and the entire range of together with its subsidiaries, researches and devel- human experience coming together. Inclusion at ops, manufactures, and sells various products in the J&J is about creating a deep sense of belonging, healthcare field worldwide through three divisions: where you are valued, your ideas are heard, and Consumer, Pharmaceutical and Medical Devices. you advance this culture for everyone.

The company markets its products to the genThis helps our people understand the eral public, retail outlets and distributors, as well responsibility that we each have in driving a as distributes directly to wholesalers, hospitals, and more inclusive culture and what that does for healthcare professionals for prescription use. us as an organization as well as for the patients, Johnson & Johnson was incorporated in 1887 and the consumers and the customers that we serve is based in New Brunswick, New Jersey. around the world.

How does D&I fit into J&J’s talent proHow does Johnson & Johnson address diver- cesses and business strategies? sity and inclusion?

As we looked at integrating D&I into our talAt J&J, diversity and inclusion have always ent processes, we found that there is unconscious been a part of who we are and are embedded bias built into systems and processes that we in our company’s Credo. When J&J was founded needed to mitigate. So we have actually started more than 130 years ago, more than half of our first using artificial intelligence to help us tease out 15 employees were women, which was unheard of phrases and words from our job descriptions that at that point in time. So having diverse representa- we know are inherently biased against women. We tion has always been a part of who we are. have developed training on how unconscious bias When I stepped into the role, we took a step may impact our thinking and our decision-making back and decided that we needed to think about during the interview process. We have also embedD&I differently. Our heads and our hearts were ded more inclusive concepts into the way that we absolutely in the right place and it was embedded manage performance and development throughout into our culture, but we weren’t thinking about it the year. as holistically as we could. We felt we needed to There are other ways to incorporate D&I into treat D&I the same way we would any business other parts of our business. For instance, we have challenge or any business opportunity and build a embedded multicultural marketing into many of strategic plan that we could align and incorporate our brands to ensure that we are connecting with across all of J&J’s businesses. an audience in a way that resonates with them.

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Having D&I as a business imperative is so critical. If we can educate our organization on the overall value and the importance of it and people really understand that, it starts to shift the way everyone thinks about D&I and starts to shift processes, systems and the way we operate on a day-to-day basis.

Is this more difficult to do given the size and global footprint of J&J? J&J is a massive, global organization with about 140,000 employees in 80 or so different countries. Our D&I team only has 15 people, which makes it difficult to engage each of those employees, so the first thing that we needed to do was to engage our leaders.

The impact that D&I has on our culture, on engagement and on innovation, is not owned only by the office of D&I. It belongs to every employee across J&J. We felt it was critically important that we engaged our leaders around the world in owning and executing our D&I strategy.

We started at the top, with our CEO, Alex Gorsky, and our executive committee. Alex, our Chief Human Resources Officer, Peter Fasolo and, quite frankly, our entire executive committee, are a team of leaders that truly believe in diversity and inclusion. They understand the value of what this brings internally and externally for J&J. So when we shared the strategy with them and explained what we were asking them to do as leaders to help us drive this, everyone was immediately onboard.

We then enlisted leaders around the world to help us gather data and develop insights. We split the world into four different regions – North America; Asia-Pacific; Europe, Middle East, and Africa; and Latin America. We created a diversity and inclusion advisory board of individuals at very high levels and co-created strategies with them so they would share ownership of these strategies.

This meant we had a group of D&I ambassadors that was able to help us deliver these messages to the people that they lead day-to-day.

Finally, we actually created a launch around our new definition and way of thinking about diversity and inclusion and reached out to all employees through their leaders. We explained our new vision and talked about what this means for each individual as well as for patients, consumers and customers that we serve around the world.

This enabled everyone to get engaged in this effort and to understand the value and the importance and the individual role that they play, whether they were a people leader or an individual contributor within J&J.

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“Be Yourself, Bring Your Best” An Interview with Smita Pillai, Chief Diversity and Inclusion Officer, Dow Jones EDITORS’ NOTE Smita Pillai is We reached almost 600 people in the responsible for designing and implefirst 100 days through these sessions menting a progressive, global diverWe used the insights to create a simple sity and inclusion strategy, overseeing phrase to frame our D&I efforts: “Be efforts across talent management yourself, bring your best.” That’s it. That practices, leadership accountabilthen translates into talent and culture ity, corporate culture and outreach which are integral parts of our strategy. efforts. Her holistic approach to diverHiring the best and most diverse sity and inclusion seeks to create talent and creating an inclusive envia climate of inclusion and belongronment where diverse perspectives ing where innovation can thrive. can thrive are the first steps towards Prior to joining Dow Jones, Pillai led making any business innovative Smita Pillai global diversity and inclusion efforts and competitive in the marketplace. in Fortune 50 companies where she Diversity is not just a good to do thing, led groundbreaking global diversity and market- it is a business imperative. At Dow Jones, we ing research projects and established clear metrics know that business growth will come if we for D&I measurement and advancement. invest in the right people so we linked talent and culture to business growth. This was the COMPANY BRIEF Dow Jones (dowjones.com) second tenet of our D&I strategy. Finally, we is a global provider of news and business infor- are a company that has been an anchor for truth mation, delivering content to consumers and and facts for the past 130 plus years. People organizations around the world across mul- trust us, and we have a responsibility towards tiple formats, including print, digital, mobile society and we want everything that we do in and live events. Dow Jones has produced qual- diversity and inclusion to have a social impact. ity content for more than 130 years and today So talent and culture, business growth has one of the world’s largest news-gathering and social impact are the key elements of operations globally. It produces leading pub- our global D&I strategy. lications and products including the flagship Do Dow Jones’ efforts to hire the best Wall Street Journal, America’s largest newspa- and brightest ensure a certain level of diverper by paid circulation; Factiva, Barron’s, sity or do you need to expand your reach MarketWatch, Mansion Global, Financial News, when looking for new talent?

Dow Jones Risk & Compliance, Dow Jones Dow Jones is a company that believes in Newswires, and Dow Jones VentureSource. true meritocracy. We want the best talent across the globe to be with us. However, the reality is Will you provide an overview of Dow also that social privilege and unconscious bias Jones’ diversity and inclusion strategy and exist. It would be a fallacy to believe that the initiatives? best will automatically show up on our radar.

Dow Jones hired me to be its inaugural Chief We are continuously looking to expand our Diversity & Inclusion Officer and the hiring request reach – from eliminating bias in our job descripcame directly from the CEO, William Lewis. He tions using AI, to diversifying our recruiting wanted someone who could take the pulse of the sources and putting specific metrics in place for market and connect diversity back to business. diversity of slates for critical positions.

It’s been a year for us in this journey and I How do you measure inclusion? can confidently say that although we were late to Inclusion is a hard concept to measure, start, we are leapfrogging ahead in terms of our but it’s not impossible. At the very human approach and vision for diversity and inclusion level, we will continue to stay connected with globally. When I came in, I didn’t have to pitch our employees leveraging various efforts like diversity to anyone, what we did do is set the stage the employee groups, executive listening sesfor inclusion. We are operating on the philosophy sions, focus groups, etc. At the objective level, that diversity is a fact, inclusion is a choice. we have created an Inclusion Index by which We started our journey by hosting 25 lis- we plan to measure and report employee sentening sessions across 8 global hubs. People timent in each leader’s group. We have picked from all levels of the organization came com- questions which are scientifically chosen to pletely voluntarily into these listening sessions. measure inclusion from three angles: overall 44 LEADERS

company commitment to diversity and inclusion, how the employees feel they are treated, and whether they can be themselves and bring their own unique perspectives.

Ultimately, we believe that when our employees can feel free to reach out across functional silos, collaborate willingly and take risks without fear and with full trust, we will be well on our path to be a truly inclusive company.

Do you utilize employee resource groups to foster inclusion at Dow Jones?

We do, but with a twist. Years of my own experience and best in class research has shown that affinity groups often end up siloing people rather than celebrating intersectionalities of diversity. At Dow Jones, we decided that we shouldn’t be creating exclusive employee groups, we should be creating inclusive employee groups. In fact, we don’t call them employee groups or business groups or affinity groups – we call them IRGs: Inclusive Resource Groups. So, for example, our African American/Black employee group BlackInsight@DJ welcomes people of all backgrounds and celebrates intersectionalities of race, gender, sexual orientation, disabilities, veteran status and others.

The idea is that we can all learn from each other in a mutually inclusive environment.

We now have eight inclusive resource groups and each group is linked with a sponsor who is a direct report of the CEO which inspires connections across all levels of the organization. In a dynamic world, our goal is to leverage cultural awareness for leadership accountability.

In your role, how critical is it to have C-Suite support and engagement?

It is absolutely critical. If D&I leaders are kept separate from the business growth strategy, they cannot articulate why it is important for the business. As CDOs, our roles must be leveraged by the business leaders to open new doors with customers, clients and suppliers. It is critical for the C-Suite to understand D&I as a part of the overall business growth strategy. It helps brings the whole philosophy of diversity, equity and inclusion to life. Having said that, I believe CDOs play a very central and visionary role. They are central to the overarching D&I strategy, providing subject matter expertise and, at many times, being the connector and agitator. At the end of the day, D&I should not be limited to getting “people of color” in the seats, it should be about continuously engaging the company’s C-Suite for business growth and for the broader societal impact.

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DIVERSITY & INCLUSION

People, Market and Society An Interview with Randall Tucker, Chief Inclusion Officer, Mastercard EDITOR’S NOTE Randall Tucker is We understand that the levers of responsible for aligning the company’s inclusion and diversity are broad. They global diversity and inclusion initianeed to be addressed as they pertain to tives with its corporate business stratthe three pillars of people, market and egy to ensure that every employee has society. From a people perspective, we the opportunity to reach their greatest need to address how we attract and potential. Before joining Mastercard, retain the best and brightest talent and get Tucker served as the Senior Director the most out of them. They need to feel of Inclusion and Diversity at Darden that they are valued and respected and Restaurants after having led the like we have created a place for them. transformation of Starwood Hotels & From the marketplace perspective, we Resorts Worldwide’s diversity and need to make sure we address our Randall Tucker inclusion strategy from a U.S.-focused entire customer base and universe of model to a global model. Earlier in end users and ensure we are not misshis career, he served in various sales and human ing any of them. From the societal perspective, resource roles at Marriott International. Tucker we need to create an environment where we are holds a B.A from James Madison University and good citizens in all the parts of the world in which is an Advisory Board Member at James Madison we operate and that our brand image is one that University Hart School of Hospitality, Sport is positive within the eyes of the world. and Recreation Management. He has been a guest lecturer at Georgetown University’s School of Continuing Studies and is a Six Sigma Black Belt.

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.

We need to look

Will you discuss the role of the Chief Inclusion Officer and how the role has evolved?

I’ve been doing this work for about 20 years and not only have I seen the role of an inclusion leader evolve, but I’ve had to evolve my thinking around the work. There’s a common misperception that the role of an inclusion officer is all about attending networking dinners, giving out sponsorships, filling out surveys and things like that. While that’s part of it, my role is to make inclusion and diversity relevant within Mastercard on a regional and global scale.

Given the dynamic and changing 21st century workplace, diversity is an issue that not only influences our ideas of fairness and opportunity, but one that impacts performance and innovation. By bringing relevance to work, we are one step closer to achieving our goals and objectives.

Is the impact of building a diverse and inclusive workforce well understood and are there metrics to show the impact?

missing at the table.

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instead at what perspectives are

We have developed metrics behind our global inclusion and diversity strategy that include regional customization which is not used that often within other organizations. We work with our leadership teams in each part of the world to figure out what is important to them in forwarding their business strategy from an inclusion perspective. We then figure out what metrics they’re going to use in order to show progress against whatever they’re looking for. In the end, we all agree that we need diverse perspectives at the table in order to make the best decisions and increase the innovation and diverse thinking and problemsolving skills around the leadership table.

Our regional inclusion action plans focus on two big pillars. The first is inclusion, education and awareness. The other is ensuring everyone can reach their greatest opportunity within the organization. With inclusion, education and awareness, if we are trying to build inclusive leaders, we need to make sure that they have the tools in order to be inclusive. Reaching their greatest opportunity will look different in different places around the world.

Does hiring the best and brightest talent ensure a level of diversity in the company or does it require more of a focused effort in the hiring process?

We all view things through the lens of our own experiences and, in organizations, people gravitate to people that look like them and sometimes automatically assume that this means they are the best and brightest talent. However, we need to look instead at what perspectives are missing at the table. We have to fill in those perspectives by tapping a diverse pool of the best and brightest talent and creating a sense of belonging within the organization that leads everyone to feel that they can reach senior levels and expand their careers in the way that they want to.

When the opportunity presented itself to join Mastercard, did you know that it would be the right fit and has the experience been what you expected?

It has exceeded my expectations. I knew Mastercard was a great company but I didn’t know the culture behind it. It is such an amazing group of smart people and has a culture that inculcates decency, sustainability, inclusion and diversity, and treating each other the right way. That is very similar to the hospitality industry where your customer is at the center of your efforts. I’m excited to be within an organization that, first, is an industry leader and, second, really cares about its people and feels a responsibility to provide a positive social impact in every part of the world in which it operates.

Are you able to take moments to celebrate the wins with your diversity efforts or is it always about what is next?

My personality is type A, so I’m always thinking about what’s next and it is a challenge for me to celebrate the wins. I really enjoy creating and building and charting new paths. We do need to take the time to take a holistic look at the company and recognize what great things we have been doing – it gives us the opportunity to elevate the discussion, dialogue and strategy around our inclusion and diversity efforts.

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An Inclusive Culture An Interview with Dr. Terri Cooper, Chief Inclusion Officer, Deloitte EDITORS’ NOTE Terri Cooper To be highly successful in the has mor e than two decades of business environment, we also experience working in various know that we have to be inclusive capacities of the life sciences and from a cognitive perspective as healthcar e industry, including well. We need to bring together the participating in a broad range best ideation, the best thoughtware of strategic advisory services. She and the best experiences in order has created new global operating to deliver the best solutions for our models; supported the integration clients, and to also challenge their of development, regulatory, and thinking. drug safety functions in a numHow do diversity and incluber of life sciences company mergsion relate to each other?

Terri Cooper ers; restructured all aspects of the They certainly go together. research and development value However, you can establish diverchain; and driven increased cost and effi- sity without it necessarily meaning that you ciency measures. Cooper holds a joint honors have an inclusive culture. We can create a bachelor of science degree in chemistry and diverse workforce by inviting everyone to pharmacology and a Ph.D. in pharmacology the party, but if you are going to be truly from the University of London, U.K. inclusive, it means that everybody has to be invited to dance. This means everybody has a F I R M B R I E F D e l o i t t e ( d e l o i t t e . c o m ) voice and everybody feels that they can conp r o vides industry-leading audit, consult- tribute. You embrace similarities and differing, tax and advisory services to many of the ences, and everyone feels comfortable being world’s most admired brands, including 80 their authentic self. In my mind, you need to percent of the Fortune 500. It works across have diversity in order to create that inclusive more than 20 industry sectors to deliver mea- environment. surable and lasting results that help reinforce How does diversity impact Deloitte’s public trust in capital markets, inspire cli- hiring practices? ents to make their most challenging busiWhen we are recruiting, it’s important ness decisions with confidence, and help lead that we focus on the best talent, but we the way toward a stronger economy and a want to make sure that it is the best diverse healthy society. talent.

If we focus only on one dimension, How do you define the role of a chief it impairs our ability to bring in that coginclusion officer? nitive component, which really leads to a It is a unique role from the perspec- unique perspective across the board. This tive that it is designed to help to ensure means it is very, very important for us to that every professional, including all of focus on recruiting a truly diverse group of our leaders, are confident that we are truly professionals. fostering an inclusive culture where everyAs I mentioned before, diversity goes body feels that they’re connected and that beyond just the standard elements of gender, they can be their authentic selves. In my ethnicity or sexual orientation. It requires mind, both of those are important to cul- that we open up our aperture and make tivating an environment in which people sure that we have diversity of experience, can grow. of skillsets, of socioeconomic backgrounds This means that I need to carefully and of types of education. That aperture has think about how we foster that truly inclu- broadened, but it is certainly critical to take sive environment. We know that individu- advantage of the broader view and continue als today want to work within an inclusive to build a truly diverse talent pool. culture. They want to feel as though they Based on this view, we recently began are included, not only from a demographic to work on bringing individuals on the perspective, but also when it comes to their autism spectrum into our workforce. This is sexual orientation, their ethnicity, and other another example of our commitment to be personal characteristics. truly diverse and inclusive.

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What is the impact of diverse thought and an inclusive cultur e on business outcomes?

One of my Australian colleagues has published a piece called “The Diversity Inclusion Revolution: The Eight Powerful Truths.” The research that she has undertaken has clearly demonstrated that a truly inclusive environment makes a company twice as likely to meet or exceed its financial targets. It’s three times more likely to be high-performing. It’s six times more likely to be innovative and agile, and eight times more likely to achieve better business outcomes.

Not only does diverse thinking enhance innovation by up to 20 percent, but it will actually reduce risk by approximately 30 percent. We know that having diverse perspectives at the table challenges thinking and augments business outcomes, but it’s just as important to take risk out as well. The data is pretty compelling in that regard.

Is the right dialogue taking place regarding the advancement of women in business and what do you tell young women about the opportunities that exist at Deloitte?

I think the dialogue has definitely changed to include an awareness of any sort of unconscious bias. Although women may have similar skills and experiences, when it actually comes to the final decision, we want to be aware that bias doesn’t play a role.

At Deloitte, we are really focused on leadership traits and what it means to be an inclusive leader. We expect all of our leaders to be committed to inclusion and to creating a collaborative environment for everyone. They need to be culturally intelligent and curious about everybody’s background, while being courageous and calling out behaviors that are not appropriate.

Young women today will find the dialogue is a lot richer. The recognition of the importance of fostering an inclusive environment where everybody can thrive is really changing. This means the environment for individuals to grow has changed dramatically as well. I’m very proud of our accomplishments and how we really are continuing to increase that representation of women at the most senior levels. Women coming into Deloitte can certainly see this and we continue to build on that momentum.

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DIVERSITY & INCLUSION

The Power of Individuality An Interview with Jaleh Bradea, Chief Diversity and Inclusion Officer, Vivendi SA EDITORS’ NOTE Jaleh Bradea has served as a TV producer on major French TV channels with a focus on women-related content and as director of the audiovisual department at a successful telecommunication startup. In 2014, she started working on Corporate Social Responsibility (CSR) initiatives at Canal+ Group. Bradea also works with the French media regulator to promote a fair representation of ethnicity, gender, and minority communities in the French media.

in our group. We can now see that, in order to be creative, innovative and able to adapt to the changing expectations of our clients, we have to be diverse.

You mentioned diversity, inclusion, and belonging. How do these three areas relate to each other?

If you take a picture of the world, it represents diversity. But what are you going to do with that diversity?

Jaleh Bradea This becomes inclusion. Belonging is the last step.

I also like to explain it this way: Diversity COMPANY BRIEF Vivendi (vivendi.com/en) is seeing that they are there, inclusion is giving operates as a content media and commu- them a voice, and belonging is when that voice nication company in Europe, the Americas, counts. This is an obvious evolution which is Asia and Africa. It operates through Universal important.

Music Group, Canal+ Group, Havas, Editis, For example, networks naturally develop Gameloft, Vivendi Village, and New Initiatives in companies – LGBTQ networks, women netsegments. Universal Music Group owns and works, disability networks – and they are operates a broad array of businesses engaged important because when people feel they are a in recorded music, music publishing and mer- minority, they want to join with other people in chandising. Canal+ Group publishes and dis- that minority to come together to gain a sense tributes premium and thematic pay-TV and of empowerment. However, that shouldn’t be free-to-air channels, and produces, sells, and dis- the end of the story. The end of the story is tributes movies, TV series and TV shows. Havas the day when all of these people together are Group is one of the largest advertising and going to create a huge network that is actually communications groups in the world. Its busi- our world. I know that it may sound idealistic ness includes communications disciplines, such but in this world every individual should count as creativity, media expertise and healthcare/well- and that is important. ness. Editis is one of France’s largest publishers.

A few years ago, many thought that the Gameloft engages in the creation and publishing social network was signaling the end of the of downloadable video games for mobile phones, human, but it was actually just the beginning. tablets, triple-play boxes and smart TVs. Vivendi There is now an expectation of existing, of Village provides ticketing services, and owns and being me, who I am, with all my differences manages intellectual property rights, live perfor- and specificities. All of us have different stories mances, festival productions and venues. New and this represents our diversity.

Initiatives operates Dailymotion, a video content I like to say that the future of diversity is aggregation and distribution platform and Group individuality. In this very huge global world, Vivendi Africa (GVA) is dedicated to the large- each of us needs to exist as an individual. When scale development of ultra-high-speed Internet you feel good about yourself and are aligned access in Africa. The company was founded in with what you are, you are more productive.

1853 and is headquartered in Paris.

You are happy to go to work because you are heard, and this represents belonging.

How is diversity and inclusion viewed at Are metrics important in this type of Vivendi and is it a part of business strategy? work?

Because of the McKinsey study and othI think metrics are crucial because if you ers, there is now data that proves that diversity, don’t measure things, they do not really exist. inclusion and belonging result in better perfor- It may be a challenge for the moment to figure mance at every business. This has led to a con- out the right and most relevant metrics because viction today that D&I is business-driven, and inclusion and belonging are new subjects, but it confirms that we are right to lead it that way we will find them. There is a way to measure it.

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With so many companies under the Vivendi umbrella, is it important to have a consistent, seamless D&I program or is it customized based on the different brand cultures and businesses?

I think it’s both. All these companies exist without Vivendi itself. They have their own successful businesses. They have their own HR and, sometimes, even their own CSR. However, we have common initiatives led by Vivendi such as a CSR Committee. More recently, we created a Diversity Committee where we share the best practices in D&I from all the companies and decide on common goals when relevant.

Having a clear vision of where we all want to go together is important. This is especially true when the brands are located in different countries and running different businesses. It is important to give them a common objective to share and to build together.

Even with all the focus on gender parity, it seems that the C-Suite and boards are still male dominated. What can be done to bridge this gap?

In France, in big companies, supervisory or executive boards are required to have 40 percent women, which is a good thing. Up until a few years ago, I was not in favor of quotas because I thought that since women are as talented as men, why should we have to have quotas? However, quotas are good for pushing things in the right direction until they become natural. For the moment, I don’t think we can say it’s natural so being pushy is important. I wish it wasn’t, but it is.

Are you able to enjoy the process and take moments to celebrate the wins or are you always thinking about what’s next?

When you are 50, as will be my case in a few months, you have to pause because you suddenly realize that you have already lived more than half of your life. Perhaps there is a wisdom that comes with age that tells you not to only think about the future, but to also be conscious that your life is happening right now.

This also points to the importance of having more experienced people working in our companies. They can bring that sort of wisdom to the younger people who have the energy and the conviction that everything is possible. We need the balance of both of them to face all the new challenges of this changing world. This is also part of the power of diversity and individuality.

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DIVERSITY & INCLUSION

A Legacy of Excellence An Interview with Gary C. Butts, M.D., Chief Diversity and Inclusion Officer, Mount Sinai Health System EDITORS’ NOTE Gary Butts is also Luke’s, Mount Sinai West, New York Eye Dean for Diversity Programs, Policy and Ear Infirmary of Mount Sinai, and and Community Affairs for the Icahn South Nassau Communities Hospital – School of Medicine at Mount Sinai. In have a vast geographic footprint throughhis role, he is responsible for oversight, out the New York City area. Mount Sinai management and integration of all Health System hospitals receive roughly aspects of diversity programs and poli4 million patient visits annually, includcies, and to ensure diversity and incluing inpatients, outpatients and the emersion as an integral core institutional gency department. value and resource across the Mount Sinai Health System, including the How do you define the role of the medical and graduate schools, graduchief diversity and inclusion officer?

Gary C. Butts ate medical education and the Mount The primary role of the chief diverSinai Hospitals Group. Butts holds sity officer is to help set the tone and then joint appointments as Professor with Tenure in the serve as an enabler to advance diversity and incluDepartments of Pediatrics, Medical Education, and sion across the entity that they have been given Environmental Medicine / Public Health and has responsibility for. This clearly requires having the been an integral member of the senior leadership buy-in and consistent support of executive leaderteam at Icahn School of Medicine at Mount Sinai ship in order to establish strategic priorities that can since 1998. He has spent over three decades provid- be addressed in practical ways. ing healthcare services to East and Central Harlem Is it challenging to find diverse talent for residents and the past 20 years developing and the health system? spearheading efforts to improve and sustain racial, My position is that not only can you be excelethnic and gender diversity across all levels of edu- lent and diverse, but to be your best you have to cation, training and faculty for the Icahn School of draw the best from diverse pools of talent, and Medicine. Since 2004, he has directed the Center those do exist. for Multicultural and Community Affairs (CMCA), We are a great institution. To be our best we which has been recognized as a Health Resources have to draw on the diversity available to us. It may and Services Administration (HRSA) Center of sometimes be challenging to find the diverse talent Excellence for Minority Health. Under his leader- that we are looking for in our professional tracks ship, the medical school’s student body has become because the pools aren’t always broad enough. one of the most diverse among U.S. private medical This means we need to shake more trees and difschools and Mount Sinai has doubled the percent of ferent trees to identify that talent. black and Latino faculty and house staff. He has been Do the cost of medical schools and the recognized by The Network Journal among the debt that students incur impact the ability to Top Black Doctors in the New York Metro Area and build those diverse talent pools? honored by the National Association of Minority Yes, and it is important to address the issue Medical Educators with their Distinguished Service of medical school costs and debt in every way at to Health Award and by the National Hispanic all levels, but you can’t limit this to medical school Health Foundation for leadership in improving the tuition. Colleges and elite high schools have also health of Hispanic communities. Butts has received become unaffordable for many. This is a bigger Lifetime Achievement awards from the National issue than medical school debt and demands a Medical Fellowships and the Mount Sinai Faculty careful review and new solutions. I was surprised Council, and in 2015 received the Abraham Jacobi to learn that regulatory or legislative changes that Medallion, the highest honor bestowed by Mount have occurred over the past years have led to colSinai for its distinguished faculty and alums. lege and graduate students accruing interest immediately when they take out loans. That was not the INSTITUTION BRIEF Mount Sinai Health System case when I was in college or in medical school. (mountsinai.org) encompasses the Icahn School One of my medical student mentees who is graduof Medicine at Mount Sinai and eight hospitals, as ating this year will owe about $150,000, which is well as a large and expanding ambulatory care significantly less than the national average of medinetwork. The eight hospitals – Mount Sinai Beth cal school debt. But when he’s finished paying it Israel, Mount Sinai Brooklyn, The Mount Sinai off, with the interest, he will have paid almost twice Hospital, Mount Sinai Queens, Mount Sinai St. what he borrowed.

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This is outrageous and unfortunately not a unique situation and is one that disproportionately impacts students of color and those from immigrant communities. This needs to be addressed at all levels and needs to be addressed as part of a larger set of issues in higher education. That said, schools like Mount Sinai that have taken some very tangible steps for debt relief can set an important example for others to follow. It is possible to be creative and bold like we’ve been in so many ways here at Mount Sinai in addressing issues like this, demonstrating that this is an issue that can be practically addressed.

How critical is it for Mount Sinai to be able to provide quality care to diverse populations?

Mount Sinai is rooted in a legacy of excellence – excellence in care, in education and research, in medical education and, more recently, in diversity.

The groups that have more difficulty in accessing care have shifted over time. Nearly 160 years ago, when The Mount Sinai Hospital was established, they were the immigrant Jewish communities who had limited options for healthcare. Over the course of time, the demographics have changed to where black, Latinx, Asian and new immigrant populations, such as those that surround East Harlem, have now become very important communities for us to address and ensure that they can access the excellent care that we have available through Mount Sinai.

While challenging, we all gain when our communities are healthy and optimally engaged in healthcare.

There are many things that can get in the way that we must better understand and then address with better solutions for diverse communities. For example, we are not responsible for ensuring that everyone has health insurance. This is a significant issue that may be best addressed on State and Federal levels. Unfortunately, at institutions like Mount Sinai, and frankly at all healthcare institutions, insurance does matter. There is only so much that we can do when we can’t pay the costs of taking care of individuals, including those who have more need.

That said, we are actively engaged in a process to better understand differences in the ways in which our diverse patient populations access our services to determine how we might be more responsive. It’s not only about equal access; it’s also about equitable access. Some individuals need more than others, often based on a variety of socioeconomic and structural circumstances. As we get better at understanding an individual patient’s precise needs, we can adapt the ways in which we access, engage and manage patients in the context of their communities and risk factors, and respond in much more precise ways.

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DIVERSITY & INCLUSION

Beauty For All An Interview with Angela Guy, Senior Vice President, Diversity and Inclusion, L’Oréal USA EDITORS’ NOTE Angela Guy is a looked at from a consumer, marketing, member of the L’Oréal USA Executive business and community perspective. and Benefits Committees and collaboThe focus solely on diversity has rates to align L’Oréal’s global diversity moved toward an emphasis on incluefforts. Prior to this appointment, Guy sion and even further to belonging. was Senior Vice President, General Will you discuss this evolution?

Manager of SoftSheen-Carson, the #1 The evolution of diversity to incluethnic haircare brand in the world, sion to belonging is a natural one. Much which is part of the consumer products of the diversity conversation was initially division of L’Oréal USA. In this role, Guy about race and gender. Then it became oversaw all aspects of the SoftSheenabout sexual orientation, disability, and Carson brand in the U.S., Canada veterans. At L’Oréal, we are inclusive Angela Guy and the Caribbean. Previously, she of introverts in an extroverted kind of worked for 19 years at Johnson & environment and caregiving as other Johnson throughout the U.S. and Canada, for dimensions of diversity. So I believe the evolution three years in sales with Levi Strauss & Company is natural if you have a business that’s focused on Accessories Division and for three years in retail inspiring everyone to feel like their voice matters. management with Hills Department Stores. She sits on the boards of several organizations and has often been recognized for her leadership by these organizations. Guy received her B.A. in psychology from Pennsylvania State University and completed Executive Leadership Development Programs at UCLA, Kellogg and Harvard Kennedy School.

The evolution of

COMPANY BRIEF L’Oréal S.A. (loreal.com), is the world’s leading cosmetics company with the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It provides access to products that enhance well-being, while mobilizing its innovative strength to preserve the beauty of the planet and support local communities. L’Oréal was founded in 1909 and is headquartered in Clichy, France.

How do you define the role of a diversity and inclusion leader?

I probably define the role of a diversity and inclusion professional differently than others because I did not come from an HR background. I came from the business side. Frédéric Rozé, President and CEO of L’Oréal USA and Americas, had the vision to shift the approach that we were taking around inclusion and specifically wanted to have a business leader lead the function, not just internally, but also to represent L’Oréal USA as a business externally.

I think that this approach creates a whole new environment in which companies can ensure that they really are a great place to work for all of their employees and also exhibit social responsibility by reaching out beyond the talent. It allows us to look at these efforts through a different lens that broadens our view of diversity. Inclusion should be expanded beyond the status quo and should be VOLUME 42, NUMBER 3

diversity to inclusion to belonging is a natural one.

Since we are in the beauty industry and the L’Oréal corporate mission is beauty for all, we take this very seriously. The more we know about an individual, the better we are at inspiring their beauty. The more we know about the employee, the better we are at aligning their career aspirations to the business needs that we may have. Visible diversity matters and so do the unique attributes that make our employees who they are and what attracted us to them from the beginning – their differences, what they bring to the table, their ability to add value, and their expertise.

Is it important to build metrics to track the impact of L’Oréal’s diversity and inclusion initiatives?

It is important to find a way to measure whether our culture is inclusive and consumers feel like our message is one that resonates with them.

We conduct employee surveys and we measure consumer engagement. The key is to take action on the insights that we receive from both with the same passion and urgency.

Does L’Oréal have employee resource groups as part of this effort?

We have employee-led resource teams but we don’t call them employee resource groups. We call them think tanks because they are intentional.

Where we saw that we had some opportunities to have better representation, we asked employees who had an interest in the topic to weigh in. Each one of the think tanks grew from there.

Our CEO took the initiative to say, “We need gender balance that includes more women at the top, and we also need to make sure we have a pipeline of men who can give us that equity over the years to come.” So we created a think tank called L’Oréal for Women. In the U.S., we asked our executive women to come together in a roundtable and talk about their experiences and where they felt we had gaps in leadership development. We then partnered with the Harvard Kennedy School and created a women’s leadership program. We have sent about 100 women to Harvard to work on skill development over the course of two years.

We took insights from the Men@L’Oréal Think Tank on how to better market L’Oréal as a company to be more inclusive of men. They shared that the the way we were communicating open jobs came with a level of bias in some of the words that we used to describe the work, so we made some changes. We have taken similar approaches to engage Think Tanks to drive a sense of belonging with veterans, the LGBTQ community, women of color, and people with disabilities.

How critical has it been to have such deep engagement from the top of the organization for this work?

Having senior leadership support really makes a difference. I know this because I talk to colleagues all the time who don’t necessarily have that, and their struggle is harder. Frédéric Rozé has been very vocal about these efforts. He joined a group in the U.S. called CEO Action for Diversity & Inclusion. They now have more than 600 U.S. CEOs of companies and institutions who have come together to say, “We have a responsibility to create an inclusive marketplace, and we can leverage the successes and the challenges as CEOs to impact the way our society operates.”

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PwC’s Purpose An Interview with Elena Richards, Minority Initiatives and Talent Management Leader, Office of Diversity, PwC EDITORS’ NOTE Elena Richards the w o r k pl a c e , a r e a l l i n t e r c o n is responsible for PwC’s multiculnected. Therefore, we strive to cretural initiatives designed to retain, ate a true place where people can develop and advance diverse probring who they are and what they fessionals. Since joining PwC in are dealing with in and outside of 1999, she has served in a variety of work – it shapes who we are both human resources roles and led the personally and professionally. firm’s Vanguard program, a yearHow does PwC engage its long leadership development proemployees in its diversity efforts? gram for the firm’s Black/African Our leaders constantly encourAmerican new hires. She is also age and host conversations that focus responsible for leading the efforts on topics that have typically been Elena Richards around unconscious bias educauncomfortable to discuss in the worktion firmwide. Richards is involved place. For example, we held converin various organizations in the industry includ- sations in the summer of 2016 when police ing Society of Human Resource Management shootings of unarmed black men were fol(SHRM), NAAHR (National Association of lowed by the killing of police officers in Dallas.

African Americans in Human Resources), Now that we’re continuing to see shifts in culand the American Institute of Certified Public ture around other important topics, these conAccountants’ (AICPA) National Commission on versations have expanded and staff members Diversity and Inclusion. have been incredibly receptive to them.

We also put a big focus on unconscious FIRM BRIEF The purpose at PwC (pwc.com) bias, blind spots and other broader inclusive is to build trust in society and solve important leadership trainings which are offered to all problems. It is a network of firms in over 140 levels of staff. We all have a role to play in territories with more than 250,000 people who building the environment we want to work are committed to delivering quality in assur- and thrive in. This approach helps ensure ance, advisory and tax services. our people feel comfortable having conversations and bringing their full selves to work How do you define your role at PwC and every day, no matter what’s happening in what are your key areas of focus? the world.

In my role, I focus on efforts that help us In your r ole, how valuable has it develop our talent, but also empower a more been to have such a deep commitment diverse and inclusive workforce at PwC and and engagement from the C-Suite and outside of our walls as well. I also lead our senior management for PwC’s diversity firmwide efforts around unconscious bias edu- initiatives? cation, which is one of the three commitments As mentioned previously, our D&I efforts of CEO Action for Diversity & Inclusion. are a big priority for leadership and Tim Ryan, How ingrained is diversity and inclu- our U.S. Chairman, began engaging staff memsion in PwC’s culture and values? bers on the topic incredibly soon after he The effort starts at the top and is a prior- started in his role, which has been huge. To ity for our leaders, but it’s also reinforced at have the support of senior leaders in putting every level at PwC. From recruiting to training training and formal policies in place has been new employees, as well as our development key, because our people see that it’s important programs for current staff, we are dedicated to at the top and are encouraged to reinforce it on creating an inclusive culture. We’re still on this their own teams and in their offices. However, journey and are constantly reinventing our pol- it takes everyone. Many efforts and changes icies and programs to change with the world have been driven by our staff members. For and ensure our company reflects the lives and example, our inclusion networks and partner values of our employees. council began raising topics of importance to We know that our people can’t park Tim and our senior leaders which then led to their personal lives at the door when they our conversations about respect in the workcome into work. What happens outside of the place. We began hosting conversations in difoffice, how we feel, and how we show up in ferent offices across the country to talk about 50 LEADERS

respect in the workplace, with a focus on sexual harassment, specifically after the #MeToo movement began.

What do you see as the impact of having a diverse and inclusive workforce on driving business results?

The key to supporting our employees starts with understanding that what happens outside of work affects what happens on the job. We can’t expect our employees to come to work and operate at their full potential if they don’t feel comfortable expressing themselves and having trusted conversations with their colleagues, and we can’t deliver our best output as a firm if we don’t invest in our employees.

And business impact goes far beyond performance within our four walls. Diversity and inclusion is a broader societal issue, and that’s the thinking behind CEO Action, which Tim Ryan helped bring to life in 2017. The coalition now includes more than 650 CEOs and creates a space where leaders can share knowledge, provide case studies of what is working, learn from others and open the floor for a societal conversation around D&I so that we can all benefit and drive progress forward in the broader business community.

What advice do you give to young women interested in professional services and do you feel that there are strong opportunities for women at senior levels in the industry?

I absolutely think that there are strong opportunities for women at senior levels in the industry, and we see them every day at PwC. I do believe it’s necessary for young women to see their identity in current leadership and connect to them, and while the industry itself still has progress to make, I would encourage young women to look for companies that are prioritizing these efforts. Also, know that you might not always find an advocate that is the same gender and/or race as you, but that doesn’t mean they won’t be an advocate for you. It is all about surrounding yourself with the right people who can help you be successful, and that won’t be a monolithic group.

