Great leaders aren't separated by vision.
Speaker AThey're separated by discipline.
Speaker AEspecially when things get messy, complex, and unclear.
Speaker ABob Hughes, president and CEO over at Deltec, learned this lesson early.
Speaker ANot in business school, but in the US Navy on nuclear submarine.
Speaker BAdmiral Rickover, who is known as the father of the US Nuclear Navy, had a say in the devil's in the details, but so is salvation.
Speaker ABob would later lead a $22 billion merger.
Speaker ATwo massive culture cultures forced together.
Speaker BDay one, alignment with the merger.
Speaker BFor me, it's not about structure.
Speaker BIt's about shared outcomes.
Speaker AMost leaders are warned, inspect too much and you destroy trust.
Speaker ABut Bob learned the opposite.
Speaker BOperational discipline scales trust.
Speaker AThen came the moment that no leader wants.
Speaker AHe led his team to respond to a massive ransomware attack.
Speaker BThat was the most challenging experience of my professional career.
Speaker BYou can't control the environment, but you can control your response.
Speaker AIn this conversation, you'll hear what happens when leaders stop avoiding the mess and learn to operate inside it.
Speaker ANo slogans, no simple playbooks, just the moments where leadership is actually forged.
Speaker AIt's time to lead the team.
Speaker AWelcome back to Lead the Team.
Speaker AI'm your host, Ben Fanning.
Speaker AAnd this conversation that you're going to hear is meant to challenge, inspire, and ripple out.
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Speaker AThis helps more bold leaders discover the show and keeps the mission alive.
Speaker AEnjoy.
Speaker ASo you helped integrate two $11 billion giants into one, and very few leaders can say they've been a part of something like that.
Speaker AMost executives fail when they get into emerging cultures just a tenth of that size.
Speaker AWhat's the one lesson you used to keep those teams within those organizations moving in the same direction on day one, when it became ukg, you know, day
Speaker Bone alignment with a merger.
Speaker BFor me, it's not about structure, it's about shared outcomes.
Speaker BAnd it's about shared outcomes really making the customer the center of the conversation.
Speaker BNot the org chart, not our own know sort of internal structures.
Speaker BAnd so and so that's really the sort of North Star, I think as you think about how to bring teams together and align around a common goal.
Speaker BCertainly data matters.
Speaker BI'm a big believer in data.
Speaker BI know lots of executives are.
Speaker BAnd you look, data informs decisions, but at the end of the day, people are who deliver outcomes.
Speaker BRight.
Speaker BAnd so as a leader, we've got to focus on the things that will enable people to deliver those outcomes in a consistent manner.
Speaker BAnd so that's things like focus, it's things like collaboration, stewarding, curiosity.
Speaker BAnd so I think that plus ensuring that you have a unified and strong culture moving forward together is paramount.
Speaker BAnd so, look, culture scales, when teams really understand why they exist, what their purpose in life is.
Speaker BAnd then I also have the systems and the processes behind the scenes to reinforce, you know, that mission.
Speaker BAnd so that's how I sort of think about it and think about the big merger effort through the lens of customer first, focused on outcomes and balancing this sort of notion of data and, you know, humanity, frankly.
Speaker ASo you got a.
Speaker AYou got a lot of people on both sides of this equation, on both these companies.
Speaker AAnd they had their own, I guess, for lack of a better word, mystique about them.
Speaker BSo.
Speaker ASo they were doing pretty well, right?
Speaker AThey were, like, recognized as having great cultures.
Speaker AAnd then you're in charge of bringing them together.
Speaker AAnd I love the idea of, hey, we gotta focus on the customer first, because if we don't have this customer, what are we even doing here?
Speaker ABut you got all these people that have worked there maybe for their whole lives, got their culture, and now they're sort of being forced to work with all these other people.
Speaker ADid you guys sit around and say, hey, this is the kind of culture we want to create, or did you sort of put them on a compare and contrast and say, well, Chronos had this kind of culture.
Speaker AYou know, the other organization has this culture.
Speaker AWe're going to make a super culture.
Speaker AOr what was the.
Speaker ALike, take us behind the scenes on how you made those decisions, because I'm betting very few people ever have a chance to do something like that.
Speaker ASo I'm curious how you guys handle it.
Speaker BYeah, no, we addressed that topic head on from the very beginning.
Speaker BAnd as you sort of described step one, we got the leadership teams of the companies together and we got on the table what we each feel is great about our cultures, what's unique about our cultures, and what some of the corresponding challenges associated with that culture.
Speaker BCulture is.
Speaker BAnd so that was sort of step one.
Speaker BBut then to your point, we sort of put that a little bit aside and focused the conversation around.
Speaker BOkay, with that sort of his background, what do we want the culture of the combined organization to be?
Speaker BWhat's important to us?
Speaker BAnd where do we see ourselves as a company?
Speaker B3 years, 5 years, 10 years?
Speaker BWhat's unique about us?
Speaker BHow are we going to differentiate ourselves?
Speaker BHow are we going to provide the best customer experience?
Speaker BPossible over the long arc of time.
Speaker BAnd so those are the kinds of conversations we had about providing a great customer experience, about really being an employer of choice, a place where employees could throw their careers and thrive.
Speaker BAnd so these are the kinds of cultural discussions we had to design what we wanted to be.
