Interview with Tom Tropp on Business Ethics and Corporate Culture

[This is the full interview with Tom Tropp which was published in our Kaizen newsletter.]

Tom Tropp on Business Ethics and Corporate Culture

Tom Tropp is the Vice President for Ethics and Corporate Culture at the AJ Gallagher Corporation based in Chicago, an international insurance firm with over $5 billion in revenue annually.

Kaizen: Thanks for being here to talk about how you do ethics and corporate culture at Gallagher.

Tropp: You’re welcome.

Kaizen: Insurance provides a valuable service to people, but is an industry that sometimes has a shady public reputation. What steps do you take at Gallagher to counteract that notion?

Tropp: The insurance industry has that image. There’s a joke about how solitary confinement for a month is punishment, but worse than that is to be locked in the cell with a life insurance salesman for a month.

Kaizen: It would feel like eternal punishment?

Tropp: Right. The business does have that impression because people don’t like to buy insurance, but they know they have to. And a huge percentage of people that buy insurance never claim, so they look at that money as going out the door and of no value.

The actual fact is no business in existence can operate without insurance. It’s not a matter of if you’ll have a claim, it’s when you’ll have a claim. Businesses simply always have claims of various types, whether it’s worker’s compensation or fire damage or liability suits.

One thing you assume in our business is that you will have some negative feelings toward what you do, but then it’s offset when the claim happens. If you have good coverage, and the broker has done a good job, and you’re brought back to whole again, then you appreciate it.

Kaizen: Absolutely. You work for AJ Gallagher, the third largest insurance brokerage firm in the world. Tell me about the company.

Tropp: The company is publicly traded, New York Stock Exchange. 25,000 employees in 34 countries. We have four divisions in the company. One division does property casualty insurance. One does employee benefits insurance, health insurance, life insurance. One does surplus lines insurance, which is a term that means secondary market, so insuring a dynamite factory. Normal insurance companies don’t do that. Surplus lines carriers do. Then, that group moves into things like Lloyd’s Coverage, Lloyd’s Brokers in London. We have about a thousand people in our London office doing nothing but Lloyd’s Brokerage throughout the world.

Then, the fourth division is a claim handling division called Gallagher Basset. Gallagher Bassett handles claims for captive insurance programs, for self-insured programs, very large companies that actually form their own insurance company and then hire Gallagher Bassett to do the claims. Structured in that fashion, 90 years old. Started in 1927 and still going strong.

Kaizen: About $5.6 billion in revenue?

Tropp: We’ll be five billion in revenue this year.

Kaizen: You threw out a market capitalization number.

Tropp: $9.9 billion market cap as of 3:00 this afternoon.

Kaizen: Moving into 10 billion.

Tropp: It’s going to need a couple more points and we’ll be there.

Kaizen: A couple of interesting things about Gallagher. One is Gallagher is unique in how it handles ethics within the corporate context. Another is that you are a unique individual. You came to Gallagher through the insurance business but you also have the formal ethics background. Tell me your insurance story. How did you get your start in the business?

Tropp: After college I taught school for four years and then went to work for an insurance brokerage firm for seven years.

Kaizen: In Illinois?

Tropp: Yes, Chicago.

Kaizen: You went to Loras?

Tropp: I went to Loras College in Dubuque, Iowa, as an undergraduate.

Kaizen: What was your major?

Tropp: Speech and Drama.

Kaizen: Ah, a natural fit.

Tropp: Yes. Works perfectly for the insurance business.

Kaizen: You can be a sales guy.

Tropp: Right. After teaching, I went to work for an insurance brokerage firm in Evanston, Illinois. I worked there for about seven years and then left in 1981 to start my own company from zero.

Kaizen: You were in your 30s?

Tropp: Thirty-five, I guess. I was at that company for 26 years and built it up. In 2007, I sold the company to  Gallagher, but five years before that, in 2002, I went back to school at the University of Chicago.

Kaizen: This is the ethics side.

Tropp: Yeah. I worked on a Masters of Religious Ethics from the Divinity School. I think it’s important studying ethics that you study theologians as well as philosophers because for so many years, in the Middle Ages, there were no philosophers. There were only theologians writing about thinking and values. I spent five years, part-time, at Chicago. I finished that degree in June of 2007 and, at that same time, sold the company to Gallagher. Pat Gallagher, our CEO and Chairman of the Board, and I had been friends for many years. We grew up in the business together. He knew the work I was doing, the writing and the speaking I was doing on corporate ethics, the work I was doing at the university.