Look for companies that support women leaders and have clear programs in place to move forward progress on gender equity, create spaces for underrepresented communities and have leaders who are willing to speak out about uncomfortable topics. But also don’t be afraid to speak up and advocate for yourself.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

An Inclusion Revolution An Interview with Cristina Santos, North America Head of Inclusion & Diversity and Equal Employment Opportunity, Sanofi US EDITORS’ NOTE Cristina Santos is ethnicity as well as veterans’ inclusion a seasoned pharmaceutical indusand other aspects that we make a priortry professional having held varity at Sanofi US. ious positions for the past 18 years.

Does hiring the best and brightShe first joined Sanofi US as Head of est talent ensure a certain level of Multicultural Marketing for Diabetes diversity or do you need to develop and Cardiovascular Disease. Prior to partnerships with different organijoining Sanofi US, Santos worked zations in order to reach a diverse in a number of key commercial candidate population? roles in the areas of Global Oncology The primary goal in talent acquisiCommercial Excellence, U.S. Sales tion is hiring the most qualified indiLeadership, Product Marketing, and viduals for a given role. Sadly, merely Cristina Santos Training and Development. Her passeeking to hire the best and brightest talsion for D&I sprung from years of ent doesn’t always ensure diversity so we devoted energy to global and local council work still need to make a very intentional effort to make and leadership of several employee resource the company and its opportunities known to varigroups. She holds a strong belief that in order to ous diverse communities. Exceptional talent exists achieve significant impact, it is critical to invite the in all communities, but we need to have meaningmajority to the conversation, not just those tradi- ful presence and networks established to be seen tionally underrepresented. as an employer of choice. If we’re not there, they may not think to bring their perspectives and skills COMPANY BRIEF Sanofi US (sanofi.us) is head- to Sanofi US. To improve our diversity outreach, quartered in Bridgewater, New Jersey, and employs we have strategies for reaching populations that more than 12,000 professionals throughout the are historically underrepresented in our industry. For United States. It is comprised of five business units example, we were recently at the Service Academy that focus on human vaccines, rare diseases, mul- Career Conference (SACC) to make an intentional tiple sclerosis, oncology, immunology, infectious outreach to veterans transitioning to civilian life. Our diseases, diabetes, cardiovascular, consumer Sanofi US ambassadors representing us are veterans healthcare, and established prescription prod- themselves, so they can speak to their experience ucts and generics. here. We have also nurtured relationships with NSN, a black sales network, as well as the National Black Will you discuss the role of a diversity and MBA Association to make sure that we are showing inclusion officer and is this role a part of that there is a place for all kinds of diversity within business strategy at Sanofi US? Sanofi US’s organization. We do this with a number The role has evolved. Years ago, many HR of groups reaching other demographics as well. practitioners came up through the space. Today, There is a major focus today on incluthe role has evolved into being more of a busi- sion. How do diversity and inclusion relate? ness partner and I come from the business side.

Stated simply, diversity is a fact, and incluOur ability to make D&I as relevant as every other sion is a choice. Last year, we made the switch aspect of what we do for business is helping drive to leading with inclusion. I’m head of inclusion greater progress with greater urgency. and diversity, not diversity and inclusion. This also Are Sanofi’s diversity and inclusion ini- brings more people into the conversation. tiatives consistent globally or do they differ Inclusion is more difficult to define for peoby market? ple, so we use the Verna- Myers method of saying, They differ greatly by market. There are con- “Diversity’s being invited to the party. Inclusion sistent themes that we all hold close and that tie us is being asked to dance.” We recently added the together, gender equity being one of them. We are additional mantra, “Belonging is when you dance guided by an overall ambition to reach global gen- like nobody’s watching.” Belonging is that feeling der balance within our senior leadership by 2025. that you have. It’s that connection of the heart We are just now introducing significant efforts with the head. globally around LGBTI inclusion and disability I believe that right now, more than being inclusion. Those have been a part of our agenda in a diversity revolution, we are in an inclusion in North America for a while. Of course, we also revolution. We want we make sure everybody have significant efforts focused on age, race and feels like they are a part of this conversation.

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In North America, over the last 18 months or so, this has involved inviting men, especially white men, into the conversation because it has traditionally been something that they have not been included in, which is absurd. We continue to have many men in positions of power.

If we are not offering them the same opportunity to be included and give them the benefit of learning what it means to feel “othered,” then how can they, with their influence, champion others and advocate for them?

So I think the conversation today is almost exclusively about inclusion. If you get that part right, the diversity will follow. If we can get people in the habit of asking, “Whose voice is missing from this table?” “Who is not in the room?”

“Who’s not being included?” Well, then we’ll see huge leaps and bounds of progress.

Is the proper dialog taking place around gender parity today?

I’m thrilled that the conversations are happening at the C-Suite level. I’m also thrilled that we have five business units in the U.S. and all five of them are run by exceptional leaders that happen to be women. That is a very powerful example for others to look to. We have come so far, but we have so far to go. However, it is not just about gender. I want everyone to feel included, irrespective of their age, their race, their orientation, their abilities, or their gender. So that’s where it gets complicated but exciting, because there’s no shortage of opportunities.

Are you able to take moments to reflect and celebrate the wins when you look at Sanofi’s diversity and inclusion efforts?

We have been able to celebrate things that we’re very proud of. We are very proud of having a perfect score for the Human Rights Campaign.

We are proud of coming back to Working Mothers 100 Best and being a Best Company for Dads for the first time.

It is exceptionally rewarding when you bring business partners and business leaders to these award events. The joy and the legitimate excitement I see from them makes it worth it and fuels their fire to do more.

I know what this work can ignite in people when they truly feel like they belong. We can choose to be frustrated and upset about the often divided state of the world and the state of this country, or we can look at it and say, “Well, my gosh, all of that crazy has brought so many people into the conversation that perhaps never would have been engaged before.” So I’ll take it.

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DIVERSITY & INCLUSION

Delivering Diversity An Interview with Alexander Amonett, Global Leader of Inclusion, Diversity and Colleague Experience, Marsh EDITORS’ NOTE Alexander Amonett is a recognized D&I leader with more than 9 years of experience.

He also has over 15 years of experience in global project management, learning and development, employee experience and client services. He is an influential public speaker on topics ranging from intersectionality, cross-cultural competence, unconscious bias, reverse mentoring, organizational debiasing and gender dynamics in the corporate environment.

tangible, and something where you can measure progress and impact. But first and foremost, it’s important to recognize that you must have an inclusive culture, and that needs to come first.

It is integral to the success of any programs that we may put in place for diversity.

Regardless of how smart any company’s design is to attract, retain and promote diversity, if you do not have a culture that supports diverse Alexander Amonett talent, those efforts won’t be sustainable. You have to recognize then that a one-size-fits-all approach is not going to work COMPANY BRIEF Marsh (marsh.com) is a in a complex global matrix. I think it is imporglobal leader in insurance brokering and risk tant to set up a global infrastructure with goals management. With more than 35,000 employ- and targets from the top and a strategy that can ees in over 130 countries, its experts in every be positioned and prioritized at every level of facet of risk and across industries help clients the business. to anticipate, quantify, and more fully underWe also need to recognize that we have stand the range of risks they face. Marsh offers to be flexible and allow for variation in exerisk management, risk consulting, insurance cution as it relates to our different regions broking, alternative risk financing, and insur- and populations. It is also essential that ance program management services to busi- accountability is driven to all levels in the nesses, government entities, organizations, and organization. individuals around the world.

The colleague experience is actually living the day-to-day results that we achieve How important is diversity and inclusion as through inclusion and diversity. If we are part of Marsh’s culture? doing inclusion and diversity right, I truly Marsh’s culture is evolving. This industry, believe that colleague engagement and the as a whole, has been a little slow in this regard. colleague experience organically follows. D&I Across the industry, we have had a culture that can’t just be a senior leadership strategy or is very risk adverse, and we have been stuck an HR strategy. It can’t just be driven by D&I with some legacy blind spots. Marsh, however, leaders or resource groups. It requires a level is at a place now where our leaders are commit- of commitment and engagement from every ted to delivering diversity. colleague in an organization. We all own this We have employees across the globe who process, and that is why we embed it into are taking responsibility for their role in driv- our performance evaluations, our leadership ing inclusion and debiasing systems and pro- competencies and our learning and developcesses across all lines of operations, functions ment programs. and talents. We are becoming a more fluent culIt is the way we engage our clients and it ture in steering away from optics and driving is the way we live our day-to-day work lives. action instead in order to create more sustainWhat are your views on the business able, measurable impact. I think it is important case for diversity and inclusion? that we remain humble and recognize that we I think there is probably a certain amount have room to grow and that our culture has of fatigue around studying the business case for embraced a growth mindset in setting up an diversity and inclusion. We have over a decade infrastructure of belonging. of research, and no matter whether we are refYour role covers inclusion, diversity erencing the McKinsey reports or looking interand colleague experience. Are these three nally at the benefits of having diverse teams and areas interrelated? diverse talent, we know that the more diverAny type of diversity strategy has to be sity you have, the stronger your bottom line intentional. It has to be deliberate, it has to be revenue will be.

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At Marsh, for example, our smallest resource group, which is our African heritage colleague resource group that has less than 40 members, ran events that, over a single year, raised $8.5 million of revenue through the client opportunities and connections that came from these resource group events. That is just 40 people and we have more than 30,000 in our organization, so this shows the strength and impact that diverse colleagues can bring to the table.

How critical has it been to have such strong engagement and commitment from Marsh’s C-Suite and senior leadership for its diversity and inclusion initiatives?

The commitment from the C-Suite is vital to diversity and inclusion and not just because it provides the authority to prioritize D&I as a business imperative, but also in driving accountability. It helps to position D&I not as a nice-to-have initiative or a colleague-engagement strategy, but as a mission critical to how we operate.

However, commitment can’t just be lip service from our C-Suite. It can’t just be a signed pledge, attending a keynote speech and reading off cue cards. It requires holding themselves accountable and measuring their hires and their promotions of diverse talent within their direct reports and teams. It requires safe-space conversations, where they can unpack their own blind spots and privilege. It requires ensuring that their opinion doesn’t supersede every voice at the table, and that all voices are represented at the table. It also requires direct tie-in to their own performance, their own compensation and their own leadership competencies.

Was diversity an area that you knew you had an interest in pursuing early on?

I think there are components that led me to this position in my life. One of them was absolutely a passion, as a gay man, for moving equitable opportunities for those that I associated with in my own demographic and my own upbringing, and the injustices that I saw over a decade ago.

However, as you continue in this field, you continue to broaden and recognize that there are so many voices that need to be represented. There are so many opportunities that aren’t equitable. I think most D&I leaders come into this space because they want to make change. They want to make a lasting impact on how we view the world and how we operate on a daily basis. They want everyone to shine and to have an opportunity to succeed despite privilege or experience or education.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

Cooperation, Compassion and Innovation An Interview with Le Joyce Naylor, Chief Diversity and Inclusion Officer, Cleveland Clinic EDITORS’ NOTE Le Joyce Naylor chamHow do you define the role of the pions the goal of fostering an incluchief diversity and inclusion officer sive and culturally competent work and how do you focus your efforts? environment to better serve patients, In the broadest sense, we look at caregivers and underserved commuhow we can foster an environment of nities. These efforts have resulted in inclusion for a healthcare system while Cleveland Clinic being recognized as remaining culturally competent to serve a DiversityInc Top Hospital and Health patients, caregivers, and the community.

System for ten consecutive years, most If you truly want diversity and inclunotably ranking #1 in 2019. Naylor sion to be embedded in every process previously served as Cleveland Clinic’s and every system, you have to take the Division Administrator for Human time to find those integration points and Le Joyce Naylor Resources. Prior to joining Cleveland design it in a very collaborative fashion.

Clinic, she held various leadership While I may identify best practices and positions in human resources, corporate admin- trends, we bring many other leaders into the conistration, public relations and consulting services. versation to define the strategy for the system and She holds a master’s in human resources from to identify the metrics and outcomes.

Cleveland State University, a Diversity Management Are diversity and inclusion interrelated?

Certificate from Cornell University, and is a Diversity and inclusion are often considered Cornell Certified Diversity Professional/Advanced to be one concept. They are really two separate Practitioner. She serves on the National Center for areas, and we have to look at both.

Healthcare Leadership’s Diversity & Inclusion Diversity needs to be looked at from the very Council, Cleveland Medical Association Advisory extensive sense. It requires that we understand that Board, Celebrate Sisterhood Executive Committee, individuals are unique and recognize the whole Member Engagement Committee for the Commission range of human difference. With all of the changing on Economic Inclusion, and the Board of Directors for demographics, diversity is already here and is not the American Sickle Cell Anemia Association. something we are going to change. We are going to continue to become more diverse as a nation.

INSTITUTION BRIEF Based in Cleveland, Ohio, Inclusion is the key, because inclusion is cenCleveland Clinic (my.clevelandclinic.org) is a non- tered around intention. It is discovering how to profit multispecialty academic medical center create a welcoming environment where those of that integrates clinical and hospital care with diverse backgrounds can thrive and succeed. This research and education. It was founded in 1921 requires strategy that is built with intent in mind by four renowned physicians with a vision of pro- because inclusion doesn’t happen just because viding outstanding patient care based upon the you have diversity; you really have to work on it. principles of cooperation, compassion and inno- Leaders need to identify how to invite others to vation. Cleveland Clinic has pioneered many the table so we can tap into their knowledge, life medical breakthroughs, including coronary experiences, and diverse perspectives. artery bypass surgery and the first face transplant Does recruiting the best and the brightest in the United States. U.S. News & World Report talent ensure a certain level of diversity? consistently names Cleveland Clinic as one of the We absolutely look to hire the best and brightnation’s best hospitals in its annual “America’s est and we know that they can be found in a very Best Hospitals” survey. Cleveland Clinic has diverse pool. We built strong relationships with approximately 66,000 caregivers including more professional organizations. We have relationships than 4,200 full-time salaried physicians and with colleges and universities – especially some of researchers and 16,000 nurses who represent our historical black and Hispanic serving colleges 120 medical specialties and subspecialties. and universities – to ensure we have that pipeline The Cleveland Clinic Health System includes a full of diverse talent. main campus near downtown Cleveland and Is it important to build employee groups more than 180 northern Ohio outpatient loca- to foster a level of comfort and inclusion? tions, including 18 full-service Family Health Absolutely – we have 11 employee resource Centers and three health and wellness centers as groups and 19 diversity councils at Cleveland Clinic. well as locations in southeast Florida, Las Vegas, Caregivers have shared that one of the reasons why Canada, Abu Dhabi and London. they came to Cleveland Clinic is that they could VOLUME 42, NUMBER 3

connect with all of our employee resource groups and diversity councils. They felt that they would be able to immediately join them and begin a dialog that enhanced their sense of belonging and their ability to contribute to accomplishing our vision.

Our employee resource groups work systemwide to help engage and onboard our caregivers, and they also enhance the understanding of our business plans and the strategies of Cleveland Clinic and how we can best use our collective knowledge to impact those strategies.

How important is community involvement to Cleveland Clinic?

Community involvement is a vital part of how we impact and improve the communities where we provide services and where our caregivers reside.

As a non-profit organization, Cleveland Clinic provides more than $906 million worth of value to our community. Our outreach into the community includes a broad spectrum of investments into non-profit organizations and community resource centers, engaging thousands of local residents daily and increasing access to healthcare. It also includes programming such as our “Healthy Community Initiative” which helps community members learn how to improve their health. Additionally, our community outreach includes a variety of programming and support that is tied to economic development and workforce initiatives. We work with nonprofit organizations such as College Now Greater Cleveland, the Urban League of Greater Cleveland, Towards Employment and Youth Opportunities Unlimited and provide an array of workforce initiatives and internship programs with the Cleveland Metropolitan School District.

Cleveland is in our name, so we have a responsibility being here. We are very proactive in identifying community opportunities to engage in and other areas where we can have impact and partnerships.

How important is C-Suite support in Cleveland Clinic’s diversity and inclusion efforts?

It’s extremely important. Our CEO, Tom Mihaljevic, M.D., expresses the importance of diversity and inclusion. He and our leadership team fully support the work we are doing in major areas such as workforce, cultural competency, unconscious bias training, health equity, and economic empowerment.

In order to be successful, we recognize that this work belongs to everyone. While we have an office of diversity and inclusion where we help to set the strategy, the overall implementation and integration lies within every institute, every division, and every caregiver.

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Driving Engagement An Interview with Melique Jones, Global Head of Diversity, Inclusion and Talent Pipeline, Skadden, Arps, Slate, Meagher & Flom LLP EDITORS’ NOTE Melique Jones has worked in various roles in D&I during her 18-year career at Skadden and prior to that she was involved in marketing, communications and business development. Before joining Skadden, she held communications roles at The Wall Street Journal and its parent company, Dow Jones & Co. Jones received her B.A. in journalism from New York University and her J.D. from Brooklyn Law School.

for our associates and counsel. That means taking steps that focus on work assignments, mentorship, sponsorship, executive coaching and client exposure.

We also have implemented many initiatives and policies that are typical in an organization that is committed to D&I. For example, we sponsor affinity networks, provide training programs on inclusive collaboration and mitigating unconscious bias, and communicate about the importance of D&I. Melique Jones Additionally, leaders regularly review key FIRM BRIEF Founded in 1948, metrics to help assess where we are.

Skadden, Arps, Slate, Meagher & Flom LLP and affilAs a practical matter, an effective D&I initiative iates (skadden.com) is widely considered one of the is not implemented from 30,000 feet. The issues and world’s most highly-respected law firms. Skadden opportunities related to D&I are global and local has 22 offices, approximately 1,700 attorneys and and require a very integrated approach within the more than 50 distinct areas of practice. The firm’s firm. Our D&I team works side-by-side with colclients include approximately 50 percent of Fortune leagues across offices, practices and administrative 250 industrial and service corporations, as well as departments to understand the relevant needs and financial and governmental entities, startup com- opportunities within specific areas to determine the panies and non-profits. appropriate strategy and resources to deploy.

What have been the keys to building such Will you discuss Skadden’s commitment to strong employee engagement at Skadden? diversity and inclusion and its initiatives in One key driver of engagement at the firm is this regard? the reputation we have earned for our dedication Our firm is incredibly diverse and building on to our clients and the interesting and diverse profile that profile is important to us. We are also commit- of matters in which we are involved – thanks to our ted to fostering a workplace culture that stimulates tremendously talented team of attorneys. a sense of belonging and a commitment to excelAnother important driver of engagement is lence among all of our attorneys and professional clarity around our core values – acting with integstaff. Inclusiveness is foundational to our collabora- rity and high ethical standards, treating each other tive, team approach to serving our clients. with collegiality and respect, giving back and being Leveraging our diversity starts with cultivating inclusive. an inclusive work environment in which respect In fact, our commitment to diversity and and collegiality are expected, all so that our inclusion is one of the most significant drivers for employees feel welcome and engaged at the firm, engagement at our firm. both professionally and socially.

We strive to back up the words with action Our D&I strategy centers on attorney hiring, and tangible investments. One example is our affinretention, professional development and advance- ity network platform. The firm sponsors seven netment. One of our most successful D&I hiring works across our various offices, each being led by initiatives is the Skadden 1L Scholars Program, interested associates and counsel. introduced in 2012. Each 1L Scholar works at the The networks provide participants with access firm as a summer associate and also spends part of to leadership development, mentoring and networktheir summer in the in-house legal department of ing that really helps to increase their connectedness a firm client. The program provides talented law to the firm. Even more, each network introduces students with what we call “the ultimate summer interesting events and programs that enrich the experience” in which they get exposure to law firm vibrancy of the larger Skadden community. and in-house practice.

Are there strong opportunities for We have introduced more specific approaches women at senior levels in the industry and to help achieve one of our most important D&I objec- will you discuss Skadden’s focus on providtives, which is increased diversity at the senior attor- ing opportunities for women to grow and ney levels. The emphasis is on access to opportunities lead at the firm?

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While progress on workplace gender equity across all industries has been slow, it is important to recognize the progress that has been made. The path for more women leaders will widen in organizations that are truly committed to D&I, driven by several factors. At Skadden, we are emboldened by the successful women who have blazed trails over the years and set an example for what is possible.

Additionally, clients are expecting more diversity on their teams, and newer generations of women and men are entering the profession expecting a level playing field of access to opportunity.

Currently, there are more women in leadership roles at the firm than ever – for example, our Policy Committee, the firm’s top governing body, is more than 30 percent women. One of our five global heads of practice is a woman, and 14 of our practice groups are led or co-led by women.

We have been successful, particularly in the past several years, in hiring and retaining associate classes that are at or close to 50 percent women.

While sustaining proactive law student recruitment efforts, we are also implementing initiatives aimed at developing, retaining and advancing women attorneys.

Two existing programs that are well received are our women’s leadership forum for senior associates and counsel, and a biennial conference for women mid-level associates. Each program helps to convey the firm’s commitment and investment in providing equal opportunities for women to develop and progress at pivotal points in their careers.

How critical has it been to have the commitment and engagement from Skadden’s senior leadership in the success of its diversity efforts?

The firm’s executive partner, Eric Friedman, is extremely committed to and engaged on this topic.

It would be impossible to achieve progress without the strong support from him and other leaders at the firm.

In addition to setting the tone and articulating D&I as a priority for the organization, leaders who are credible and effective in this area lead by personal example. They champion diversity on their core teams, create an expansive network of trusted advisors, encourage a range of viewpoints and perspectives to be heard, considered and valued, and address issues with care and integrity.

Those behaviors and attributes empower other leaders and rising talent. For people from still underrepresented backgrounds in the profession, that kind of leadership is a powerful indication that there is a place for them within the organization.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

The People Business An Interview with Darcy Mackay, Chief Human Resources Officer, CBRE EDITORS’ NOTE Darcy Mackay but it was something I owned as a leads CBRE’s effort to recruit, retain leader. That has always been my oriand develop the industry’s top marentation towards people and excepket-facing, functional and leadertional talent. ship talent. Prior to her current I think all of my experience is role, she was President of Global incredibly important since I have not Workplace Solutions West Division only been in different business lines and had global responsibility for within the company, but I have also CBRE’s occupier clients headrun, and resided in, different geograquartered in the 13 Western U.S. phies and regions. states. In her tenure with CBRE, I have a deep understanding of she has held many roles including our clients and what they need to Darcy Mackay the Chief Operating Officer of the be successful, as well as of our busiAmericas Occupier Advisory and nesses that are serving those clients.

Transaction Services business and, prior to that My ability to tailor the HR offering around role, Mackay served as CBRE’s Global Head driving exceptional outcomes comes from that of Transaction Management and Portfolio first-hand experience.

Services. In 2015, 2016 and 2017, she was How critical is it that CBRE’s worknamed by the San Francisco Business Times as force mirrors the diversity of its clients? one of “The Most Influential Women in the Bay It is absolutely essential. Diversity is Area Business.” In 2009 and again in 2013, essential to the growth and performance of she was named one of Northern California our company. Our goal is to make sure that Real Estate’s Women of Influence. Mackay we mirror the diversity within our client base, earned her B.A., cum laude, from Harvard no matter what business line or geography we University and her M.P.P. from the University are in, so it is absolutely core to our mission. of California, Berkeley.

We have a very focused strategy as it relates to diversity and inclusion, or as we increasingly FIRM BRIEF CBRE Group, Inc. (cbre.com) is talk about it, inclusion and diversity. Inclusion is the world’s largest commercial real estate ser- about our culture, and we monitor that closely. vices and investment firm, with 2018 revenues The vote that matters on that performance is our of $21.3 billion and more than 90,000 employ- employees, and our employees tell us how we ees (excluding affiliate offices). CBRE offers a are doing. We rate very high on our culture, on broad range of integrated services, including the inclusivity in our culture. facilities, transaction and project manageDiversity measures the outcome of that; it ment; investment management; appraisal and is what we see in the result. Traditionally, comvaluation; property leasing; strategic consult- mercial real estate has not been a diverse field, ing; property sales; mortgage services and especially in the U.S. We work really hard to development services. make sure that, from a recruiting perspective, we have the right partnerships in the commuHow has your vast experience at CBRE nities to improve the diversity of our potential prepared you for assuming the HR leader- talent pool. Then we need to do an exceptional ship role? job of mentoring, developing and growing our In my role as a business leader, I have new recruits, and making new employees feel always felt that I owned my talent and my tal- like they are part of this bigger community. ent outcomes. CBRE is a services business, When you mention having the best athwhich means that we are in the people busi- letes on the field, CBRE hires the best and ness. That is all we do. We don’t manufacture brightest. Does this ensure a certain level cars or software. We are services, and those of diversity or do you need to find different services are delivered by people. talent pools and build diverse partnerships So my ability to compete in the market- in the hiring process? place, my ability to win new business, and my It’s the latter. We need to be very intenability to drive exceptional client outcomes tional about what we’re doing. For example, is all predicated on having terrific athletes in we have a series of partnerships with about those roles. HR was my partner in doing that, 10 different groups just in the U.S. that are VOLUME 42, NUMBER 3

highly connected to diverse pools of candidates that have expertise in some of the core skillsets that we’re looking for. We partner with CREW (Commercial Real Estate Women), the Posse Foundation, Out and Equal, the National Association of Women MBAs and Black MBAs, to name a few.

We also have incredibly robust business resource groups within CBRE. We currently have seven of them that are very active in the U.S. that, together, have more than 8,000 members. We also have similar networks in other countries, like the UK Women’s Network which I was on the board of when I was in the UK. These folks are all engaged in building really strong culture and community within CBRE. Our board of directors is very active in this effort as well.

Those business resource groups are part of our partnership strategy. For example, our African American Network Group (AANG) is deeply connected with the historically black colleges and universit i e s (HBCU) connect program. When we are out there recruiting on these campuses, we have folks from AANG who are part of that effort. Conversely, when we have AANG meetings, we have folks, including students, from HBCU come in and participate in our programs. This is helping create connectivity in those talent pools even while they are still in school. Those partnerships and our business resource groups are very important components of our strategy.

We also have a number of diversity initiatives that are specifically designed to enhance the diversity of our leadership pipeline. We have instituted various scholarship and training programs. One, called IMPACT, is an 18-month global program that is specifically designed to improve gender balance at the most senior levels of the company.

How critical is it to have deep engagement and commitment from the C-Suite for CBRE’s diversity and inclusion efforts?

It’s absolutely critical to have not just commitment, but the action from the top.

Employees can see through hollow promises.

We are long past the days when executives could put out big proclamations, and then not show results. We are fortunate to have not just a diverse board, but a board that is deeply committed to moving the needle on diversity and inclusion.

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DIVERSITY & INCLUSION

A Tool for Social Justice An Interview with Dorcas Lind, MPH, Assistant Vice President of Diversity and Inclusion, Montefiore Medical Center EDITORS’ NOTE After a year-long Is it important today that the diverconsulting engagement, Dorcas sity and inclusion role is not just Lind joined Montefiore full-time in about people, but also a part of June 2018 to build the first formal business strategy?

Diversity and Inclusion (D&I) proAbsolutely. As we look at how gram for the medical center. Prior many opportunities for leaders in to joining Montefiore, she served as diversity and inclusion are popping President and Founder of Diversity up across the industry, it is clear that Health Communications where she the role is now a strategic one. Thirty helped secure top-tier placement on years ago, diversity and inclusion was the DiversityInc Top 50 Companies really just a notion of doing the right list over the past several years for a thing. Today, it is central to a strategic Dorcas Lind variety of clients. Before establishing approach and, if businesses are lookDiversity Health Communications, ing to really impact their clients, their she held leadership roles at several healthcare patients, and their relationships with business public relations firms including WCG, Ogilvy, partners, it is not optional. In fact, businesses and Edelman. In addition to client work, Lind who don’t apply a diversity and inclusion stratserved as communications strategist for the Ogilvy egy to their work will find themselves falling Diversity Council and worked to ensure an inclu- behind in terms of competitiveness and quality sive and diverse “workplace of the future.” This of services. work included planning and execution of the How broadly do you define diversity at D&I strategic plan, D&I communications, agency- Montefiore and how does inclusion relate wide employee resource groups and events, men- to diversity? toring programs such as the Women’s Leadership The old school of thought is that diversity Series, the Multicultural Summer Internship pro- was only about gender, race and ethnicity in the gram, and diversity recruiting initiatives. She professional workplace. We really see diversity has held key roles with Johnson & Johnson, the and inclusion in a much more comprehensive Institute for Reproductive Health Policy Studies at light here at Montefiore. We are not trying to the University of California at San Francisco, the simply tolerate differences, but to really leverSan Francisco Foundation, Planned Parenthood, age the richness of human experience in a way and the Mayor’s Office of Adolescent Pregnancy that is powerful and that helps us be innovative and Parenting Services in New York City. Lind in solving patients’ problems. We foster diversity obtained an MPH fr om the University of of thought because we know that there are mulCalifornia at Berkeley, a B.A. with honors in tiple ways of attacking and solving a problem.

Health & Society from Brown University and When we have individuals who can really bring completed postgraduate professional train- completely different perspectives to the issue, ing at the University of Chicago and Harvard we come up with different solutions than we University’s Kennedy School of Government. might not have come up with in the past. This creates opportunities to use the power of that INSTITUTION BRIEF As the academic health sys- diversity of thought to solve some of our most tem and University Hospital for Albert Einstein critical patient-centric challenges.

College of Medicine, Montefiore Health System Inclusion is the celebratory piece and is (montefiore.org) is nationally recognized for deeply rooted in respect. At Montefiore, we are clinical excellence, breaking new ground in not simply interested in representation. It is research, training the next generation of health- important and we are proud of our legacy of care leaders, and delivering science-driven, representation in terms of reflecting the compatient-centered care. Montefiore is ranked munities we serve and bringing those individuamong the top hospitals nationally and region- als and populations into our organization from ally by U.S. News & World Report. For more an employee and community development perthan 100 years, Montefiore has been innovat- spective. However, we also want to make sure ing new treatments, procedures and approaches that once diverse groups enter our facilities and to patient care, producing stellar outcomes, and clinics, they have access to all levels of the orgaraising the bar for health systems in the region nization, feel that their voices are heard and that and around the world. their values and experiences are reflected in 56 LEADERS

how we develop policy and how we view our culture as an organization. Inclusion is about having a true sense of belonging and ensuring that everyone’s perspective is considered.

How critical is it to reach out to diverse populations and different talent pools to fulfill Montefiore’s diversity needs?

It is critical. I feel privileged to be a part of this organization because, from the beginning, Montefiore has defined medicine as a tool for social justice. Through our approach to talent development and talent acquisition, we are looking for diverse individuals who share that mindset and have that quest for social justice as part of their DNA. We know that when we achieve inclusion and belonging in the workplace, the chances of delivering the most culturally competent care increases. We look for a very specific set of values and skillsets that allow us to continue to build a more inclusive culture.

What is Montefiore doing to encourage diverse talent to pursue careers in healthcare?

We are the teaching hospital for the Albert Einstein College of Medicine. Together, we are committed to identifying individuals in the communities we serve who might be interested in the healthcare field and finding ways to help them with medical and nursing education as well as education and training in all the auxiliary support and administrative roles that are so important to the success of a healthcare delivery system. We have programs that look at youth workforce development such as a tremendous partnership with the New York City Public Schools that allow us to expose students to healthcare careers and to participate in internships with healthcare providers who might employ them in the future.

What excited you about the opportunity to join Montefiore?

Montefiore has come full circle for me in terms of my personal journey. It was my childhood hospital and it was also the hospital where my grandparents received their end-of-life care.

It is also an organization that is positioned to incorporate diversity and inclusion strategically, from population health initiatives to conducting clinical trials. Our approach engages vulnerable populations in dignified and respectful ways, increasing access to participation in medical research for the most underserved patients. That is very attractive to me.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

Making a Meaningful Difference An Interview with Patti Clarke, Chief Talent Officer, Havas Group EDITORS’ NOTE Patti Clarke is Does Havas’ focus on hiring responsible for leading talent & culthe best talent result in a certain tural strategy for the group’s 20,000+ level of diversity or do you need employees in over 100 countries. to have processes in place in your Clarke is a key strategist in spearhiring efforts to build a diverse heading innovative talent programs workforce? that enable employees to live Havas’ Creating a diverse and inclusive collaborative culture. She has led global workforce does take focus and initiatives on network mobility, highprioritization. Our agencies are leadpotential leadership development, ing on a wide range of D&I initiatives global onboarding, global employee including, recruiting, ethnic and culengagement and employer brandtural representation, gender equality, Patti Clarke ing. Most recently, she has launched pay equity, disability, wellness and Femmes Forward, Havas’s global more. We leverage and partner with leadership development and advancement pro- industry organizations, universities and other gram for director-level women, as well as “All In,” groups to help advance our objectives and we a global D&I initiative. Her experience includes a also share best practices among agencies. I also 20-year career at Dun & Bradstreet, where she think our being centered on “meaningfulness” was Chief Human Resources Officer for nine creates a natural attraction for millennials and years and also ran global internal communica- Gen Z for whom purpose is really important in tions. She led D&B to industry honors as one of their decisions around work.

Fortune magazine’s “Most Admired Companies.”

Will you highlight Havas’ focus on proBefore joining Havas Group, Clarke ran her own viding opportunities for women at senior consulting business with a focus on helping pri- levels in the company? vate-equity backed companies develop their talent We actually are in a quite favorable position management capabilities. when it comes to women running agencies and networks. If you look at our four networks – COMPANY BRIEF Havas Group (havasgroup.com) the creative network, the media network, BETC is one of the world’s largest global communi- network, and the health network – two of the cations groups. Founded in 1835 in Paris by four are run by women. Additionally, 44 perCharles Louis Havas, the Group employs 20,000 cent of our CEO, President, Managing Director/ people in over 100 countries and is one of the Partner titles are held by women. largest global advertising groups in the world.

The opportunity area for us is around Havas is one of the most integrated groups in its developing and advancing more senior mansector with a regional structure that places the cli- ager and director-level women into the executive ent at the center of the organization. This “client ranks. It’s a key focus for us and the reason why centric” approach enables Havas to better satisfy we developed our Femmes Forward program and anticipate its clients’ needs. Havas consists of which has now been delivered in London, New three main operational divisions: creative, media, York, Paris, APAC, Iberia and, most recently, a and healthcare and wellness. cohort from our U.S. agencies. Through the mix of leadership, skill development and exposure to What is at the core of Havas’ culture? inspirational women leaders, we believe we have We are a highly collaborative organiza- an opportunity to bend the curve in this area. tion. Every day there are teams working As the first chief talent officer for together across agencies and capabilities Havas, how do you define the role? within each of our 60+ villages and also with We’re all about creating innovative and other teams across the globe. Each village has collaborative learning and development expeits own unique distinctions, but they all are riences. Our global talent offering includes focused on our common vision: To make a hi-po leadership development, cultural mobilmeaningful difference to businesses, brands, ity opportunities, employee engagement plans, and people. Our vision comes to life in terms global onboarding to Havas Group and of the work we do for our clients and we are enhancing our employer brand. We’ve also also focused on it manifesting in the environ- recently initiated our Global D&I program “All ment for our employees.

In” as well as our Femmes Forward program.

VOLUME 42, NUMBER 3

Our NextGen program is a year-long program that is developing the next group of senior executives for Havas. We also give employees an opportunity to have global and cultural experiences through our Lofts program, which is a month-long immersion in another agency in another country.

The employees that participate in these and other programs are grateful for the experience and quite often return with a new perspective on their role and the global network. Our leadership has seen this benefit and understands that these types of programs are essential to keep our employees motivated and engaged. Finally, they connect people all across our network, which helps us be better for our clients.

What excited you about the opportunity to join Havas and has it been what you expected?

After 20 years at Dun & Bradstreet, the last nine years as the chief HR officer, I felt it was time to challenge myself in a different way. When this opportunity came about, I was really curious because six years ago, the industry was in a real state of change with digital, etc. I came into the business on the creative side which was very fresh and interesting.

My second motivation was that I wanted to work more closely with the people. As the chief HR officer of a public company, in addition to leading the cultural strategy, I spent a lot of time in board meetings, working on restructuring plans, and on implementing policy and changing regulations. All these are very important, but can limit how much you are able to engage directly in the programs that grow and develop employees. So, for me, it was also about the opportunity to get closer to the development work for employees.

Fast forward six years and I couldn’t be happier with the decision I made. I think this is an amazing industry with a mix of all types of skill sets and people, from data analytics gurus to beautiful creative artists. This keeps the “gas in my tank” every day and really energizes me.

As we move forward, we have such an opportunity through our work with employees to be even more impactful with the execution of our vision to make a meaningful difference to brands, to businesses, and to people.

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DIVERSITY & INCLUSION

Achieving More An Interview with Jay Santamaria, Chief of Staff, Active International EDITORS’ NOTE Jay Santamaria of solutions. We represent possibilities serves as adviser to the Chairman of for companies to improve their bottom Active International and is a senior line, to expand and grow and to achieve member of its Global Leadership moreSM and that basically comes from our Team. He brought more than 40 years value creation proposition. of business and talent management That value creation proposition experience to Active. Prior to joining started with corporate trade, which is a Active in 2016, he served in execuvery elegant formula that has been legititive and HR positions at RJR Nabisco mized by top auditing firms. We now and ITT, and for more than 20 years have standardized ways of treating revas CEO of BeamPines Inc., a global enue recognition and other elements of talent management consultancy, trade. Corporate trade is more of a busiJay Santamaria where he still serves as Non-Executive ness product that we offer, but it is not Chairman. Santamaria graduated our only business. We’ve expanded from from Lafayette College with degrees in history and complete reliance on trade to many other derivaeducation and has continued his training in labor tions of that solution in areas that we did not work relations, diversity, finance, compensation and in before. incentive design. He is a certified Master Coach and We tried to get ahead of the curve on the served as a faculty member of the U.S. educational digital transformation in media. I actually see that division of Middlesex University’s graduate program digital and linear are going to intersect eventually in Professional Development. Santamaria is also and we’re seeing that beginning to happen now.

