I look at business as if you're at all competitive.
Dave CodyIt is the most fun game you will play in your entire life.
Dave CodyIt just keeps going on and on.
Dave CodyIt's very complex and winning is just fun.
Dave CodyBusiness has been the biggest force for good and for improving people's standard of living in the history of the world.
Dave CodyAnd it's because business is the source of productivity.
Dave CodyProductivity is the source of standard of living and people should feel good about being in business.
Dave CodyWe improve people's lives.
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Ben Fanning 2Welcome back to lead the team with number one best selling author and in demand corporate trainer Ben Fanning.
Ben Fanning 2On 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 2Let's get started.
Ben Fanning 2Here's Ben.
Ben Fanning 2 3Hey there.
Ben Fanning 2 3Welcome back to Lead the Team y'all.
Ben Fanning 2 3A 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 3He grew the company's capitalization back in the day from 20 billion to 120 billion.
Ben Fanning 2 3I was there in Honeywell for that amazing ride.
Ben Fanning 2 3He's currently the Executive Chairman over at Vertiv Holdings.
Ben Fanning 2 3He 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 3And 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 3He'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 3And now he's recently released how to be a leader 15 minutes a day to establish communication, resilience, creativity and humility.
Ben Fanning 2 3It may be his best accolade.
Ben Fanning 2 3Well, at least in my mind.
Ben Fanning 2 3He was actually interview number four only the team back in 2020 and we've just released 332.
Ben Fanning 2 3So he's been a real Inspiration here to our show.
Ben Fanning 2 3Help us keep going.
Ben Fanning 2 3Dave, welcome back to lead the team.
Dave CodyOh, you're very kind, Ben.
Dave CodyI'd have to say the only thing I would modify.
Dave CodyYes, that Vertiv.
Dave CodyI'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 3Oh my gosh.
Ben Fanning 2 3Well, thanks for the call to join Vertive, Dave.
Ben Fanning 2 3Wow.
Dave CodyYeah, so it's not so bad.
Ben Fanning 2 3So I want to spend some time talking about the Honeywell days because I love talking about that.
Ben Fanning 2 3But you since, well you were there.
Dave CodyFor part of it, so yeah, I love it.
Ben Fanning 2 3But 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 3So let's talk about that.
Dave CodyWell, my family just bought a majority interest in a NASDAQ listed company called Composecure that makes metal credit cards.
Dave CodyAnd first thought from anybody and that was including me, was metal credit cards.
Dave CodyHow hard is that?
Dave CodyWell, what you end up finding is it actually is pretty complicated and there's a lot of technology required for it.
Dave CodyIt'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 CodySo it actually is a lot more complicated in the technology than people realize.
Dave CodyAnd 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 CodyThere'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 CodyYeah, it's like a typical plastic credit card except it's metal.
Dave CodySo it's just a little, a little heavier and it kind of, it's a brand distinction.
Ben Fanning 2 3Okay.
Ben Fanning 2 3And so what are you, are these sold through like true.
Ben Fanning 2 3Like people think about Visa, they think about American Express, things like typical banks.
Dave CodySo.
Dave CodyOr credit card companies.
Dave CodySo in this case American Express and JP Morgan Chase are big customers.
Dave CodyOther 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 CodyThey 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 CodyThere's a brand distinction to it.
Dave CodyIt's like having a Gucci bag.
Dave CodyIt does the same thing.
Dave CodyLouis Vuitton.
Ben Fanning 2 3Well, when you.
Ben Fanning 2 3First of all, you say Louis Vuitton way better than I can well actually.
Dave CodyRecall I spoke French before I spoke English as a kid.
Ben Fanning 2 3The.
Dave CodyI grew up in this little French Canadian enclave in New Hampshire.
Dave CodyAnd I mean, there were there.
Dave CodyI spoke French before I spoke English, and I.
Dave CodyI've lost most of it.
Dave CodyWhatever I have now is vestigial, but it was.
Dave CodyYou do retain some of the pronunciation.
Ben Fanning 2 3Well, when you flew to France to negotiate Honeywell Aerospace deals, were you speaking French?
Dave CodyI am nowhere near good enough to be able to do that either to negotiate an aerospace deal or to do it in French.
Dave CodyEither one.
Ben Fanning 2 3Okay.