Speaker BAnd believe it or not, we actually, as part of this exercise, we actually tried to visualize this too.
Speaker BSo we sort of did sort of a thought experiment.
Speaker BImagine we are on the COVID of a, you know, major news publication showcasing how successful we were in this merger.
Speaker BWhat would the COVID of that magazine look like?
Speaker BWhat would, what would sort of Victory, if you will look like for us?
Speaker BYou know, three years, five years in the picture.
Speaker BAnd it's a really helpful thought experiment, right, because it helps us to focus on really where, where we're headed.
Speaker BAnd so, and so that, that kicked off, you know, certainly a ton of work.
Speaker BBut that's how we, I think, started the merger in a positive way to align around culture.
Speaker ASo it obviously made a lot of press.
Speaker AWhen you guys announced this $22 billion behemoth merger, you did this exercise.
Speaker AWhat parts of that came to fruition, what parts didn't or maybe still yet to be realized from the magazine?
Speaker BWell, I think, you know, like anything, you know, the, you know, strategy and planning is great and then sort of operational reality hits you, hits you square in the face and then you sort of, you know, adapt and move from there.
Speaker BAnd that was sort of true, I think in the UKG experience.
Speaker BAnd that's true in my experience with, with all mergers is that operational reality comes to fruition very quickly.
Speaker BAnd that was the case in the merger too.
Speaker BAnd so look, I think a big part of success in the merger and it was and continues to be successful.
Speaker BI've moved away and now Deltec and doing a lot of great things at Deltec.
Speaker BBut I would say this focus on operational discipline, you know, it sort of goes back to, you know, what lessons I learned in the Navy.
Speaker BAnd then, then it's a more larger at scale organizations which is, you know, to really, you know, inspect how does work get done.
Speaker BUncover institutional knowledge, who really understands, you know, the systems, the processes, where does the domain expertise lie, Identify critical decision flows, get feedback from all sorts of different constituencies and, and determine the downstream impact of some of, of, of all this.
Speaker BThat's, that's, that's examples of all those sort of in the goo operational work that's just critical in order to make sure that that vision, that strategy comes to life.
Speaker BAnd sometimes that Stuff is tough, right.
Speaker BAnd sometimes things take longer than you would otherwise hope.
Speaker BAnd that's what we as leaders need to stay focused on.
Speaker BAnd my perspective is, as a leader, you got to stay focused on the vision, right.
Speaker BAnd communicating where we're headed and the strategy so that everyone understands, you know, the goals, notwithstanding some of the, you know, operational challenges along the way.
Speaker ASo what's the lesson you learned driving a nuclear reactor around that you think you couldn't have learned anywhere else?
Speaker BYeah, look, it was a super fun experience.
Speaker BYou know, what I, what I, what I loved about it is at a young age, you know, I had the privilege of having a lot of responsibility and working in sort of a high stress environment.
Speaker BAnd honestly, I think a lot of that does translate well into sort of corporate life.
Speaker BAnd, and, you know, a few things that I learned.
Speaker BLook, every role is important.
Speaker BCertainly when you're working on a submarine, every role is critical.
Speaker BIt's, you know, in many ways it's us versus the operating environment, which is extremely dangerous.
Speaker BAnd so every role has transferable principles.
Speaker BYou know, titles change, people, people may be different, but, but, but the mission doesn't change on a submarine.
Speaker BYou know, there's zero margin for error.
Speaker BRight.
Speaker BAnd so it's a, it's like 100% dependency on the team.
Speaker BAnd the team has to operate effectively together, has to be, you know, proverbial rolling in the same direction.
Speaker BAnd so that, that creates a, you know, a mission first mindset.
Speaker BYou know, trust over ego.
Speaker BCollaboration is survival.
Speaker BAnd I think a lot of those characteristics, I know a lot of those characteristics were very transferable to working in a place like Deltec, working in the corporate environment, leadership.
Speaker BIt's about aligning people, right?
Speaker BIt's not controlling them, it's helping them see around corners, anticipate what might be coming, help guide better decision making, help reducing friction under pressure.
Speaker BAnd so that's, I think a lot of those mindset principles that I learned in the Navy are how we operate at Beltech and how we build, you know, intelligent systems that support our customers.
Speaker BAnd our customers are people doing really high stakes, stressful, important work.
Speaker BAnd so I think it's, it's a
Speaker Agood, really good parallel, I believe, and you can correct me if I'm wrong, that you're known for one of these sayings.
Speaker AYou, I believe it's, you get what you inspect, not what you expect, or something along those lines.
Speaker BThat's right.
Speaker BThat's right.
Speaker BYeah.
Speaker BI learned that in the Navy, by the way.
Speaker BYeah.
Speaker AOkay.
Speaker ASo you have been rewarded and you have probably kept a lot of crises from happening on a submarine, but with that.
Speaker BThat's right.
Speaker AHowever, you're leading teams now a lot bigger.
Speaker AYou have thousands of people here, thousands of people before, and you're in this field now.
Speaker AOf all the software development, you know, I guess, as you were before too, to a lot of degree.
Speaker AWhere do you draw the line from?
Speaker AOkay, I'm, I'm inspecting.