Director and Founding Partner of G2Collective Inc. To prepare for this, we just completed the formation of a performance-based short form DR and COMPANY BRIEF Nearly four decades ago, Active digital agency. It was a very timely investment in a International (activeinternational.com) disrupted concept that continues to gain traction and we’re the marketplace by developing an innovative, mar- going to get a lot out of this business. ket leading, client-centric approach to corporate We have developed a broad expertise in trade. The development of best-in-class solutions has many of these transformational fields, all of which led Active to evolve into a commercial innovation have become monetizable business lines for us. company. Active’s purpose is to transform data into Corporate trade is still in our DNA, but we now insights, strategy into action, and vision into value. have a diversified portfolio of services that we can With the entrepreneurial spirit of a startup, and the offer to clients who want to achieve more. capabilities of a global corporation, Active continAre Active’s service offerings focused on ues to redefine what’s possible and turn possibilities companies across all sectors? into positive business outcomes. Active drives perAbsolutely. There isn’t a business or indusformance through industry expertise, its Corporate try that we can’t work in, especially if they have Trade Model and portfolio of companies with a core some sort of media spin, which is our sweet spot competency in media, to create and deliver value given our long-standing expertise in media. There for leading brands throughout their business life- are other services that we provide that are derivacycles. With a global team comprised of business tives of the media industry that we’re getting into innovators, industry leaders, media mavens and to expand our expertise. finance experts, Active is dedicated to delivering This has also led us to invest millions in the new levels of financial flexibility and custom solu- development of our own technology. We now tions. An employee owned company, Active’s client own patents and have other patents pending in success comes first, as well as the betterment of its areas such as optimization processes for buying. people and the communities in which they live.

Case in point is our automated unwired platform, XACTV, which we developed in July 2016 and Do you define Active today as a corporate launched in 2017. XACTV has become a significant trade company or has it become a com- business for Active.

The XACTV advanced technology platform mercial innovation company?

We have certainly evolved to become a com- uses multiple proprietary and patent-pending techmercial innovation company. Our expertise, com- nologies with artificial intelligence support from bined with the portfolio of companies we now bring IBM’s Watson. It is designed to optimize buys across to bear, allow for us to deliver an extensive range the country into a national program. It creates a 58 LEADERS

national footprint utilizing 140 to 150 local stations versus the five or so actual national networks. It can string together optimized buys at each one of these stations for specific time slots. National advertisers can still specify when they want their message to air nationally, but with our optimizing unwired technology they can do it for a lot less money than they could by buying a national spot with a national media provider.

Is it challenging to manage the human resources function when the business is going through such a transformation?

Because Active is headquartered in Pearl River in Rockland County, we have always drawn from an excellent local workforce who appreciate working here because it’s only a few minutes from their house. As we have gone through this kind of transformation, we have had to re-energize our culture and have found that most of our people are excited about the changes and have transitioned well.

It has certainly impacted the type of executive we recruit. Today, we look more for those who can add strategic thought leadership rather than those who just know how to execute media transactions.

It starts at the top with questions like: Where are we going? What’s the mission here? How are we going to get there? Who is going to get us there?

How are we going to know it works? These are the fundamental pillars of supporting strategies that can be executed.

We haven’t always done a lot of this in the past; we set revenue numbers to get so many assets and buy so much media and then set a target for next year that was higher than the previous year.

Not a lot of thought went into how we were going to achieve that target.

How critical are diversity and inclusion to the culture of Active?

It is very important and is something that we’re constantly working on. It’s a challenge, particularly given our location. As a statistical recruiting area at the executive level, Rockland County might not offer a lot of options. We have to go to find those executives in New York City. That becomes a bit of a challenge, but we’re making progress.

I would say that we have been most successful in attracting, developing and promoting women at the vice president level. If I were to look across the ranks, I’d say that we are very well represented by women in key positions. In fact, today, 50 percent of our executive vice presidents are women.

We’re slightly under-represented by minorities when compared to the national averages, but that’s not to say we’re not working on it.

VOLUME 42, NUMBER 3

What is Active doing to attract more minorities to its workforce?

We are starting at the entry level hiring gate and, while we may not see an immediate effect, we did start something that could help. In late 2018, we were approached by a consortium of minority agencies and asked for some ideas. The conversation eventually landed on how traditionally black colleges and universities helped their students with their careers at graduation and beyond. We have had some experience with career counseling, even at the university level, and we have a very good online tool that Active has adopted called eTeach. We have used the platform for a lot of our training and coaching initiatives ranging from leadership to very specific training courses in media and advertising which is an area of expertise for us. Several years ago, we developed for commercial purposes a set of modules on eTeach designed to serve as support training for college placement offices called CTC-University(Career Track Counseling). While there are over a hundred of these institutions, it seems that only a handful of them have sufficient resources to staff and deliver placement services for their matriculating students. The task is usually assigned to a department faculty member with no particular expertise or training in career counseling. With one of our co-founders’ support, Active took the original CTC U training material and rewrote the curriculum using minority counselors with expertise in this area. Now that its geared to minority audiences, we are planning to approach these colleges and universities and give them the platform and content, offer them training in how to use it and help them improve their overall placement rates. This initiative falls under our 501 (c)(3) organization called Active Cares.

How will this effort impact Active?

In the short run, it may invite curiosity about Active as a sponsor of this counseling and curiosity about the advertising industry in general as a career option. In the long run, we may be able to get colleges and universities to focus more on providing contemporary courses in advertising and media, which would be good for the industry and good for Active. Media is a very dynamic and complex subject these days and we know we have the expertise to help train future generations of employees.

As Active has grown in size and scale with its international presence, is it more challenging to maintain culture?

I spent my first year or two at Active conducting a leadership training program called Agile Leadership. It was a 12-month program where senior people gained a greater understanding of themselves, their leadership styles, how they approached conflict, and how they approached working together and collaborating.

It was quite telling and I intentionally included a number of cohort leaders – it was like a graduate course. I took the international teams and held monthly cohort meetings with them.

They would each complete a module delivered through our technology and I could then talk with them about how we’re now going to leverage that technology in media to open up new markets and develop new business.

VOLUME 42, NUMBER 3

This also gave me the opportunity to get to know them and their culture. I found that the international esprit de corps was something that I could use as a role model for the U.S. business. We started getting the international senior leadership team more involved with the U.S. groups.

Last year, we were able to take advantage of a senior opportunity and actually promote and transfer one of the women from the U.K. into a senior role reporting to the Chief Operating Officer and the Chief Financial Officer here in the U.S. With technology facilitating communication and information sharing, it’s not as difficult as it might seem to be a global company. We’re actually trying to get the U.S. business culture to look a little more like the international cultures. With 50 people on one floor in an international office, they can all look in on one another and share information. In the U.S., we’ve got four floors.

The work environment counts too. Beginning in 2018, we’ve undertaken a long-overdue renovation in our Pearl River office, primarily stimulated by technology. We have old wiring that can’t carry the volume of data throughout the building that we need. As long as we’re going to be ripping out the wiring, we’re also going to rip out the walls. When we rebuild the walls, they will be transparent glass walls. This is just one of the symbols of how we’re enhancing our culture.

We’re moving departments around so that we have groups that need to work closely together in the same geographical proximity. They won’t have to call or send an e-mail; they can just stop in and visit. All these little things facilitate collaboration and enhanced communication and tear down the silos that existed here for years.

Do you also define Active as a technology company today?

Active is a media services company that leverages technology to facilitate and fit in with the organizational and business goals of its clients. Are we going to be in the business of developing software for sale? We’ve done some of that, and will do some in the future, but our focus will mostly be on customizing software and only building software if we need to, so we can serve our clients’ needs.

I have this philosophy that you either rent it, buy it or build it. It all depends on what you are trying to achieve. With the unwired network, nobody had what we needed, but we saw that there was an underserved market. We started with a little prototype and said, “All right; this just might work.”

Then we realized that if we were going to go full speed on this, we really had to engage a development company and add some rather sophisticated artificial intelligence or cognitive computing to the mix. That is how we connected ourselves with Essextec and IBM Watson. In fact, if you go to the IBM website you’re going to see a case study on Active there because we are what they consider an industry disruptor with what we’ve done with that particular technology. IBM sent an agency in to do a video with us on that particular bit of technology because they were very proud of the end result.

Will there be additional collaborations and partnerships for Active?

It will certainly happen with other leaders, strategic partnerships and the use of consortiums.

If you were to look at what agencies do and how they do it, it’s a very old hierarchical business model. If we’re going to truly be agile and nimble, we have to be able to do anything another agency can do but do it faster and for less money because we’re developing networks of experts. We don’t own them all and they are not exclusive to us, but they have talent that we can leverage with our network where we need it for a client. And let’s not forget our value proposition that starts with trade and a myriad of other potential solutions.

We know we can help a client with what they need. First of all, we will size up their situation.

Then we will zero in on what they need and the results they expect so we know if it’s successful.

Finally, we will go out and put the process together that will deliver this for them. It sounds a lot like consultancy in some respects. It’s always been about the media and we have always been buying media, but we have this added dimension of trade that allows us to play this in a different way.

With all that you are doing with Active, do you ever think about retirement?

Let’s put it this way; I’m having fun and I see progress. There are still a lot of challenges. I look at this in a Druckerian way – referring to Peter Drucker, the father of management consulting. His fundamental conclusion on capitalism was that it is the most effective form of socialism. Why? Because capitalism creates value, value creates opportunities and, while 1 or 2 percent of the top people in the capitalist system are going to abuse it, that is true of any system.

At the end of the day, if we can create an environment that creates jobs for people and it grows, then we’re doing a good thing for our community, for our society, and for our country. It all falls into place at a 50,000-foot level that way.

With Active, we have 700 souls that work here and, like an old ship captain, you always logged how many souls you had on board, and that’s literally the terminology we use. It is up to us to land them all safely.

You see, much of what I learned about business I learned by operating a tall ship with my wife for about 15 years. Her concept was to train young girls in leadership and teamwork and build their confidence in ways that only a unique, challenging experience could do. For her, it was our 110-foot topsail schooner. This tall ship was too big and complicated for any one person to manage, so we used our professional crew to train these young women.

When we needed it, we brought in experts to help.

Our success in safe passage-making depended on training, teamwork and communication.

A company like Active is no different; it needs leadership, everyone knowing their jobs, working as a team and communicating in that special way that only a team or a well-trained crew can do. At the end of the day, we have been doing this for 35 years; how do we get this organization shaped up for another 35 years and 35 years after that? Sustainability is the key so that Alan (Elkin, Chief Executive Officer) and Arthur (Wagner, President) don’t have to be here, so that we have a succession plan and a strategic business plan that will carry it into the future. That’s really the endgame.

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DIVERSITY & INCLUSION

Customer Focus An Interview with Bernard Garrigues, Executive Vice President and Chief Human Resources Officer, Webster Financial Corporation and Webster Bank EDITORS’ NOTE Bernard Garrigues These three elements motivate our joined Webster in 2014. Prior to that, bankers every day in many ways. A great he was with TIMEX Group where he part of our success is that people are was Chief Human Resources Officer inspired by our culture and fully embrace with global human resources responsithose Webster values. I like to say that bility for several thousand employees our bankers drive the performance of in 22 countries. Previously, he worked the business, but the culture drives the 21 years for General Electric where he performance and the behaviors of our served as global head of HR for a numbankers. ber of GE businesses. Garrigues is Six Is it important to put metrics Sigma Green Belt certified, a published around Webster’s diversity and incluauthor, and a seasoned guest lecturer. sion efforts?

Bernard Garrigues He is a graduate of the University of Yes. At the end of the day, metrics Montpellier in Montpellier, France and measures are important elements with degrees in employee relations and law. that influence results. Our role is to make sure that our Diversity & Inclusion (D&I) strategic prioriC O M PA N Y B R I E F We b s t e r B a n k , N . A . ties are embedded in our playbook and become (public.websteronline.com) is a leading regional a regular part of our business practices. Specific bank in the Northeast with more than $28 billion metrics can certainly help drive the achievement of in assets and 157 banking centers from greater New our D&I priorities. However, let’s keep in mind that York City to Boston. It offers a full range of finan- metrics are just vectors of the execution of our D&I cial services, delivered by almost 3,400 employees. strategy – leadership engagement is even more The company was founded in 1935 and is based in important and comes first.

Waterbury, Connecticut.

Our approach is not to over-engineer things, but aspirational goals and simple metrics can posiWhat have been the keys to Webster Bank’s tively influence diversity progress and drive meansuccess and how critical is culture to the ingful results. strength and leadership of the company?

How critical is C-Suite and senior manCulture is a very important driver of how we agement engagement in driving Webster’s do business at Webster, and diversity and inclusion diversity and inclusion efforts? provide the foundation of this culture.

It is the pivotal point. It is fundamental that A critical element of Webster’s culture is our the leadership of the organization, starting with the focus on the customer. We pride ourselves on CEO, is fully engaged. Our CEO sets the tone at doing the right thing for our customers, working the top. He is absolutely committed to D&I and with them to better understand their needs, and he makes that point by co-chairing our Diversity & then finding the best solution for them. Taking Inclusion Council. personal responsibility for meeting our customers’ Because D&I is a priority for our CEO and needs is a clear differentiator and an integral part for the entire executive leadership team, this of Webster’s DNA. commitment and focus generates a broader level Another element of our culture is that Webster of engagement across the organization. It has genuinely cares about employees. Of course, it is become a critical element of the way we conalso a performance-driven culture and the bar is duct business at Webster. D&I is frequently on high, but every individual has the opportunity to the agenda of executive committee meetings, contribute to business results and we strive to pro- which represents a great platform for raising the vide an environment that supports and enables profile of D&I. A year ago, we implemented their performance. Part of our strategy is to ensure a program called “Leading a Diverse Team.” We that people from diverse backgrounds can excel started the program with the executive committee in their jobs, have the opportunity to develop new to fine-tune the approach and garner their supskills and fulfill their career aspirations. port for utilizing more inclusive behaviors with The third element of Webster’s culture is our their respective teams. This sent a strong signal to dedication to the communities we serve. Giving the business, and it was well-received across the back to the community is very important for us. It organization. The program was then rolled out to makes a positive impact, and it’s a good reflection all leaders at Webster and in 2019 the program of our Webster values in action. has been expanded to all bankers.

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When people in a business unit see that their leader is really engaged and takes D&I very seriously, not only do they think that it is an important priority, but it also creates an unparalleled level of motivation and momentum in the workplace.

How do you describe Webster Bank’s value proposition?

We are obviously looking to hire the leaders of the future, those who are going to build on our successful legacy and take our business to new heights. Of course, not everybody can be a leader, but everybody can contribute in a meaningful way to the success of the business.

As it relates to our employee value proposition, our ability to attract and retain talent is based on several things: First, it is about engaging people and showing them that Webster’s vibrant culture provides a strong sense of purpose. People need to be inspired by something bigger than themselves. A diverse and inclusive culture is an important factor for employees. It is also about clearly articulating the business vision and strategy, inspiring people and showing them the promising future ahead.

Second, it is important to demonstrate Webster’s commitment to investing in people, offering opportunities to grow and learn, to increase their domain expertise and enrich their leadership skills. Continuously nurturing our workforce represents a critical competitive advantage.

Webster offers a broad range of career opportunities. We do not hire individuals just for a specific job. We hire individuals with potential who can have a successful career and achieve their aspirations, and we work very hard to facilitate internal mobility.

Hiring strong leaders and domain experts and empowering them is a key to success. People aspire to demonstrate their potential in a way that is fulfilling and gives them the latitude to make an impact.

Providing stretch assignments, challenging opportunities and developmental projects is also part of our talent strategy.

Finally, it is vital to keep people engaged around our culture of openness, transparency, honesty and appreciation. Appreciation for a job well done, recognition and celebration are also part of our efforts to push for more inclusion and excitement in the workplace.

These are some of the elements of our value proposition for prospective and current employees. They represent a unique combination that differentiates us and makes Webster a great place to work.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

Values Driven An Interview with Cathy Fraser, Chief Human Resources Officer, Mayo Clinic EDITORS’ NOTE Cathy Fraser is a decision aligns with our values and responsible for the people strateserves the needs of the patient. This is gies and services that ensure refreshing because our values are not Mayo Clinic’s current and future just words on a poster on the wall. workforce delivers its patient-cenThey are actually lived and breathed tric mission in alignment with the every day. organization’s primary value – Will you discuss Mayo Clinic’s the needs of the patients come first. focus around diversity and incluBefore joining Mayo Clinic in 2016, sion and, with such a diverse patient she led HR at Tenet Healthcare, a base, is it important that the worklarge national healthcare services force mirrors that population? company. Earlier in her career, Absolutely. We have a very interCathy Fraser she served as a management connational patient mix. Most of our sultant at McKinsey & Company, customers are not from Rochester, helping clients with organization and human Minnesota, where we have about half of our capital opportunities primarily in the retail and workforce. consumer industries. Fraser also worked in varThe international world looks really differious finance roles at American Airlines, Sabre ent, so we have to be quite intentional around and General Motors. She earned her bache- ensuring that we are bringing people in and lor’s degree in business administration from the recruiting physicians from around the world.

University of Washington and an M.B.A. from Our allied health staff are primarily local, so we the University of Michigan. Fraser currently have to be very deliberate about ensuring that serves on the board of trustees of the American we achieve as good a representation as we can.

Association of Cancer Research Foundation and This is challenging, but it is doable. We have is a member of Women’s Corporate Directors to look for different sources for talent. It means and Women’s Business Leaders. we go into high schools and start influencing programs at that level to inspire people that have INSTITUTION BRIEF Mayo Clinic (mayoclinic.org) an ethnic background that more closely matches is a not-for-profit organization committed our patient population. We do this very deliberto clinical practice, education and research, ately starting with a few core programs. and providing expert, comprehensive care to Mayo Clinic is known to attract and patients with serious and complex illnesses. hire the best talent. Does this ensure a cerMayo Clinic has major campuses in Rochester, tain level of diversity or do you need to have Minnesota; Scottsdale and Phoenix, Arizona; programs in place in your hiring process and Jacksonville, Florida. The Mayo Clinic to make sure that you are reaching diverse Health System serves more than 60 communities talent pools? in Iowa, Minnesota and Wisconsin. Mayo Clinic We absolutely need to have processes in cares for more than one million people a year. place. We are a very career focused organization. In fact, our people strategy is “lifelong How critical are Mayo Clinic’s values to the careers for talented people who share our valconsistent strength and leadership of the ues.” We want people to stay a long time. organization?

We know they will not be successful, nor We have very long tenure at Mayo Clinic will we be successful with getting great people, which allows us to pass along expected norms unless we are all aligned around our values. and behaviors quite effectively over time, and that We assess for values fit first. Then, hopefully, consistency allows us to keep our actions very we are able to reach a big enough pool that we aligned with our values. I have never worked with are able to attract a very diverse and qualified an organization that lives its values as palpably as set of people.

Mayo Clinic does. Every one of our 65,000 people How broadly do you define diversity at will tell you that the primary value of Mayo Clinic Mayo Clinic? is that the needs of the patient come first.

At Mayo, it is more about inclusion than This is not just a catch-phrase. I’ve actually diversity. Every individual must have a voice. seen it in how we make decisions. The top lead- No one should feel marginalized, regardless of ership of this organization will always ask how what their demographics or psychographics are, VOLUME 42, NUMBER 3

so we measure this. We ask the question, “Do you feel like you can speak up?”

We have to address this issue of inclusion everywhere. We have affinity groups as well as employee resource groups that focus on fostering this. We have about 30 Mayo employee resource groups. These represent not only ethnic groups or gender groups, but also other kinds of interest groups. For instance, we have a group for people who are aspiring to become leaders. We have well-being champions who address physical fitness, nutrition, social challenges and any other issues that affect a person’s well-being.

We also have virtual affinity groups where people can share tips and ideas. These help drive connection and broaden the definition of diversity beyond the classic areas such as gender and ethnicity.

With the long tenure of Mayo’s employees, is it challenging to maintain a culture of innovation?

One of our values is innovation and we actually have many reinforcing mechanisms here that effectively set an expectation of innovation. For instance, many of our people, particularly our physicians, have attended either our graduate school or our school of medicine.

They have had this concept of what innovation means peppered into their earliest lessons.

Physicians create an expectation that all of our people contribute time to either our education, our research, or our administration areas. They are also expected to keep advancing their education or research portfolios, so rarely will you find a physician who says, “All I do is practice.”

Another interesting part of the innovation concept is based on our compensation model.

Mayo Clinic employees are paid base salary based upon market and experience. This means that the need to take on extra patients to accumulate more compensation is off the table. People here are paid very fairly, but they are also paid to contribute in a way that goes beyond just the practice through research. If we don’t do research and innovate, future patients are not going to receive the care that we would want for them at Mayo Clinic.

Taking that pay piece off the table is an amazing motivator for people to innovate because they have the time to do it. They are no longer held hostage to having to see more and more patients in order to make more money.

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DIVERSITY & INCLUSION

The Impact of Insurance An Interview with Dee Lehane, Independent NED, Argo Group International Holdings, Ltd. EDITORS’ NOTE Dee Lehane’s internot at parity, yet. It’s going to take time national career includes significant to get there, but certainly the numbers experience dealing with strategic have i n c r e a s e d o v e r a n u m b e r issues and technology-led business o f years, particularly at the larger change at global insurance compacompanies. When you start to get to nies. She was previously Managing smaller listed companies and private Partner Global Insurance Industry companies, the progress is probably for Accenture, where she worked for not as good. over 20 years. Lehane is currently We still, however, have a lot more the Independent Chair of the Debt work to do on parity at the executive Market Integrator, a HMG Cabinet ranks where we haven’t seen that Office venture serving a number same kind of progress.

Dee Lehane of government departments, and What are the keys to achieving Chairman of ORIC International, parity? the Insurance Industry Risk Consortium. She has I think at the hiring level today we are previously served on the boards of Aviva Life and clearly at parity. Many of the organizations Pensions Insurance Ireland and Aviva Health I’ve been involved with will get 50/50 balInsurance Ireland. ance between women and men at graduate entry. Many of the other diversity factors are COMPANY BRIEF Argo Group International also improving. It is when you get to the more Holdings, Ltd. (argolimited.com) is an inter- senior ranks that the metrics don’t look as national underwriter of specialty insurance strong. and reinsurance products in the property and I think there are a number of factors that casualty market. Argo Group offers a full line companies can look at in order to improve this of products and services designed to meet the such as culture and role models , unconscious unique coverage and claims handling needs of bias, procedures and policies, flexible working businesses around the world. and measurement and tracking of diversity metrics. This is not just female/male diversity, but all What interested you in serving as a director forms of diversity. The key metric is to try and get for Argo Group and what made you feel it to the magic number of having at least 25 to 30 was the right fit? percent of a company’s senior ranks comprised Argo attracted me for two reasons. One of females and other minority groups. Research was that Mark (Watson, President and CEO) done at the London Business School supports the really gets the digital agenda and is very keen fact that once you get to that critical mass among to have it become a core plank of Argo’s strat- senior executives, it is actually quite easy to keep egy moving forward. My experience includes 25 that pipeline stocked with diverse executives. years of looking at how technology is going to How does having a diverse workforce change companies and improve their strategies impact the bottom line and is it a key differso this is an area that I can contribute a great entiator for leading companies today? deal and am very excited to be a part of.

There has been a lot of research by some The second attraction was that the board very prestigious names about bottom line and management is a diverse and interesting impact of diversity. The research supports that group of people with an objective of growing from a purely financial metric, diverse orgaArgo from a small, domestic company to a much nizations perform better. I believe that this is bigger, international company. Again, this is part driven by better decision making and better of my core experience and interest. These are a people. In my experience, a diverse group of fantastic and challenging set of objectives to be people will look at a problem from a number involved in. of different angles, and the solution that they Has there been progress made when it come up with will almost inevitably be better comes to expanding the diversity of boards than the solution proposed by a set of homogtoday? enous people.

There’s certainly a huge amount of progDiverse, high-performing companies are ress, and we see that in the metrics relating to an exciting, interesting place to work so they the percentage of women on boards. We are are able to attract better and diverse types of 62 LEADERS

talent. This creates this a virtuous circle where a diverse workforce makes better decisions which brings better financial outcomes which attracts better people and on and on. One of the highlights of my career has been the opportunity to live and work across many countries working with a very diverse range of people.

As an insurance industry veteran, what do you tell young people about working in the insurance industry today and do you feel the industry has done an effective job of telling its story?

I don’t think the industry as a whole has told the story, but there are beacons of light within the industry. We are starting to see companies come out and be much more progressive. We have seen Lloyd’s of London take a very strong stance on gender and LGBT inclusivity. There has been some fantastic work done there.

We also see companies – Argo is one of those – that are really trying to transform into an insurance digital/technology company because insurance is really about data and risk analysis.

That is a perfect space for a technology player.

At Argo, we are now looking at recruiting a very different set of people in addition to our traditional insurance people.

This should stimulate debate about issues that will be important to a more diverse pool of potential employees. Should you be locating your offices in technology hubs instead of the traditional areas? What kind of working environments are we creating? What is the dress code, the career progressions, etc.?

This has to be looked at quite holistically and must answer the question, “How do you make this industry much more attractive to graduates who would not traditionally have looked at insurance as a career choice?”

What has made the insurance industry so interesting for you and one where you have wanted to spend your career?

Insurance is an industry that helps people out when things are really tough. When there has been a natural disaster or when a person’s house has burned down, the company that you turn to is an insurance company. I’m not sure the industry has done a great job of explaining that to our customers, but we are a vital emergency service, similar to fire or police. We provide support when it is most needed, and that makes it a very important and rewarding career to be in at the end of the day.

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VOLUME 42, NUMBER 3

DIVERSITY & INCLUSION

Marcum’s Mission An Interview with Saran Johnson, Co-Chief Human Resources Officer, Marcum LLP EDITORS’ NOTE Saran Johnson started her career with Marcum 19 years ago and has more than 14 years of human resource management experience. She has extensive knowledge of employee relations, organizational development and per formance management. She was recently appointed as the Chair of the firm’s Diversity & Inclusion Steering Committee. Johnson is a graduate of Hofstra University, is professionally certified in human resource management, and regularly speaks on industry topics.

talent in order to build a diverse workforce?

Our philosophy has always been and always will be to attract the best people, but achieving diversity within our firm culture means that we have to open up the ways that we recruit and sometimes the events or schools where we recruit; in big cities, it’s never a problem – you can always get a diverse base. In some of our suburban areas, it is a little bit more of a Saran Johnson challenge. This means it is our job to go out and make sure that we are not only getting the best talent, but also that we are attracting candidates from diverse cultures and FIRM BRIEF Marcum LLP is one of the largest backgrounds. independent public accounting and advisory How does Marcum address inclusion? services firms in the nation, with offices in major Our Diversity and Inclusion Steering business markets throughout the U.S., Grand Committee’s primary focus is programming that Cayman, China, and Ireland. Headquartered encourages not only a diverse culture, but also in New York City, Marcum (marcumllp.com) diversity of thought and inclusiveness for our provides a full spectrum of traditional tax, 2,000 associates. The group comprises leaders accounting, and assurance services; advisory, across the firm from all backgrounds. That mix valuation and litigation support; managed brings something different to the table and a accounting services; and an extensive range of totally fresh perspective. specialty and niche industry practices. The firm How is Marcum focusing on providing serves both privately-held and publicly-traded opportunities for women to grow and lead companies, as well as nonprofit and social sec- at the firm? tor entities, high-net-worth individuals, and priOur women’s leadership initiative was vate equity funds and hedge funds, with a focus established to create a more compelling work on middle-market companies and closely-held environment and enhanced career opportunities family businesses. for women at the firm, through national and local programs and activities that motivate, supWill you discuss Marcum’s focus on diver- port, advance, retain and reward women. The sity and inclusion?

Women’s Initiative is charged with engaging Marcum has made diversity and inclusion Marcum’s female professionals and executing a priority. There is a great benefit that comes overall strategy for women’s career success at from having people from various backgrounds the firm. because it broadens our perspective in a meanWith programs such as core hours and ingful way and helps drive the solutions we are alternative work arrangements, Marcum offers able to offer our clients and our associates. its associates more flexibility than ever before.

Our Chairman and Chief Executive Officer, Marcum recognizes that traditionally women Jeffrey Weiner, sits on the national Diversity & still bear much of the responsibility for their Inclusion Steering Committee that I have the families. As such, we have developed ways to privilege of chairing. Jeff has personally com- retain and cultivate talented women, many of mitted to the “CEO Action for Diversity & whom have spent their careers here and are Inclusion” which is the largest CEO-driven now partners, national service line leaders or business commitment to advance diversity and C-Suite executives, myself included. inclusion within the workplace with more than What do you tell young people about a 600 CEO signatories. career in the accounting profession?

Does hiring the best talent ensure a I tell every young person I meet who isn’t certain level of diversity or do you need sure about what they want to do to go into to have processes in place when hiring new accounting. I’ve seen the growth and success VOLUME 42, NUMBER 3

that the profession has allowed our firm, as well as me personally, and I am grateful for that.

At Marcum, we have many rock stars here, and our people are dynamic and entrepreneurial. We have people that are out there making waves within the industry in many different areas. It is a great place to build the career you want, with the industry focus or specialized skill set that you want.

You have been at Marcum for 19 years.

What has made the experience so special for you?

I almost feel I have been born and bred at Marcum. I worked for five years before starting grad school to pursue my MBA. The flexibility, encouragement and support I received during this time allowed me to finish my program ahead of schedule.

It has really been a great place to grow my career. My role has changed over the years and, although I have always been under the HR banner, I have also become very involved in firm integration during mergers and acquisitions, which has always been interesting for me.

I truly believe in this company and in the vision of Jeff Weiner, with whom I have worked closely throughout the years.

How critical has it been to maintain Marcum’s culture with all of the growth that the firm has experienced?

I think it is really dependent on the leadership. We have now grown both organically and through mergers and acquisitions, to 2,000 people. As we’ve grown our ranks, it has sometimes been challenging to get and keep everyone marching to the same drummer, but as long as you have vision at the top, I think it makes for true buy-in across the firm.

We have an amazing team that does a very good job of making sure that everyone feels welcome on day one and throughout the process, which takes time. With respect to firms that have merged in, I would say many probably don’t feel entirely at home and 100 percent “Marcum” until around the two-year mark. We are talking about people, not commodities, which means it can take time for new associates and partners to feel a part of the larger culture that we have here. I think that we have figured out how to do it and, for the most part, people are happy when they come under the Marcum umbrella and join the Marcum family.

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DIVERSITY & INCLUSION

Creating Campaigns for Diverse Stakeholders An Interview with Trisch L. Smith, Global Chief Diversity and Inclusion Officer, Edelman EDITORS’ NOTE Trisch Smith serves clear that we needed to intentionally as Edelman’s first Global Chief and strategically diversify our workDiversity and Inclusion Officer. In force in order to deliver even stronger this role, she strives to drive diversity business results for the firm and our and foster inclusion to ensure develclients. opment of innovative solutions that Does hiring the best and reach and resonate with clients’ brightest talent ensure a certain key audiences and achieve busilevel of diversity or do you need ness success. During her 18-year to reach out to different talent tenure with Edelman, Smith has pools and partner with diverse managed stakeholder outreach, organizations in order to make reputation management, commusure you are building a diverse Trisch L. Smith nity engagement and public affairs workforce? campaigns for Fortune 500 corpoWe always want to and always rations, non-profits and associations, includ- will hire the best and most creative talent of ing Chevron, Toyota, Starbucks, Girl Scouts of all backgrounds to deliver the most innovathe USA and Walmart, among others. She has tive and creative results. To ensure this, we also led the firm’s award-winning multicultural need to partner with a host of diverse groups client services offering. Smith sits on the Board and organizations and recruit at numerous of Directors of Color Comm: Women of Color in schools to help in this process. When you Communications, and served on the boards of the look at the diversity of our work in terms National Black Child Development Institute and of how the industry has evolved, we need Maryland Public Broadcasting Commission. different types of skillsets and expertise. So, Recently, she received the inaugural Adweek for us, it’s about cultivating relationships and ADCOLOR Champion award and was throughout various communities so that we named the 2018 NAFE P&L Executive of the Year, can make sure we are getting the best talamong other honors. Smith earned a bachelor’s ent from all backgrounds. degree in communications from Morgan State How important is internal communicaUniversity in Baltimore and a master’s degree tion in telling Edelman’s D&I story in order in broadcast journalism from the University to engage employees in these efforts? of Maryland, College Park.

Internal communications is key in making sure people understand what the comFIRM BRIEF With 6,000 people in more than mitment is, how the organization is living 60 offices, Edelman (edelman.com) is a global it and each employee’s role in helping to communications firm that partners with busi- achieve our goals. We have found that our nesses and organizations to evolve, promote and employee networks have been a great conprotect their brands and reputations. Since its duit for information sharing. We also have founding in 1952 by Dan Edelman, the firm an internal network through our workplace has remained an independent, family-run com- platform through which we communicate pany. Edelman uses its profits to strengthen its and provide regular updates on our D&I business, provide its employees with opportuni- programming. All of our employee networks ties to grow, and serve as a responsible citizen have their own pages on which they comof the world. The firm remains committed to its municate about their regular events, activifounding values and principles under Richard ties and findings. We are definitely trying to Edelman’s leadership today. ensure that we communicate more consistently so that employees are updated and can How critical is the focus on diversity and get involved. inclusion for Edelman?

How critical is it to have engagement It is imperative. We recognize that diversity and commitment from the C-Suite and manof all types is key for us in making sure that agement team in supporting Edelman’s D&I we are creating campaigns that truly reach and efforts? resonate with our clients’ increasingly diverse Senior leadership must be involved stakeholders. Based on work we had done with and actively live our commitment. We several clients and in the changing world, it was have top senior leaders who are executive 64 LEADERS

sponsors of all of our employee networks.

They help lead those groups and serve as a voice and ally at the highest levels of the company.

While this support is important for employees to see, this also provides an opportunity for our senior leaders to gain insights as well. It is a shared experience and is mutually beneficial.

Senior support is absolutely critical in driving this work and ensuring that it is a priority at all times.

Is the impact of D&I on business outcomes and the importance of having diverse experiences and thoughts around the table when making business decisions well understood?

D&I has become a focus and priority among many organizations across industries and sectors. Historically, the importance has been better understood by companies who have a direct consumer product or service.

There have been numerous articles about the value, and a great deal of research has been done demonstrating the ROI of having a diverse and inclusive workplace. Edelman’s Trust Barometer shows that employees and customers have an increased expectation of employers to take a stand on important matters such as D&I. As a global communications company, we recognize that we are best equipped to develop campaigns that will truly be effective in reaching an increasingly diverse world if we have greater diversity at the table – and not just a seat at the table, but that everyone has a voice that is welcomed and heard at the table.

How do you define what differentiates Edelman?

Building off the family values and independence on which the firm was established allows us to chart our own course. For example, we were one of the first firms to create a multicultural PR practice more than 20 years ago. When I look at what sets us apart and how we have grown, I think the entrepreneurial spirit and client-centric focus that Dan Edelman founded the company upon still remains core to who we are today. We are continuing that legacy through seeking innovative professionals who are pushing the envelope in global communications. Diversity is central to that endeavor.

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VOLUME 42, NUMBER 3

COURAGE BEAT THE ODDS Born conjoined with their brains intertwined, now Anias and Jadon are off to school.

See how Anias and Jadon Beat the Odds at MontefioreCourage.org

Corporate Wellness A LEADERS ROUNDTABLE DISCUSSION With Joe De Sena, Founder and Chief Executive Officer, SPARTAN and other prominent wellness executives Joe De Sena

David Schner, President, LEADERS Magazine: Business leaders have increasingly been grappling with the issue of corporate wellness in their organizations and the impact of employee health on employee engagement, retaining talent and business outcomes. Many companies are looking at how to most effectively deal with the issues around creating a healthy workforce and corporate wellness. During a recent interview for LEADERS with Joe De Sena, CEO and Co-Founder of SPARTAN, we discussed SPARTAN’s focus on thought leadership and commitment to leading beyond SPARTAN races and in the area of corporate wellness.

We decided to bring together a group of executives to discuss issues impacting corporate wellness and to share best practices from leading organizations focused on building a healthier workforce.

Following is the discussion: Richard Baker: I am the Chairman of the Hudson Bay Company, which is in the real estate and the retail business. We own brands such as Saks Fifth Avenue, Lord & Taylor, the Hudson Bay Company in Canada, Galeria Kaufhof in Germany, as well as Karstadt in Germany. We are also in Belgium and the Netherlands. We run these operating companies, and then we own a large portfolio of real estate in which those operating companies perform.

I am happy to be here to discuss issues around corporate wellness. It is a very complex problem that we are addressing today, especially in our business where, rather than building a company from scratch, we have acquired a lot of older brands and companies that are looking to change and reposition themselves. Additionally, being a global business, the medical health varies greatly from Canada to the U.S. to Germany, for example, so it requires very different thinking.

Heida Tinoco: I am the Karma Leader at Rakuten Marketing. What is a Karma leader, you may ask?

As a Karma leader, I coordinate events for the employees and charity work at the company, among other things. This is a great platform to promote wellness within the company.

Rakuten is the exclusive Global Innovation Partner and “Powered by” partner of SPARTAN. Our company is well known in Japan, and is investing in elevating brand awareness in the U.S. Our partnership with SPARTAN is a strategic part of that investment. Most importantly, Spartan is a partner that reflects important aspects of our company culture. Regarding the subject of empowering others, the heart of the Rakuten mission statement is to, “Contribute to society by creating value through innovation and entrepreneurship.” My role is to make this a reality for the employees at Rakuten Marketing. We are making many changes in the company relating to wellness, and I look forward to hearing what other companies are doing in this area as well.