Ben Fanning 2 3Either one.
Ben Fanning 2 3Oh, God.
Ben Fanning 2 3This is.
Ben Fanning 2 3This is going to be a fellow.
Dave CodyAll right.
Ben Fanning 2 3And so again, we're kind of going reverse.
Ben Fanning 2 3Okay.
Ben Fanning 2 3So you're like, okay, hey, there's this interesting credit card opportunity.
Ben Fanning 2 3I'm doing that.
Ben Fanning 2 3And then.
Ben Fanning 2 3And then you're.
Ben Fanning 2 3You really jumped all in with a Vertive after leaving Honeywell.
Ben Fanning 2 3What have y'all been up to?
Ben Fanning 2 3An avertive.
Ben Fanning 2 3And what's.
Ben Fanning 2 3What's been driving the growth over there for you?
Dave CodyWell, in both cases, so.
Dave CodyWell, 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 CodyAnd that's that I always look for what I call my Honeywell hot buttons.
Dave CodyAnd it's six items.
Dave CodyIs it a great position?
Dave CodyIs it a good industry?
Dave CodyCan you differentiate with technology, can you grow sales more aggressively, organically?
Dave CodyIs there an opportunity to grow inorganically?
Dave CodyThat is acquisitions.
Dave CodyAnd six, can I expand margins?
Dave CodyAnd 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 CodyThen in doing the Vertiv deal, that hit all six of those hot buttons.
Dave CodyAnd I was convinced data centers were going to be fundamental to the digital age.
Dave CodyAnd it was an underappreciated asset and obviously proves we were right.
Dave CodyAnd I look at Compose Secure and say, it is the same thing.
Dave CodyThis is an underappreciated asset, and the cash it generates is going to enable significant acquisitions that nobody's even really contemplating yet.
Dave CodySo it's the same thing.
Dave CodyIt's the same kind of Mentality or strategy that was in the book.
Dave CodyAnd it's just we continue to apply it pretty, pretty aggressively.
Ben Fanning 2 3Yeah.
Ben Fanning 2 3So cool.
Ben Fanning 2 3So you got introverted though, before AI was popping on the radar.
Ben Fanning 2 3Is this something that was in your, like your crystal ball that you were thinking, or.
Ben Fanning 2 3I don't.
Dave CodyWell, I wish my crystal ball was that good.
Dave CodySo, 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 CodyAnd everybody kept talking about how data grows at 20% a year.
Dave CodyAnd 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 CodyAnd 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 CodyAnd 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 CodyAnd 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 CodySaid, okay, well what new mitigating factors are either in this?
Dave CodyWell, we don't see any.
Dave CodySo at some point, data center growth has to approximate data growth.
Dave CodyYes.
Dave CodyOkay.
Dave CodyI said, well, that sounds like basis for a pretty darn good industry to me.
Dave CodyAnd oddly enough, no one had ever asked that question.
Dave CodyNo consultant, no one else.
Dave CodySo 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 CodyAnd the growth in the business started way before, a couple of years before AI became a phenomenon.
Dave CodyAnd it's just fundamental to the digital age.
Dave CodyThe data centers, there's no.
Dave CodyWe're, we're, you know, we had the agricultural age, the industrial age, now we're in the digital age.
Dave CodyI 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 CodyLike, there's something unique to that.
Dave CodyThe reality is we're 30, 40 years into a new era, the digital age.
Dave CodyAnd fundamental to that is the data center.
Dave CodyAnd that, that's what, that's what I liked about it.
Dave CodyAnd you probably saw, I mean, I was writing about this in Honeywell about two major 21st century trends.
Dave CodyAnd one was going to be the digital age, the second is bioengineering.
Dave CodyAnd those two are going to meld together more in the future.
Dave CodyThose are, that's still true.
Dave CodyAnd that was for me was fundamental to investing in vertiv.
Ben Fanning 2 3I 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 CodyYeah, 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 3Yeah.
Ben Fanning 2 3So there was a substantial turning point with the vision and the people like really kicking off a new age for Honeywell.
Dave CodyCorrect.
Dave CodyBecause I felt that the digital age was going to have a big impact on us.
Dave CodyAnd we had an advantage because we had domain knowledge which is going to be significant in industrial applications.
