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The End of Tourism
S6 #4 | Radicalismo Rigido y el Algoritmo | alF Bojorquez

The End of Tourism

Play Episode Listen Later Apr 11, 2025 68:39


En este episodio, mi invitada es Alf Bojórquez, novelista y ensayista yucateca. Su primera novela, Pepitas de calabaza (2023) salió en la editorial Fondo Blanco. Se segundo libro, No existe dique capaz de contener al océano furioso. Potencia, alegría y anarquismo, apareció hace unos meses. Fue ganadora del premio Moving Narratives (2024) de Prince Claus Fund y el British Council. Ha hecho giras en América Latina, Europa, Estados Unidos, Marruecos y Filipinas haciendo lecturas de su obra y dando talleres sobre narrativa, arte y teoría crítica. Tiene un programa de radio sobre lo mismo que se puede escuchar gratis en cualquier aplicación de podcasts: Un sueño largo, ancho y hondo. Ha colaborado con varios colectivos y organizaciones abajo y a la izquierda.Notas del Episodio* La traduccion de Joyful Militancy a Militancia Alegre* Diferencias en el radicalismo rigido entre norte y sur* Recuperando la miltancia y el contexto contemporaneo en militancia alegre* Tejiendo a la Organización Revolucionaria* La perdida de propiedad comunal en Mexico y la llegada del turismo* Las redes sociales como una arma del imperio* La imagen y la gestion, el usuario y el premio* Contraturismo como peregrinajeTarea* Pagina profesional - Instagram* Un sueño largo, ancho y hondo - Instagram* No existe dique capaz de contener al océano furioso - Volcana - Polilla - Utopicas - Traficantes de Suenos - Novedades don Gregorio (OAX)* Militancia alegre: Tejer Resistencias, florecer en tiempos toxicas* Pepitas de calabazaTranscripcion en espanol (English Below)Chris: [00:00:00] Bienvenida al podcast El Fin del Turismo, Alf. Un placer hablar contigo hoy. Alf: Ajá. Chris: Este me gustaría empezar preguntándote donde te encuentras hoy y cómo se ve el mundo a través de tus ojos? Alf: Este hoy me encuentro en mi cocina. Desde ahí trabajo yo. En la ciudad de México, en una colonia se llama Iztaccihuatl. Cómo se ve el mundo? Pues mira, yo no tengo una vista tan mala. Este no es un edificio grande, pero tengo una vista linda, no? O sea, no me tapa la vista otro edificio ni nada. Se ven muchas plantas. Y bueno, supongo que sabes que yo soy de provincia. Entonces yo siempre he sentido que aquí donde yo vivo es como una, un poquito provincia en la capital, porque no hay edificios tan grandes.Este y bueno, desde aquí se ve, se me olvida que estoy en CDMX ahora, sabes a Chris: Gracias. Pues eres entre otras cosas, autora de varios [00:01:00] textos entre ellos Pepitas de Calabaza y el muy reciente No Existe Dique Capaz de Contener al Océano Furioso. También coordinaste la traducción al español del texto en inglés de Militancia Alegre:Deje Resistencias Florecer en Tiempos T óxicos. (o Joyful Militancy) A esa traducción le siguió un podcast complementario con Pamela Carmona titulado Alegría Emergente: Deshaciendo el Radicalismo Rígido. Entonces, para empezar, me gustaría preguntarte cómo conociste, el libro Joyful Militancy y qué te llevó a traducirlo. Alf: Yo conocí ese libro. Lo cuento un poquito en el prólogo, pero yo conocí ese libro, en Estados Unidos, porque yo tenía una banda. Yo toqué en una banda de hardcore punk muchos, muchos años, la batería. Y entonces así accedí a Estados Unidos y estando [00:02:00] en el underground americano, que fue una parte importante de mi de mi de mi vida, estando en en California en concreto.Me encontré ese libro como en una cafetería y yo me enamoré. Entonces lo traje y primero lo leí en inglés con alguna gente y muy lentamente empecé a trabajar con ese libro, traducir. Eso es una historia más larga que está ahí bien en el prólogo, pero bueno, llevo años como militando ese libro. También hubieron una serie de coincidencias de gente muy amable como Tumba a la Casa, como los autores canadienses, los derechos nos los regalaron. Se metió la gente de Traficantes de Sueno.O sea, en realidad hay un montón de gente. Es como una red de redes, ese libro y una serie de casualidades y favores y gestos agradables de mucha gente que logró que eso saliera como salió, la verdad. O sea, yo pienso mi irrepetible, esa esa serie de factores. Ajá. Chris: Ah chingón. Muy bien, Bueno, pues ese libro originalmente [00:03:00] se publicaron en 2016. A leer, reeler y traducir ese texto, tengo curiosidad por saber que crees que ha cambiado de este entonces, o qué diferencias principales has visto entre el radicalismo rígido descrito en el libro de la anglosfera o America norte, Anglosajona y la hispanesfera o Latinoamérica? Alf: Este? Pues muchas cosas que decir, no. La parte que confirmé yo fui trabajando ese libro, eh? Porque digamos que yo, todavía este año presenté ese libro. O sea, y le fue muy bien en Costa Rica. Fue la última. A mí se me acabaron los ejemplares. Y digamos, terminé mi labor con con Militancia en Costa Rica hace dos, tres meses.No es tanto, no? O sea todavía después de la del programa de radio con Pamela, se hizo en Costa Rica de presentación y le fue muy bien, eh? Y se [00:04:00] reimprimió ese sí. Ese libro fue un éxito de muchas maneras, no? Y fíjate a mí. Una cosa que con por me pasaban los años, no me gustó, es que yo siento que tiene un lado como muy liberal, osea, hay un lado donde es demasiado suave, no? O sea, al criticar lo rígido, siento que se pasa de flexible, por decir así. Entonces, y eso pasa un poco como con ciertos radicalismos del norte, que tienen que ver con la retórica de la amistad de la ternura como tan enfocados en el cuidado.Y así, yo siento que sin querer como por llevarle la contraria al opuesto, como el machismo lo rígido, bla, bla, bla, caen en una cosa un poco... o sea yo siendo que ese el libro o por lo menos mi lectura de ese libro, ya estas alturas, si lo siendo demasiado suave, porque yo creo que la parte negativa de militar y de organizarse, pues es importante, no, eh?Es importante de hablar, no? Entonces, cierto que en el libro, se pasa de buena onda, por [00:05:00] decirlo asi. Creo que por eso es un éxito porque hay lado "pop" en ese libro, un lado suavecito, dulcecito, que se mastica bien. Y está bien para los activismo, pero hay una parte en mi que dice bueno, pero hay que hablar del resentimiento, hay que hablar del odio.Hay que hablar de la importancia de romper entre nosotras, de pelearnos entre nosotros, sin caer en el castigo y la culpa y la persecución. Pero yo sí, creo que la ruptura o la negatividad en general ese el libro no lo logra del todo. Habría que ir a otros lados y pienso que de un año para acá, desde que se recrudeció el genocida ahora, pues justo toca repensar el antiimperialismo, toca repensar cosas que no pueden ser tan flexibles, no? O sea, pues están matando, están cayendo bombas y no se trata de vamos a ver si nos cae el 20 o no, o cuando nos cae el 20.Pues hay un imperio gestionando un genocidio que se recrudeció muy fuerte el último año. Y eso implica, se endurece, se endurece. O sea, ha cambiado el panorama político. Y hay [00:06:00] procesos donde podemos ser muy