American International Group, Inc. (AIG) Earnings Call Transcript & Summary

Hey. Next up, we have Driving Cultural Change into 2021 and Beyond. Really, it's -- it really always comes down to people, doesn't it? It's really amazing. It always comes down to people: How do you lead? How do you empower? What's the new paradigm of leadership and empowerment? And we have a really distinguished panel here, really excited. What -- first up, so Melissa Hohauser from the TSC -- TCF Bank, she's the Senior Vice President of IT, Servicing and Ops.

Hey, Melissa, when you think about culture and critical success factors, building a high-performing culture in this work-from-anywhere, work-from-home environment, what are the key -- what are the lessons learned and key factors that you've come across?

Well, thank you, Hunter, and thank you for having me here today. What an interesting day. I feel like I'm going to repeat some of the things that I've already heard because there is a common theme here. In order to have that empowerment culture, you have to have trust. And with trust, you've got to empower your team. And for me, there's 3 things that have really -- I would say, there are 3 things that have really driven my cultural journey, and that's passion, vulnerability and courage. Without the people doing the thing, we're not going to move forward. And these kinds of change and uncertainty are of the utmost time to show your vulnerability, show your cards and be there for your team. And in turn, you'll see -- you'll reap the benefits, I'll say.

So what does it look like being there with them? What does that essentially -- let's click down on it one more time.

Sure. Sure. So to click a little bit -- to double-click into that, if you will, being there for my team is listening, listening to understand and understand what skills I've developed over the years and how I can help them to either learn them to bring them along in my journey. It is going to be very unique to the individual. I am lucky enough to have a team where I can be very connected with each of them, one-on-one, so listening and responding. And then following through because you can listen and you can act. But if you don't follow through on what you've committed to, you're not going to build that trust and, ultimately, that empowerment culture.

That's really key is that follow-up, right? And then any kind of a secret to building that trust because that really is the key, right?

Building the trust. You've got to feel it. It's got to be genuine. It's come natural to me as I've put an emphasis on it. So that is probably a lot of my mindfulness, being present in the moment. We have a tendency, especially in this digital world and especially with what 2020 has put forward for us, to multitask. I heard others talking about this as well, and leaning in and really focusing shows that trust.

Excellent. Love it. Great job. I agree. Trust is the key element. Stephen Covey Jr. has The Speed of Trust, it's a great book, makes me think of Stephen Covey Jr. And next up, we have Julia Anderson. Julia is the Global CIO of Smithfield Foods, a big SIM fan and friend. And actually, I believe, Julia, an graduate, right?

20 years ago.

Amazing, right?

And send 2 to 3 people every year.

2 to 3 a year, that's -- you must love the program.

Love the program.

Very cool. When you think of digital acceleration, you've been in an interesting position at Smithfield, North American-based food processing, right, one of the largest in the country, difficult thing in a pandemic. And now we're talking about digital acceleration. Walk us through that, talk us through that. What does that sort of look like?