Dave CodyAnd by combining that domain knowledge with software expertise, we would have something nobody else did.
Dave CodyAnd that's proven to be true.
Ben Fanning 2 3So 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 3And 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 3And I'm just questioning it.
Ben Fanning 2 3And 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 3Is 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 CodyYeah, 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 CodyAnd 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 CodyOkay.
Dave CodyYou know a lot, but you don't really know how the whole thing works, the process or the industry.
Dave CodyAnd 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 CodyAnd I'd say just various things I've read over time have kind of reinforced how important that is.
Dave CodySo it's a Skill, I guess I've got.
Dave CodyAnd it's just been reinforced over time.
Dave CodyAnd I remember being struck by book cat's cradle.
Dave CodyAnd that was a big.
Dave CodyI think it was Kurt Vonnegut and being struck by how simplicity mattered in terms of being able to explain anything.
Dave CodyAnd others who had written that if you can't explain it simply, it means you don't understand it.
Dave CodyAnd I've often thought that made a lot of sense.
Dave CodySo I'd say it was something that was natural in me.
Dave CodyBut I've gotten enough reinforcement out of other stuff I've read that said.
Dave CodyYeah, I'm going to keep doing that because it helps me to understand something.
Ben Fanning 2 3You 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 3Charter 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 3And I, I mean it's really incredible story there.
Ben Fanning 2 3I didn't know if your family was just very.
Ben Fanning 2 3Just blunt and to the point, like, Dave, don't over complicated or, or what.
Ben Fanning 2 3But it sounds like you just.
Ben Fanning 2 3You got inspired for simplicity as you went along.
Dave CodyYeah, I, I can't say that it was, it was not.
Dave CodyI mean, there were certain things in my family that were.
Dave CodyTalked about a lot.
Dave CodyYou know, like I've.
Dave CodyI've said be a leader, not a follower, that sort of thing.
Dave CodyBut the ability to explain things simply.
Dave CodyI 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 CodyCody, if you can keep doing this.
Dave CodyAnd same thing in college.
Dave CodyI can remember having a finance course and participation was 25% of the grade.
Dave CodyAnd I can remember the teacher, the professor calling on me and saying, and what seems to be the issue here?
Dave CodyAnd 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 CodyAnd he was used to these like long paragraphs that would go on.
Dave CodyAnd he just hesitated a moment and he said, if you can keep doing that, you'll do very well in your career.
Dave CodyAnd I was kind of shocked by it at the time, like, oh, wow.
Dave CodyNot sure what just happened here, but I was just saying what it is.
Dave CodyI said, I feel like I'm bragging, but it was kind of resident in me.
Dave CodyAnd it's been very handy.
Ben Fanning 2 3Yeah.
Ben Fanning 2 3And it's, it is cool to think from a teacher standpoint how early teachers highlighting what you were doing.
Ben Fanning 2 3Well, stuck with you alive.
Ben Fanning 2 3They're like, hey, I want to keep doing that.
Ben Fanning 2 3Seeking.
Dave CodyIt probably was a reinforcement.
Dave CodyI didn't even think about it at the time.
Dave CodyIt was just kind of who I was.
Dave CodyBut it probably was a reinforcement because they still remember it just 50 years ago.
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Ben Fanning 2 3So what, what other early experience or mentors shaped your leadership philosophy and perhaps the way that you approach challenges?
Ben Fanning 2 3Because you've had some doozies that I've read about.
Ben Fanning 2 3Pick any of those or any other ones that you.
Dave CodyYeah, there, there's been a number of them.
Dave CodyThey, they pop up time to time.
Dave CodyAnd my wife always says she finds it interesting that somebody will walk in and say, you know, the markets are crashing 40%.
Dave CodyAnd I just kind of sit there and go, okay, well, this is probably what we need to do.
Dave CodySo I very calmly work my way through it.
Dave CodyBut 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 CodyThe big stuff doesn't bother me, but the petty irritations drive me nuts.
Dave CodyThe primary mentors I had really were my mom and dad.
Dave CodyAnd 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 CodyAnd yeah, there was a lot to learn from that in terms of don't blame others.
Dave CodyFigure out what the problem is and address it yourself.
Dave CodyDon't blame other people for your problems.
Dave CodyDon't be.
Dave CodyI didn't say it this way, but it was don't be a victim.
