IOWA 500: Q&A with Dan Houston, Principal Financial Group

The list includes leaders representing 14 categories, which we believe reflect the scope of business sectors in our state. Dan Houston's Q&A introduced the Financial and Insurance category.

Dan Houston has served as Principal Financial Group’s CEO for nine years and has been the company’s executive chair of the board for the past eight. Mr. Houston leads the 145-year-old company and its 20,000 employees from Des Moines. According to him, Principal helps 68 million customers plan, protect, invest, and retire.

CBJ: Tell us a bit about your career and what has led you to the role you are in today.

Mr. Houston: It’s a privilege to be able to say I built my career at Principal. When I graduated from Iowa State University in 1984, I had the goal to work for an organization that was making a difference in people’s lives, which led me to my first role at Principal. Over the next four decades, I was given the opportunity to gain experience in numerous roles throughout Principal’s U.S. retirement business, then as chief operating officer and chairman, president, and CEO in 2015.  And throughout my career, Principal has continued to evolve to meet the changing expectations of our customers, the markets, and shareholders.

Each of these roles allowed me to set strategy, inspire belief, and rally teams to deliver on ambitious goals throughout our business.

The leadership team has led Principal through significant growth and transformation, focusing the company’s strategy on the highest value opportunities and growth drivers to serve its customers and shareholders around the world.

But when I look back on my career, what I am most proud of is our commitment as an organization to ethics, integrity, and best-in-class solutions that bring greater financial access to millions of people around the world.

CBJ: What has been your most significant memory or moment as a leader so far?

Mr. Houston: There have been many significant memories, but one of the most significant is fulfilling my obligation as a CEO to develop a successor. I have worked with Deanna Strable, who became Principal’s president and chief executive officer in January, for many years. She has been a trusted partner and co-architect of our long-term growth strategy. Most recently Deanna served as our CFO. I have the utmost confidence in her leadership and business acumen and I’m confident she’s the right person at the right time to lead the company forward.

CBJ: What are some of your personal and professional goals for the next 10 years?

Mr. Houston: For the foreseeable future, I will continue serving as the executive chair of the board at Principal. We will also kick off Principal Charity Classic work, in which I will remain deeply involved.

I recently joined the board of directors for ADT Inc. and Arch Capital Group Ltd. I plan to spend a lot of time serving these boards with dedication and offering my experience to these great organizations.

My participation in key regional projects, such as ICON, Capital Crossroads, WDM Chamber of Commerce, and Legacy Woods, will continue to be a significant part of my agenda.

CBJ: What are some hopes you have for the business community of Iowa as a whole?

Mr. Houston: Des Moines and other vibrant metro communities in Iowa are increasingly becoming attractive destinations for entrepreneurs, young professionals, and new business founders. My hope is that the business community will continue to preserve and enhance the qualities that make our cities appealing to these groups. In a state where the median age is steadily increasing, it’s important to focus resources on items that matter to these constituencies. We need to ensure Iowa keeps growing and evolving—and staying relevant in the business world is one way to do that.

Greater Des Moines is the community I know best, and I’ve seen firsthand how our focus on accelerators and incubators is helping motivated individuals turn their passion into profitable businesses. Our region boasts significant strengths that differentiate us and support their success, including talent from local colleges and universities, workforce stability, a critical mass of companies, an affordable cost of living, and a robust economy. I am also proud of the efforts we have made to increase access and economic opportunities for local small businesses. 

CBJ: What drives you as a business leader?

Mr. Houston: First, the knowledge that what we do makes a meaningful difference in people’s lives—helping them create financial security for themselves and their loved ones. It’s the reason I chose to work at Principal 40 years ago—the belief in what we did and the people whose lives I would be able to impact along the way. I started in sales, which allowed me to see the customer impact up close. Customer meetings remain one of my favorite things to do—let’s just say they’re never boring, and we learn so much from those interactions that can help us improve.

Second, the idea of stewardship. All of us at Principal owe a debt of gratitude to those who came before us and built the company to where it is now, and we are responsible to those who will come after us—making sound decisions and executing to set the business up for future success. This is true for all employees, and I definitely feel an additional pressure. As the great Billie Jean King says, “pressure is a privilege!” I feel fortunate to be in this position.

CBJ: Outside of work, what do you do in your free time?

Mr. Houston: Of course, spending time with family and friends. We have three grandchildren who are a big priority and source of joy right now. When time provides, I enjoy long walks and woodworking—it’s something I look forward to doing more of when I eventually retire.