flexibles y pacientes, pero hay procesos donde no, donde hay que responder porque la bomba te ca en la cabeza, o sea, y ya está.Entonces me recuerdo un poco como en los del paso de los 60s a los 70s, o el paso hacia los 20, no? O sea, históricamente esto ha pasado. Se acaba el hipismo y y llega la guerrilla. Se acaba el anarquismo y empieza el partido comunista. O sea, hay momentos donde la historia te come y se vuelve un poquito más pues no te voy a decir duro, pero pero sí, incluso en el norte, los anarquistas que venían de escribir ese libro como muy ticunistas se están volviendo más de izquierda, más revolucionario, más leninistas mucho. Y yo creo que eso tiene que ver, bueno, una especie el leninismo, pues moderno o buena onda.El tipo zapatismo en versión anglo, pero yo creo que eso tiene que ver con las condiciones actuales. Yo creo que antes de la pandemia, después de la pandemia, son dos planetas, tanto por el reconocimiento de genocidia, como porque lo que se [00:07:00] hizo toda la década que para mí acaba en pandemia. Pues tenía un lado muy chido, pero también a un lado muy de todo es válido.La insurrección ya está aquí. Y pues ahora decimos no, pues no está aquí. No estamos parando a Estados Unidos este el imperio, no lo estamos parando. En otros momentos de la historia, si se la podido o poner ciertos límites al imperialismo." No del todo, pero se han ganado algunas luchas.Entonces, bueno, ese libro creo que fue de su época. O sea, 2016 y ese anarquismo de la amistad y de hay que conectar y fluir y todo ese lado que para un poco hippie. Creo que es muy de su momento, de la década pasada, pero yo creo que esa época, ya no es la nuestra, por las por las condiciones. O sea, porque estamos reaccionando y respondiendo y organizándonos frente a otros problemas.Chris: Claro, claro. Y si podrias actualizarlo en tus propios palabras, cuáles serían los temas más importantes [00:08:00] para cambiar o reemplazar? Alf: O sea, mira te voy a contar de otro libro, pero también es del norte.Entonces, pues no me encanta darle tanto entre ellos, pero un libro que, por ejemplo, le respondería fuerte de ese libro, sería este que me regalaban los de Traficantes, ahora que trabaje con ellos en en Madrid, que se llama Hacia Una Nueva Guerra Civil Mundial, de Lazzarato, no?Entonces digo, lo que pasa es que él es un leninista, no? Entonces, le pega duro, le pega duro. O sea, pero esto ha pasado siempre, pero hay varias banda que está respondiendo, no? O sea, por ejemplo, en el caso de este libro que te a acaba de mencionar Lazzarato.Pues él dice que los últimos 50 años, incluido militancia, que estaría al final de 50 años, lo político como tal no se habló? Entonces, si le aplicas Lazzarato a Militancia Alegre, efectivamente, nunca se habla de que a ver, o sea, el gobierno estadounidense control el mundo y va ganando. O sea, y hubieron luchas en los 60s, 70s, que lograron más o menos parar [00:09:00] ese imperialismo, los liberaciones nacionales, por ejemplo.Las luchas de empezamos por Vietnam, Malher y Cuba y acabando con otras. Si más o menos se le pudo parar a ese imperialismo de ese momento? Pero por ejemplo, Militancia en ni un solo momento habla de política en un sentido duro, no? O sea anti-Trump, por ejemplo, anti-global como global north o norte y global. O sea, en el sentido que gobiernan en el mundo, no?Y eso no se habla no? O sea, en ningún momento se dice bueno, nosotras, como norte, tenemos una deuda con el sur, no solo económica, sino política, no? O sea, en cuanto a no permitir la autonomía de los sur. Y palestina y Líbano es el, pues es el caso más extremo, no? Aunque aquí es lo mismo, no? O sea, la lucha la guerra contra los zapatistas es el mismo genocidio, con la misma bala. O sea el mismo inversionista, las mismas ganancias. Es el mismo genocidio. Entonces, pero no hablar de eso, no hablar de lo meramente político, [00:10:00] no? O sea de como Morena trabaja para el gobierno gringo y mata a los zapatistas y los centroamericanos. Al no hablar de este tipo de cosas como duramente políticas.O sea, como Trump controla a la milicia mexicana, la la la. Pues sí que es un libro hippie, no? O sea, en el sentido de que, ahí los leninistas tienen un punto. En este caso, Lazzarato pero mucha otra banda, al contestarle a la banda anárquica. Si muy chida la amistad y muy chida la... Lets tune in.O sea, está bien, pero tú estás parada en un mundo que de beneficia de destruir este mundo donde tú y yo estamos parada, no? Entonces, de muchas maneras: lo real, lo simbólico en lo económico. El turismo, para mí solo es un capítulo de esa serie de industrias de muerte. Entonces no, al no hablarlo.Yo pienso que es un libro que omite el lugar de enunciación principal, que es el imperio si habla del imperio, pero yo siento que si le faltó lo político político. Osea, como el norte domina y controla [00:11:00] al sur, el gobierno del norte en concreto. Al no hablar eso pues si hizo darle un libro que pues no sé cómo va a envejecer. O sea, digo, bueno, a ver cómo le va, porque porque sí que sirve para lo que sirvió Tiqqun y esas cosas en su momento que era contestarle a la izquierda vertical, por decir así. Pero ese momento, por lo menos en el norte, ya pasó, no? Y ellos esos mismos ya regresaron a la verticalidad.O sea, los que atacaron al leninismo, estamos en esta otra. Entonces chistosasto porque ellos tienen sus propios ciclos y nosotras tenemos otros ciclos de lucha, no? Y otras genealogías y otras retóricas. O sea, es muy diferente. Ahí la traducción. Por eso milita tanto ese libro porque, había que defender nuestro propio contexto, no?Y decir bueno, es la genealogia de ellos, la nuestra tiene otras conceptos. O sea, ha ganado guerras y revoluciones. Hay muchos triunfos en nuestra historia del sur. De hecho, en la del norte hay más derrotas y en cambio, [00:12:00] las liberaciones nacionales, pues prácticamente todas triunfaron, si las piensas, contra el imperialismo. Claro que ya no está de moda hablar de eso porque de colonial ya está en otra... ya se fue a otro lado. No? La mayoría de de anticolonial ya no está viniendo su genealogía en las luchas de liberación nacional y o la violencia?Ya la violencia pasó de moda y justo este libro tiene algo de eso? Como de no hay que hablar de cómo en México tuvimos que tirar balazos para recuperarlo un poco que tenemos. No! Hay que hablar de la amistad del amor, la ternura. Esa parte es la que yo pienso que ya no le habla mucho a nuestro tiempo y a ver qué va a pasar después, a ver qué va a pasar después.No, aunque tienes utilidad, no? O sea, mucha gente que está en el activismo vive con mucho, cariño de ese libro y está bien. O sea, Creo que está bien. Yo creo que le falta la parte política y negativa, pero bueno, no lo pudimos pedir todo a un solo libro. No. Eso es lo que hicieron los europeos con nosotros, traer la biblia y [00:13:00] matarnos pretexto de un solo libro. Entonces yo creo que no hay que caer. Eso es, es colonial quererle pedir todo a un solo libro. Si ese libro dio lo que tuvo que dar en su contexto y ese contexto para mí pasó este listo. O sea, fue una herramienta