Dave CodyYou've got to figure out stuff for yourself.
Dave CodyYou've got to be able to take care of yourself.
Dave CodyBe a leader, not a follower.
Dave CodyDon't be dependent on others.
Dave CodyRemember 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 CodyThey'd say, he can't pay his bills.
Dave CodyAnd 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 CodyWorking your way out of a crisis.
Dave CodyI mean, my parents were encouraged at one point to declare bankruptcy because they'd gone into chicken farming for eggs.
Dave CodyAnd it was a disaster, as my dad said, that his chickens laid one egg and flooded the market.
Dave CodyAnd they refused to do it.
Dave CodyThey wouldn't do it.
Dave CodyMy mom ended up getting a job, even with five kids got a job.
Dave CodyAnd they worked hard to pay off everything because for them, it was a mark of pride that you didn't go bankrupt.
Dave CodyYou found a way to pay all your bills.
Dave CodyThat 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 CodyYou figure it out.
Dave CodyYou work hard to figure it out.
Dave CodyAnd they were.
Dave CodyYou could tell.
Dave CodyI mean, the two of them were quite influential in, I think, my outlook on life.
Dave CodyAnd 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 3So cool.
Ben Fanning 2 3And I was just thinking about Honeywell and how much cash we have, you.
Dave CodyKnow, not when I started.
Ben Fanning 2 3Well, no, you built it like you.
Ben Fanning 2 3You prioritize cash in the bank, and then you have, you know, identified opportunities.
Dave CodyYeah, I still do, no matter where I am.
Dave CodyI have this line that I use a lot that just says cash is flexibility.
Dave CodyAnd you.
Dave CodyYou can't.
Dave CodyYou can't run your life or your business so tight that you don't have flexibility.
Dave CodyPlus, I.
Dave CodyI wouldn't be able to sleep at night.
Dave CodyThat's just not how I want to live my life.
Ben Fanning 2 3I find myself very aligned to that.
Ben Fanning 2 3I 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 3And I thought about his flexibility, but it makes sense.
Dave CodyOh, yeah.
Ben Fanning 2 3And it creates opportunity because you may see the market, you may see changes in the environment, and that creates opportunity.
Ben Fanning 2 3If you had cash available, you can act.
Ben Fanning 2 3And Honeywell did that time.
Ben Fanning 2 3Yeah, time and time again.
Ben Fanning 2 3I'm curious, with your, like, family, with your children, right?
Ben Fanning 2 3You.
Ben Fanning 2 3You.
Ben Fanning 2 3You grew up in a much different situation than your kids.
Ben Fanning 2 3How do you think about or how did you think about infusing this minds or talking to them about, you know, this.
Ben Fanning 2 3This mentality.
Dave CodyNo, that's.
Dave CodyYou're exactly right.
Dave CodyAnd 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 CodyMy sons have actually done well.
Dave CodySo that's adding to it.
Dave CodyAnd 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 CodyBecause they're going to inherit money.
Dave CodyAnd inheriting money without values is just the road to perdition.
Dave CodyAnd everybody talks about how money ruins kids.
Dave CodyAnd I'd say yes and no.
Dave CodyIf they're predisposed to being ruined, whether they have money or not is probably not going to matter.
Dave CodyBut.
Dave CodyAnd there's some that are going to just, you know, be intense and want to work anyway.
Dave CodyYou'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 CodyThe first one's family responsibility.
Dave CodyAnother is integrity, the ability to think independently, focusing on your personal growth, taking the time to enjoy your life.
Dave CodyWe've got a number of these things laid out that everybody in the family bought into.
Dave CodyIt took us almost two years to kind of work the wording and get to the point where we said, okay, this is.
Dave CodyThis is how we want every generation to be able to act.
Dave CodyAnd I think it's going to make a difference.
Dave CodyCertainly it has with.
Dave CodyWithout having it written down, did with my two sons.
Dave CodyAnd I think it's going to continue to work because I see how they're raising their kids.
Ben Fanning 2 3Interesting to hear that.
Ben Fanning 2 3I think a lot of leaders spend a lot of time thinking of their company values.
Ben Fanning 2 3But it's interesting when you begin to translate what makes sense for family.
Ben Fanning 2 3How do we.