He did not have an ethics officer. He had a legal officer and that’s where ethics was handled. He and I really experimented with this. We created the job that I have, but we didn’t know what it was going to do. I started out by just going around visiting some offices and talking to people about ethics and listening.

Kaizen: This is around 2007?

Tropp: Yes. By 2008 we were pretty much in full swing. What happened was when I would sit people in a room and ask them about ethics and are we an ethical company and then talk a little bit about what that means. All kinds of other issues were coming up. Things that don’t fall into the area of ethics.

Problems about our computer system: “You know what? The computer system, they didn’t give us good training on it so we don’t know how to use it,” or, “We don’t have good vacation,” or, “Our vacation packages are confusing. They’re difficult to deal with,” or, “My supervisor is incredibly rude to the other employees and that shouldn’t be.” These things were surfacing in these meetings in the offices. I would go back and sit down with Pat and say, “Here’s what’s going on out there.” It was intriguing because communication in a big company—vertical communication—is not good. There are roadblocks.

Here was an opportunity for someone representing the CEO to come and sit in the office and have people talk to me. The thing that tipped it over more than anything else was, at about that same time, we began a small backroom service operation in India to do backroom processing for various different parts of the company. That had just gotten started, and I began hearing in probably 50 to 70% of the offices people say to me, “I think it’s unethical that you’re sending jobs to India.” That’s not what we were doing. We weren’t sending jobs to India. We were enhancing the work that folks could do to raise the level of what they were doing, taking that processing stuff off their hands. As I would come back and share that with Pat, he would say, “Really? Unethical?” Yeah. What that told us was that it wasn’t being communicated properly.

Kaizen: It’s an optics issue.

Tropp: Yeah. All of a sudden, the things I was hearing in the field went way beyond what we originally thought they would.

Kaizen: May I interrupt you? In 2007 and 2008, you’re feeling your way around what the position might be, and what you’re doing is a lot of listening.  You don’t have a top-down agenda for how you’re going to do ethics. You’re exploring the territory, seeing what kinds of issues there are.

Tropp: Yeah.

Kaizen: That’s interesting.

Tropp: The job began to form itself. The first thing we realized was that people would talk to me when I went out. There are several reasons why they would. Number one, I’m not a hired person to talk to. Number two, I was coming from the Chairman’s office, so people figured this is a guy you better talk to because it’s getting straight to the top of the company. We determined this is valuable to have someone out there, and not just some person buried in the HR Department. Someone from the Chairman’s Office coming in and saying to people, “I want to hear what we’re doing well but I also want to hear what we’re doing poorly.” An interesting thing began to happen. The company was half the size of what it is now.

Word spreads quickly in companies no matter how big they are. I would go to an office in the early years and people would say, “Well, this is a real problem for us. Is there any way we can get this fixed?” I would say, “Let me look into it.” Two weeks later, it was fixed.

Kaizen: You’re an expediter.

Tropp: That’s right. Now, I’m scheduled to go to an office in Oklahoma City. Someone in Oklahoma City talks to someone in Boston who will say, “He’s coming out? Hey, when he was here, he fixed that problem for us in two weeks.” “Really?” Now, all of a sudden, credibility begins to build. Then you get a little bit of a backlash from certain managers who say, “Wait a minute. He’s coming in here and stirring up dust.”

Kaizen: A turf issue.

Tropp: Yes. As a matter of fact, I am coming in to disturb dust. If you don’t like it, call Pat. It began to build on its own.

The next thing we did was to try to see what other companies were doing. I started looking out to see what’s out there, resources that are out there, and began to find different organizations that were studying and publishing in the subject of corporate ethics. Your own Kaizen here, good example—Boston College for Corporate Citizenship, big resource—the Ethisphere Institute.

As I found these other outside organizations and began listening to them and reading their material, it did became obvious that we could do more in the business community than we were doing to reinforce what we were doing in-house.

Kaizen: The position was evolving. Initially you said that a lot of the stuff wasn’t necessarily ethics-related. It was computer system training, the vacation package, and so forth. The position you ended up creating was partly business ethics but also sounds a bit like cultural builder or troubleshooter.

Tropp: It’s an ombudsman. One of the questions on the Ethisphere survey that we complete every year, asks is: Do you have a corporate ombudsman? They always answer that “No, but yes” because we don’t use that title but it’s basically what I do.