Sure. So well, 2020 has been real for everybody, right? There's a whole lot of new realities that have hit everyone. We've had to really flex and change. And sort of no different in the food companies being out front, we had to really quickly worry about our food, the safety of our workers, how we were going, like everyone else, to shift. And we've all talked a lot about the basics, right? We have to run our business. We have to make sure our CEOs are running the business that we're able to deliver. But I think one of the key important topics is a lot of things got real also with our world and with understanding how people are feeling, how they're being treated. There was a lot of things going on at the same time around -- for us, around really being able to take what's being said about us and our company and how we're treating our employees and really make sure that we're -- we understand that conversation and we understand what we're doing and what's important. So when you think of the cultural aspect, and I think that the cultural aspect of what we went through at Smithfield -- now early on, we had to sort of get our act together and figure out how to test people, how to send people home, how to keep the lines running, how to get the food delivered. That was one piece. But the next case with them, how do we engage in our communities? And what's the cultural changes that we're going to make as a company to be able to thrive and to be able to survive? And so really, a lot of conversations that maybe we wouldn't have been having started happening. One example is after the George Floyd incident, with our Black Professionals Network, we sat down and said, "What should we be doing as a company?" We do a lot of philanthropic things, but one of the things was really around ensuring that we thought about where we were connecting people and where we were actually donating not only food but connectivity. And so this brought me sort of to this concept of equality and everybody having access. And when kids are working from home, people are working from home, and you really see the difference between us and some of the frontline workers in our factories and very remote locations in the farms. For me, it's some of the cultural conversations we're having that, wow, maybe as we grow our digital engagement, where we don't have equality, and we have to really focus on that as technologists. How do we all come together and focus on equity, not just what's the message, but is everybody getting it? And does everybody have access? So I think there's a lot of things -- being a food company, we had to get the things figured out early on. But a lot of conversations now around technology and how do we automate our -- the things that were -- our engagement with not only our employees, but the engagement also with our communities and our employees' communities. And so we've been having a lot of conversations around that. So I think that's a really interesting outcome, and I think we have a long way to go as technologists. You can talk about bias in AI, and you can talk about a lot of things that need to come together, but even just getting people engaged and connected.

Well, Julia, you had an amazing career some 20, 30 years into it, right? And now you're at a senior executive level, and scale matters, and layers matter, right? How do you manage a large organization?

Right. So we have heard someone talking in the last session about changing how we communicate and the conversations that we're having and being -- cross-functional silos really coming down quickly, having really pointed conversations with very clear direction and being able to cascade that throughout the organizations, decisions being made much quicker. So I think through this pandemic, a lot of these things that we've struggled with in the past, to really even just come up with better ways to communicate, we've kind of sliced through a lot of that. And being able to -- I think we talked about it before. Be courageous, be bold, speak up, take advantage of that opportunity and say some things that you might have not have said in the past to break through things that we need to break through very quickly to solve the big problems facing us, whether that's planning differently, whether that's getting new procedures out, getting buildings of whatever that may be.

Excellent. Julia, great to see you. Thank you so much for coming on the program. We'll sort of back here just a minute. Next up, John Repko. John is the EVP and CIO of AIG. John, when I -- we've been collaborating with each other probably 20 years now. John?

At least.

Right?

At least. Great to be here, Hunter.

Good to see you, my friend. You've had an amazing career. How many different CIO roles? Five, six?

Yes. Five public company and one business unit.

Okay. And then now at AIG, the scale that you're operating on, just kind of a context global scale?

Yes. 80 countries, 5,000 IT employees, $2 billion in spend.

And your role now includes the CIO of AIG, plus you're Head of Procurement.

Yes. Yes, it's an interesting mix. Keeps it lively, for sure.

Amazing. When you think of the role of the CIO, you've been tracking it for a couple of decades, what's the biggest challenge that you're seeing right now and the biggest issue that CIOs need to tackle?

I'd say cyber and talent, Hunter. And I think they're equally challenging right now. Think about what happened this week with the U.S. government, the implications. There's just never a dull moment in cyber. And then talent, I continue to see that we're operating in a 0 unemployment situation. And one of the better things that came out of COVID-19 would be bringing down those walls of where you can get talent from. That's been really interesting to watch. We certainly have opened up our walls and are much more open to hire remote and even fully remote situations.

So what does that look like?

Well, when you find a cloud engineer and they want to be in Denver, and you don't have a site in Denver and you ask them to go to Phoenix, they don't have to do that these days. There's 20 companies that let them work from home. So we found just a little bit more flexibility, let people work where they want to be. Otherwise, you're not going to get the best talent.

Interesting. John, when you think of the importance of culture and talent, what comes to mind?

Well, look at the impact that videos have on how we work. If you looked at my calendar a year ago, you wouldn't see a single video conference call the whole month. If you look at my calendar today, you don't see a single audio call, and I think there's been a tremendous amount of good outcomes associated with that. It's a little challenging at times as well. But -- and I think another thing that our IT folks have gone through across the globe are just adopting to a culture of cloud, working closer with the users, much more agile work versus waterfall, all the governance and security that comes around cloud. I mean, that's a big cultural change for a lot of IT folks.