Ben Fanning 2 3And also it's interesting for think about not just your immediate family, but future generations.
Ben Fanning 2 3And 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 CodyYeah.
Dave CodyAnd 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 CodyAnd we all had the same idea.
Dave CodySo it's like, we all got three versions of it, so it meant something to.
Dave CodyTo everybody.
Ben Fanning 2 3So everyone got three versions of it.
Ben Fanning 2 3Well done.
Ben Fanning 2 3All right, so.
Ben Fanning 2 3So I guess something worked there.
Dave CodyYeah.
Dave CodyResonated.
Ben Fanning 2 3Yeah, that's good.
Ben Fanning 2 3No, that's cool.
Ben Fanning 2 3That.
Ben Fanning 2 3That is really cool.
Ben Fanning 2 3Now thinking about or kind of all the communication idea and mind the podcasting.
Ben Fanning 2 3You know, we're really focused on this with companies, and I find that a lot of leaders have.
Ben Fanning 2 3Have this challenge, and I want to get your.
Ben Fanning 2 3One is they've got a lot of employees.
Ben Fanning 2 3They're remote.
Ben Fanning 2 3They need to get a message across.
Ben Fanning 2 3They don't understand maybe the value, the message, the company or things that need to change.
Ben Fanning 2 3They got to get their message across.
Ben Fanning 2 3Employees are a lot of different places.
Ben Fanning 2 3You had 130,000, 130, 1000.
Ben Fanning 2 3And also there's this element of.
Ben Fanning 2 3I think leaders have a hard time humanizing themselves to every.
Ben Fanning 2 3To the rest of the employees because they're put up on a pedestal.
Ben Fanning 2 3They think, hey, my.
Ben Fanning 2 3My CEOs on squawk box.
Ben Fanning 2 3Like, how can that CEO relate to my life?
Dave CodyYeah.
Ben Fanning 2 3And, you know, he's on tv, so those are two big challenges.
Ben Fanning 2 3Right.
Ben Fanning 2 3How did you think about communicating with 130, getting your message across to 130,000?
Ben Fanning 2 3What might have you done differently?
Ben Fanning 2 3I don't know, because there's many tools available.
Ben Fanning 2 3And how do you think about this idea?
Ben Fanning 2 3Is it important for leaders to humanize themselves?
Ben Fanning 2 3Does it matter?
Ben Fanning 2 3If so, you know, where do we take it?
Dave CodyYeah.
Dave CodyWith 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 CodySo 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 CodyIt was the same in the 15th year as it was in the first year.
Dave CodyWe 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 CodyI 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 3Right.
Ben Fanning 2 3They're trying to translate that into something.
Ben Fanning 2 3Yeah, yeah.
Dave CodyOr they try to make it sound good or better or not as bad.
Dave CodyAnd I always felt like, you know, the people can handle the truth.
Ben Fanning 2 3The.
Dave CodyThe ones who can't handle the truth are usually the leaders in the company.
Dave CodyAnd you need to be able to just be truthful with people.
Dave CodyAnd if you recall, like during the great recession, when people would say, well, when is this going to end?
Dave CodyBecause, you know, they couldn't stand it.
Dave CodyAnd I would say, I don't know and no one else does either.
Dave CodyI'd be lying to you if I did.
Dave CodyI only know this is what we need to be doing because it will end.
Dave CodyAnd when it does, we're going to be the best prepared company out there.
Dave CodySo I know this sucks right now.
Dave CodyIt sucks for me, too.
Dave CodyYes, okay, I get paid more, but it still sucks.
Dave CodyI'm working harder than I ever did and it's not very rewarding, but this is what we have to do.
Dave CodyAnd 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 CodyAnd normally any business leader says something like, well, you know, it's going to be great because of this and this.
Dave CodyAnd I would tell them, look, I don't really know.
Dave CodyAnd quite honestly, it depends a lot more on you than it depends on me.
Dave CodyBecause if you provide the greatest quality, great delivery, new products, low cost, this plant will do very well.
Dave CodyIf you don't do that, then I'll probably have to find a way to shut it down and move it someplace else.
Dave CodyAnd that's the facts.
Dave CodyAnd people would sit out there nodding like, yeah, that makes sense.
Dave CodyYeah, exactly.
