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Diversity and Inclusion:
An Interview with Vincent J. Trosino, Sr., President of State Farm Insurance

State Farm insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm's 16,000 agents and 75,000 employees serve nearly 73 million auto, fire and health policies in the U.S. and Canada. State Farm also offers financial-services products through State Farm Bank. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked number 21 on the Fortune 500 list of largest companies.

THE BLACK COLLEGIAN (TBC): Give our readers a brief overview of State Farm Insurance Companies.

Vincent J. Tosino, Jr.Vincent J. Trosino, Jr.: We're a mutual company, which means our policyholders own us. We were started in 1922 by George J. Mecherle, a successful farmer who became an equally successful insurance salesman. He was working for another company when he told his employer that he didn't think the rates or business practices of the company suited the needs of farmers. He thought rural farmers should pay less for insurance because they drove less and had fewer losses than people living in more densely populated cities. But when he suggested a different way to sell insurance, his employer laughed and said, "If you think you've got such a good idea, why don't you start your own company?"

TBC: What is the difference between a mutual company and a stock company?  

Trosino: As a mutual company we're accountable to our customers rather than stockholders. We aren't tied to short-term quarterly results to measure our success. We can take a long-term view of the actions we take, instead of gauging their immediate impact on stock prices.

TBC: Are there benefits to working for a mutual company? 

Trosino: We build our business through internal growth, not acquisitions. Therefore, we don't need access to the capital market, a motivation that has driven some other mutuals to become stock companies. Also, we have thoughtfully examined how our operation can best serve our customers and remain sensitive to our employees' needs. Overall, I'd say we have a better sense of stability working for us because of our mutual status.

TBC: Tell us about your career at State Farm. What was your first job? What route did you take to the top?

Trosino: I graduated from Villanova with a degree in Psychology in 1962. State Farm hired me as a management development trainee in the former Pennsylvania Regional Office and put me into a 53-week training program. It wasn't a great starting salary, but I felt good about the company. The people were warm and friendly and helpful.

I worked my way up through Human Resources and several other insurance operations positions in different regions of the country and at corporate, and then served as regional vice president of our Northeastern Regional Office from 1981 to 1986. In that role, I was responsible for State Farm operations in New York, New Jersey and New England. After that, I joined what we call today the Chairman's Council, and was named President in 1998.

There are many paths to leadership – not all of them are straight or clearly visible from the beginning. It wasn't always easy, and I had to take some risks. In fact, I took a position in California once to get experience back in the insurance side of the business. It was a demotion. At the time, it wasn't the easiest move to explain to my wife Pat. But it was the right move for us in the long run.

TBC: Why is State Farm a good place for Black collegians to start their careers?

Trosino: When starting a career at State Farm, associates quickly realize there are many paths for success. After mastering an initial learning curve, our associates find there are several career options within the company. We value learning agility, business acumen, and associates who step outside of their comfort level to better serve our evolving customer needs.

State Farm encourages associates to continue learning. Everyone is given the opportunity to take classes and develop himself or herself professionally. We are a learning organization.

TBC: What is your vision for diversity at State Farm?

Trosino: Our commitment to diversity starts at the top with our Chairman & CEO, Edward B. Rust, Jr. The whole State Farm management team is committed to an inclusive environment where all associates are treated with respect and dignity and differences are valued. We are committed to having a workforce and an agency force that can fully serve the needs of our increasingly diverse customer population. At State Farm, diversity is the collective strength of experiences, skills, talents, perspectives and cultures that each associate brings to State Farm. It's how we create a dynamic business environment to serve our customers. That is the business imperative.

Diversity is a business issue ... it is a human issue ... it is a societal issue. We expect all people who work for us to be respected for who they are, their skills, their abilities and contributions. Our expectation is for all people to be treated in a fair and balanced way. 

At State Farm, our diversity initiatives are part of our vision. The vision for diversity and inclusion relates to two categories: Business Logic and Internal Reputation.

  • Business logic means that we want our associates to gain an understanding and appreciation of how diversity and inclusion can positively impact our business goals. In other words, how they impact the bottom line.

  • Internal reputation means that we want to focus on how associates perceive State Farm. Our goal is to have associates view State Farm as an inclusive and innovative company.

As all State Farm associates work toward our vision, a framework helps focus our efforts toward common goals and strategies for achieving our vision.

TBC: Tell us about some of the diversity initiatives at State Farm.

Trosino: Some of our initiatives related to diversity include the following:

  • Increasing associate awareness of the impact diversity has on achieving our business goals. This awareness includes associates understanding, anticipating and being prepared to respond to customer needs in evolving markets.

  • Employee driven affinity/networking groups. These recognized groups facilitate mentoring, professional development and assist the Company in various ways.

  • Partnering with community organizations to build safer, better-educated and more prosperous neighborhoods.

  • Supplier Diversity programs with the inclusion of minority-owned, women-owned and person(s) with a disability-owned businesses. We establish business relationships that help strengthen local economies, and provide jobs in communities where many of our customers and agents are located.

