Innovation with Purpose: Melanie Foley Of Liberty Mutual Insurance On The World’s Most Successful Purpose-Driven Business Models

An Interview With Russ McLeod

We understand that our industry plays a key role in helping individuals, businesses and communities become more resilient. We promise protection from the unexpected, delivered with care, which has elevated importance in the face of increasing uncertainty by one of the biggest socio-economic shifts of our time — climate change.

In today’s business landscape, companies that integrate purpose into their core strategy are gaining significant traction. These businesses go beyond profit to create positive social and environmental impact, proving that doing good and doing well can go hand in hand. What are the key elements of these successful purpose-driven business models, and what can other companies learn from them? I had the pleasure of interviewing Melanie Foley.

Melanie Foley is Executive Vice President and Chief Purpose and Diversity, Equity & Inclusion (DEI) Officer at Liberty Mutual Insurance, the fifth-largest global property and casualty insurer. She leads Liberty Mutual’s talent, brand and communications, community investments, sustainability, and DEI functions to enable a high-performing and inclusive culture that results in employee pride and partner trust. Since joining Liberty Mutual in 1996, she has held several leadership positions and has been responsible for leading global organizational transformations and driving talent and enterprise strategies that enable business success and enhance employee experiences.

Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you share a bit about your background and what has led you to this moment in your career?

I’m a proud Boston, MA native who was raised by a single mother. My early upbringing really shaped my formative years as I watched her overcome significant challenges, all while persevering and putting herself through nursing school. It inspired my own educational path from earning a B.S. in Marketing from Boston College to going on to receive an MBA from Bentley University.

I joined Liberty Mutual in1996 through a referral from a friend and was drawn to the company’s purpose of being there for people when they need it most. I realized what the company’s Identity and Values were, and it became evident that my purpose in life of helping people feel secure was extremely aligned to the identity and values of Liberty Mutual and the opportunities for me to contribute to society through my work.

Can you please describe some of your successes to date?

Throughout my tenure, I have held a number of roles across Marketing, Distribution, Human Resources and Brand/Communications — all of which have prepared me for my current role. Today, I’m serving as the company’s first Chief Purpose Officer as well as the Chief Diversity, Equity and Inclusion Officer, where I am committed to deeply embedding the company’s purpose and values into our culture and strategy, and creating an environment where everyone can bring their full selves to work and contribute their best for our policyholders and communities.

Nearly 90 percent of employees today agree that people care about each other here at Liberty. That has translated into a Great Place to Work certification for many years as well as being named a Civic 50 — one of the 50 most community-minded companies in the United States — for the fourth consecutive year. That reflects the culture that we’ve created at Liberty — and for that, I am so proud.

Can you share a pivotal moment in your career that inspired you to integrate a sense of purpose into your professional journey?

A pivotal moment for me was becoming the Chief Human Resource Officer (CHRO) in 2012. It provided an opportunity for me to truly understand what employees value by listening to them and understanding what they are looking for in an employer, which in turn helps us attract and retain the best talent. That role paved the way for our robust employee listening strategy — a multi-faced, mixed method design that aligns with best-in-class principles allowing us to measure what matters most to employees while also measuring what matters to the organization. That has shaped where we are today — understanding the full employee experience and more easily integrating their feedback into organizational decision making — while keeping the entire organization aligned to our shared purpose.

Can you share a story of a mentor or a leader who inspired you in your journey?

I’ve been fortunate to work for two amazing CEOs — David Long and Tim Sweeney — over the last two decades. Both have inspired me to lead with humility, grace and empathy. Their drive to do the right thing, always, by prioritizing integrity, profit and then growth, has been inspiring.

Can you describe your company’s mission? What societal problems are you solving? What customer problems are you solving?

Liberty Mutual’s purpose is to help people and organizations embrace today and confidently pursue tomorrow. We’re in the business of risk in service of our policyholder. We provide that protection from risk and allow our policyholders to navigate risks that would otherwise be insurmountable. They pay us a premium today with a promise that we’ll be there when they need us when bad things happen.

