Dave Cody

I look at business as if you're at all competitive.

Dave Cody

It is the most fun game you will play in your entire life.

Dave Cody

It just keeps going on and on.

Dave Cody

It's very complex and winning is just fun.

Dave Cody

Business has been the biggest force for good and for improving people's standard of living in the history of the world.

Dave Cody

And it's because business is the source of productivity.

Dave Cody

Productivity is the source of standard of living and people should feel good about being in business.

Dave Cody

We improve people's lives.

Ben Fanning

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Ben Fanning

Then check out our business podcast program.

Ben Fanning

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Ben Fanning 2

Welcome back to lead the team with number one best selling author and in demand corporate trainer Ben Fanning.

Ben Fanning 2

On this podcast, the world's most innovative senior leaders share their top success strategies to motivate your direct reports, cultivate your top leaders and accelerate your career.

Ben Fanning 2

Let's get started.

Ben Fanning 2

Here's Ben.

Ben Fanning 2 3

Hey there.

Ben Fanning 2 3

Welcome back to Lead the Team y'all.

Ben Fanning 2 3

A real treat today for a very special repeat guest, Dave Cody, the legendary former chairman CEO of Honeywell for more than 16 years, y'all.

Ben Fanning 2 3

He grew the company's capitalization back in the day from 20 billion to 120 billion.

Ben Fanning 2 3

I was there in Honeywell for that amazing ride.

Ben Fanning 2 3

He's currently the Executive Chairman over at Vertiv Holdings.

Ben Fanning 2 3

He was elected also to the Federal Reserve bank of New York as a Class B Director to represent the interest of the public and a member of the Aspen Economic Strategy Group.

Ben Fanning 2 3

And so many awards including the Horatio Alger Award, CEO of the Year from Chief Executive Magazine and Barron's top 30 CEOs for five consecutive years.

Ben Fanning 2 3

He's authored Winning Now, Winning later from Operas Collins, which Fortune by the way, called his book one of the best guides ever on how to lead a company.

Ben Fanning 2 3

And now he's recently released how to be a leader 15 minutes a day to establish communication, resilience, creativity and humility.

Ben Fanning 2 3

It may be his best accolade.

Ben Fanning 2 3

Well, at least in my mind.

Ben Fanning 2 3

He was actually interview number four only the team back in 2020 and we've just released 332.

Ben Fanning 2 3

So he's been a real Inspiration here to our show.

Ben Fanning 2 3

Help us keep going.

Ben Fanning 2 3

Dave, welcome back to lead the team.

Dave Cody

Oh, you're very kind, Ben.

Dave Cody

I'd have to say the only thing I would modify.

Dave Cody

Yes, that Vertiv.

Dave Cody

I'm not sure whether you'd say it's 900% or 1000%, but we launched at 10 in February of 2020 and today we're hovering over a hundred.

Ben Fanning 2 3

Oh my gosh.

Ben Fanning 2 3

Well, thanks for the call to join Vertive, Dave.

Ben Fanning 2 3

Wow.

Dave Cody

Yeah, so it's not so bad.

Ben Fanning 2 3

So I want to spend some time talking about the Honeywell days because I love talking about that.

Ben Fanning 2 3

But you since, well you were there.

Dave Cody

For part of it, so yeah, I love it.

Ben Fanning 2 3

But we're gonna some listeners, we're gonna get into that but found it very interesting what you're doing right now.

Ben Fanning 2 3

So let's talk about that.

Dave Cody

Well, my family just bought a majority interest in a NASDAQ listed company called Composecure that makes metal credit cards.

Dave Cody

And first thought from anybody and that was including me, was metal credit cards.

Dave Cody

How hard is that?

Dave Cody

Well, what you end up finding is it actually is pretty complicated and there's a lot of technology required for it.

Dave Cody

It's an eight layer card that has to, you have to include a chip and antenna and it's got to have the right fit and finish.

Dave Cody

So it actually is a lot more complicated in the technology than people realize.

Dave Cody

And metal credit cards are booming and they're going to continue to do so because if you're a credit card holder, you like being able to have a metal card.

Dave Cody

There's a marker distinction that goes with it and we were quite pleased because we bought it at 8 and when it was 8 and now it's up to around 14 and that's in the space of about 30 days, which has been kind of nice.

Dave Cody

Yeah, it's like a typical plastic credit card except it's metal.

Dave Cody

So it's just a little, a little heavier and it kind of, it's a brand distinction.

Ben Fanning 2 3

Okay.

Ben Fanning 2 3

And so what are you, are these sold through like true.

Ben Fanning 2 3

Like people think about Visa, they think about American Express, things like typical banks.

Dave Cody

So.

Dave Cody

Or credit card companies.

Dave Cody

So in this case American Express and JP Morgan Chase are big customers.

Dave Cody

Other banks are starting to realize that when you take a metal, when you, when you go to a metal credit card for your more affluent customers, spending goes up and it's largely taken from the plastic credit card guys because people start using their metal credit card usually because there's.

Dave Cody

They also put a program around it that's enhanced but between that and the brand distinction of a metal card, if you ever held one, you'd say, oh, wow, this really is different.

