the stone stepping - Member | SOA Book Review: The Progress Principle by Joseph Paesani PERSONAL...

Management & Personal DevelopmentSection

steppingstone

Creating a Positive Corporate Culture: An Interview with S. Chris EdmondsBy Brian Pauley

the

I S S U E 4 9 F E B R U A R Y 2 0 1 3

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CHAIRPERSON’S CORNER

3 by Nicholas Jacobi

BUSINESS MANAGEMENT

1 Creating a Positive Corporate Culture: An Interview with S. Chris Edmonds by Brian Pauley

7 Entrepreneur Actuaries … Do Any of These Ring a Bell? by Wayne Bidelman

9 Leadership’s Role in Effective Business Development by David Wolfskehl

CAREER DEVELOPMENT

11 Are You Overqualified for the Job? by John West Hadley

13 Working from Home by Mary Simmons

COMMUNICATION SKILLS

17 The Almighty Elevator Pitch, Part 2: Making it Sing by Eugenia Kaneshige

21 Book Review: The Power of Nice by Efrem Epstein

PEOPLE MANAGEMENT

22 Leadership Tip: Use Your Entire Toolbox by David C. Miller

24 Book Review: The Progress Principle by Joseph Paesani

PERSONAL DEVELOPMENT

25 The Power of Practice by Carlos Arocha

27 Everybody Cheats, at Least Just a Little Bit by Mary Pat Campbell

29 All In: What Can You Learn from an Actuary Who Won $2.85M? by Doreen Stern, Ph.D.

Chris Edmonds: I learned about the power of values from a best boss back in my nonprofit management days (’80s and early ’90s). He aligned our work team to clear values and performance expectations while at the same time held us accountable to them. It was a terrific experience and one that I’ve been coaching teams and organizations to duplicate in the years since.

BP: What cultural issues do you commonly find with your clients?

CE: Most clients come to me with engagement issues. They don’t define those as “culture” issues. Most senior leaders don’t understand the impact that culture has on performance and engagement, so they don’t think they have a culture “opportunity.”

BP: Share with us the best culture you have seen. What made it great?

CE: I’ve seen a number of high-performance, values-aligned cultures, from industries as widely varying as manufacturing, pharma sales and insurance. When I’m able to educate senior leaders about their responsibility to proactively manage

O Our world is filled with projects, meetings, spreadsheets and the next big deadline. Leaders have the additional responsibility

of leading teams to accomplish everything. With our minds and workdays filled with so much, it is tempting for leaders to overlook a critical responsibility: creating an inspiring, results-achieving work environment. To accomplish this, leaders must pay close attention to culture.

To help us improve here, I’m pleased to interview corporate culture expert, S. Chris Edmonds. Edmonds is the author of the book #Corporate Culture tweet. He’s the co-author of Leading at a Higher Level (revised and expanded edition), #Positivity at Work tweet and #Successful Corporate Learning tweet. He writes a weekly blog, Cool Culture, that you can find on the Web at www.DrivingResultsThroughCulture.com. Chris has been a significant influence on my leadership development, and I’m excited to share his knowledge with the actuarial community.

BRIAN PAULEY: CHRIS, YOU CLEARLY HAVE A PASSION FOR HELPING PEOPLE IMPROVE THEIR CORPORATE CULTURE. WHERE DID THIS COME FROM?

2 | FEBRUARY 2013 | the stepping stone

Issue Number 49 • February 2013

Published quarterly by the Management and Personal Development Section of the Society of Actuaries 475 N. Martingale Road, Suite 600 Schaumburg, Ill 60173-2226 Phone: 847.706.3500 Fax: 847.706.3599 Web: www.soa.org

This newsletter is free to section members.

OfficersNicholas JacobiChairperson

Jennifer FleckVice Chairperson

Brian E. PauleySecretary/Treasurer

Council MembersAnju Gupta-LaveyScott Haglund Sophia Linh DaoKarin Swenson-MooreSarah OsborneStephanie Weist

Newsletter Editor

John West Hadley, John Hadley Associates 8 Lori Drive Somerville, NJ 08876-2517 ph: 908.725.2437 email: [email protected]

Content ManagersBrian E. Pauley2013 Health Spring Meeting Coordinator

Nicholas Jacobi2013 Life & Annuity Symposium Coordinator

Jennifer FleckWebsite Coordinator

Board Partner Darryl Wagner

SOA StaffKaren Perry, Publications Manager [email protected]

Meg Weber, Staff Partner [email protected]

Jill Leprich, Project Support Specialist [email protected]

Erin Pierce, Graphic Designer [email protected]

Published by the Management and Personal Develop-ment Section Council of the Society of Actuaries

This newsletter is free to section members. Current issues are available on the SOA website (www.soa.org).

To join the section, SOA members and non-members can locate a membership form on the Management and Personal Development Section Web page at www.soa.org/mpdsection.

This publication is provided for informational and educa-tional purposes only. The Society of Actuaries makes no endorsement, representation or guarantee with regard to any content, and disclaims any liability in connection with the use or misuse of any information provided herein. This publication should not be construed as professional or financial advice. Statements of fact and opinions ex-pressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries.

© 2013 Society of Actuaries. All rights reserved.

steppingstonethe

The Stepping StonePublication Schedule

Publication Month: May 2013 Articles Due: February 20, 2013

2013SECTION LEADERSHIP

The Value of Section Membership By Nicholas Jacobi

CHAIRPERSON’S CORNER

the stepping stone | FEBRUARY 2013 | 3

In conclusion, I can welcome you all to the 2013 season of the MPD Section. With every issue throughout the year I’ll be updating you on the progress of the council, the achievements of our members, and the leadership events we have upcoming. As always, feel free to contact me directly through the LinkedIn group with any thoughts, ideas or suggestions. l

L eaders build talent for the future even as they manage for today’s needs, always asking themselves, “Am I prepared for what’s

next?” As they do so they invest in themselves by constantly learning better ways to lead others, their company and themselves. The goal of the section, its council and the Society of Actuaries (SOA) is to give our members the tools to do just that through the use of the educational outlets available through the SOA. In addition, we are exploring additional features that we can add to section membership this year that are outside the normal scope of the SOA.

As the Management and Personal Development (MPD) Section embarks on its 2013 season, we can reflect on what we’ve learned and accomplished for our members in the past and determine the section’s future direction through the results of our recent member survey. The section had over 200 respondents to the yearly survey this year. The results of our survey indicated that we’ve been successful in providing our members with valuable experience and ideas through our Stepping Stone newsletter, educational sessions at SOA meetings, and book reviews and discussions. All notes indicate that The Stepping Stone is a key benefit of section membership and that the annual breakfast/book review and networking sessions at SOA events are also well received.

In the future we feel that we have the opportunity to improve the section experience by adding additional webcasts, focusing on topics involving leadership and negotiation skills, and continuing the high quality of The Stepping Stone newsletter. It is worth noting that the idea of additional section webcasts was received with great enthusiasm, and that individuals as well as companies are interested in pursuing this option, especially if they can qualify for professionalism credits. In addition, we hope to offer our members additional benefits over the next year with a greater use of Web-based communications, including the MPD website at www.soa.org/mpd, and our new LinkedIn group at http://www.linkedin.com/groups?gid=4397530.

Nicholas Jacobi, FSA, CERA, is an actuary in the Disability Finance Unit of Metropolitan LifeInsurance Company. He can be reached at [email protected].

to wow internal and external customers. That’s an unusual mix!

BP: In your writings, you’ve stated that leaders should spend at least 50 percent of their time on culture-aligned activities. Since most leaders spend a majority of their time on results-aligned activities, I’m sure this is a tough pill to swallow. How do you convince leaders to alter their time allocation so dramatically?

CE: Leaders are doing the best they can. All they know is how to manage production and results, so that’s where they put in their time. When their organization’s culture focuses so heavily (usually exclusively) on production, that’s not a surprise. What I need to accomplish is a shift in leaders’ hearts, heads and then hands. When they understand their primary responsibility is to create a safe, inspiring work culture, and they proactively do that (with hours a day invested in connections, communication and praising), productivity grows by leaps and bounds.