útil que respondió y ya este lo que sigue. Chris: Pues sí, este recuerdo que hubo una, una nota de pie en en el libro, de Silvia Federici y la tengo.La cita aquí decía que"lo que más importa es descubrir y recreer la memoria colectiva de las luchas pasadas. En los Estados Unidos, hay un intento sistemático de destruir esta memoria. Y ahora esto se está extendiendo por todo el mundo. Revivir la memoria de las luchas del pasado nos hace sentir ser parte de algo más grande que nuestras vidas individuales y de esta manera de un nuevo sentido a lo que estamos haciendo y nos da coraje, porque nos hace tener menos miedo en lo que [00:14:00] nos puede pasar individualmente." Y siento que hay algo allá como también la, no sé si está impulsado desde arriba o si es solo una falta de memoria, pero sí, siento que es, es muy fuerte que hay una falta de linaje, en la política en el día de hoy, en los momentos sociales contemporáneos. Pero pues, quería preguntarte un poco de tus experiencias también con el turismo. Me gustaría preguntarle de qué tipo de reacciones recibiste, recibieron cómo resultado del podcast y si esas conversaciones cambiaron sus ideas sobre los temas tratados.Alf: Este una parte había que preguntárselo directo a Pame porque yo creo que ella lo vivió a su forma también. Pero bueno, pues fue muy chido. Primero que nada, lo lo bonito. Ese programa varias cosas. Primero, ese programa fue apoyado por el instituto de estudios anarquistas americano, y eso [00:15:00] fue lindo, tener el apoyo. O sea, no precarizarnos tanto. Y tampoco tener que pedirle dinero a gente de mierda para hacer co chidas no, eso siempre se siente bien. Como no traicionar el contenido, o sea que vaya mucho la forma con el fondo, no. Entonces, de entrada, eso fue muy alegre. De segunda gran alegría, yo siempre trabajo a puerta cerrada.Yo soy un poco celosa de mi trabajo. Entonces, pues a abrir la puerta y trabajar con no solo dos, vieron un podcast que éramos cuatro, cinco. Eso es rarísimo. Yo nunca había hecho eso. Yo no suelo hacer eso. Si, trabajo con gente, pero no con el micrófono, normalmente no, eh?Siempre trabaj o con grupos y movimientos y cosas, pero digamos que a puerta cerrada por decir así o o coyunturas específicas. Entonces, primero la congruencia que yo siento que tuvo ese programa, como alinearnos en un anarquismo internacionalista, que yo creo que hay que recuperar.El internacionalismo en general, eh? Y creo que a [00:16:00] veces la lucha contra el turismo sin querer se vuelve muy nacionalista y no distingue entre migrante y turista esas cosas, como en un México, es mejor que todo lo demás. Un poco raro, pero bueno, antes de perderme, yo creo que ahí hubo un gesto internacionalista lindo.O sea, entre anarquistas del norte con los del sur primero y segundo, pues, abrir el micro porque que yo no es algo que suelo o solía hacer hasta hace hasta este año, por decir, o sea, yo llevo en un monólogo de locutora varios años porque mi parte social la hago cuerpo a cuerpo, por decir así. Y ya te podría platicar muchas cosas.Pero a mí me emociono muchísimo el programa con Tejiendo a la Organización Revolucionaria, eh? La verdad me encantó. O sea, a mí ellos me parece que hacen un trabajo importante. Y me parece que nuestro tiempo se está pensando desde los revolucionarios también. No necesariamente como la decada pasada la insurreccional y el todo se vale.Este, yo creo que está [00:17:00] cambiando un poco esos enfoques y justo ellos que llevan más de 20 años y son como 50 personas organizadas desde abajo con mucha claridad y mucha fuerza. Pues hicimos un puente muy chido, no entre en anarquismo y otras partes de la izquierda radical, que normalmente no nos damos la mano y no platica.O sea, no es común ni es fácil. Y cuando se da, suele ser tenso. Y no hubo para mí nada de tensión, al revés. Hubo una complementación muy chida contorno. Es el último capítulo de Emergente. Bueno, o sea, y siento que conecta con Militancia Alegre. O sea, llamarla en militancia y no "activismo alegre" era una provocación de los autores.Y yo creo que movimiento es como ?, entre muchos otros que se mencionan justos son militantes, no activistas, no? O sea que el activista tiene genealogía muy del norte y muy de los noventas para acá. Y yo creo que ellos como que leídos por "los cool" que Militancia Alegre sigue siendo el libro más cool, como que no suelen voltear, la gente cool, no suele voltear a ver a ese tipo de militancias como Thor. [00:18:00] Todos estuvieron muy chidos, pero yo le tengo especial cariño, a ese último, porque sí, pienso que hay que pensar alianzas insólitas, como todas las izquierdas radicales, tratar de articular. Y para mí, eso lo más cercano fue contorno. Y yo lo sigo reescuchando. Y hay cosas que me dejar pensando, por ejemplo, lo que dicen de los sectores de la clase trabajadora, que hay un sector indígena, entonces se pelean entre ellos y como son sectorizados, en fin a mí, hay varias cosas que ellos me hacen pensar. Me hacen pensar mucho. Y su chamba es muy chida. Solo que, como no es la más cool y como nice. No tiene este super diseño ni nada. Pues mucha gente no les presta atención. Entonces yo, para mí, fue importante darles el micro a ellos y más bien me faltaron programas con ellos, la verdad.Entonces, para mí, eso fue muy lindo, con el pretexto del libro, porque la verdad, casi ni hablamos o muy poquito. Ya haber podido entrevistar, por ejemplo, a Raquel Gutiérrez. De poder pues yo hubiera [00:19:00] entrevistado a John Holloway. O sea, yo me hubiera seguido. Lo que pasa es que la chamba entrevistadora es muy distinta a la que yo hago como locutora, o sea, es otro camino. Y pues, el recurso. Pues no lo hay. Claro. Claro. Porque esa lo pudimos hasta pagar un poquitito de dinero a la gente que entrevistamos. Pudimos autocobrar un poquitito. Pagarle a la diseñadora. Fue muy distinto a todo lo que yo hago. No este ese ese programa.Insisto por el apoyo internacionalista que poco o mucho, pues fue muy lindo tener, porque normalmente no se puede pagar entrevistas y cosas, que es chistoso tanto tanto de lucha de clases, con compas que pu pues obviamente les cuesta venir para acá. Chris: Ya no, pues es muy difícil, pero sí, fue un episodio muy bonito. Y lo voy a poner en el sitio web d El Fin de Turismo cuando lanzamos este podcast y también por los que quieren saber, es el último episodio de Alegría Emergente. Pues, hablando de tus obras Alf [00:20:00] en Pepitas de Calabaza, exploras algunos temas periférico de turismo, desde la Merida en la que creciste, los chiqui loteros o aquellos que dividen grandes lotes en lotes pequeños para venderlos a un precio normalmente superior, a veces a extranjeros. Es uno de esos temas.Cómo influyó tu tiempo en Merida en tu comprensión del turismo? Alf: Primero, extender un poco la la invitación a la lectura de mi trabajo. Este el tema de la propiedad y del turismo y del colonialismo, básicamente atraviesa toda toda mi obra, pero medida en concreto que que te interesa con Pepitas también es algo que menciono en el libro nuevo.