Dave Cody

There's a brand distinction to it.

Dave Cody

It's like having a Gucci bag.

Dave Cody

It does the same thing.

Dave Cody

Louis Vuitton.

Ben Fanning 2 3

Well, when you.

Ben Fanning 2 3

First of all, you say Louis Vuitton way better than I can well actually.

Dave Cody

Recall I spoke French before I spoke English as a kid.

Ben Fanning 2 3

The.

Dave Cody

I grew up in this little French Canadian enclave in New Hampshire.

Dave Cody

And I mean, there were there.

Dave Cody

I spoke French before I spoke English, and I.

Dave Cody

I've lost most of it.

Dave Cody

Whatever I have now is vestigial, but it was.

Dave Cody

You do retain some of the pronunciation.

Ben Fanning 2 3

Well, when you flew to France to negotiate Honeywell Aerospace deals, were you speaking French?

Dave Cody

I am nowhere near good enough to be able to do that either to negotiate an aerospace deal or to do it in French.

Dave Cody

Either one.

Ben Fanning 2 3

Okay.

Ben Fanning 2 3

Either one.

Ben Fanning 2 3

Oh, God.

Ben Fanning 2 3

This is.

Ben Fanning 2 3

This is going to be a fellow.

Dave Cody

All right.

Ben Fanning 2 3

And so again, we're kind of going reverse.

Ben Fanning 2 3

Okay.

Ben Fanning 2 3

So you're like, okay, hey, there's this interesting credit card opportunity.

Ben Fanning 2 3

I'm doing that.

Ben Fanning 2 3

And then.

Ben Fanning 2 3

And then you're.

Ben Fanning 2 3

You really jumped all in with a Vertive after leaving Honeywell.

Ben Fanning 2 3

What have y'all been up to?

Ben Fanning 2 3

An avertive.

Ben Fanning 2 3

And what's.

Ben Fanning 2 3

What's been driving the growth over there for you?

Dave Cody

Well, in both cases, so.

Dave Cody

Well, actually, all three cases, if you take a look at our acquisition strategy in Honeywell, the approach that I took to Vertiv and the approach I took to Compost Secure, they're all the same.

Dave Cody

And that's that I always look for what I call my Honeywell hot buttons.

Dave Cody

And it's six items.

Dave Cody

Is it a great position?

Dave Cody

Is it a good industry?

Dave Cody

Can you differentiate with technology, can you grow sales more aggressively, organically?

Dave Cody

Is there an opportunity to grow inorganically?

Dave Cody

That is acquisitions.

Dave Cody

And six, can I expand margins?

Dave Cody

And we did over 100 acquisitions, as you know, in Honeywell, and that was the criteria we looked at for every single one of them.

Dave Cody

Then in doing the Vertiv deal, that hit all six of those hot buttons.

Dave Cody

And I was convinced data centers were going to be fundamental to the digital age.

Dave Cody

And it was an underappreciated asset and obviously proves we were right.

Dave Cody

And I look at Compose Secure and say, it is the same thing.

Dave Cody

This is an underappreciated asset, and the cash it generates is going to enable significant acquisitions that nobody's even really contemplating yet.

Dave Cody

So it's the same thing.

Dave Cody

It's the same kind of Mentality or strategy that was in the book.

Dave Cody

And it's just we continue to apply it pretty, pretty aggressively.

Ben Fanning 2 3

Yeah.

Ben Fanning 2 3

So cool.

Ben Fanning 2 3

So you got introverted though, before AI was popping on the radar.

Ben Fanning 2 3

Is this something that was in your, like your crystal ball that you were thinking, or.

Ben Fanning 2 3

I don't.

Dave Cody

Well, I wish my crystal ball was that good.

Dave Cody

So, no, not AI specifically, but I can remember asking a question that no one else had, and that was including through two previous owners.

Dave Cody

And everybody kept talking about how data grows at 20% a year.

Dave Cody

And I was the first one to say, well, if Data is growing 20% a year, why did data centers only grow 4% a year?

Dave Cody

And they started analyzing it and they'd never done it before, and they came up with four or five mitigating factors that said, this is why it's not growing as fast.

Dave Cody

And I can remember looking at it and saying, well, wait a minute, these things look like they come to an end at some point.

Dave Cody

And they said, oh yeah, it should end in the next two or three years, that this is all going to be handled or flowed through.

Dave Cody

Said, okay, well what new mitigating factors are either in this?

Dave Cody

Well, we don't see any.

Dave Cody

So at some point, data center growth has to approximate data growth.

Dave Cody

Yes.

Dave Cody

Okay.

Dave Cody

I said, well, that sounds like basis for a pretty darn good industry to me.

Dave Cody

And oddly enough, no one had ever asked that question.

Dave Cody

No consultant, no one else.

Dave Cody

So I'm bragging now, but we looked at it and said, geez, well, this sounds like a pretty good tailwind to have for yourself.

Dave Cody

And the growth in the business started way before, a couple of years before AI became a phenomenon.