BP: Fire drills seem to be pervasive in company cultures. How can employees reduce firefighting when it is such a strong part of the culture?

CE: Panic isn’t pretty in a workplace. Reactionary leadership exhausts leaders and followers. When everything is a dramatic emergency, people grow numb. Team leaders can insulate their staff from a firefighting culture by making things safe, sane and inspiring in their work team, where they can.

BP: I’m sure a number of readers would love to improve their organization’s culture, but would push back that management wouldn’t support these efforts. What do you say to those readers?

CE: If you’re a leader, create a “pocket of excellence” in your team. As noted already, insulate

their desired workplace culture, remarkable things happen. A recent example is a division of Wal-Mart, with 300 stores and 85,000 associates. During the recession, Wal-Mart did great globally. This Midwestern division credits our culture change process with helping them boost associate opinion survey scores, customer experience scores and profits, nearly doubling those of any other U.S. division during that time frame.

BP: What about the worst? What made it challenging?

CE: I’ve seen too many lousy cultures. The worst case scenarios occur when there are inconsistent performance expectations, inconsistent accountability for performance, no values expectations, and little accountability for values demonstration. It’s a free-for-all, everyone for himself or herself. The “I win, you lose” culture creates a cutthroat environment.

BP: If you had only an hour to drive a team toward a better culture, what would you tackle first?

CE: An hour introduces the concepts—awareness is all that’ll happen in 60 minutes. If I can inspire further conversations by educating about best practices of a high-performance, values-aligned work environment, then that’s a win.

BP: You frequently mention these high-performance, values-aligned teams. Explain them to our readers. What makes them particularly effective?

CE: The combination of high performance and values alignment enables teams to demonstrate great productivity along with authentic consideration and cooperation. Teams with “one heart, one mind, one voice” are able to align thinking, efforts and accomplishment to declared opportunities and strategies. In such teams, everyone is looking to do their jobs, help each other, and look for ways

POSITIVE CORPORATE CULTURE | FROM PAGE 1

Brian Pauley, FSA, MAAA, is a managing actuary at Humana in Louisville, Ky., and has a passion for leadership development and personal growth. He can be reached at [email protected]. Follow him on Twitter using @BrianEPauley.

S. Chris Edmonds, MHROD, is a speaker, author and senior consultant with the Ken Blanchard Companies. He is Blanchard’s culture expert and has helped numerous clients create a high-performing, values-aligned culture using Blanchard’s proven process. He can be reached at [email protected]. Follow him on Twitter using @scedmonds.


Making your team culture safe and inspiring brings many benefits.

time and time again (e.g., Jim Collins and Jerry Porras’ Built to Last). When an organization’s culture treats its members as trusted, respected and valued players, those players apply discretionary energy to opportunity. That energy translates into wowed customers and increased profit. See Tony Simons’ Integrity Dividend.

Where a culture treats employees as cogs in a wheel without a brain cell, people won’t contribute their ideas. Collective smarts is hard to find in those organizations.

BP: The Society of Actuaries represents a profession based on specialized technical training. What advice do you want to give to leaders who desire to improve their corporate culture, but work in an environment where subject matter expertise is very highly valued?

CE: The folks pressing buttons on those keyboards? Entering data and analyzing results? Human. With hearts, minds, hopes and dreams. Leaders—in any profession—who are able to inspire people’s hearts,

your team from the frantic pace and exhausting behaviors embedded in the broader organization’s culture. Making your team culture safe and inspiring brings many benefits. If you’re a team member, it’s not your job to “fix” the team’s or organization’s culture. Be clear on your personal purpose and your personal values. Stay sane by acting on your purpose and values every day. If your job causes values misalignment, proactively look for another role so you won’t have to face that.

BP: One of my favorite books is The Advantage by Pat Lencioni. He makes the case that being healthy is a competitive advantage that allows a company to tap into its collective smarts. Most companies miss this, thinking their woes are due to the competition beating them out in smart areas such as technology, strategy and finance. How do you think culture fits into the grand scheme of organizational health?

CE: I went to grad school with Pat at the University of San Francisco in the mid-’90s—he’s a brilliant thinker. I totally support the idea of organizational health as a competitive advantage—we’ve seen it

CONTINUED ON PAGE 6

BUSINESSMANAGEMENT


mentors to coach me to understand the power of Twitter communities to drive knowledge, sharing and connection. I’ve learned—and continue to learn—how to put best practices for #CoolCulture, #ValuesMatter, #PositivityAtWork, and #Leadership into succinct, actionable quotes of 140 characters or less. I see social media as a means of getting what I know out there. My brand is focused on proactive culture management, and social media helps my messaging stay “front of mind.” l

heads AND hands create a force of will and good that’s pretty awesome to experience.

BP: What personal development activities can technically focused leaders pursue to make the transition to being stewards of corporate culture?

CE: I don’t believe that personal development activities, alone, change behavior—much less create a proactive culture manager. Information is widely available—but knowledge about effective cultures does not equal skills. Find a coach who can get you on the right path and keep you there.

BP: You have a strong social media presence. How has social media affected your work as a culture consultant?

CE: I really didn’t “get” Twitter back in 2009 when I joined. It took a couple of social media

Positive Corporate Culture | FROM PAGE 5


buildup in your business) and lifestyle. For example, if you picked five years out, define the income level you want to have achieved by the end of five years, define your level of wealth five years out, and then also provide a definition of the lifestyle you want to achieve after five years (e.g., wanting a four-day work week for yourself and the ability to take two weeks off a year).

You might think it odd to define the desired lifestyle five years out. The next step is to define what your business needs to look like at the end of five years for you to realize these goals, and you will quickly see a difference in the look of your business if you desire the lifestyle just described versus that of another owner who is happy to work 24/7 until he/she drops!

2. TRANSLATE YOUR PERSONAL GOALS INTO YOUR BUSINESS GOALS FOR THE SAME TIME FRAME.

Define in measureable terms what your BUSINESS needs to look like after (e.g.) five years to realize your PERSONAL goals.

• You find yourself bouncing around like a pinball, not sure how to decide on which task or opportunity to grab next.

• You sometimes feel like your business is

running you, rather than the other way around. • You work really hard every day but feel like

you are not making any progress toward reaching your personal life goals.

• You want to get your business to the next

level, but you don’t know how. • You don’t have an exit strategy, but you know

you should!

T he simple solution to all of these frustrations is something that fewer than 10 percent of all business owners ever do—formally define

personal and business goals and build a plan to reach them. Many of you will stop reading at this point, because you do not believe you need this, you do not know how, or you feel it will be too constraining to you and your business.

There is a simple way to accomplish what I am suggesting; and, as for any of the other rationalizations, I want to point out that NOT having any type of formal plan is the leading cause of the 96 percent short-term failure rate of small, independently owned businesses!

Here is a simple, effective way of setting goals and building a plan to reach those goals:

1. DEFINE YOUR PERSONAL GOALS.

You are the business owner and likely your personal success is tied to the success of the business you own. Therefore, pick a specific time period, preferably something like three, four or five years out. Define your PERSONAL goals with respect to income level, wealth accumulation (and/or equity

Entrepreneur Actuaries … Do Any of These Ring a Bell?By Wayne Bidelman

Wayne Bidelman, FSA, MAAA, is a business coach with AdviCoach. He can be reached at wbidelman@ advicoach.com.

CONTINUED ON PAGE 8


****************************************Write down all the elements of this process! It is amazing that writing things down is proven to increase the probability that they will become reality.

This process provides you a roadmap and a framework for making your regular necessary business decisions—both strategy and actions. Not only will you sleep better at night knowing that you have fought through any previous procrastination, but you now also know that the business actions you are taking today are aligned with getting you to your personal goals.

Get rid of those business owner frustrations using this simple process! l

For example, if one of your personal goals was to realize $120,000 of annual income by the end of five years and a normal net profit margin for your type of business is 10 percent, one of your business goals would probably be to reach $1.2 million of gross sales/revenue.

If your lifestyle goals were similar to the example first used above, you might state a business goal of having one apprentice and one business manager in place within five years (so that you can get away more from the business by then).