66 LEADERS

Eric Sekler: I am the Executive Director of Paul, Weiss, Rifkind, Wharton, & Garrison, a global law firm headquartered in New York. We have three offices in the U.S., an office in Canada, an office in Europe, and three offices in Asia.

We are in the early stages of addressing mental health issues, well-being, physical health and related topics. The legal industry is a highly stressful environment and with over 1,000 lawyers in our firm, including 160 partners, we are constantly thinking about ways to create programs that will make the experiences for our lawyers and staff as successful as possible. I am here to learn and hope that we will be able to share ideas that we can all take back to our respective teams.

Ruth Ann Wynter: I am the Senior Human Resources Business Partner with United Talent Agency (UTA). I head human resources for New York, London and Sweden. Over the past few years, we have taken a very intentional approach to moving beyond normal benefits – health and welfare benefits – and really branching out with new programs and benefits focused on wellness. We actually approach wellness now in three ways – financial wellness, mental wellness and physical wellness. It has really been an exciting process and we have seen employees respond in a great way.

We are looking to continue to grow our efforts in this area and I am excited to learn more from each of you today on your efforts around wellness.

Brad Shipp: I am the Director of Strategic Alliances for VARIDESK. We are the inventors of an affordable, height-adjustable desk solution that has been adopted worldwide. We sell direct to the U.S., Canada and Australia and work with over 98 percent of the Fortune 500 companies on heightadjustable desk solutions. We have also pioneered active office furniture solutions that not only adjust and flex to the individual, but also adjust and flex to the organization. While we do believe corporate wellness is a complex problem, we believe there are some simple solutions that can drive some very important progress for an organization.

VOLUME 42, NUMBER 3

During the past ten years, working with over five million SPARTANs, we’ve learned a great deal about staying healthy and fit. We are now incorporating that knowledge into new cutting-edge offerings designed to build better employee health, workplace engagement, teamwork and reduced turnover.

- Joe De Sena, SPARTAN Joe Moscola: I am Senior Vice President and Chief People Officer at Northwell Health.

Northwell Health is a fully-integrated healthcare system within the New York metro area. While we have 23 hospitals, over 700 physician practices, and 4,000 employed physicians, we do much more, whether it be for health, preventative medicine, integrative medicine, post-acute services and things of that sort. We have also been in the insurance, care management and other related businesses.

We are the largest private employer in New York State. We have 70,000 employees for which we are responsible, but we view our responsibility as being to their significant others as well – so, the entire family. With that, it brings us to about 140,000 lives for which we view ourselves responsible for their total well-being. I’m excited for the conversation today and to hear the various perspectives.

Dave Milani: I am Vice President, On-Site Services at Optum, which is a very large company in the healthcare space. We are part of UnitedHealth Group, so UnitedHealthcare is our sister company.

What our team does within Optum is to serve as the on-site services modality of the prevention and well-being team within Optum. In the employer space, prevention and well-being is responsible for all things wellness, from biometrics to all the other many things we do. We come on site and help employers’ teams move more, eat better, be safer and be more mindful by changing their behaviors. We do this through health promotion, fitness and nutrition programming as well as coaching and ergonomics interventions. We are actually a consumer and recommender of the products represented around this table in many cases.

We are doing some exciting things with SPARTAN on the resiliency front because that is really where employee wellness is going. It is not really going to be employee wellness anymore. It is going to be organizational performance in the future, and we think that being on site, in people’s faces, is really the only way to generate those changes.

Dr. Lara Pence: I serve as the Chief Wellness Specialist for Spartan and hosts Spartan Mind, a weekly podcast. I hail from New Hampshire but currently reside in the much warmer climate of Dallas. As a Licensed Clinical Psychologist, I have spent the last decade working with individuals as they peel back the layers of their outer shell, cast aside the unhealthy patterns that are keeping them stuck and unfulfilled, and begin to build a new, more resilient and adventurous sense of self. I have worked with Olympic level athletes, successful business owners, and entrepreneurs and have helped them move away from comparison and self-loathing and towards connection, self-investment and ultimately, success. I look forward to being a part of this important discussion.

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Joe, SPARTAN: I would like to take a minute to introduce Shaun T. You may remember Shaun T from Insanity Workouts which have been all over TV. I figured since he was here, I would ask him to say a few words and we should send him into all your companies. Shaun T, will you share some advice on how to get the workplace healthier?

Shaun T: This is very interesting, because my first career out of college was in corporate health with the company MedFit. It is interesting that now, after having a career in fitness and understanding more of what fitness is – that it is about more than just the body; it is about internal health – one of the things that is actually really important to me is trying to get back into corporate health and what people do every day.

I think the most important thing to recognize is that fitness doesn’t have a size; it has a mentality and it has a feeling. I think far too much of fitness is focused on the before and after and a number. While that is the tangible look and feeling of what it is, at the end of the day, it is the feeling on the inside that matters. I think that whatever you are doing to motivate and inspire people should be connected to a tangible feeling and a tangible result at the same time. If you lose weight, you’re going to feel good. It is connected to confidence.

People want to be winners. So what are they winning? Yes, there is a weight loss component to it but, at the same time, what confidence are you building? There should be a focus on the victories that happen as you are conducting these different programs for people.

David, LEADERS: I want to turn it over to Lara. Lara is an expert in the areas of wellness, so she lives this and thinks about it all the time. Lara, will you discuss the climate around corporate wellness today?

Lara, SPARTAN: From my perspective, the outside things in our working society are looking good. We are valuing creativity and quality, not just experience and loyalty. We are hiring thought leaders and gamechangers, not just degree-holders. I think we are offering greater flexibility through remote work and telecommunication, which gives our employees more independence and, hopefully, moves us further away from time clocks and exhausting commutes.

The struggle is – and I have seen this for 10 years in my private practice working with entrepreneurs and individuals who are employed in a wide variety of organizations – that America is still really sick and that, underneath all this creativity, this innovation, this flexibility and technological advancement, America is struggling.

The statistics are pretty clear: Four out of 10 adult Americans are obese. Heart disease is still the leading cause of death. One out of five Americans struggle with a mental illness, and one out of six Americans are on an antidepressant. We have an issue here.

I think one of the most startling statistics is that more than 50 percent of adult Americans report significant feelings of loneliness. We are physically ill, we are not mentally well, and we are not connected, and this is costing us. It is costing us on the front lines of our businesses, but it is also costing us on the bottom lines of our businesses.

The American Diabetic Association reports that the cost of diabetes is $327 billion, and chronic illness is costing businesses $1 trillion in lost productivity. The leading causes of the increase in healthcare are depression and obesity. Those are the statistics, but let’s just talk for a minute LEADERS 67

We should look at how we meld wellness into the DNA of our corporations and organizations, so that these conversations aren’t an anomaly, but are just what we are talking about all the time.

- Lara, SPARTAN

about the values. As organizations, no matter how small or large, we care about our business and keeping our businesses moving forward but, in order to do that, we have to care about our employees. We have to invest in our employees.

I always say that the greatest respect you can show somebody who invests in you is to invest back in them. Employees spend a lot of time at their jobs – 40 hours, 50 hours, 60 hours or sometimes even 120 hours – it is an enormous amount of time. This means it is important for us really to think about how we create a container that implements wellness. How do we move to help our employees become more physically well, mentally well and more connected? All of us around this table and out there in industry are smart enough to know that if our employees and staff are not prioritizing physical health, mental health and connectivity, then they are not going to show up for work in the way that we want them to. They may not even show up at all.

At SPARTAN, we absolutely want people out there, running our races, climbing up ropes, and crawling underneath the barbed wire, but we are more than just building bruises and scars, although we are really good at that. We want to build better humans, so we believe we must invest in our employees and look hard at corporate wellness. Perhaps this should even extend beyond corporate wellness and into corporate culture. We should look at how we meld wellness into the DNA of our corporations and organizations, so that these conversations aren’t an anomaly, but are just what we are talking about all the time. We are here today to really begin this conversation and, hopefully, to take what we learn out with us and begin to make some changes.

Joe, SPARTAN: At SPARTAN, we are all in on corporate wellness because the need is particularly acute. A recent study reports that lost productivity due to poor health costs U.S. companies over $500 billion annually.

During the past ten years, working with over five million SPARTANs, we’ve learned a great deal about staying healthy and fit. We are now incorporating that knowledge into new cutting-edge offerings designed to build better employee health, workplace engagement, teamwork and reduced turnover. Our suite of corporate wellness services includes, among others, corporate team participation in our races, SPARTAN X 68 LEADERS

Leadership Forums, and our new SPARTAN Challenge app, an easy to use mobile option that builds employee health, productivity and teamwork through a variety of themed in-company 30-day challenges.

Our proven philosophy is that businesses need to build teams that do hard things together. Millions around the world have run our races and grown stronger by learning how to navigate obstacles both on and off the field.

Brad, VARIDESK: The way we look at it at VARIDESK is that you have to put interventions in place to get people moving. The New York Times recently ran an article that said if you take fewer than 4,000 steps a day, exercise still may not benefit you and may not be helpful in stemming diabetes, heart disease and other health issues. The research was done at the University of Texas at Austin.

How do you begin to provide interventions? We do some really simple things. Our headquarters has nearly 300 people in it with 7,500 square feet. There are only 10 trash cans. No one has a trash can at their desk. We just don’t do it. If you want to throw something away, you have to get up. You have to get up and move. There is only one place in the entire office to get coffee and it is a central location. We have water stops throughout the entire office. There are probably 10 or 15 water stations throughout the entire office. There are two restrooms.

Again, you have to encourage and engage people to get them to move. You have to give them reasons to move. We do this naturally because of our products and we know how to do it – we move the office a lot. We change the infrastructure of the office and how it looks so you don’t get into a pattern of walking the same way every day. We also highly encourage people to utilize conference rooms on the other side of the building.

You have to engage and build this need for movement throughout the day. We have an on-site gym. We have a corporate trainer, but it is more than just that. It is the daily infrastructure and the daily breaks that you give people. Everyone at our office has a height-adjustable desk.

Some people use them. Some people don’t use them. You are encouraged to use them, but it is certainly not mandatory – but we know that if people use a height-adjustable desk, they stand up more, they move more, they move throughout the office more, so they see more people, they have more collaboration and they are more creative. That is supported by data. These are just some of the really simple things that we do that make a difference.

Joe, SPARTAN: Brad, what about food? I was at the headquarters of Google and Facebook, and I was disappointed by the amount of junk food that was offered.

Brad, VARIDESK: We have food at our office, as well. We have one location at the office where you can get food. We subsidize healthy food. You do have to pay for the food, but the healthy food such as carrot sticks or a healthy salad for lunch is sold to the employees at cost.

Joe, SPARTAN: That’s interesting. You could almost have two kitchens, one where the healthy food is free and one where it is more expensive to not eat healthy.

Brad, VARIDESK: Actually, you can get a candy bar at our office, but it is hidden. They are behind doors but if you want one, you can find it, but there is a surcharge for it. We up charge those. So all food is there, but only healthy food is subsidized. All junk food – and there is not a lot of junk food – carries a surcharge.

Lara, SPARTAN: One of the things you said, Brad, that I loved, is that getting up and moving around gets people talking and connected. If they are just sitting down in their cubicles with walls around them, there is less of an opportunity for connection.

Connection is the fiber of our beings as human beings. Even if we are introverts, human connection is still much of what drives us. I would love to hear from other leaders in the room about how you facilitate that connection, especially when we are as a society moving much more towards remote work and maybe aren’t necessarily in an office or quite as geographically connected.

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Dave, Optum: I can talk a little bit about that. When we go on site, we view ourselves as a hospitality business that happens to focus on wellness, because our biggest job is really to create that social DNA of wellness like you talked about – that social fabric of connectivity within an employer. If you don’t do that – if you can’t get that infused into the culture – you are going to fight a losing battle from day one.

We are kind of at this advent, this moment when everybody is realizing that you can’t really separate physical well-being from spiritual wellbeing from mental well-being. There are forward-thinking companies that are taking a much more holistic approach to this. The Medicare doctors will now tell you that they would rather see patients get out and smoke with friends than stay home alone and not smoke because that is how strong that social connectivity aspect is to wellness.

I think the more forward-thinking employers are now saying, “well, we have tried all these digital things that get to people but have these really low adoption and engagement rates. How can we really infuse this culture of wellness?” We just think that changing behavior is really, really hard to do without some level of personal interaction. When that happens, then you create that social fabric where you have a front door, a trusted resource who maybe becomes the mayor of your campus and can start to influence food choices and really think about the workplace holistically. Then you can really create some action to drive participation in all the things you offer.

Eric, Paul, Weiss: The whole concept of remote access and flexible work schedules is something that the legal profession is struggling with because our entire environment is built around collaboration. In particular, associates need mentors and sponsors; the only way that can happen over time is to personally work with people on a regular basis. Working from home makes it extraordinarily difficult to develop the necessary attributes to ultimately become a partner of a firm like ours or to work as general counsel of a company.

To a certain extent, the points that you are making about remote access and flextime are very interesting. Loneliness is probably the most significant issue that our industry is facing right now. That is adding to issues relating to substance abuse, stress and anxiety. So the real question that we need to think about as an organization and as a profession is how we strike the right balance between allowing people to work from home on an intermittent basis, and at the same time reduce the issues relating to loneliness that our profession is struggling with right now.

Ruth, UTA: There is one thing I tell all employers. We tend to think in “programs,” and I think we should be more comfortable in the space of “pilots.”

Everything doesn’t have to be a big, corporate program. Let it start to develop organically. We actually had the leader of a department say, “I want to give my employees one hour every week that I pay for, where they get to pick what they want to do. They could build a class or do whatever.” We said, “Go ahead. Try it. See what comes out of that.” We ended up with a number of people taking exercise classes or doing other healthy activities. Giving people the opportunity and freedom to try something, even if it doesn’t work, at least allows us to respond to what employees actually want.

Geographically, there are also natural differences in focus. For our London office right now, mental health is huge because the royal family has taken this on. It is a big challenge. That office didn’t want to focus on physical wellness first. They wanted to talk about yoga, mindfulness, and meditation. It is okay to let that be what you charge ahead with in London, even if LA is charging ahead with something else.

So I think companies should start small and not force themselves into the huge program mentality. Organic response is probably going to last a lot longer, because it is coming from the heart of the people and addresses the issues that they bring to the table. You don’t have to be brilliant. You can literally just respond to what people are asking for, and the more they’re crying out for it, the more you can be responsive, even if you don’t have the full-on plan and mission.

Using this approach, we now have an ERG focused on wellness that was started within the last six months. It turned out that this was a bubbling issue. It is what people wanted to talk about, and there is an entire community for which wellness is their passion. They were able to set the program for the rest of the company. HR can support employee ideas, but we don’t have to come up with them all on our own. Listen to your employees. They’re talking. They know what they are struggling with.

VOLUME 42, NUMBER 3

Heida, Rakuten: At Rakuten we have the Karma Team, which was created to generate a positive atmosphere, boost morale, facilitate team building and build cross-functional relationships among all Rakuten Marketing offices. It started off with small teams and a limited budget about 6 years ago. We have gone a long way since then by creating amazing karma teams throughout thirteen offices. We have captains in each of our different offices who localize Karma projects based on the unique culture of each office. We create opportunities for employees to connect by having quarterly parties throughout the year. These events are led by the captains who have been able to gather 20 to 60 employees on their teams who volunteer to coordinate events for the employees. These events are based on the employees’ feedback. They may want to sing karaoke at a bar, participate on a corporate sports team, have competitions (such as office Olympics), or coordinate a Spartan Race and then go to a suite with food and drinks afterwards.

Secondly and most importantly, we connect the employees through charity work. Providing office charity drives, raising funds for a great cause, volunteering at an organization that gives back to the community, connects us as a company.

Across our international offices, we have employees who work remotely. One of our challenges is to keep those employees engaged, as well as those that work in our offices. We are experimenting with a wellness app designed to connect our employees. This will be great for those employees who work remotely. They will be able to connect through the wellness app and still feel involved with the other employees.

I believe wellness is not only physical; it is also financial and mental, therefore we are focusing on those areas too.

Eric, Paul, Weiss: Can I address the issue you had raised in terms of going out for a SPARTAN Race and then having drinks? In this sphere of wellness, we are all struggling with expectations regarding alcohol and how organizations are dealing with it. There are constantly internal and client events where this is an issue. How are people dealing with the whole issue regarding alcohol as it relates to this new dynamic that we are facing related to mental health and well-being?

We are kind of at this advent, this moment when everybody is realizing that you can’t really separate physical well-being from spiritual well-being from mental wellbeing. There are forward-thinking companies that are taking a much more holistic approach to this.

- Brad, VARIDESK

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Joe, SPARTAN: Before SPARTAN, I had a financial firm that was a much smaller firm than any represented here. In the 1970s, my mother was into yoga meditation, which was considered really wacky at the time and not accepted. However, in the ’90s and early 2000s, it was a little more accepted so rather than doing the dinners and the alcohol, which we were doing a lot of as we entertained clients to get business, I took some of my mother’s philosophy and we switched to entertaining and doing yoga together, or entertaining and doing a race together, and business went through the roof.

If you take customers or employees out to do those things – fight together and bleed together – it is a complete game-changer, but there has to be someone to champion this. I happened to be the CEO so it was a little easier for me to champion it. Change is the game, but you have to find somebody who is going to push this. You’ll do three times as much business.

Dave, Optum: I really like a lot of what I’m hearing here for a couple of reasons. Number one, I think the community aspect really is the most important thing. My biggest disappointment is when I walk into a room with a potential client or prospect and they immediately ask about the outcomes data and how much money they are going to save on healthcare. They are looking at it the wrong way. This is about engagement. It is about creating that level of engagement with your employees.

When it comes to the outcomes conversation, I am a representative of the outcome. I joined the workforce in 1997 and, by 2008, I was up to 210 pounds and hadn’t really moved in probably 10 years. I joined a company that had a focus on health and became healthy. On a personal note, over the past three years, I’ve been divorced, moved twice, had one parent almost die of lung cancer and another parent that did die of lung cancer. This is representative of your employees. These types of

If you take customers or employees out to do those things – fight together and bleed together – it is a complete game-changer, but there has to be someone to champion this. Change is the game, but you have to find somebody who is going to push this. You’ll do three times as much business.

- Joe, SPARTAN

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issues are what your people are dealing with. How do you make them feel supported so that, in the midst of all this, they see work as the place they can come to get that sense of community, to get that level of support, and maybe a place where they can go think about something else for a little while?

Joe, Northwell: I have been digesting all these different comments and trying to overlay that on what our strategy is at Northwell. As a healthcare provider, I think that what we are really talking about is the behavior change of well-being. Why does someone join the gym, go for a couple months, and then stop? Why does boot camp work, versus SPARTAN, versus anything else as the stimulation for me? It is an individualized journey.

When it comes to engagement, our journey is really about getting our people talking about activity. Can we get you talking about walking?

One of the ways we do that is through a company-wide walking challenge. We have a social media platform that we utilize to promote this and we have about 45,000 employees participating.

This last year we did a virtual walk to Dublin. Why? Our CEO is an Irish immigrant, so it seemed easy. Teams of 10 that could jointly get to the number of steps that it would take to get to Dublin would then be eligible to win prizes. We gave them Fitbits before they started so we could track their progress. The idea was not so much about whether anyone was going to lower their BMI as a result of walking to Dublin.

However, the data from the Fitbits showed that the base level of activity before the walk to Dublin went way up during the walk and it only came about halfway down after the challenge was over. So we got increased activity and engagement – it got people talking and to open up about their health issues.

This can help us lead them, for instance, into our smoking cessation program. We have what has been clinically proven to be one of the best smoking cessation programs in the country. I’ll put it up against any company. The point is meeting people where they are.

Ruth, UTA: I think the number one thing we have done at UTA is to set out to intentionally dispel the stigma against asking for help or needing to talk about a struggle with abuse or addiction. There are external platforms out there that we could have used to provide counseling sessions, but we had a high-ranking employee who offered to chair these sessions.

She said, “I’m not a doctor, but I want people to be okay with coming in and talking.” They are now seven sessions in. It is amazing to see the number of employees that have actually gone beyond the sessions and are now getting personal therapy.

Dave, Optum: When you meet people where they are, they feel trusted.

They feel like they can trust you. It is different for everybody. Employers for a long time have really wanted to say, “let me just take care of this one issue that addresses my entire population. I can check this box and not think about it again.” It is very clear that doesn’t work, because as good as technology is, as good as all the tools are, they are tools – but it takes someone to meet you where you are and navigate you to the right tool. You’re not a runner? Okay. You’re 300 pounds, an accountant, and you don’t ever move from your desk? Well, let’s walk you through the cafe, and let’s start with food. It is going to be different for everybody.

When you identify what the issue is, then there are great tools like the Spartan app or some of the other programs that are out there that are backups to that personal interaction to keep somebody engaged. We have a great example. Our health promotion advocate and coach was at a meeting with a client when someone approached her and said, “My child is addicted to opiates and I don’t know what to do.” She immediately got this person connected to the employee assistance program for their client, then used that as an opportunity to create an entire program to address this issue proactively for that employer. We discovered that this was a pretty widespread issue and that it wasn’t as readily apparent because it was most visible in the dependent population and not the worker population. To my point earlier, don’t think that these people don’t come in to work and only think about that issue all day. So, it is creating that safe environment with those personal interactions that then opens the doorway to all the other things that the well-being industry can do for your employees.

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Heida, Rakuten: I totally agree that tailoring programs to the unique needs and personalities of employees is a critical part of a successful wellness program. We do send a survey to the employees at the end of the year to obtain their feedback on our Karma initiatives. The feedback is mostly about more activities, therefore we work on incorporating more activities at our events. The activity is our focus. The food and drinks are a bonus. The activities consist of escape rooms, paint nights, casino nights, karaoke, top golf, bowling and any other themes that involve physical activity. It is not only about drinking and food. We are providing the employees with the events that they are asking for based on the survey feedback.

Brad, VARIDESK: What we are talking about is culture, at the end of the day. We are talking about building culture at the organization that supports these different initiatives. If you take a look at management research, it will tell you that people at work will typically do what they are encouraged to do or what they are rewarded to do. We have to begin to recognize and reward these behaviors and activities inside the workplace. Eric, you were talking about the problem with having remote workers. You have to reward people for coming to the office. Not only do you have to build an office that people want to come to, but you actually have to encourage them to do so and reward that behavior. Again, people do what they are rewarded to do. If they want to become a partner, how do they do that? They show up. They interact. That is basic management research that is pretty well understood.

As we take a look at it, building this culture of rewarding good behaviors, rewarding wellness, rewarding people to take the steps, rewarding people who come in and talk about their issues, leads to a whole culture change, and that is really at the heart of what we are doing.

Having been to SPARTAN’s offices in Boston, there is a culture of leadership there that encourages someone who is going upstairs to grab one of the kettlebells and take it upstairs with them. I was terrified when I went there, because I wasn’t sure I could make it up the stairs with a kettlebell, but you had a light one. So I appreciate that.

When we see leadership doing these things, when we reward those things for everyone else in the organization, we begin to see the culture change. It is the exact same thing with vacation time. If my CEO never takes a vacation, I’m never going to take a vacation. If my CEO says, you know what? I take all my vacation days and makes a point of discussing it, other people will take their vacation days too.

Eric, Paul, Weiss: How crazy is it that you have to force people to use their vacation days? Our attorneys have a significant number of vacation days but they don’t use them. We need to do a better job encouraging our attorneys to disconnect from the office and technology. It is important for their mental health and well-being.

Ruth, UTA: The studies actually show that when you go from a fixed paid-time-off policy to a discretionary time-off policy, employees use less days. A responsible employer should find ways to encourage employees to take time off and achieve work/life balance. I think it goes back to the culture and what leadership models. For example, when we do open enrollment, your whole family can come. Open enrollment decisions should be made by the family, so we let the family come. Why shouldn’t your partner be in the room to talk to the benefits person?

New York State has a law that says you must take a lunch break.

Your hourly employees must take a lunch break. Employees will not take lunch if their boss doesn’t take lunch. It is just how I think people are wired, and it is fascinating. When I started, I thought it was the law so it required compliance. Then I realized, “compliance what?” It is culture, and if there is a culture where we plan a meeting at lunchtime, then I’m telling you that this is a culture where we don’t take lunch.

We must think about the messages we are sending and whether it is actually the message we want to send. Our CEO chose reading as a way to combat this. He said, “On your break, everybody read a book, and then e-mail me what the book was.” Everyone was like, okay, we are going to read because it came from the top down.

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I would say for anybody on this panel or in this room, if it is a personally important thing to you to make your workforce healthy, if your CEO doesn’t believe in that, you need to leave and find another job because you won’t succeed. You just won’t.

It must come from the top down.

- Dave, Optum

Dave, Optum: That’s really important. I would say for anybody on this panel or in this room, if it is a personally important thing to you to make your workforce healthy, if your CEO doesn’t believe in that, you need to leave and find another job because you won’t succeed. You just won’t. It must come from the top down.

David, LEADERS: Richard, you come from a different vantage point, where this isn’t what you are focused on day-to-day in your role. Is this something on the forefront of your mind when you look at Hudson Bay as a whole and for the CEOs running the different brands? Do you see a growing recognition that this is something that is not only good for your employees and for retaining talent, but that it also has a positive impact on the bottom line?

Richard, Hudson Bay: This is very interesting and important. I’m listening. From where I sit, everything you are saying is perfectly logical. I get it, but it feels so aspirational and so hard to get there. We have 65,000 people in different countries under different banners. So imagine this: a large percentage of the workforce in Saks, Lord & Taylor, Saks on Fifth, or Hudson Bay, are hourly employees. They are part time, and the turnover is around 45 percent. This is daunting. For those who would get started in any of these programs, half of them may not be there in a year.

I appreciate everything being said, and maybe in our case we need to start with our corporate people who are looked at differently than the store associates. With healthcare costs going up so dramatically, we cut some things two years ago which was a mistake. We thought we were saving money, but it really hurt the basic services we were giving our corporate people. It is hard. It is a challenge. It is a real challenge.

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The problem that is overwhelming healthcare is that we haven’t been successful at getting people healthy, getting them to lose weight, and then sustaining their well-being.

These are very complex problems which will require unique and different partnerships that we haven’t thought of before to address.

-Joe, Northwell

Joe, Northwell: The problem that is overwhelming healthcare is that we haven’t been successful at getting people healthy, getting them to lose weight, and then sustaining their well-being. Obviously, I’m a little biased here, but these are very complex problems which will require unique and different partnerships that we haven’t thought of before to address. That is why you are seeing the articles come out almost on a weekly basis on Walmart partnering with Ochsners, and General Motors partnering with Henry Ford Clinics and many others. These joint ventures are intended to address these complex issues.

We just inked a partnership with Canyon Ranch to really focus on the burnout issue that we are experiencing within healthcare providers.

We don’t have all the answers in healthcare, I will tell you, but we have historically done a really good job of treating people when they are ill.

The question now is how do we pivot toward getting the communities that we live in, work in, and that we support to be healthier by what we offer to the community? That is something that, unequivocally, we will have to do with partners.

When it comes to all of these different topics we’ve been talking about today, whether it is burnout, whether it is food and nutrition, whether it is ergonomics – and people’s well-being is inclusive of all these topics – it will absolutely require partners. As different industries, we are just not equipped to handle all these things alone. So I think that’s where we, as leaders, need to think differently about how we begin to approach this complex problem.

Dave, Optum: There’s a thread there I just want to pull out a little bit, which is that I run a business. If I need to do some banking, I don’t go in a conference room and figure out how to open a bank and then bank there. That’s not what I do, right? But for some reason when it comes to wellness, every business thinks they can sit down in a room and figure out what wellness is. You can’t. You need a partner. You need someone who can draw on the experience of having hundreds of wellness clients all having unique environments. It doesn’t have to be Optum, but you have to find some help.

The problem with wellness over the last 20 years is that it has always been something that has been on the side of a few people’s desks. It needs to be somebody’s only job. In your environment, you have to hire 72 LEADERS

somebody, either through a partner or directly, who is going to design a wellness strategy that is going to involve a wellness champion network, that is going to have some regional support that can get out and actually drum up some support for your stores or offices. They will then need to get people engaged and motivated and find those champions in those remote workforces that can engage each of those places and start to drive them into community events at SPARTAN or other fitness events. You are not necessarily going to be able to have services on site per se, but you should have someone who can tell that population where to go for activities. It is remarkable to me, having been in professional services for so long and now, being in professional services in this space, that everybody thinks they can figure this out on their own. That would be very challenging.

Lara, SPARTAN: From my perspective, this just goes back to the overarching, larger issue of humanity’s difficulty in ever asking for help. As human beings, it seems like we have a difficult time saying, “I don’t know the answer,” which is a really simple thing to say, but we have a hard time saying it. I think this is one of the reasons that SPARTAN has come out with this new app that touches on the five pillars of health because we feel, as the largest endurance company in the world, we have something to offer.

I think that if we open our eyes more to what we can gain from experts in the field, I think the solutions will be more easy than they are complex. Like Brad recommended – just the idea of not having a waste basket at every desk. When Brad said that to me earlier when we were starting, I thought, why have I not thought of that? That is such an easy solution to get people moving, but we are sometimes stuck in what we think most about and what we are most comfortable with. I do think as organizations, if you don’t have the answer, it is worth opening up your eyes and looking for who you can go to that knows more than you, because there are those that do. We just have to acknowledge that we don’t know everything.

Ruth, UTA: I would add to that, though, that I think for Richard and others from companies where it has to translate, you have to find a partner that is going to talk in a language that resonates with your community.

There is absolutely a good business model to be found for it.

We did partner with an insurance company that gave our employees a financial reward for doing biometric screenings and other wellness checks. What did we find? That reward money funded most of their wellness and copays for the year, so there was a savings for the employee. We saw attendance increase and all of those tangible data numbers resonate in certain communities. Go for it, because the data is actually there.

I think it is all about partnering with someone who is going to speak the language that resonates within your world. Although we are in entertainment, people always want to see the numbers, but it is amazing how when you sit down, examine them and see how they all link together, a strategy comes out of it.

A lot of employees are stressed out about finances, but when they leave you to go work somewhere else and get more money, they are still stressed about finances. If you start working on programs that will help address financial wellness, beyond a 401(k) savings plan, it can make a difference. This year, we began subsidizing student loans, which helped employees who don’t earn a whole lot of money but have student loans weighing on their minds. These are the types of things where you can see an investment return and all of the data is there to support this.

I think the right partner will help you see how that all works together.

Eric, Paul, Weiss: I think a very important aspect of this is education and training internally. The people who you work with for 12 to 14 hours every single day; in some cases, they may understand what the signs are and what the issues are with their coworkers, but they may not understand when it is necessary to elevate an issue.

We had a recent issue where somebody had an incident on the operations staff relating to alcohol abuse. We approached this individual’s coworkers and said, “Were you aware of what was going on?” “Well, maybe. Wasn’t too sure.” But the biggest issue that they communicated to us was that they knew there was something wrong, but they didn’t want to get their colleague in trouble. But that intervention could have been a very significant event for this individual who, unfortunately, was just unable to deal with particular aspects of their life without help.

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Most companies bring in people periodically for the one-hour session and then kind of check the box. I think there needs to be more of an iterative process. Very frankly, even for someone who sits in my position, we are just starting this process. We are having people come in from the outside in the next month to give us training in this area.

I feel it is extraordinarily important for me to really understand what the warning signs are and to be able to deal with these particular issues going forward, and I wonder what others are doing. Joe had mentioned Canyon Ranch and other things were brought up, but are there things that organizations are doing internally to keep this top-of-mind as it relates to training and education?

Dave, Optum: I don’t think organizations are doing enough. This is a hard thing to change culturally. I think the smarter organizations are doing some of the things we have discussed here to create a place and a culture where it is okay to have those conversations. It is okay to be an attorney and talk about work/life balance. It is okay to be an attorney and talk about the fact that I don’t feel like having a drink tonight, even though we have a cocktail party or client engagement.

We have to create that culture where it is okay to challenge the status quo. Then you can start to create some programming that can actually be valuable. But if you put in the programming and don’t create that culture, nobody will access the program, because nobody wants to be seen going down that hallway. This requires that you fix the culture first. Then, to your point, you have to find partners who don’t come in with a cookiecutter approach, but who can come in with an approach to understand your unique workforce and how specifically to help you.

We have clients, for example, that are banks, that are technology firms, that are in the entertainment industry, and that are law firms and hedge funds. The way I think about it is that we have a set of capabilities.

The ingredients are almost always the same, or more-or-less the same, but sometimes we make meatballs and sometimes we make meatloaf and the presentation of the ingredients is different. The program that exists at our largest technology client and our largest banking client is essentially the same, but at my technology client it is being delivered by people with gauges in their ears and tattoos up their arms. In our financial client, people are at the front desk wearing blue button-downs, so they exist in very different environments. The internal marketing is very different.

That’s the most important thing – whether you do it on your own or find partners, you have to talk your employees’ language.

Joe, Northwell: We haven’t spent a lot of time talking about food and nutrition, but we believe it is the beginning, the middle and the end of any good well-being program. We have close to 28 teaching kitchens around our organization at various facilities. Everyone is always in a rush, but they need help to know how to cook healthy, whether or not to count calories, and how to create a healthy pantry. Giving people real life tools that they can take with them makes those teaching kitchens valuable tools. We’re creating an area where people come together either after work or sometimes during work.

Joe, SPARTAN: How are you able to build the kitchens in the facilities?

Joe, Northwell: We have a large kitchen in every hospital. In some places, we are able to utilize those kitchens in certain times of the day.

We actually have a Michelin-graded chef who oversees all our chefs and we change the menus at our hospitals. The food is dramatically different at Northwell than at any other hospital experience, because we believe that actual chicken broth should be real chicken broth, not something that comes in a plastic bag, and it should be made with chicken.

The point being, we use our kitchens in our hospitals, but we have also built standalone kitchens in our corporate areas. We have built them in physician practices where we are also trying to teach our patients how to deal with severe diabetes, obesity, etc. So we are a little bit different in that sense, in that we have a need for these kitchens no matter what, but then putting them in the right places so that people can actually access them and giving them time to do so, makes a great difference. It just takes that leadership to put the money where you need it.

fair in office option consists of a chiropractor, dentist, back/hand massages, nutritionist, gym representative, yoga instructor and a free healthy lunch. This is a nice and simple way to bring wellness awareness to your employees at no cost. We are even considering having doctors in the office to provide employees with 30-minute physical exams which are covered by the employees’ insurance.

Joe, SPARTAN: That should be the no-brainer of all time. I have 1,500 people in one complex. We should have at least one doctor there at least five days a week so if you have just a cold or other minor illness, you don’t have to go and waste time at a clinic.

Joe, Northwell: We are currently working in this direct-to-employer space with sizable companies where we are working on an onsite clinic.

Whether that’s achieved through a doctor, an advanced clinical provider, a nurse practitioner or PA, these are absolutely doable. Once again, this could be daunting if you try do it on your own, whether you are talking about the buildout of that space, finding that particular physician who is willing to do this, the state regulations which, in New York, is certainly an interesting thing, and then medical liability, etc.

Even if you could handle all of this, you are going to want the connectivity to subspecialists such as endocrinologists, rheumatologists, behavioral health doctors and so on. A number of big healthcare systems are really interested in getting into this space so they will be able to provide wellness in a different way and we certainly have the means to do so.

Ruth, UTA: I always feel for people who feel like it is so daunting because it has to be this big-ticket item. I have had several experiences where those free health screenings have triggered some report, some anomaly, that sent someone for further care. My mother worked at Equitable, where they had a complete clinic on site every day with a doctor and a nurse but, again, each diagnosis usually required further screening.

Employers who are not yet ready to go all the way there could start today with some free resources.

This starts by making the conversation about health an okay conversation to have. Employees have to know that is okay to go to get checked out and, guess what, legally, I’m not supposed to call you at home if you are on medical leave. Enforce that culture that says, “No, you can’t call her. Let her rest.”

I think a very important aspect of this is education and training internally.

The people who you work with for 12 to 14 hours every single day; in some cases, they may understand what the signs are and what the issues are with their coworkers, but they may not understand when it is necessary to elevate an issue.

-Eric, Paul, Wiess

Heida, Rakuten: I would like to add that there are also free services available that we can partner to provide to the employees. For example, we coordinate one to two free in-office health fairs. The health VOLUME 42, NUMBER 3

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A couple months ago I sent out an “if you are sick stay home” e-mail while coughing at my desk. When I sent out the e-mail, my assistant came in and said, “So, are you going home now?” I had to sit there and say, “You know what? You’re right. I am going home, because I must model this for everyone.”

Dave, Optum: It is interesting, because all different industries and all different workforces have their unique challenges. I think a couple things are at play. First, and all ages and all demographics will respond to this – it is just how you approach them. You have to approach them in the right way. So we don’t approach our millennial population or employers who have them in the same way we approach our insurance companies, whose average age is much older. It is a very different population. So you have to drive the right approach.

The second thing, and this ties in directly to what we are doing with SPARTAN, is that we are not going to fix all the cultures. There are going to be bad cultures out there, and you will have a job in one of them someday. So how do we help those workforces be more resilient to those challenges that we face? How do we help you go into work every day and, along the way, decide if that job is your true north, that it is where you really want to be, and if it is getting you to what you want out of life?

Maybe it is. Maybe it is a necessary stepping stone. But if that is the case, then how do we get you to a place where you can be resilient to what is going on around you and still perform, and still retain your sense of self, your sense of community, and your personal well-being, both physically and emotionally?

That also leads me to another point on clinics. I think every fullyrealized wellness solution should have an on-site clinic at a certain population size, but that is daunting. It is actually the hardest thing to set up on site, although there are things that others on this panel know a lot more about than I do. I think employers naturally gravitate towards this

You recognize that a woman in an industry should not have to choose between her life and her career. We look at how we could become more innovative in solving this. As a result, we have developed family planning benefits like I have never seen at another company…We keep digging deeper into why we are losing people and addressing the issues we find.