Dave Cody

And it's just fundamental to the digital age.

Dave Cody

The data centers, there's no.

Dave Cody

We're, we're, you know, we had the agricultural age, the industrial age, now we're in the digital age.

Dave Cody

I don't think there's as much of a recognition of that as there should be sometimes, especially when you hear stuff like, you know, we got to bring all the manufacturing jobs back.

Dave Cody

Like, there's something unique to that.

Dave Cody

The reality is we're 30, 40 years into a new era, the digital age.

Dave Cody

And fundamental to that is the data center.

Dave Cody

And that, that's what, that's what I liked about it.

Dave Cody

And you probably saw, I mean, I was writing about this in Honeywell about two major 21st century trends.

Dave Cody

And one was going to be the digital age, the second is bioengineering.

Dave Cody

And those two are going to meld together more in the future.

Dave Cody

Those are, that's still true.

Dave Cody

And that was for me was fundamental to investing in vertiv.

Ben Fanning 2 3

I remember when the message we were hearing was, okay, we used to be an industrial, now we're like, we were like, we were a cyber industrial or so it was a cyber like that started kicking off.

Dave Cody

Yeah, well it was if you recall, I mean at Honeywell it used to be like 25% of our engineers were developing software and by the time I left, 50% of our engineers were developing software.

Ben Fanning 2 3

Yeah.

Ben Fanning 2 3

So there was a substantial turning point with the vision and the people like really kicking off a new age for Honeywell.

Dave Cody

Correct.

Dave Cody

Because I felt that the digital age was going to have a big impact on us.

Dave Cody

And we had an advantage because we had domain knowledge which is going to be significant in industrial applications.

Dave Cody

And by combining that domain knowledge with software expertise, we would have something nobody else did.

Dave Cody

And that's proven to be true.

Ben Fanning 2 3

So one of the things that I noticed in you, and you're talking and you're reading your books is you have a knack for sort of simplifying the language around complexity.

Ben Fanning 2 3

And it seems like I'm trying to give an example here, but like what you're just talking about, like, hey, the consultants were coming in, they were telling us about, you know, how much data centers we're going to need, why it's not keeping up.

Ben Fanning 2 3

And I'm just questioning it.

Ben Fanning 2 3

And it just seems like you got to cut through a lot of the over complicated aspects of stuff to get down to the core principle of it.

Ben Fanning 2 3

Is this something that is natural to you or always alive, or have you just sought to develop it as you've got along as a leader?

Dave Cody

Yeah, it's kind of very fascinating that you bring it up actually because no, it's not something that I worked to develop and I guess I'm kind of bragging talking about it, but others have been saying that about how I operate for decades really that I had an ability to make things simple.

Dave Cody

And I think it's just, it was just kind of natural in me because as I try to understand something, if there's too many moving parts, it just, it just doesn't quite make sense.

Dave Cody

Okay.

Dave Cody

You know a lot, but you don't really know how the whole thing works, the process or the industry.

Dave Cody

And you find out that a lot of this stuff you really can boil down to something that's pretty straightforward and easy to understand.

Dave Cody

And I'd say just various things I've read over time have kind of reinforced how important that is.

Dave Cody

So it's a Skill, I guess I've got.

Dave Cody

And it's just been reinforced over time.

Dave Cody

And I remember being struck by book cat's cradle.

Dave Cody

And that was a big.

Dave Cody

I think it was Kurt Vonnegut and being struck by how simplicity mattered in terms of being able to explain anything.

Dave Cody

And others who had written that if you can't explain it simply, it means you don't understand it.

Dave Cody

And I've often thought that made a lot of sense.

Dave Cody

So I'd say it was something that was natural in me.

Dave Cody

But I've gotten enough reinforcement out of other stuff I've read that said.

Dave Cody

Yeah, I'm going to keep doing that because it helps me to understand something.

Ben Fanning 2 3

You know, like I hear it and I read like your origin story of the days where like you were starting a fishing boat, charter.

Ben Fanning 2 3

Charter boat with your buddy, you're like in your apartment with your first child and you're like freezing and you try to get a job.

Ben Fanning 2 3

And I, I mean it's really incredible story there.

Ben Fanning 2 3

I didn't know if your family was just very.

Ben Fanning 2 3

Just blunt and to the point, like, Dave, don't over complicated or, or what.

Ben Fanning 2 3

But it sounds like you just.

Ben Fanning 2 3

You got inspired for simplicity as you went along.

Dave Cody

Yeah, I, I can't say that it was, it was not.

Dave Cody

I mean, there were certain things in my family that were.

Dave Cody

Talked about a lot.

Dave Cody

You know, like I've.

Dave Cody

I've said be a leader, not a follower, that sort of thing.

Dave Cody

But the ability to explain things simply.

Dave Cody

I mean, I've got a couple of examples where I can remember in high school we had to write a paper on something and I wrote mine pretty simply in the teacher telling me, you're going to go far in life, Mr.

Dave Cody

Cody, if you can keep doing this.

Dave Cody

And same thing in college.

Dave Cody

I can remember having a finance course and participation was 25% of the grade.