3. DEFINE THE KEY CAPABILITIES YOUR BUSINESS WILL NEED IN ORDER TO REALIZE THE BUSINESS GOALS.

Since we are looking longer term, these may be relatively broad, such as enhancing your marketing effort or sharpening up your employee acquisition process. This merely defines the framework for more specific action items in the shorter term. Only define your TOP FIVE capabilities; successfully focusing on just five is better than defining more than five and potentially not having the ability to fulfill any of them.

4. DEFINE 12-MONTH AND 90-DAY BUSINESS GOALS AND ACTION ITEMS ALIGNED WITH YOUR LONGER-TERM GOALS AND KEY CAPABILITIES.

Determine measureable business goals for 12 months and 90 days from right now. These should say where your business needs to be at the end of those periods consistent with reaching the longer-term goals defined in item 2 above.

Then define the top five action items required to reach each of the 12-month and 90-day goals, which must also be aligned and consistent with the key capabilities you defined in item 3 above.

Entrepreneur Actuaries ... | FROM PAGE 7


Leadership’s Role in Effective Business DevelopmentBy David Wolfskehl

others will not. The growth-oriented leader will identify and nurture the employees who show business development potential. The leader will encourage innovation, understand risks, and reward exceptional performance.

BUILDING INWARD Marketing is necessary for long-term success, but marketing campaigns are usually directed outward. They seek to open and deepen markets. Marketing generally does not affect the company culture or prepare the staff for the organic growth that comes from inside the firm.

The effective leader of a business development effort will focus the firm’s attention inward. This is significant because often firms do not invest in training, developing and coaching rainmakers. In fact, when I run a sales assessment on a full-time salesperson vs. a typical rainmaker in a professional services firm, the results are often drastically different. The salesperson also receives the benefits of accountability, ongoing training and coaching from the sales manager. In contrast, the professional will often receive very little support. We end up with a situation that does not maximize the opportunity for a successful business development initiative. Some firms are cutting edge when it comes to their marketing initiatives, but that is only one piece of the puzzle. In addition to exceptional marketing, firms need to nurture the abilities and skills of their rainmakers and prepare them for the firm’s future growth.

KEY BUSINESS DEVELOPMENT SKILLSCompany leaders create an environment that drives performance by motivating staff members so they are passionate about helping the firm grow. Revenues, outcomes and hours are important, but it is a marathon for rainmakers. They require consistent and unwavering leadership and support so they can stay on course and win the race. Effective

E ffective business development requires strong leadership. It needs clear goals and flexible strategies, which can’t be created

spontaneously. Guidance and active involvement from everyone involved is required—especially the firm’s leaders. You must have strong leadership for business development to succeed.

WHY BUSINESS DEVELOPMENT NEEDS STRONG LEADERSHIP To have the most impact, business development efforts require an effective leader who formulates and implements a specific range of activities and initiatives that directly enhance the firm’s growth.

The leader must be able to see beyond this quarter and envision how the firm will grow. The leader needs to understand the big picture—the macro as well as the micro. With a vision for the marathon of business development, he or she knows that a long-term growth strategy includes not only planning for what you intend to do, but also preparing for what you never intended to do because of changes in the marketplace. The leader must be able to identify emerging needs and areas that require specialized niche services, and steer the firm—or a boutique within the firm—to these areas of growth and higher profits.

Controlling and adjusting the budget is important, and must not be allowed to occur haphazardly. Business development is an investment that typically requires a reallocation of budget. An effective leader who has been trained and tested knows how to set priorities and understands that quality, not just quantity, is the way to increase profits. And, once priorities are set, the people and systems must be put in place to meet those goals.

Accountability is a critical component to support growth. Confident leaders hold their people accountable, monitor key performance indicators, demand results, identify their top performers and ensure the firm is investing in their training and support.

At all firms, some staff members will have a proactive business development mindset and CONTINUED ON PAGE 10

David Wolfskehl is presi-dent and CEO of DGW and Associates, the parent company of The Micro-Niche Method, a business development strategy that helps professional services firms achieve accelerated growth. He is also the author of The Micro-Niche Method Narrow Focus—Big Results CPAs. To learn more, visit www.themi-cronichemethod.com or call 732.397.8489.


Leaders must also be willing to listen

to feedback and build a sense of

community that is based on what

they hear.

Transparent evaluation structure. This is critical and includes a willingness to look at the reality of any situation or challenge and avoid wishful thinking that is not based on facts. The effective leader will create this structure so that everyone at the firm knows what to expect. The staff is aware of the rewards for good performance and the consequences for poor performance.

Regular business development meetings for partners. At large firms, these meetings (where no other issues are discussed) are key to keeping management focused and on the same page. At the onset of a business development effort, the emphasis should be kept on a specific portfolio of activities and goals that everyone can buy into and whose effectiveness can be specifically measured.

Key performance indicators. Avoid presenting vague generalities and keep the effort transparent and goal-oriented. If you create a set of key performance indicators and talk about the numbers, it reduces the possibility of a poor performer offering excuses regarding why the goal has not been met.

Pipeline meetings. These are great opportunities to track performance and to work as a team to identify ways to close prospects. Firm members should be encouraged to support the business development efforts of others in the firm through their own connections and marketplace knowledge.

The bottom line is that once the business development program is up and running, individual efforts are tied to compensation. There is no better way to get people’s attention and participation than to make positive results tangible.

With a proactive approach to leading a business development effort, the firm will grow with clear purpose and direction. l

leaders provide this motivation and inspire their staff members. This may include supporting an individual group member during a difficult period, providing mentoring for an up-and-coming rainmaker, or pushing employees to meet and exceed their goals. Leaders can encourage a team to achieve results that go beyond the plan. Motivation from the leader can improve productivity, increase morale and encourage success.

Niche markets are best identified by a strong leadership team that can match the firm’s talent with emerging boutique opportunities. Individuals within the firm who show potential for tapping into a premium market can be groomed and trained to provide a high level of expertise that will be attractive to the right prospects. This effort requires not only a planned allocation of resources, but also the balancing of egos and ambitions, which is a dynamic that must never be left to chance.

Although it involves taking a risk, there must be a willingness to embrace innovation. It is better to stretch and grow into new markets with new ventures than to fall behind the competition. For a firm to successfully develop a new niche, it must plan, zero in on the best possible strategy, and passionately commit to make the effort become a reality.

There are cynics in every firm. They have high expectations of everyone else and are continually disappointed when others do not meet those expectations. To counter this challenge, leaders must have vision, integrity, competency, and the ability to relate to and drive the thriving and cohesive team they are building. Consistency is key.

Leaders must also be willing to listen to feedback and build a sense of community that is based on what they hear. Not only do they need to listen, but they must act by offering solutions to the issues that are revealed. This quick action will foster an attitude of success within the people they lead.

EVALUATION AND ACCOUNTABILITYWhen a positive company culture has been created, success must be measured with specific systems.

Leadership’s Role in Effective Business Development | FROM PAGE 9


CONTINUED ON PAGE 12

CAREER DEVELOPMENT

Are You Overqualified for the Job?By John West Hadley

2. Get a headset, and then stand up (or even walk around) while you are talking.

3. Although it’s a great convenience to have your résumé, written stories, etc. out around you while you are talking, use them as little as possible. The more you glance at them or try to read from them, the more it will detract from your concentration and delivery.

Next, think about the context. If the question of “overqualification” comes up, there likely have been signals long before the end of the interview. These could be the types of questions asked, reactions to answers you gave, or even just the disconnect between your résumé and the rest of your package and their job expectations. Examine carefully what’s going on, because if you are perceiving it as a “great interview,” then you are probably missing signals that would tell you about the disconnect sooner.

Think about what you do to address the objection when it does arise. Do you now dig in and demonstrate why you would be excited to take the role, and why having someone they perceive as

A very common complaint among job seekers is that they will go on an interview for a job they feel they can do hands-down, but are

ruled out because they are overqualified. In many cases, they never even get the chance to interview, because they are screened out before ever meeting the hiring manager.

Let’s look at a real-life example, so that if you ever find that YOU face this issue, you can be better prepared. Here was the issue presented to me by a job seeker.

I have, more than once, completed a great interview only to finish with “...do you feel I have met the qualifications of the position...” and get this: “You are overqualified for this position and we don’t think you will last long here….” Point is that I am comfortable with a less challenging position than I have accomplished in the past—along with the lower pay.

