Transcription:
Patti Harman (00:06):
Chief operating officers handle a wide range of responsibilities in their companies, including managing resources and workflows, overseeing operations and ensuring compliance with regulations and implementing a company's strategies to support its goals. Joining me to explain how these roles have evolved and the strategies COOs are employing to facilitate growth in their companies is Michelle Buswell, COO of Legal and General America. Thank you so much for joining us, Michelle.
Michelle Buswell (00:37):
Oh, thank you so much, Patti, for inviting me today. It's a pleasure to be here.
Patti Harman (00:41):
So I provided a very basic explanation of some of the areas that COOs manage in my introduction, but I know there's so much more to the job. Would you please share with our listeners kind of what your day-to-day responsibilities look like and how the job has evolved over the last few years, especially as technology has changed the insurance industry in a lot of different ways?
Michelle Buswell (01:09):
Chief Operating Officer
Legal & General America
Patti, I have to say I think I have the best job in the company. I absolutely love the diversity of my role as Chief Operating Officer for LGA. I oversee the day-to-day operations for new business and underwriting, enforce service, which includes our call center premium services and any kind of transactional processing that's taking place, claims, licensing and contracting and reinsurance operations. So basically, I have accountability for driving innovation across that value chain, which includes seeking out new technologies, services, and even alternative operating models to keep the company competitive and relevant. My team and I have the ultimate responsibility for designing and implementing the service experience that we want our customers to have, and all of that needs to be done with an unwavering focus on compliance and quality. I will tell you though, that one of the things I consider most important about COO's accountability is being a talent champion.
(02:11):
So coaching, mentoring, and really optimizing the team's performance. And in terms of the latter part of your question of how the job's evolved over the years, honestly, I've been saying for the last five years that there is no better time than now to be in operations. There's been this significant shift toward leveraging innovative tools and technologies to improve both internal and external user experiences. And for someone like me who has been in operations for a very long time, it's been incredibly rewarding and exciting to see operations staff start to really develop skills and expertise in areas that we never did before, like data and analytics and sophisticated OCR tools, machine learning and artificial intelligence. So I think our evolution is on a great trajectory.
Patti Harman (03:06):
You really do have your finger on the pulse of everything that's going on in the company. Then basically, what are some of the major challenges companies are facing as they work to integrate AI and other technologies safely into their operations?
Michelle Buswell (03:22):
Yeah, that is such a timely question because I think all companies are on an AI journey, some probably further along than others, but I think everyone is on a journey and we're all facing very similar challenges, just as you said is how do we safely integrate not only artificial intelligence, but other innovative tools into our ecosystems? We could probably spend an entire podcast talking about the challenges, but I like to think of them in two buckets. There's the obvious challenges and the not so obvious challenges, and I'll just highlight a couple of them. I think some of the more obvious challenges that everyone's facing would be regulatory and legal uncertainty. So I think navigating AI standards from a legal and regulatory perspective can be complex and difficult in the United States. Governance, I think, is top of mind for everyone. I think that we all want to have the right balance between governance and the degree of control, but we don't want to hinder creativity and speed to market.
(04:27):
And then I would say quality is another one that's in that obvious bucket of challenge where you need to ensure that data is accurate and unbiased. But some of the not so obvious challenges that I know we've faced are things like change management and workforce readiness, really keeping the staff not only current and fresh, but also avoiding change fatigue. I think a lot of us are very, we're almost overzealous on doing proof of concepts and we launch a lot of things. And so change management and avoiding change. Fatigue is a big one. Second, would be many of us work with third-party vendors, so assessing and monitoring their AI tools I think can be challenging. And then last but not least, and that not so obvious bucket would be culture. Really keeping your finger on the pulse of how the organization is adapting to that type of massive change and how the culture of your organization is evolving.
Patti Harman (05:32):
Culture is such an important aspect of any company and I think a lot of times you don't realize what a role it plays and how everyone contributes to that. So that is a really important aspect. How is artificial intelligence changing how you execute your job and manage your different areas of responsibility?