TBC: Why is diversity important to State Farm?

Trosino: Diversity is a business imperative. All of us bring different sets of experiences, skills, talents, perspectives, and cultures to State Farm. It's how we create a dynamic business environment to serve our customers.

Different perspectives increase creativity. A diverse workforce can offer different perspectives, ideas and solutions, or devise new products and services that may generate new business opportunities.

Diversity is a strategic imperative that supports our business objectives. A diverse workforce is better positioned to meet the needs of our evolving customer base. In addition, a diverse, inclusive, and fully engaged workforce is a key to increasing productivity and improving customer service.

TBC: How has State Farm benefited from diversity?

Trosino: Incorporating diversity and inclusion into our culture helps us continue to achieve business goals. We encourage the diverse thoughts of associates to create business solutions by bringing insights from a variety of perspectives, cultures, and experiences into the organization.

At State Farm, we do more than acknowledge differences; we embrace them because they make us a stronger organization. They help us understand the marketplace, and how we can do a better job of serving our customers. We are committed to an inclusive environment where all associates are treated with respect and dignity, and differences are valued.

TBC: What prompted you to be so strongly committed to diversity?

Trosino:  I've always known, and felt, that it was the right thing to do. My family was second-generation Italian and Polish immigrants. I was taught from a very young age that America was great because people had opportunities to succeed if they worked hard. My mother worked very hard as a homemaker. But, I learned the value of hard work in the external world from my father who had a very strong work ethic. He always knew I could do better and encouraged me in my education. I was the first of my 26 cousins to graduate from a four-year college because of that.

Pres Edwards, Jr., Vincent J. Trosino, Sr., Preston J. Edwards, Sr., and Willie Brown

I've always been aware that as individuals we each have unique skills, experiences, and insights to offer. And many of those are influenced by our culture – your background and family. Grandma Trosino always said, "Honor your family" and "Tell the truth and tell it quickly."  What I learned from her has shaped my ability to lead. If I learned these important lessons from my unique experiences, then many other people, with different backgrounds, were also learning valuable lessons they could contribute to their work.

Many years ago, I was one of the first employees at State Farm to recruit at historically Black colleges and universities. It wasn't easy to attract African Americans to Central Illinois in 1967. But, the world was changing and it just made sense to me.

The biggest factor in our future success will not be our products or our strategy; it's our employees. Yes, strategy and products are important. The biggest factor is making sure the talent and performance of our people are aligned with the interests of the Company and engaged in the strategic-thinking process. If people don't feel included or encouraged to contribute their ideas, we miss opportunities. If people are not engaged and they are just coming into work, making it through the day, and leaving without feeling like they are part of the enterprise – that's not good for business, nor is it good for the employee.

TBC: Who are some of the top African-American executives at State Farm and what positions do they hold?

Trosino: The highest-ranking African-American employees at State Farm are:

Willie Brown
Sr. Vice President
Chairman's Council
Corporate Headquarters
Willie Brown

Louise Perrin

Louise Perrin
Agency Vice President
Heartland Zone

Duane Farrington
Operations Vice President
Florida Zone

Duane Farrington

Kaye Lindsey

Kaye Lindsey
Operations Vice President
Great Lakes Zone

Michael Jones
Vice President
Systems, Corporate Headquarters
Michael Jones

Arlivia Gamble

Arlivia Gamble
Agency Divisional Vice President
Corporate Headquarters

Harold Gray
Sr. Vice President
Pacific Northwest Zone

Harold Gray

Greg Jones

Greg Jones
Sr. Vice President
California Zone

Clayton Adams
Public Affairs
Vice President
Community Development Corporate Headquarters

Clayton Adams

Warren Spikes
Operations Vice President California Zone

Barbara Carr
Vice President Agency
Florida Zone

Michael Matlock
Agency Vice President
Central Zone

Bill Roundtree
Vice President-Compliance
Corporate Headquarters

Michael Holmes
Vice President Operations Heartland Zone

Fred Marsh
Vice President Operations
Texas Zone

TBC: Tell us about some of the minority employees hired through THE BLACK COLLEGIAN who are succeeding today.

Trosino: While we do not track employees regarding how or why they choose State Farm, we know that our relationship with THE BLACK COLLEGIAN has been instrumental in helping us recruit and retain African Americans as employees and customers. It is a long-term relationship that we appreciate and value.

TBC: What skills and traits are required to succeed at State Farm?

Trosino: The ability to work collaboratively, take initiative, communicate well, problem solve, practice life long learning and personal integrity are some of the traits needed to succeed at State Farm.

TBC: What does the future look like for State Farm?

Trosino: Serving our customers in the future requires us to have the right people in the right jobs, at the right time. Our vision for the future is to be the customer's first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers' needs will determine our path. Our values will guide us.

TBC: What advice do you have for Black collegians beginning their senior-year job search?

Trosino: If you're starting to look for a job or internship in your senior year, you've waited too long. The key is to get experience in a professional environment early on.


 

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