Got you. Makes sense. John, when you think of your career ascent, you had a great career. What are the top kind of 1 or 2 ideas you'd like to impart on to a broader audience of IT leaders that maybe one day want to be a CIO?

Yes. Build your boardroom skills. It's a lot different when you're in front of the Board of Directors and when we -- with management. Try and do that early. If you're a direct report to the CIO, find a way to present and get some experience. And then once you're in a CIO seat, build your relationships with your Board. It's always important to have someone on your Board who's your Board buddy, somebody you can talk to. Hopefully, they have a technology background. But I think that -- don't wait until it's too late to get some Board experience, pitching to the Board, thinking like a Board because when you get selected to be a CIO, it's going to be too late.

Excellent. Great insights, John. Thanks for coming on. Stay with me. Next up, we have Quintin McGrath. Quintin is a Senior Managing Director of Technology Management and Enablement at Deloitte. Quintin, good to see you.

Yes. And it's good to be here. Thank you.

Always. And what an interesting title. Talk to us a little bit about technology management and enablement.

Yes. It's an interesting role I have. Essentially, it's across a number of areas that help transform the organization. So running all the way from innovation and helping the organization to think about innovation, not doing the innovation but capitalizing the innovation in the organization, architecture, change, project management, service focus, so all those areas within our global IT organization, really trying to focus on how do we accelerate that transformation.

And you also have an expertise around innovation and cultural layers, of some 5 cultural layers inside of Deloitte.

Yes. So that's an important personal focus of mine is really how do we consider our teams? Recognize that there are 5 different generations within the organization right now, and each of those have a different way of operating and different likes and dislikes and different expectations of their roles and the reason for being in jobs. And then not only that, we have the -- in Deloitte, like many of my -- our fellow panelists, a global organization with many countries represented as well. And so the balance between just multi-generations, the various countries and, of course, all the other diversity that we have in the organization that we find is so critical.

And when you think about how COVID has impacted the organization and the need for diversity, equity inclusion, what do you think about?

One of the key things is there's just -- there's a body of knowledge that's growing around the importance of diversity and especially diverse thinking in terms of innovation and success, business success. And so one of the key things is, how do you maintain and make sure you continue to grow diversity, equity and inclusion in an organization? And that certainly is a huge driver in our organization, very, very, very strong focus from our leadership. Now what -- something that COVID has done is it's impacted the different parts of our organization, different parts of not just our organization but literally the community differently. And we start seeing a greater impact on -- for instance, a greater impact on African Americans, a greater impact on Hispanics. And the focus on -- and then trying to reestablish that equity then becomes a complex challenge for leadership and for business leaders. And so being aware, number one, that there is this imbalance in impact that COVID has had, whether that's just literally the caregiver that's more predominantly perhaps a woman, or there's the different parts of our economy that have been affected differently, so whether it's a service industry or maybe the lower levels in the organization, those are often impacted by people who are trying to develop their careers. And all of those aspects we have to then consider as we're going to recovery, as we're going to figure out how do we thrive in this new environment, that we've got to think and got to recognize that there is this imbalance that COVID has caused that we have to right as leaders as we look forward to the COVID -- the stabilization as we get into vaccines and go from here.

So you folks are really, really smart at Deloitte. We all know that. And my good friend, Larry Quinlan, you work with on a global level. I mean, when you think about cultural change and cultural shift in this work-from-anywhere environment, with all of these different enablement and collaboration platforms and tools, what's working from a technical perspective? And what's working from a communication perspective?

