Technology is changing everything about our preferences, what we want and how we live our lives. And it is altering almost everything we know about business. It’s fair to say that IT is now embedded in all business decisions. Or at least it should be.

For IT executives, these are exciting times but also very demanding times. Consider this to get your mind thinking: The “I” in CIO is about innovation, integration, imagination, and intelligence, not just information. A thought recently shared by @ValaAfshar and I think it hits the nail on the head!

If you believe this line of thinking, you’ll realize that CIOs are under a great deal of pressure. Historically, the role of CIO was thought to be complicated, narrow and specific, one that is very focused on being a technical expert. You could relate it to the role of an accountant, a lawyer. But that’s no longer the case.

Now traditional business models are quickly becoming obsolete and technology is often the catalyst. Technology is far more than the thing that enables the business strategy – it is part of the strategy. Today, a great CIO needs to be as in tune with the business, its customers and the overall strategy as he or she is in the latest trends in technology.

This works both ways. A CEO who does not fully appreciate and understand the impact of technology on any business is missing the point of what is remarkably exciting and fascinating about the world we live in today. Quite simply, if a business is not innovating, it will most certainly be left behind – something I’ve blogged about before.

So I believe that it takes two. Yes, it’s a cliché, but there is no simpler truth for what makes the CEO and CIO relationship work – or other areas of the business such as Marketing and Human Resources. And that is precisely why it works for us at ING DIRECT.

Because we ask questions like, how can technology help our business grow? Does this innovation make sense for us? Does it represent our values and corporate culture? Does it meet the needs of our customers?

So our view is different. It is far less about the technology and more about the value proposition for our customers. I don’t think Charaka (our CIO) and I ever have conversations about specific technologies – even with a natural interest in technology, he might lose me after a few too many acronyms. Our chats always reflect the need to provide value for our customers and employees by making things simpler for them.

Successful CIOs uncover how CEOs think. They are bilingual in the languages of technology and business. They weed out the latest technology trends to find the ones that deliver on the business strategy, and meet the expectation of the corporate culture and its customers.

And ultimately they win the trust and support of their CEO and everyone in the business.

 What would you give up for $250? That’s the question we asked over 1500 Canadians. The answers are quite interesting and reminded me of what I love about this country.

You know, Canada has been a nation of Savers for a long time, but in recent years we seemed to have lost our way. It’s clear that spending is at an all time high by the soaring levels of debt we are seeing. But Canadians DO want to save! 81% actually do, and said they would be willing to give up some things in exchange for a larger savings account.

52% of those surveyed don’t save regularly. Of course, some have big financial responsibilities, but are we being realistic about what we feel are the things that are ‘hard to live without’. Maybe the $6 fancy special coffee indulgence – which I enjoy from time to time by the way – or the hairdresser appointments or the sporting events we absolutely have to partake in.

There is clearly plenty we can give up on. And it’s encouraging that Canadians seem to be open to sacrificing some indulgences to save an additional – and realistic – $250 a month. With simple planning, budgeting and by making small changes to day-to-day spending habits, Canadians have a great chance to build their savings in a simple systematic way.

But we also need reminders, and at times, a little motivation to move along the road to financial wellbeing. A lot has changed since ING DIRECT began advocating on behalf of consumers 16 years ago, giving Canadians choice and arming them with the information they need to take care of their hard earned money.

And we continue to do so. We want Canadians to get back to the simple act of saving so they can see their nest egg grow. This is why we created the ING DIRECT Savings Sale. Taking advantage of these savings opportunities and setting up an automatic savings program are very easy ways to help grow hard-earned money in a simple, thoughtful and steady way.

So it’s time for Canadians to take action. If you are part of the 64% of Canadians who would sacrifice three months of entertainment (eating out, going to the movies, watching sporting events) to save $250, or maybe you are one of the 53% who would give up one month of cell phone use to see your savings grow, then now is the time to realize the potential of saving $250 (or more) a month!