Dave Cody

And I can remember the teacher, the professor calling on me and saying, and what seems to be the issue here?

Dave Cody

And I still remember I just said very bluntly, they're paying their bills too fast and they're not collecting their receivables fast enough.

Dave Cody

And he was used to these like long paragraphs that would go on.

Dave Cody

And he just hesitated a moment and he said, if you can keep doing that, you'll do very well in your career.

Dave Cody

And I was kind of shocked by it at the time, like, oh, wow.

Dave Cody

Not sure what just happened here, but I was just saying what it is.

Dave Cody

I said, I feel like I'm bragging, but it was kind of resident in me.

Dave Cody

And it's been very handy.

Ben Fanning 2 3

Yeah.

Ben Fanning 2 3

And it's, it is cool to think from a teacher standpoint how early teachers highlighting what you were doing.

Ben Fanning 2 3

Well, stuck with you alive.

Ben Fanning 2 3

They're like, hey, I want to keep doing that.

Ben Fanning 2 3

Seeking.

Dave Cody

It probably was a reinforcement.

Dave Cody

I didn't even think about it at the time.

Dave Cody

It was just kind of who I was.

Dave Cody

But it probably was a reinforcement because they still remember it just 50 years ago.

Ben Fanning

Would you or your CEO be a good fit for this podcast?

Ben Fanning

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Ben Fanning

Go to benleads.com apply to fill out a quick form where you can let us know a little bit about yourself.

Ben Fanning

And my team will take a look to see if we're a good fit.

Ben Fanning

That's beneleads.com apply.

Ben Fanning 2 3

So what, what other early experience or mentors shaped your leadership philosophy and perhaps the way that you approach challenges?

Ben Fanning 2 3

Because you've had some doozies that I've read about.

Ben Fanning 2 3

Pick any of those or any other ones that you.

Dave Cody

Yeah, there, there's been a number of them.

Dave Cody

They, they pop up time to time.

Dave Cody

And my wife always says she finds it interesting that somebody will walk in and say, you know, the markets are crashing 40%.

Dave Cody

And I just kind of sit there and go, okay, well, this is probably what we need to do.

Dave Cody

So I very calmly work my way through it.

Dave Cody

But if the ring doorbell doesn't work, I'm ready to rip it off the wall and smash it because I just, I can't stand the petty irritations.

Dave Cody

The big stuff doesn't bother me, but the petty irritations drive me nuts.

Dave Cody

The primary mentors I had really were my mom and dad.

Dave Cody

And I've said this a lot in terms of leadership lessons, just my mom and dad, they both had 8th grade educations, but they had a certain wisdom that comes from just living life and having to get by, whether it was through the Great Depression or the war.

Dave Cody

And yeah, there was a lot to learn from that in terms of don't blame others.

Dave Cody

Figure out what the problem is and address it yourself.

Dave Cody

Don't blame other people for your problems.

Dave Cody

Don't be.

Dave Cody

I didn't say it this way, but it was don't be a victim.

Dave Cody

You've got to figure out stuff for yourself.

Dave Cody

You've got to be able to take care of yourself.

Dave Cody

Be a leader, not a follower.

Dave Cody

Don't be dependent on others.

Dave Cody

Remember one of the biggest insults that in my family that, you know, when they were sitting around the kitchen table talking about somebody was.

Dave Cody

They'd say, he can't pay his bills.

Dave Cody

And that was, like, just a terrible shot that they were living beyond their means and just weren't smart enough to be able to manage that.

Dave Cody

Working your way out of a crisis.

Dave Cody

I mean, my parents were encouraged at one point to declare bankruptcy because they'd gone into chicken farming for eggs.

Dave Cody

And it was a disaster, as my dad said, that his chickens laid one egg and flooded the market.

Dave Cody

And they refused to do it.

Dave Cody

They wouldn't do it.

Dave Cody

My mom ended up getting a job, even with five kids got a job.

Dave Cody

And they worked hard to pay off everything because for them, it was a mark of pride that you didn't go bankrupt.

Dave Cody

You found a way to pay all your bills.

Dave Cody

That creates, I think, a certain way of looking at the world and the problems that the world throws at you that says you don't just give up.

Dave Cody

You figure it out.

Dave Cody

You work hard to figure it out.

Dave Cody

And they were.

Dave Cody

You could tell.

Dave Cody

I mean, the two of them were quite influential in, I think, my outlook on life.

Dave Cody

And then as you go along, you see that other business leaders do things and you either take away something you will do or something that you'll make sure you won't do as you go along, and you just kind of accumulate experiences.

Ben Fanning 2 3

So cool.

Ben Fanning 2 3

And I was just thinking about Honeywell and how much cash we have, you.

Dave Cody

Know, not when I started.

Ben Fanning 2 3

Well, no, you built it like you.

Ben Fanning 2 3

You prioritize cash in the bank, and then you have, you know, identified opportunities.

Dave Cody

Yeah, I still do, no matter where I am.

Dave Cody

I have this line that I use a lot that just says cash is flexibility.

Dave Cody

And you.