Speaker AYou know, expect what you inspect and then versus making your team feel like you're just micromanaging them and then driving yourself crazy to burnout because you're like, I need to know the details.
Speaker AI've got to know the details.
Speaker AYou keep going down, down, down, down, down, until you've just, you know, exhausted yourself.
Speaker ASo it's like on one hand, there's a huge advantage to that saying and leading.
Speaker AWhen has this come back to bite you personally and how do you balance it?
Speaker BIt's a really good question.
Speaker BIt's a really good point.
Speaker BLook, you know, it's funny.
Speaker BI think Admiral Rickover, who is, who's sort of known as the father of the US Nuclear Navy, had a saying that, you know, a lot of people used to love to run around saying, the devil's in the details.
Speaker BThe devil's in the details.
Speaker BAnd he would say, but so is salvation.
Speaker BSo is salvation.
Speaker BAnd so, and so I learned that sort of early on.
Speaker BLook, I'm a big believer that operational discipline scales trust.
Speaker BIt really does, you know.
Speaker BAnd so for me, this inspection, this notion of inspection, it's about outcomes.
Speaker BIt's about outcomes, it's not about activity.
Speaker BAnd so I think that type of rigor enables creativity and encourages creativity.
Speaker BIt doesn't suppress it.
Speaker BLook, what I learned in the Navy, like, readiness is non negotiable.
Speaker BAnd I learned that through my corporate career as well.
Speaker BReadiness is non negotiable.
Speaker BAnd so you inspect your systems so that people can perform to their best.
Speaker BAnd so as a leader in business, we inspect things like our signals, we inspect our data, but we don't inspect every move.
Speaker BWe're ultimately interested in outcomes and trying to replace sort of gut feel with, you know, data and customer insight.
Speaker BAnd so that's the aspect of inspection that I think is a positive for everyone involved in a company.
Speaker BAnd so when I think about, you know, like how we do, I do this in my daily work at Deltec, you know, what does this mean for us?
Speaker BI mean, it's about the health of our platform, it's about the integrity of our data, it's about our customers, and again, making sure that our customers are achieving the best outcomes possible with our solutions.
Speaker BAnd so those are the, the sort of things that we rigorously inspect to make sure that we're doing everything we can, you know, to provide an awesome customer experience.
Speaker BAnd we did that, by the way.
Speaker BBy the way.
Speaker BAnd all this stuff, in my view, is, is that much more critical given everything we've got going on with AI.
Speaker BYou know, making sure that AI is governed, making sure that AI is reliable, making sure that AI is trusted.
Speaker BAnd these, these notions.
Speaker BIt's.
Speaker BIt's critical, in my view, that we continue to inspect, to make sure that we're delivering on that promise.
Speaker AIs there a place where you've inspected too much or you've gone too deep in the business from your perspective, or you believe it's.
Speaker AYou need to go all the way down, down, down, down to the very granular level?
Speaker BYeah, I think it depends.
Speaker BIt depends.
Speaker BI mean, I do think oftentimes as a leader, you do need to get into those, you know, into the granular levels of things to be able to really understand what's going on, to really identify root cause.
Speaker BYou know, I'm actually, I'm passionate about continuous improvement, and I think that's a discipline and operational discipline as an organization that was sort of born out of the manufacturing world, but has huge parallels with all companies, including software companies.
Speaker BAnd just this notion that we can continue to get better in every process a little bit each day, each week, each month pays huge dividends.
Speaker BAnd so I think that the best way to really get good at that is to get very granular.
Speaker BAnd I think if you look this notion of concern around micromanaging, that's a legitimate concern, but I think it's one that is relatively easy to deflect if you're just very open, honest, transparent and communicative around the why, why we're doing this, why we're trying to get into the details.
Speaker BAnd when you sort of can communicate that to people and explain how that relates to making the process better over the long arc of time, I think they really get it and they buy in.
Speaker BAnd so it becomes much less about, you know, them feeling like you're inspecting their capabilities and more about the process and trying to make it better.
Speaker AI think that.
Speaker AI think you just said the magic thing there for me in that, because otherwise they're going to be on the defensive and it's not going to be a great experience for probably anybody.
Speaker ABut if it's more about transparency and sharing information and knowing what your intent is like, you know, to really improve the process.
Speaker AIt changes everything.
Speaker ADo you have a certain methodology that you like to apply when you're diving in?
Speaker BYeah, it depends a little bit on the domain.
Speaker BBut I'm a big fan of process mapping.
Speaker BYou know, just getting it, like understanding, you know, again, it starts with the outcome, which, you know, in a software business, you know, almost always revolves around the customer and the type of customer experience that we want to deliver.
Speaker BIt starts with the outcome, and then you work backwards.
Speaker BYou work sort of upstream and.
Speaker BAnd sort of map the whatever process it is that, you know, we're talking about to understand what are the dependencies, what are the points in that process where a decision has to be made, who's accountable for those decisions.
Speaker BAnd by interrogating that along the full chain, in my experience, you always identify, you know, bottlenecks, either single points of failure or places where it's ambiguous or unclear to the people working in the process, you know, what the right next step is.
Speaker BAnd so you just go after those bottlenecks in the process one by one and just continue to sort of iterate on that again with the North Star being the outcome.
Speaker BAnd I think that that sort of process works really well.
Speaker BAnd by the way, that's a.