I’ve used this quote by David Chilton before but it is worth repeating. “The reference group you often need to be most wary of is not your affluent friends, or even your wealthier work colleagues; it’s you, yourself.” So get out of your own way, and get to saving! After all, it’s a very Canadian thing to do.

This sums up the atmosphere at our most recent rally at ING DIRECT. It was the 4^th annual rally we’ve organized since I’ve been the CEO. We call them our “Orange Rallies” for a reason. I suppose we could call them the ING DIRECT annual meeting, but that’s what everyone else does and that wouldn’t be indicative of our culture.

We pride ourselves on being a challenger brand and it is our orange culture that we cherish, value and defend. We are a young team, 16 years old in fact and we operate quite differently from the over 150 year old financial institutions we compete against. And we are committed to maintaining that difference.

So once a year we rally together our entire team of over 1000 employees. (In reality, we need to do it in a few sessions because we are available to our customers 24/7.) We huddle, we talk, and we get excited. We celebrate our past successes, I share our vision and strategy, we help each other absorb the message and we reset for the year. I love the idea of everyone rallying together to help us win.

Over the years we held different types of rallies, some with the help of external speakers like @rontite and @preetbanerjee, but this year felt much more personal. With the sale of ING DIRECT, the 2013 Orange Rally belonged to our orange team, to celebrate our successes, align ourselves and provide clarity on the strategy for our very exciting future. I personally needed to reaffirm the importance of teamwork and collaboration for ING DIRECT.

The fact is if we don’t collaborate we won’t be in business. We have to remain nimble, flexible and entrepreneurial. We have a collective fund of intelligence within the team, you probably do too, so what are leaders doing to ensure access to that fund? Phil Jackson said it really well: “The strength of the team is each individual member. The strength of each member is the team.”

Leaders need to create a collaborative environment within the business. We all felt it at this year’s rally when each member took to the drums lead by a dynamic team called Drum Café. It was quite powerful and lots of fun! But I’m aware that a highly energetic few hours once a year is not going to sustain the magic day in and day out.

I am completely certain that a CEO can lead, and can set the tone but this is not nearly enough. To win, we need leaders all over the business interacting, clarifying, inspiring, making decisions – leading! Leaders at all levels need to take the initiative to make our vision happen.

I think that more business leaders than ever understand what Max McKeown wrote, “Strategy is not a solo sport – even if you’re the CEO.”  To which I would add, especially if you’re the CEO!

All the best to you and your team!

Peter.

At ING DIRECT, our mission is to coach and educate Canadians so they can become smarter investors. The current dialogue in financial media regarding mutual fund fees is something we’re very pleased about, as it aligns well with our mission. Canadians pay some of the highest mutual fund fees in the world, and we feel there’s a great need for more transparency and awareness on this topic. For some background, you may want to review this 2011 study in which Canada received an “F” grade for mutual fund fees and expenses, coming in last place out of the 22 countries under the microscope.

So with that said, the question becomes, what can we do about it?  The first step is to make sure we actually understand the fees we’re paying for our investments. This can be a bit confusing, but let’s break it down. All mutual funds have a Management Expense Ratio (MER) which is basically the cost of managing the fund. The MER includes the management fees paid to the fund company, the trailer fees paid to the advisor or dealer, and the operational expenses associated with managing the fund. It’s important to note that the MER is built into the price and return of the fund, whether our investment increases or decreases in value. Since this fee is embedded, it’s easy to overlook. It’s kind of like gasoline taxes – they’re built into what we pay at the pump, so many people don’t realize how much of the price of gas is made up of taxes. Some funds also have front-end, back-end, or deferred sales charges, on top of the MER. And as this recent Globe and Mail article puts it, the mutual fund industry is taking an unfair slice of your investments.

So why is this important? When it comes to investing, fees are a key factor towards our portfolio’s long-term performance and can really eat into our returns. The bottom line is the less we pay, the better off we’ll be. To put this in perspective, over a 25 year time period, high fees can consume upwards of 80% of our initial investment. And more importantly, this can translate into those fees directly pushing back our retirement date by two to three years.