Yes. There are a lot of things that are working from a technical perspective, and we were in some ways a little bit lucky in terms of the fact that the way we always operate as an organization was remote. And so there's a lot of our basic foundation was -- we distributed through the world. We used to be in client's sites. We were used to being able to communicate and be able to operate remotely. And so in some ways, those basic infrastructure and basic technologies were fairly well established in Deloitte and other professional services organizations. And so we've been able to say, "Right, let's use that foundation and really step up." And so you're seeing the ability to use a lot more and a lot richer environments in terms of how do we communicate, how do you take advantage of those -- of the environments, the platforms that we have in place to communicate. And it goes back to this whole understanding of where people are at. Going back to my interest in the different generations, the way we communicate with different generations and different parts of the world are different. And so being able to have video and extensive use of video, we've been able to literally have the privilege of being invited into people's homes in many parts of the world through video, through this type video conference is a very rich experience. And as a leader, we've been -- I've been able to take advantage of that. And we've seen it happening in our organization a lot, where leaders have seen the benefit of getting closer and understanding and helping our people and think about people holistically and much more as whole people, which I find has been such a rich environment. So that goes all way back to, we've got the platforms that we can use and then build on that, the communication as a leader, thinking about how do you communicate, how do you encourage, how do you inspire your people in times like this.

Well done. Great job, Quintin. Thanks for being on the program. Mark, do we have some questions in the chat there that you want to jump in on?

We haven't had any that I want to jump in, but I want -- i have to say the comments that I'm hearing, Hunter, from all of these, it speaks to the complexity and, frankly, the importance and the criticality really that these leaders now have. We're -- as Dr. Bray commented earlier today, not only are we leading in every aspect of the strategy of the business, but also at the forefront of defending the business and the geopolitical fight. It's a remarkable space we're in. And what it reminds me, Hunter, is how critical our network is, the relationships that we have to be able to connect and learn from one another during this time.

Yes. It would be interesting, right? I agree with you on that one, Mark. But let's talk a little bit about the networks. Melissa, the important -- and the power of your network, your -- the networks that you're involved with.

Absolutely. I think now more than ever, I think it's critical to have forums like this to talk through what it is that we're experiencing, what we're learning, what we're challenged with. And it's very energizing. Every one of that HMG Strategy SIM sessions that I participate in, I get very energized by the community that we have here. And I, myself, have leveraged multiple women's networks during this pandemic to, I'll say, do a check-in, make sure that I'm on par with what my peers are doing and how they're doing, see if I can help or if they can help me. And without these networks, I just certainly -- I don't know what it would be like without the video and being able to see everyone and really having that relationship, I said it in the beginning, with the trust and partnerships.

Thanks there, Melissa. Julia, do you want to comment on the power of the network that you -- and how you network, really, tips on networking?

Sure. Absolutely, yes. So I think the power of the network, especially across SIM and HMG and these forums, is the ability that I could hit up Quintin tomorrow or John tomorrow and just say, "Hey, I have a question. I need help. I need your input. I need someone from your team to connect with someone from my team," just the power of being able to phone a friend. I mean, it's just right there, and the wealth of knowledge, experience, whatever experience it may be. Also, being able to have very candid, frank conversations, right? There's a lot of stories that we're hearing now, right? There's a lot of people and humanity stories. And we're all saying, we're at a point that we actually have a power to choose where we want to contribute or we want to help make change. All of our children, they want to make change. They're born believing they have to make change, whether it's for the planet, for the society, for the people. And technology is right there. So for me, the power is really when I can come together, also in some women's networks, mentoring and have a goal to make a difference, I think that's the power.

Awesome. Love it, Julia. Again, great to see you. John, do you want to comment on networking as it relates to kind of your professional performance over the years and the value and the importance?

Look, it's incredibly important, Hunter. And in my view, it really never stops. We've all met folks who maybe network when they're looking for a job. It's truly a 7 by 24 by 365 activity. And I think one of the most important things is to be known as a good networker. I try to give back 10x what I take. And when you do that, you develop a brand of a giving and a caring networker. And I think that's one of the most important things. So for the folks out there, focus on what you can give back. And I can guarantee you, when you need somebody, somebody is going to be there for you.

Awesome. Great comments. Thanks, John. Nelson Burge just picked that up, and he says, "Give back 10x what you take." That's great. Great comment. Quintin, you want to jump on that?

