In this podcast, Heller talks about Vanguard’s initiatives to use Web 2.0 tools to empower both employees and to work more effectively with customers.  He also talks about the challenge of dealing with compliance issues around social media, and the process for fielding new ideas to drive innovation.

The Vanguard Group, one of the largest mutual funds companies in the country, has managed to live up to its name for the past 35 years. Today, Vanguard manages about $1.1 trillion in assets with roughly the same amount of employees it has had for the past decade. Vanguard also differs greatly from its publicly traded competitors, such as Fidelity Investments. Vanguard’s customers – both retail and institutional -- literally own the company. Eighty percent of Vanguard’s business takes place through its various Web sites. The rest of the business occurs either via the telephone or mail. By leveraging its unique structure and technology prowess, Vanguard has some of the lowest management fees of any mutual fund company.  Paul Heller, Vanguard’s CIO, says that technology enables the company to focus on its core mission – preserving and creating wealth for customers.

In 2007, Vanguard received an annual InformationWeek 500 award for being the third best and most innovative company in the country. At that time, the company unveiled its $10 million portal which gives employees better tools to facilitate communications with each other. Much has happened in the past two years. Heller says that the company has expanded its use of Web 2.0 tools both for employees and customers. He says, “For years, we have been hosting e-meetings with our institutional customers. We are now doing this on the retail side where we will invite 25,000 people to a meeting on a specific topic. They can see each others’ questions. “

Bio
Paul Heller is managing director and CIO, for Vanguard Group’s IT division. His team leads all aspects of the company’s use of technology to provide high quality, cost-effective services to the company’s shareholders. Heller has been with Vanguard since 1984. His experience over the prior two decades includes overseeing the core retail business, the institutional defined contribution business, the systems integration division of IT, and investment-only business. Before joining Vanguard, Heller worked for Mellon Bank in Philadelphia. He has a B.S. in engineering and economics from Tufts University and is a graduate of Harvard Business School's Advanced Management Program.

Resources
ResourcesCIO Values – Paul Heller - InformationWeek
How Multimedia Tools Make Vanguard a Better Company - CIO
At the Vanguard - Enterpriseleadership.org Podcast with Paul Heller – 2007

Production Credits
Elizabeth Ferrarini, Executive Producer
Tom Parish, Host and Audio Producer
Audio Editing by Doug Marcis

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