The good news is that the fees we pay for our investment portfolio are one of the few things that we can actually control. By contrast, interest rates, inflation rates, and how the markets perform are more like a weather forecast – we can try our best to predict what’s going to happen, but ultimately it is not within our control.

We are not saying that all fees are bad. Rather, we believe it’s time for Canadians to understand the importance of mutual fund fees, and we feel we can play a valuable role. By coaching Canadians to make educated decisions, we can help investors understand the value they’re receiving (or not receiving) for the mutual fund fees they pay. As a whole, the industry needs greater accountability to align fees with value provided, and more transparency around disclosure about the impact of mutual fund fees on long-term performance.

Not sure how much you’re paying in mutual funds fees? Take action. Call your bank or investment advisor and ask them to specify all of the fees you’re paying for your mutual fund investments. Then ask yourself, “am I getting fantastic value for what I’m paying?”

In summary, we like where this dialogue is going, and we’re more than happy to play our part.

There’s no question that we all dream and envision how life will be like when we’re older. You know, less hectic, maybe a cottage up North, perhaps a home down in Florida, less or no work, and travels to plan.

But what exactly are we doing to ensure this happens? Not much when two-thirds of Canadians don’t have an RSP or have made no contributions to their retirement savings in 2012!

Here’s the irony: The same two-thirds are in fact worried about their financial wellbeing during retirement. When I see this it makes me think of the provocative view of Thomas Edison who said, “Vision without execution is hallucination.”

What’s more, Canadians have admitted that neglecting retirement savings has taken a toll on their emotional health. 26% of Canadians who did not make RSP contributions in 2012 described themselves as feeling concerned, stressed, anxious, hopeless or overwhelmed about it.

On the flip side, 29% of those who actually contributed to their RSPs in 2012 described themselves as feeling calm, while 20% feel safe and another 20% describe feeling confident.

People want to feel calm, safe and confident! How do you want to feel?

I came across this article in the Globe and Mail recently that describes the connection between our retirement savings plans and our psychology. It suggests that saving using RSPs is most beneficial for our long-term goals because of their impact on our financial behaviour and habits. As a student of psychology, I couldn’t agree more.

We know that Canadians are eager to retire early but very few have the financial habits to support their early retirement dreams. But it’s not all bad news. There are many Canadians who are actively paying off debt and saving for other goals, like paying for their child’s education. All of which are of course important priorities, but often they are done at the expense of saving for retirement.

It’s important to strike a financial balance between the short term (a vacation to Hawaii in the spring), medium term (renovating your kitchen or saving for your child’s university education) and long term (your retirement) so that contributions to an RSP are not overlooked. I have said this on numerous occasions – saving or planning for retirement doesn’t have to be complicated and it doesn’t have to be big, but it does have to start!

There are several financial institutions, family, friends or even online tools that can provide great information to help you and your family think about money and how to plan your financial future. But the first step toward change, toward positive results or execution of any goal, is always awareness.

So arm yourself with the basic information, set goals and make a commitment to see your plans through. And consider the words of Tony Robbins when he said, “Setting goals is the first step in turning the invisible into the visible.”

Whenever you are ready to slow down, be sure that the vision you have set for your life has been given the best chances to be realized. It is your life and you deserve to enjoy it. It’s not easy but saving in a steady simple way can lead to the happiness, calmness and confidence you deserve.

I was surprised and pleased by the response because within a very short time many of our employees mustered up the courage to respond! I have spent my career proving that leaders at the top can be as real and accessible as anyone – but despite town halls, face-to-face meetings, regular communication, and no physical walls around me, some teammates still find it difficult to voice their concerns or even call me Peter! Good morning Mr. Aceto, the odd few still say.

I have always said that one fantastic benefit of social media is that through it, you have access to peoples’ dinner table conversations – an access that reveals how your customers and prospective customers view your business. We are privy to consumer insights that generate great ideas and in turn improve our products and processes.