I’ll give an example of this still moving forward from 10 years ago. We have an 800 number that employees can call and make anonymous ethics reports. We got about half-a-dozen calls a year in the beginning. After 10 years of doing this, I get somewhere between 20 to 30 contacts from people around the world every week.

Kaizen: Email?

Tropp: Emails from somebody. Emails that say, “Tom, you were here six months ago. You said if we have an issue, we could contact you. Here’s something I’m dealing with and I don’t think it’s fair the way I’m being treated.” When I’m in offices, I always tell people, “Anybody can contact me at anytime on any subject, and there’d be no political fallout. If you want it to be confidential, it will remain confidential.”

Maybe half of the contacts I am asked to please keep this confidential. Don’t tell anybody I talked to you but this particular manager is being rude to his employees. That’s something that then we need to look into. Someone says, “I have a very specific complaint about this, and it’s me and I don’t think I’m being treated fairly.” That’s something that I will go back to the person and say, “May I carry this further for you with your name on it?” They’ll typically say yeah, and then we get involved. If there’s something illegal going on, I bring in the compliance people. If it’s not an illegal thing, I may talk to the HR people in that area and try to orchestrate a solution to the thing.

Kaizen: Maybe a natural question here would be to say why is it not then just already handled through, say, the legal department if it’s a compliance issue or through the HR department if it’s a culture issue and so forth? They also get stuff directly?

Tropp: Very often it comes to me because the people don’t know who else to go to, and they know me because they’ve met me in their office and I’ve invited them to contact me. They will contact me and say, “This is a problem we’re having.” I’ll go back to them and say, “Look that particular issue, we need to talk to HR about this. May I have permission to bring this to them?” I will then bring it to the HR people and then step out.

If it’s a legal issue, we’ve had several examples just recently of something going on in the field that an employee or an outside third party will contact me. I had a contact from a competitive broker not long ago who said to me, “You’re the Chief Ethics Officer for Gallagher and your sales people here are selling a product that I invented, and they’re infringing on my rights there. They shouldn’t be doing that because it’s my product.” That’s clearly a legal issue so, in that particular case, I brought in our general council or head council, but I also then brought in the legal counsel from the country where that was taking place and monitored it as they dealt with it. When it was resolved, I stepped out of it obviously. It’s almost like being an air traffic controller in many ways, bringing concerns and sending them to the right department.

Kaizen: Routing and re-routing and so forth. It sounds like after a couple of years of exploring and lots of conversations and travel and meeting with people, you then formalized what is your current position. Explain to me the organizational structure at Gallagher and why you decided to have your position be positioned where it is.

Tropp: Well, one of the problems that I perceived in dealing with these outside organizations and how they handle ethics is the confusion between thinking that ethics and compliance are the same thing, and they’re not. They’re different. Compliance tells us what we must to. Ethics tells us what we should do. Very often, every complaint that would come in would go to the legal department in companies. It’s not that way in our company now, but I’m sure at some point in time it was because they assume that’s how it should be. If there is nothing illegal going on, the legal department should step back and say, “That’s okay. There’s nothing illegal about that.”

Kaizen: Discretion.

Tropp: Yes, or refer it over to the HR Department. The most popular thing and most consistent thing that becomes the crossover is a difficult manager—a manager who’s being difficult with people, rude to employees, insulting to employees, or those types of things. Is that a sexual harassment claim, in which case goes to legal department? Or is this someone who just needs some counseling as to how to be a better manager? That’s HR.

All those things in these other companies were going to the legal department and maybe to HR. No one exclusively looked at the concept of culture and values and the atmosphere at our company. What is our reputation in the market place? What do our competitors think about us? Do they respect us? That’s ethics. That’s a cultural thing. It’s a different layer.

Kaizen: We distinguish ethics from compliance. Compliance is just the law. It’s the things that you have to do. Ethics is broader and you are forming it into culture. Is there a distinction between ethics and culture?

Tropp: I think your culture demonstrates your ethics.

Kaizen: Culture is the embodiment of your ethics and your values?

Tropp: I think so. The type of company you are comes from your ethical stance. It’s demonstrated to people when they see your culture. What’s the feel when you walk into an office? What’s the feel when you work there? Is it a place that has a positive feel or a negative feel?

Kaizen: Companies make a commitment or not to follow the law, but you also want to create your own particular company with your goals, your values, and your kind of corporate culture. You mentioned, I think, a 25-point list for the Gallagher Way that identifies the key values of Gallagher. What is unique about that?