Dave Cody

You can't.

Dave Cody

You can't run your life or your business so tight that you don't have flexibility.

Dave Cody

Plus, I.

Dave Cody

I wouldn't be able to sleep at night.

Dave Cody

That's just not how I want to live my life.

Ben Fanning 2 3

I find myself very aligned to that.

Ben Fanning 2 3

I don't know if it was my parents or if it was my time at Honeywell, but really, to focus on building that reserve and it.

Ben Fanning 2 3

And I thought about his flexibility, but it makes sense.

Dave Cody

Oh, yeah.

Ben Fanning 2 3

And it creates opportunity because you may see the market, you may see changes in the environment, and that creates opportunity.

Ben Fanning 2 3

If you had cash available, you can act.

Ben Fanning 2 3

And Honeywell did that time.

Ben Fanning 2 3

Yeah, time and time again.

Ben Fanning 2 3

I'm curious, with your, like, family, with your children, right?

Ben Fanning 2 3

You.

Ben Fanning 2 3

You.

Ben Fanning 2 3

You grew up in a much different situation than your kids.

Ben Fanning 2 3

How do you think about or how did you think about infusing this minds or talking to them about, you know, this.

Ben Fanning 2 3

This mentality.

Dave Cody

No, that's.

Dave Cody

You're exactly right.

Dave Cody

And it's one of the worries that I have less for my kids than for the grandkids and great grandkids, because I've obviously done very well.

Dave Cody

My sons have actually done well.

Dave Cody

So that's adding to it.

Dave Cody

And we spent time as a family about six years ago, we got all the adults together to say, what are the Cody family values that we want to espouse and have every generation raised with?

Dave Cody

Because they're going to inherit money.

Dave Cody

And inheriting money without values is just the road to perdition.

Dave Cody

And everybody talks about how money ruins kids.

Dave Cody

And I'd say yes and no.

Dave Cody

If they're predisposed to being ruined, whether they have money or not is probably not going to matter.

Dave Cody

But.

Dave Cody

And there's some that are going to just, you know, be intense and want to work anyway.

Dave Cody

You're trying to get those folks in the middle, the kids in the middle, who could probably go either way, but if they raised with the right values from the beginning, and I'm actually looking at it, it's here in my office.

Dave Cody

The first one's family responsibility.

Dave Cody

Another is integrity, the ability to think independently, focusing on your personal growth, taking the time to enjoy your life.

Dave Cody

We've got a number of these things laid out that everybody in the family bought into.

Dave Cody

It took us almost two years to kind of work the wording and get to the point where we said, okay, this is.

Dave Cody

This is how we want every generation to be able to act.

Dave Cody

And I think it's going to make a difference.

Dave Cody

Certainly it has with.

Dave Cody

Without having it written down, did with my two sons.

Dave Cody

And I think it's going to continue to work because I see how they're raising their kids.

Ben Fanning 2 3

Interesting to hear that.

Ben Fanning 2 3

I think a lot of leaders spend a lot of time thinking of their company values.

Ben Fanning 2 3

But it's interesting when you begin to translate what makes sense for family.

Ben Fanning 2 3

How do we.

Ben Fanning 2 3

And also it's interesting for think about not just your immediate family, but future generations.

Ben Fanning 2 3

And if you document so you can get the buy in, if you can find a way to communicate the message that resonates across generations, that's really something special.

Dave Cody

Yeah.

Dave Cody

And it's kind of interesting that, you know, the two boys and us, when we got to Christmas, we all had the same idea and that was to get that made into a nice plaque that you could then, you know, hang on your wall.

Dave Cody

And we all had the same idea.

Dave Cody

So it's like, we all got three versions of it, so it meant something to.

Dave Cody

To everybody.

Ben Fanning 2 3

So everyone got three versions of it.

Ben Fanning 2 3

Well done.

Ben Fanning 2 3

All right, so.

Ben Fanning 2 3

So I guess something worked there.

Dave Cody

Yeah.

Dave Cody

Resonated.

Ben Fanning 2 3

Yeah, that's good.

Ben Fanning 2 3

No, that's cool.

Ben Fanning 2 3

That.

Ben Fanning 2 3

That is really cool.

Ben Fanning 2 3

Now thinking about or kind of all the communication idea and mind the podcasting.

Ben Fanning 2 3

You know, we're really focused on this with companies, and I find that a lot of leaders have.

Ben Fanning 2 3

Have this challenge, and I want to get your.

Ben Fanning 2 3

One is they've got a lot of employees.

Ben Fanning 2 3

They're remote.

Ben Fanning 2 3

They need to get a message across.

Ben Fanning 2 3

They don't understand maybe the value, the message, the company or things that need to change.

Ben Fanning 2 3

They got to get their message across.

Ben Fanning 2 3

Employees are a lot of different places.

Ben Fanning 2 3

You had 130,000, 130, 1000.

Ben Fanning 2 3

And also there's this element of.

Ben Fanning 2 3

I think leaders have a hard time humanizing themselves to every.

Ben Fanning 2 3

To the rest of the employees because they're put up on a pedestal.