Yes. Just the whole aspect around networking is just so critical, not only the network within the business or around the global organization, but just taking a look at critical networks like this one, like SIM -- like HMG, like SIM, there's a number of areas where just being able to connect us with peers. Now I love what Julia said of kind of the ability to pick up a phone and call people that you've been part of and just you're connected with, that really makes a difference. If I go back to my -- the younger days in my career, it was networking with the senior people, and John made the comment about the Board connection early in your career. For some reason, I managed to get that right, right at the beginning, and I befriended the Chairman of the Board. And it was just an amazing friendship that really helped me think differently as a leader. And those -- to me, those are the rich times that I'll never forget and just so critical as far as networking and really helping others. I love that kind of concept give back 10x what you -- you pay it forward like crazy. I think it's so important.

Very cool. A great time to be a tech leader now?

For me, being a tech leader right now is the most exciting thing. As we touched on earlier, there's just so much happening. There's so many capabilities and technologies today that just were never there. I was just thinking about the other day how we've had cycles over the years of AI being good and having to go into a freeze period because there was no technology. And now that technology is there, we can do greater and more important things with the technology. But then we have to start figuring out how do we -- not just can we do it, but should we do it? And how do we do things and do things in a positive way for the good of all, for the benefit of all? And that, to me, is just a rich place for us as leaders, and that's our responsibility. We've got so much responsibility on our shoulders. Every company is a tech company. We, as leaders, tech leaders, need to be carrying that forward and being an example and helping our organizations take that and really use the technology for the good of all.

Excellent. Thanks, Quintin. Great to see you. Thanks for coming on the program. Melissa, final comment?

I just want to leave you with a quote that I just found very, very fitting for me and my approach to my culture journey. The stronger the culture, the less corporate process a company needs. And when the culture is strong, you can trust everyone to do the right thing. People can be independent and autonomous, and they'll be entrepreneurial.

Love it. Love it. And exciting time to be in our industry.

Very exciting. Yes, absolutely exciting in technology. And for me personally, in the financial space, leaping into a third merger in less than 5 years, so long for the roller coaster.

Great. Great to see you, Melissa. Julia, any final comments?

I really want to put an exclamation point on what Quintin said around, we have to take our technology responsibility very seriously. I think that technology is driving every company, and we have to make the right decisions, how we deploy it and make it accessible to everybody and really use it to make the world better.

Well done. Thanks for being on the program. Mark, Mark Reisbaum has an interesting quote there on the chat. Do you see it?

Yes. I do. And Mark Reisbaum, just a high-quality guy, ain't he, Hunter?

Yes.

He says, "A leader who gives back to their community grows in their career. It can make a difference, a significant impact that you may not even know that you're making. Those -- as leaders, everyone is watching you. Everyone is watching us and every decision, every action, every communication that we make. And we never know everyone that we're going to impact. So continue to lead, continue to connect and continue to do it the right way." Boy, I love what Melissa just said, by the way, around the culture. And going back to The Speed of Trust, Hunter, that concept, that culture, a culture of trust actually lowers the cost of doing business and increases the speed. It's remarkable. Thanks, Melissa.

Well said. Exactly, I agree 100%. John, a final word?

Yes. Hunter, in these unprecedented times, I think the most impressive executives are going to be the ones who take care of their talent. And that could be anything from growing their talent, retaining it, but more important, during these troubling times, just reaching out. I try to make 40 to 50 quick reach-outs, whether they're texts, e-mails or calls across the globe every week. And it's amazing what you get when you call somebody for absolutely no reason to check again. So I would just say, take care of your talent.

Love it. John, great to see you. Thanks for coming on the program and the summit. Melissa, great job. Quintin, Julia, thank you so much. Mark, we got one more session.

Yes. I know. It's been an amazing day. I mean, I can't believe we're this far into it already, Hunter. But a great day.

Getting a lot of great feedback on the chat room. Thanks, guys.

Yes.