Él No Existe Dique Capaz de Contar y hablo específicamente de cómo el turismo, la industria del turismo ha ido como arrebatándonos a quienes venimos de las clases populares. Crecimos abajo y demás, sobre todo el placer, el ocio. Olvídate de la [00:21:00] tierra. Si el acceso al agua, una serie de cosas, no.Entonces ahí se trabaja un poco más elabor adamente pero efectivamente desde Pepitas. Pues a mí, es un tema que me, central en mi trabajo. El tema del colonialismo, porque para mí, hablar de turismo se hablar de colonialismo actual, colonialismo interno externo, pero es el colorismo vigente. O sea, es un desplazamiento, parte de un proceso de desplazamiento em.Entonces, en Pepitas, pues efectivamente eso es un protagonista, que digamos es el burgués nacional, por decirlo como muy teóricamente el chiquilotero, le decimos regionalmente, que es el es el terrateniente. No es Carlos Slim. O sea, no es el más rico, el lo rico, pero es, digamos, el terrateniente de mediano alcance que puede comprar tierra y fragmentarla y venderla, especular con la tierra, al final. Pero en el sur resiste, el año pasado, para para subir el tono a lo político otra vez... El el año pasado en el sur [00:22:00] resiste, nos decía el Congreso Nacional Indígena, que la mitad de la tierra en México es propiedad social, no? Y esto lo platicaba presentando no Existe Dique con Yasnaya Aguilar porque Oaxaca es un caso distinto y da mucha envidia.Tiene una tercera forma de tierra que en la tierra comunal, pero no vamos entrar a las legalidades. El sureste de México, como representa a Paco y hablo en mi segundo libro también este de ah, el turismo ha entrado porque legalmente, desde el 92 se cambió la constitución y se ha roto la propiedad ejidal y ha entrado la propiedad privada, no?Entonces, para llevarlo lo meramente político, luchar en contra del turismo hoy en México sería exigir que no se pueda vender, como en Oaxaca existe la propiedad comunal, no en ninguna otra parte del país hasta donde yo sé, que no se pueda legalmente vender esa tierra. Entonces, para no abstraer, o sea para ir a concreto, el turismo avanza, por el primermundista, coludido con [00:23:00] con con el tercermundista de la clase alta, en este caso, Paco, para romper la la propiedad social y meter la propiedad individual o privada, no? Si hubiera un mecanismo que la revolución mexicana nos heredó, ese mecanismo legal no podría existir el turismo en México, por lo menos no legalmente. Entonces, como desde el 92, se terminó de caer lo que nos quedaba de revolucion mexicana y que se peleó a balazos. Hay que recuperar esa negativa. En el 92 se cambia, es perdemos eso que habíamos ganado la revolución. Y entonces el turismo ya explotan. Y eso es muy notorio para gente que somos del sur.O sea, si yo te cuento cómo fui a Tulum por primera vez, y cuando volví a Tulum 10 o 20 anos después, o cómo fui a Zipolite por primera vez. Y eso es el resultado. O sea, te puedo escribir 30 libros, pero todo eso es result resultado específicamente una partecita de la constitución que menciona en mi segundo libre, legal, que permitió destruirlo lo que ganamos en la revolución mexicana, [00:24:00] que es la propiedad colectiva, en algunos casos propiedad indígena en otros casos, simplemente propiedad social de las clases populares.Y esto lo he trado mucha gente y me fui enterando estando con la gente en territorio, por ejemplo, con la asamblea de defensores de territorio Maya Muuch Xiinbal, ellos en la práctica, me enseñaron toda esta serie de mecanismos y defensas caminando con los pueblos, estando ahí. O sea, porque hay que estar ahí a veces para entender la magnitud.O sea, si tú lo piensas, el los muchos pueblos indígenas y clases populares son dueñas de hectáreas, el 40% del país, está en sus manos a nivel de propiedad legal, pero la propiedad privada va ganando, no, no. Y para mí, el turismo solo es un pedacito de ese proyecto colonizador actual, que va, va quitándonos, lo poquito que ganamos en la revolución mexicana. Bueno, ganamos varias cosas: la educación pública, salud pública, todo eso lo van privatizando. Pero es muy loco tierra y territorio, porque es muy específico. O sea 40 percent versus [00:25:00] 60 percent, un artículo de constitución, no hay que perdernos, osea. Ahí está. Pero mira el ombligo del pedo. Ajá. Chris: Mm, gracias. Me gustaría proponer algunos algunas preguntas, algunas provocaciones. Quizás respeto de cómo el turismo y más bien, más recientemente, las entrecomillas invasiones de turistas, nómadas digitales a México desde la pandemia y otras partes también. O sea, no es solo México, pero obviamente hay otros lugares.Y pues, hay ciertas cosas que ha surgido en otros episodios de podcast, respeto de el radicalismo rígido, y como lo veo a veces culturas de descartabilidad, que siento que es algo fundamental y también como desconocido en cómo funciona, pues la modernidad, la colonia, toda ese trayectoria [00:26:00] de mierda. Pero lo vemos mucho. Siento, siento yo en los redes sociales. Entonces, me gustaría preguntarte, qué piensas sobre los efectos de las redes sociales en los contextos de las luchas contemporáneas, pero también bajo de este contexto de turismo, de las invasiones en México. Entonces mi pregunta es, cómo crees que las redes sociales contribuyen al radicalismo rígido?Alf: Eh? Pues mira, yo creo que no solo contribuyen radicalismo rígido, o sea, respondiendo muy rápidamente. Yo creo que el algoritmo está diseñado y eso lo sabe la mayoría, espero, supongo este para generar estos echo-chambers que le llaman. Entonces, yo creo que lo mínimo, o sea, lo más x es que genere radicalismo rígido yo creo que en realidad la [00:27:00] ultraderecha está ganando en el mundo por las redes sociales. Y esto no lo digo yo. Esto está demostradisimo. O sea, Milei, Trump y todo el fascismo en el poder que desgraciadamente es, yo calculo la mitad del planeta, Bukele, etcétera, Bolsonaro, tienen mucho que ver con lo que aquí sería Chumel Torres, con lo que aquí sería Eduardo Verastegui. Tiene todo que ver, no?Y yo creo que eso, el pensamiento crítico, como le nos queremos llamar a este el otro lado antifascista sea, no hemos tomado suficientemente en serio eso como un enemigo, no? Porque volviendo la negatividad, el resentimiento, pues hay ese es un nuevo enemigo. Para mí, hay que destruirlo este.Acomodé lugar, o sea, como tenga que hacer. Entonces, esto lo hablaba también con Benja, la pareja de Yasnaya, el día de mi presentación en Volcana. O sea, qué pasa que mucha izquierda, mucho pensamiento crítico y todo, no quiere hacer pop. Entonces la derecha sí que está haciendo [00:28:00] pop y por eso ganó Trump, y por eso está Milei en el poder, porque hacen un un tipo de redes sociales poperas. No tienen miedo a reducir el pensamiento, a provocar. No tienen miedo porque tienen el poder, obviamente, controlan el mundo. En concreto, Trump, no? Entonces, nosotras desde el miedo y desde un un clasicismo extraño, un machismo raro, como que decimos el "pop" está mal porque reduce. Ser influencer está mal porque hace de lo abstracto. Lo reduce. Lo simplifica. Y ese es un problema. Es un problema grande que tiene que para mí tiene que ver con el problema