Speaker BIt's a.
Speaker BThat's an organizational capability.
Speaker BIt's a discipline.
Speaker BIt's not.
Speaker BThat's.
Speaker BIt's not something that just one person is sort of running around, you know, with their hair on fire, trying to preach.
Speaker BIt's.
Speaker BIt's really something that as an organization, you need to get behind so that, you know, this approach can sort of take place at all levels in the organization.
Speaker AYou've talked about a phrase, repot the plants to keep them growing.
Speaker ACurious.
Speaker AHow do you apply that within Deltec?
Speaker AAnd if you had to apply that to yourself today, or you repot yourself as an amateur to accelerate your learning, where would you do it?
Speaker BThat's.
Speaker BThat's a good question.
Speaker BYou know, I learned that phrase repotting the plants from a.
Speaker BFrom a former boss of mine many years ago, and it always sort of stuck with me.
Speaker BAnd because I think he's right, sometimes.
Speaker BSometimes the pots need to be replanted just to, you know, give them a little better soil to grow and to expand.
Speaker BAnd so.
Speaker BSo, like, my.
Speaker BMy perspective on this is like, you know, growth requires discomfort.
Speaker BIn fact, I think there was a recent super bowl ad that sort of was some sort of along those same lines, which really resonated with me.
Speaker BYou know, growth doesn't Come easy.
Speaker BIt almost by definition requires being out of your, out of your comfort zone.
Speaker BAnd so it's about expanding, expanding, I think, your environment.
Speaker BAnd so look, I think Deltec, the way I would describe Delta Deltec is a great company.
Speaker BStrong culture, really strong legacy, deep institutional knowledge.
Speaker BThe things that we do for our customers.
Speaker BI would argue we do, you know, better than anyone on the planet.
Speaker BWe have a very highly trusted position in high stakes industries.
Speaker BAnd so we're privileged in that way.
Speaker BIt's a big responsibility.
Speaker BBut back to this sort of notion of repotting the plants.
Speaker BAI is sort of, there's no question that AI is a new sort of environment, a new tool for us.
Speaker BAnd it expands how customers win, expands how customers plan their projects, execute their projects, analyze their projects.
Speaker BAll the core capabilities that Deltec has done for years and years and years.
Speaker BAnd so it really turns this sort of expertise that we have into intelligence.
Speaker BAnd so that's the big opportunity for us.
Speaker BAnd I think, you know, I think, you know, as I think about Deltec and this notion, we're continuously thinking about how do we repot our own plants, how do we continue to move people around and put them in new and interesting ways so that we can unlock the power of AI Given how it makes, you know, it makes business operations so much quicker, data, you know, synchronization so much quicker.
Speaker BAnd all those great things that you sort of, we all know and it's just a, it's a huge opportunity for us.
Speaker BAnd so.
Speaker BYeah, what would I like to do?
Speaker AYeah, we're gonna reply yourself.
Speaker BYeah, it's a good, it's a good question.
Speaker BI mean, you know, look, I've, I always like, like I'm a, I'm sort of a lifelong learner and intellectually curious.
Speaker BI love jumping into things that I don't know much about and so, and I like going deep on them because I think that's how, that's where you, you know, you really learn and figure out where things are connected.
Speaker BBut, you know, look at this stage of my career, honestly, I like, you know, one of the things I like the most about what I do is, is the teaching aspect of what I do is working with, you know, newer, you know, managers and leaders to, you know, just share my experience and share, you know, what works and what doesn't and sort of the management approach.
Speaker BAnd so I would think, you know, sort of my role and more sort of a teaching capacity would be a lot of fun.
Speaker BBe a lot of fun.
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Speaker AWell, it sounds like to me you've already repotted yourself as a teacher.
Speaker AYou're already rolling with it especially deal with us today.
Speaker ANow for the listeners, right, this, you know, Deltec has got whatever been around over a decade, right?
Speaker AMike Corkery was the CEO who you replaced about a year and a half ago.
Speaker AAnd they've got a good track record.
Speaker AAnd you're coming in from what I can tell is more of the disruptor with the agentic AI mindset.
Speaker AAnd you're here to potentially, I guess, continue to sort of change some things and innovate.
Speaker AHow do you think about being a disruptor in a company that prides itself on being, I guess quote the, the system of record.
Speaker AAnd so for our listeners, right, you guys provide tons of AI software related services, SAS services to companies that provide serious infrastructure for government.
Speaker ASo there's really no, I mean you're, I guess you're not driving around nuclear stuff anymore.
Speaker ABut it's still pretty, it's, it's still very tight in terms of the, any mistakes and things like that.
Speaker ASo how are you balance the innovation with the responsibility to keep things steady?
Speaker BYeah, no, good question.
Speaker BLook, so yeah, Deltec, you're right, we serve government contractors as well as architecture, engineering, construction and consulting firms.
Speaker BAnd the common thread for all of our customers, regardless of what industry they're in, they all live and breathe projects, big complex compliance oriented projects.
Speaker BAnd we have a number of solutions that help them to win projects, manage projects effectively, profitably, in a transparent manner and then analyze their performance so they can get better and improve with every subsequent project.
Speaker BAnd so we've got a lot of cool tools.