Michelle Buswell (05:54):
Well, this simple answer for me is absolutely yes. Years ago I think that it was all about six sigma initiatives, process improvement, business process outsourcing for labor arbitrage. But today it is so much more than that, and AI is definitely influencing how I personally approach my role. It's allowing me to move from being a little bit more reactive and reactive in my management to more proactive, insight-driven leadership. We're leveraging AI to do three big things: to identify, to predict and to improve. For me, it is freeing up my time and my team's time, eliminating repetitive tasks so that we can focus more on strategy, innovation and customer experience. It's helping us in very practical ways, everything from improving operational operational efficiency to managing projects more effectively.
And I'll share a personal example with you how AI is helping me personally. I had a Chat GPT help me plan my summer vacation this past summer. I put a prompt in. I told Chat GPT where we were going, who was going, the number of days, what I wanted suggestions on, and I got a full-blown day-by-day itinerary with dinner reservation suggestions, and my family had no idea that I used AI to help plan the vacation.
Patti Harman (07:22):
That is such a great tool. It's so funny. I used something similar for a trip I had planned to Williamsburg a couple of weeks ago and it did the very same thing. It's like based on your interests, these are the places you should go and these are the restaurants we would recommend. And you're right, it becomes, when you look at it in terms of being a tool and a way to help you work more effectively and manage your time better, it really makes a very big difference.
Moving on, you mentioned being in charge of the workforce and that sort of thing, and workforces have become much more diverse in terms of age and expertise. Technology is constantly changing and at the heart of all of this for companies is ensuring that customers receive the services that they want and need. What have been some of the biggest changes you've seen as you've worked to execute LGA strategies in terms of managing your teams, integrating new technologies and focusing on the customer experience?
Michelle Buswell (08:28):
Yeah, I am going to date myself a little bit and tell all of your listeners that when I entered the workforce, we didn't even have the internet. And so when you fast forward to today, we not only have the internet, but we've got digital agents, chatbots, avatars, robots. We're using large language models. I remember a time when everything was done on mainframe systems and green screens. Nothing was digital. And when you wanted to communicate with someone, you had to pick up the phone and use the landline or you had to put something literally in the mail. So I've seen insurance shift from a very manual, paper-driven application process to a data-rich, technology- enabled ecosystem. I don't think any of us envisioned years ago that we would have a day like today where we've got a fully digital application process, text messages being sent to agents and insureds instant decision capabilities.
(09:30):
And when a case is referred to an underwriter, I don't think any of us imagined that there would be a day like today where artificial intelligence is being used to summarize hundreds of pages of medical evidence for our underwriters, cutting cycle times of months to just hours or a couple of days to get an offer out to an applicant. So for me, at the highest level, what I think has changed the most is speed and probably very quickly followed by customer expectations and the role of data and insurance and the life insurance process. The one thing that hasn't changed though that I'll share with you, I think it's interesting to look at what's changed and clearly the process is drastically different. The one thing that hasn't changed for us at LGA though is our mission, and it's to protect more American families and businesses, and we really want to be the easiest company to do business with. So the good news is our mission hasn't changed, but our process has drastically changed.
Patti Harman (10:37):
And that's what I think a lot of people don't realize is how much that process has changed just from year to year over the last couple of years. When you look at the skillsets that are involved, what skillsets does an individual need to be a successful COO, and how have they evolved over the years? Because just based on our conversation here, you covered a lot of different areas and I'm thinking, oh, well she needs to know how to do this and this. So can you kind of share what are some of the key skillsets the COO should have?
Michelle Buswell (11:15):
It's an interesting question because I think there are some skills that have always been required, and I think that they're required for any leader to be successful. And then there are some that I think have recently emerged that I think we've almost had to reinvent ourselves a little bit. So the ones that I think are kind of table stakes for everyone is emotional intelligence. You really need to have a high degree of emotional intelligence to be a good people leader. For me, that's been table stakes for a COO, a strong blend of operational and strategic abilities, and that I think has been a table stake for quite some time. And a third one that comes to mind for me is humility and continuous learning. I think that that's another table stake, but what I think a lot of us, particularly those of us that have the operational discipline, have needed to almost reinvent ourselves is earlier in my career, it was really all about operational excellence was defined more by efficiency and control.