Here are the thoughts I shared …

Are you just “willing to accept” that lesser position, or is it what you really want?

If it is what you really want, then you need to present yourself that way up front—this question shouldn’t be rearing its head at the end of the interview. On the other hand, if you are just “willing to accept” it, that will come through in various ways throughout the interview, and you won’t be successful. You should instead consider directly targeting a higher position.

The response?

“No. This is my desired passion—to get back into the field of work I enjoy. This only happens on phone interviews. Face-to-face is much better.”

Your passion must not be showing up as well over the phone, so try:

1. Smile as you are talking—it really does change the timbre of your voice.

John West Hadley is a

career counselor who

works with job seekers

frustrated with their search,

and professionals strug-

gling to increase their

visibility and influence at

work. He can be reached

at [email protected]

or 908.725.2437. His free

Career Tips newsletter

and other career resources

are available at www.

JHACareers.com.


with the hiring manager, the challenges are more related to her unit’s issues, as well as her own personal goals.

Finally, are you addressing the unstated objection for which “overqualified” is often a smokescreen—that you might be perceived as a threat? The hiring manager needs to see you as a key partner in achieving her goals, and as someone who plans to make her succeed—who wants to help the hiring manager achieve HER next promotion (obviously so you can move up as well).

His response to all this? “If this was the case, I wouldn’t want to continue the interview. I choose to leave this possibility as moot.”

That really doesn’t address the question. Even when not explicitly stated, this will often be an issue. Or if it doesn’t become an issue during the interview itself, it may become a question when the hiring manager or screener is thinking about it afterwards or talking it out with others. I twice hired actuaries who were only a notch below me, and much more qualified than me in certain areas. In both cases, my boss raised that issue specifically with me during our discussions after the interview and before making the hiring decision.

You can’t just sidestep this. I would consider finding a way to bring it to the surface during the interview whether it’s stated or not, or to make the positive statements that prevent it from surfacing.

I hope this real-life case study was instructive. I invite you to submit your own comments on this topic to me at [email protected]. I’ll compile any responses for the next issue, being careful to preserve your anonymity unless you specifically tell me you would like to be identified. l

overqualified would move them forward that much faster in their mission?

You can’t come across as being “willing to accept” the role—that’s a red flag for exactly what they have said they are worried about—that you won’t last long. You must come across as being genuinely passionate about that level role.

His response to this? “I explain how I want to choose a comfortable position that uses my expertise.”

What makes the position “comfortable”?

As the hiring manager, I might read that on the other end of the phone as any of these:

• You won’t bring that much energy to the role, • You won’t put in the extra time/effort someone

else with more passion would, or• You are not all that motivated to do a great

job.

Instead of what I think you really intend: the expertise lets you do an outstanding job, in a role you really enjoy.

How much are you digging into the hiring manager’s challenges during the interview? Whether or not you have the qualifications is only a part of the real agenda. He needs to see you as a powerful solution to his challenges, and to achieve that you need to deeply understand:

• What are their issues? • What’s behind those issues? • Why are they challenges in the first place?• What’s behind that?• How much are those challenges costing them?• Etc.

Obviously, the challenges are different according to whom you are talking with. If you are meeting with HR screeners, they are going to be more related to the company and department in general and your fit to the corporate culture, as well as the screener’s pain in terms of the hiring process, sending on the “right” candidate so the hiring manager doesn’t complain. On the other hand, if you are meeting

Are You Overqualified | FROM PAGE 11


Working from HomeBy Mary Simmons

It is not the aim of this article to replace such HR guidance, as it has value and may be fairly specific to the type of work being done. Rather, I want to compile some thoughts that may help you decide when and when not to work from home and how to make it work better—whether you are manager, employee or co-worker.

WORKING FROM HOME DOES NOT HAVE TO BE FULL TIMEThere are many ways to use working from home in a less-than-full-time way. I am a good example of that. Typically, I work from home one day a week. That one day a week allows me to perform deeper analysis than I can easily do on other days. By forgoing face-to-face meetings, my working-from-home day can be less interrupted and more productive. I can also fit in more work hours, with less total time away from my family.

I know others who really appreciate the ability to work from home during a stressful project,

Editor’s Note: This article follows up on themes raised in the author’s earlier article, “Confessions of a Telecommuter,” published in the September 2001 issue of The Stepping Stone, and available on the SOA website at www.soa.org/library/newsletters/stepping-stone/2001/september/ssn-2001-iss07-simmons.aspx.

W hen I got my first actuarial job, “working from home” meant bringing reading material home or working on

a memo with pencil and paper. By the time that I started “working from home” nearly full time in 1998, the phrase had a different meaning entirely. I could do most things from home that I could do in the office. Email ruled. Laptop computers meant I could bring programs and data with me anywhere. Phone service was cheap and Internet speeds had zoomed to 56k and beyond—much beyond in some cases.

Even so, “working from home” meant fighting stereotypes and expectations. It was unusual. Not normal. It meant learning how to deal with the technical hurdles, ergonomic issues, family balance challenges, and physical consequences of not leaving the house.

In 2012, the world is different. Once I refused meetings when I worked from home. Now I accept with instructions on where to call me that day. Working from home may not be mainstream, but it is closer to it than it has ever been. Some companies even have mandatory work-at-home days (not necessarily something I would recommend).

I suspect that it is fairly normal to have HR departments now supplying guidance for managers, workers and co-workers with regard to who should telecommute and how to make it work. Most of my company’s telecommuters are in marketing or underwriting, but there are others, including actuaries, who telecommute full or part time. Some companies have used telecommuters for tech support or customer service.


Mary Simmons, FSA,

MAAA, is vice president

and actuary at Protective

Life Insurance Company in

Birmingham, Ala. She can

be reached at mary.

[email protected].


spend “free time” doing things that might have waited for the office the next day. This is one of the fundamental risks of working from home, but this can strike anyone with a smart phone.

It is even more risky for those who can log in and truly “work from home” at all hours of the night. Just because we have the freedom to work from home as needed does not mean that we should work. This is very much akin to the full-time telecommuter’s dilemma that the office is in the next room. Work is still work, and we have to make personal decisions about where to draw the line. There is no doubt that it is now harder to figure out how to draw that line.

WORKING FROM HOME CAN BE FULL TIMEI interviewed a number of friends for this article to see what different points of view I could find. There were some universal truths that everyone agreed on:

• It takes the right person and the right job. It is really critical to have self-discipline and to love the work you do. Both are essential to make this work long term.

• The relationship between manager and employee is critical. Manager and employee both value trust, but trust can be hard to build when you don’t see each other daily. It often helps if the employee and manager know each other and have worked together regularly before they enter into a telecommuting arrangement.

• An inexperienced worker should not telecommute. If interaction needs are high—such as being trained—this creates a real obstacle.

• On the flip side of this, it can be challenging for a manager to telecommute. Training someone or supervising an inexperienced worker from a distance is difficult.

• The home office situation has to be conducive to productivity. This means the technical side—such as high speed Internet and a good ergonomic work station. It also means the right environment. A small child in the home probably doesn’t help get work

for similar reasons. A couple of days of working from home, with fewer interruptions, can be more productive than a week in the office.

Sometimes I wonder if it is more than just the lack of interruptions. I find commuting to be stressful, and eliminating that stress is a real positive. In the office, I find that I think more in the box than I do on the days when I work from home. Maybe it is as simple as the view outside my window that helps in this respect. I also eat healthier at home than I do in the office.

A friend recently retired from the actuarial profession to become a teacher. He said that one of the things that really surprised him was how much he missed that freedom to work from home if he needed to. Is the plumber coming today? Work from home. He can’t really do that as a teacher.

When I hire a new person, one of the first things I do is to set them up with that freedom to work from home if they need to. I would rather an employee work from home than to miss half a day of work because of a plumbing problem. Similarly, people can log in after dinner to check on a long computer run. No need to stay late in the office or miss dinner. I always saw this as a win-win for us both.

However….