It is with that same spirit that I sent out my right to bitch message to the team. No matter how open our culture may be, the water cooler conversations still take place. No matter how hard we try, there are still things about our business that are bothersome and irritate our employees. Why would I want this to continue? Annoyance turns into frustration and the next thing you know, your employees are seriously unhappy and guess who feels it? Your customers! So why not address the issues? Why not get the irritants out of the way? And why not as leaders, provide the forum for people to vent?

I was reminded by this little exercise that straightforward and authentic communication is most effective. Good or bad, I like hearing it straight, and I believe we all naturally do. This is the type of communication that builds trust, forms communities and ultimately breaks down fear. Once the first handful of employees chimed in, more built the courage to share.  Other team members started helping each other with solutions, and senior executives became aware of issues not previously discussed before and committed to fixing them. Like a snowball building momentum, size and speed. A little push from me is all it took.

Action items were devised and accountabilities taken to remedy items identified – we even brought back hashbrowns for our Friday morning Big Breakfast in the cafeteria! Who knew they were that popular?

We may not have solved major business issues by having this bitch session, but with my support, employees know that it is safe to be heard, and that dialogue is encouraged and feedback is actionable. And my senior team is reminded of the power that resides in having real conversations, honesty and open debate.

Whether it is Pandora’s box or a big can of worms you’re opening, the point is the cans exist, the conversations take place and there’s always room for improvement. I strongly encourage leaders to take the initiative, be an active listener and provide safety for your employees’ honesty.

I had some success early in life when it came to team sports but nothing to write home about. I always loved the game of hockey but I was really a basketball player. It was in university that I began to play hockey and continue to play a fair amount with my family, friends and teammates at ING DIRECT. I also coach both of my sons’ hockey teams.

We have hundreds of employees who regularly participate in various sporting teams at ING DIRECT. It’s a wonderful opportunity to bring people together from across the business who share a common love, including me. There is no better investment of my time than when I truly connect with my colleagues. And it happens in various ways. But in particular, the weekly hockey game with the team documented through social media has certainly provided valuable insights and a lot of fun.

I find that these activities break down barriers and remove, for the most part, the preconceived notions of “the CEO.” With all the open communication I push for at the office, I am still met with the occasional “Mr. Aceto” or “Sir.” I have spent an entire career proving that I am just as real as the next guy/gal but in an office, even without physical walls around me, the barriers persist. But on the ice, or in a locker room, it is an entirely different story. I would say that of those courageous enough to join our team games, anything preconceived vanishes fairly quickly.

I believe what we learn in team sports has a direct impact on business performance. There is a fluidity on the ice or the court that may not always translate as well in the office. If someone tries something for the benefit of the team but finds themselves out of position a teammate quickly identifies this and helps out. They adjust. It’s beautiful to see when it happens, now imagine when it happens in the business context!

Sports provide a training ground to practice and cultivate leadership abilities – to play with integrity, teach and learn from teammates and create a culture that people want to be a part of. It is an opportunity to inspire others to a common goal, motivate others to perform beyond their limiting beliefs and fuel passion for something we believe in. To me this ought to be identical to a day at the office.

Coaching my sons’ hockey teams, much like playing team sports, has also brought a great deal of insight into my work. “A good coach will make his players see what they can be rather than what they are,” said Ara Parseghian. The same applies for business leaders. We have the responsibility of transforming those around us in life and in business by the actions we take.

I love sports, both because of its personal benefits and its amazing applicability to business performance. The lessons learned and fun we have when on the ice together have certainly made ING DIRECT a better place to work, better for our customers and has a lot to do with our success!

I am thinking about the entire construct of the role business plays in society – whether the goal is to maximize profits for shareholders or to maximize the interests of all stakeholders. Can business be good for employees, customers, community, the environment and deliver returns to shareholders? I strongly believe that business can significantly contribute to the lifeline that keeps communities and entrepreneurs alive and thriving. But is that the view of the majority? I don’t think so.