(12:24):
And today, yes, that's a big part of it, but it's equally as important to have resilience, innovation and to really know how to empower others. So I view the COO role as expanding from just managing operations to shaping strategy, culture, digital transformation, and empowering people. That to me has been kind of the skills that we've had to almost reinvent ourselves on. It's no longer just, well, we're going to give our problem over to our technology team and let them figure it out. We've got to be skilled at what's available in the market and we're thought partners, our IT team versus just handing something over the wall.
Patti Harman (13:09):
I think you've kind of answered my next question a little bit already, but I want to know why is this role so integral to the success of a company?
Michelle Buswell (13:20):
Oftentimes, I think that the COO acts as the bridge between strategy and execution. The COO works in partnership. I know I do. I work very closely with my peers to set the vision and the direction, but the chief operating officer, oftentimes, we are the arm that's doing all of the execution. When you think about the functions that we're representing, we're doing the day-to-day execution with our customers. So we are that bridge between the vision translating strategy into execution, the overseeing of the daily day-to-day operations and ensuring that we're running efficiently. I take very seriously my accountability to our unit cost, cost per application, cost per enforce policy, cost per claim. Those are things I think are really critical to the COO's role.
Patti Harman (14:16):
And you play an important part in integrating with all of the different departments within the company, probably more so than, well, maybe HR is a little bit is involved in all of that too, but you really play an important role in casting the vision and then seeing how it's executed, which is really a huge responsibility.
We are going to take a short break now and we'll be back in just a few minutes.
Welcome back to the Dig In podcast. We're chatting with Michelle Buswell of Legal and General America about the role of COOs in shaping and executing company strategies and more. So to kind of pick up on what we were talking about before, what are some of the biggest challenges you think today's businesses are facing as they seek to execute their growth strategies?
Michelle Buswell (15:13):
We touched on this a little bit, but let me go a little bit deeper on the pace of change, because overall, I think that the pace of change is the biggest challenge, particularly when it comes to technological change. The rise of AI automation, digital platforms, it's completely reshaping the industry at an accelerated pace. And so keeping up with that change without disrupting your day-to-day operations is a massive challenge as we try to keep up with innovation and leverage it. I think many companies are also challenged with change fatigue. I mentioned that a little bit before earlier, is that we get so excited with the next thing to try the next proof of concept. So for us at LGA we to try to combat that, it doesn't prevent or eliminate change fatigue, but we've got a pretty disciplined change management process that we use. We use pro size, added to our change management approach to managing change, and it helps a lot. So again, I would say pace of change, fatigue, big challenges. And one other one I would say is talent. Really making sure that you've got the right skilled workforce who can execute on the growth strategies is I think a big challenge in and of itself. And let's face it, we're all kind of fighting for the same talent in the market. So I think that talent is one that we cannot underestimate the criticality of having the right people with the right skills sitting in the right chair.
Patti Harman (16:52):
That is so true. And I will say one of the other things is the willingness to be flexible. That's what I'm seeing just within my own editorial team and having to explain to them the skillsets that we use today. Some of them are the same, some of those principles are the same, but how we execute our job just continues to evolve at almost a dizzying speed, I think. So that's a really important facet.
What are some of the lessons you've learned or secrets maybe that you're willing to share as you've led LGA to see phenomenal growth in your market over the last several years? And I'm not asking you to share a lot of secrets, but I'm wondering if there are things that you've learned like, wow, this is a key facet or a key issue to understand.