Ben Fanning 2 3

They think, hey, my.

Ben Fanning 2 3

My CEOs on squawk box.

Ben Fanning 2 3

Like, how can that CEO relate to my life?

Dave Cody

Yeah.

Ben Fanning 2 3

And, you know, he's on tv, so those are two big challenges.

Ben Fanning 2 3

Right.

Ben Fanning 2 3

How did you think about communicating with 130, getting your message across to 130,000?

Ben Fanning 2 3

What might have you done differently?

Ben Fanning 2 3

I don't know, because there's many tools available.

Ben Fanning 2 3

And how do you think about this idea?

Ben Fanning 2 3

Is it important for leaders to humanize themselves?

Ben Fanning 2 3

Does it matter?

Ben Fanning 2 3

If so, you know, where do we take it?

Dave Cody

Yeah.

Dave Cody

With all my communication, there were two words that I always used when talking to my communications folks, HR people, and anybody else, and that's to be consistent and transparent.

Dave Cody

So on consistency, if you recall, we had our five initiatives, and our 12 behaviors didn't really change over the course of 16 years.

Dave Cody

It was the same in the 15th year as it was in the first year.

Dave Cody

We might modify the enablers a little bit as we grew, but by and large, same five initiatives, same 12 behaviors all the way through the transparency.

Dave Cody

I worked very hard, and this is maybe where the simplicity helps also at just being very transparent about things, because organizations get used to corporate speak, and they kind of look at it and go, okay, well, they're saying this, but, you know, they really mean this.

Ben Fanning 2 3

Right.

Ben Fanning 2 3

They're trying to translate that into something.

Ben Fanning 2 3

Yeah, yeah.

Dave Cody

Or they try to make it sound good or better or not as bad.

Dave Cody

And I always felt like, you know, the people can handle the truth.

Ben Fanning 2 3

The.

Dave Cody

The ones who can't handle the truth are usually the leaders in the company.

Dave Cody

And you need to be able to just be truthful with people.

Dave Cody

And if you recall, like during the great recession, when people would say, well, when is this going to end?

Dave Cody

Because, you know, they couldn't stand it.

Dave Cody

And I would say, I don't know and no one else does either.

Dave Cody

I'd be lying to you if I did.

Dave Cody

I only know this is what we need to be doing because it will end.

Dave Cody

And when it does, we're going to be the best prepared company out there.

Dave Cody

So I know this sucks right now.

Dave Cody

It sucks for me, too.

Dave Cody

Yes, okay, I get paid more, but it still sucks.

Dave Cody

I'm working harder than I ever did and it's not very rewarding, but this is what we have to do.

Dave Cody

And same thing, when I would visit a plant and you know, somebody would ask the question, well, what do you see as the future for this plant?

Dave Cody

And normally any business leader says something like, well, you know, it's going to be great because of this and this.

Dave Cody

And I would tell them, look, I don't really know.

Dave Cody

And quite honestly, it depends a lot more on you than it depends on me.

Dave Cody

Because if you provide the greatest quality, great delivery, new products, low cost, this plant will do very well.

Dave Cody

If you don't do that, then I'll probably have to find a way to shut it down and move it someplace else.

Dave Cody

And that's the facts.

Dave Cody

And people would sit out there nodding like, yeah, that makes sense.

Dave Cody

Yeah, exactly.

Dave Cody

So I worked very hard to just being very transparent about things and just tell them the truth.

Dave Cody

It's really surprising that it sounds very simple, but it works very well.

Dave Cody

The other one was, too many leaders, I think, go out and talk about their stock price to hourly people and others.

Dave Cody

And I always made the point that, yeah, okay, you know, they all got 401ks and that's good, but really they don't care about the stock price all that much.

Dave Cody

What they really care about is, am I going to have a job here five years from now?

Dave Cody

Is this plant going to continue to exist?

Dave Cody

What do I need to do in order to make sure this plant stays here?

Dave Cody

And just kind of recognizing that up front and saying, okay, I'm not going to do my corporate speak.

Dave Cody

I'm actually going to talk to them in a way about the things that are important to them.

Dave Cody

It just makes a difference.

Ben Fanning 2 3

It really does.

Ben Fanning 2 3

And I remember, I remember the lot of those town halls and you're like, this is not good for us.

Ben Fanning 2 3

Yeah, no one's enjoying a furlough land, but we're doing.

Ben Fanning 2 3

But you said, hey, we don't want to do a bunch of layoffs because I believe in the future of this company and we're going to need everybody to do this.

Dave Cody

Yep.

Dave Cody

And it didn't make people like it because, you know, I still got the time.

Ben Fanning 2 3

They weren't liking you very much either because you're like, like, I just, like, I don't like doing this.

Ben Fanning 2 3

But it was, but we were ready.

Dave Cody

Well, it worked.

Dave Cody

And like nobody liked it because I got, I could tell by all the anonymous notes that I'd get afterwards about what an idiot I was.

Dave Cody

And I was destroying the company and destroying people and say, yeah, yeah, yeah, okay, I know, I know, but I got the way I would often describe it as, look, I got two bad choices.

