Inclusive Leadership: A Conversation
By Reilly McGarr and Erzhe Zhang
The Stepping Stone, July 2022
The following is a conversation between two actuaries sharing observations on leadership. They have been colleagues and friends for more than four years:
Reilly McGarr has five direct reports and counting! She enjoys baking and, like any Chicagoan, may welcome you with Malort.
Erzhe Zhang enjoys family time with his six-month-old daughter. He dreams of opening a farm and a petting zoo.
Inclusivity as a Leadership Trait
Reilly: Numerous studies[1] find the more diverse a group is, the more successful they are. I've found that more diversity necessitates a more inclusive leadership style.
Good leaders recognize that people have different ideas and potential. The key is spotting and highlighting that potential, then combining it with others to achieve maximum impact. Everyone works differently. As a leader, you need to tease out these possibilities and how to present them to different audiences.
Erzhe: If you're reading this and think, "I'm not a leader. I don't have that position yet," I disagree. There are leaders at every level. It is never too early to develop leadership traits. Reilly, how have you found success in developing inclusivity as a leadership trait?
Reilly: I like to understand my audience and objectives. But before that, I need to know myself to successfully lead and work with others.
Knowing Yourself
Erzhe: Well, you've known me for many years. How do you deal with someone like me?
- I'm goals and results driven. Under stress, I don't perceive feelings.
- I prefer a very direct approach: "Here's a to-do list. Less talking, more list doing."
- I am biased toward organized and process-driven people. I want to get to the end in a planned, organized and direct manner. When the plan goes awry, I perceive it in a negative light.
Reilly: It helps to know you're process-oriented and tailor my approach with that knowledge. When I had an idea that deviated from your plan, I knew you'd be receptive to it, but I had to come prepared with a fleshed out alternative.
Erzhe: You were closer to the problem and thus the optimal solution. I wasn't as close to the problem, so I was ignorant. We had a noncombative, professional discussion.
Reilly: We are all professionals driven by results. We do what it takes to get the job done right. I think everybody reading this has that common ground.
Leadership Takes Ongoing Effort
Erzhe: To know yourself is powerful, has been at the crux of humanity, requires effort, time, and a lot of self-reflection. This means if you want to lead, you must be willing to put in the effort.
Reilly: Knowing yourself and self-reflection is ongoing work that will constantly change and evolve. We need to be open to different types of leaders and people reporting to you, and with that knowledge tailor our approach to different types of people.
Erzhe: That’s another powerful statement, as I feel that the default state of mind is to be "closed." Having an "inclusive" or "open mind" is a constant battle against nature and acknowledgement of my own ignorance.
Lead with Empathy and Sincerity
Reilly: How about the "survivor bias"? Limiting yourself by drawing conclusions based on people who have succeeded only tells half of the story. Success does not preclude improvement.
Erzhe: Some leaders want their staff to "pay their dues," but there is no value in undue suffering. Isn't this a perversion of empathy—"since I can handle it, you should as well"?
Reilly: Sincere empathy is how I try to earn the trust and respect of my teammates. I like to get to know the people I work with professionally, which includes my personal life. I'm not saying to share all the details of your personal life, but being genuine helps create a stronger working relationship.
When I disagreed with your plan, we had a good working relationship. We knew each other a bit outside of work and had rapport. Sharing a little bit reminded us that we're human, not robots.
Leadership and Gender Traits
Reilly: Gender specific advice is not something you and I talked about until recently. It's a meaningful topic that we're all trying to figure out.
There's been a "male focused" way of leading for a long time. For instance, I've been told to watch football to have something to talk about with the client. We're finally questioning this approach. Everyone's adapting at a different rate, and it's an ongoing conversation, that I want to keep going.
Erzhe: Let's recognize that this needs to be discussed. I'm not telling anyone that the past was immoral, but maybe it was suboptimal.
We can recognize the differences in male and female traits relevant to our profession. I do not watch sports either, so I can't comment on that. But there is a different level of aggression and directness between my female and male peers.
Reilly: I like to play referee and set the tone. A lot of times, the loudest person gets the attention. Further, I think it's a confidence and self-promotion problem. I've read books[2] on this and observed it in my daily life. Men are more likely to self-promote even when unprepared. Women tend to want to be fully prepared first.
Erzhe: Gender and gender traits are not the same. You and I are of different genders, yet neither of us watch sports. Let’s expand beyond gender. What advice do you have for junior staff, who may be more reserved due to relative lack of experience?
Reilly: Find someone who you are comfortable with and can talk to. I think it's important to find ways to convey your accomplishments. For example, if I crafted the work product, I would send it to the client instead of having you do it. Stepping out of the comfort zone matters. You don't have to speak up all the time but learn to brag a little and trust yourself.
Implications for Our Profession
Erzhe: I challenge the traditional view of an actuary, who is supposedly reserved and quiet. The actuarial profession has grown in leaps and bounds, and this has brought in a more diverse set of backgrounds and personality types.
Reilly: I think having conversations like this helps. There's a lot of emphasis in business school on leadership. I feel like actuaries are trained to go to class, take exams, then you're set. Focusing more on collaboration earlier is helpful.
We're no longer a bunch of nerds alone in a cubicle typing on our calculators. This profession is greater, more powerful, and more productive. More diversity in people and working styles require more inclusive leaders. In turn, everyone feels more comfortable and will be better equipped to live up to their potential.
The views or opinions expressed in this article are those of the authors. They do not necessarily reflect the official policy or position of Oliver Wyman or the Society of Actuaries.
Reilly McGarr, ASA, MAAA. She is a Manager at Oliver Wyman and can be reached at reilly.mcgarr@oliverwyman.com. Linkedin: https://www.linkedin.com/in/reillymcgarr/
Erzhe Zhang, FSA, is a Senior Principal at Oliver Wyman. He can be reached at erzhe.zhang@oliverwyman.com. Linkedin: https://www.linkedin.com/in/erzhezhang/