-Ruth, UTA

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because it is a very easy thing to say. I want that in my office, because doctors make people healthy.

You don’t always have to start with the big clinic, with the big capital investment, with the big footprint, or with the big real estate space. You can start with a wellness coach or a health promotion professional who can create a relationship with Northwell, for example, or for a smaller population that isn’t ready for that full-blown clinic yet, with another resource in the area. I want employers to realize that it doesn’t always have to be a full-blown medical solution, even though in a lot of cases that is really beneficial.

The other thing, regardless of whether you do this yourself or if you have singular or multiple vendors, is to make everyone work together. It doesn’t do any good if Optum is running a fitness center and Northwell is running the clinic and we don’t connect. If Northwell doesn’t say here’s your biometric data, let me walk you over and introduce you to your new health coach and vice-versa. If we have a fitness interaction with somebody and they pass out because they didn’t eat that morning – which happens all the time - we then should be walking them over to the clinic for treatment. If there is a physical therapist there and we notice a movement pattern that is broken and is beyond what we can fix, we need to be that connective tissue to get them to physical therapy. You have to make sure that the people that are servicing your employees have that connective tissue in place. That is your job as the employer.

Ruth, UTA: As an employer, we sit every year and go through exit data to evaluate what the reasons are that we are losing people and we let that set the strategy for what our next initiative needs to be.

We are in entertainment. We started what we call the Opportunity Fund – the UTA Opportunity Fund. If you are here in New York, but really, really want to work in film, you have to go to LA. The reality is that not every person can afford to make that move on their own, so we started the Opportunity Fund. The Opportunity Fund represents a powerful joint commitment to help our own and “pay it forward.” The Fund was seeded by UTA and then grew through UTA employee contributions.

We all have a stake in seeing our colleagues succeed.

You don’t want to lose people for things that you can fix. If you looked at what makes someone want to pick us as their “employer of choice,” you recognize that a woman in an industry should not have to choose between her life and her career. We looked at how we could become more innovative in solving this. As a result, we have developed family planning benefits like I have never seen at another company. We have extended gender neutral parental leave. New moms can bring their baby and another adult with them on a business trip. We will even help pay to freeze their eggs. We keep digging deeper into why we are losing people and addressing the issues we find.

This helps us meet the needs of people early in their career as well as later in their career. I think it is good when you, as a company, can start looking at what the actual problems are, because the problem at my company is going to be very different than the problem at another company.

Joe, Northwell: Northwell team members’ average age is 45 and our average tenure is nine-and-a-half years. When people join us, they tend to stay with us for a while. Our turnover rate 12 months running is 8.9.

Nursing has been viewed as one of the top five most difficult jobs across industry because of the lifting, the strenuous nature of it, and the stress.

Let’s stay on stress for a second as a critical issue within well-being.

Stress for someone at your phase of life is going to be very different from the stress of a 60-year-old who is worrying about whether they have enough for retirement or not. The HR department of any company has to think about how they are meeting people where they are on their particular part of the life journey. That is a big part of how organizations need to continue to adjust and evolve their models, whether it is freezing eggs, whether it is making sure retirement plans are right, or whether it is making sure people understand what is in their retirement plan when they are in their 40s and 50s so that they are prepared in their 60s. That is how you develop the culture of an organization by really understanding each individual’s problems. You are only going to understand those problems if you are willing to ask the employees through the surveys that you do and then act upon them year in and year out. As an HR person, I would say that you have to challenge your HR department to do that every day and then put the pressure on them because, quite frankly, that’s what they’re there for.

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Lara, SPARTAN: I agree, and I think one of the most discouraging things is when, at organizations where they do exit interviews and people keep saying the same thing, nothing happens. It just erodes the trust of the organization. Again, you feel that reverberate in the fiber of your being.

Dave, Optum: Asking and not acting is worse than not asking. I would also add to that, guess what? Everybody in your workforce already knows they need to move more, eat better, and sleep better.

This is not a knowledge problem. We are bombarded all day long with messaging about this. So why aren’t they? Because they have some other kind of problem.

Until you get to the root cause of what is preventing them from engaging in their own well-being, they will not engage in fitness, as an example. Don’t bring the doctor on site. They won’t visit. Optum On-Site, as an example, has a predominantly female workforce of childbearing age, and this is a big issue. So we have to become a great place for women to work, and we have to identify the unique barriers to engagement for our workforce and try and help them overcome those barriers. Only then might they engage in their own well-being. That will be different for you and your law firm, Eric, because your population’s barriers are different.

I just encourage people to take an active look at your employee base and stop thinking about wellness for a minute and start thinking about, “what are my employees’ problems?” For better or worse, you own the healthcare system in the United States. You own it. You don’t run it, but if we all stop paying, Optum goes out of business. Northwell goes out of business. Employers own the healthcare system.

To talk about food for a second, at your workplace, you also own the food system. We have hundreds of clients that we serve on site and only four of them subsidize healthy food. If you subsidize healthy food, that is what people will eat. So you have to put some skin in this game as employers to really change behavior.

David, LEADERS: Everyone has acknowledged that culture is important.

What attributes, beyond just culture, are important?

For me, just in closing and hearing what everyone’s saying, one word that hasn’t been used today but is huge is fear – the fear of employees having to ask for help or to get what they need, but also the fear of the employer that if they give their employees freedom, they will run too far with it…My hope is that each of us takes at least one thing and does something with it.

-Lara, SPARTAN

Dave, Optum: C-Suite ownership, 100 percent. That is why I said earlier that if this is personally important to you and you are not working for a C-Suite that sees the value in this, unless you think you have a reasonable shot at changing their mind, which you probably don’t, you need to leave and find a place where you can do what’s personally important to you.

Brad, VARIDESK: Last year, we hired the former chief people officer from Southwest Airlines. He’s our COO and President. If you know anything about Southwest, their culture is magnificent. What he says, that I think is fascinating, is that you can work in an office and know people’s names, but if you work in a transparent office, you know the people.

You have to know individuals. You have to know not just that Jill deals with our accounting issues; you have to know that Jill has two kids at home and that she is a single mom so holidays and things like that are difficult on Jill.

Our CEO talks about this a lot. It is the leadership of the organization that has to drive this, because you typically mimic what your leaders do.

The reason you stay at the office through lunch is because the person you work for stays at the office through lunch. If that person went to lunch, you would go to lunch.

Again, we mimic those behaviors because we feel that is what is being rewarded. You have to change that whole mindset from the notion that we are going to reward people for staying at work 12 hours a day and not taking a break to we will reward healthy behaviors. When we start doing that, we will see the systems and the cultures change. That’s just basic data, basic science.

Ruth, UTA: I think the other thing I would add to that is as a company, do the right thing for the right reason. Otherwise you will have no trust from your employees. I’ve had a lot of people criticize the “Facebook model,” where employers were having these huge campuses and were providing everything. Then the question came in, are you really doing this because you care about me or do you just want me to be here all the time?

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I believe that part of the strategy is to always intentionally make sure that we are messaging that we are doing the right things for the right reasons. At the same time, we were revamping all our parenting benefits, we were smack dab in the middle of #TimesUp and #MeToo. We had to make sure people knew the changes we were making were because we cared about females, not because it was a hashtag thing. If employees, especially younger workers, feel that there is a lack of authenticity and sincerity in whatever program you are rolling out, you will not get engagement.

Lara, SPARTAN: For me, just in closing and hearing what everyone’s saying, one word that hasn’t been used today but is huge is fear – the fear of employees having to ask for help or to get what they need, but also the fear of the employer that if they give their employees freedom, they will run too far with it. I always say to my clients in therapy, you only have 50 minutes with me, so go take what we have talked about today and use it in your life.

I would encourage all of us that are here in this room to really think about today and what we are going to do with this information. If it just stays in this room, it doesn’t help. We are not helping humanity as much as we can. So I would encourage everybody really to think about what is the one thing they learned today that they can start to do in their own workplace. To me, that is really important. How can we move forward?

What can we do next? This has been an unbelievably robust conversation, and so many amazing things have been discussed. My hope is that each of us takes at least one thing and does something with it.

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INCINNATI

Cincinnati’s Resurgence An Interview with The Honorable John Cranley, Mayor of Cincinnati EDITORS’ NOTE John Cranley is the city. There have been a number of stories 69th and current mayor of Cincinnati, in the national media ranking Cincinnati Ohio. Under his leadership, Cincinnati as the second-best place in America to continues to make huge strides do business and a great place to raise towards equality for all. Cincinnati your family. has been recognized as one of the So, I think it is all trending in the nation’s most immigrant-friendly citright direction. ies, ranking 18th, and for the fifth What have been the keys to year in a row received a perfect score Cincinnati’s economic revitalization? on the Municipal Equality Index by Throughout the 18 years I’ve spent the Human Rights Campaign. Mayor in both the public and private sectors, we Cranley created the City’s first Office have grappled with improving race relaThe Hon. John Cranley of Economic Inclusion & Minority tions in the city, and police-community Contracting, aimed at increasing relations in particular. They are not perthe number of minority firms awarded city con- fect, but we have made real progress and I think tracts. In its first year of operation, the department that was a predicate to our economic revitalization. increased spending with minority-owned businesses from $4 million dollars to $11 million dollars.

Mayor Cranley’s top priorities include jobs, safety, inclusion, reducing poverty, improving neighborhoods and protecting the environment. Since taking office in late 2013, he has helped bring more than 6,100 new jobs to Cincinnati; added officers to the street which has led to lower crime; added firefighters which effectively ended “brownouts” in the Fire Department; resolved the city’s pension crisis; approved a multiyear plan to repave and repair deteriorating roads; implemented a major anti-poverty program, the Hand Up Initiative; and is leading an effort to invest in solar energy to reduce the city’s carbon footprint. Citywide emissions are down 18 percent, and the city is close to breaking ground on a 25-megawatt solar project to reduce Cincinnati’s carbon footprint. Recently, the city was awarded an American Cities Climate Challenge grant. In 2002, Mayor Cranley co-founded the Ohio Innocence Project, an organization that has exonerated and freed 28 wrongfully convicted people through the use of DNA technology. He has also worked as a In addition, our public/private partnership is a real estate developer and attorney. Mayor Cranley model for the country. We have a nonprofit develearned degrees from John Carroll University, opment corporation called 3CDC, which stands for Harvard Law School and Harvard Divinity School. Cincinnati Center City Development Corporation, which is funded by our Fortune 500 companies and Do you feel that the transformation of other stakeholders. It was well-funded and bought Cincinnati and its strength from both a busi- up a lot of land in the worst of the recession with ness and a work/life balance perspective is private dollars. We then provided public dollars on well understood today? a variety of projects, although our public dollars The perception is moving in a positive direc- have been leveraged 10 to one by private dollars. tion. A couple of years ago I was talking to David This has literally led to billions of dollars of reinTaylor, the CEO of Procter and Gamble. He told vestment in our urban core, and that has dramatime that he was at a retreat with major Fortune cally changed the perception of our city. It enticed 500 CEOs and a number of them discussed how companies that might have moved elsewhere to be Cincinnati had really gotten its vibe back, and that excited about Cincinnati and their opportunities for they were really impressed by the changes in the recruiting talent to this area.

There have been a number of stories in the national media ranking Cincinnati as the second-best place in America to do business and a great place to raise your family.

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There is a real virtuous circle of positivity that has come from those public/private partnerships.

There are many other things that have also been done, but those are the two big moves that I think have had the biggest impact.

Will you discuss the Hand Up Initiative created to address poverty issues?

The idea of expanding opportunity to those for whom it might have been limited before is the moral challenge of my life in public service. It is very important to judge whether our growth is good for everyone or only for those who already have a lot. The Hand Up Initiative is part of trying to make the expansion of opportunity a reality through a mix of job readiness and job training programs. We have had good success and are ramping up that effort now with a broader public/private partnership that expands on this idea with a child poverty focus.

Will you highlight your efforts in Cincinnati to protect the environment?

A real alarm went off for me when President Trump pulled out of the Paris Climate Accord, which I strongly disagreed with, but it did remind me that there is still a lot that we can do at the local level.

Twenty years ago, the fully amortized cost of solar was about 26 cents a kilowatt/hour and it is about six cents a kilowatt/hour today. So, the city of Cincinnati is replacing the energy sources that are more expensive than solar with a 25-megawatt solar project. Even with the best results, it will take time to generate returns on this. However, by the time we get done replacing that batch of energy, the next wave of solar will be even cheaper and we can add more solar energy into our energy portfolio.

How does the gridlock in Washinton, D.C. impact the ability to drive change?

Washington is a real problem and it has only gotten worse under this current administration. The impact that this is having on people’s lives are what we deal with at the local level. We can’t afford to fix major highway systems and bridges like the Brent Spence Bridge in Cincinnati without help from the federal government. The federal government takes 35 percent of higher income wages, where we only take two percent. They are dealing with a lot more money on a per capita basis for federal initiatives, yet people are most concerned about the police, fire protection, garbage collection, road paving, and parks and recreation that we provide locally.

If Washington took the time to better understand how they affect everyday lives, maybe it would be less dysfunctional.

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VOLUME 42, NUMBER 3

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

INCINNATI

Committed to Cincinnati An Interview with John F. Barrett, Chairman, President and Chief Executive Officer, Western & Southern Financial Group EDITORS’ NOTE John Barrett has now it is probably the largest processerved as President since 1989, sor of securities in the world. I became Chief Executive Officer since 1994 a really good friend of the CEO who and Chairman since 2002. He is a led that change. He was very genermember of the board of directors of ous to me as a young employee. I was Cintas Corporation, a past two-term able to watch how he changed the culChairman of the Ohio Business ture and the company and knew that Roundtable, and Co-Chairman of I would love to do the same thing if I The Greater Cincinnati Scholarship ever had the chance, with one caveat: Association. In Washington, D.C., I was going to go for top-notch quality he is a director and past Chairman in everything we do, not just the most of the American Council of Life profitable options. If you build a really John F. Barrett Insurers, a member of The Business great company, the earnings will be Roundtable and a trustee for first rate because of it.

Americans for the Arts. He is also a member of With the impact of technology on the busithe Board of Overseers for the Hoover Institute ness, do you still define Western & Southern at Stanford University. He holds a bachelor’s as a people business? degree in business administration from the It is still a people business, but the peoUniversity of Cincinnati. Over the years, Barrett ple need the tools. Today, people can do has served on the following corporate boards: more than they have ever been able to do, The Andersons (Toledo, Ohio), Cincinnati Bell, so we’re trying to be really sensible. We are Convergys Corporation, Fifth Third Bank and trying to figure out what we can do more Touchstone Securities. expeditiously than we have in the past. We continue to use standards like return on assets COMPANY BRIEF Wester n & Souther n and operating income per full-time equivalent Financial Group (westernsouthern.com) is a employee because these are good measures Cincinnati-based diversified family of finan- of efficiency. cial services companies with assets, owned and Last December, we concluded a 25-year managed, of $80 billion. Western & Southern is quest to acquire Gerber Life Insurance Company one of the strongest life insurance groups in the from Nestlé S.A., which brought 2.3 million world with $10 billion in capital. Over the last clients and 3.6 million policies to our family of 30 years, it has grown from a $5 billion regional companies. Fifty-nine percent of Gerber Life’s life insurance company into a highly-respected business is direct to consumer, making them national financial services enterprise. number one by far in the industry. With Gerber Life onboard, we will be able to further serve How critical is culture when you look at the middle market without having to add too the strength and leadership of Western & many people.

Southern Financial Group?

Today, we have about 97,000 financial proCulture is extremely critical. It is the most fessionals licensed to sell our solutions in the important pillar of our entire company. Our United States. When I joined our company, we six pillars are Culture, Capital, Competent had about 2,800. (people), Client Focus, Change (ability to adapt Was cultural fit essential with the Gerber to it), and Challenge (to individually get bet- Life acquisition? ter every day). We adhere to these pillars To show how important it was, we were religiously. substantially outbid by at least one other very We also have a very stable, tenured high-quality company, but the Gerber manmanagement team. We have only had eight agement team and Nestlé’s senior managePresidents in 131 years. I have been President ment selected us because of our culture. They for 30 of those years. That really helps as far as thought we would be the ideal place for their stability is concerned. associates, their 2.3 million customers and the There are companies that need to go Gerber brand for financial services. We were through a change. I spent 16 years at Bank of granted a 30-year right to use the Gerber name New York. We went through a dynamic change and iconic baby logo. Our unique culture is there. At one time it was an old trust bank, and what gave us the edge.

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Western & Southern commits substantial time and resources to the city of Cincinnati. Do you view giving back to the community as a responsibility for leading companies today?

Cincinnati is where we are based, and we want it to be a strong city. When I returned 32 years ago, it was a tired city that seemingly stopped thinking about the future the way that I thought it should. The view of city leaders seemed to be that if we grow too much we’ll just face bigger problems. Some of the companies that had traditionally led the city had globalized and their interests covered the globe. Others would rather have somebody else improve it and not be as involved directly. We wanted to have a city where we can attract the best people possible, so we decided to lead the effort, and we have. The efforts of my colleagues have really improved the city and people love what is happening.

Will you discuss how you prioritize these efforts and the areas where Western & Southern has been able to make the most impact in Cincinnati?

Let’s start with real estate because it is so visible. Our work has certainly enhanced the entire downtown. First, we started with the toughest neighborhood in the early 1990s, which is right next to our largest corporate headquarters (Kroger) and now the hottest area within several hundred miles. When young people move to Cincinnati, Over-the-Rhine (OTR) is where they want to live. It is a short walk to the center of downtown.

OTR is an old German area of Cincinnati where the houses are of Italianate architecture and many of them needed to be renovated, which is now happening on a grand scale. At one time many thousands of people lived there. Back in the 1800s, many immigrants from Europe, who came with nothing, settled in this crowded neighborhood. They were typically German or Irish, and they wanted to work to improve their lot in life so they came here and settled in this neighborhood.

Our goal was to fix it up and make it a cool area. Our head of real estate and I had both spent considerable time in New York at the Bank of New York. We both worked in Lower Manhattan.

We decided to try to bring that vibe here.

We started with new, top-quality low-income housing. Then one thing led to another, and people became attracted to living in a cheaper area that was up-and-coming. It just fosters good activity.

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We wanted to have a city where we can attract the best people possible, so we decided to lead the effort, and we have. The efforts of my colleagues have really improved the city and people love what is happening.

Cincinnati formed an entity called 3CDC, which I helped found and now serve on the executive committee. 3CDC has been able to find new market tax credit money to support its efforts. Western & Southern acquired a substantial amount of real estate in OTR and sold much, but not all, of it to 3CDC at cost so they could accelerate development activities in OTR. Then we focused on Fourth Street in downtown where we renovated and repurposed several historically significant but deteriorating buildings and built the finest office building in the area in the midst of the financial crisis. It has become the Great American Insurance Company headquarters. We have some space in it, but Great American occupies 60 percent of the building. Two major law firms have another 30 percent, while smaller tenants round it out.

The building is entirely full. It’s beautiful and 665 feet tall. It led everybody to feel that the city is growing again. Many of our taller buildings were from earlier eras.

We also believed that if we were going to make Cincinnati really attractive, it had to have many of the underpinnings of the greatest cities, and we needed to energize it. So almost all of our Western & Southern senior officers serve on the boards of charitable or civic organizations. We give them the time to do this and we encourage it. If you want to attract good people, they want to come to a city that’s vibrant and active. We are well on our way toward accomplishing this.

Did the effort transforming Cincinnati require public-private partnership?

Yes, because there are tax advantaged situations that are not available to private companies, and you really need to have the government partnership. This doesn’t just benefit the politicians or partners or their competitors - everybody does better.

Is the story of Cincinnati’s transformation well understood?

I think you would be surprised at how many people who run Fortune 500 companies had a stint here earlier in their lives. They are amazed at how far we have come, even though they liked the city they left. It’s much more energized now, and this is not just because of Western & Southern. It has taken lots of people, business leaders and politicians alike. There is a very healthy environment that has been fostered along with a renewed pride in the city.

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The challenge is that we as a city can do so much more, so Western & Southern keeps pushing for more positive movement. This is an ideal place for some of the companies that are in very high tax environments to relocate to. Cincinnati really has it all. We punch way above our weight class when it comes to arts, entertainment and quality of life. In downtown Cincinnati, there are 10,000 restaurant seats available every night, and the food is excellent.

At one time, this was the fourth largest city in the country and, west of the Alleghenies, it was clearly the pre-eminent city back in the 1800s. We had and have a culture that would rival any city. We have to keep that momentum going.

The challenge is that we as a city can do so much more, so Western & Southern keeps pushing for more positive movement.

What do you tell young people about how dynamic and innovative the insurance industry is today?

We don’t have any problem recruiting high-quality talent. They get it because in a good insurance company, you have world-class investment people, world-class technology people, and world-class financial people. The industry attracts folks with those skillsets who are looking to further their own careers. At our company, we have developed the finest culture possible and it continues to get better as we continue to build the best capital position in the industry.

My own thinking is that if we out-dream, out-think, and out-work we will out-perform. I frequently tell colleagues at all levels that at the end of your career we want you to be able to say that you could not have enjoyed your work more, nor have done better, anywhere else.

What has maintained your deep passion for the industry for so many years?

Our industry is unique. It is the only one that can guarantee someone income for life and a death benefit. Almost everybody I know is now no longer part of a defined benefit plan, and social security was never meant to cover your entire retirement. Almost everybody I know worries about this, so it’s our job to get in front of them to let them know that we have solutions. I don’t call them products. They are solutions because they might solve a number of potential problems. The industry also encompasses the retirement world.

Is being a purpose-driven company critical to attracting top talent?

It certainly is, and that is one of the things I hear frequently from our people. Back when we started doing what we do, that wasn’t the primary reason. Now, people want to work for a company that is civically involved. I would not have anticipated that 15 years ago.

Do you take moments to celebrate the wins or are you always thinking about what is next?

I’m always moving on to what is next because I don’t want to live in the past. We work really hard to get something done, and I mentally move on quickly after that. Some might want to recognize and talk about the victories. I’m not wired to think that way. I’m always thinking about what’s next and what’s after that. There is so much more to do and time is short, plus, I find it fun to grow and improve; it is a blast.

•

LEADERS 79

Meeting the recruiting and hiring challenges that are changing the future of work

By Al Crook, Head of HR Business Partners Zurich North America

A1-112012150 04/19) 112012150_pages

In a job market with low unemployment and changing demographics, many industries – including insurance – are operating in a competitive environment in which hiring, training and retaining the talent we will need in the years ahead will become more challenging. Employee candidates can be much more selective about the opportunities they pursue, and even when hired are no longer afraid to move freely from one opportunity to another. Consider a recent survey by Robert Half that indicated 64 percent of workers today favor job-hopping, a margin that has increased 22 percent over the past four years.1 In addition to changing attitudes about employment, technology continues to inexorably transform how we work, where we work and how our work is being redefined at a faster pace than ever before. The global information economy is fundamentally altering the future of work. It has been predicted that smart machines could replace 1 in 3 jobs by the year 2025.2 A recent prediction from the World Economic Forum suggested that 7.1 million jobs may disappear by 2020.3 Demographic change is also dramatically impacting the future of work. By 2020, the Baby Boomers, Generation X and Millennials will collectively represent the greatest volume of those currently employed. But with the Boomers retiring at the rate of 10,000 people per day,4 over the next six years it’s projected that 75 percent of the global workforce will be Millennials,5 an age cohort with distinct views and attitudes about what they expect from workplace cultures and the values and visions of the companies they are part of.

With so much change, the challenges facing employers are complex and multifaceted, and are especially significant for the insurance industry.

According to a survey by The Hartford, only 4 percent of Millennials are actively focused on careers within the insurance industry.6 Participants in an Ernst & Young survey suggested that insurers will struggle to compete with industries perceived as more cutting edge, such as banking, technology and consulting, with the same report suggesting that the insurance sector is viewed by some as simply a profit-driven segment that makes money by denying claims.

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Our challenge is to convey a strong corporate sense of purpose and the ability of insurance employees to make positive impacts for the betterment of their communities. Today’s bright young people need to understand that when they become part of this industry, they are engaged in a businesses with a noble mission – one intended to help keep communities together and help individuals protect what they love in their times of greatest need.

Zurich’s expanding Employee Resource Groups also help to frame the importance of diversity and inclusion within the organization, and to provide a safe and supportive space for diverse groups and allies to grow and succeed together. These groups are an important part of what it means to be a Zurich employee. They organize incredible programming and all have professional development as a core element of their mission.

Employee engagement can deliver impacts in different ways. For example, Zurich’s Make the Difference Program helps us be more agile, responsive and innovative, all while giving multidisciplinary teams of employees across the organization the opportunity to come together to solve some of the biggest issues facing our business.

Becoming a leader in this space is not only the right thing to do, it is also a powerful approach for our culture, our brand and our prospects for hiring and retaining the talent we will need in the decades ahead.

Making job training a part of the organization’s DNA is also critical. This could include formal training options, as well as activities such as job rotations, tuition reimbursement programs and formal mentoring relationships.

Zurich’s Apprenticeship Program – the first of its kind in the U.S. – opened up a new pipeline of job opportunities for our company and the industry as a whole. The U.S. Department of Labor-certified program offers high school graduates, adults looking for a career change, returning veterans, recent college graduates and others the opportunity to enter the insurance field without incurring student loans.

We team with a local community college, offering full pay and benefits while apprentices rotate for two years in areas such as Claims and Underwriting, with subrotations in Marketing, Risk Engineering and other areas to better understand the broader insurance picture. At the program’s completion, apprentices will have: •

Employee candidates can be much more selective about the opportunities they pursue, and even when hired are no longer afraid to move freely from one opportunity to another.”

- Al Crook

Earned an Associate in Applied Science degree in Business Administration

• Earned the designation of a Department of Labor Certified Insurance Apprentice •

Developed key professional skills that will serve them well in their career

1. The Robert Half Blog. “Changing Jobs: Is It Good for Your Career to Do it Often?” 5 April 2018. www.roberthalf.com.

4. Friedberg, Barbara A. “Are We in a Baby Boomer Retirement Crisis?” 22 October 2018.

Investopedia.com.

2. Elkins, Kathleen. “Experts predict robots will take over 30% of our jobs by 2025 – and white-collar jobs aren’t immune.” 1 May 2015. Business Insider. www.businessinsider.com.

5. Economy, Peter. “The (Millennial) Workplace of the Future is Almost Here – These 3 Things Are About to Change Big Time.”15 January 2019. INC.com.

3. Cann, Oliver. “Five Million Jobs by 2020: The real challenge of the fourth industrial revolution.” World Economic Forum. 18 January 2016. www.weforum.org.

6. “Just 4 Percent of Millennials Say They Want Insurance Careers: The Hartford Survey.”

Carrier Management. 19 November 2015. www.carriermanagement.com.

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A NEW GENERATION IS

TRANSFORMING THE FUTURE OF WORK

Technology and demographic change are reshaping the workplaces of tomorrow From manufacturing and technology to insurance and finance, companies in many industries face intensifying competition in recruiting, training and retaining talent to drive results. New technologies, shifting demographics and changing employee expectations are forever reshaping the future of work.

BY 2025, SMART MACHINES COULD

REPLACE 1 IN 3 JOBS

1

BABY BOOMERS ARE RETIRING AT THE RATE OF

2 BILLION JOBS

WILL BE DISPLACED BY 2030 AS A RESULT OF TECHNOLOGY ADVANCES

10,000 PER DAY

2

1

10-14: THE NUMBER OF JOBS

THE AVERAGE COLLEGE SENIOR WILL HAVE BY AGE 38 1

BY 2025, 75 PERCENT OF THE GLOBAL WORKFORCE

WILL BE MILLENNIALS

3

EMPATHY NOW AMONG MOST CRITICAL LEADERSHIP ATTRIBUTES: 1

35%

35% of Millennials would switch to an empathetic company for equal pay

56%

56% would stay with a company 2012 - 2017 that empathizes with their needs

EMPLOYEES ARE 1.4X MORE ENGAGED AND 3X MORE LIKELY TO STAY 1 WITH AN ORGANIZATION WITH A GREATER SENSE OF PURPOSE 1. EY. “The Future of Work Now.” July 2018. www.ey.com.

2. Friedberg, Barbara A. “Are We in a Baby Boomer Retirement Crisis?”

22 October 2018. Investopedia.com.

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43% OF MILLENNIALS ENVISION LEAVING THEIR JOBS WITHIN 2 YEARS ONLY 28% SEEK TO STAY BEYOND FIVE YEARS

4

3. Economy, Peter. “The (Millennial) Workplace of the Future is Almost Here -- These 3 Things Are About to Change Big Time.” 15 January 2019. INC.com.

4. 2018 Deloitte Millennial Survey. Deloitte Touche Tohmatsu Limited. 2018. www.deloitte.com.

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Innovation is one of the keys to attracting the workforce talent of the future

By Brandon Fick, Chief Underwriting Officer Zurich North America In my role as leader of a key operational function for a major commercial insurance organization, I am very interested in the wide-ranging impact that radical changes in the workforce will have on our industry.

This much I know for sure: The traditional ways the insurance industry used to recruit, train and retain talent will not be successful for us in the years to come. Today, there is an intensifying competition for bright, committed employees needed to meet the insurance demands of our customers, who are themselves experiencing historic change from a risk-management perspective.

Despite the fulfilling careers those of us inside the insurance industry can point to, our industry historically has not been the first choice of talented, young job candidates. For instance, the insurance industry has not been recognized as cutting-edge when it comes to technology. There are also perceptions, right or wrong, that our industry can be slow to change and too focused on “doing things the ways we’ve always done them.”

So, how can we begin to change those perceptions?

At Zurich, we believe that improvements in our workplace technology and a stronger focus on innovation will create real opportunities to sell the attractiveness of our industry as a place to begin and develop rewarding careers. It will take more than showing up at a career fair to dispel some of the old perceptions about our industry. It requires real changes in culture and how we engage with society. That includes seeing our organizations through different lenses depending on the candidates being recruited.

Consider that a whole new generation is coming into the workforce that has never been without smartphones. And our industry struggles on occasion when it comes to technology, despite the progress we have made. Young people looking to enter the workforce today are sensitive to that view and have high expectations about the technologies they are going to be working with.

In the next six years, 75 percent of the global workforce will be made up of people born between 1981 and 1996. For the new generation of workers, technology plays a critical role both at work and in terms of how they interact with each other away from the workplace.

The technology expectations of our customers are also on the rise. They expect quick, simple, convenient products and services delivered via multiple channels. To keep pace with customer 82 LEADERS

demands as an industry, we need to be quick, agile, responsive and, above all, innovative. And this reality is precisely the kind of environment that the talent of the future will want to engage with as they consider their career options.

Of course, innovation means more than just introducing new technology. It also means products and processes that adapt to changing demographics, social trends and individual needs. For example, we must effectively adapt to the gig and sharing economies and evolving trends that younger workers understand, value and expect us to engage with.

Organizations in all industries also need to foster an innovation mindset among their employees, which can create exciting opportunities for all of us. To help accomplish this objective, Zurich created a unique Innovation Lab at our North America headquarters as a place where new ideas become reality. It’s an environment where we collaborate and share our innovation journey with customers, brokers and our employees.

Zurich also recognizes that as customer and societal expectations continue to change, evolving trends will require different products and approaches. That’s one reason why Zurich is working closely with the new wave of insurtech companies – technology innovators who are working to reinvent the current insurance industry model. We see partnering with insurtech companies as an innovative ways for us to do business in the future.

Zurich recently undertook a competition to help supercharge innovation in our business. We brought 16 insurtech companies to our Innovation Lab and offered opportunities to pitch their products and demonstrate how we could engage with each other.

Two North American finalists were chosen to compete in the Zurich Innovation World Championship in Switzerland and one was chosen as champion over a field of strong international competitors.

For the new generation of workers, technology plays a critical role both at work and in terms of how they interact with each other away from the workplace.”

- Brandon Fick

Getting ahead of technology trends and truly adopting an innovation mindset are actions that demonstrate to talented, enthusiastic young people that the insurance industry can offer a rewarding and exciting future. This new way of operating will also improve our customers’ experiences and our own business outcomes. That’s why it’s up to us as leaders to adapt to the changing perspectives and expectations of our workforce if our industry is going to thrive in the years to come.

© 2019 Zurich American Insurance Company. All rights reserved.

VOLUME 42, NUMBER 3

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. ©2019 The Zurich Services Corporation.

INTERVIEW

INTERVIEW

Interview

Fulfilling a Passion An Interview with George “Monk” Foreman III, Founder, EverybodyFights

George “Monk” Foreman III

EDITOR’S NOTE George “Monk” Foreman III is an entr epr eneur, boxing trainer and coach, and the son of legendary businessman and former two-time heavyweight champion George Foreman Sr. In addition to being his father’s business manager for seven years, Foreman III spent his entire youth working at the George Foreman Youth & Community Center, where he not only developed the habit of giving back, but also honed his ability to effectively use boxing as a platform to effect change within the community. After earning a degree in kinesiology from Rice University, Foreman III went on to pursue his own professional boxing career in 2009 and finished with a perfect 16-0 record. In 2013, Foreman III founded a luxury boxing fitness gym called EverybodyFights. His mission is to use his background in boxing as a platform to teach the mental laws of fighting to as many people as possible. In 2013, he also published his first book, The Fighting Spirit, which includes his original 12 “Fight Laws.” His next book, The Mindful Fighter, will be released later in 2019.

COMPANY BRIEF Headquartered in Boston and founded in 2013, EverybodyFights ( e v e r y bodyfights.com) r eceived a series-A investment from Breakaway in 2016 and is currently starting its series B round for nationwide expansion. A boxing fitness brand founded

by Geor ge For eman III, EverybodyFights provides award-winning group class programming based on a professional fighter’s training regimen. EverybodyFights has critically-acclaimed flagship locations in Boston, New York, Chicago, Philadelphia, and Lexington, Kentucky. EverybodyFights’ BOX program allows select third-party fitness clubs to open their own EverybodyFights franchise inside their current facilities and deliver boutique-style boxing fitness circuit and bags classes in as little as 800 to 2,000 square feet.

EverybodyFights is set to add at least 12 more BOX franchises over the next 18 months, and a total of 20 gyms by 2020.

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Did creating EverybodyFights provide a way to fulfill your passion for teaching boxing?

EverybodyFights is certainly a passion for me that stems from my love of boxing. If there’s one thing I would ever do for free for the rest of my life, it would be teaching boxing. I absolutely love it and that’s never going to stop.

EverybodyFights gives me an outlet to do that, whether I’m getting paid $100 an hour, $1,000 an hour, or doing it for free. That’s my passion and I’m so glad to have EverybodyFights to help me fulfill that passion.

With so many gym offerings in the market, how is EverybodyFights different?

I would be lying if I said that I came up with differentiators and target markets when I first started. I was just trying to pay my rent.

When I was a pro boxer, I would spend three or four hours before and after my training coaching others for free and actually losing money doing it. It was then that I thought, if I can train people and make $35,000 a year, I would do it in a heartbeat, even though I had the potential to box for two or three more years and earn big, million-dollar paychecks. That was my mindset.

I was visiting my friend (and now business partner) Anthony “AJ” Rich in Boston. He said, “This would be a great market for a boxing gym.” It was his idea originally, but he didn’t know it was on my mind. I thought to myself, “Wow, I can’t believe he said that.”

When I first opened a nonprofit gym in Houston, we would charge you your age in dollars per year for your membership fee, and we were losing money every month. So, my dad would subsidize the gym. People in Boston were paying $130 or $140 a month and the gyms were dirty and sweaty. My gym was much nicer. We had opened a really nice, luxury boxing gym. I was always a cleanliness snob because of where I come from. In our gym, my dad always said, “I don’t care if we’re about to go out of business, we’re still going to clean the floor.” That is what was behind the original concept.

I thought I was going to be able to find a location and open in Boston within six months.

However, it sometimes takes six months to just get a permit in Boston. In the end, it took me a full year to find a location, three months to secure it, and then six months to build it out.

So it was almost two years before I opened and, by the end of it, I kept adding on. In the tech

world, they call this feature creep; for me, I felt like I needed this gym to be a place where I could still train to fight if I wanted to, so it had to have everything.

I had used 24-Hour Fitness, Lifetime Fitness, Athletic Republic as well as sports performance training for football players, various recovery techniques, tech equipment, yoga and Pilates, and even outdoors training. I wanted to figure out how I could put all of this under one roof.

I also love luxury amenities and eating healthy. Then I needed physical therapy to stay healthy, so I wanted to include that as well, but I needed to find enough space. I realized it was going to cost a lot of money so I had to raise a lot of money. That took around two years and we finally ended up with this behemoth of a boxing gym, 14,000 square feet, in which I could do my entire training camp without leaving those doors.

That was how it all came together. I had planned on going back into boxing and actually tried twice with training camps after we opened. I just could not make enough time to train properly, so I gave it up. It will always be in the back of my mind, but I finally had to say, “You know what, I’m just going to open a business for boxing, as opposed to actually continuing my boxing career.”

When you opened the gym in Boston, did you know the concept would be replicable and would work in other cities?

I didn’t know; once again, I was just trying to pay my bills. I had leased a gym that was around $400,000 a year in rent for the first year and I was sleeping on the floor. I’d wake up, go in the communal restrooms, clean myself as if I was homeless, which is fine; I was homeless – and I would sell presale memberships at $400. I sold 600 of these memberships. That was all I focused on.

In my previous life, I worked for my dad.

After the success of the George Foreman Grill, many people sent us their inventions and business ideas. Many people had great concepts, but they didn’t know how to plan for success.

They thought their idea was the best, but didn’t think how it might scale to 50 million units.