We’ve all witnessed the terrific contributions that big business has made in creating wealth for economies, individuals and governments. Our lives have surely advanced with the development of new technologies with significant innovation in all areas of life – consumer products, healthcare, education, etc. And we’ve certainly made a lot of shareholders happy.

But what about the communities in which we live? You know, the local small business, the entrepreneur with a great idea struggling to get his or her business funded and off the ground.

I’m not sure that we’ve reached a balance between the important necessity to make money and the direct effect any business can have on the local communities, and the lives of employees and customers. I am certain that my view is not popular. The scale is generously tipping towards the traditional standard practise prioritizing the shareholder and profit.

It’s time to ask this very important question: what is the role of business in society and in the communities in which they operate? This is not a CSR or PR matter. It is an issue that must take up space in the business model – a model that is being revisited by many. I am aware that we are not there yet and perhaps I’m being overly optimistic that we can make this happen soon. But I don’t doubt that you would agree, a shift from profit-first thinking is needed.

It’s almost impossible to avoid getting caught-up in the fast paced, day-to-day, month-to-month, quarter-to-quarter cadence of our financial markets and commerce in general. Even many incentive structures make it difficult for businesses and their leaders to shift their focus from profit only to a more balanced view. But I’ve always seen it this way: we take from the community, so we must give back to the community. We ask employees, customers and the community at large to contribute to our success, so they are as important a group of stakeholders as our shareholders are.

We take an active part of the ecology of the communities where we live and work through our nation-wide cafés and Network Orange. I recently shared this story of a typical day at our Toronto café. Perhaps coffee, healthy living, live music or supporting entrepreneurs are not the most popular tie-in to a banking brand for shareholders, but it has undoubtedly brought a great deal of value to our business, to our brand and to the many people who live and work near these locations.

When Howard Schultz founded Starbucks, it was to recreate what he had experienced in Europe, a great cup of coffee in a café that served as a third place for people go to, besides work and home. But when he left, strategies shifted from a store-level community focus to the Starbuck’s share price. Ironically stock prices fell, forcing Schultz to return and realign the business.

Nevertheless, we can’t be naïve to how business works. It’s not a charity, and without profit, a business can’t begin to attempt to positively impact society. But we also know that big organizations won’t go poor by shifting from profit-driven objectives to investing in the communities in which they operate. Quite the contrary, much can be gained by adapting a well-balanced approach of profit and social impact into the business model, as we’ve certainly seen at ING DIRECT.

If you rethink your business model, which you will need to do in time, it is absolutely possible that employees, customers, community and shareholders can be happy at the same time. In fact this is the stronger and long term sustainable strategy that future leaders must be determined to fight for. It’s time to redefine old standards and drive forward ideas and business models that are truly sustainable and good for all.

The same applies in business. A leader’s success strongly depends on his or her ability to earn and maintain the trust of employees.

So how do you build trust? You invest time in your team. You show who you really are. You get out of your office!

I spend, what some may consider, an inordinate amount of time personally connecting with team members. I believe in the concept of ROR (Return On Relationships). Enabling dialogue, being open and real are what I’ve learned make the most difference in engagement.

The benefits of this concept are evident in social media and through our internal communications channels, but what I want to stress here is the value of old-fashioned in-person interactions. You know, when you step out from behind your desk, you go see for yourself, and interact with the people who work with you.

Business strategy is one thing. But at the end of the day it is people who drive business forward – human beings who each have their own personal “why” for how they give their effort and energy on a daily basis. And they want to be acknowledged, heard, and valued. It’s important for leaders to do that, and to genuinely care. It is that inclusiveness that forms trust and generates immeasurable commitment towards the collective “why” of a business.

Leaders, CEOs, Presidents, we are not typically known to share lunches in the office cafeteria, sit in with call centre associates, or play weekly hockey games with the team. The general expectation is that we are far removed in our corner offices and not easily accessible – It’s time to shift from a distant leadership to a more personal and engaged leadership.