Dave Cody

I got to pick the least bad.

Ben Fanning 2 3

Yeah.

Ben Fanning 2 3

So how did you cope with that at the time?

Ben Fanning 2 3

Or you just sort of naturally maybe thick skinned and you're like, yeah, I'm so confident in this.

Ben Fanning 2 3

Like I got, I'm.

Ben Fanning 2 3

Let this roll off my back.

Ben Fanning 2 3

Or did you go home at night, feel like, man, my investors are ticked off at me, my employees are ticked off at me.

Ben Fanning 2 3

Life.

Dave Cody

Well, by the way, to complicate it, I was getting a divorce at the same time.

Dave Cody

So.

Ben Fanning 2 3

And that, okay, great.

Dave Cody

Yeah, so it was a miserable time and I couldn't tell anybody because then every decision I made, they'd be looking at it and going, oh, wait a minute, is this because, you know, he's emotionally crazy right now?

Dave Cody

I just kind of handled it myself.

Dave Cody

I said, oh, this is great.

Dave Cody

I'm going through this thing, I have nobody to talk to and I got to handle this great recession.

Dave Cody

And it was, I mean, it was just insane.

Dave Cody

And I can remember my.

Dave Cody

Well, I'll skip that one.

Dave Cody

It was just quite painful.

Dave Cody

But no, I looked at it and said, okay, I'm pretty confident I'm doing the right thing here.

Dave Cody

And then in the long run, this is going to be the right thing, even though I'm being second guessed by a lot of people.

Dave Cody

So I was pretty confident that I'd picked the right path and I was pretty confident the recession would end.

Dave Cody

And everybody was, you know, there was a lot of discussion about is this an L shaped recession where it's just the way it's going to be for the next 10 years.

Dave Cody

And I just didn't believe that.

Dave Cody

I said no.

Dave Cody

You know, with the exception of the Great Depression, which went on for 10 years largely because government kept shooting itself in the foot, I felt like the right things were being done and we weren't going to have a repeat of that.

Dave Cody

So I thought it was the right decision to make and obviously turned out to be the case.

Dave Cody

But, yeah, I had to have a certain self confidence in there because there was certainly nobody out there applauding me, going, hey, great decision, Dave.

Dave Cody

This is absolutely the right way to do it.

Ben Fanning 2 3

Yeah, I was.

Ben Fanning 2 3

I was 50.

Ben Fanning 2 3

50.

Ben Fanning 2 3

Like, I'm like, am I going to stay at Honeywell?

Ben Fanning 2 3

Like, I don't.

Ben Fanning 2 3

Is this.

Ben Fanning 2 3

Let me, like, you know, am I buying?

Ben Fanning 2 3

I was like, partly buying into what you're saying, but I was.

Ben Fanning 2 3

Everybody around me was.

Ben Fanning 2 3

Everybody's freaking out.

Ben Fanning 2 3

Glad you're glad I stuck it out so.

Dave Cody

Well, you're more honest with yourself than most people, if you're even willing to admit that, because, you know, in the aftermath, everybody is supportive in the while you're going through it a little less.

Ben Fanning 2 3

So, yeah, when you write the book and like, oh, it worked out great, but if it hadn't worked out, there might have been a book, you know.

Ben Fanning 2 3

But thinking about that, I'm just thinking about, you know, as a leader and some of the tools that you share in your book.

Ben Fanning 2 3

Book one, you have your blue book days, right?

Ben Fanning 2 3

You have X days or blue book sessions right in the X days.

Ben Fanning 2 3

And I'm thinking about other leaders out there who are facing tough times and tough decisions.

Ben Fanning 2 3

What were you doing as a personal leader to help you maintain your confidence and your sense of clarity when you're probably getting feedback for a lot of people?

Ben Fanning 2 3

What were you relying on at the time?

Dave Cody

Yeah, I think some of this goes back to what you were talking about at the very beginning is the ability to just simplify the message and say, okay, given everything that's going on, what's my path here?

Dave Cody

Which is the same thing as developing a simple message.

Dave Cody

It's being able to pull all this together in a way that says, okay, so here's what I have to do in terms of maintaining my own equanimity.

Dave Cody

You know, it may sound simple, but working out at night helps.

Dave Cody

Helped me a lot, is because I'd get teed up during the course of the day and I'd do a vigorous workout at the end of the end of the day, lifting weights or the bike or the StairMaster.

Ben Fanning 2 3

Did you have a trainer at the time or how are you?

Dave Cody

No, I just did this myself.

Dave Cody

And as you know, we had a good gym at Honeywell, so I would just make sure that I worked out pretty hard so that it was almost impossible not to go to sleep by the time I got.

Dave Cody

I got Home.

Dave Cody

So I always slept very well and I felt I was doing the right stuff.

Dave Cody

So I did.

Dave Cody

I really didn't worry about it all that much.

Dave Cody

I felt pretty confident that I was doing the right stuff.

Ben Fanning 2 3

Yeah, it's really good for leaders to know, too.