They didn’t plan for that. It requires consistency, branding and simplicity and people struggle with all these things. So this was always on my mind because I didn’t want to be that guy who used to send me their great idea but who had not planned for success.

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Like I said, I was just trying to pay the bills, but while I was doing that, I also planned for success and worked on trademarks and protecting everything else we do that is proprietary such as our training secrets and anything else we could find that makes what we are doing special. I was also paying attention to the details, like how we could make every orange color in the facility consistent. That’s really hard to do because you have to figure out how it looks on canvas versus brick, versus other materials, so we were always looking at the details.

Is it difficult to maintain consistency as you scale from seven locations to another ten?

There is only so much you can control in terms of culture and vibe, but I do know that a big part of our business, especially being into boxing, is about vibe and what you feel like when you’re in the gym. If I can replicate the facility, that is an important piece, and I can do that. I don’t know if I can do it for the same budget every time, but I can replicate the facility, for sure, even though that has been harder to do because of the difference in available materials and contractors in different cities.

You also can’t completely replicate the people, but I can always find people who are passionate about boxing. They were, most likely, doing what they now do for us for free before, so I can replicate that. Then, I can make sure that they cue the movements the same way and teach the class the same way and wear the same clothes. I give them many options to choose from, but they must all have EBF somewhere on them. Then I can make sure they come and get fully immersed in what we do. I can do all these things.

Running a gym is part facility and part people, just like a church. So we will end up recruiting more of a psychographic than a demographic. Those people are out there. There are a lot of passionate people who in another life would have been football coaches or ministers or preachers at a church, who have a passion about fitness and who I can show how to teach a class. I may have to teach them how to cue a lunge, but I don’t have to teach them how to create that vibe of a person walking in and feeling motivated and then making the members feel comfortable when they walk in and excited and motivated while they are in the class. I can replicate that.

The concept of boxing may be intimidating for some. How do you structure the programs to make members feel safe and comfortable at any skill level?

Anyone can come to an EverybodyFights gym. There is not one class that is intimidating – I made sure we wouldn’t have that. For some, this might be a detriment, but we don’t have that, number one. Number two, since we have a four-part class series, you can run, you can do yoga, you can do Pilates in its own room, you can do circuit training, you can box, or you can workout in the open gym. You can do all these things. Then you can do small group training with just six people per class, which is included in your membership. You can also have one-onone training, so we give you a reason to come to the gym every day.

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Working out at EverybodyFights, Boston FiDi

We also have the ability to meet our members at the level they are at.

Are you concerned about what other gyms in the area might be doing or do you focus more on your members?

We definitely focus more on our members.

In my gym, it is all about what my customers are saying and what they are responding to. When one of our members has been coming for six months strong and I suddenly hear about them falling off, I want to know what happened. I like to say they are co-creating our product because we have to recreate our product, our brand and our messaging with the client every year.

Has it been difficult to retain talent in an industry that is traditionally known for high turnover?

I hate to say this because they may become famous last words, but we have zero turnover; zero, and the fitness industry is notorious for turnover. Do we fire people for being rude at the front desk, or stealing? Yes, but we try to keep people through all their indiscretions as long as they are not criminal and don’t put people at risk. So we just don’t have turnover.

I try to make sure that I’m always one step ahead in making sure the opportunities are there for our people as they grow. That’s hard to do and is a lot of pressure, and we are not always successful. People may be able to make more money elsewhere, but we ask if they would be happier or even as happy there, and we have to make sure the answer is no.

Although you cannot always be competitive in all categories, creating an environment where people are happy to come to work is the one element of competition that is fully within your power.

The more that we work on culture and making sure it feels like a family, the lower the turnover for the staff and the more they want to be close to those familiar faces who have become friends with whom they hangout. That, in turn, helps with the retention of our gym

members. When they fall off after a couple of months, they’re not saying, “Oh, I’ve got to get back at that workout;” they’re saying, “I’ve got to go see Chris,” and Chris has been there for six years, so that is an important element.

In terms of opportunity, we have realized that in our industry, once you are about 37 you are burned out and you are looking for a big check. You’re looking to be on TV, and those opportunities are so limited and they are not even that much fun. Knowing this, we choose to pay more for leadership. As opposed to other companies who pay hundreds of dollars per class, we choose to make a commitment to our people by giving them a salary, benefits, conveniences, vacation stipend, and equity. In short, we strive to reward the things that support the community.

As EverybodyFights has grown, has it been difficult for you to stay deeply involved in all aspects of the business?

My business partner, who is the CEO, really runs the company. To say it is all about me is disrespectful to him and also disrespectful to our staff and to the energy we put into the concept. People often questioned my role as being something that would hold us back from growth because I could not be everywhere at all times, so I’ve tried to make myself obsolete, and so my people keep me honest.

Alex is a good example. He has been with us since before we started. He is the best. He has managed gyms and managed all of our content. Alex is also the one that calls me out when I make a mistake to make sure that I am respecting the EBF culture. He is more me, as it relates to EverybodyFights, than I am now.

Knowing that Alex can become more me than I used to be – and Nicole, who has a Ph.D., and is a lot more organized than I am – can become more me than I used to be, is reassuring. And knowing that they, along with a few other people, are training the people who are the future leaders, I don’t really have a lot of LEADERS 85

Heavy bags at EverybodyFights, New York

concerns as to whether we can grow. It’s just more about moving too fast. We’ll have to figure that out, probably with some errors but, at the right pace, we can keep scaling this.

I’ve also learned that humor is the most sure indicator of connection and understanding.

When I can call my people at the front desk and they tell me about something and we can both laugh at how crazy it is, I know we are still connected. The minute I lose this and I can’t relate any longer, I’ll be fearful.

At what point did you know that this concept was going to work?

I never knew it was going to work; I just believed in it. I have this overwhelming belief that I need to do this and, if I just keep pushing, it will work out, but I don’t know that it will.

But I can tell you the time when I knew I was doing what I was supposed to be doing.

It hit me. We opened four gyms in 14 months.

We opened Boston in February 2017, New York in July, Chicago in August, and then Lexington, Kentucky, in June 2018. I was going on tour visiting all the gyms as I do now, and every single time I would visit one of the gyms, a woman and her husband would come in. They looked the same as they did before, but had a totally new attitude. They said, “Thank you so much for bringing this here; you don’t know what this is doing for me. I’ve never belonged to a gym. I never worked out.” They would point towards their brain, and explain the way the gym was helping them with their anxiety and self-image and say, “The way this is helping me mentally is completely changing my life.” They would go on and on. This motivated me to say, “I’ve got to do another one.”

We just opened a gym in Philadelphia, but I didn’t even see it until it was two months into operation. I didn’t train the staff, but I trained the team who trained the staff. I saw the trainers wearing an EverybodyFights T-shirt and that they had their swag and all of this confidence.

That was when I said, “This is my gym.” Then, 86 LEADERS

sure enough, a lady like the one I was telling you about, comes up to me and tells me the same exact story the other lady did. It was really bizarre.

Many would think this product lends itself more to men, but you’re seeing women also enjoying it and seeing the benefits?

I think men and women are experiencing the same benefits, maybe for different reasons or to a different extent. I know men and women are different, but I think a lot of us are impoverished in power or in the perception that we have power, especially if we are not getting what we want. The gyms seem to foster this whole idea of empowerment. I think women are more vocal about feeling this and that they like to do things that make them feel empowered. Men may feel the same way; we just won’t tell you. In fact, sometimes the less empowered men feel, the tougher they act. I think there is a similar thing going on with the men and the women. I just think it plays out differently.

With an undefeated professional boxing record, was it difficult to stop fighting?

It was hard, but I’ve come very close to being in bad shape from boxing. However, pushing myself and committing to something makes you want to stay with it. Of the people that I was competitive with, and maybe even better than, one of them is now heavyweight champion of the world. I’m not sure I could beat him now, but I know I could have beat him then. When I see that, it does make me want to come back. However, knowing what I know today about head injuries, I don’t think I’m the same guy I used to be before boxing. I have a lot more bravery and a lot of other intangibles that I’m glad to have, but my brain is not what it used to be. Knowing what six more years would have done in that regard makes me think I’m okay having given it up. I tried to come back a couple of times, but every time I was just about to go back and felt I had to do one more fight for charity, I would look my hardest and find

one guy in the boxing division that I just didn’t want any piece of. I think if you can identify that person, you don’t need to box. That person has never been one of the champions, but he’s like a pit bull and I didn’t want any part of him.

Some may feel that since you come from a successful family with a famous father, it would have been an easy journey.

Did you face many challenges?

There are a lot of things that are easy; but when I say easy, that doesn’t mean I got them without effort. I got a BMW my freshman year in college just for being a good kid; but you’re supposed to be a good kid. So, yeah, there is a lot of stuff that was easy.

My dad had trained me to be a fighter for five or six years. I kept asking myself, “Why would he let me do this?” but I think he just wanted to make sure I didn’t get killed doing it.

We were successful with my professional boxing career, but I used to train six days a week and sometimes seven. Finally, I said, “Dad, I want to do this on my own.” I was worried that we weren’t going to have the same relationship anymore and we had been best friends, attached at the hip my whole life in a way that seemed like more than just father/son.

Dad said, “I won’t let you do it by yourself. I promised your mama that I was going to protect you.” I thought about this and said, “Well, how about I just don’t do it?” and we both agreed that maybe it was time to take a break from boxing.

Then I decided to open this gym and he told me, “I don’t think you should do that. You’re signing a lease, you’re taking on expense. You do not need to take risks like this to be successful, so you don’t have to do this, son”. But I had my mind made up and told him I was going to do it. He was so concerned for me and was saying anything he could to get me not to do it. I did it anyway and there was no way I could go back to him for help, so I spent every dime I had.

The first gym cost $1.3 million, which I did not have in the bank. I had to beg for it, and only took a $40,000 a year salary for the first two years in order to pay it back, even though the gym was generating hundreds of thousands of dollars a year. This is a true story and the only option I would have had if it didn’t work was to go back home and start from scratch, but there was not a bone in my body that ever considered that to be an option. That’s just who I am and it is probably a flaw.

Was there a time when your father acknowledged that you had made it?

We didn’t talk about it at all for a long time.

I finally called him and was asking him a question, because he is my leader from a boxing standpoint. There was this new innovative bag that had six pads everywhere, but I felt like this was not real boxing. However, I was still considering putting it in the gym because it looked cool and beginners loved it.

We had a talk about it and he said, “Stop being so uptight. If it gets people to start boxing, that’s a start.” I think that was the point at which we just got past whether I was going to do this or not; and, like when he was training me to box, it became more about letting me do it while making sure I was successful and didn’t get hurt.

•

VOLUME 42, NUMBER 3

AN OPEN LETTER FROM

SPARTAN FOUNDER & CEO

JOE DE SENA

As a leading endurance company and a catalyst for transformation, Spartan believes it is important to shine a light on one of the most significant business and societal issues of our time: Improving employee health, fitness and resiliency.

A 2018 study reported that lost productivity due to poor health costs U.S. employers $530 billion per year. Our goal at Spartan is to work with the business community to improve corporate wellness by creating new, cutting-edge programs that have the power to boost employee health and engagement, and reduce employee turnover.

You need to build teams that do hard things together.

At Spartan, we have been forging successful teams for 10 years. Millions around the world have run our races and grown stronger by Spartan’s proven philosophy of learning how to overcome obstacles on and off the field.

You need to put your teams through challenges they can push through. Everything else is just talk.

Not buying it? How does the military forge high functioning teams? They make them sweat together; they build resilience together.

We believe the private sector needs to lean in with the innovation and leadership we are all known for.

Spartan will be playing a role by instilling resiliency in companies around the globe.

Let’s work (and sweat!) together to make it happen.

AROO!

JOE DE SENA

FOUNDER / CEO www.joedesena.com

INTERVIEW

INTERVIEW

Interview

Trex’s Turnaround An Interview with James E. Cline, President and Chief Executive Officer, Trex Company, Inc.

James E. Cline

EDITORS’ NOTE James Cline served as the Chief Financial Officer of Trex from March 2008 to August 2015 and as its Senior Vice President from August 2013 to August 2015. Prior to Trex, Cline served as President of Harsco GasServ, a subsidiary of Harsco Corporation. He served in various capacities with Huffy Corporation from June 1976 to February 1994, including as the Director of Finance of its True Temper Hardware subsidiary, a manufacturer of lawn care and construction products with nine manufacturing locations in the United States, Canada and Ireland. He has been a Director of Trex since August 2015. Cline received his undergraduate degree in accounting from Bowling Green State University and training from Harsco Management Institute, Cooper Management Institute, Zenger Miller and University of Wisconsin.

COMPANY BRIEF Trex Company, Inc. (trex.com) is the world’s largest manufacturer of woodalternative decking and railing, with more than 20 years of product experience. Stocked in more than 6,700 retail locations throughout the world, Trex® outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice.

Will you discuss the history and heritage of Trex and how the company has evolved?

The origin of Trex is interesting. Bob Wittenberg had a number of businesses that he had developed using recycled material; for example, breadcrumbs made from day old bread. He found himself flooded with plastic bags from the day-old bread and said, “What can I do with this?” He decided to mix some sawdust with plastic bags, pushed it through an extruder, and out came a board. He tried to light it and couldn’t get it to burn, so he threw it behind his warehouse.

After a few months, he saw that the board that was sitting there still looked pretty good. He decided it could become industrial flooring 88 LEADERS

and that was the start of Trex. He developed a process of combining those plastic bags, sawdust and a few bonding agents to be able to make a board that was basically impervious to insects and moisture, and that was very durable.

This got the attention of ExxonMobil because he started buying scrap from them. They owned a bag manufacturing business, and they ended up buying the company from him.

A few years later, ExxonMobil changed their strategy and four of the officers bought the business, took it private and then took it through an IPO in the early ’90s. Trex was a small company growing nicely until the IPO, but then it moved into fast-track growth where it remained through the mid-2000s as they developed the Trex brand and expanded their advertising reach. Around the mid-2000s, Trex seemed to lose its way and the company struggled. Their sales were good, but they weren’t keeping up with what the market was looking for and they weren’t working together as a team.

In 2008, the board of directors decided to recruit a professional management team.

In the past, the founders had been running it and as they retired the board felt they needed to bring in new blood. My predecessor, Ron Kaplan, came in as CEO. I had worked with him before and happened to call him just to congratulate him on the new job. I told him that I had just retired and he asked if I would like to do another turnaround with him.

It took about four years to affect the first stage of the turnaround and get the company in a sound financial position and we started growing from there. Over the past five years, our top line has seen 15 percent average compound growth and our EBIDA has experienced 24 percent average compound growth through the end of 2018, and we have been having record years, year after year.

When you joined Trex, did the employees understand and accept that change was needed or did you need to bring in new talent to change the culture?

It was a culture change. There were 11 vice presidents for a $300 million company, which was a few more than they needed. Worse than that, their incentive system was based on EPS and personal goals. They were pulling against each other, not pulling together. Before I started, Ron got rid of more than half the vice presidents, many of the other senior people and even some of those from the ranks.

Every department, with the exception of two, finance and R&D, was affected. I had asked him not to change the finance department because we had a lot of heavy lifting that needed to be done.

At that time, if Trex was able to find the most complex way to do something, that is how it was done. We moved to the K.I.S.S. system (Keep It Simple Stupid). Six months in, we figured out that the products we were making were not what the consumers wanted, so we tasked our R&D group to develop products around certain parameters that equated to what the customer wanted. They didn’t want a board that would fade. They didn’t want a board that would stain. They wanted a board that could be cleaned off easily if it got mold on it. Those were the three drivers they wanted.

They weren’t getting that from any manufacturer.

About a year and a half later, we started selling that board. It is called Transcend.

How broad is the market for the product?

When we first started, the emphasis for the company was distributor relationships and professional lumber yards and, to a lesser but still

VOLUME 42, NUMBER 3

important degree, the contractors that did the installation. They weren’t focused that much on the consumer. They did TV advertising to reach the consumer, but they really weren’t focused on capturing the heart and soul of that consumer and driving them towards the product.

With the explosion of cell phones as an information source, we basically changed the business model. The marketing people that we had were at the forefront of this and decided to go after the consumer. We needed to capture them as they were watching our TV ads, drive them to our website and then help them through the process and so we began doing that.

The final piece that we put in place was to bring our customer service for the consumer inhouse. The consumer doesn’t buy much directly from us, but we needed to focus on that consumer because, at the end of the day, if you grab the heart and soul of the consumer, everybody else will come along for the ride.

Have you expanded Trex’s product offerings?

When we first came onboard, Trex basically had one product in a bunch of colors. We now have a good-better-best approach that we have expanded recently. Our top-end product sells for about $4 to $4.25 at retail; our next tier down sells for about $2.50, and we have a new consumer product that is focused on wood conversions selling for about $2.50 with an opening price point of about $1.75.

The reason the $1.75 price point is important is that this is about twice the cost of pressure-treated lumber. We’re focused on converting customers from pressure-treated lumber to composites and the first step is getting them to think about it. If we only sold at $4 a linear foot, they would see it as too expensive. At $1.75, you can tweak their interest to reach a portion of the consumer base that would be willing to make that movement away from wood.

Wood accounts for 83 percent of linear feet sold and composites are only 17 percent. That is important because each additional percentage point we gain accounts for $50 million in sales.

Over the last three years, we have been moving the needle and this is one of the reasons why we have such a great growth trajectory.

Are you still educating the consumer about the difference between wood and composites?

Absolutely; we do a lot of consumer research and we identify which consumers are in the group that we could influence and the ones that will always stick with wood. We bought a website about a year ago called decks.com. Their organic search got the same kind of hits as Trex’s organic and paid searches, but the people on decks.com were almost exclusively wood buyers. The site’s content included designs and information on how to construct a deck. We left that intact but we added something – we added a way for them to see what the cost of the deck would be with wood and what it would be with composites and, if they wanted to find out more, we provided a quick link to the Trex website. This would put them in the funnel with our customer group and, if they were interested, would drive them through that funnel and help them make their decision.

Is Trex’s target market those who are redoing decks or those building new decks?

VOLUME 42, NUMBER 3

Ninety-five percent of our sales are for repair and remodeling. Anybody who has owned a wooden deck and had to go through all the maintenance associated with it and then see it deteriorate is a prime prospect for Trex.

Several years ago, they took the arsenic preservative out of pressure-treated lumber and the substitute is not as potent so it degrades faster. Instead of the 20-year life of arsenicbased preservative pressure-treated lumber, people are now having to replace it within 7 to 12 years. After they do it once, they really don’t want to do it again.

As a public company, is it difficult to find a balance between the short-term financial pressures and long-term investments?

Investors who follow our stock are smiling because they understand the story. Management does not solely concentrate on quarter-to-quarter results. We also do not do the aberrant things that others do to push sales into one quarter versus another to generate a little bit of extra profit in that quarter only to find that it is going to cost twice as much in the next. We’ve avoided that.

We have been fortunate though because of the multiple we carry and the fact that we are a huge cash generator, which means that we can afford to take some chances. Of course, the stock price has gone down occasionally, but it never goes down enough that anybody has raised their hand and said, “We would like to buy you.” The multiple is just too great for people to get their head wrapped around it.

They don’t see the growth opportunity in the way that management and certain of our investors see it.

What do you tell those entering the workforce about the opportunities that Trex offers?

In today’s environment, it is a challenge to bring in good qualified people. I think Trex checks a couple of boxes. First, we are a recycler. This is our competitive advantage. Our deck boards are 95 percent recycled material.

We’re the largest recycler of waste film in North America by far.

We run campaigns with school kids to get them interested in recycling. They send plastic to us and we pick those who do the most and send them a bench made out of Trex material.

This is a wonderful outreach program for us.

Also, people like to be with winners. We have a great track record. If you looked at the past six to eight years, you would see Trex has been growing at pretty close to a 15 percent average compound rate with a great expansion of profitability. It is more fun to be with a winner than a loser and a company that is growing rather than contracting, and I have personal experience in both.

When you started on this journey in 2008 after a very short retirement, did you imagine still being at Trex this many years later?

I didn’t think I would be around this long.

Typically, turnarounds have a lot of ugly parts.

I’ve closed down more than 25 different facilities over the years and it is gut wrenching. I don’t like it. It’s not fun. Doing a turnaround where you aren’t closing factories is a lot more fun and that is what we have been able to do at Trex.

When I first came onboard, after we got rid of that top level of management, I was able to talk to a wide variety of our people and found that they were turned on and focused.

They knew what the problems were – they just needed some help in driving the change that needed to take place within the organization. It was a great talent pool that just needed a different direction.

Do you ever think about another retirement?

I’ve told my board of directors that I’m going to retire before age 70 and I will be 68 this year. I had to think long and hard about this. I like the people I work with and I like the company. If it ever stops being fun, I’ll be out of here in pretty short order. But regardless of that, I believe at some point it is time to let a new team come in and have the same opportunity that I have had to grow the company, so I’m going to let that happen.

•

LEADERS 89

INTERVIEW

INTERVIEW

Interview

Changing the World With 3D Printed Electronics An Interview with Amit Dror, Chief Executive Officer, Nano Dimension Ltd.

Amit Dror

EDITORS’ NOTE Amit Dror is Co-Founder of Nano Dimension Ltd. and Chief Executive Officer and director since August 2014. Previously, Dror co-founded Eternegy Ltd. in 2010 and served as its Chief Executive Officer and a director from 2010 to 2013. He also co-founded the Milk & Honey Distillery Ltd. in 2012. Over the course of his career, Dror has developed vast experience in project, account and sales management while serving in a variety of roles with ECI Telecom Ltd., Comverse Technology, Inc., Eternegy Ltd. and Milk & Honey Distillery Ltd. He has a background in technology management, software, business development, fundraising and complex project execution. Dror is a graduate of the Merage Institute.

COMPANY BRIEF Nano Dimension Ltd. (nano-di.com), through its subsidiaries, operates as an additive electronics provider. The company offers the DragonFly Pro precision system for additive manufacturing of printed electronics. It also develops conductive and dielectric inks, as well as provides Switch software which is an enabler to turn electronic product ideas into reality by 3D printing them. The company was founded in 2012 and is headquartered in Ness Ziona, Israel.

What was your vision in creating Nano Dimension and how has the company evolved?

Initially, we were extremely excited about the whole concept of printing and were looking for something new within that field. As funny as it sounds, we thought most everything had already been invented. Then we had the idea to connect the world of 3D printing with the huge world of electronics manufacturing. The initial idea was to provide a solution for electronics engineers that allowed them to use a desktop 3D printer to print their designs in-house.

We realized that there is an issue when engineers have to wait weeks to get a printed design back. So our concept actually answered 90 LEADERS

all the criteria – the need was there and it was a huge market. We thought it was a concept we should pursue.

After going through a bit of a roller coaster ride with our first customers, we realized it was not about the desktop unit. It was about changing electronics production. Only a few years after that initial idea, we created the industrial machine.

So today, it is still about multilayered PCBs, but it is also about sensors, antennas, capacitors, and altogether changing the way electronics are made.

When did you know that this concept was going to work?

As an entrepreneur who has been through more than one roller coaster ride, I always believed we were going to get there, but there were times when I had to convince myself that it would work.

It’s great to look at it now when we are selling tens of machines to top Fortune 500 customers and the most important companies on the planet. The peak reward for me was to have gained recognition by the State of Florida and NASA to have something that we created go into space. That means a lot to me.

You mentioned working with Fortune 500 and other large institutions. Is Nano Dimension focused on specific industries?

The world of electronics is not just about a specific industry. Obviously, it includes the world of consumer products which are everywhere. Aerospace is also big as is automotive as cars become smart. It is also important with medical devices. There isn’t really any industry where this does not provide some kind of a solution.

Having said that, there are the early birds and the low-hanging fruit that we are dealing with right now, which are mostly aerospace, defense and research institutes. The market and the possibilities are pretty big, even just for those customers coming over and buying one or two machines or to learn the technology and, obviously, when they later take it to production.

Is the technology easily understood or do you still need to educate the market?

There is definitely a process of educating the market for 3D printed electronics. Having said that, they already know about 3D printing. They have been expecting it, but we have to work with our customers and help them with the right recipes.

There is a concept called “design for additive,” which addresses how to make a design suitable for a specific type of technology. There is education necessary in this area.

With how quickly technology changes, is the product continually evolving?

We look at this technology as something kind of profound and basic. I would like to use the example of print again. The books you and I read as kids were produced by machines using the same technology that was used for hundreds of years and that was print. The motherboards that are used in computers are called printed circuit boards. But once the print industry turned digital and we started using inkjet and similar technologies, the change was profound.

I think what we are doing is literally creating a disruptive change with how electronics are made. So, do we need to be on top of it?

Sure, because competition is going to step up and meet us. We want to be first and maintain the barrier.

Being the first company that is taking electronics manufacturing from the traditional method, that hasn’t changed for almost 100 years, and turning it into digital – I think that is a very disruptive change.

As with most disruptive technologies, were you told it would not be possible to accomplish what you have done?

Yes. I am not an electronics engineer, and I don’t have significant background in chemistry.

When we started this project, lots of very smart people told me that it was not achievable. They were the experts and they gave me good reasons to understand why I was wasting money and time.

I didn’t listen to them. Obviously, we ran into all the issues those experts came up with, but we managed to solve them and move on.

As a public company, is it difficult to find a balance between the short-term, quarter-to-quarter pressures and making long-term investments for the future?

On the one hand, being a disruptive, bleeding-edge tech company and being public is challenging. On the other hand, it forces the company to be accurate, to be clear, and to work like a grown-up.

There are some upsides to being public, and yet it is not easy. But I think that at this stage, having started sales and being deeply into growth and selling more machines means we are on the right path.

VOLUME 42, NUMBER 3

As a company founded and headquartered in Israel, how have you structured your international efforts in order to reach new markets?

We are essentially an Israeli company, but we have a subsidiary, Nano Dimension USA, to make sure that we can operate properly in the U.S. Nano Dimension is a supplier to the Department of Defense, with a CAGE number and the relevant credentials. This definitely helped us in the U.S. Likewise, we have to be able to operate in Japan, Korea, China and the Asia-Pacific region as well, so we established Nano Dimension Hong Kong.

We initially set up headquarters in the main regions in order to operate and then collaborate with Tier 1 value-added resellers. As a startup, you can’t do everything all by yourself. We are working with a network of Tier 1 resellers, about 20 of them worldwide, and that is how we distribute our products. We try to leverage the fact that nobody else offers a similar solution to ours and we are trying to attract the right partners and leverage our expansion.

Having run entrepreneurial ventures before, did you already have relationships that you could reach out to for attracting talent?

It happens that Israel, and specifically the area around the Weizmann Institute where we are located, is a place that some call the Mecca of 3D printing and inkjet technology because of the companies that were raised in that small tech park. The decision to establish Nano Dimension in that specific park was not a random decision.

Some of the co-founders of Nano Dimension had the contacts we needed in order to establish a strong team to begin with and gradually, as we started growing, this will still be a great location from which to attract the right people.

Israel is known as Startup Nation and as a major entrepreneurial hub. What do you attribute that to and what has made Israel a place with such a deep entrepreneurial spirit?

Well, there is the saying that necessity is the mother of all inventions, and I think that, in the case of the land of Israel, the necessity speaks for itself starting with how the country was established and moving forward with different types of inventions.

We r e c e n t l y h a d a reseller coming over to visit us at our headquarters in Israel. It was just around the Independence Day of Israel, so we ordered falafel for the whole company. Suddenly, a siren went off and everyone moved into the shelter next to the office and continued eating their pita and falafel in the shelter. The reseller wanted to know what was going on and we told him it was a missile warning. He was pretty concerned about it, but we told him the Iron Dome system would take care of it and The Nano Dimension DragonFly Pro 3D Printer (above); 3D printing (lower left) eventually he relaxed.

My point is that the Israeli people have I obviously enjoy following my pasencapsulated two things: first, the necessity sions, but each company was really in a difand the fact that we work to overcome it ferent field of activity: solar energy, whiskey, and practice innovation; and second, we are 3D printing. I do follow my passion, but I more accustomed to being at risk, which have never given up on something before I also makes us more comfortable with tak- felt that I had come to the point where it can ing risk. take off.

As an entrepreneur, is it more about Is it important to build a purposedeveloping the idea and then moving onto driven company? the next idea or do you also enjoy running Purpose is very important to me. I find it the business? hard to be passionate about something I don’t I’ve started three companies in my life, believe in. Knowing that what we are doing is and I have been involved with the initiation really going to help humanity, because you can of another one. The level of involvement really make things that are going to take us to with each of the previous ones was a few the next level, is important. years. With Nano Dimension, it has been I do not underestimate the fact that there almost six years now. are people who are investing money in the company. On the contrary, we are trying to do everything to help them also benefit and be a part of it. But as a tech company that is extremely innovative with disruptive technology, you really want the leaders to be passionate about what they are doing, and I definitely am.

Where do you see Nano Dimension in five years?

I think the most important thing for me would be to look around the room at all the things with electronics and to know that there is Nano Dimension inside each one of them. The impact of being at that stage would also mean that the company has done well.

Have you been able to take moments to celebrate some of the wins or are you always thinking about what is next?

I think I have changed over the years.

When I was a little younger, I was so focused on doing what I was doing that I didn’t take these moments. Today, I find them extremely important. Not only do I try to have these moments now, but I also encourage everyone to find those moments to appreciate what they have accomplished.

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VOLUME 42, NUMBER 3

LEADERS 91

INTERVIEW

INTERVIEW

Interview

The Story of the ASPCA An Interview with Matt Bershadker, President and Chief Executive Officer, American Society for the Prevention of Cruelty to Animals (ASPCA) across the country. The ASPCA’s mission, as stated by founder Henry Bergh in 1866, is “to provide effective means for the prevention of cruelty to animals throughout the United States.”

Matt Bershadker

EDITORS’ NOTE Matthew Bershadker has held his current position since June 2013. A lifelong animal lover, he joined the nation’s first animal welfar e organization in 2001, serving most recently as Senior Vice President of the ASPCA Anti-Cruelty Group, the division responsible for programs that confront animal cruelty and suffering across the country. While serving in this role, Bershadker launched the organization’s Field Investigations & Response team to provide skilled support during large-scale puppy mill seizures, dog fighting raids, animal hoarding cases and natural disasters. Bershadker also oversaw the development of the ASPCA’s Cruelty Intervention Advocacy program, an initiative to help protect companion animals in danger of potential abuse or neglect by addressing the root causes of animal cruelty and helping establish sustainable assistance. During his tenure, the ASPCA announced a multi-year, $25 million commitment to save the lives of animals in the greater Los Angeles metropolitan area. Before joining the ASPCA, Bershadker worked for organizations including Share Our Strength (SOS) and the Rape Abuse Incest National Network (RAINN).

He is also a Board Member of the Gruber Family Foundation and Global Federation of Animal Sanctuaries. He received his M.B.A. from Johns Hopkins University’s Carey Business School and a B.A. in communications from Ohio University.

ORGANIZATION BRIEF The American Society for the Prevention of Cruelty to Animals® (aspca.org) was the first humane society to be established in North America and is, today, one of the largest in the world. The organization was founded on the belief that animals are entitled to kind and respectful treatment at the hands of humans and must be protected under the law.

Headquartered in New York City, the ASPCA maintains a strong local presence and is also recognized as a national animal welfare organization with programs that extend its anti-cruelty mission across the country. The ASPCA is a privately funded 501(c)(3) not-for-profit organization, and has more than 2 million supporters 92 LEADERS

Will you highlight the history and heritage of the ASPCA? The history of the ASPCA goes back more than 150 years, which is remarkable longevity for any nonprofit, and I believe it speaks to the commitment and vision we apply to our mission. In 1863, while on assignment in Russia as an American diplomat, New Yorker Henry Bergh stopped a carriage driver from beating his fallen horse. There and then, Bergh realized his true personal mission and left his post to create the American Society for the Prevention of Cruelty to Animals in 1866.

When it was founded, the ASPCA was the first and only humane society in the Western Hemisphere, and its formation prompted the New York State Legislature to pass the country’s first effective anti-cruelty law, the first of many ASPCA breakthroughs and milestones for animals in need.

By the mid-2000s, the ASPCA had become a visible and active presence at scenes of natural disasters, dogfighting and puppy mill raids, and cases of severe neglect. We’ve deployed animal rescue staff and granted tens of millions of dollars in response to emergencies including Hurricanes Harvey, Irma, and Maria and the devastating California wildfires of 2018. In these disaster cases and many others, we performed land and water rescues, established emergency animal shelters, and helped reunite displaced pets with their owners.

In 2014, we established a groundbreaking citywide partnership with the New York City Police Department which increased the number of animal cruelty arrests in New York City by more than 200 percent. In 2014, we dedicated $25 million to fund a multi-year effort to assist at-risk animals in Los Angeles, and in 2018 we opened the ASPCA Behavioral Rehabilitation Center (BRC) in Weaverville, North Carolina. The BRC is the first-ever permanent facility dedicated to the rehabilitation and study of extremely fearful, unadoptable homeless dogs, most of whom are victims of cruelty or neglect.

This year, we’ll be opening a new spay/neuter and primary pet care clinic in Miami, as well as a community veterinary center in the Bronx (with other CVCs planned for Brooklyn and

Manhattan). These efforts are primarily designed to help owners keep their pets at home and out of shelters, ensuring the safety of those animals while also conserving space and resources at local shelters for other animals in need.

At these centers, we will also develop new ways to shorten diagnostic and treatment protocols, which will make those processes less expensive and more accessible for clients while maintaining effective outcomes for the pets. We will then share these protocols and other community medicine insights through a variety of channels to inspire and elevate similar efforts in at-risk communities around the country.

To me, the story of the ASPCA is rich in heroism and impact. Inspired by those moments, we remain dedicated to fulfilling Henry Bergh’s vision of a society that treats its animals with compassion and eliminates cruelty.

How do you define the mission for the ASPCA? Our primary goal is to ensure the lives of vulnerable animals are not only free from pain, cruelty, and suffering, but also proactively enriched both physically and emotionally by compassionate individuals, communities, and organizations. To accomplish these goals, the ASPCA employs a variety of tactics and initiatives that elevate the welfare of dogs, cats, horses, and farm animals, who are among the most atrisk and victimized animals in the country.

Many of our most recent programs address challenges of financial strain, food insecurity and poverty that have a profound impact on both the lives and safety of animals and their owners. Our research shows that these stresses can lead to animal relinquishment, poor quality of life, and even premature death – traumatic outcomes for families that put even more pressure on local shelters. We’re addressing this problem on local and national levels by providing affordable and accessible services and resources that help pet owners keep their pets safely at home.

We believe that supporting this community-focused approach – alongside elevating traditional law enforcement roles including veterinary forensics and legal/legislative advocacy – has the greatest chance of catalyzing systemic change that protects animals throughout our society.

How is the ASPCA addressing animal homelessness and what are the keys to driving impact in this area?

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Approximately 6.5 million companion animals enter U.S. animal shelters nationwide every year, 1.5 million of whom are euthanized. That number is dropping, but at-risk animals still need our help. Many people think the primary solution to the problem of animal homelessness lies in shelter adoptions. But while the 3.2 million shelter adoptions taking place each year are a critical part of helping these vulnerable animals survive and thrive, I believe our efforts to help them must go beyond traditional animal welfare partners and places.

Our modern tactics include major commitments to behavioral rehabilitation and training, animal relocation and community medicine programs that help low-income pet owners keep their pets by making veterinary services more affordable and accessible. We also encourage and support dedicated pet fostering programs, high-quality, high-volume spay/neuter practices and education and TNR (trap, neuter, return) efforts that tap into community compassion to help cats and kittens in need.

Canine behavioral rehabilitation is a relatively new approach with great potential to end the euthanasia of shelter dogs for behavior issues. In May 2018, we opened the ASPCA Behavioral Rehabilitation Center in Weaverville, North Carolina, the first-ever permanent facility dedicated to the rehabilitation and study of extremely fearful homeless dogs. There, we help animals overcome their trauma to become adoptable as well as train visiting shelters on effective techniques they take back to help vulnerable dogs in their communities.

Pet retention is another ASPCA initiative with tremendous promise for impact. In a 2015 ASPCA study of pet owners who reported giving up a pet within the last five years, 40 percent of those with annual incomes below $50,000 indicated that free or low-cost vet care would have prevented them from relinquishing their pets and 30 percent said free or low-cost pet food would have helped them the most.

In New York City, our Community Engagement and Community Medicine programs already operate within underserved communities, and plans are in place to further serve local low-income residents with permanent ASPCA Community Veterinary Centers in the Bronx, upper Manhattan and Brooklyn. We are also partnering with Food Bank agencies in New York City, Los Angeles, and Miami to make pet food available to traditional clients who are also pet owners. The food comes with vouchers for free veterinary services, including spay/neuter surgery and critical vaccinations.

Overall, we are working to address the causes of animal homelessness as much as we do its consequences, so animals are kept out of shelters and far from harm before sheltering ever becomes necessary.

Will you provide an overview of the ASPCA’s programs in addressing animal cruelty?

Our Field Investigation and Response (FIR) team works hand-in-hand with our Legal Advocacy, Veterinary Forensics, Anti-Cruelty Behavior and Government Relations Teams to ensure we’re responding effectively to cruelty on multiple fronts.

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In 2018, our FIR team deployed to 23 operations across 15 different states, including multiple animal fighting and other cruelty cases, as well as disaster response operations involving wildfires, hurricanes and a lava flow in Hawaii.

Our direct interventions in animal cruelty cases contributed to 489 criminal charges and 35 convictions.

Because seized animals are often in legal limbo for many months, we have also managed multiple temporary shelter operations across the country where animals received care and rehabilitation training until their ownership issues were decided. Our Government Relations team is currently supporting a federal bill called the HEART Act that would remove some of the obstacles that keep these animals from proceeding to adoption. The bill also requires defendants to reimburse the costs of caring for these animals.