Michelle Buswell (17:42):
So the first thing I would say is LGA's success has definitely been a team effort. We have a saying that we believe in is that it takes a village and it does for me, the top three things that I would say, and the third one's probably the most interesting, but I just said the first one, which is talent. Having the right empowered engaged staff with the right skills is absolutely a big learning. And the second is always focus on the customer. So sometimes we run the risk that you get so inwardly focused, but you've got to keep that outside in view. But the most interesting learning for me is operational excellence can, and for us, it's viewed as a growth driver. And in many companies, operational excellence is oftentimes viewed as competing or conflicting. Oftentimes, it's thought of while streamlining operations, that's not the cool thing to do, but it truly can be a growth driver because it frees up valuable resources so that you can continue investing in innovation and service and other growth initiatives. So what's been the most interesting learning is operational excellence actually can be a growth driver and you shouldn't view it as a competing priority. It's not competing against the next new product that you want to create. It can actually be a compliment.
Patti Harman (19:16):
So what opportunities, as companies are implementing these strategies, what opportunities do you think some companies miss when they're trying to grow in their market or their industry?
Michelle Buswell (19:28):
I'm actually going to build on the comment I just made about operational excellence can be a growth driver. I can't tell you how many times I've been in a senior meeting where you're around the table with your colleagues and you're trying to prioritize the next investments and strategic initiatives to launch, and you typically go toward those new products that you want to develop. And those are critically important by all means. But I would say that one of the opportunities that's oftentimes missed, and I think that we do a really good job at LGA of keeping it at the forefront, is the streamlining of operations.
(20:09):
We don't view it as a cost cutting measure. We view it as fuel to drive the growth agenda. So for us, streamlining operations and ensuring that the operation is scalable has allowed us to have even more investment on other strategic initiatives that we want to do. And it's actually been very rewarding for our staff. When I mentioned earlier that it's been so rewarding for someone like me who's been in operations for so many years to see the skillset of the staff evolve, it's been very rewarding for them that we've eliminated some repetitive work and now they're doing more of the analysis and they're working with data and they're going home very, very empowered and rewarded,
Patti Harman (21:00):
And you like to see your staff energized and excited about what they're doing because that's an important aspect of the job. It doesn't become the same old, same old, and I love seeing people get excited and invigorated by what they're doing. Companies talk a lot about the importance of growth strategies, but our risk management strategies equally as important for companies. And by that I mean looking at maybe cybersecurity or data management, technology usage, those types of things.
Michelle Buswell (21:35):
Absolutely. Risk management is just as important for sustainable growth, especially for us at Legal and General America. In fact, I would say that growth without proper risk management is really fragile and you run the risk that it's not sustainable. So I think one of the things that we did recently that just is a great example of this is we don't believe that things like cybersecurity as an example is just an IT issue. We think that things like cybersecurity or data management or even our AI governance, that is for everyone to have top of mind. And so one of the things that we just recently did is we've assigned throughout the organization cyber champions. They're throughout the business and they partner with IT on all kinds of awareness and prevention tactics that can be deployed. We want the staff, especially those operations who are the heaviest users of the tools that we have to feel an accountability for compliance and risk management.
Patti Harman (22:47):
Yes, you're right, managing risk, it really does fall to everybody, especially in the cyber space. That's an area I've been covering for a number of years and just seeing how it has evolved and how smart the threat actors are these days, it really does become a responsibility of everybody in the company. So as we wrap up here, if you had one piece of advice to give to someone aspiring to move into an executive level position, whether it was a CSO or a CIO or C-T-O-C-O-O position, what would that advice be?
Michelle Buswell (23:25):
So I do everything in threes. So my three things, but I would say is be your authentic self. Stay humble and always be open to change. Always be open to change. Like I said, when I joined the workforce, we didn't have the internet, and so I'll just remind you of how far we've changed. So those would be my three things is be your authentic self, stay humble and always be open to change.
Patti Harman (23:54):
Well, thank you so much, Michelle for sharing your insights with our audience. Thank you for listening to the Dig In podcast. I produced this episode with audio production by Adnan Khan. Special thanks this week to Michelle Buswell of Legal and General America for joining us. Please rate us, review us, and subscribe to our content at www.dig-in.com/subscribe From Digital Insurance, I'm Patti Harman, and thank you for listening.