How to Be an Effective Manager Moderator: Ashwini A. Vaidya, FSA, MAAA Presenters: K Karen JJ. D DeToro, T FSA, FSA MAAA Stephanie M. Weist, FSA, MAAA SOCIETY OF ACTUARIES Antitrust Notice for Meetings Active participation in the Society of Actuaries is an important aspect of membership. However, any Society activity that arguably could be perceived as a restraint of trade exposes the SOA and its members to antitrust risk. Accordingly, meeting participants should refrain from any discussion which may provide the basis for an inference that they agreed to take any action relating to prices, services, production, allocation of markets or any other matter having a market effect. These discussions should be avoided both at official SOA meetings and informal gatherings and activities. In addition, meeting participants should be sensitive to other matters that may raise particular antitrust concern: membership restrictions restrictions, codes of ethics or other forms of self self-regulation, regulation product standardization or certification. The following are guidelines that should be followed at all SOA meetings, informal gatherings and activities: •DON’T discuss your own, your firm’s, or others’ prices or fees for service, or anything that might affect prices or fees, such as costs, discounts, terms of sale, or profit margins. •DON’T stay at a meeting where any such price talk occurs. •DON’T make public announcements or statements about your own or your firm’s prices or fees, or those of competitors, at any SOA meeting or activity. •DON’T talk about what other entities or their members or employees plan to do in particular geographic or product markets or with particular customers. •DON’T speak or act on behalf of the SOA or any of its committees unless specifically authorized to do so. g counsel about any y concerns regarding g gp proposed p statements to be made by y the •DO alert SOA staff or legal association on behalf of a committee or section. •DO consult with your own legal counsel or the SOA before raising any matter or making any statement that you think may involve competitively sensitive information. •DO be alert to improper activities, and don’t participate if you think something is improper. If you have specific questions, seek guidance from your own legal counsel or from the SOA’s Executive Director or legal counsel. 2 1 How to be an Effective Manager Engagement and Motivation Stephanie Weist Weist, FSA FSA, MAAA 3 Agenda  Engagement  Motivation  Lessons Learned  Tool Kit 4 2 Engagement  What is engagement? • A measure meas re of the extent e tent to which hich team members are psychologically committed to their roles.  Three levels of engagement • Engaged • Not Engaged • Actively Disengaged 5 Why Is Engagement Important  Disengagement g g affects attendance, cooperation, willingness to learn, profits  Engaged teams have • Lower turnover • Higher productivity • Higher profitability 6 3 How To Increase Engagement  Everyone y owns their engagement g g  Shadow of a leader  Culture, not flavor of the day  One size doesn’t fit all  FUN 7 How To Increase Engagement  FUN • Pot lucks Opening day of baseball  Luau & limbo contest  • Team lunch • Offsites 8 4 Motivation  Whose jjob is it?  Find out what your team members want from work • Motivator checklist • Have 1:1 meetings 9 Motivation  Recognition g • Timely • Public vs Private • Celebrate achievements  Set clear expectations  Feedback 10 5 Lessons learned  Embrace soft skills  Learn from everyone  Borrow ideas  Put your oxygen mask on first 11 Tool kit   Motivator check list Books • • • • • •  Websites • •  QBQ! The Question Behind the Question by John G. Miller Outstanding! 47 Ways to Make Your Organization Outstanding by John G. Miller Strength Finders 2.0 by Tom Rath Go Put Your Strengths to Work by Marcus Buckingham The Energy Bus: 10 rules to fuel your life, work and team with positive energy by Jon Gordon 1001 Ways to Reward Employees by Bob Nelson QBQ.com – can subscribe for quick notes on personal accountability www.managementhelp.org Free Management Library SM SOA • • • • Actuary of the Future section Management and Personal Development section Stepping Stone –Management and Personal Development section newsletter Competency framework 12 6 Motivator Checklist To help you identify what motivates you, consider the following categories of typical motivators. Rank the categories, starting with 1 as the highest. You might have several categories that rank equally. Don’t worry about getting your ranking perfect. The point is to go through the process of thinking about what motivates you. Career development/success Comfort/relaxation Health/balance/energy Influence/leadership Learning/knowledge/discovery Material/possessions Recognition/praise Security/money/home Social/affiliation/popularity/acceptance Status/prestige/standout/reputation Task accomplishment/problem solving/ achievement Teaching/guiding others Others Others Are there other comments you could make that would help you (and maybe others) to more clearly understand what motivates you? If so, what are they? www.managementhelp.org Managing Employees’ Employees Growth and Development Karen DeToro DeToro, FSA FSA, MAAA 13 Managing Growth and Development Skill Sets    Personal Management    Technical Skills Communication Skills Business Acumen Managing Time Exam Progress Work / Life Balance 14 7 Developing Technical Skills Situation Your company has just purchased a slick new valuation platform. However, one of your employees continues to perform his valuation calculations using an old Excel spreadsheet that he developed 10 years ago. He refuses to migrate to the new platform. You suspect it is due to a deficiency in his technical skills. 