Speaker BOur customers are doing some of the most complex things in the world, whether it's building, you know, satellites, building bridges, designing cities.
Speaker BYou know, our customers are doing some really, really cool things, truly transforming the world.
Speaker BSo we're honored to support them in that endeavor.
Speaker BAnd yeah, Deltec's actually I think 40 year old company, 40s.
Speaker AOkay.
Speaker BYeah.
Speaker ASo has a lot longer than a decade then.
Speaker BYeah, so has a Lot of deep domain expertise, but you're absolutely right.
Speaker BLook, my predecessor did a phenomenal job leading the ship at Deltec and so I sort of stepped into some big shoes, but I stepped in at a really interesting time for enterprise software.
Speaker BAnd that's what really attracted me to this opportunity.
Speaker BSort of the, the combination of such a well respected, trusted, important, critical set of solutions that Deltec brings to our customers, coupled with this transformative innovation engine in the form of AI that not only can improve how we operate as an organization on behalf of our customers, but also can dramatically change the types of products that we're delivering to the market and help and gives us a unique opportunity, given that trust that we have with those customers, to help lead them into the AI era.
Speaker BAnd so that's super, super cool from my perspective and what really, really attracted me to this opportunity.
Speaker AAnd so, so what's your philosophy on that, Bob?
Speaker AWhen you say like, because a lot of people might thinking, well man, if you were just in the private sector working with private organizations, you could run a lot faster and disrupt a lot more.
Speaker AAnd yet the government is giant, they need more innovation than anybody.
Speaker ARight.
Speaker ATo kind of keep up with the threats and the risk out there.
Speaker BThat's right.
Speaker AWhat's your message to your team?
Speaker ASo they can kind of walk that, that tightrope?
Speaker BYeah, look, I think that's what's so, that's what's so cool about the opportunity for us is because we have this, look, given our 40 year history, given all of our domain expertise, we are fortunate to have a trusted relationship with our customers, many of which have been with us for decades.
Speaker BAnd so I think we have a unique opportunity to help our customers transform with AI.
Speaker BAnd so I think that, and you know, for me, trust is a critical component of AI and is something that, you know, that is a big differentiator for Deltec versus, you know, what some other companies are out there doing with AI.
Speaker BAnd again, I think it's incumbent upon us to provide the leadership in order to, you know, in order for our customers to utilize and to drive success in their businesses with AI in a manner where there's a human in the loop, where they are staying compliant with important rules and regulations as it relates to their business, given the nature of what our customers do.
Speaker BAnd so I think I view it as a big positive for us, this notion that our customers are trying to balance compliance, the mission critical nature of what they do with this great new technology, with this great new technology.
Speaker BIt's a really fun place to Be.
Speaker AYeah.
Speaker AWell, it sounds like Deltec's rocking it, so good work on that.
Speaker AKeep up the good work there.
Speaker AThere are a few areas of your history that, that I also want to ask more questions about because man, you have got quite a career.
Speaker ANumber one.
Speaker AOne of the things is your M and A experience is, is wild.
Speaker AI mean you have done a lot of deals, you got a bigger reputation as a deal maker beyond like the basic spreadsheet stuff.
Speaker AWhen you're looking at like what's your.
Speaker AI'm thinking about other leaders out there who maybe they haven't done, you know, been involved in the magnitude of deals that you've been in or, and done.
Speaker AWhat are some of the lessons you've learned about like general M and A, like the pros and cons of doing it?
Speaker AYou know, what, what leaders should be thinking about, what kind of questions they should be asking themselves?
Speaker BSure.
Speaker BNo, look, it's funny.
Speaker BI've done, you're right, I've done a ton of M and A in my career.
Speaker BBut I actually think for me it starts with strategy and what, you know, I view M and A as a.
Speaker BIt's a tool in the toolbox to affect your corporate strategy.
Speaker BBut it's not the only tool in the toolbox.
Speaker BAnd you know, as a leader, as a software organization, I actually usually start the bidding at why can't we build this ourself?
Speaker BBecause that's, look, we're in the culture of innovating and building things and collaborating with our customers and think about a company like Deltec.
Speaker BAgain, back to our 40 year history, deep domain expertise.
Speaker BWhen it comes to a new idea, a new opportunity, you would think, you would hope that our team has one of the best perspectives around what's needed in terms of building new software.
Speaker BAnd so that's honestly where sort of mentally I start.
Speaker BNow that said, there's lots of great companies out there that are doing some really interesting, interesting things.
Speaker BAnd so as a leader that the interesting thing to think through is how, how could, how could sort of a new technology or new team bring another type of innovation and growth for us as an organization that's maybe complementary to what we do.
Speaker BAnd so, so that's, that's sort of one dimension is sort of the strategic element of it, but two, it's a, it's a little bit of a truism.
Speaker BBut it's so true.
Speaker BI've learned.
Speaker BIt's, it's, it's all about people.
Speaker BLook, we work in software with bits and bytes.
Speaker BWe're not we're not, you know, selling widgets.
Speaker BWe're not, you know, acquiring hard assets.
Speaker BAt the end of the day, we, you know, we're a, we're an organization comprised of people.
Speaker BAnd so when I think about acquisition, a huge part of it for me, and I've seen, I've seen success and I've seen failure along the way.
Speaker BAnd it comes back to culture, comes out to culture and people.
