![\"\"](\"https:\/\/blogs.owen.prd.vanderbilt.edu\/vanderbiltbusiness\/wp-content\/uploads\/sites\/15\/2017\/08\/Fidelity_Investments_Derek_Young_2016.jpg\")
<\/a>Derek Young,<\/b><\/span> MBA\u201991, Vice Chairman for Fidelity Institutional Asset Management and head of investment client strategy for the asset management organization at Fidelity Investments<\/i><\/p>\nThe industry has changed so much. What are some of the things you have focused on with that change? <\/b><\/p>\n
The demographics of the country are changing. The baby boomers have worked so hard to save and accumulate wealth. Investors have looked for \u201cright-sized\u201d solutions in asset allocations in a general sense, by using target date funds and letting other people manage their portfolio allocations. That\u2019s been an important strategy for wealth creation.<\/span><\/p>\n But now baby boomers want more certainty as they are entering and approaching retirement. The questions are more personal\u2014when should I retire? Do I have enough money to retire? The shift is from a one-size-fits-most strategy to \u201cgive me the size that fits me.\u201d That\u2019s the shift to personalization in the investment industry. We expect to see more of that over the next decade. We are going to see the expectation that we provide more and more personalization, and by the way, do it at a cheaper and cheaper cost.<\/span><\/p>\n Tell me more about your role with the global asset allocation organization at Fidelity. What did you learn in getting your MBA that prepared you for your work today? <\/b><\/p>\n At its core, global asset allocation is combining strategies and different asset classes together. You have a lot of different portfolio managers, and you combine them together. When you are running an asset allocation stratey, you have to think about the team orientation to build the strategy that delivers the right risk and return profiles. I attribute that focus to my time here at Owen, where there is so much emphasis on teams. I think about how do you build a team, how do you make it better and stronger? When your team members are strong, they pull up the whole group. I saw that with the teams at Owen. You knew you had to pull your weight, and your team members did the same. I want teams where everyone thinks \u201cI want to make the team stronger, I want to build my partners up.\u201d That\u2019s what I love about what I do at Fidelity. I take the principles that I learned at Owen and overlay them on my business.<\/span><\/p>\n One of the greatest pleasures of meeting leaders like you is asking them to share one of their most important leadership ideas or principles. What are some basic principles that are applicable to everyone?<\/b><\/p>\n Here\u2019s five principles of leadership that can apply to any industry: Integrity. Client-centric. Creativity and nonconformity. Accountability. Finally, have fun.<\/p>\n Integrity: <\/b>There\u2019s no time in the investment industry\u2019s history that it\u2019s been more important to have integrity. It\u2019s other people\u2019s money, and they have to trust us. Your integrity has to shine through in everything you do. When people give you their money, that represents a huge level of trust.<\/p>\n Client-centric:<\/b> You can\u2019t solve people\u2019s challenges unless you talk to them and understand their challenges. That allows you to build solutions that help them. You can\u2019t do that without listening.<\/p>\n Creativity and nonconformity:<\/b> This is about innovation. Historically, for example, fixed income investments have been a great asset class for risk and return tradeoffs in diversified portfolios, with a better risk profile than equities. The question is\u2014will that continue? How do we continue to provide that risk and return stability in asset allocation strategies as the market changes? Innovation is going to continue to be the competitive advantage. The amount of money chasing new ideas creates a lot of opportunity in most all industries, and asset management is not an exception.\u00a0<\/span><\/p>\n Accountability:<\/b> What gets measured gets managed. People love to be held accountable and rewarded. They earn respect, and it provides personal satisfaction.<\/p>\n Have fun: <\/b>Life is too short. You should have more good days than bad days at work, and you should love what you do. I love teams that are cohesive enough to build friendships. I think that\u2019s the ultimate measure of success as a manager\u2014that you build management teams that are close. If they are close, they trust each other, and they can have candid conversations that make them successful.<\/p>\n The full video interviews with Young reside on Owen\u2019s website, but Vanderbilt Business<\/i> wanted to share some of the highlights from these conversations with the wider alumni readership: vu.edu\/owen-interviews.<\/p>\n Deputy Commandant of Plans, Policies and Operations for the U.S. Marines. <\/i><\/p>\n \u201cI\u2019ve been in the Marines for 40 years, and some things have changed, but our leadership foundation is solid. We make sure that everyone understands the legacy of the Marine Corps. It helps us hold the line and maintain our edge. But millennials think differently, and that\u2019s for the better. The value is when you take all that expertise and combine it with ideas. It\u2019s a recipe for success. We\u2019ve observed at companies like Amazon and Google, too, and use that information to take a comprehensive look at what we\u2019re doing. We have to be able to adapt, and ideas to do that come from the top and the bottom.\u201d<\/p>\n Vice President and Chief Information Security Officer of Hospital Corporation of America<\/i><\/p>\n \u201cI try to not sound like the prophet of doom, but the stakes have never been higher for the data that we create. Ten years ago, it was viruses and worms. Then it was stealing personal data, and 2016 was the year of ransomware. What\u2019s coming next are attacks to shut down our operations. We defend against that by making our staff savvy, by raising the bar so we can defend against a threat. We are constantly working with all other parts of the organization\u2014our doctors, our nurses\u2014helping people understand and become advocates. We are leading through influence, asking \u2018how are we together going to solve this problem?\u2019\u201d<\/p>\n Vice President and Chief Information Security Officer of Kindred Healthcare<\/i><\/p>\n \u201cThe sheer amount of data concerns me. We have increasing requirements to retain data, and the amount just keeps growing and growing. If we have to store it, we have to protect it. We\u2019re trying to protect all of it and determine what we can get rid of. Think about it\u2014if a bad guy gets into your system, he can steal your data. But if you don\u2019t have the data\u2014if you\u2019ve deleted it\u2014he can\u2019t steal it. I\u2019m also concerned about the increase in linkages between systems\u2014our data support systems. How do we protect not just our data center, but also protect the companies that support us?\u201d<\/p>\n<\/a>Lieutenant General Ronald L. Bailey<\/b><\/p>\n<\/a>Paul Connelly<\/b><\/p>\n<\/a>Charles Lebo<\/strong><\/p>\n