I can tell you from personal experience that the more genuine interest that leaders show their teams, the stronger the culture becomes. The impact is powerful and difficult to quantify.

When you let your guard down, understand what makes individuals tick, ask about their families, truly care about their wellbeing – that is what makes leaders relatable, leaves great impressions and builds great team environments. The kind of environments that foster trust and personal connections and allow for discussion, debate and even arguments at times. And the environments where leaders and their teams feel comfortable to show emotion, and reveal who they truly are.

I had a mentor who once said to me “you can’t be a leader if you’re not fallible. You need to be authentic. No one will follow you if you’re too perfect.”

Connecting with people at all levels of the business in person, is fundamental. There’s plenty of strength in being real. It’s a powerful tool. And it starts at the top. I urge leaders – leave your desks and get to know your teams. And if you have a chance to show your personality, do it.

Engagement is an automatic result. Once the momentum is at your back it is unstoppable!

So how should business leaders strike the balance?

We live in a social business era. Expectations are that we operate transparent business models. And I certainly support those expectations.

I’ve seen first hand how the financial services industry has changed. When ING DIRECT introduced direct online banking to Canadians, it was a radical idea. Trusting a bank without physical branches with something as important as your hard earned money was far-reaching.

Fast forward 16 years, direct banking is the new normal. But even more exciting is that Canadians are opening up about their finances like never before. Years ago, people would rather discuss sex and drugs with their kids and friends instead of talk about money and how to manage it. Today however, there are thousands of blogs being written and shared about people’s personal finances. How they manage debt, try to save, drive fees away from their lives and invest for their futures… How they have learned, the mistakes they made and how they were overcome. It really is an amazing and important development.

There’s something liberating about sharing your struggles. As soon as you do, you realize you are not alone. You become part of a community. Clearly this is not new. But it is amplified in the technology driven social era we live in. An era where leaders need to prove the obvious – that they are human beings.

For the financial industry, this is especially important. Jargon, complexity, ivory towers and mahogany desks are expected, right? Not so much. Not anymore. The pressure is on for disclosure and openness and for sharing the wealth with customers and community.

This is on my mind often: do our employees know who I am as a person? Customers, followers, subscribers, listeners – are they getting to know the real me? How I lead ING DIRECT? What I believe in? What makes me happy, unhappy, frustrated, elated? Do they have a good perspective of my personality by what I share?

I am socially inclined which has helped me be referred to as the “social CEO”. Sharing stories, talking “normal stuff” and connecting with people all come naturally. So using social media was a no brainer for me and our organization. Of  course there are many examples of very successful leaders who are quiet, reserved, even introverted. Those who are more comfortable one on one as opposed to a larger group.

Which begs the question: is social media for everyone? Maybe not. But I believe that the success of future leaders and their businesses may depend on their willingness to reveal who they are, who they really are, with authenticity and sincerity. Being open, sharing more about ourselves, showing a relatable side are all extremely valuable and can be real competitive advantages.

Of course leaders have insights into confidential information that require a level of discretion and at times even legal and compliance issues curtail a leader’s ability to share. I recently found myself pondering this very dilemma when ING Group began the process of selling ING DIRECT Canada. Full disclosure was simply not allowable. But for me, it was important to share what I possibly could as soon as I was able.

I like what Simon Sinek recently shared at the Art of Management conference in Toronto: “It is better to disappoint people with the truth, than appease them with a lie.” With this you have a chance of building trust that will serve the entire team well.

Leaders want to be seen as confident, strong and smart. We think that this is what people want from us. However, at times we feel confused, sad, frustrated and even doubtful. Hey, leaders are human too!

So what happens then? Instead of trying to put your best face forward, I’d consider putting your real face forward. Redefine vulnerability as strength. Be thoughtful how you do it and you may appreciate how those around you grow to feel about you as a leader.