de la es escolarización. Pero para contestarte, y yo creo que las redes sociales sostienen al fascismo actual, más que cualquier otra cosa, yo creo que más que ninguna otra cosa. Y por eso nos gobiernan celebridades y estamos en una fase nueva de la política como espectáculo. Y no estábamos ahí, volvemos a militancia como un libro que ya no responde a esta época, yo no siento que Obama era eso.Yo no [00:29:00] siento que el PRIismo y el PANismo era eso. Estamos en otro momento, entonces, como siempre la izquierda o como lo quieras llamar, el pensamiento, el antifascismo general, que a mi me da igual los conceptos, como siempre estamos lentas, lentas en reaccionar. Porque? Pues porque nos asusta. Las redes sociales, yo pienso que nos están bombardeando, emocionalmente con el genocidio. Yo creo que la manera en que están manejando la imagen del genocidio está tronando la salud mental, terminando de tronar, si no, es que ya la había tronado de buena parte de de de quienes estamos contra de Trump y Milei, por decir el amor que yo espero que seamos más o de la mitad de la tierra otra vez, este me gusta creer. Entonces eso, yo creo que estamos lentas porque quieren ellos porque nos han tronado la la salud mental. Y eso hace que nos aletargamos en responder con la fuerza con la que ellos, o sea nos faltan influencers un poco más rudos, para decirlo como es, o sea un poco más tan fuertes y provocadores como ellos.Yo [00:30:00] siento que los influencers de este lado hacen un trabajo importante, pero muy suave. O sea, está muy abajito. Muy bien portado. Cuando tú escuchas a Bukele, tú escuchas hablar a Milei o Trump y son los provocadores, realmente. Este, no le tienen miedo a decir pendejadas. Y la izquierda, sí. Sí, le tienen miedo a cagarla. Cuando no se dan cuenta que lo que están haciendo ellos es provocar para mover, no? O sea, la gente sabe que es una exageración. Los votantes de Milei de Bukele y de Trump saben que dicen mucha, es un borracho, que está diciendo pendejadas, pero van y votan. Chris: Claro. Alf: La izquierda no está logrando subir el tono. Al revés. O sea, entre más, baja en el fondo y más banderitas de palestina, como que más bien portadas, somos. Y entonces, ah, "pues vamos a hablar de la cultura de palestina, que es muy importante. Es muy bonita. Pero yo te apuesto que se hubieran influencers diciendo vamos a tirarles bombas y vamos a matar sería más fuerte, no? O sea, le daría [00:31:00] miedo a ellos como ha pasar, si ha pasado la historia en los 70. Esto sí que pasó. Si le dábamos miedo a ellos. Ya no le damos miedo. Y yo creo que eso tiene todo que ver con como el imperialismo hoy, es un algoritmo. Antes era otra cosa, y es un imperialismo de la mente y de las emociones.Y es meramente como manejan la imagen. Osea, da igual lo que nos muestren, sino la manera en que se utiliza el discurso de Trump y la manera en que se utiliza la imagen del genocidio, no el genocidio. Eso a ellos no les importa, sino el uso, nos truenan, nos truenan todo el tiempo.Entonces no logramos articular. No logramos reconocernos. Empezamos a competir, nos peleamos y es porque ellos van ganando. Han habido otros momentos de la historia donde este lado de veras le daba miedo sin idealizarlo porque también puede ser muy machista. Este le daba miedo a Trump y a los Trumps. O sea, se [00:32:00] cagaban de me decían no, no.Entonces, bueno, van a matar, no? Y entonces, había algo positivo ahí. Había algo positivo ahí y eso se perdió, nuestra propia capacidad de dar miedo y defendernos. Se ha ido perdiendo. O sea, y es muy material, porque matan defensores del territorio cada semana, así como palestinos y libaneses con la misma pistola, la misma arma. Cada semana los matan. Entonces, pues, claro que da miedo de subir el tono. No porque siento que te van a matar. Hay un fantasma. Entonces, yo creo que las redes sociales se tienen toda la culpa y que están gestionadas maravillosas, perfectas, las redes sociales y y el internet porque permitió que el imperialismo, se vuelva.O sea que lo cargues a todos lados, que desees el fascismo. Y eso está en las pantallitas y en el celular. Lo manejaron muy bien. El que lo explica más bastante bien es, Adam Curtis, en Can't Get You Outta My Head. Y creo que eso hay que tomarlo [00:33:00] todavía más enserio, porque la gente nada más dice "ah, pinche Chumel Torres". No, wey. O sea, es el cáncer de esta sociedad. O sea, no se explicar. Es un verdadero enemigo y "ah x solo es un panista ahí raro." Lo que quiero decir es que no le damos la seriedad, como que no estamos leyendo el imperio en su nueva fase y cómo se maneja. Chris: Pero entonces, tú crees que las maneras que podemos socovar el algoritmo es de, quitarnos de la pantalla? O sea, pero cómo está también el algoritmo no solo internalizándose según yo en los movimientos, pero en las mentalidades de la gente y dentro de los movimientos?Alf: Claro que yo no tengo una respuesta, pero a mí se me ocurre que esto ya se intentado muchas veces como crear nuestros propios tecnologías. Lo que pasa es que nunca van a ser igual de atractivas y poderosas, como clase de quienes controlan la tierra, porque pues por algo [00:34:00] las controlan y van ganando no? Porque tienen todos los recursos y toda la inteligencia puesta ahíEntonces, si los movimientos ya les pueden tener redes sociales, pero pero sus posts no tienen ningún alcance y eso está gestionado desde arriba. Entonces este es un problema más profundo que tiene que ver con el problema de la imagen y su gestión. O sea, al controlar el algoritmo, el imperio, lo que está controlando son las imágenes y las narrativas. Las gestionan, a eso me refiero con imperialismo. O sea, vemos lo que el imperio quiere que veamos y se acabó. O sea, es una nueva fase porque no necesariamente tienes al gringo gobernando a tu país como lo fue antes de la revoluciones nacionales, por ejemplo, pero tienes el celular que sólo te va a mostrar lo que le conviene al gobierno gringo o mayoritariamente.Entonces quebrar el algoritmo es quebrar el imperio, o sea la verdad, o sea, no es otra cosa que eso . Y eso hace que lo [00:35:00] cool sea cool y lo no cool que suele ser más importante, no se vea y no tenga acceso recursos y no generar imágenes chidas. Y si logras de una imagen, no tiene ningún alcance. O sea, es muy notorio para mi trabajo.O sea, si yo subo mi gatito 500 views, si yo subo el tipo de cosas que estamos platicando 5. Sí, claro. Es super evidente, no el manejo de la imagen y la gestión. Entonces, pues hay que volver. Hay que volver a la auto publicación. Hay que volver a los medios libres como se estuvieron haciendo hasta si varias decadas. O sea, y rehacerlo recuperarlos, repensarlos. La gente que se está yendo a Mastodon en redes sociales. La gente que se está saliendo de los algoritmos, los más feos. Digo, no sé qué tanto lo vamos a lograr. O sea, por eso yo, mi parte política, la vivo más en presencial. O sea, yo voy. Trato de ir ahora que se cumplen 50 años de Lucio cada año, hacer pueblo, estar con el pueblo, ser pueblo. O sea, porque [00:36:00] claro que si yo no voy, nunca me voy a enterar.Y si