Tropp: You know, a lot of companies have these statements of values. If you look on their website, they all have statements of value. The thing that’s unique about the Gallagher Way, first of all, is that it’s specific. There are 25 items or tenets in the Gallagher Way, and it’s not all based on what we would call ethical issues. Number one in the Gallagher Way is we are a sales and marketing company. That’s what we do for a living. Number two is respect for each other.

Kaizen: Purpose or mission statement.

Tropp: Yeah. One of the tenets talks about giving absolute, great value to our customer. The customer is important, the person we must serve with excellence. They’re business goals and cultural goals. Empathy for the other person is not a weakness. That’s a cultural thing. That’s got nothing to do with the correct way to do business but certainly enhances business. The unique thing about the Gallagher Way is, first of all, it’s been around since 1984. Not one word has changed in the document since it was written … I take that back. One word was changed.

It was written in 1984. Somewhere in 1989 or ’90, Bob Gallagher, who was the son of one of the founders of the company, had a very smart executive assistant who walked into his office one day and said, “Bob, number seven in the Gallagher Way says ‘Empathy for the other guy is not a weakness.’ It’s better to say person.” That word changed. That was the only one, but it’s been around in its exact form since 1984.

The second thing is that it’s so broad. It covers many different things, not just what we would call basic values. Then, another other thing is it so successfully permeates the company. It hangs around every office everywhere in the world and, literally, every one of our 25,000 employees knows about it and could probably quote four or five of them. We use it all the time. We actually use it to run the company so that makes it a little different.

Kaizen: Of the 25, if you set aside the ones that are about business purpose and general mission statement. In your judgment, what would be, say, the top three ethical values?

Tropp: I think, number two, which talks about respecting each other and respecting each other’s capability is critically important.

Kaizen: “Each other” means what?

Tropp: Internally.

Kaizen: Internal organization.

Tropp: Yeah. Then, the one that I just mentioned, empathy for the other person is not a weakness, is critically important. Our people know that they can worry about each other. They know that we will reinforce that. If an employee has an issue, personal issue, other people will worry about that person and will care for that person, and we will reinforce that and support it. There’s another one that says ‘Never ask someone to do something you wouldn’t do yourself.’ I think it’s a simple statement but it says a great deal.

Kaizen: An integrity point.

Tropp: Yeah. If you read it, first of all, the grammar isn’t perfect. It was written by a guy who was a relatively simple man, who was pouring out his heart about the company that he and his brother created taking over from their father. When you read it, it reads that way. It’s just real. You know a journalist didn’t write it. There are grammar errors. The spelling is all correct, although my understanding is that initially there were a lot of misspelled words that they fixed.

Kaizen: Sure. An issue that sometimes comes up is corporate ethics statements can be ineffective. Even if they are not just meant to be pretty words on a web page but taken seriously, there’s a challenge of actually making a working donkey but making it a part of the culture. How, at Gallagher, do you take the words on a page and make it heart of the fabric of the culture?

Tropp: Well, it’s interesting. I like to say we use it to run the company, and we do. People chuckle at that. Sometimes they’ll say, “Well, it’s a cute document to hang on the wall, but you can’t run a five-billion dollar, publicly-traded, global corporation on that basis.” They’re wrong. We do. Actually, there’s not a decision that’s made by our executive team in that company unless that document is lying on the table. When people are told to execute a project, they are told to not violate that document.

I will get emails from employees who say, “Listen, number such and such in the Gallagher Way says this. I’m here to tell you we’re not doing that in this office.” Whoa! That’s a big deal. We jump about that. When people are arguing their position on something, if there’s a disagreement on whether to go this way or that way, you will hear them quoting the Gallagher Way.

They’ll say, “You can’t do that because number 17 says … ”

Kaizen: Also, when you have the arguments, the respect principle will then say we will argue respectfully.

Tropp: Yeah.

Kaizen: That will solve some problems. The empathy issue, that’s hard. Do you have examples of how you would, from a top-down document, get out to thousands of people around the world that empathy is a value and this is what it means?

Tropp: You have to work at that. You can’t just assume people are going to understand. First of all, top management has to buy into it, and there’s a selection process for top management. Most of the people that are running the company we promote from within the company. We generally don’t go outside to bring someone in unless it’s a very unique skill that we need, an attorney or IT people, that type of thing. But general management is usually promoted from within, so we know these people.