Dave CodySo I worked very hard to just being very transparent about things and just tell them the truth.
Dave CodyIt's really surprising that it sounds very simple, but it works very well.
Dave CodyThe other one was, too many leaders, I think, go out and talk about their stock price to hourly people and others.
Dave CodyAnd 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 CodyWhat they really care about is, am I going to have a job here five years from now?
Dave CodyIs this plant going to continue to exist?
Dave CodyWhat do I need to do in order to make sure this plant stays here?
Dave CodyAnd just kind of recognizing that up front and saying, okay, I'm not going to do my corporate speak.
Dave CodyI'm actually going to talk to them in a way about the things that are important to them.
Dave CodyIt just makes a difference.
Ben Fanning 2 3It really does.
Ben Fanning 2 3And I remember, I remember the lot of those town halls and you're like, this is not good for us.
Ben Fanning 2 3Yeah, no one's enjoying a furlough land, but we're doing.
Ben Fanning 2 3But 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 CodyYep.
Dave CodyAnd it didn't make people like it because, you know, I still got the time.
Ben Fanning 2 3They weren't liking you very much either because you're like, like, I just, like, I don't like doing this.
Ben Fanning 2 3But it was, but we were ready.
Dave CodyWell, it worked.
Dave CodyAnd 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 CodyAnd 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 CodyI got to pick the least bad.
Ben Fanning 2 3Yeah.
Ben Fanning 2 3So how did you cope with that at the time?
Ben Fanning 2 3Or you just sort of naturally maybe thick skinned and you're like, yeah, I'm so confident in this.
Ben Fanning 2 3Like I got, I'm.
Ben Fanning 2 3Let this roll off my back.
Ben Fanning 2 3Or 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 3Life.
Dave CodyWell, by the way, to complicate it, I was getting a divorce at the same time.
Dave CodySo.
Ben Fanning 2 3And that, okay, great.
Dave CodyYeah, 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 CodyI just kind of handled it myself.
Dave CodyI said, oh, this is great.
Dave CodyI'm going through this thing, I have nobody to talk to and I got to handle this great recession.
Dave CodyAnd it was, I mean, it was just insane.
Dave CodyAnd I can remember my.
Dave CodyWell, I'll skip that one.
Dave CodyIt was just quite painful.
Dave CodyBut no, I looked at it and said, okay, I'm pretty confident I'm doing the right thing here.
Dave CodyAnd 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 CodySo I was pretty confident that I'd picked the right path and I was pretty confident the recession would end.
Dave CodyAnd 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 CodyAnd I just didn't believe that.
Dave CodyI said no.
Dave CodyYou 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 CodySo I thought it was the right decision to make and obviously turned out to be the case.
Dave CodyBut, 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 CodyThis is absolutely the right way to do it.
Ben Fanning 2 3Yeah, I was.
Ben Fanning 2 3I was 50.
Ben Fanning 2 350.
Ben Fanning 2 3Like, I'm like, am I going to stay at Honeywell?
Ben Fanning 2 3Like, I don't.
Ben Fanning 2 3Is this.
Ben Fanning 2 3Let me, like, you know, am I buying?
Ben Fanning 2 3I was like, partly buying into what you're saying, but I was.
Ben Fanning 2 3Everybody around me was.
Ben Fanning 2 3Everybody's freaking out.
Ben Fanning 2 3Glad you're glad I stuck it out so.
Dave CodyWell, 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 3So, 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 3But 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 3Book one, you have your blue book days, right?
Ben Fanning 2 3You have X days or blue book sessions right in the X days.
Ben Fanning 2 3And I'm thinking about other leaders out there who are facing tough times and tough decisions.
Ben Fanning 2 3What 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 3What were you relying on at the time?
Dave CodyYeah, 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 CodyWhich is the same thing as developing a simple message.
Dave CodyIt'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 CodyYou know, it may sound simple, but working out at night helps.
Dave CodyHelped 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 3Did you have a trainer at the time or how are you?
Dave CodyNo, I just did this myself.
Dave CodyAnd 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 CodyI got Home.
Dave CodySo I always slept very well and I felt I was doing the right stuff.
Dave CodySo I did.
Dave CodyI really didn't worry about it all that much.
Dave CodyI felt pretty confident that I was doing the right stuff.