In the June 2012 issue of Monthly Labor Review, published by the National Bureau of Labor Statistics, Mary C. Noonan and Jennifer L. Glass present “The Hard Truth about Telecommuting,”1 in which they assert that roughly 24 percent of workers work at least some hours at home each week. This can include things as simple as checking and responding to emails. Their research has led them to believe that this has translated into simply a new way to get employees to work overtime.

Sadly, there is some of that going on. Work can intrude on our non-work time. When we stopped needing a computer and phone line to check email, it gave work the chance to cross a boundary. We

Working from Home | FROM PAGE 13


I can take time off and travel with my family because I can check my email daily and never be too far out of touch.

done, although having a caretaker for the child might turn that situation around.

Working from home can be more productive—with the right person, the right job, the right manager relationship, the right experience, and the right home office situation. I can spend almost as much time working extra hours as I would have spent commuting—and my personal life still wins because I am less stressed and have more time at home.

Working from home can be healthier. There is a real benefit to not being in the office when people come in to work sick. However, there is more. One friend had a physical shortly before he started telecommuting full time. A year after he started telecommuting, his doctor noted that he was healthier in every way. His doctor said that the reduced stress had obviously been the cause. Eating at home rather than eating out is another positive for body and wallet.

SO HOW DO YOU MAKE IT WORK? Look for the win-win. Look for the right tools. Connect with your manager and co-workers.

One manager I know uses Skype with her telecommuters because a face-to-face connection is more conducive to connecting with each other. Right tool. Better connection.

I can take time off and travel with my family because I can check my email daily and never be too far out of touch. I can have a picnic on the beach, but still put that fire out at work. Win-win.

My employees can be home for the plumber and still get their work done—meaning their vacation is theirs to take at a time that is more convenient for us both. Win-win.

I have often used Office Communicator to share my desktop with co-workers to allow them to see what I am seeing, even though we are miles apart. Win-win. Right tool. Better connection.

Sometimes I use my iPad at home. There are a number of apps such as Notability that allow me to bring in documents and add my notes easily. I can email them back. Other tools like Microsoft One Note perform similar functions on the PC. Right tools. Better connections. It feels good to collaborate.

Working from home will continue to evolve, but I think that someone who is always looking for the win-win, the right tool, and the connection to their fellow workers will do well. l

END NOTES

1 http://www.bls.gov/opub/mlr/2012/06/art3full.pdf.


It’s better to make a connection with one person than to gain exposure to hundreds.

The Almighty Elevator Pitch— Part 2: Making It Sing By Eugenia Kaneshige

As Jeffrey Gitomer, sales trainer and author says, “People buy from people they know, like and trust.”

If you’re speaking to more than one person, your elevator pitch needs to be more generic, which means it is less likely to resonate strongly with people. You can’t ask questions or watch body language as closely. Although it’s harder to make a connection with people, you can still:

Brand yourself. Everyone knows what a corpo-rate brand is, or a celebrity brand; a simple defini-tion of a personal brand is “what people say about you when you’re not in the room.” Identify your standout characteristics. Make sure they’re at your grade level, that you have great stories to back them up, and that you maintain the consistency of your brand at all times. Remember that even a strong brand that took years to build can be destroyed in a careless minute.

Make yourself memorable for the specific attri-butes that make you unique, valuable, trustworthy, and most of all—likeable!

People will forget what you said; people will forget what you did; but people will never forget how you made them feel. —Maya Angelou

Don’t be a victim of stereotyping. For example, if people think most actuaries are pessimists who can’t see the big picture and don’t communicate well, referring to yourself as an “optimistic actuary” who writes a blog and speaks about changing career oppor-tunities in the actuarial field will greatly increase your professional sex appeal. On the other hand, you will need a different pitch for a prospective employer who believes that pessimism is a must-have trait.

IDENTIFY YOUR AUDIENCEResearch, Analyze, Customize. Those with the gift of gab may appear to have the advantage when

In Part 1 of this series,1 I defined the elevator pitch as:

A short summary used to quickly and simply define a product, service, or organization and its value proposition.

I pointed out that since few people have an effective pitch, polishing yours is a simple way to rise above the competition—as an individual or an organization.

I gave examples of the most common mistakes people make with their elevator pitches. Now I will show you how to overcome the design and presentation challenges of the 60-second personal networking or branding pitch.

ADOPT THE RIGHT MINDSET They’re called elevator pitches, elevator speeches or personal commercials. What you call something shouldn’t matter, but psychologically, it does. If you have an aversion to selling, for example, or a fear of public speaking, think about creating your per-sonal introduction. An introduction is simply a beginning—in this case, the beginning of a conver-sation—one that could lead to a new and mutually beneficial relationship.

When you’re having a conversation, unless you have hoof-in-mouth disease, the fear of making a “mistake” disappears. Your focus changes from presenting to communicating, from being on-stage to being in the moment. Instead of worrying about forgetting your “script,” you focus on getting to know your conversational partner.

UNDERSTAND YOUR GOALSConnect with people. Some people think that networking is a numbers game, and they try to give their elevator speech to as many people as possible. This strategy is similar to putting your résumé on job boards. It’s better to make a connection with one person than to gain exposure to hundreds.


Eugenia Kaneshige has a

passion for helping profes-

sionals find jobs that feed

not just their wallets, but also

their souls. If you’re ready

for the next step up in your

career, contact her at

704.966.1082 or

EKaneshige@norwood-

advisors.com.

COMMUNICATIONSKILLS


This gives you time to tailor your pitch. Here are three ways to capture attention quickly.

Ask a question. Asking a question, especially one that requires more than just a yes or no answer, engages a person, because it makes them think about their answer. It also leaves the conversational ball in their court and gives you more information upon which to build the conversation. “Have you ever met an actuary? No? Well, then today is your lucky day!”

Give a startling fact or statistic. Telling some-one something of interest that is related to your field not only engages them in the conversation; it also sets you up as an expert and makes the other person curious about what else you know that might be of interest to them. “Did you know that three out of every 10 people are disabled before they retire?” or “Did you know that insurance companies don’t make money on your premiums?”

Tell a joke. “Do you know what the difference is between an actuary and an accountant?” You may have heard the joke a dozen times, but telling a mildly self-deprecatory joke shows that you have a sense of humor, don’t take yourself too seriously, and probably have a lot of self-confidence. Plus, people who tell jokes are fun to be with. Make someone laugh, and you’ve earned their attention.

YOUR VALUE PROPOSITIONDefinition: The benefits or tangible results you provide your client (internal or external).

The value proposition is the core of a great eleva-tor pitch. It’s not about characteristics or traits that you bring to a situation (e.g., “I’m hardworking, loyal and smart”). It’s about the value your work creates—the measurable results and solutions you provide. The important thing to remember is that your value proposition is not static. It can decrease over time because of factors such as obsolescence or neglect, or you can choose to increase your value proposition through education and experience.

it comes to oral presentations, but those who excel in researching, analyzing and strategic thinking can play to their strengths by doing pre-work. The more you know about your audience, the more you can customize your message. So do some research before attending an event. Draw a demographic, psychological and contextual profile of the attend-ees, asking yourself questions about: their indi-vidual and group characteristics; what they know, think, or believe about your topic; and why they are listening to you in this place, at this time.2

PRESENT POWERFULLYOn average, the success of a speech depends 50 percent on presentation and 50 percent on content.

Be approachable. Presentation skills begin with first impressions. Therefore, appropriate dress, good posture and a smile are important. If you’re not approachable, you’ll have far fewer conversations with people. One less conversation at an event may not seem like much, but an actuary understands the power of compounding over the span of a career.

Speak with confidence and authority. Even the perfect elevator speech is ineffective if it can’t be heard clearly or if the person who’s saying it lacks enthusiasm or self-confidence. Whether you want to be seen as a valuable asset in your com-pany, an expert in your field, or a mover and shaker in your industry, presentation skills will accelerate your career progression.

Get feedback. It’s impossible to see the label on the bottle when you’re in it. So getting frank, objective feedback about your presentation skills is the only way to determine how other people see you. Joining a Toastmasters club is an inexpensive way to get prac-tice and feedback and to improve your communication and leadership skills, whatever your level.

DESIGN FOR IMPACTWhether you’re talking to one person or many, you gain an advantage by listening to their pitches first.