Ben Fanning 2 3

One of the most intense periods of your life and you're working out.

Ben Fanning 2 3

Right.

Ben Fanning 2 3

People get so busy.

Dave Cody

I found it was essential for me.

Dave Cody

And there were times, the fitness center, I didn't leave till 9:00 and as you know, they closed at 8:30.

Dave Cody

But that was when I was getting my time in.

Dave Cody

And by God, I was going to get my time in.

Ben Fanning 2 3

Radio it down.

Ben Fanning 2 3

Cody's coming down to work out.

Ben Fanning 2 3

Keep it the work.

Ben Fanning 2 3

No, I remember people saying, I saw Dave and they're working out.

Dave Cody

Yeah, I tried to do it pretty regularly, even on the DID people.

Ben Fanning 2 3

So I don't.

Ben Fanning 2 3

I think today a lot of leaders, they don't want to work out where their employees are going to be working out.

Ben Fanning 2 3

Did you have any awkward.

Dave Cody

I liked it because people would come up and talk to me or wave.

Dave Cody

I mean, it was, it was.

Dave Cody

I liked it.

Dave Cody

It was.

Dave Cody

It was fun.

Ben Fanning 2 3

Yeah.

Ben Fanning 2 3

Well, what.

Ben Fanning 2 3

How do you, how do you see that today with leaders?

Dave Cody

See, in general, I liked my employees and I mean, I would even do stuff like the security guards.

Dave Cody

And you know, when people drive into the plant and there are certain.

Dave Cody

Sometimes security guards really kind of look at their job as they're the tough guys.

Dave Cody

They gotta, you know, make sure that somebody's got their ticket in the window and they kind of wave them in almost imperiously.

Dave Cody

And I didn't like that.

Dave Cody

So in any plant that I was involved with, including at the headquarters, they had directions that I expected them to smile and wave to employees as they came in because I said, you need to be doing the, you know, checking.

Dave Cody

But I want people to feel like we want them there and that we're happy to see them.

Dave Cody

And I was, you know, I always felt like, you know, I work with a bunch of good people.

Dave Cody

This is fun.

Dave Cody

I enjoy working with them.

Dave Cody

I don't want them to.

Dave Cody

Their first introduction to Honeywell when they drive in in the morning is this imperious looking guard.

Dave Cody

I want them to see a guard who's smiling and waves at them.

Dave Cody

And it's like, I'm happy you're here.

Dave Cody

You want to get along with your employees.

Dave Cody

You're all in the same boat.

Dave Cody

And I didn't get along with all of them all the time because, as you know, we had some various issues in various plants where I had to take a much tougher stance than I would normally because I always felt like I'm going to be fair to employees, but they need to be fair to me too.

Dave Cody

And if they weren't being fair, well, I had no problem going in the other direction.

Dave Cody

But I always felt that sense of fairness was important.

Ben Fanning 2 3

Love that.

Ben Fanning 2 3

And all right.

Ben Fanning 2 3

So man, I can talk to Dave Cody all day long.

Ben Fanning 2 3

I know you guys have to do.

Ben Fanning 2 3

We got things to move all with here.

Ben Fanning 2 3

So I'm just going to turn over a few second what do you what's your parting thought for our Lead the Team listeners?

Dave Cody

I'm assuming that most of them are in business of some kind.

Dave Cody

And I would just say I looked at business as if you're at all competitive.

Dave Cody

It is the most fun game you will play in your entire life because it just keeps going on and on.

Dave Cody

It's very complex.

Dave Cody

And winning is just fun.

Dave Cody

You know, being able to beat your competitors is just fun.

Dave Cody

The other point that I'd like to leave everybody with when it comes to business is there's a lot of vilification of business in at least American society and probably in the Western world nowadays, when the reality is business has been the biggest force for good and for improving people's standard of living in the history of the world.

Dave Cody

And it's because business is the source of productivity.

Dave Cody

Productivity is the source of standard of living.

Dave Cody

And one of the reasons we live so well in the US is because we're more productive than almost any other country.

Dave Cody

And that comes from business.

Dave Cody

Now government creates a backdrop where businesses can be productive.

Dave Cody

And it's not that everything business does is good.

Dave Cody

You get, if you've got hundreds of thousands of companies, you're always going to have somebody who's doing something wrong.

Dave Cody

But by and large it is the biggest force for good that the world has ever seen.

Dave Cody

And people should feel good about being in business.

Dave Cody

It's a, it's a good thing.

Dave Cody

This, this improves people.

Dave Cody

We improve people's lives.

Ben Fanning 2 3

What a great note, optimistic note to finish on and a great just perspective to approach your workday.

Ben Fanning 2 3

Feel good about what you're doing.

Ben Fanning 2 3

The, you know, the roots of it, the productivity, the impact and to share that message with your team.

Ben Fanning 2 3

Dave, thank you for coming on Lead the team and we're going to have you on again for your third.

Dave Cody

Well, thank you Ben.

Dave Cody

You're very kind and thank you for having been a part of it.

Ben Fanning

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Ben Fanning

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Ben Fanning

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Ben Fanning

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