no camino con, como te conté, la asamblea maya, aunque sea cinco minutos, yo no me entero de que el pedo principal de todo esto es simplemente un artículo de la constitución, no? Entonces, o sea, pon tú que ellos postan en internet. Quién lo escucha? Nadie muy poca gente, pero eso es por quien controla.Que la info no llegue no. Entonces, claro. Entonces a eso voy, o sea, hay un problema con la imagen. O sea, hay un gran problema con la imagen porque también lo que la ultra derecho y el fascismo ha logrado perfectamente bien en nuestra época. Es que la gente prefiere el reconocimiento y el like, el premio no que la reparación real.Y entonces las redes sociales están basadas en un nuevo modelo de contra insurgencia y de pacificación y neutralización política, que es, yo voy, te doy un premio, yo voy y te muestro, yo te doy un like, pero para que ya te calles, no. Y para que no digas las cosas, [00:37:00] estamos decían, es un solo artículo.Si echamos para atrás de artículo, pues vamos a parar buena parte de los capitales colonialistas y turísticos hoy, etc. O sea a lo que voy es que van y te premian, van y te likean para que te vayas pacificando. Y ahí hubo un cambio estrategia que también estamos muy lentas en sí, porque los setentas te mataban, a las clases medias organizadas políticamente. Hoy no. Hoy no es así.Hoy matan a la gente de abajo, a los defensores que viven y habitan las clases populares, el territo y a la clase media la premia pa que te calles. Entonces, cómo te premian haciendo que el algoritmo te vea mucho y hables mucho y produzcas mucho contenido, pero es un contenido. Te repito muy bien portado.Es un contenido suave, que omite las partes políticas que omite temas de imperialismo contra insurgencia, bla, bla, osea. Habla de todo lo demás, formas de vida, ternura radical, [00:38:00] consumo alternativo, sororidad solidaria, todo lo que tú quieras, excepto si no le cortamos la cabeza a Trump, esa condición no para. O sea, no sé si me explico.Menos lo más importante, digo, lo estoy caricaturizando. Cortando la cabeza de Trump no vamos a parar el periodismo, pero me estás entendiendo. Están manejando la censura y estamos ya hablan de tecno tecnofeudalismo. Estamos regalándole un contenido que soporta el imperialismo y no nos damos... estamos tan enajenadas en este momento con el algoritmo que trabajamos para el gratis.No? Y me incluye, o sea mis PDFs, son gratis. Mi radio es gratis. Yo soy una esclava del internet y se acabó, no? Y entonces, en la medida en que no lo sepamos, sentir la negatividad de ese despojo y de cómo todas trabajamos para el imperio. Nos gusta no poco mucho, este pues más nos enajenamos no? O sea, porque yo no cobro por mis ramas de radio.Yo no cobro por el PDF [00:39:00] literal. Me despoja y me precariza en un sentido duro, directo. El pedo es que decirlo es fuerte porque la gente, pues como escucha en tu programa o el mío, y nos va MXN $5. Bien, pues la gente se compra la amiga y dice que padre, el internet me ven. Cuando solo te está viendo la gente que piensa como tú. Y ya nadie más. O sea, ni un solo seguidor más. Gente que ya pensaba como tú, antes de llegar a tu contenido. Entonces, en realidad no estamos logrando hacer propaganda, no? Y yo creo que es super importante, porque porque en la medida siempre trabajamos con los que piensan como nosotras, no estamos empujando el ese 50 percent fascista, al reves, lo respetamos y decimos, bueno, yo trabajo con el 50%. Me quedo en el 40% de la propiedad social y nunca empujo la propiedad privada o el 50% fascista.Y ya ahí te quedas que es muy cómodo también hablar entre nosotras. Pues que nadie te también te madres que nadie te mande [00:40:00] bots. Porque a mí lo que hacen es que me atacan en internet, no? Entonces, cada vez que digo lo que hay que decir, pues me mandan bots y me asustan me, como mucha gente, no, te amenazan.Y todos eso esta perfectamente gestionado, en México desde Peña Nieto, del Peña bots. Se siente muy claramente esas tecnologías. Muchas veces israeles. Se siente muy clarito, no? Y funcionan perfectamente bien, porque pacifican y neutralizan maravillosamente. Ya la gente deja de lo que hay que decir porque tú sientes que... o sea, porque tú sientes lo general, el efecto contrario, las censuras se siente como premiOChris: total. Muchas gracias. Alf. me gustaría provocar un poco ese idea que la algoritmo sólo nos este en suavece. En suaveza, dijiste? En suavece. Ajá. Ajá, porque pues, [00:41:00] también a mí parece que algoritmo está pidiendo, metiendo, reforzando la rabia.Y hace hace poco descubrí, descubrí un libro llamado Discard Studies en inglés, Estudios de Descarte, que intenta formular hipótesis no solo en torno a las historias sociales de la basura y contaminación, pero sino también del exilio y desplazamiento. Y la idea en los estudios del descarte es que todas estas cosas están muy relacionadas entre sí.Las redes sociales creen una plataforma para los también expulsiones sociales en forma de cancelaciones o escrachees, por ejemplo. Alf: Mm-hmm. Chris: Entonces, también que si el el algo ritmo está imponiendo, invitándonos a ser más pacíficos, siento que hay una manera que está imponiendo, impulsando, invitándonos a descartar, tirar, la [00:42:00] gente entre los movimientos sociales, o sea, entre movimientos sociales, también en la manera interpersonal.Y quería preguntarte sobre eso y las consecuencias a las luchas de largo plazo. Alf: Mm-hmm. Mira, yo siento que si se habló particularmente en el segundo capítulo de Alegria Emergente con un invitado que se llama Tomás Calles. Con él, se habló eso. Mira, yo siento que que es bien complicado este tema, porque para mí, el escrache pues que últimamente más sé hoy es el escrache que llegar con el género, con abuso sexual. Y a la vez, yo creo que hay que hacerle su genealogía completa el escrache porque el escrache cada vez... o sea, si lo sacamos de género y lo metemos a la política, clase, a raza, y a todo lo demás, este de si tú te das cuenta, todo el tiempo, volviendo al 50 facho y al no facho, el 50% facho ha estrechado al 50% no facho. Todo este es el tema del control de las narrativas y las imagenes. O sea, [00:43:00] si tú ves la imagen, por ejemplo y para mí, es una forma de escracheeo pre nuestra época. Si tú ves como Estados Unidos, creo la imagen de Cuba, es una forma de escrache, no? O sea, como, voy a hablar super mal de esos wey. Voy a decir. Voy a publicar todos los libros y todos los contenidos que hablen mal de Cuba, no?Y para mí, hay un escracheeo ahí, un pre escracheeo, por decir así. Entonces, en términos políticos, que te vuelvo a decir que siento que son los cabezas, nos faltan en toda esta discusión. Siempre ha existido y va a existir formas de manipular y de destruir cuando la gente está haciendo cosas más o menos chidas, pues te van a buscar dónde y ahí te van a chingar, no?Y el gobierno también participa eso con sus bots, no? Y su manejo de la información, de la distribución de la información en concreto. Entonces, yo siento que el escrache hay que verlo como también como parte de la contra insurgencia, no todos los escrachees, porque