The Almighty Elevator Pitch, Part 2 | FROM PAGE 17

Make someone laugh, and you’ve earned their attention.


You could teach actuaries how to communicate complex ideas, or you could become a copywriter for the actuarial profession.

Talk about the why.3 When you talk about what it is about your work that you love, you’re getting to the why—why you’re ideally suited for this job, why it’s a calling and not just a job. When you talk about why you can’t see yourself doing anything else or why you can’t imagine ever retiring, you don’t have to think as much about presentation skills. When you talk about your passion, your natural enthusiasm will put a light in your eyes, a spring in your step, and energy into your voice and gestures.

Tell your personal story. No one else can tell your story. It belongs to you—the hero of your story. Did you always have an affinity for numbers, but never felt you really fit in, until…? This is an ugly duckling story that appeals to people, because it taps into universal emotions and themes. It’s a story of hope, perseverance, and the good guy win-ning in the end.

KEEP POLISHING YOUR PITCHESThink of your elevator pitches as a collection of short stories that are works in progress. Write one. Take it out for a test drive. Watch for the glazed eyes response. Tweak and repeat. Eventually, every pitch will be packed with persuasive power, and you’ll be able to deliver them with self-confidence, enthusiasm and spontaneity. l

Editor’s Note: Stay tuned for Part 3 of this series, which will focus on the nuances of pitching to sell, scheduled for publication in our May issue.

Tell a story. One of the best ways to get a person’s interest and talk about the value of what you do is to tell a short story. A story of how you helped a client (internal or external) to resolve a problem is a powerful way to explain what it is you do. Be sure your mini-case study is simple, but compelling. It should include what the benefit was to the client, the emotional impact of the result you achieved for them, and also how it made you feel to be able to produce that result for them. If you tell the story well, it can be more effective than having the other party tell it, because you’ve thought about the situ-ation, analyzed it, and practiced talking about it in a succinct and interesting manner.

YOUR UNIQUE SELLING PROPOSITION (USP)

Definition: The perceived benefit that differ-entiates a product or service from competing brands and gives its buyer a reason to prefer it over other brands.

If the value proposition is difficult for people, the unique selling proposition can be even more of a challenge. After all, how many of us can say we’re the fastest, best or cheapest in our organization, field or business?

Develop a specialty. Having a specialty doesn’t mean you’re confined to it, but it will make you stand out in a sea of equals. The more narrowly you define your niche, the faster you can become known for it. Add your personal characteristics into the mix, and your scarcity value increases. For instance, “I’m the only pricing actuary in the corn futures market who doesn’t carry an umbrella when it looks like rain.” What this says about you is that you have a specific area of expertise, that you’re not a pessimist, and that you have a sense of humor.

Think out of the box. If you’re trying to iden-tify and develop a USP, don’t confine yourself to actuarial specialties. What if you were the funniest actuary? You would soon be invited to speak at events and might become a professional speaker.

END NOTES

1 Published in the November 2012 issue of The Stepping Stone.

2 Andrew Dlugan, Audience Analysis: A Guide for Speakers. www.SixMinutes.Dlugan.com.

3 “Simon Sinek—Start with Why,” www.YouTube.com.


BOOK REVIEW:

The Power of Nice, by Ron Shapiro Review by Efrem Epstein

I ’m cynical of many books that offer advice on improving your “business” skills. In my experi-ence, few offer anything helpful that the reader

hasn’t already thought of (or tried) themselves. One exception to the rule is The Power of Nice by Ron Shapiro. A well-known entertainment and sports agent whose clients have included Cal Ripken, Jr. and Oprah Winfrey, Shapiro offers advice that is beneficial to anyone commencing a job search, requesting a promotion or looking to negotiate any fine point in their daily corporate life. Shapiro’s thesis is simple: Successful negotia-tors identify what the person across the table from them really wants and then helps them to get it. Too often we enter negotiations with neither a strategy nor defined goals. Utilizing examples, both from his own experience and that of others, he demonstrates how one can be so much more effective utilizing the “Three P’s: And the Big L.” Prepare ... Probe ... Propose ... and don’t forget to Listen! Prepare—In negotiations, the advantage goes to whomever has the better stockpile of information. Yes, you can find out information on the go (and you may have to), but there is no substitution for proper and thorough preparation. Probe—“Ask questions, and an amazing thing hap-pens: You get answers,” notes Shapiro. Too often we shy away from asking questions. We see it as an acknowledgment that we don’t know everything and, by extension, a sign of our weakness. To the contrary, asking questions is an opportunity to gain additional information and open new avenues to consensus that may have been less than apparent beforehand. Propose—It’s not just about when you ask or what you ask for ... how you ask matters as well. The key to the first offer (or response) is to keep the conver-sation going.

And perhaps most importantly ... Listen—This is important for a number of reasons, not the least of which is that it’s often very difficult!

As humans we love to talk, especially about ourselves. “Did you ever notice how often the party opposite you thinks what he or she has to say is more important than what you have to say?” asks Shapiro. “That’s okay. Give them a chance to talk and they’ll tell you everything you need to know.... The best negotiators aren’t smooth talkers; they’re smooth listeners.” Negotiating can be intimidating and unpleasant, but it is often necessary if you want to receive what you feel you justly deserve. After reading The Power of Nice, I would personally recommend practic-ing some of his tactics with trustworthy friends/colleagues and soliciting feedback. Negotiating is a learned skill but, like many others, one that can definitely be mastered with practice. l

Efrem Epstein combines his

past communications expe-

rience with his newfound

quantitative prowess as the

chief communications officer

and actuarial assistant of

Survival Sharing Inc. He is

also the founder of Elijah’s

Journey (www.elijahsjourney.

net), a 501(c)(3) focused

on suicide awareness and

prevention in the Jewish

community. He can be

reached at Efrem.Epstein@

SurvivalSharing.com.


A braham Maslow said, “If the only tool you have is a hammer, you tend to see every problem as a nail.”

This saying is especially true when it comes to your leadership style. Many managers approach every employee and every situation using the same approach—typically, a directive style. Sometimes this is appropriate, but not always.

DEVELOPMENTAL STAGES Ken Blanchard developed a model, called Situational Leadership, where the appropriate leadership style is determined based on the person’s level of compe-tence and commitment.

Competence is all about ability, skills, education and experience. How able are they to handle the task?

Commitment deals with motivation and confidence. How willing is the person to complete the task?

From these two characteristics we can define four categories of followers:

• The Enthusiastic Beginner—low competence, high commitment

• The Disillusioned Learner—some compe-tence, low commitment

• The Capable but Cautious Performer—mod-erate competence, varied commitment

• The High Achiever—high competence, high commitment.

A person will go through these four developmental stages when they learn to master anything. The gen-eral rule to determine your leadership style is:

When they are lacking competence, they need Direction. When they are lacking commitment, they need Support.

DIRECTION AND SUPPORT Direction includes things like telling, training, showing, and monitoring and supervising.

Support includes things like asking, facilitating, praising and listening.

FOUR LEADERSHIP APPROACHES A Directing style is ideal for Enthusiastic Beginners. They have lots of willingness, being excited about a new venture, but have very low abilities since it is so new for them. They need lots of direction and instruction or else they will be spinning their wheels.

A Coaching style is ideal for Disillusioned Learners. This stage sets in when the person realiz-es that mastering this task is going to be harder than they initially thought. They have developed some competence, but their confidence has dropped. A Coaching style still provides direction, but also brings in the elements of listening and encourag-ing in order to support the person in their develop-mental journey.

Leadership Tip: Use Your Entire ToolboxBy David C. Miller

David C. Miller, FSA, PCC, is president of Leadership Growth Strategies. He can be reached at dave@ leadershipgrowthstrategies.com.


PEOPLEMANAGEMENT

A Supporting style is ideal for Cautious but Capable Performers. These people have developed quite a bit of skill, but they are sometimes unwilling or reluctant to take action. This could be because the rewards don’t seem to be there or their confidence to be able to succeed is low. They do not need anyone to show them what to do, but they do need a leader to listen, process, praise and encourage.

