Kellogg World Alumni Magazine Summer 2006Kellogg School of Management
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  Frederick Waddell '79
   

Alumni Profile: Frederick Waddell '79

Northern Trust president reflects on three decades of success

By Romi Herron

More than 30 years ago, Frederick Waddell '79 began what he calls a "love affair." Fresh out of undergraduate school, and new to Chicago, he was interviewed by The Northern Trust Co., offering his compelling desire to learn about the banking industry.

"They really took a risk on me and gave me a chance. I wasn't even from Chicago," says Waddell, a graduate of The Managers' Program, who in February was named president and COO of The Northern Trust. As of December, the holding company had assets under custody of $2.9 trillion and 84 offices in the United States, as well as 11 international locations.

Now, helping to steer the organization's overseas growth, Waddell says continuity remains paramount as the company branches out further in India, China and Europe.

Currently, about 90 employees are established in India, and the organization hopes to increase that number to 200 over the next couple years.

"Our asset servicing business is growing rapidly [in India] so we need an operations center of excellence to support our client growth there," Waddell says. "Operations in India provide us with additional duality of process and support. We have major operations centers in Chicago, London and Dublin and want another leg to our operations structure in India so that we are prepared to back one another up."

Opportunity also presents itself in China's investment market, which is markedly different, Waddell says.

"China and India are both growing rapidly, but because India is a democracy, it is much more open and transparent," says the Kellogg alum. "China is really still learning how to operate in the modern economic system, whereas India has been in that system and operating successfully for much longer. The comfort level of investing in India is higher than with China but the opportunities in China cannot be ignored."

To that end, The Northern Trust has also opened an office in Beijing, guided by the organization's central philosophy to keep its service offerings consistent.

"Our focus is one of the things that differentiates us from other institutions," says Waddell. "We are not an investment banking firm, a retail credit card firm or an insurance provider. We are really focused on the needs of high net worth and institutional clients and that does differentiate us from others who may go in and out of business areas due to leadership personalities, market or climate."  Such continuity offers reliable value for clients, says Waddell, who also notes the dedication of his colleagues, many of whom have become his closest friends. Central throughout the bank is an open style of leadership, he says, and those at the helm are committed to maintaining the founding principles established in the early years of the then family operated corporation.

Preceding Waddell as president was William Osborn '73, today chairman and CEO of The Northern Trust. "Rick is an exceptional leader and a highly regarded member of our executive management team," says Osborn. "As a 30-year Northern Trust veteran, he has extensive experience successfully managing and growing our business."

Drawing on those insights, Waddell emphasizes the strategic value of The Northern Trust's independent status. "We believe we can and will remain independent if we continue to focus on the things we do well, which have translated into a stock price that has performed very well. Independence is a byproduct of our strategy, focus and execution. That model is advantageous because it provides clients with consistency, knowledge of what we are about." Independence also provides some assurance that the organization will continue providing its strong, traditional offerings.

While Waddell's roles at The Northern Trust, which have included executive vice president and other management positions have enriched his career, a well-rounded life remains his greatest pride, he says.

"I have balance between my professional career and my family life. I have enjoyed a wonderful career with many interesting and challenging assignments, but along the way I have also been able to be with my wife and our two sons and enjoy their growth," says Waddell, who also enjoys his roles as a board member of The Kohl Children's Museum and the Art Institute of Chicago.

"For the Kohl Children's Museum, we built a brand-new museum from the ground up," says Waddell. "We raised the money, acquired the site and designed the building. There aren't too many opportunities to do that these days."

©2002 Kellogg School of Management, Northwestern University