15 Developing Technical Skills – Required Skills  Actuarial knowledge g specific p to the function or industry y area in which the actuary works • • • •  • • • • Life Insurance Health Insurance Pensions Investments Knowledge of key actuarial tools and software: • • • •  Valuation knowledge Modeling capabilities Pricing techniques Experience study methods Modeling platforms Valuation platforms Excel Access Other skills applicable to non-traditional roles 16 8 Developing Technical Skills – Your Role Actions Messaging Tools and Resources    Identify technical skills required for the role Determine the current skill set / level of the resource Identify areas of strength and development needs    Phrase feedback constructively Work with staff to identify required skills and development plan to address gaps Clearly state requirements to do job effectively     SOA educational programs (webinars, (webinars classes) Local university or online course offerings Vendor training On-the-job learning 17 Developing Technical Skills Situation Your company has just purchased a slick new valuation platform. However, one of your employees continues to perform his valuation calculations using an old Excel spreadsheet that he developed 10 years ago. He refuses to migrate to the new platform. You suspect it is due to a deficiency in his technical skills. Response     Discuss the required skill sets for the job Determine whether use of the new valuation platform is a requirement or a choice Work with your employee to assess his skill set relative to the requirements Provide your employee with training from an outside vendor on the new platform 18 9 Developing Communication Skills Situation Your employee has been asked to give a presentation to the CFO on the pricing assumptions underlying the new term life product. Since she priced the product, she has the best understanding of the profit drivers. However, she doesn’t seem to be able to explain p them succinctly to a non-actuarial audience, and the CFO is neither patient nor technically adept. 19 Developing Communication Skills – Required Skills  Type yp of communication • •  Size of audience • • •  Written Verbal One-on-one Small group Large group Nature of content • • Technical Non-technical 20 10 Developing Communication Skills – Your Role  Assess the root cause underlying the communication challenge g ((e.g., g language g g barrier, fear of p public speaking)    May be a sensitive topic May be dismissed as unimportant for actuaries Need to stress that the audience will only evaluate what they “receive,” not what the speaker “sends”     Language g g education Public speaking / presentation training Video camera / live practice Manager oversight / feedback on written communication Actions Messaging Tools and Resources 21 Developing Communication Skills Situation Your employee has been asked to give a presentation to the CFO on the pricing assumptions underlying the new term life product. Since she priced the product, she has the best understanding of the profit drivers. However, she doesn’t seem to be able to explain them succinctly to a non-actuarial non actuarial audience audience, and the CFO is neither patient nor technically adept. Response     Identify the underlying root cause Broach topic in a sensitive way, while stressing the need to make a good impression Focus on what your employee needs to do to get the CFO to “hear” her message Suggest that your employee • • Short-term: Practice her presentation several times Long-term: Enroll in a presentation skills course to build skills for the future 22 11 Developing Business Acumen Situation The CFO is considering an acquisition of a small group health insurer. She asks your employee to contribute materials to a CBA to assess the deal. She is particularly interested in the expected IRR and would like to know how it compares to other recent deals in industry. y She suggests gg that yyour employee check out the WSJ to see what intelligence is available on the company. Your employee has no idea what language the CFO is speaking. 23 Developing Business Acumen – Required Skills   Understanding of the current state of the national and global economy Insurance industry knowledge • • • Methods and techniques Profit drivers Recent events and industry trends  General accounting knowledge  Company-specific knowledge • • • • • Corporate structure Functions Key personnel Recent and upcoming events Corporate strategy, objectives, and drivers of profitability  Knowledge of general business methods and jargon 24 12 Developing Business Acumen – Your Role Actions Messaging Tools and Resources    Bring business topics into discussions with staff Assist staff with prioritizing development areas Make industry and business publications available  Help the employee understand how his or her role fits with the rest of the company Discuss the relationship between the economy, the industry, and the company’s strategy     Wall Street Journal, National Underwriter, Best’s Have employees do “lunch and learns” on industry and business topics Consider college courses or MBA programs 25 Developing Business Acumen Situation The CFO is considering g an acquisition of a small group health insurer. She asks your employee to contribute materials to a CBA to assess the deal. She is particularly interested in the expected IRR and would like to know how it compares to other recent deals in industry. She suggests that your employee check h k outt the th WSJ to t see what h t intelligence is available on the company. Your employee has no idea what language the CFO is speaking. Response     Explain p the meaning g of CBA,, IRR and WSJ (and CFO, if necessary!) Suggest additional business and industry publications to consult, in addition to the Wall Street Journal (WSJ) Discuss standard techniques for performing a cost-benefit analysis ((CBA)) and calculating g the internal rate of return (IRR) Suggest additional follow-up development opportunities for your employee to pursue 26 13 Managing Time Situation On Friday, the Chief Actuary asked your employee to rerun the Economic Capital model with some changes to assumptions. You asked her to draft a memo explaining the changes in the reserves from last quarter to this quarter. She also needed to help the summer intern g get the modeling g software installed on his machine. You find out on Monday morning that she didn’t get any of the tasks completed on Friday . . . and the Chief Actuary is not happy. 