A Delegating style is ideal for High Achievers. They have plenty of competence and commitment. They catch themselves doing the right things—very self-motivated. Try using a Directing style with a High Achiever and they will feel micromanaged. No—these folks need very little in the way of direction or support—they thrive on being empowered.

LOOK AT THE GOAL, NOT JUST THE PERSON Remember that you will most likely be employ-ing different leadership styles even with the same

person. For example, Bob may be a High Achiever when it comes to programming code for the new system—he’s been doing that for years. But he is a Disillusioned Learner when it comes to managing people, because he just got promoted as team lead three months ago—it’s all new to him.

You will be using a Delegating style when dealing with Bob on technical issues and a Coaching style when working with Bob on people management issues.

So it’s extremely important to employ a leadership approach that is appropriate to the situation at hand. Don’t treat every situation like it’s a nail—use your entire toolbox when leading. l

PEOPLEMANAGEMENT


Joe Paesani, FSA, MAAA, is a consulting actuary focusing on risk manage-ment, strategic marketing and professional develop-ment. He can be reached at [email protected].

BOOK REVIEW:

The Progress Principle, by Teresa Amabile and Steven Kramer Review by Joseph Paesani

if the progress is only incremental or seemingly small! Facilitating progress was found to more sig-nificantly boost motivation and productivity than the factors people more often think about first, like higher pay or rewards and recognition. How a leader influences others’ ability to make progress makes the biggest difference in quality of perfor-mance and level of engagement.

It may not seem like a rocket science, and it’s not. It reinforces things that we often overlook, but probably realize when we really think about it—accomplishments lead to happiness and posi-tive feelings; happiness and positive feelings lead to creativity and energy; creativity and energy lead to more accomplishments, etc. While it focuses on engaging others, we can also apply the learning and application to our own daily lives to increase our own motivation and productivity. The book is a great read and very informative for anyone who leads others and is looking to increase the impact he or she can have in their organization. l

How often do the people on our team, or the people we work with, or even we ourselves, lack the motivation to get work

done or solve the problems we face at work on a daily basis?

If we lead or manage others, workforce engage-ment is one of the greatest challenges facing us and our organizations today. Engagement has, perhaps, the single greatest impact on achieving meaningful results and performance in the work-place. But how can I advance the engagement and performance of my team, department or unit?

The Progress Principle is one of the most appli-cable business books I’ve read on the topic of increasing workforce engagement. It provides solid grounding in the fundamental leadership strategy of driving progress on meaningful work using relevant and sustainable actions.

What makes this book unique is that it’s the first one I’ve read in which the conclusions are based on substantial data provided by people strug-gling with this very issue. It shares the results of breakthrough research on engagement and creativ-ity conducted by Amabile and Kramer, and this research is the most detailed I’ve read about what motivates high performance in the workplace.

The authors conducted an in-depth and detailed study of nearly 12,000 diary entries provided by hundreds of employees from several organizations detailing their thoughts and feelings as they try to solve the problems they face each day at work. The study was intended to explore the relationship between leaders and their people, and the impact leaders have on engagement.

The most significant factor influencing high engagement is the leader’s role in facilitating prog-ress toward accomplishing meaningful work, even


The Power of PracticeBy Carlos Arocha

PERSONALDEVELOPMENT

“Bounce, bounce, nothing’s gonna keep me down!” — Jon Bon Jovi

Besides getting quality continuing education and having the chance to network with other members of the profession, one salient benefit of attending the Society of Actuaries (SOA) annual meeting that I particularly appreciate is the opportunity to listen to keynote speakers. Of particular interest at this year’s event in Washington, D.C. was Matthew Syed, a British journalist and broadcaster and former table-tennis international champion.

Syed spoke at length in a rather satirical style of his 2010 book: Bounce—The Myth of Talent and the Power of Practice.1

Is it talent that makes Tiger Woods launch a 350-yard fade? Or what allows Roger Federer to caress a cross-court forehand winner? Or have they logged in thou-sands of hours in focused, high-quality coached training from quite an early age? Syed contends that it is indeed practice, not talent, that makes a great athlete. I already knew the old adage: “practice makes perfect,” but none-theless I bought the book.

The answer to the above, proposed (among others) by Anders Ericsson, a psychologist at Florida State University, and explored meticulously by Syed, is this:

Differences between expert performers and normal adults reflect a life-long persistence of deliberate effort to improve performance.

The idea that natural talent determines success and failure is so powerful that today it is accepted without demur. But Syed’s autobiographical bias, the path to excellence in one of Britain’s big sports,2 motivates him to conduct further research. Arguably top performers in any discipline have trained for at least 10,000 hours, or about 10 years if one practices some 20 hours a week. World-class tennis players, for example, have achieved this status well before turning 15. Novak Djokovic start-ed playing at age 4; Rafael Nadal at 3.

While I was listening to Syed at the SOA annual meet-ing, I thought about the total amount of time that I had devoted in studying for SOA exams. A successful can-didate, who follows the classical 100-hour rule of study time for each exam hour, may log some 3,000 hours, taking into consideration that ASA exams have an

Carlos Arocha, FSA, MAAA, is managing director, Arocha & Associates GmbH. He can be reached at [email protected].



exam hours is shorter than that required by any of the SOA qualifications, and therefore falls that much further from Syed’s suggested hours. So at least one benefit of the FSA credentialing process is that it requires the hard work and dedication that can make actuaries into “expert performers.”

The above line of thought may be aligned with Syed’s tenet, brilliantly illustrated in his book. If you believe that hard work will achieve success, Bounce, crammed with fascinating stories and statistics, is a must-read. l

END NOTES

1 Syed, M., Bounce: The Myth of Talent and the Power of Practice, Harper Collins Publishers, 2010.

2 Syed was the United Kingdom’s number-one table-tennis player at 24.

aggregate duration of 15.5 hours and an FSA track about 12. Travel time toward fellowship is then increased by other educational requirements such as the FAP course or the FSA modules.

How close is an FSA to the 10,000-hour practice rule?

A candidate who failed all exams twice before pass-ing them would have collected about 10,000 hours of experience, in a travel time of 10 years. This scenario is of course unrealistic: the sheer time above spent in preparing for the exams would guarantee, in many cases, passing in the first attempt. The candidate would also have to be a part-time student to achieve that. In addition, there is a natural problem to consider—a hurdle that I experienced myself—of whether the study time is actu-ally top quality time. This consideration complicates the determination of hours of deliberate effort.

Notwithstanding, I argue that a hard-working candidate will have a relative good mastery of the actuarial cur-riculum.

What is the case for other analytically oriented creden-tials, such as CFA or FRM? Simply put, the amount of

Power of Practice | FROM PAGE 25


In Dan Ariely’s look at lying, cheating, fudg-ing and shaving the truth, there’s bad news and there’s good news. The bad news, which is not

too much of a surprise, is that almost all people will cheat, lie and steal just a wee bit if the conditions allow. Whether it’s giving ourselves a mulligan on the golf course or taking a few supplies from the office for personal use, usually it’s just a little here or there…. Doesn’t matter much, does it?

But of course the impact of all these little lies can add up, from underpayment of taxes, over-claiming from insurance, downward spirals of unethical busi-ness practices leading up to complete disaster—many of the worst systemic problems don’t come from outright criminality and massive fraud, but a process that starts with laxity at the edges. At the very least, many a diet has been ruined by “just one cookie” after a stressful day that ends up in a full-blown Oreo binge.

I did say there was good news—very few people cheat and lie optimally. What I mean by this is what Ariely calls the “Simple Model of Rational Crime”: people will lie, cheat and steal to the extent they can get away with it if the expected payoff is high enough. But that happens not to be the case in reality. To be sure, when oversight and controls are laxer, people do take advantage of the situation by steal-ing and cheating just a little bit. But the point is that this is “at the margin” as opposed to making out like bandits. Ariely looks at how this “margin” can move depending on a variety of circumstances: whether you’re in a culture of widespread dishonesty (con-sider surveys of how widespread tax cheats are in different countries), if you’ve been emotionally depleted (too many stresses can sap the willpower until the dam finally breaks… cf. the cookie binge above), if one is reminded of the obligation to be honest before, rather than after, one has to answer a bunch of questions.