hay escrachees que, por ejemplo, no se vuelven públicos y se vuelven en procesos, por ejemplo, [00:44:00] de... o sea, no es la denuncia pública el punitivismo como ejercicio de castigo ejemplar público, hay escrachees o denuncias en concreto, que más bien se vuelven en ejercicios de justicia reparativa, puertas cerrada, que han sido efectivos.Y yo me he enterado de varios y me han invitado a varios procesos. Este y con varios movimientos. Yo me he dado cuenta de la justicia ejercía por nosotras mismas. Sí, llevada a cabo reparar cosas concretas con soluciones concretas sin hacer una imagen, sin darle al algoritmo lo que nos quita todo el tiempo - tiempo, energía, sin darle la fotita donde dice "para hacer tu eescrache chido habla..." o sea, simplemente resolver, es lo que muchas cosas en internet no hacen. Hablan pero no acciones, y tú puedes hablar lo que quieres siempre y cuando no actúes. Ese es el gran truco de la red social. No hablemos todo, mientras no cambiemos nada.Este entonces nada. Yo siento que el escrache pues hay que verlo así como, tiene una parte [00:45:00] chida para mí, sobre todo a puerta cerrada, como de procesos que yo llamaría, justicia reparativa, restaurativa, osea que no tienden a la imagen, puede crear una imagen, pero no es su fin su objetivo final, sino reparar daños específicos con soluciones específicas, no caso por caso, sin abstraer a ese, este versus un tipo de escrache liberal, blanqueado, espectacular, chafa, que lo único que ha hecho es contra insurgencia. Cada vez que hay liderazgos. "Ah, es un macho," no? Cada vez que hay movimiento sociales, "ah, trabajan para los rusos, trabajan para los chinos, este, reciben dinero, reciben dinero de tal, este." Ose y el escrache, si es una de las mejores herramientas, porque genera volvemos en el tema de narrativas y imágenes, no que contraponen lo que ha ganado.Osea, yo te voy a dar un fondo a ti como activista para que hables del turismo, todo lo que tú quieras, siempre y cuando no hables de esto y de esto, okey, [00:46:00] entonces tu envía a cobrar y te va a super bien. Y te voy el súper famoso y que chido.Pues esa es la lucha que nos vaya bien materialmente a todas. Pero a ti te censuraron. Te dijeron sólo hablas de, entonces, fíjate, volvimos al tema del escrache. O sea mucha de esa gente eescracheada. Voy a poner uno. Miguel Peralta. El caso de Miguel Peralta, para mí sería un caso de escrache, no este Miguel Peralta hoy está perseguido por el estado mexicano y mucha gente te va a decir que es un machista. Te va a decir muchas cosas, pero no te va a decir la otra parte, no? La parte política de su lucha, contra un gobierno que el gobierna, por no decir Samir Flores como un escrache, por no decir Hortensia Telesforo con un tipo de escrache.O sea, si me estás cachando? O sea, y entonces que pasa que que desde arriba, como controla la narrativa y controlan la imagen y la distribución de la información. Te dicen a ver, yo te voy a pagar por una cosa, pero cállate la otra. Entonces pon la banderita de colores. Y ya CDMX es gay y es trans, [00:47:00] pero nunca vuelves a hablar de clase social.Por favor que el pobre siga siendo pobre. Ella solo habla Alf de trans, no? Si te das cuenta, es como el escrache. O sea, el escrache dice vamos a destruir el liderazgo político de Miguel Peralta poniendo ultra énfasis en su lado machista, que que yo no dudo que haya tenido como muchos líderes y como mucha gente, o sea, yo no estoy diciendo que no, solo estoy diciendo la manera en que se utiliza ese tipo de denuncias es para destruir el lado político. Muchas veces no todas. Mm, pero para poner un solo caso, y hoy, por hoy te estoy hablando de un caso de criminalizacion actual, como podríamos hablar de Samir Flores o Hortensia Telesforo y toda la contrainsurgencia. La contrainsurgencia es un tipo de escrache. Es que eso ya cambió.También te repito, la gente más visible van y le dan premios y le dan atención. A la gente menos visible, la matan o la criminalizan como Miguel. Están a punto de meterlo a la cárcel 50 años si no le prestamos atención [00:48:00] a ese caso, no? Que es lo que quieren, que no le prestamos atención. Entonces a eso voy, o sea, casi que ni importa el crimen, casi que no importa la falta del daño, sino el manejo. Hay como una economía, fíjate, hasta te diría yo, una economía de las quejas y una economía de la imagen que no estamos siendo conscientes. Estamos tan alejanadas, que nos vamos, por lo primero que nos dan "Ah, ese ese wey era un macho." Listo. Todo quedó o ese wey trabajo para china y hasta todo el trabajo que haya hecho, como trabaja para china, o como hablan de, por ejemplo, piensan las narrativas sobre ve Venezuela y Nicaragua y Cuba.O sea, es impresionante. Es escrache, o sea. Quién te va a hablar bien de ese tipo de países? Está difícilisimo Chris: o o al menos decir como, "no sé, no sé"... Alf: o al menos decir, "no sé," pero lo que quiero decir es que el independientemente lo que han hecho Venezuela y los machismos de izquierda, [00:49:00] el manejo de ese error.O sea, supongo, sí, yo creo que comete errores como toda la gente cometemos. El manejo es la parte más como las redes sociales, la distribución de esa información, es la que a mí me preocupa más. O sea, como, solo vamos a hablar de lo mierda, déjate claro, porque a Estados Unidos le conviene, que Miguel Peralta está en la cárcel, que Venezuela solo se una mierda, que China solo se una... que yo no dudo que tiene un lado de mierda, pero es interesante los límites del discurso.No puedes hablar de lo hecho. En el momento en el que dice es algo bueno. Cancelada. A la cárcel. Se acabó el pedo. Entonces a mí eso me llama la atención, porque la gente cree que es un momento de libertad discursiva. El fascismo va ganando, no? O sea, y eso es Trump, pero y eso es el genocidio Palestino y Libanes.Pero pero pero hay un síntoma de eso en que no podemos, no podemos hablar. Yo siento que el [00:50:00] internet es mucho más facho que lo previo. O sea, yo me siento mucho más censurada que lo que yo veo que ha pasado en el siglo 20. Me explico? La verdad. O sea, yo veo los discursos del Che Guevara y digo no, pues en ese tiempo podías hablar.Habla así hoy, balazo en la frente. Así es fácil. No amaneciste. Te desapareceria. Entonces digo, ganamos o perdimos en términos discursivos? No, yo pienso que perdimos porque tu ves la tele el siglo 20 y está hablaba sin que le den un balazo. Hoy, ya no hoy. Samir habló, lo mató Morena. Ya. Listo. O sea, hoy hablaban los Palestinos todos muertos.O sea, entonces yo creo que perdimos con internet. No ganamos, pero yo pienso que el turismo te repito, o sea, y el colonialismo, entonces solo es como una partecita. Sinceramente, yo pienso que es como un pedazo chiquitito, de todo una cosa más grande. Claro que es una industria que ha [00:51:00] ido ganando mucha fuerza, pero para mí se habría un contra turismo y un peregrinaje.Yo siento que hago peregrinaje. Fíjate, qué es lo que destruyó el o el turismo está reedificando cuando trato de acercarme los movimientos sociales, desde mi clase, o sea, desde mi color piel y todos mis