They get promoted because they buy into the culture and that field, but it’s very difficult. Empathy is a classic example of that. Just because we are all in the senior management and just because we all are conscious of being empathetic, doesn’t mean other people will understand it so you must reinforce it and demonstrate it. For example, we’re not always able to find this out but when we know that an employee’s spouse has passed away, the way we find out typically is they will make a claim under the Life Insurance with the Human Resource Department. HR Department is instructed whenever you hear of an employee who loses an immediate family member, a child or a spouse or whatever, to notify me that that has happened. Typically, I’ll send a letter or an email to the employee saying, “So sorry to hear about this. What can we do for you?” Pat Gallagher, our Chairman and CEO, sends a letter to the person, and in some cases, will call. We don’t always hear about this until sometimes three or four weeks later or a month later. If it’s later we’ll call. You don’t want to call the day after the lady’s husband died but a month later, we’ll call and say, “Hey, this is Tom Tropp calling from the headquarters. I know your husband passed away last month. How are you doing? Is there anything we can do for you? Is everything processing through okay?” The word spreads quickly when that happens. Now people get the idea. These people really care about me. It takes work to find this stuff out, but when an employee has a serious illness, same thing.

Kaizen: You mentioned to me one special case.

Tropp: Yeah. We had an employee, a 35-year old single mom with two children who was diagnosed with breast cancer. The treatment was going to be every other Monday. She would have to go in for chemotherapy and radiation. She would recover on Tuesday and then be back at work Wednesday, Thursday, and Friday. She could not afford to go on disability and had to get her full salary, so she sat down with our branch manager and said, “Is there anything we can do here?”

The branch manager didn’t know what to do so he made another appointment with her. In the meanwhile, he called up to the home office and talked to the HR people. The response he got was, “Why are you calling me with this? Can’t you work this out yourself there to help her?” He said, “Well, I don’t know how to do that.” The answer was, “Treat her whatever way you would treat her if she were your sister.” They worked it out. He sat down with her and worked out an arrangement.

Kaizen: Like she’s your sister.

Tropp: Yes. Assume she’s like your sister. They worked out an arrangement. She was going to work Saturdays to keep herself on schedule and a little shorter lunch hour and catch up. They agreed.

Kaizen: She was very proactive.

Tropp: Yeah, she was looking for solution. It turned out, during first week she was out she was out on Monday, and on Tuesday she stayed home recovered. Wednesday morning she came in, sat down at her desk, and all of her work was done. Her inbox was empty. All of her suspense list was finished. There was just one pink rose lying across her desk. Her fellow employees had come in early, stayed late, skipped lunch, and gotten all of her work done. That went on for six months. Every other week when she did that there was a pink rose, and no one would tell her who did it. It was obviously the whole office who’ was pitching in and helping her. That’s empathy, and it was supported and celebrated by us.

Kaizen: That story spreads around the culture.

Tropp: Absolutely.

Kaizen: That’s how you build a culture.

Tropp: Yes. When I tell that story in a branch office, almost without exception, the people will say, “Oh, that happened here. So and so had this happen to him. Yeah, we all just pitched in and helped.” When a top executive says, “That’s good. I’m glad you did that.” That means it’s okay to do it and you can keep doing it. If someday, someone wants to do that and a branch manager says, “Well, you can’t do that.” “Wait a minute! They did it here. They did it there. Besides, Tom Tropp said you could do that.” It just reinforces it.

Kaizen: Gallagher has grown significantly in the last ten years. You mentioned a lot of mergers and acquisitions. When you’re doing your due diligence ahead of time, you said you only acquire firms that you think you can change or make fit your sense of ethics and culture? How does that go?

Tropp: We’re very, very cautious. We very cautiously guard our culture. We walk away from five or six deals every month and not because the numbers aren’t good. We don’t even look at them if the numbers are good but the culture doesn’t fit. When our folks in the due diligence teams go in there, they pick up anything at all that they feel would be a problem.

Kaizen: What would be a problem?

Tropp: Well, the attitude in the office, a surly manager, employees who are obviously unhappy and complaining about things, certainly any sort of favoritism being shown to certain people and others. You don’t always see this in the due diligence, but if it’s prevalent you will pick it up in the due diligence. When that happens they put a hold on things, and they will ask a senior person in the region or beyond to come in and spend time in the office. They’ll go to dinner with the manager or with the owners, and spend a little time in the office, and, if they feel like this is not working, they’ll walk away.