Let me approach that final example, as Ariely uses an experimental example straight from the world of

insurance. Like many forms (especially tax), one gen-erally fills out an insurance application, and then, at the end, signs a statement attesting that all the infor-mation above is truthful. Ariely wanted to check the effect of having people sign such a statement before filling out an auto insurance application. Specifically, he looked at the part of the self-reporting miles driven per year (as more miles driven results in higher premi-ums, usually). The result? Those with the form with the attestation at the top reported, on average, 2400 fewer miles driven than those who had the attestation in the standard place: the bottom. This was about a 9 percent reduction, which reflects the marginal aspect of “normal” cheating. Read the book to find out what the insurance company did with these results. You will likely not be surprised.

Given that our own profession emphasizes ethics so much, learning the parameters under which unethi-cal practice flourishes is important for us. While learning about how so many people will cheat, at least just a little bit, does get to be a bit dishearten-ing, it does point out the importance of our Actuarial Code of Conduct as well as the numerous controls in our work. l

BOOK REVIEW:

Everybody Cheats, at Least Just a Little Bit

A Review of The (Honest) Truth About Dishonesty, by Dan Ariely1 Review by Mary Pat Campbell

Mary Pat Campbell, FSA, MAAA, is vice president, Insurance Research at Conning in Hartford, Conn. She can be reached at [email protected].

END NOTES

1 Harper Collins, hardcover, 285 pages.


Dr. Doreen Stern is a

writer, motivational speaker

and success coach in

Hartford, Conn. Her goal

is to become a best-selling

author. She’s currently writ-

ing a book in the memoir

genre, tentatively titled

“When I Love Myself.” She

can be reached at Docktor@

DoreenStern.com.

All In: What Can You Learn from an Actuary Who Won $2.85M?By Doreen Stern, Ph.D.

What’s the probability of an Aetna actuary coming in fourth in the World Series of Poker? And winning $2.85M?

Pretty low, right?

Yet that’s just what 24-year-old Russell Thomas did this past October (2012) in Las Vegas.

It’s even more surprising when you consider how high the barrier to entry was: 6,598 men and women paid $10,000 each to participate, and then engaged in a series of tournaments over seven days to nar-row the field to the top nine players in the world.

Think of the skill, concentration and mental toughness required to become one of the select nine. And then to continue three months later at the “Final Table,” a series of grueling 12-hour tournaments, to whittle the field down to just one winner. That man won $8.5 mil-lion, along with a diamond-encrusted bracelet.

“Did natural talent propel Russ forward?” I won-dered. He disabused me of that theory.

“I, like everyone else, wasn’t very good at the start,” he said.

Really?

Well, if natural ability wasn’t behind Thomas’ stun-ning success, what helped him cash out fourth in a field of seasoned professional poker players?

I interviewed Thomas twice by phone; he and I emailed back and forth for a week; and I watched his six online videos, which describe his train-ing experience, to learn how he accomplished the unthinkable. Much of what I learned applies to the actuarial world, as well as to the poker table.

Here are eight suggestions from Thomas:

1. START SMALL.

When Thomas began playing poker during his sophomore year in college, the result of watching

his brother’s frequent online wins, he often played for pennies. Or dollars. So there was little risk associated with his stumbles. This gave him the opportunity to learn the game.

“Why did you keep at it, when you were new to the game?” I asked Thomas.

“I’m competitive. I knew that if I put the work in for a game where logic and math were so intensive, I could succeed.”

2. KEEP PRACTICING.

“If you want to get good at something, focus con-stantly on trying to improve,” Thomas advises. He watched countless hours of instructional videos and played almost 30 hours a week when he was just learning the game during college, a time in his life when he had considerable discretionary time.

Thomas did the same thing in the three months leading up to the “Final Table,” when he took a leave of absence from Aetna so he could immerse himself in poker. That way, he was fully prepared for what he considers the biggest opportunity of his life.

3. PAY ATTENTION TO HOW THE TOP PLAYERS SUCCEED.

“Don’t keep doing the same thing you’ve always done,” Thomas said. “Instead, figure out who’s good at the game and watch how they play. Analyze how they play their hands and identify what they are doing at the table.”

4. SHOW INITIATIVE, RATHER THAN LET-TING OTHERS CONTROL THE GAME.

“All things being equal, a player has the best chance of winning when he or she takes initiative in each hand, by betting and raising more than check-ing and calling,” Thomas observes. (This is prob-ably similar to proposing solutions at work, instead of waiting for your manager to tell you what to do.)



5. SURROUND YOURSELF WITH PEERS WHO WILL CHALLENGE YOU.

“We challenge each other every time we sit down at a poker table,” revealed Thomas, speaking about his close friend, Jesse Sylvia, who was the runner-up in this year’s World Series of Poker.

“I’ve improved because of it,” he said, with certainty. That’s how Thomas prepared for this year’s Final Table, too, playing against a cadre of carefully selected players, who both challenged and guided him. These men were chosen by the full-time poker coach Thomas hired, so he could be as prepared as possible for every contingency that might arise dur-ing the final competition.

6. IDENTIFY YOUR PRIORITIES, AND CON-CENTRATE ON ONE THING AT A TIME.

Two years ago, in 2010, right after he finished col-lege and before he started his actuarial position at Aetna, Thomas participated in his first World Series of Poker. It was a smaller tournament than the one in which he participated this year, with a $1,500 buy-in. Thomas came in fifth out of 1,600 partici-pants, and won $84,256. He describes it as one of his shining moments in poker.

Thomas lived in Las Vegas that summer, and devoted himself to poker to hone his skills. He roomed with Jesse Sylvia, the man who would go on to become this year’s “Final Table” runner-up, winning $6.6 million.

However, when Thomas came to Hartford to start his job at Aetna, his work responsibilities and exams became his number one priority. He put in long hours analyzing how the new U.S. health care reform law would impact Aetna, plus studying for his exams. (At the moment, he has only one more remaining.)

Poker took a backseat to Thomas’ actuarial respon-sibilities. Except for a few trips to Foxwoods, he hardly played.

“When I do one thing at a time, I have the best chance of succeeding at what I find important at the time,” he said.

His roommate Regis Murayi concurred: “Russ is an ‘All In’ type of guy. Whether studying for his exams, working or playing poker, his dedication is obvious. Nothing that happens to him is a fluke.”


All In ... | FROM PAGE 29

“Poker Face” by: Frank Kolbmann aka “Francis 2Good”

7. FOCUS ON THE PROCESS, NOT THE RESULTS.

“Making the right decision is more important than the results,” Thomas stressed. “Because you can’t control the outcome: the cards each player holds. So I try to separate my decision-making process from the results, and to forgive myself when my decision making is flawed. I ask myself what I can learn from the situation and move on.”

8. KEEP YOUR DREAMS INTACT.

Although Thomas rarely played poker while he worked at Aetna, he used his summer vacations to enter in the World Series of Poker in both 2011 and 2012.

In 2011, Thomas came in 248th out of 6,865 partici-pants, winning $40,654. This encouraged him to try again in 2012. He was concerned he might be rusty, and worried that his skills could have deteriorated. He discovered it wasn’t the case.

After coming in fourth in the World Series of Poker, Thomas decided to join the professional circuit. It’s something he’d considered earlier, although he enjoyed his actuarial career. Now he’s resigned from Aetna and is looking forward to traveling this year to the Bahamas, Spain, France and Australia to play poker.

And that’s what Thomas talks about when he dis-cusses his recent win: where he’s going to travel as a professional poker player, never the money.

“It’s just a number in the bank,” he says. “My life hasn’t changed as much as you would think.”

Thomas admits that playing poker is stressful. “Sometimes it’s hard to stay awake, and also dif-ficult to fall asleep. I lose my appetite.”

He’ll be giving up things he enjoys, too. “I liked my job and my boss,” he says.

Yet Thomas doesn’t want to wonder what could have been.

How about you?

Is there something about which you don’t want to wonder what could have been? Perhaps at work? Or at home? A relationship you’ve yearned to develop? A part of the country in which you’ve longed to live? Even a hobby that’s called out to you?

Thomas might tell you the time to act is NOW. l

Watch this video to see Thomas at the “Final Table”:http://www.youtube.com/watch?v=ozr_NMW6Jpc.


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