27 Managing Time – Required Skills     Prioritization of tasks Estimation / budgeting of hours Tracking of hours spent Knowing when to call it quits (a.k.a., asking for help) 28 14 Managing Time – Your Role Actions    Messaging Tools and Resources   Set a good example Actively communicate expectations for prioritization of tasks Work with employees to budget time for tasks  Discuss current workload and prioritization Ask employee to track actual v. budgeted hours for large tasks to improve estimation capabilities Encourage employee to ask for help when needed   Time tracking tools Time management courses / training 29 Managing Time Situation On Friday, y, the Chief Actuaryy asked your employee to rerun the Economic Capital model with some changes to assumptions. You asked her to draft a memo explaining the changes in the reserves from last quarter to this quarter. She also needed to help the summer intern get the modeling platform l tf installed i t ll d on hi his machine. hi You find out on Monday morning that she didn’t get any of the tasks completed on Friday . . . and the Chief Actuary is not happy. Response      Ask yyour employee p y to think about how she spent her time on Friday Ask her how her actual time spent differed from her expectations for how long things would take Work with her to build a time tracking spreadsheet Check back regularly to help her review how she is spending her time Actively communicate to set priorities and expectations for effort 30 15 Exam Progress Situation Your Assistant Actuary has been with the company for 15 years. He is the “go to” person for all questions on product valuation. He knows the product features inside and out – not only the ones being offered today, but across the various inforce product generations. He is a huge asset to the actuarial department. He wants to attain his FSA designation designation, but he seems to struggle with passing exams, requiring 3 or 4 attempts for each new exam. 31 Exam Progress – Required Skills     Time management g Initiative and self-direction Reading comprehension Test-taking capabilities • • • Multiple choice Written answer Module exercises 32 16 Exam Progress – Your Role    Provide time for studying and work with employee to manage against a schedule Provide support for required and supporting materials Consider if a non-actuarial or ASA role is a better fit Messaging    Note that passing exams is a job requirement Avoid getting into a debate over the exam process Listen and assess validity of excuses Tools and Resources    Manuals and study guides In-person courses and study groups Learning style assessments Actions 33 Exam Progress Situation Your Assistant Actuaryy has been with the company for 15 years. He is the “go to” person for all questions on product valuation. He knows the product features inside and out – not only the ones being offered today, but across the various inforce product generations. He is a huge asset to the actuarial department. H wants He t tto attain tt i his hi FSA designation, but he seems to struggle with passing exams, requiring 3 or 4 attempts for each new exam. Response     Ask the employee p y to assess what type of exams they do well on (multiple choice, written answer) Ask employee to develop a study time schedule and track actual time against it Suggest a learning style assessment to find out how employee p y learns best If issue is with exam content, offer support for study manuals or inperson courses tailored to learning style 34 17 Work / Life Balance – Situation Situation One of your direct reports is a tireless worker, consistently working weekends and late nights. She is always the first to volunteer for new assignments, even though her plate seems to be loaded. She recently cancelled a long weekend to visit some friends because she had too much work to do. You worry that she will wind up getting burned out. Additionally you have started hearing Additionally, grumblings from other staff members about receiving e-mails from her on weekends – and wondering if she expects them to work evenings and weekends too. 35 Work / Life Balance – Required Skills      Time management g Ability to set limits and say no Estimation of required work effort Delegation Ability to unplug from work concerns 36 18 Work / Life Balance – Your Role    Set a good example Help employee learn to say no – and support her when she says it Set limits on evening and weekend e-mails and calls Messaging     Assess whether employee view it as a problem Communicate risk of burn-out Discuss impact on other staff Note the risks of taking on too many projects Tools and Resources    Time management techniques Identify key areas of focus / development for year Communication development Actions 37 Work / Life Balance Situation Response One of yyour direct reports p is a tireless worker, consistently working weekends and late nights. She is always the first to volunteer for new assignments, even though her plate seems to be loaded. She recently cancelled a long weekend to visit some friends because she had too much work to do. You worry that she will wind up getting burned out. Additionally, you have h started t t d hearing h i grumblings bli ffrom other staff members about receiving emails from her on weekends – and wondering if she expects them to work evenings and weekends too.     Discuss reasons for the work/life imbalance and employee concerns Work with employee to rationalize her work load Select projects that fit with employee role and goals, and support her in saying no to those that don’t fit Instruct employee to refrain from sending e-mails and voice mails outside of work hours 38 19 Missed a meeting or session? Want a copy of that great session you attended? Need the latest info on an important issue? Buy MP3 recordings of select sessions from the following 2010 programs:  Life & Annuity Symposium g  Health Meeting  Valuation Actuary Symposium  Annual Meeting Go to soa.org/presentationarchives today! 39 Please remember to complete the webcast evaluation: http://soa.qualtrics.com/SE/?SID=SV_ctP5HBLqOpEgNnK 40 20