Speaker BAnd because software business is, you know, the big asset is people, you know, if you buy, if you buy a company and everybody walks out the door, that's, you know, in my experience, not, not a recipe for success.
Speaker BAnd so I think an important thing for leaders to think about as they're contemplating M and A is, is starting with this cultural question.
Speaker BYou know, will that work?
Speaker BWill, will 1 +1 =3?
Speaker BFrom a, from a culture standpoint, not always easy, by the way, but, but, but super important.
Speaker AWow.
Speaker ACan you share with us one of the coolest deals that you've been a part or like a cool moment from a deal making thing that you were involved in and a twist or turn or something along the lines?
Speaker BYeah, I, I'd say, look, I've had a lot of fun, successful acquisitions over the years.
Speaker BYou know, Deltec has done a number of acquisitions that have honestly transformed us as an organization.
Speaker BAnd we've got, you know, the, the other aspect of M and A that people sometimes lose sight of is the talents that you can bring into the organization via M and A.
Speaker BIt's, it's, it's almost never where the conversation starts.
Speaker BBut oftentimes I've found when you're looking back at, at the success or failure of an acquisition five years, ten years later, oftentimes the first bullet on the page is look at these fantastic people that joined our organization and look at the transformative projects that they've driven since they've been part of our organization.
Speaker BAnd we never contemplated that as part of the deal.
Speaker BAnd I've seen that just time and time again.
Speaker BAnd so that, that notion like excites me more than anything.
Speaker BAnd there's, there's, it's, these, it's what I call these sort of ancillary benefits of doing M and A.
Speaker BSometimes you get some sort of cool technology that you weren't expecting, but oftentimes again back to where people, businesses were dependent on our culture.
Speaker BIt's, it's, it's a lot of these people.
Speaker BAnd so when I think of Deltec, you know, some of my senior leadership team is joined by acquisition many Years ago.
Speaker BRight.
Speaker BAnd it's just, you think, wow, we would.
Speaker BWe think, you know, we.
Speaker BWe are just so much of a better organization because of that.
Speaker BAnd that was.
Speaker BNo, that was on.
Speaker BThat was, you know, that wasn't on anybody's sort of playbook.
Speaker BRight.
Speaker BAnd so that's a.
Speaker BThat's a big part of it, too.
Speaker AWell, I like that a lot.
Speaker AI think.
Speaker AI think it may.
Speaker AIt may turn some heads for leaders to hear that, because a lot of times when the acquisition starts, it's like, okay, how can we make them more like us?
Speaker AHow can we make them think like us and use our systems versus harnessing?
Speaker ALike, wait, they're going to use something totally different.
Speaker AWe need to be thinking about how do we harness the new.
Speaker ANot make them just like us immediately.
Speaker BYeah, absolutely.
Speaker BYou always hate to generalize, but in my experience, my radar goes off when I hear that a, you know, integration plan for a prospective company that we're going to acquire involves us, like, splitting it up and, like, you know, spreading out the resources across the big bureaucratic functions, you know, of a company.
Speaker BThat's a big risk.
Speaker BRight.
Speaker BWe, you know, as a general rule, like at Deltec, we don't.
Speaker BWe don't absorb Deans into some bureaucracy or overwrite, you know, what made them special.
Speaker BWe try to accelerate the culture, not flatten.
Speaker BAnd so we spend a lot of time upfront identifying what's unique about the company, what made them win, what's cool about their culture.
Speaker BAnd then we work hard not to disrupt that, because that's a big part of the secret sauce.
Speaker BRight.
Speaker BOf what made that company, you know, successful.
Speaker BAnd you certainly don't want to break that out of the gate.
Speaker AYeah.
Speaker AReally redefines what a successful acquisition and merger looks like.
Speaker AYou know, it's absolutely.
Speaker AYou just do the bottom line, focus on day one, be missing out a lot of the possibilities on the cultural side, which could take some more time to emerge.
Speaker AMan 100 now one, one.
Speaker AAnother question out of your background was when you, back in the Kronos days, you got to enjoy a giant cyber attack, Cyber cyber, cyberware ransom attack.
Speaker AAnd this is becoming more and more commonplace these days.
Speaker AAnd I believe you were.
Speaker AYou were really in deep trying to address that.
Speaker AHow did you address it?
Speaker ALike, what was that like?
Speaker AAnd what did you call on during that time to really help you navigate that challenge as a leader?
Speaker BYeah, you know, enjoy is a fun, fun word that you use there.
Speaker BThat was.
Speaker BYeah, I would say, unequivocally, that was the most challenging experience of My professional care.
Speaker BOh, my goodness, I don't want to repeat that, but learned a, you know, tremendous amount through it.
Speaker BLook, it in many ways took me back to my submarine training when, you know, the things you train, you train for when things go bad.
Speaker BAnd, and so I felt along that path, in many ways, like I was operating in that kind of environment.
Speaker BAnd that looks, you know, as a leader managing through that type of horrible events, you know, for me, it's all about.
Speaker BIt's about focus.
Speaker BFocus before emotion.
Speaker BIt's about putting people first and system second and about driving towards stability rather than focusing on speed and being, you know, sort of frenetic and.
Speaker BAnd, you know, so.
Speaker BSo.