Ben Fanning 2 3Yeah, it's really good for leaders to know, too.
Ben Fanning 2 3One of the most intense periods of your life and you're working out.
Ben Fanning 2 3Right.
Ben Fanning 2 3People get so busy.
Dave CodyI found it was essential for me.
Dave CodyAnd there were times, the fitness center, I didn't leave till 9:00 and as you know, they closed at 8:30.
Dave CodyBut that was when I was getting my time in.
Dave CodyAnd by God, I was going to get my time in.
Ben Fanning 2 3Radio it down.
Ben Fanning 2 3Cody's coming down to work out.
Ben Fanning 2 3Keep it the work.
Ben Fanning 2 3No, I remember people saying, I saw Dave and they're working out.
Dave CodyYeah, I tried to do it pretty regularly, even on the DID people.
Ben Fanning 2 3So I don't.
Ben Fanning 2 3I 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 3Did you have any awkward.
Dave CodyI liked it because people would come up and talk to me or wave.
Dave CodyI mean, it was, it was.
Dave CodyI liked it.
Dave CodyIt was.
Dave CodyIt was fun.
Ben Fanning 2 3Yeah.
Ben Fanning 2 3Well, what.
Ben Fanning 2 3How do you, how do you see that today with leaders?
Dave CodySee, in general, I liked my employees and I mean, I would even do stuff like the security guards.
Dave CodyAnd you know, when people drive into the plant and there are certain.
Dave CodySometimes security guards really kind of look at their job as they're the tough guys.
Dave CodyThey gotta, you know, make sure that somebody's got their ticket in the window and they kind of wave them in almost imperiously.
Dave CodyAnd I didn't like that.
Dave CodySo 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 CodyBut I want people to feel like we want them there and that we're happy to see them.
Dave CodyAnd I was, you know, I always felt like, you know, I work with a bunch of good people.
Dave CodyThis is fun.
Dave CodyI enjoy working with them.
Dave CodyI don't want them to.
Dave CodyTheir first introduction to Honeywell when they drive in in the morning is this imperious looking guard.
Dave CodyI want them to see a guard who's smiling and waves at them.
Dave CodyAnd it's like, I'm happy you're here.
Dave CodyYou want to get along with your employees.
Dave CodyYou're all in the same boat.
Dave CodyAnd 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 CodyAnd if they weren't being fair, well, I had no problem going in the other direction.
Dave CodyBut I always felt that sense of fairness was important.
Ben Fanning 2 3Love that.
Ben Fanning 2 3And all right.
Ben Fanning 2 3So man, I can talk to Dave Cody all day long.
Ben Fanning 2 3I know you guys have to do.
Ben Fanning 2 3We got things to move all with here.
Ben Fanning 2 3So 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 CodyI'm assuming that most of them are in business of some kind.
Dave CodyAnd I would just say I looked at business as if you're at all competitive.
Dave CodyIt is the most fun game you will play in your entire life because it just keeps going on and on.
Dave CodyIt's very complex.
Dave CodyAnd winning is just fun.
Dave CodyYou know, being able to beat your competitors is just fun.
Dave CodyThe 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 CodyAnd it's because business is the source of productivity.
Dave CodyProductivity is the source of standard of living.
Dave CodyAnd one of the reasons we live so well in the US is because we're more productive than almost any other country.
Dave CodyAnd that comes from business.
Dave CodyNow government creates a backdrop where businesses can be productive.
Dave CodyAnd it's not that everything business does is good.
Dave CodyYou get, if you've got hundreds of thousands of companies, you're always going to have somebody who's doing something wrong.
Dave CodyBut by and large it is the biggest force for good that the world has ever seen.
Dave CodyAnd people should feel good about being in business.
Dave CodyIt's a, it's a good thing.
Dave CodyThis, this improves people.
Dave CodyWe improve people's lives.
Ben Fanning 2 3What a great note, optimistic note to finish on and a great just perspective to approach your workday.
Ben Fanning 2 3Feel good about what you're doing.
Ben Fanning 2 3The, you know, the roots of it, the productivity, the impact and to share that message with your team.
Ben Fanning 2 3Dave, thank you for coming on Lead the team and we're going to have you on again for your third.
Dave CodyWell, thank you Ben.
Dave CodyYou're very kind and thank you for having been a part of it.
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