Now, the other thing that happens is reputation in the field. The merger people, they bring us a new merger, say this is the one that we’re interested in and they are interested in talking to us. One of the first things we do is research that firm. It’s not hard to do. You call a few of the insurance companies and ask questions about that particular brokerage firm. You start to hear things about their reputation. If their reputation is negative, we’ll say no, we’re not interested.

If we do walk away from one after we’ve gotten into due diligence, which we’ve done, we tell them why we’re walking away. We say, “Look, we’re looking at your employee absentee. Your employee turnover is huge. You got 35% turnover in your staff. We see that as a potential problem.” There may be three or four things like that, say, “Because of these things, we really are not interested in proceeding at this point. However, if you can fix those, come on back to us and then we’ll see if we can talk about it.” From time to time, we get people to come back to us. They’ll say, “Hey, we talked to you guys three years ago. We had this, this, and this problem. We think we fixed them.”

Kaizen: It’s cultural consulting for them.

Tropp: Exactly, or you see things like their sales expense is way high off the charts. Well, what’s that mean? That means they’re probably taking people to the beach or to play golf, and they’re spending money on things that we don’t value. If we see those signals, we’re going to walk away or at least going to question them.

Kaizen: The way you do ethics at Gallagher, with your position reporting directly to CEO and the Chairman of the Board and no one reports to you and the autonomy that you have, to what extent is that unique to you as an individual, Tom Tropp, and to Pat Gallagher, who’s the Chairman? If, for example, you were to try to convince other organizations that they should do things this way, what things would you say? It’s not just your personal values that works for you, that this really is a valuable way to do ethics in any business.

Tropp: We’re in business to make a profit, and all companies, unless you’re a 501(c)(3), are in business to make a profit. That’s critically important. We believe that our margin has to be at a very specific point. If our margin gets too low our stock price goes down, and we could be gobbled up by somebody. If our margin gets too high, if we’re making too much profit, it means we’re squeezing somewhere in area that we shouldn’t be squeezing. The right margin for us to be at is somewhere between 25 to 28 points. That’s about where we should be. If, all of a sudden, we see ourselves at 35 to 40 points, something’s going on that isn’t right.

We’re in business to make a profit within that range. We believe that part of the reason that our stock price is as high as it is relative to earnings is the fact that we have a unique culture. Our culture didn’t start because of the arrangement we have with ethics but it is certainly reinforced, and it’s recognized outside the company as being a company of high integrity. The system we have clearly enhances that.

The fact that we’ve got someone who is completely independent of all departments and all divisions and yet reports to the highest authority of the company and has the ability to draw resources from any of those sources, puts us in a whole different position for transparency, for looking for issues and solving issues. It’s just a very effective way to do it. As I speak and interact with other companies on this, more and more companies are starting to say, “Well, that seems to make sense.” We know that because in many cases they’ve called and said, “Hey, Tom. I know you’re doing this. We’d like to, at least, look into setting up this way. Could you give us some time for that?”

Kaizen: Nice. I’ve got two more questions, one for you personally. Out of that long, successful business career, you mentioned you sold your business 10 years ago. Presumably you could have retired and done whatever it is that you like to do, but you are now, 10 years later, still working hard and circumnavigating the globe a couple of times a year. I know you enjoy the travel right up to a certain point and you enjoy the insurance business, but what’s motivating you to work so hard on this?

Tropp: I don’t look at it as work in the sense that I’m not building a career. I’m not building a business. I’m doing something that I enjoy doing, and I love doing it, and I believe I’m making a contribution. When I sold the company to Gallagher 10 years ago, it I hadn’t moved into the role that I’m doing working for Pat, I probably would have stayed a couple of years and then would have retired and done something else. My thinking initially was that, after I finished the Masters in ’07, I was going to then finish the couple of years with Gallagher and then go back to Chicago and do my Ph.D. and teach. That would’ve been fine; I would’ve enjoyed that. I would’ve loved it, but this is so rewarding and so satisfying.

I just came back from Australia as I mentioned to you, and I received an email. I get a lot of emails after I’ve been at offices, but this was one was just so sweet. This is from a manager in an office. “Hi, Tom. Again, it was great to spend quality time with you last week. I would like to thank you for leaving such a positive vibe in the office. Post your meeting, I sat down with each section of the business to seek feedback on your visit and to encourage any concerns to be raised. I got 100% amazing feedback on how normal and approachable and natural you are in the way you interacted and spoke with the team, et cetera.” I get these all the time.