Speaker BAnd that's what I learned, you know, back to my.
Speaker BBack to my Navy training.
Speaker BRight?
Speaker BJust, you know, being focused on risk awareness, calm decision making in an.
Speaker BIn an uncertain environment, assessing stabilizing and then taking action.
Speaker BAnd look, so the.
Speaker BSo the biggest lesson for me in that, in that ransomware attack is like, look, number one, you can't control the environment, but you can control your response.
Speaker BAnd so that's what we as a team talk a lot about through that endeavor.
Speaker BAnd so, you know, how that showed up in the moment.
Speaker BIt's things like, you know, accept reality very quickly, protect people, extend trust, communicate over.
Speaker BCommunicate, Communicate clearly.
Speaker BEven when, you know, we don't have answers.
Speaker BYou know, if you're not communicating with your customers, that's a little bit of a communication in.
Speaker BOf itself.
Speaker BRight?
Speaker BThey sort of fill in the gaps.
Speaker BAnd so you can't let that happen.
Speaker BAnd so you got to just keep communicating even.
Speaker BEven when you have incomplete answers.
Speaker BStay present, stay visible, stay accountable.
Speaker BAnd so, you know, it's funny.
Speaker BIt's.
Speaker BIt's, you know, like a lot of things in life, while on the one hand, that was a, you know, really challenging experience that I never want to go through again.
Speaker BAt the same time, I sort of have some fond memories that I experienced because we, we banded together so closely as a team, you know, working, you know, seven days a week trying to, you know, recover from that.
Speaker BFrom that.
Speaker BAnd, you know, that's, you know, it was just a.
Speaker BIt was a good experience in that, in that standpoint, just trying, you know, working together, all rowing in the same direction to get our customers taken care of.
Speaker AYeah.
Speaker AWent from peace time to war time pretty quickly.
Speaker BAbsolutely.
Speaker AIt is interesting.
Speaker AIt's like it really, when you have those moments.
Speaker AI mean, I've read and I hear about it.
Speaker AI mean, the teams naturally align.
Speaker AExecutives spend so much time trying to Align their team.
Speaker ABut when there's a really nasty event, the team just gets behind it, usually.
Speaker AAnd yeah, there's a level of focus.
Speaker AHow long did you have to have that wartime mindset during that?
Speaker AAnd how did you, how were you able to sustain it?
Speaker BYeah, look, it, it went on for a few months.
Speaker BAnd even once, once you get sort of customers back up and running, they're still, you know, as their opposite often is.
Speaker BThere's a lot of, a lot of things to clean up and a lot of, you know, root cause analysis and lesson learned and systems to improve.
Speaker BAnd so it went on for a good number of months.
Speaker BAnd look, how'd we get there?
Speaker BHonestly, we got there together.
Speaker BI think, you know, we, as a, as a, as a leadership team, you know, I made sure that my team was spending a lot of time together, talking every day, multiple times a day, just to sync up in terms of what's working, what's not working, concerns that people have.
Speaker BLook, for me, look, as a leader, you don't have to have all the answers, but, but you need, you need trust.
Speaker BI mean, you mentioned the, the team sort of pulling together in wartime to march together.
Speaker BBut, but, but I think the, the necessary ingredient for that to happen is trust.
Speaker BAnd so part of my job through that process in terms of continuing to instill trust was being present and, and being communicative and, and, you know, silence creates fear, right?
Speaker BIt creates fear with our team, it creates fear with our customers.
Speaker BI also certainly didn't have all the answers, nor did I pretend to, either with our customers or our team.
Speaker BI think overconfidence destroys credibility.
Speaker BRight.
Speaker BBut honesty builds trust.
Speaker BEven, even, even in a world where the outcome's uncertainty, honesty builds trust.
Speaker BAnd so that transparency is critical.
Speaker BAnd look, again, it's not about certainty.
Speaker BIt's about intent.
Speaker BIt's about progress.
Speaker BIt's about presence.
Speaker BAnd I think those are the, those are the, yeah, those are the characteristics that I think helped us as a team really stay together and focused.
Speaker BAnd, and, and, and I was just really, really, you know, not well, again, never want to go through that again.
Speaker BI was really proud of how the team sort of, you know, worked through all that complexity.
Speaker AYeah, it's so funny.
Speaker AIt's like a lot of times, like you say, like we were under attack, but we had to do is, we had to be more present, we had to communicate more than ever, not less.
Speaker AWe had to go above and beyond to be out front.
Speaker AAnd it's a good lesson.
Speaker AYou gotta lead from the front in those moments.
Speaker AAnd you guys did and got through it successfully.
Speaker ASo tip of the hat and wow, what an experience.
Speaker AI'll sort of land the plane on this or land the sub or dock the sub.
Speaker AWhat is one Navy habit you still can't shake, even in the boardroom?
Speaker BOh, that's a good one.
Speaker BYou know, I, I still am very prompt.
Speaker BI show up, I want to say on time, but if I'm honest, I show up a little early.
Speaker BI start meetings on time.
Speaker BThat's just a very, like, innate sort of thing that I learned in the, in the Navy is, you know, if you're, if you're, if, if you're not a little bit early, turns out you're late, so.
Speaker AOh, yes, I've heard that before.
Speaker AIf you're not on time, you're late.
