People Management and Mentorship: An Actuarial Perspective
By Ruian Chen and Su Su
The Stepping Stone, May 2023
Overview
As actuaries pass the actuarial exams and become subject matter experts, a common path of career development is to transition from individual contributor to manager. You may wonder “What does it take for an actuary to be a good people manager?” We propose an answer in three words: willingness, love and rigor.
Willingness
First and foremost, a people manager must have the willingness to try to be good. Asking the question “What does it take to be a good people manager?” is exactly the right start, as it shows a willingness to invest in others’ success and dedication to improving people management skills. Willingness is a crucial first step toward successful mentorship.
To put willingness into action, speak up about your desire to be good manager. Unless those above you know of your desire, how would they know to facilitate it? Consider two direct reports, both with that same goal. One is vocal about becoming a manager while the other is quiet. When an opportunity arises, despite both being equally ready, the first person is more likely to be given the opportunity, as the intent of the quieter person remains unknown.
Developing people management skills as early as possible is a commitment that takes the willingness to the next level. Success in people management follows no single recipe and managers have different traits and styles; learning from one’s own manager(s) and other nearby managers is a great start. Observing and reflecting on what does and does not work in mentor-mentee relationships will help shape your own style and identify what matters most.
Being a good manager requires life-long learning, with constant self-reflection and regular feedback. Honest feedback comes from trusted advisors—both managers and team members—who will not sugar-coat constructive criticism or hide real issues or problems. This will identify the gaps relative to your desired manager characteristics. Good people managers practice and act on feedback and self-evaluation, and ultimately manage and influence teams more effectively.
Only when managers and team members have trust can the team work cohesively towards its common goal and individual team members receive the support needed to reach their own development goals. Such trust is built upon two key components:
- Love: the sincere caring for your team member, which helps to build and nourish trust, and
- Rigor: the high standards to which you subject your team members, speeding up their growth.
Love
Love in the context of people management and mentorship means paying attention to every step of a team member’s career growth, listening with heart, and providing the access and opportunities needed.
Providing sufficient face time to really know team members is key. An initial and timely “Meet and Greet” with new team members should be followed by frequent recurring meetings. Dedicated time for these recurring meetings ensures undivided attention. Don’t make the mistake of delaying the welcome or allowing distraction during one-on-one meetings, as those signal a lack of care and limit the chance to build trust.
In face-to-face meetings, professional interests can be learned, knowledge of strengths and weaknesses can be gained, and needs for career goal pursuit can be identified. In supporting this pursuit, managers are responsible for actions such as:
- Finding opportunities that align with team members’ goals. For example, if the goal is to master an actuarial software, placement on a project which uses the software helps gain that mastery.
- Mentorship. For example, to improve presentation skills, connect to an experienced speaker who could provide more specific advice and specialized mentoring.
- Encouraging team members’ creativity and to try out their ideas.
- Broadcasting team members’ successful ideas, or providing support and responsibility when not successful.
- Fostering initiative so that team members don’t give up due to a lack of confidence.
With this form of love from a manager, team members will feel safe to be themselves, will bring their best to the team, and will make decisions on their own, knowing they get a second chance should they fail.
Rigor
A manager also needs to complement love with rigor. Rigor requires building boundaries, being open and honest, and being firm.
Managers should collaborate with team members to set up rigorous career planning and to develop metrics for performance review. Career planning should focus on both short-term and long-term goals and should align interests and career goals with tangible opportunities. Performance review metrics should be practical and objectively measurable.
Next, managers should hold team members accountable by periodically assessing progress and achievements and by soliciting feedback from others with whom the members have collaborated. It is important that the feedback is gathered during confidential, private discussions and without any prejudice the manager may have about the team member's performance. Be sure to ask questions to understand the contexts, and request specific examples. Then the performance and feedback should be checked against goals and performance review metrics.
To best utilize feedback, managers should hold an open discussion on performance reviews and feedback with each team member individually. To prepare for an effective performance review, seek their feedback in advance, perhaps via a self-appraisal. This will better facilitate the discussion, especially for difficult conversations.
In addition to individual feedback sessions just between the manager and individual team members, managers can workshop actionable next steps with the whole team for certain common issues and concerns. This will build a stronger and more caring team who works closer together to reach a common goal.
While providing constructive feedback works well in a private setting, generosity with public praise for achievements and successes, whether big or small, will do a lot to motivate team members.
Openness and transparency regarding critical feedback, shared in a constructive manner, are also important. Although not always pleasant to deliver, critical feedback is the best way for team members to grow and avoid similar pitfalls in the future. Opting out of difficult conversations or sugar-coating critical feedback may risk confusing team members on shortcomings, depriving them of the opportunity to grow and improve.
If there truly is no negative feedback, rigor should lead to setting up an even higher bar and greater responsibility with measurable outcomes, which will lead to further growth and career progress.
Conclusion
Being willing to be a good people manager is the commitment you made to transform your knowledge and skills to support the ongoing development and growth of team members, while promoting your own success at the same time.
To “love” is to be attentive, to genuinely care about your team’s growth, and to build trust. To apply “rigor” is to take love to another level, holding your team accountable for their growth. Love ensures that rigor is unbiased, and rigor ensures that love does not turn into overindulgence.
Your team looks up to you as both a manager and a role model. Your management style will have a significant impact on their future management styles. Embodying love and rigor, leading by example, and leading with heart will not only make you an effective manager but will also develop your team members to be good managers themselves.
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the policy or position of Oliver Wyman.
Ruian Chen, PhD, ASA, is a consultant at Oliver Wyman. He can be reached at Ruian.Chen@oliverwyman.com or via LinkedIn.
Su Su, FSA, MAAA is a senior manager at Oliver Wyman. She can be reached at Su.Su@oliverwyman.com or via LinkedIn.