On a local level, the ASPCA Humane Law Enforcement (HLE) department continues to work closely with the New York City Police Department (NYPD) since our collaboration launched citywide in January 2014. In this unique partnership, the NYPD takes the lead role in responding to all animal cruelty complaints in the five boroughs, and the ASPCA provides direct care for animal victims as well as law enforcement training and veterinary forensic and legal support. The ASPCA-NYPD Partnership has been incredibly successful, resulting in nearly 700 arrests by the NYPD in the last five years and more than 3,300 victims of alleged animal cruelty treated by the ASPCA. In 2018 alone, the NYPD made 131 animal cruelty arrests, HLE and the NYPD assisted more than 900 animals in New York City and HLE conducted dozens of trainings to more than 3,800 NYPD personnel. In addition, the NYPD referred 120 cases to our Community Engagement team to provide critical services for responsible but underserved pet owners.

I personally believe dogfighting is among the most brutal and loathsome betrayals of animals. It exploits dogs’ natural desire to please humans and exposes them to intense torture, suffering and often painful death. I spent years overseeing and deploying with our ASPCA anticruelty teams, but am still shocked at stories of animals conditioned with drugs to enhance their muscle mass and encourage aggressiveness, then viciously attacked, beaten, electrocuted and drowned.

Though illegal in every state, dogfighting persists due to the lure of profiting from this cruel activity. In the past nine years, the ASPCA has assisted more than 220 dogfighting cases in 23 states – from Alabama farms to New York City basements – impacting nearly 5,500 canine victims.

In 2013, the ASPCA assisted federal law enforcement agencies in one of the largest dogfighting cases in U.S. history, spanning four states and resulting in 10 arrests. A year later, we created National Dog Fighting Awareness Day (April 8) to increase awareness of the prevalence and cruelty of dogfighting, as well as to rally support behind a variety of laws and guidelines that combat dogfighting and ensure its victims not only find their way to safety, but also find their way home.

Will you discuss the ASPCA Strategic Cause Partnerships and the value of these partnerships?

I’m a big fan of cause partnerships because they provide an effective way for us to inspire and activate new audiences of potential animal welfare supporters. They’re also one of the most admirable and mutually-beneficial opportunities for nonprofit and for-profit entities to partner. We choose and cultivate these alliances carefully to ensure alignment with our mission and humane standards.

Some of our current cause partners, which span various consumer categories and activation campaigns, include AmazonSmile, Subaru, Bumble, west elm and Honey Nut Cheerios.

Our Subaru partnership is driven by their annual “Share the Love” event in which we participate alongside three other national charities. The more than $22 million in funds we’ve received from Subaru during our 11 consecutive years of involvement in “Share the Love” have impacted more than 57,000 animals through ASPCA rescue operations, animal relocation programs and adoption support across the country.

I see these partnerships as wins for the partner and for us, but much more importantly for the animals saved and protected as a direct result of corporate and consumer compassion.

How critical has it been to continue to attract top talent to the ASPCA and to build a diverse workforce?

With roughly 1,000 full-time employees at the ASPCA – many on the front lines of our work – having a skilled, committed and passionate staff is critical to accomplishing our goals on behalf of at-risk animals and communities. Diversity in our staff and in our perspectives plays an essential role in our success and our evolution. For these reasons, it’s vitally important that we continue to attract, develop and retain outstanding talent who feel included and motivated to contribute.

A firm commitment to workforce diversity, equity and inclusion maximizes the contributions and potential of our staff by consciously including and welcoming a wide variety of voices. It also improves outcomes for animals by helping us connect authentically and effectively to a broad range of communities, partners, and clients.

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

For me, looking to the future means identifying and targeting specific humane outcomes for vulnerable animals in the next five, 10 and even 20 years. In that long-range view, certain tactics stand out as having the highest potential for effecting systemic change, including increasing access to veterinary care by creating sustainable low-cost veterinary care programs in underserved communities, developing and sharing innovative approaches to canine rehabilitation and increasing legal protections for animals through expanded law enforcement, legislation and industry regulations.

As we pursue those priorities, we’ll also be developing, sustaining and evolving ASPCA programs that benefit at-risk homeless horses and severely vulnerable kittens, raise standards and conditions for a billion cruelly exploited farm animals, and stop abusive breeding facilities set up to increase pet store profits.

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The Evolution of Philanthropy An Interview with Melissa A. Berman, President and Chief Executive Officer, Rockefeller Philanthropy Advisors, Inc. EDITORS’ NOTE Melissa Berman is trusts, structures major gifts, coorthe founding President and CEO of dinates donor collaboratives, and Rockefeller Philanthropy Advisors provides regranting and fiscal sponsorand has led it since its inception, ship services. Rockefeller Philanthropy building it into one of the world’s Advisors also publishes, convenes and leading philanthropic advisory, speaks about innovations in thoughtgrant making, research and projful, effective philanthropy. It annually ect management services. Under her manages or facilitates over $250 milleadership, RPA developed and publion in giving to more than 25 counlished the “Philanthropy Roadmap” tries and has offices in New York, San series of donor guides with support Francisco, Chicago and London. from the Gates Foundation. She Melissa A. Berman developed and leads Rockefeller What is the heritage of Rockefeller Philanthropy Advisors’ research iniPhilanthropy Advisors? tiative, “The Theory of the Foundation,” and is Rockefeller Philanthropy Advisors became the author of multiple reports in that initiative. independent from the Rockefeller family office A frequent speaker, Berman has been a guest in 2002. The leadership of the Rockefeller famlecturer at universities across the U.S., Europe ily made that decision because they saw the and Asia including Harvard, Yale, Stanford, enormous increase in interest and an enormous Duke, IMD (Lausanne), Oxford, Sun-Yat Sen, range of new participants in philanthropy, as and Beijing Normal University. As a widely rec- well as a growing number of philanthropic tools ognized expert in philanthropy, Berman has that were becoming available as the 21st cenbeen profiled in The New York Times and the tury got underway. They thought it would be a Stanford Social Innovation Review. Recent arti- great part of their heritage in philanthropy to cles she has authored appeared in Foundation create an organization that could work on a Review and International Family Offices nonpartisan, agenda free and non-profit basis Journal. Her ideas and views are featured in with a very wide range of donors.

The Economist, The Wall Street Journal, The Those were the founding premises for us.

New York Times, Financial Times, and the The number of individuals and families interChronicle of Philanthropy. She has been inter- ested in philanthropy and willing to get engaged viewed on the Today Show, NBC Nightly News, much earlier in their life is growing. Among the NPR, BBC Radio, CNBC-TV, and Bloomberg TV. wealthiest around the world, there is now a real An adjunct Professor at Columbia University’s global culture of giving. We are increasingly Business School, Berman is also a director/ working with donors in Latin America, in Asia, trustee of Rockefeller Philanthropy Advisors, as well as in Europe and North America, and the Adrian Brinkerhoff Foundation and the the level of attention to philanthropy has also Foundation Center. She serves on the Advisory grown tremendously.

Boards of the Marshall Center for Philanthropy How do you customize your relationand Social Entrepreneurship at the London ships with donors?

School of Economics and the Tamer Center Everything we do is customized. We do for Social Enterprise at Columbia University. things ranging from research on how healthy Berman holds a B.A. from Harvard University food helps communities to investigating a parand a Ph.D. from Stanford University. ticular kind of disease, to helping a new foundation develop its strategic plan and all of its INSTITUTION BRIEF Rockefeller Philanthropy operating systems. We manage foundations Advisors (rockpa.org) is an innovative non-profit and grantmaking programs on behalf of famiphilanthropy service launched by the Rockefeller lies, companies, and other kinds of foundafamily in 2002. It is one of the world’s leading tions. We also incubate projects that need to be philanthropic advisory, grant making, research housed in a public charity that are often funder and project management services whose mis- collaboratives. sion is to help donors create thoughtful, effective On the other side of one of the walls of my philanthropy throughout the world. Rockefeller office is a group of foundation program people Philanthropy Advisors develops strategic plans, and private donors who are pooling resources conducts research, manages foundations and to do joint grantmaking to help deal with the 94 LEADERS

impact of climate change on the oceans. They are clearly able to get a lot more leverage by pooling their resources and making a smaller number of larger grants. It’s also really helpful to the non-profits, because rather than having to talk to 15 different funders, there is only one application, one set of reports, etc.

With the support of the philanthropic sector, we get funding to do research and publish, write and speak about innovations and trends in philanthropy.

Will you elaborate on the trend and movement toward collaboration that’s taking place in philanthropy?

I think in addition to wanting to get involved in philanthropy earlier in their lives, many people are also looking to have a deeper level of engagement than prior generations may have wanted. As they begin to get knowledgeable about the issues, they begin to recognize that even the Gates Foundation can’t solve certain issues on its own and needs to have partners and cofounders. I think that the focus on trying to understand the issues and looking at the long-term solution really is what leads people to recognize that they need to collaborate.

Is it a focus for Rockefeller Philanthropy Advisors to help foster those collaborations?

Yes, absolutely. We published a donor guide about effective collaboration. Our most recent publications are a pair of guides for donors about how they can think about aligning their philanthropy to the UN sustainable development goals. That kind of framework also helps people collaborate.

Are new models, such as impact investing, emerging in philanthropy?

Yes. It is really interesting that there is not just a new focus on impact investing, but also a focus on advocacy and movement building.

As we began to think about it, the classic definition of philanthropy is private resources for public benefit, but none of that says that those resources have to be in the form of a grant.

Those resources can be in the form of an investment. They can be in the form of philanthropists and foundations using their voice to advocate for change using their reputational capital and their relationships.

When we began to look at those things, we realized that many of the methods and frameworks that we have for looking at philanthropy focused almost entirely on where VOLUME 42, NUMBER 3

In addition to wanting to get involved in philanthropy earlier in their lives, many people are also looking to have a deeper level of engagement than prior generations may have wanted.

the grant dollars go, and then measuring the impact. That is extremely important, but it’s not the only resource that philanthropy has. If the Ford Foundation or Chan Zuckerberg Initiative or Michael Bloomberg make a decision about a cause that they are going to support, it has a totally different set of impacts than if somebody that we’ve never heard of starts to put money toward a certain cause, even if it’s the same amount of money.

We have had a group of about 35 foundations funding a study of how foundations can use resources beyond grants to maximize impact, and we developed a new philanthropy framework. It says that the building blocks of every philanthropic organization, whether a foundation, an LLC, a donor-advised fund or a funder collaborative, are its charter, its social compact, and its operating model. You need to understand all of those things before deciding how you’re going to implement your strategy.

How critical is it for donors to set a time horizon for their giving?

I think it’s critical for foundations and philanthropists to make an active decision, not a passive decision, about it and also to revisit that decision every now and then. There are many foundations that are set up in perpetuity and are committed to that format for the foreseeable future. In many cases, that is a carefully reasoned and appropriate decision. If you’re one of the few sources of philanthropy in a region that has a lot of complex, challenging issues, you probably are correct in thinking that you need to be able to operate in a way that will allow you to be around for many, many decades.

For example, we talked with the Virginia Piper Charitable Trust, which is in and focuses on the Phoenix, Arizona area. That region has massive challenges in terms of poverty, healthcare disparities, immigration issues and educational disparities, and there aren’t that many philanthropies in the region. So the Piper Charitable Trust is dealing with many very longterm issues that will take a lot of time to fix.

Planning to wrap up their work and achieve their mission in a 10-year timeframe is probably not realistic.

Other funders who are, for example, looking at climate change are very clear that, if we don’t start to tip the scales in the next five to 10 years, the costs and the consequences will be extremely challenging. You see entities like the Merck Family Foundation and the MacArthur VOLUME 42, NUMBER 3

Foundation spending on the environment at a much faster rate out of their endowment than they do for other kinds of issues.

Have you been surprised by the globalization of philanthropy?

If you think about how global most businesses are, and you also think about how many global challenges such as climate change and food systems there are, you recognize that these are not things where you can just focus on a particular area, because these issues don’t respect national or regional borders.

Many people who are leaders have been educated globally, have global relationships and participate in events like the World Economic Forum. Their outlook on issues is influenced by what they have learned and what they have experienced professionally. The Internet has opened up the world to many people, even if they can’t go there personally. The ability to really have a sense of what’s happening in other places is phenomenal. So I don’t think it’s that surprising. Coupled with that, I think that in many places people have less faith in the public sector to solve problems and higher expectations that wealth holders and businesses have a responsibility to try and solve problems.

It is really interesting that there is not just a new focus on impact investing, but also a focus on advocacy and movement building.

Will addressing and solving these global societal issues be driven by the private sector and philanthropists or does it need to be a public/private partnership?

I think the right formula is going to be a combination of public and private, including

public/private impact investing collaboration. If you look at the estimates of what it will take to achieve the sustainable development goals developed and approved by all the countries that participate in the United Nations by 2030, there’s a funding gap of $2 trillion to $3 trillion per year.

That money can’t just come from private philanthropy. It can’t just come from the public sector. It probably can’t just come from the business sector either. It has to come from a combination of all sectors, as well as impact investments that harness the power and resources of the capital markets.

With the growth that Rockefeller Philanthropy Advisors has experienced, how critical has it been to attract and retain top talent?

It’s been a wonderful opportunity to see the potential that the group had in its early years and recognize that some of the folks who were on the team then are still with us 18 years later.

The opportunity that Rockefeller Philanthropy Advisors presents, and the access that we’ve been able to have, is due almost entirely to the global stature of our founding family and this makes it an interesting and innovative place for people to work.

Clearly, we could not have achieved what we’ve been able to do over the years, nor be advising, on average, more than a quarter billion dollars a year to more than a couple dozen countries, if we didn’t have a fantastic team of talented people who are able to get up to speed on different issues, cultures, geographies and approaches in short order and who really relish doing this work.

Was this type of work something you knew was a passion of yours early on?

It was not what I expected at all. For the first almost 30 years of my life, I thought that I was going to be a professor of medieval literature. Then, I started getting involved in the relationship between business and society at The Conference Board and I became very interested first in corporate philanthropy and then in the broader field of philanthropy, but that did not happen for me until relatively much later in my career.

There is an element of luck involved in that a friend gave my name to the search firm and the Rockefeller family members decided to take a chance on somebody who wasn’t part of the traditional private philanthropy sector.

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Enriching Community An Interview with Jodie W. McLean, Chief Executive Officer, EDENS, Inc. EDITORS’ NOTE With a more than Between 2006 and 2008, we 25-year tenure at EDENS, Jodie crystalized our purpose and mission, McLean previously served as the which was to enrich community. Our company’s Chief Investment Officer values, purpose and mission will and then President before becomremain consistent even though everying CEO in 2015. She has been thing else in retail will change. responsible for the development, How has the disruption taking redevelopment, acquisition and displace in retail impacted EDENS’ position of more than $12 billion in business? retail assets. A native of Chicago, Technology has really impacted McLean holds a bachelor of scithe consumer. The consumer now ence in finance and management thinks at Internet speed. The consumer’s Jodie W. McLean from the Moore School of Business, attention span has seriously dwindled University of South Carolina and a over the past 10 to 15 years and we degree from South Carolina Honors College. She have to stay ahead of that. serves as Trustee and Executive Board Member The consumer doesn’t need to come to of the International Council of Shopping Centers our places anymore for a commodity, though (ICSC) and Trustee of Urban Land Institute (ULI). they will for pure convenience. Also remember McLean also serves on the boards of Cushman & this is happening at a time when social isolation Wakefield, The Real Estate Roundtable, Wofford and loneliness are an epidemic in this country.

College and Extended Stay America, as well as All Americans suffer from routine isolation and several other institutions and charities. loneliness, especially Gen Z. The role of retail is so much more imporCOMPANY BRIEF EDENS (edens.com) is a tant than it has ever been before, so our whole retail real estate owner, operator and devel- focus at EDENS is on how consumers want to oper of a portfolio of 125 places run with the spend their time. We want to inspire 3.5 trips purpose of enriching community through per week and five hours of dwell time, which human engagement. EDENS designs its places are enormous numbers. When people come to achieve 3.5 trips per week and five hours of together routinely in this way, they start to see dwell time so that when people come together, the same people and to be exposed to the same they feel a part of something bigger than them- groups. This creates familiarity and causes them selves and prosperity follows – economically, to start to feel like they are a part of the comsocially, culturally and soulfully. From a small munity. That is when we truly see prosperity family-owned business in South Carolina to follow and that prosperity is economic, social, the innovative, national-leading company it cultural, and soulful. is today, EDENS has a rich history that spans We can measure prosperity through our more than 50 years. EDENS was founded by retailer sales, community statistics, employee Joe Edens in 1966 on the foundation of entre- engagement and, of course, our business success. preneurialism, human connection and excepIn this age of Internet sales, how do you tional service. EDENS’ history is far more than measure the value of EDENS’ retail spaces? the places it has built; it is a story of the diverse We are focused on how people want to people, neighborhoods, partnerships and spend their time. There is a direct correlation places it has served. between time spent and dollars spent. Customer acquisition happens six times as fast in the store Will you discuss the history of EDENS as it does online. Stores are great for customer and how the company has mainta i ne d acquisition, but where someone wants to transits heritage while staying current and act is not something that I, nor the stores, can relevant? control.

The company was founded in 1966 by We’re working collectively to make sure Joe Edens and catered to retail with a focus we’re driving foot traffic and creating an envion centralizing a community’s retail needs to ronment that entices people to spend time at one place. Community has always been the our places and to make purchases, whether thread that the company has been built upon, within our four walls or through mobile on the as well as our eight core values. way home.

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All of the retailers account for sales differently, but we make sure we understand the impact of their store at our places on their overall success.

How important is cultural fit when bringing in new talent at EDENS? We almost always hire the person versus the resume. There are certain positions here where we need someone with deep experience in a certain role. However, on the real estate side of things, I would prefer to have the right person with a different background who brings diversity of thought to the table and is a great fit culturally and has intellect. We can teach them the nuts and bolts of real estate.

How do you measure employee engagement for EDENS? We do an engagement survey every two years and our people are highly engaged in the purpose and mission of this company. Because they are so engaged with the purpose and mission, they outperform at the real estate level.

Therefore, our retail partners can perform extremely well. When the retail partners perform well, the company performs well for our investment partners.

We also track what is happening in areas such as health, education and opportunity.

We’re starting to put metrics around these areas so we can understand the impact of the things we do.

We also watch regional and national trends and tie them to certain decisions we make.

For instance, we know that when we provide things such as outdoor music, outdoor yoga or clubs, the foot traffic improves at our centers, our retailer sales improve and our community statistics improve.

Is brand awareness for EDENS important or are you more focused on promoting the store brands?

We all understand the importance of marketing, but brand is totally different.

The truth is, our places are most successful not because people recognize something is EDENS, but because people recognize the store brands.

However, in dealing with retailers, there is value to the EDENS brand because the brand represents our brand promise, which is prosperity. Retailers recognize this and communities now recognize that we really care about the engagement and job growth that happens because of our places.

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VOLUME 42, NUMBER 3

A Global Footprint An Interview with Julie Leonhardt LaTorre, Chief Operating Officer, Sotheby’s International Realty Affiliates LLC EDITORS’ NOTE Julie Leonhardt of operational, marketing, recruiting, LaTorre serves as Chief Operating educational and business developOfficer for Sotheby’s International ment resources. Affiliates and agents Realty Affiliates LLC. In this role, she also benefit from an association with is responsible for overseeing the the venerable Sotheby’s auction global servicing and operations funchouse, established in 1744. The affiltions for the Sotheby’s International iate network is operated by Sotheby’s Realty® brand. LaTorre has experiInternational Realty Affiliates LLC, and ence as a transactional attorney, the company owned brokerages are has worked closely with auction operated by Sotheby’s International houses and luxury brands, and has a Realty, Inc. Both entities are subsidkeen understanding of an affiliateiaries of Realogy Holdings Corp. a Julie Leonhardt LaTorre based business model. Prior to joinglobal leader in real estate franchising Sotheby’s International Realty ing and provider of real estate brokerAffiliates LLC, LaTorre was senior vice presi- age, relocation and settlement services. Sotheby’s dent of affiliate services and head of operations, International Realty Affiliates LLC and Sotheby’s EMERIA region, for Christie’s International Real International Realty Inc., both fully support the Estate. She has held positions as a commercial real principles of the Fair Housing Act and the Equal estate finance attorney at two leading Wall Street Opportunity Act. firms: Cleary Gottlieb Steen & Hamilton LLP and Cadwalader Wickersham & Taft LLP. Before earn- How do you define the Sotheby’s International ing her law degree, LaTorre worked in education Realty difference and what have been the as a high school teacher in the Greater Los Angeles keys to the company’s success?

Area and then managed the Medicaid Choice Sotheby’s International Realty’s success can Education Project for the State of New York. While be attributed to our team across the board and at Cadwalader, LaTorre served as co-founder and our ability as a global company to have a preschair of the Women’s Leadership Initiative. She is ence in local markets. an active supporter of Something New, formerly We thoroughly vet companies before they known as the Freedom Foundation, a non-profit join the network to make sure that we have a organization in Selma, Alabama that empowers mutually meaningful relationship. This process young people to find their voice and expand their helps us ensure that each one of our affiliates opportunities by providing extracurricular activi- has an owner who is highly invested in the busities and mentoring, as well as a sense of commu- ness. They have a strong understanding of their nity. She is a graduate of Westmont College, holds market and are experts in their area. They can a Juris Doctor degree from Fordham University take a global brand and localize it in a way Law School, and is fluent in Spanish. that is effective and a strong reflection of their market.

COMPANY BRIEF Sotheby’s International When it comes to differentiators, Sotheby’s Realty (sothebysrealty.com) was founded in 1976 International Realty has continually been a as a real estate service for discerning clients of leader in innovation. We pioneered 3D and virSotheby’s auction house. Today, the company’s tual reality tours on our website and were the global footprint spans 990 offices located in 72 first real estate brand to launch an augmented countries and territories worldwide, including reality app – Curate – to allow homebuyers to 43 company-owned brokerage offices in key met- envision furniture and decor in a home. We ropolitan and resort markets. In February 2004, also partnered with Dow Jones to introduce Realogy entered into a long-term strategic alli- RESIDE®, a customized branded luxury magaance with Sotheby’s, the operator of the auction zine for affiliates. house. The agreement provided for the licensWill you discuss the brand’s global ing of the Sotheby’s International Realty name footprint and wher e you see growth and the development of a franchise system. The opportunities? franchise system is comprised of an affiliate netWe have an extraordinary global footprint – work, where each office is independently owned 990 offices in 72 countries and territories and and operated. Sotheby’s International Realty more than 22,500 sales associates worldwide. supports its affiliates and agents with a host In 2018, Sotheby’s International Realty reported VOLUME 42, NUMBER 3

its affiliated brokers and sales professionals achieved more than $112 billion in global sales volume, the highest annual sales volume in the brand’s history.

We also have a strong referral system that is facilitated by our global referral network. We offer and connect our affiliates to this network so they can capture their referral business. Last year, we captured more than $1.4 billion across the network. We know that is only a fraction of the referral business taking place and based on opportunities, there is room for it to increase.

In terms of global growth, while we always have an ear to the ground for new markets, we are proud to have brand representation in major global markets around the world.

In the U.S., we continue to grow strategically in new markets. We are increasingly focused on organic growth for our existing affiliates and supporting affiliates in their recruiting and retention efforts to grow their businesses, which is a big concentration for the brand.

In fact, most of the companies that come onboard have shown great growth year over year once they join, which can be attributed to the power of Sotheby’s International Realty and the support, marketing tools and focus that we provide to help grow their business.

Sotheby’s International Realty has a major focus on continuing to expand its service initiatives. Will you discuss these efforts?

We’re very committed to our affiliates. In fact, we have a team designated to servicing affiliates and agents.

It’s an increasingly competitive market, so we want our affiliates to understand the differentiators and value proposition they can offer agents, both from a recruiting and retention standpoint, that we believe no one else can match.

When the opportunity presented itself to join the brand, what made you feel it was the right fit and has it been what you expected?

When I got the call about Sotheby’s International Realty, it was a no-brainer. This is one of the strongest brands in the world – in luxury and real estate. I admired the resources, tools and technology they provide to their companies and knew I wanted to be a part of something unmatched in the market.

I came in with that expectation, and I haven’t been disappointed.

•

LEADERS 97

Making Magic by Providing Invisible Services An Interview with Victoria J. Cerami, Chief Executive Officer, Cerami & Associates, Inc. EDITORS’ NOTE Victoria Cerami He saw that buildings had noise leads Cerami & Associates, one of and vibration problems that were not the premier acoustical and techbeing addressed as an element of nology engineering firms in the good design. He raised that awarecountry. She is passionate about ness and, frankly, created an industhe firm’s role in public outreach try. He did this in the spirit of being with a focus on mentorship and a good engineer, but one who really sponsorship of women. Cerami sits cared about his clients. He also made on the board of ACE (Architecture, sure that the projects that he worked Construction, and Engineering) on were the very best, and that conwhich mentors inner city high tinues today. Those are the values school students. The firm sponthat I hold on to.

Victoria J. Cerami sors a woman each year entering How has the market for college to study mechanical engiCerami’s services evolved since neering in honor of her father, Vito Cerami. its inception?

She is also a board member for the New York In 1965, our clients were developers and Building Congress, member of the University of architects. Skidmore, Owings & Merrill was Hartford’s Board of Regents, Co-Chairwoman my father’s largest client and he worked on of the Council of Industry Women, and past everything they designed. My father passed Chairwoman of the University of Hartford’s away in August 1987 and the stock market Institute of Science and Technology Building crashed in October, so the industry pivoted Initiative Program. Cerami holds a Bachelor away from constructing really large buildof Science degree in mechanical engineer- ings. This led us to start doing interior renoing from the University of Hartford and a vations where we look inside buildings and master’s degree in business from MIT’s Sloan find ways to make them better and optimize School of Business. them. Today, we have a very diverse portfolio of work with interiors now being a significant FIRM BRIEF Cerami & Associates (cerami portion of our work. associates.com) has ear ned a reputaHow do you describe Cerami to those tion as one of the premier acoustical design who may not be aware of its work? and technology consulting companies in the Cerami is a company that provides services world and is the largest women-owned firm that no one knows are there; they are invisible. working on building design projects globally. When you walk into a building elevator and your The firm partners with world-class develop- cell phone still works or you can easily access ers and achitects on their signature projects, the technology in your conference room, we including Hudson Yards, Museum of Modern were there. If you walk into a building and you Art, Comcast Technology Center, Facebook, don’t feel vibration from the subway line below, Google, Massachusetts General Hospital Lunder we were there. If you are traveling, and clearly Building, TWA Hotel, The Ford Foundation, Four hear the last call for boarding over the PA sysSeasons Restaurant and Princeton University. tem, we were there. We are both a technology Cerami & Associates develops a signature voice and an acoustical design firm, designing from the in terms of how a building sounds or perhaps perspective of the user. If your experience of a how it doesn’t sound at all. It also enables its space is seamless, acoustics or connectivity goes inhabitants to connect to one another through unnoticed, our design is a success. technology. The firm brings 54 years of experiWith clients as diverse as Four Seasons ence to the user experience.

Restaurant and Hudson Yards, are each of Cerami’s projects customized?

When your father, Vito Cerami, founded Yes, but physics is physics, and underCerami & Associates in 1965, what was his standing sound, understanding vibration, and vision and has that vision remained con- understanding how things work is physics. It sistent over the years? then really becomes about the application of My father’s vision of providing thoughtful physics to each different problem. client focus and doing great work in taking care The first step is understanding the story. of clients’ problems is certainly the same today. For instance, Four Seasons Restaurant was 98 LEADERS

known as a restaurant that was this oasis of quiet in New York. It was a peaceful place.

The owners knew it was quiet, but they didn’t really understand that this quiet was a signature element of their brand. When they took their new space located over the train tracks in Grand Central Station, we needed to figure out how to recreate that sense of peace and quiet. We not only put recommendations together, but we created a model so that they could listen to it and feel it.

So, do we do the same things over and over again? No, because we have to create something unique that gets the client to actually listen to their project as it is being designed so they can determine if it works.

As a leading woman in business, how important is it to invest the time to mentor and provide opportunities for the next generation of women leaders?

It is very important. The women who work at our office have been mentored by me and they now mentor high school kids, so there is a whole string of mentorship. I didn’t have a female mentor, but I was lucky to have some very strong men who were great mentors.

My suggestion to the women in the office is to continue to look behind you and pull others forward because, in doing so, you become a leader. You learn how to lead, because that is what great leaders do.

Great leaders are not ones that pontificate, but those who look to see how they can help and bring out the best in other people, and that is what I try to do.

How critical has it been to attract and retain top talent as Cerami continues to grow?

We are always looking for talent and when we find talented, curious people, we do everything we can to keep them engaged and on a path of growth. Our entrepreneurial atmosphere is well known in the industry and we also attract intern applicants from the best engineering programs in the country, including many global applicants as well. I feel like I have been a change agent in the evolution of the company, but it is not all just me. I throw an idea out and then encourage solutions from many different directions and angles. This is really exciting and makes Cerami an interesting, dynamic and collaborative place to work.

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VOLUME 42, NUMBER 3

HAP’s Growth An Interview with Andrea Lawrence, General Counsel and Deputy CEO, HAP Investments EDITORS’ NOTE Prior to joinWhat have been the keys to HAP’s ing HAP Investments, Andr ea growth and success?

Lawrence was a partner at several I attribute a significant amount prestigious New York law firms, of HAP’s growth and success to the where she focused her practice on foresight of our CEO, Eran Polack, commercial real estate litigation particularly with respect to our earand transactions. Lawrence is a lier acquisitions in emerging markets, contributing author to two preemsuch as East Harlem, Inwood and inent legal treatises on real estate Washington Heights. We invested in law in New York. She is also the these neighborhoods long before the author of various articles on sigdemand for properties in these areas nificant legal issues and trends soared, and at a time when sales Andrea Lawrence affecting the real estate indusprices were reasonable. As a result, try. Lawrence has served as a memwe were able to develop these propber of the Board of Directors for the American erties into modern rentals and condominiums Composers Orchestra, Soho Rep., and REIN NY. that appeal to the end user.

She r eceived her J.D. fr om the Benjamin Is HAP’s growth primarily taking place N. Cardozo School of Law, where she was in the New York market? the Research Editor of the New Europe Law We have explored opportunities in other R e v i e w / I n t e r n a t i o n a l L a w J o u r n a l a n d parts of the country, but as of now, the focus of r eceived her B.A. fr om the University of the company is Manhattan and the immediately Michigan, Ann Arbor. surrounding areas.

When you look at HAP’s portfolio COMPANY BRIEF HAP Investments (hap-ny.com) today, are the developments similar in size is an international, full-service real estate and scale? development company headquarter ed in Definitely not. When I joined the comNew York City. The firm is keenly focused on pany in 2013, we were working on smaller identifying and investing in projects strategi- scale rental/condominium projects in East cally situated in emerging and prime markets Harlem, Fort George and Hudson Heights. in the New York metropolitan area. Founded Since then, our projects have increased sigin 1998 by partners Eran Polack, Amir Hasid nificantly in size and scope. For example, we and Nir Amsel, HAP Investments has success- now own 213-227 West 28th Street (assembled fully acquired, designed and developed a over a four year period), which we are develdiverse portfolio of residential and commer- oping through a joint venture as two adjoincial r eal estate that is r enowned for its ing 20-story residential buildings; 2211 Third location, proximity to mass transit, and inno- Avenue, a 108-unit rental building in East vative, high-quality construction and design. Harlem; 65 Franklin Street, a 19-story residenIts U.S. portfolio is currently comprised of 11 tial building being developed in Tribeca; and residential projects totaling more than 1.8 mil- a large tract in Jersey City that we intend lion square feet in various stages of develop- to develop as a 42-story rental tower with m e n t , c o m p l e t i o n a n d o p e r a t i o n . H A P retail/commercial components at the base.

Investments leverages its two decades of expeIs this a time for opportunity in the New rience, knowledge and expertise along with York real estate market or are you concerned its strategic partnerships to continually assess about a potential pullback in the market? and stay ahead of market trends and best posiThe real estate market is traditionally cyclition its developments for financial success. The cal, so we think that there is always opportucompany’s development approach is combined nity for investors and developers, particularly with its respect for the communities in which in Manhattan and the surrounding boroughs. it works, creating buildings that enhance the In any event, we feel confident that we can lives of both its residents and neighbors. From weather a downturn based upon our diversified land acquisition through design, construction portfolio. Our rental projects in East Harlem are and property management, HAP Investments in demand and continue to generate income, carefully oversees every development to deliver and our condominium project at 448 West 167th premier quality and maximum value.

Street is over 90 percent sold. Further, several VOLUME 42, NUMBER 3

of our residential developments are not slated for completion for another year or two. By that time, we expect the real estate market to be in a different position.

Having come from the legal profession, what excited you about joining HAP and how has the role of general counsel evolved?

Having worked in several large law firms over the course of my career, I noticed a definitive shift in the traditional law firm model. Attorneys at a certain level are now required to focus on bringing in business and generate revenue, which often slices into the time spent practicing law. It’s a different model than in the past, where one rainmaking partner could support an entire practice group of attorneys. Eventually, I lost interest in the sales and marketing component of the legal practice, but maintained an avid interest in real estate law. I was looking to work for a developer when HAP came along, and it proved to be a great fit.

My role at HAP has evolved on several fronts. While I was initially hired to advise on the legal risks affecting the company, I am now called upon to provide strategic advice on the business affairs as well. I believe the shift in my responsibilities reflects the overall global change in the role of the general counsel over the past decade from legal counsel to trusted business advisor. Additionally, my recent promotion to Deputy CEO has enabled me to utilize my legal skills and acumen to help management make decisions on high-level business issues affecting the company.

When you came onboard, there were only seven people at HAP. How critical has it been to attract diverse talent at the firm as it has grown in size and scale?

At HAP, we are thoroughly invested in attracting and maintaining a diverse and inclusive workforce. We believe that having a diverse group of employees provides substantial value to our business. I am proud of the fact that half of our employees are women, and that they populate each department at HAP – from marketing and PR, to legal and finance, to construction and development. We also take pride in our efforts to recruit talent from all over the world through our active engagement in various sponsorship programs. At present, we have employees from Israel, China, Egypt, France, Italy and India.

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LEADERS 99

Simplifying Real Estate An Interview with Louisa M. Gillen, Co-Founder, The SIMPLE Real Estate Co. EDITORS’ NOTE Before launching SIMPLE, Louisa Gillen and Chris Palminteri spent 16 years as a top producing team at The Corcoran Group, closing more than 250 transactions totaling over $350 million.

Born and raised in New York City, Gillen attended The Chapin School a n d D e e r f i e l d A c a d e m y , and r eceived her bachelor’s degree in math from Vanderbilt University.

with Corcoran, we decided that we would offer sellers something new and modern that benefitted them.

We saw it like Warby Parker – no one ever questioned why glasses were so expensive, until the Warby Parker founders did, and they realized they could sell glasses for less to benefit the consumer and still make a healthy profit.

Who is the ideal client for SIMPLE and are you focused on the Louisa M. Gillen COMPANY BRIEF The SIMPLE Real high end or do you service a broad Estate Co. (thesimplerealestate.com) range of residential product? is a full-service, high-touch real estate firm It depends what one considers high end. designed specifically for sellers. The found- Manhattan has different levels of numbers and ers, Louisa Gillen and Chris Palminteri, are SIMPLE’s model will be very attractive to sellseasoned brokers who were disenfranchised ers in the $3 to $5+ million range. SIMPLE’s by the outdated br okerage model and, in hybrid fee structure could save a client $90,000 response, conceived SIMPLE to thrust it into the when selling a $4 million home and even more future by introducing a modern and hon- if there is no buyer’s agent. est approach to the sales process. SIMPLE’s forWill you discuss how the model works? ward-thinking model is financially smart, fully We disagree with the 6 percent limitless transparent and service driven. agent commission fee, so we started our own hybrid fee structure. Representing the seller, we What was your vision behind the creation cap our fee at $50,000. of The SIMPLE Real Estate Co.?

If there is a buyer’s agent, we will still offer The real estate industry still operates in the them 2.5 percent. If there is no buyer’s agent, pre-Internet age, which astounds me. Sixteen the seller will still only pay $50,000. With the years ago, it was necessary to advertise property traditional model, they take both sides if there listings through paper ads, which incurred signif- is no buyer’s agent. We are not doing twice the icant marketing costs. However, technology has amount of work, so that did not make sense to completely streamlined how we market proper- us. The value proposition to sell a home does ties and has drastically reduced these costs; yet, not scale with price, so why should the comthe traditional brokerage firms haven’t adapted mission fee? their models and are overcharging sellers.

Where do you see the Manhattan real Today, marketing is handled by positioning estate market today and is this a buyer’s or a property on third-party online platforms with seller’s market? professional photos, a floor plan and lengthy For the most part, it is a buyer’s market. descriptions. We want our properties positioned New York is made up of many micro marwhere the consumer (buyer) is looking, and in kets, and even though we are still seeing Manhattan that is, almost exclusively, StreetEasy. deals that are dictated by the sellers, we are I think the traditional brokerage firms seeing them less and less. It still goes back know that things are changing, but they can’t to location, location, location, and/or whether admit to it because it will eat into their profits. you have something unique like an amazThink Blockbuster – they knew about Netflix, ing view or incredible outdoor space. There but shifting their model to compete would eat is a lot of opportunity for buyers out there. too much into profits.

Buyers should make offers, you never know My partner and I asked ourselves what how much a seller is willing to concede until we were getting out of being under a big real you jump in the ring. Proper pricing is always estate brand. We really already had our own important, but paramount these days. Sellers brand – us. Buyers and sellers were coming to need to be realistic and working with a seaus because they liked working with us, not soned agent is even more important than ever because of where we worked. After 16 years to get the transaction closed. In addition, 100 LEADERS

SIMPLE’s unique fee structure is well positioned in this market because it saves sellers a significant amount of money and can mitigate any losses.

With all the new technology available, does being a successful agent still come back to the human touch and building relationships?