For example, when you get in your car, or buy a house, or start a business, you’re protected. We’re helping policyholders recover from loss, empowering businesses to mitigate risk and lending capital to address some of society’s biggest challenges, all to provide confidence in the face of the world’s uncertainties.

Do you have a big goal for your organization and its impact on the planet?

We understand that our industry plays a key role in helping individuals, businesses and communities become more resilient. We promise protection from the unexpected, delivered with care, which has elevated importance in the face of increasing uncertainty by one of the biggest socio-economic shifts of our time — climate change.

The insurance industry has a unique vantage point on the impacts of climate change — with extreme weather impacting our policyholders around the world — that often positions us at the forefront of response efforts.

At Liberty Mutual, we see sustainability as a massive, once-in-a-generation opportunity. Guided by our Identity and Values, our sustainability ambition is to advance resilience and inclusive growth.

We are leveraging the latest science and research to advance our understanding of climate-related risk to support our policyholders as they transition to a lower carbon economy, while at the same time enhancing resilience for communities, so they are prepared before disasters strike.

How would you describe your business model? How is purpose engrained in the business model?

As one of the largest global property and casualty insurers, we conduct business through two business units which offer a wide range of insurance products, services and solutions. Each of these offerings helps us to deliver on our purpose — and we’ve taken steps to ensure every employee across our organization understands the role they play in delivering on this. We also have an investments team that manages our portfolio of assets.

We’re able to grow, retain, and compound our capital in the interest of our policyholders over time. Through the capital we generate and deploy and the products and services we provide, we can invest in new product capabilities that our policyholders will need over the long term as they face climate change, energy transition, cyber risk, etc.

At the center of this work is our people, which is why we’re not only dedicated to cultivating an equitable and inclusive workplace where every employee feels a sense of belonging, but we have also been intentional in how we’re articulating our purpose so all of our employees across the company can see the impact we are collectively making. Our purpose matters now more than ever, and through the capital we generate and the products and services we provide, we are helping our policyholders recover from devastating losses — and proactively taking steps to prevent disasters from happening.

Can you share an example of an innovative solution your company developed that aligns with your core purpose?

We’re living our purpose through our products, services and the investments we make. As the nature of risk continues to evolve, the most genuine demonstration of our purpose is reflected in our key competency as a global risk expert. We assist people in navigating disruptions, deploying our risk expertise to help them recover from devastating losses — and to proactively take steps to prevent disaster from occurring in the future.

This includes developing innovative tools like WeatherReady, which helps policyholders boost the resiliency of their homes to the impacts of climate change. WeatherReady’s custom-planning function provides science-backed advice, recommends solutions and offers tools to track progress. Since launching, WeatherReady has quickly expanded to include advice on wildfires, atypical cold weather for Southern states and other weather events.

With the design of your business model, what has allowed your organization to achieve growth and deliver on impact?

With a business model focused on embracing opportunities and effectively managing evolving risks, we’ve continued to create enduring value for our policyholders, employees, and communities since our founding more than 100 years ago.

We often say that profit without purpose is hollow, and purpose without profit is unsustainable. Our leadership philosophy is integrity, profit, and growth, in that order. We firmly believe that doing the right thing and upholding our integrity is paramount. It is the foundation upon which we build financial strength, enabling us to keep our promises to our policyholders. Profitability is essential for sustaining our ability to support our policyholders effectively. And through growth, we extend our reach to more consumers, expanding our impact while remaining committed to our purpose. So, in short, sustaining our business and delivering on our impact starts with ensuring every business decision we make is in service of advancing our purpose.

What do you envision for the future of purpose-driven businesses, and how do you see your company contributing to this vision?

We stand at the forefront of a rapidly changing world and the nature of risk is ever evolving. Our purpose matters now more than ever. As we aim to deliver on our purpose, we will continue to empower individuals and businesses to feel secure to embrace today and confidently pursue tomorrow.

This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!

About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress. Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.

Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.