Annette Mosman (APG Group): ‘Diverse Leadership Is Not Just Nice to Have, It Is Essential’

Can you explain why you place so much importance on diversity?
‘It is fun to work in a diverse environment, and scientific research repeatedly shows that diversity leads to better results. At APG, including in the board of directors, we strive to promote diversity, not only in terms of gender but also other forms of diversity such as cultural background, and way of thinking. In board meetings, the wide range of perspectives and ideas that diversity brings can be an eye-opener. Sometimes, this might feel inefficient, especially when you are under pressure to come to a decision and everyone wants to have their say. However, I learned that the team is stronger this way: when you examine a problem from all angles, you ultimately come to better, more thoroughly considered decisions.’

Did you always think about diversity this way?
‘No. Achieving diversity and an inclusive work environment requires a huge investment in effort for organizations. In the early years of my career at KPMG, where we had hardly any female partners, managers, or accountants, I was used to working in a predominantly male environment and enjoyed it. I always thought that if you worked hard enough, success would follow. Back then I did not see the need for quotas. But my perspective has changed completely. In the 30 years I have been working, I noticed that women still reach the top more slowly than one would expect, given the number of highly educated women entering the workforce. I realized that this is in part due to unconscious bias: men are unconsciously inclined to appoint other men, especially men resembling themselves. That is why at APG, we offer training to all managers responsible for reviews and promotions, to become conscious of their own biases and learn how to deal with them. But it makes sense to also set quotas for women in leadership positions. Quotas act as targets, much like profit goals or CO2 emission targets, forcing you to constructive and systematic thinking about how to achieve your goals.
At the same time, I do realize that many forms of diversity, such as cultural background, are difficult to measure and hard to capture in quotas. Legally, we cannot even record most of this data. For example, it is not allowed to collect information on religious background or sexual orientation, while these are precisely the areas where we want to make real progress, to ensure people from different backgrounds, beliefs, or orientations feel at home and valued. This requires a different approach, focused more on awareness, discussing potential barriers, and creating an inclusive corporate culture. I am giving flesh to this from my role as the chair of the diversity & inclusion board in APG, which includes four different networks: for women, cultural diversity, young professionals, and the proud community. While each group has its own focus, there is an important common thread. It is always about people who are in some way different from the dominant majority culture within the organization. This often brings feelings of uncertainty. How should you behave? What is expected of you? Do you dare to be yourself? By connecting these groups and organizing joint activities, we break down that isolation and create a common ground for dialogue.’

To what extent does increased diversity within the organization require a different leadership style?
‘Increased diversity most definitely requires different leadership. Instead of determining strategy top-down for everyone to follow, your opinions will get challenged more often. This demands genuinely listening, considering all perspectives, and weighing all input before making decisions. At the same time, it is important not to get bogged down in endless processes, because you need to be able to finalize decisions. Then, going forwards, it is important to continue paying attention to all opinions and to involve people in the decisions made.
In times of great change, such as the transition to a new pension system that we as APG are in the middle of, diverse and inclusive leadership is crucial. We are strong at effectively determining what is needed in terms of legislation, data, systems, and processes. The greater challenge, however, is the human and cultural aspect: how to get teams to work optimally, to create willingness to take on new tasks and do further training or retraining. Leaders within the organization really need diverse perspectives to identify barriers and come to solutions which will be widely supported.’

Does this apply in equal measure to the pension administration division at APG as to the asset management division?

‘We in pension administration are used to working in a complex environment with many different schemes and stakeholders in the, as we say in the Netherlands, 'polder.' It is part of the job to manage this complexity and find feasible solutions. This complexity is, however, increasing due to developments such as the transition to the new pension system.
The focus in asset management has traditionally been on achieving the highest possible returns. Socially responsible investing, primarily driven by the demands of our clients, the pension funds, and their participants, is becoming increasingly important. You can no longer manage solely based on risk, return, and costs: we also need to consider the impact of investments on people, the environment, and society.
Although the history and focus areas of pension administration and asset management differ, both face an increasing complexity in their operating environments. This requires a leadership approach that values diversity.’