Speaker ATrying to talk about.
Speaker BI sometimes have to remind myself I have to, like, relax a little.
Speaker BLike, you know, if I'm going to a customer meeting or something, you know, I have to tell myself, you know, the whole.
Speaker BNot all the world operates on that sort of clock.
Speaker BIt's a.
Speaker ASometimes that I was dropping my, my 15 year old off, or she's 14, soon to be 15, off at 1 of her high school dances.
Speaker AAnd we were on time.
Speaker AShe and her friends were like, her friends were like, oh, my gosh, we're on time.
Speaker AWe might be the only ones.
Speaker AAnd one of her other friends who'd not been to a dance before said, is it bad to be on time to a dance?
Speaker AAnd they all turned her and said, yes.
Speaker AAll right, so there might be one exception to the rule.
Speaker BRight.
Speaker BThere's.
Speaker BI didn't, I did not learn the, the notion of being fashionably late in the Navy.
Speaker BThat's right.
Speaker AOkay.
Speaker AThat was not part of the teaching curriculum there.
Speaker BRight.
Speaker AWhat's one piece of advice that you followed for years and then realized that it might not be 100% correct?
Speaker BWell, it's a good question.
Speaker BI, you know, I would say, you know, there's this, I think there's a commonly held view, you know, when you think about people who are starting their careers or even, you know, kids that are in school thinking about, you know, what they want to study.
Speaker BYou know, there's, there's commonly held advice that you hear a lot that you should, you should start broad.
Speaker BRight.
Speaker BThat you should, you know, keep an open mind because, you know, you never know what you're going to ultimately end up being interested in.
Speaker BAnd so study.
Speaker BSo, you know, you hear people say, study something that's, you know, as broad as possible.
Speaker BAnd like, I, you know, I don't want to pick on any particular majors or functions, but you know what I mean?
Speaker BLike, don't, don't like, get too narrow because then you'll be, you know, pigeonholed.
Speaker BAnd I actually think the op, in my experience, the opposite is actually true.
Speaker BI think there's a lot of benefits in going deep in a narrow category early because that's where you learn so much discipline and that's where you learn the importance of the, you know, what's going on at the ground level and the intricacies of a given topic.
Speaker BBecause I think the skills you learn by going deep in a narrow topic are transferable to other topics.
Speaker BAnd so whereas if you start sort of more of a generalist approach, you don't sort of learn how to, you know, get to the root cause, you know, of.
Speaker BOf sort of topics and really get into the weeds.
Speaker BAnd that's what, that's what.
Speaker BSo, so I guess my answer to you is I have always been a big believer in, like, picking something that you like, you know, you like being, you know, something that you want to engage in and then going really deep on it.
Speaker BAnd then at some point, if you want to pick your head up and do something else, great, great.
Speaker BBut, but, but don't, don't start, don't, don't try to, don't fly at 50,000ft for the rest of your life, because that's going to be tough.
Speaker AWell, it ties back to your repot example.
Speaker ALike you can repot yourself somewhere else.
Speaker ABut I haven't thought about it that way because I do can easily see this mentality level.
Speaker AI only want to go deep once I really found that thing that I'm passionate about.
Speaker ABut then you'll be going deep for the very first time.
Speaker AIf you have that experience and joy of understanding things at a very granular level, it's just going to help you do that multiple times.
Speaker BThat's right.
Speaker BThat's right.
Speaker BAnd like you talked about, like, submarine versus corporate America, so much of that's transferable.
Speaker BAnd it's because it's like at the end of the day, in any sort of business, we're talking about people, we're talking about process, we're talking about technology, the intersection of those three things, and that's.
Speaker BThose lessons are transferable across sort of, you know, markets or verticals or whatever.
Speaker BAnd so if you get, you know, so again, sort of get deep, then you learn, you learn at a really visceral level the intersection of those for a particular domain and that's transferable.
Speaker BThat's transferable.
Speaker BYou know, if you're operating a nuclear reactor to, you know, building project management software, that's transferable.
Speaker APhilosophy and that for raising kids too.
Speaker BI think that's right.
Speaker ATry a lot of things which is good for them.
Speaker ABut also, you know, pick something and go deep like understand the fundamentals of it and you know, have that experience.
Speaker BThat's right.
Speaker AThat's been a fun one today.
Speaker AWhat's your parting thought for our listeners?
Speaker BI think look, I've enjoyed meeting you.
Speaker BGood discussion.
Speaker BLook, I think hearted thought culture is everything.
Speaker BCulture is everything in an enterprise software company.
Speaker BI would probably argue in other companies as well.
Speaker BAnd where that manifests itself most is our customers.
Speaker BThat's why our customers see us, they feel us, they interact with our people.
Speaker BThat's why people choose to do business with us.
Speaker BIt's why people buy more stuff from us.
Speaker BIt's because of the quality of our people, the engagement of our people, the expertise of our people.
Speaker BAnd so as a leader, I spend a disproportionate amount of time thinking about and making sure that we're investing in our culture and investing in our people because that's where the rubber meets the road.
Speaker AEverybody invest in your people.
Speaker ACulture is everything.
Speaker ABob's made it happen a lot of places.
Speaker ABob, thank you for joining us today.
Speaker BAwesome.
Speaker BThank you.
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