Once in a while, I forward it to Pat Gallagher and say, “Hey, man, look at this. It was fun.” He actually saves them in a file and, every once in a while at a board meeting, he’ll bring a couple of these in. He’ll say, “Alright, let me just read you a few … ” Because the board says, “You spend a lot of money on this project. Are you really getting results?” He says, “Let me read you a few of these emails.” They’re just very, very sweet emails. That was a manager of an office. Someone sitting in a work station talking to insurance companies all day will say, “I’ve never felt as good about our company as I do now after you were here.” When you get that type of feedback on a regular basis, that’s a nice stroke. It makes it worthwhile.

Kaizen: Last question. We focus a lot here on students, undergraduate and graduate as well. Soon they’ll be starting out in their business career. You’ve just spoken about what has made your work in the last 10 years meaningful or worthwhile to you. To younger people who are just starting out, who don’t have a sense for what’s going to happen over the next 30, 40, 50 years for them but they want their business career to be significant, what advice would you give to them on how to approach that?

Tropp: My advice is completely out of date with what people are doing now, but I’m still absolutely convinced that it’s the right way to approach a career. I believe you should find a company that you … First of all, you should do something that you love if you possibly can. Then, people say, “Well, I don’t know. I love to play golf, but I’m not going to make it in the PGA.” That’s fine.

I give young people a couple pieces of advice because we have big intern program, and these kids ask me these questions. I say, “The first thing I want you to do is I want you to take a little notebook and a pen, and I want you to put it on the nightstand next to your bed. Every morning for ten days when you wake up think, if I could have any job at all today, what would it be—any job at all? I don’t care what the education requirement is. It could be a brain surgeon or a space pilot or whatever it is. If you could have any job at all what would it be? When you’ve made that decision, get up and write it down in the notebook. Close the notebook. Forget about it. Do that for ten days in a row. Then, go back and read the notebook and think about every day. Was there any consistency? Find something that, even if you don’t have a passion for it, you can develop a passion for it.”

When I was in that position, I had Vietnam to worry about. I didn’t have any option but to go get a job. Then, pick a company whose values you can trust. And how do you find that out? Well, two ways. The first thing you do is research the company before you go to the interview. If you’ve gotten an interview with a company, get on the internet and research that company. Look at Glassdoor. Find out what the employees are saying. Now, that’s going to be all be negative, so you got to be careful with that, but find out what the things are.

Look on their website. Read their corporate governance page. Do they talk about ethics? Do they talk about values? Do they say people are important to us? Then, in the interview, ask more questions than they do. Ask them about those things say, “I read on your website that people are your most important asset. What does that mean?” Listen to their answer and then when you pick a good company, and you will know this quickly after you go to work for them, and you have confidence in them, work for them for the rest of your life. Don’t move. Stay there. Grow in the company.

This moving from company to company, it changes your approach to your job. It makes you more important than the job because what you’re saying is it doesn’t matter what I built up here. I could go over there and I could move a step up. I’m there for a couple of years, and then I can move over to this company. Be consistent. Stay with a good company and work for it. We are retiring people today from our company. We retired not long ago a woman who had worked for us for 40 years as a receptionist.

Now, receptionists don’t make a lot of money, right? She worked for us for over 40 years as a receptionist. I won’t tell you the city she was in, but it was in the Midwest. She retired with well over a million dollars in savings between her 401(k) and company stock. She got into our stock-buying program through the years, she retired with over a million dollars, and she had never made more than $40,000 a year. She was long-term and consistent. She’s the sweetest lady. About twice a year I get a postcard from this lady. Nobody sends postcards anymore. She does.

She’s 70-some years old. I used to get postcards from her. She’s a widow, her sister’s also a widow, and they’re traveling the world. I get a postcard saying, “Dear Mr. Tropp,” she won’t call me Tom. “Dear Mr. Tropp, I’m having a wonderful time in Paris.” Then, the second sentence is always the same. “Still have a whole bunch of money left.” She signs it.

Kaizen: Charming.

Tropp: Yeah. Have long-term loyalty to a company if it’s good company. That’s the way to go.

Kaizen: That fits your values.

Tropp: Yeah. I really believe that.

Kaizen: Alright, thanks.

Tropp: Thank you. This was fun.

This interview was conducted for Kaizen by Stephen Hicks.

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