What role can diverse leadership play in the transition towards the new pension system?
‘Attention to the diversity of our external stakeholders is crucial. On one hand, there is the technical and substantive side of the transition, such as designing new pension schemes, adjusting IT systems, and developing a migration plan. This mainly requires substantive expertise and a strict schedule. Equally important, however, is the human aspect: how do you explain the changes to the 4.5 million participants directly impacted by them? These people have very diverse backgrounds, ranging from cleaning personnel to police officers, from newly employed workers to retirees, each with their own situations, questions, and uncertainties about what the new system means for them personally. To address this effectively, it is essential to understand the different target groups and their worlds and to think about appropriate communication strategies.
Consider the pension gap between men and women, for instance. Women tend to accumulate lower pensions as they often work part-time or interrupt their careers for caregiving responsibilities. In the current system, these breaks are sometimes partially compensated, but in the new system, pensions will be more exposed to market fluctuation. That makes women more vulnerable to career gaps. As a pension administrator and pension fund, it is crucial to categorically address this pension gap in our communication and services. This would mean not only informing women about the financial consequences of (part-time) leave or career interruptions, but also considering possible solutions. These could include tools for simplifying voluntary contributions, information on how couples can arrange fairer pension distributions, or lobbying for compensatory mechanisms at the system level. These topics do not automatically make it onto the agenda if decision-makers all have similar profiles in terms of gender, background, and life experience, underscoring why diversity in leadership is critical and not merely a nice-to-have for a pension administrator to be able to respond optimally to the society we serve.
And more than only as pension administrator, as manager  you need to be alert to how this diverse spectrum of stakeholders and society as a whole, evolve. You’d need to assess the signals, translate them into policy, and incorporate them into your strategic considerations. No leader or board member can afford to be blind to what is happening around them. In fact, anticipating societal developments and expectations should be a top priority.’

You emphasize the importance of a well-functioning supervisory board. How do you personally select the boards you sit on, to fulfill this role as effectively as possible?
‘I see board memberships primarily as a way to stay connected with other sectors and companies and to learn from the leaders there. If I have a choice, I always look beyond the financial world I which I deal with daily. Instead, I choose supervisory board roles that align with my personal interests and motivations. I started, for instance, as board member at KWF Kankerbestrijding, as well as in the hospital sector. Also, given my passion for sports, I have held positions as a director at NOC*NSF and Ajax.
On the one hand, I have the desire to keep learning from other sectors and the leaders active there. On the other hand, I search for roles where I can genuinely add value by drawing from my experience in a highly regulated sector like financial services. This includes my knowledge of working with external regulators, leading major change projects, digital transformation, and prioritizing customer experience. Ultimately, it is about finding the right balance between what you can gain and what you can contribute. I do not explicitly consider the diversity agenda, but it naturally permeates the questions I ask and the conversations I have.’

What personally motivates you in your daily work? What energizes you? The transition to the new pension system, for example, seems like a challenge. And sometimes quite tough...
‘I feel blessed to be able to help shape a major societal reform through our role as pension administrator, and I work with a fantastic team of people driven by this goal. Of course, such a significant task comes with pressure. We regularly need to deal with new developments which threaten to disrupt our agenda. In those moments, I try to analyze the situation thoroughly. How exactly is the new law structured? What is the composition of the Senate and the House of Representatives? What is the probability of this derailing our plans? Over the years, I have learned that the higher the pressure, the calmer and more focused I become.
My biggest concern is that people become paralyzed by uncertainty and can no longer move forward. Most of our time is spent absorbing the external pressure. I see it as a core task of the board of directors to act as a kind of heat shield for the more than 3,000 employees who are busy ensuring that pensions are paid out every day or who work hard on the implementation of the new law and for us to absorb all that turbulence — whether it comes from The Hague or from social partners who suddenly want to change the rules. You protect the organization so that employees can continue to focus on execution. This also energizes me.
What I do find challenging is to keep on communicating the strategy consistently and frequently. I once heard that when you hear yourself repeating something for the tenth time, you are only just at the point where it begins to sink in with your employees. After five times, you find yourself thinking it surely must have been heard now. But, especially in times of uncertainty, it is essential to repeatedly and consistently keep delivering the message.’

Interview by Marieke van Eenennaam, Partner at Deloitte. Published in Management Scope 06 2024.