Most successful agents will say it is all about relationships – how we manage those relationships and get into those relationships might vary based on generation. Millennials might attract more people through Instagram, but they still have to build those relationships.

I still believe in organic networking. I don’t think we will ever lose agents because real estate is a relationship-based industry.

How do you plan to create awareness about SIMPLE’s model?

It is a learning process. We thought the word would spread more quickly. We have been seeking out new ways to get our message out there like sponsoring events and industry talks. Our next tactic is to focus on wealth managers and trust and estates attorneys, so they can offer their clients our innovative model that puts more wealth back in their clients’ pockets.

We are also thinking about pitching schools like Chapin, which I attended, to see if we can work together on furthering philanthropic giving. SIMPLE’s savings could make giving back to your school more accessible.

Is being entrepreneurial a key to being a successful broker?

Definitely, like an entrepreneur, you have to be very self-motivated and disciplined. You also have to be ready to fall and pick yourself up again.

While it is still early for SIMPLE, has it been what you expected?

I have my frustrating moments because I know we’re doing something new, and we expected more people to be talking about us.

On the other hand, we were so complacent where we were, and we were not excited about our industry even though there were so many aspects about real estate that we loved. It came to a point where we just were not growing.

Once you stop growing, you have to figure out something else. It does not have to be going out on your own, but it was the right time for us. We saw the industry needed to change back then, and it is only more apparent now.

•

VOLUME 42, NUMBER 3

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Telling a Story Plant Riverside District will transform Savannah’s historic riverfront into a vibrant new entertainment destination.

An Interview with Richard Kessler, Chairman and Chief Executive Officer, Grand Bohemian Hotel Greenville is a designed lodge that will offer 187 guestrooms, suites and lofts with views overlooking the Reedy River and Falls Park.

The Kessler Enterprise, Inc.

EDITORS’ NOTE Richard Kessler and it was profitable the first year and has been Chairman and CEO of The I knew I was onto something. The next Kessler Enterprise since 1984. He year we bought land in Orlando, Florida was former Chairman, President, and built another boutique hotel. It was and Chief Executive Officer of also very successful right away. This told Days Inn of America and former me back in the early ’80s that I was Chairman of Lutheran Brotherhood onto something with this idea of an inbased in Minneapolis. Among The dependent boutique hotel.

Kessler Enterprise’s projects are The I did some other things, includKessler Collection of themed hotels ing running Days Inn, which we sold and resorts, the 500-acre Silverwood in September 1984. In 1995, I started a Plantation r esidential commucompany called Grand Theme Hotels Richard Kessler nity, the 1,000-acre Georgia North and moved to Florida to develop fourInternational Industrial Park, as well star level themed hotels. as commercial land developments. In December I quickly opened two of them and both 2018, Kessler was featured as one of Florida’s were very successful, so I knew I was back on 500 Most Influential Business Leaders by Florida the right trail with this idea. I then morphed the Trend magazine. In 2000, Kessler was named the Grand Theme Hotels into The Kessler Collection.

Ernst & Young Entrepreneur Of The Year™ for the I changed the name of the company because, at State of Florida. Kessler has bachelor and master’s the time, people saw themed hotels as too degrees in engineering from Georgia Tech.

Disneyesque and they didn’t understand the quality that we were providing.

COMPANY BRIEF The Kessler Collection’s (kesslercollection.com) portfolio of passionately created and artistically inspired boutique hotels boast chic design, luxe accommodations, enriching ambiance and intuitive service. Each hotel’s exquisite art, music and cultural influences are deliberately approachable. Kessler guests are bathed in redefined Bohemian luxury whether at an 1888 historic hotel, a cutting-edge downtown landmark, a magical castle, an earthy Native American mountain lodge, a high-design southern mansion or an elite ski lodge. The Kessler Collection was the founding member in 2010 of the Marriott Autograph Collection which was launched with seven Kessler Collection Hotels and today Autograph Collection has 400 hotels worldwide.

The lobby of the JW Marriott Savannah at Plant Riverside District

Will you discuss your vision in creating The Kessler Collection and how the business has evolved?

The seed of the idea came in 1979 while I was traveling in Europe. I saw boutique hotels scattered all over Europe and even though they were under no brand flags, they were successful and charming. This prompted me to build the Mulberry Inn in Savannah, Georgia in 1980. That was before the “boutique” trend had even been thought about in America. Little was said about hotel art and music or boutique hotels at that time.

The Mulberry Inn was very successful from the day it opened. It just started off with a boom 102 LEADERS

Today, we have nine operating Kessler Collection boutique hotels and we have three more under construction soon to be finished.

What does the word boutique mean to you and is it still the way you would characterize The Kessler Collection today?

The whole idea of boutique, in the generic sense, has morphed into something that’s frankly not boutique anymore. People are confusing a lifestyle hotel with boutique. We now have 1,000room hotels calling themselves boutique. In my definition of a boutique hotel, a 1,000-room property is not boutique, but it may be a lifestyle hotel.

A boutique hotel has a sense of intimacy and smallness. In my experience, when you hit 300 rooms in any hotel, the operation changes and the feel of it changes. Over the years, we have learned that you can push the number to approximately 250 rooms if you design it right and are very careful about the size of the spaces you create. Generally, the boutique feeling is best maintained if you stay under 200 rooms.

We’re developing a 256-room property in Charlotte which will be open in March of next year. It will be boutique and will have a quaint feeling to it. We’ve given it a colorful Argentine theme. If you give it an interesting theme that has a story, it can be boutique. That is one of the deciding factors and is why a lot of these larger hotels can’t be boutique – they’re too big to really tell a story or have a feeling of intimacy. It’s most important that a boutique hotel has a feeling of intimacy.

Is it challenging to find properties that have a story and fit within the Collection?

First, you just have to have an eye for it.

You have to know what you’re looking for. For example, when I was looking at Greenville, South Carolina sites, the broker showed me three. Two of them were on Main Street and were good sites but I was struggling to come up with what would really make them stand out with a storyline. I went to look at the third site which was downtown. Walking across an Italian designed curving bridge, I discovered a site on the river with a waterfall overlooking a scenic park. I instantly knew it was the site we would buy.

We’re developing that property now. Since it feels like you’re in the middle of a forest, I decided to build a mountain lodge because you feel like you’re in the hills of South Carolina. It will be a very iconic hotel. My point is that if you have an eye for what you’re looking for, there are unique opportunities out there.

Is brand awareness for The Kessler Collection name important or is it more about promoting the individual properties?

It’s both. In most cases, we are using the Grand Bohemian name for the properties within The Kessler Collection. Grand Bohemian suggests a feeling of freedom and it suggests something unorthodox. While each property becomes its own brand, it’s certainly identified and known as a Grand Bohemian and as a member of The Kessler Collection of “inspiring places.”

•

VOLUME 42, NUMBER 3

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Effortless Elegance An Interview with John Meadow, President, LDV Hospitality EDITORS’ NOTE Focused on conWill you discuss LDV Hospitality’s cept and business development, entrance into London and where John Meadow drives the creative you see additional growth opporprocess for LDV, envisioning and tunities internationally? creating new concepts as well as Across every segment, from sneakforging business partnerships with ers to music, from restaurants to hotels, hoteliers, developers, and celglobalization is obviously a very real ebrated chefs. Meadow began his thing. We’ve never been more intercareer in the hospitality industry connected. I think that every different immediately after graduating from category of brand in today’s universe Cornell University’s School of Hotel becomes elevated into kind of a lifeAdministration, serving as manstyle brand. If you look at the restaurant John Meadow ager at The Plaza Hotel’s Oak Room. space, the Zuma’s and Cipriani’s of the In 2008, he sought to create someworld have taken the international route thing of his own and opened Scarpetta to criti- and provide a very consistent experience. cal acclaim in New York City’s then-emerging There is a like-minded clientele in places that Meatpacking District. With Scarpetta’s success, seem, on the surface, so disparate. In Istanbul, he went on to launch LDV Hospitality, which New York, Miami, London and Dubai, everyone now consists of 27 food and beverage concepts goes to Zuma and while 20 years ago you would thr oughout the country. Meadow’s vision never believe that to be the case for this lifestyle and philosophy for LDV is to take inspiration brand, it is very much so now. from iconic, classic moments of old-world hosWe firmly believe and are excited that pitality cultures and adapt them to today’s Scarpetta can participate in that international modern social life. Today, Meadow remains lifestyle realm. It’s something we’re very eager active in the alumni network at Cor nell to do and, frankly, what better market than University, having served as the school’s offi- London to launch our first international restaucial Entrepreneur-in-Residence, as well as host- rant. I’m very confident and eager to go from ing and participating in a variety of classes, London to Dubai and Tokyo and build Scarpetta panels and events for the school throughout the to be the international lifestyle restaurant year. Additionally, he is an active member of brand that it deserves to be. the NYC Food Service Industry Partnership Will there be common characteristics in Advisory Council. In 2016, he received the each Scarpetta or will the restaurants be cus“Next Generation” Award from the New York tomized for the local market?

City Hospitality Alliance.

The core DNA always remains the same – the ethos of Scarpetta, this effortless elegance and C O M PA N Y B R I E F L D V H o s p i t a l i t y taking simple quality seasonal ingredients and ( ldvhospitality.com ) is a boutique hospitality amplifying their qualities, will always remain the group that creates authentic and unique restau- same. While there are many differences between rant and cocktail bar experiences. Inspired by New York, Miami, Philadelphia and the other La Dolce Vita (The Good Life), the group was domestic Scarpettas, they all maintain the same founded by John Meadow in 2008. The LDV spirit, core ethos and brand DNA. portfolio spans across nine cities throughout the Whenever we adapt for a local market, we United States with its home in New York City, as only minimally modify the food component; the well as one city across the pond, making its first food needs to remain very consistent. Of course, international debut in London. Other locations every market has different, wonderful local proinclude The Hamptons, Miami and Las Vegas. In duce that you can engage with so that allows for addition to its signature brands, LDV develops the food adaptation. tailor-made concepts for its hotel partners, workCertainly, the aesthetic and the design of the ing with iconic hotels such as The Cosmopolitan spaces are different, but the core energy and feelof Las Vegas, The Fontainebleau of Miami, ing has to be consistent. For example, London, Gurney’s Resorts and The James New York - as compared to New York, is more refined and, NoMad. In summer 2019, LDV will open its first therefore, the design aesthetic is slightly elevated international restaurant and cocktail lounge in from the kind of gritty, high/low balance that we partnership with Bvlgari Hotel London. have in our New York flagship.

104 LEADERS

Scarpetta’s newest restaurant “Sette” at the Bvlgari Hotel London (left); Nolita Social in London (above)

I think there is a fine line between staying true to the brand, but also adapting for a local market and the best way to stay true is with the people. The reality is that at every Scarpetta and LDV restaurant we have the right authentic locals working in our restaurants and exemplifying that kind of grassroots, local team that really personify a city – this is the only way to truly become a part of that community.

Is Scarpetta the brand that offers the greatest opportunity for growth or do American Cut and some of the other brands offer growth opportunities as well?

I actually think that American Cut and Dolce are far more scalable than Scarpetta. I think Dolce could go in every major city in this country that wants authentic Italian food that is simple yet high quality for a great value. I think American Cut isn’t as scalable as Dolce, but the idea of an elevated new American steak restaurant will certainly find a tremendous audience, both domestically and globally.

Scarpetta is our most specific and unique concept. I would say it’s not an Italian restaurant, and it’s not an American restaurant. It is a kind of modern, nouvelle, international approach to Italian cuisine. Therefore, it’s quite unique, and that uniqueness makes it less scalable than some of the others.

As LDV has grown, is it more difficult to remain involved in all aspects of the business?

I am all in on conceptualization, design, construction, uniforms, and music – all the programmatic elements that create a restaurant, whether it’s in London, New York, or Miami. No matter where we end up, I will always be involved in that aspect.

The challenge is building a team that understands the LDV culture and spreads the gospel, so to speak. We just spent the last month in our corporate office here in New York with six of our new London team members, and we went to Scarpetta every night, getting a true crash course in becoming a part of our culture.

Eight of our corporate team will go to London when we open and spend anywhere from one month to a year there. It is exciting bringing new people into our fold and having the opportunity to really connect with them and have them become a part of our culture. I don’t intend to walk the floor of the London dining room five nights a week; it’s not realistic. However, I will go all in during the development stage and really invest in defining the culture. To be honest, all the visits to London are quite fun for me.

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VOLUME 42, NUMBER 3

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Delivering the Bare Maximum An Interview with Jennifer McLennan, Global Brand Leader, Delta Hotels EDITORS’ NOTE Jennifer McLennan has had a long career with Marriott and has served as Senior Director, Innovation, Design and Development, Director of Design and Development, Resident Manager at JW Marriott Starr Pass Resort & Spa, and Assistant General Manager. McLennan received her M.B.A. with a concentration in strategic design from Philadelphia University and her B.A. in hospitality administration/ management from University of New Hampshire at Manchester.

We recognized that there was a unique opportunity for Marriott to acquire the brand because there was an entry level in Marriott International’s portfolio of full-service hotels between the Courtyard and Marriott brands.

It has been three years since Marriott acquired Delta and the brand has grown exponentially.

This opportunity delivers a relevant brand experience that drives loyalty among the reliability and well-being segJennifer McLennan ments of frequent business travelers and delivers a profitable economic model that has allowed us to drive growth for our owners or COMPANY BRIEF One of North America’s lead- investors. ing four-star brands, Delta Hotels by Marriott Are there consistent characteristics in (deltahotels.marriott.com), has more than 60 each Delta Hotel or are the hotels customized locations in gateway cities across the U.S., Canada, within the local communities and markets?

Europe and Asia, and was acquired by Marriott In general, Delta Hotels may have a consistent International in 2015. Delta Hotels’ distinct style of design in terms of what we offer guests, but from simple made perfect provides guests with exactly city to city, we try to pull in the local feel. what they need for a seamless travel experience. The We are focused on providing seamless flow for brand’s invitingly familiar rooms, free Wi-Fi and our guests throughout the brand, which fosters our convenient dining options offer travelers a com- guests’ ability to achieve the purpose behind their fortable and stylish place to stay. Delta Hotels by hotel experience. Whether that is business or leisure, Marriott is proud to participate in Marriott Bonvoy, we allow them to achieve what they set out to do. the new name of Marriott’s travel program replacing We call it delivering the bare maximum – we Marriott Rewards®, The Ritz-Carlton Rewards®, are focused on delivering the critical elements that and Starwood Preferred Guest® (SPG). The pro- deliver high-impact value for our guests. gram offers members an extraordinary portfolio In Delta Hotels, we offer free bottled water of global brands, experiences on Marriott Bonvoy and free Wi-Fi. The Delta Pantry is a high-end Moments and unparalleled benefits including residential kitchen that allows our Marriott Bonvoy earning points toward free hotel stays and nights guests a chance to keep them in the flow and grab toward Elite status recognition. Efficient design, something to eat to start off their day. One can stop complimentary water and personalized service are by the Pantry on the way to their meeting or when just a few elements that guests can experience at heading back to their room.

Delta Hotels. Delta Hotels by Marriott has also partWill the growth of the Delta Hotels nered with Soapbox© to provide premium, sustain- brand primarily be in the U.S. and Canada or able bath amenities that give back to communities are you focused on other global markets for around the world. As part of this partnership, Delta expansion?

Hotels offers in-room amenity kits by Soapbox.

The growth story for this brand is really excitEach kit corresponds to a soap donation that helps ing. We have about 63 Delta Hotels opened globan area or organization in need. Kits also contain ally. In 2019, we have plans to open a new hotel a unique code that guests can use online to look up approximately every 14 days. which regions the donations will help.

Much of the expansion has been in the U.S. – we have 12 new hotels in the U.S this year.

Will you discuss the impact of Marriott’s However, we are also looking at four new hotels in purchase of Delta Hotels?

Europe, three in the U.K. and one in Turkey.

Delta began in 1962, and since that time, the We have two new builds opening in Canada brand expanded from one hotel in British Columbia as well, so we’re excited about the expansion into to a full-service hotel brand across Canada with global markets for this particular brand. properties in all of the provinces from the Pacific How does Delta Hotels approach its to the Maritime. efforts in regard to corporate responsibility?

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The entrance of a Delta Hotel by Marriott

In 2018, we were proud to team up with a new amenity partner, Soapbox soaps. They provide premium bath products to our guests worldwide and they donate soap to communities in need worldwide as well. The collaboration between Delta Hotels and Soapbox will provide an estimated 1.4 million bars of soap to communities across the globe as a part of their Buy One Give One program. Each amenity kit will include a unique product code that our guests can enter into their phone or computer and discover exactly where that particular kit’s contribution is going.

This project furthers Marriott International’s new sustainability and social impact platform, Serve360, which is dedicated to developing opportunities to support sustainable and responsible operations throughout the world.

Our associates are really excited about this program, as are our guests, and it’s such a great opportunity for us to be able to give back.

Will you discuss the success you have had in attracting talent to support Delta Hotels’ growth?

Our success comes from the focused hours we put into training. As a brand, we have gone back and identified that purposeful service is really where we can make a difference.

When someone comes to a Delta Hotel as an associate, they start off with 10 hours of in-class training time and then spend anywhere from five to 15 hours reinvesting in that training annually.

This training addresses how we respond to, treat and interact with our guests and ensures that our guests receive the purposeful service that they deserve.

How do you focus your time in leading the brand?

I spend much of my time partnering with our development and our design teams as we continue to expand the brand globally. That is one of the best parts of my job.

My background though is centered around operations, and I have worked in operations at many of our different hotels over the past 22 years with the company. We will continue to refine how our operation teaches and inspires our associates to take care of our guests, and enhance the tools we give them to work with. This year, along with growing the brand, we will continue to build out the operations perspectives and standards that will allow our team to deliver on our brand promise of purposeful service, while better preparing us for the growth of the brand.

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VOLUME 42, NUMBER 3

Service and Design An Interview with Michael Schulson, Founder and Chief Executive Officer, Schulson Collective EDITORS’ NOTE Michael Will you discuss your vision for Schulson is the chef and r escreating Schulson Collective? taurateur behind the Schulson Twenty years ago, people would Collective (michaelschulson.com) say, “we’re going out for dinner and restaurant group. His imaga movie.” Today, life has transformed i nation and vision have made into just going out for dinner, which him one of Philadelphia’s most has transitioned into a form of entersuccessful hospitality protainment. As I looked at this, I quesfessionals. Schulson is the tioned what I needed to do to create owner of day-to-night destinaentertainment when someone goes tion Double Knot; the expanout to dinner. I decided this involves sive Independence Beer Garden; service and design, so when an indiMichael Schulson Sampan and the adjacent Graffiti vidual or a group walk into one of Bar; and serves as chef-partner our venues, they feel they have been at Izakaya at Borgata Hotel, Casino & Spa transported to a place where they will have a in Atlantic City. Schulson Collective’s p o r t - unique experience. folio also includes the new-AmerThat is the avenue we have always looked i can spot, Harp & Crown, in Philadelphia’s at and what our business model is about.

Rittenhouse Square, Monkitail, and cockWith much of the dining experience tail lounge, Nokku, at The Diplomat Beach today focused on providing entertainResort in Hollywood, Florida. Most recently, ment, is there still an appreciation for the notable Philadelphia restaurant Osteria the quality of the food offering at your was added to Schulson Collective as well as restaurants?

DK Sushi, the fine-casual sushi concept If one goes to a restaurant with no ambilocated at the University of Pennsylvania. ance, the service has to be great and the food Today, Schulson teams with his wife, Nina, needs to be spectacular because it’s all about in their ef forts to expand the business. the food.

Schulson graduated fr om the Culinary If we create an ambiance where people Institute of America and worked his way walk in and find that the place is amazing and u p t h e c u l i n a r y c h a i n o f c o m m a n d i n say that they can’t wait to bring their friend or such acclaimed restaurants as New York’s partner back, we’re already starting on a differPeacock Alley at the Waldorf-Astoria Hotel, ent plane. If we can also nail the service and D a v i d B u r k e ’ s P a r k A v e n u e C a f é , a n d the food, it becomes a unique experience that Philadelphia’s Le Bec-Fin and Susanna Foo. people will talk about and this creates a buzz Most recently, Schulson Collective opened around it.

Giuseppe & Sons, the Center City collaboraAs a Philadelphia-based company, will tion with the Termini family, located next growth come from taking Schulson’s existto Harp & Crown. It mimics the operation ing concepts to other markets or will you of Double Knot, with a cafe upstairs and a create new concepts in Philadelphia? more refined restaurant below street level.

The first goal was to grow a great team Schulson also recently opened Alpen Rose, a in Philadelphia and that required that we build steak boutique on 13th Street and will soon be enough restaurants in the market to support a opening Via Locusta, targeting the Rittenhouse CFO, COO, Director of Operations, Director of neighborhood of Philadelphia with a concept Restaurants and facilities directors. Now that that celebrates old-world Italian roots, life- we have the infrastructure, we can grow outside style, food and decor. Schulson has starred in of Philadelphia. two original series, TLC’s Ultimate Cake Off We ar e now in Atlanta City at the and Style Network’s Pantry Raid, and has also Borgata and in Florida at The Diplomat appeared as a guest on TODAY, The View, Beach Resort. We are also looking in New The Rachael Ray Show and FOX News. He York and in D.C. has been featur ed in a wide range of pubIs brand awareness and building brand l i cations including The New York Times, recognition for Schulson Collective imporThe Wall Street Journal, USA Today and tant or is it more about the individual resMen’s Fitness. taurant brands?

VOLUME 42, NUMBER 3

Michael Schulson at work in the kitchen (left); Giuseppe & Sons restaurant in Philadelphia (above)

We try to give each restaurant its own brand identity. However, we love it when someone walks out after an amazing meal and asks if we have any other restaurants so we can mention the Schulson Collective. Our only other Schulson Collective branding is on our to-go bag.

How important is it to have a culture that is innovative and constantly evolving?

If we’re not growing, we’re failing. To me, every single day we need to figure out a way to do something unique. We have a list of core values that we live by. We live it, breathe it and talk about it continually. It looks to foster ownership thinking – think, act and complete tasks like an owner. We consistently teach, train, engage and work to amaze and delight coworkers and other guests. We foster teamwork, which involves relationships, growth and development. We also inculcate people to be hands-on and feel that no job is beneath them, to be present and engaged and, most importantly, to practice respect and kindness.

You also developed Schulson Catering.

Will you highlight this offering?

The catering was a huge opportunity that came to us because people were constantly going to the restaurants for catering events and asking us if we could cater off premise.

We now have the ability to offer food from our restaurants at other venues through catering.

Are you still able to practice your passion of being a chef given the growth of the company and all of your other responsibilities?

It has been beneficial to do so because, in the end, everyone sees me as a chef who has been in restaurants his entire life. When I walk into the restaurant and know what is going on, I gain respect.

I am involved with the food in the kitchen and we do tastings in the restaurant. I will sometimes cook with the team, which helps build camaraderie. Everyone loves to see someone who has all these employees actually in there every day with them.

In the end, I love cooking, but I also love business. It drives me daily. I love looking at numbers and planning for growth.

My business partners are successful businesspeople, be it in sports franchises or trucking companies or apartment complexes. Their expectations of the P&Ls, monthly summaries and reports I send them has pushed me to be a better businessperson. I love that part.

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Modern Luxury An Interview with Kaila Pugliese, Director of Sales and Marketing, InterContinental New York Barclay

The Grand Staircase (left); view of the Chrysler Building from the Penthouse Terrace (above)

EDITORS’ NOTE Kaila J. Pugliese We have history – we’re luxury, joined the pre-opening team of the but we’re not stuffy luxury. We’re InterContinental New York Barclay modern luxury and are attracting the in August 2015. Prior to this, she young traveler who wants the technoheld various positions at Restaurant logical touchpoints and a sexy, more Associates, AlliedPRA and the iconic modern feel, while making sure we Waldorf Astoria New York where can accommodate the service and she served as Senior Sales Manager product expectations of our older, disand then Director of Association tinguished clientele.

Sales. She joined the renovated Is your competitive set mainly Barclay as Director of Group Sales Midtown East properties or is it and transitioned to Director of broader?

Kaila Pugliese Business Development befor e It is definitely broader today, assuming her current role in early especially with technology open2019. Pugliese received her degree, cum laude, ing access. I don’t think travelers today identify from West Virginia University and earned a a certain area or a certain property they want Masters Certificate in Financial and Revenue to stay in.

Management from Cornell University School of This means that we compete with some of Hotel Administration. the big boxes that are more traditional conference hotels, but we also compete with luxury, PROPERTY BRIEF Since first opening its doors high-end, boutique properties. in 1926, the InterContinental New York Barclay It speaks back to how the hotel was origi(intercontinentalnybarclay.com) has welcomed nally built in 1926. We continue to evoke that guests to enjoy a luxurious residential-style expe- residential feel. The lobby is very intimate, yet rience in the heart of the city. Today, the property we have 703 rooms and 20,000 square feet of remains one of Manhattan’s preeminent luxury meeting space that the independent guest may hotels. Combining sophistication and contem- not even be aware of. porary design, while staying true to its original This provides us with a lot of opportunity.

Federalist style details, The Barclay exudes conHow important is the suite offering at fidence and warmth, delivering the same resi- The Barclay? dential feel with modern comfort and flexibility We have fewer suites than we did prior to introduced to the world in 1926. renovation. We used to have 86 and we now have 29 plus our specialty suites.

How is the InterContinental New York Barclay Today, it’s very important that our clientele positioned in the market and are you happy generate a buzz, also known as the Instagram with the current product? effect. Our specialty suites are critical for this.

The thoughtfulness that went into every We have a Penthouse Suite with a 1,200-squaredesign element that was implemented during foot outdoor terrace and a Presidential Suite, the two years the hotel was closed for renova- which are our premier suite products. Our tion was remarkable. standard suites are also very beautiful and As we move into our third year of be- residential. ing open following the renovation, we’re in a Occupancy of the suites has doubled very good position. Last year was a huge suc- over the past two years, and now we’re cess from a financial standpoint, from a service looking to do more VIP client events in the standpoint and from an employee standpoint. suites, which generates more guest involveWe exceeded all of our benchmarks. We have ment and interaction, also opening more opset the bar even higher for this year and have portunities to invite in our nearby clientele for identified how we intend to elevate each ele- a unique experience. ment to bring The Barclay to the next level.

New York City is very competitive from How broad is the target market for The a food and beverage standpoint. Will you Barclay? highlight this area for The Barclay?

Today, we’re seeing our older generation It’s definitely important and not just of guests traveling with the younger generation, how it looks and tastes, but also how it makes and that is where we have hit it out of the park. you feel.

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Our food and beverage outlet extends on our residential feel. Certain of the younger generation wants to be immersed in New York City and its culture, so we work to evolve that into our food and beverage offering.

Our Executive Chef, Peter Betz, was previously with The Waldorf and has done tremendous things in bringing those local New York City staples in and incorporating them into our catering and banquet programs, as well as our food and beverage outlets at The Gin Parlour.

There are many new, exciting developments coming in this area in the next few months, with special attention on increasing our local partnerships.

With the focus today around health and wellness, how important is it to have a spa offering and an updated fitness facility?

We have to offer those amenities and accommodations if we want to play in the luxury space. We don’t need to have a 2,000-squarefoot gym, but the products we have in the gym and services we are able to provide from a concierge level – be it a private trainer or yoga on the roof – have to be top-notch. We will be incorporating additional partnerships as we move into 2020, which will enhance our offerings.

How challenging is it to control your messaging today with social media and sites like TripAdvisor?

There is much less control and everyone thinks they are a critic at this point, and they are – our guests are our number one stakeholders. We have to make sure that each one of them is looked after and that we fully address any concerns as soon as we receive them.

It is critical that we cascade our messages and drive it through all of our touch points from Instagram to TripAdvisor to social media to guest arrival to when they’re in the room through departure. It is essential to make sure we are cohesive and addressing that full circle.

With booking windows becoming shorter, is it more difficult to forecast and budget for the future?

It’s extremely challenging. I anticipate that this will continue to be a trend. The best that we can do is to educate and communicate and make sure the team knows where we stand at all times. We want to make sure they appreciate the positioning and what metrics we have to achieve and then empower them to make the decisions necessary to deliver those results.

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VOLUME 42, NUMBER 3

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Bremont’s Journey An Interview with Giles English, Co-Founder, Bremont Watch Company

SOLO 34 AJ-MOP ladies watch (left); Bremont MB 10th Anniversary watch (above)

EDITORS’ NOTE Flying have delivered beyond historic aircraft has been what we felt we could, in Giles and Nick English’s which is really exciting. blood from a very early However, we never age, as has their love for thought it would be easy watches and all things for many reasons: one, mechanical. In cr eatwe manufacture as much ing the Bremont brand, as we can in Britain. The the brothers were lookchallenge of a watch coming to produce beautifully pany is that we are in a made, robust timepieces very high-tech engineerinspired by their history ing business. We have to Giles English in aviation. The brothers buy high-cost machines started working together and machine high-accuon the watch designs following the death of racy components, all while building a brand. their father in a vintage-aircraft accident in We also built our own boutiques, so we 1995, in which Nick broke over 25 bones. It have to be multifaceted in what we’re trying to was a few years later that the brothers made deliver. an emergency landing in their 70-year-old It’s been a journey and we have achieved plane in a pea field in Northern France. The so much, but it’s all based on the long-term field belonged to a wonderful old farmer, M. vision we’ve always had.

Antoine Bremont, who took them in, showed When you look at new product offerthem his workshop and shared with them his ings, are you primarily building off the love of clocks as well as planes. The brothers existing collections or are you developing set out to make a British watch that would not new collections? only last a lifetime, but would be tested beyond We have focused on staying true to our the normal limits and could match the best brand. We get questions from every retailer asking Swiss watches for quality. why we don’t put diamonds on a particular watch or follow another trend, but it’s easy for a comCOMPANY BRIEF Bremont (bremont.com) is pany and brand to end up looking very generic. an award-winning British company producWe set out to design something unique ing beautifully engineered chronometers at its and we have been true to that all the way headquarters in Henley-on-Thames, England. through. However, we do get pulled and Time began for Bremont in 2002, when it pushed around. embarked on a journey to make beautifully The challenge is to remain fresh and concrafted pilot’s watches of exceptional quality. tinue to launch new products every year. We Like all things mechanical, the timepieces had want people to pick up our watches and know to be tested beyond the normal call of duty. The they are Bremont as opposed to wondering watches in the core range are all chronometer what they could be. rated and Bremont is one of the few comA big part of our development, which we panies offering a three-year warranty on every haven’t fully realized yet, is creating a Britishproduct. Immensely precise, reliable and dura- made movement that we’ve been working on ble, Bremont watches are hand built in limited for four years. When we finally have that done, numbers. Each is designed to appeal to those hopefully in the next 12 months, it will reprewho share a passion for – and appreciation of – sent a massive step up for us and we can sit the innovation and mastery behind a beautiful back and be proud of what we have achieved. mechanical wristwatch.

Will you discuss the new releases that Bremont will be introducing to the Has your vision for creating Bremont market? remained consistent throughout the 17 Our big new release this year is the Armed years the company has been in existence?

Forces collection. The past 10 years, we have We have exceeded our original dream been making bespoke watches for the military even though we dreamed high, and we knew around the world. This accounts for about 22 how difficult it would be to get to that point. We percent of our business.

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This year, the MOD formally announced Bremont as their official partner, so for the first time we can sell commercial military watches to the general public.

We have come up with this militaryinspired design collection for each of the three armed forces. It is a big launch for us and it has been very positive.

We also have an Anniversary MB watch which celebrates 10 years of our partnership with Martin-Baker, a British company manufacturing over 70 percent of the ejection seats for the air forces globally. We are making 310 of these watches, which features a titanium barrel and the ejector seat from an F-35 fighter jet engraved into the case back.

The other key collection for us is the ladies collection, which is the SOLO-34, a 34mm ladies watch collection, which for the first time features a mother of pearl dial.

What has made stand-alone boutiques so critical as a part of Bremont’s brand building efforts?

Brick-and-mortar retail is having a very hard time, but we’re selling predominantly to men from 30 to 65 and, at the price point at which we are selling, I still think people want to physically hold the watch rather than just see it online.

For us, retail is also about customer service. If someone wants to get their watch serviced, a boutique enables us to have a point of contact. Brands need that contact because that is how we build loyalty and trust with customers.

You co-founded Bremont with your brother, Nick. What has made your relationship work so well?

I’m incredibly lucky to have a brother who has the same interests as me which is why it has worked so well.

There are two things that have led to this. The first is trust. I can trust my brother and know he has my back and he’s going to cover me. We look after each other and that’s incredibly important in business.

The second is that the brand is built on what Nick and I love, which is designing the product together. Because we like the same things, it’s very easy. If I design something, I will take his input over it seriously.

Ultimately, we make those decisions very quickly and get to the end product we’re happy with.

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VOLUME 42, NUMBER 3

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Creating the Unforgettable An Interview with Peter Yenawine, President and Chief Designer, Crystal Signatures

EDITORS’ NOTE A former master designer at Steuben, Director of Design at The Franklin Mint, Director of Design at Swarovski, and with concepts executed by the likes of Baccarat, Lenox, Orrefors, Rosenthal, Swarovski, and Val St. Lambert to his credit, Peter Yenawine has fulfilled requests from U.S. presidents, Hollywood celebrities, sporting legends, business icons and the Smithsonian Institution among others.

with the times. This initiated what I think is a very exciting development that we’re involved in now, which is highend 3D printing.

Will you discuss this development and how you are implementing 3D printing into the business?

3D printing has been developed over the past 20 years, but was not even talked about until the past 10 years. It’s now referred to as additive manufacturPeter Yenawine C O M PA N Y B R I E F B a s e d i n ing, which is the most exciting manuBethlehem, Pennsylvania, Crystal facturing direction since Henry Ford Signatures (crystalsignatures.com) designs and developed the assembly line. manufactures high-quality, custom-designed We had been using it on individual projawards and gifts and installations for a variety ects and learning as we did. My business backof occasions. After a client submits a proposal and ground then kicked in and I knew we had to budget, Crystal Signatures conceptualizes, designs design for a market. We are still focused on and produces a sketch for review and fine-tun- the corporate gift market, but now we are also ing. Once it is approved, Crystal Signatures gen- addressing the private label market, which is erally delivers the finished product within two exclusive products for other companies such as weeks. Founded in 1996, the company has cre- drinkware and glassware and lighting. ated custom pieces for corporate clients includHow challenging has it been to get this ing Cigna, Coca-Cola, Federal Express, General message out and how do you plan to conMotors, Lockheed Martin, IBM, and Rolls-Royce tinue to build awareness around this evoluas well as The ESPY Award. tion of Crystal Signatures?

Hopefully this will be a market that Will you discuss the history and heritage of explodes exponentially. However, until very Crystal Signatures and has the company’s recently, 3D printing has been a slow process. focus and mission remained consistent?

There are people working day and night develIt has remained consistent because we cre- oping new ways to speed it up, so we are trying ated this company by investing in a new manu- to create items in known market areas that are facturing process that allowed us to enter a so dramatically new that we can get press that marketplace where quick turnaround was a must leads people to want to come and talk to us. and few other companies could accomplish this.

How will this impact the traditional That ability has allowed us to continue to pieces that Crystal Signatures has been grow in the corporate gift business where we known for over the years? only have a few weeks to get things done.

The one thing our products have always We created a manufacturing facility on had in common is great design, extraordinary which we have two patents, and it’s unique in quality and perfect use of materials, and none the world. That is our base and we have con- of that is going to change. If we combine additinued to use that as a springboard. However, tive manufacturing with new technology, we’re when product lines get old and tired, we are not creating new markets – we’re feeding the unique enough that we can react quickly. market with new items.

Changing times always have an impact on We’re very optimistic that these are going our business, whether that’s a political change or to be highly appreciated, and it maintains socioeconomic. Because we are a design-based our position of using material in the best way manufacturer, we can always adjust to these possible. changes and it’s our biggest advantage over any How important has it been to create a other company like ours. The top management culture that adapts to change and is built on of the company discusses this constantly, so we innovation? sometimes have to develop a new approach if Our team realizes that change and innovawe’re going to continue to grow and stay current tion is critical. This has always been the case.

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Butterfly (left) and The ESPY Award (above) created by Crystal Signatures

We have always tried to be innovative with any new product introduction; this new development has simply given us a new palate. If one is a painter and someone gives you a brand new palate with colors, a good painter is going to want to learn all about those and apply them to their work.

Your business is about gifts that create memories. How important is it that this doesn’t get lost in today’s world with all of the focus on technology?

Our tagline since day one has been “when the occasion requires the unforgettable.” That is still our mantra. All I’m doing is adding components that I think will make it easier to have those unforgettable occasions.

Nothing has changed there – we just look for new ways to express it. We’re in a very exciting time where there are truly new things going on.

I’m looking at a piece of porcelain that was 3D printed. If you had said that this was possible five years ago, no one would have believed you.

The revolution has started.

Will you discuss the impact the private label market has had on the business?

It’s huge, because private label has their own marketing and distribution which vastly expands our reach, and yet they also want innovation and new products for their marketplace.

There is a mammoth Frankfurt show in February and August every year and there is another huge one in Paris. All the crystal, tableware, silver and 3D products are displayed in these incredible spaces, but much of it is the same and has evolved very little.

When we looked at our product offering, we evaluated whether we wanted to add another product line. We decided that we did not; we wanted to add more meaning. We developed something where a corporation’s own identity would be much stronger with the addition of our new products.

We’re innovating for our marketplaces, and if some of them are thinking outside of the box, they will ask us to come and do it, because that is our mantra. We still find it amazing that corporate America in general spends millions of dollars advertising their brands and corporate mantras externally and yet forgets to send this same message internally when they are awarding the ones that make it all happen. We are here to help corporate America spread their message through great design, and we are really good at it.

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VOLUME 42, NUMBER 3

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