contradicciones. Pues yo sigo a veces caminando, con gente que me ha enseñado cosas que nunca van a salir en el celular.Adrede no sabemos la verdad. Aunque las posten, no me van a llegar. Y entonces yo creo que si hay un contraturismo y un yo pienso que tendríamos que ir a buscar en el tema del peregrinaje o la hospitalidad radical . Por qué? Porque había un tema sagrado, no? O sea, había algo sagrado en el peregrino. No era turismo nada más de placer, aunque tenía a su lado del compartir y ocioso, pero para mí se recuperáramos la capacidad de defendernos, varias cosas que nos han quitado, la capacidad de hablar que yo creo que nos la quitaran a base de premios y views, no a base de castigos, pues habría un [00:52:00] peregrinaje, por el lado político, no?.Por ejemplo, me cuentan que el año que viene va haber en Brasil. No, mucha gente va a estar yendo a Brasil de diferentes latitudes. Y ese para mí, eso es contra turismo y peregrinaje político sagrado. No. Entonces la gente va o el Anticop, vas, o sea, el ir es súper importante porque tiras el suelo de la basura y estás cuerpo a cuerpo con una realidad que que el algoritmo imperialista quiere que no nos llegue, tu salir. Claro. El problema es que te insista. Está tan de moda, "muerte al turismo," que no es fácil hablar de que hay contraturismos muy importantes. Siempre lo han habido no? O sea, cuando los zapatistas dicen vengan, pasan cosas que no pasan.O sea que hay que ir, no. A huevo, hay que ir. Entonces, y eso es un contraturismo. Y el zapatista está super consciente. No viene puro gringo aquí, puros güerito. Cuál es el pedo así se politizan. Sí, yo creo que es más de clase media no tratar de [00:53:00] buscarle la deriva y darle la vuelta a la industria. Mmm. Y simplemente decir merte a todo el turismo. Pues sí, en la teoría suena muy bien, pero en lo práctica va ganando. Chris: Mmm, claro, y así pues me gustaría preguntarte también de ese hospitalidad radical, pero siento que muchos caen intentar a definir lo que es.Pero entonces me gustaría nada más de preguntarte igual de peregrinaje, si quieres, de si has en tus viajes o en casa, o sea en tu colonia barrio, encontrado lo que llamarías tu hospitalidad radical, en el camino.Alf: Mira yo, esto es algo que aprendí. O sea lo que lo que llama hospitalidad radical es algo que yo hice en la práctica toda mi vida y solo después empecé a elaborar. Pues yo me moví toda mi vida y me sigo moviendo principalmente en el underground. Queda de contracultura. Y pero por ejemplo, yo en el punk, en las [00:54:00] patinetas, como en la izquierda radical en general, con todas sus ramas, toda la vida, he ido y han venido.Y mi casa siempre ha sido la casa de mucha gente y es una práctica que no me había sentado a pensar, no?. Ese no quedarse en el hotel, ese tú llevar a la gente a pasear y mostrarle los lugares ocultos de la ciudad, no los lugares como limpios y en inglés. O sea, es algo que en el Punk y en el anarquismo de esas cosas está muy metido, no?Y yo tengo casa en muchos lugares del mundo porque también he dado casa a mucha gente de muchos lugares del mundo, desde muy chavita, desde tours de skate cuando tenía 14 años, llegaba gente de todos lados y se quedaban en mi casa y yo no me daba cuenta de que es algo, que si tú te vas al peregrinaje, la hospitalidad radical o como queremos llamar, a lo previo a los boom's inmobiliarios, turísticos. Pues siempre existió no? Siempre he existido, no? Entonces nada. Para mí es raro hablarlo porque porque para mí, no se cuestiona, no? O sea, yo recibo gente todo el tiempo y me [00:55:00] recibe gente todo el tiempo de de mucho. Últimamente ya se hizo más internacional. Pero antes era más entre pues, las sociedades chiquitas, lo que sea.Entonces yo te podía contar toda mi historia, a partir de ese eje, si tú quieres. Pero pero mi punto es que es una práctica que yo tengo integrada. O sea, no, nunca me la cuestioné. O sea, y yo como mucho lo que queda en la contracultura, lo que queda underground o sea, mucha gente así lo vive este. Y cada vez que a mí me invita, por ejemplo, la última vez que me invitaron a un pueblo, fue Yasnaya, que ya habíamos quedado de ir.Porque el programa lo escuchan los Mixes y todo. Y yo le dije "claro que sí." O sea a mí en el momento en que me digas cuando voy, yo voy. Y para mí hay algo, o sea, tiene que venir de un pueblo como el Mixe, la invitación para que no sea turismo. Para mí, tiene que haber un receptor explícito y una invitación. O sea, es parte de la economía del regalo y esas cosas que, que en los sures siempre hemos hecho y en el abajo siempre hemos hecho consciente o inconscientemente.Creo que ahora hay que empezar [00:56:00] a elaborarla también. Ahora que empezar a teorizarlo y pensarlo porque conforme avanza, la propiedad privada de la colonización, pues se va perdiendo esos comunalismos, porque son prácticas que los pueblos tienen, que las clases populares tienen, que los undergrounds. La gente se mueve todo el tiempo, todo el tiempo.Solo no se mueve de maneras fancy y y cool. O sea, la foto no es la bonita del Instagram. Entonces, por lo tanto, esa práctica que a mí lo interesa es la práctica, no tanto la conceptualización o la imagen. Pues no la logramos reproducir y va ganando el turismo comercial. Por darte otro ejemplo, varios pueblos en el sureste también me hablaban de turismo alternativo. Y, por ejemplo, armaban varias cosas con los pueblos alrededor pidiéndole permiso, volviendo al al 40% de la propiedad social y esa parte la constitución que habría que pedir que nos regresen, le pedían permiso a todos los ejidos. Entonces ibas en bici o pajareando [00:57:00] las cosas que hacen turismo normal, pero hablaban con los dueños de los ejidos con el de la propiedad social que yo y los zapatistas y mucha gente defendemos y le decían bueno, "voy a traer gringos que que como quieren que le hagamos. Pues da tu caguama" o "cuánto les vas a cobrar?" Y para mí es contraturismo, fíjate, y caminando con ellos en esos territorios. Lo aprendes. O sea, escuchando programas de radio y leyendo libros va a estar cabrón. O sea, hay que ir, no este y fíjate que interesante, porque ese 40% de esa propiedad social, pues bien, que podría recibir la lana, que se le da el hotel? No? Porque mucha de esta gente está muy precarizada, entonces no simplemente decir "ah, a la verga, el dinero en el turismo," sino a quien se lo damos y por qué. Cuando fíjate, yo veo en los pueblos ya iniciativas muy chidas de redistribución para este lado. Hay un montón de cooperativas muy chidas que redistribuyen lo opuesto a lo que hay un hotel. Pero volvemos al tema, pues como "no [00:58:00] son cool" y no tienen el diseño más chido y y no son influencers."Pues nadie se entera que que hay prácticas comunalistas que incluyen la movilidad de entre pueblos y entre personas muy chidas. O sea, la verdad. Yo he visto muchas proyectos de cooperativismo contraturístico increíbles. Entonces, bueno, eso. La gente que hace caminantes informativas, como pedagogías de caminantes como contraturísticas. Hay un montón de gente y un montón de cosas, historiadores radicales, ahí que hacen sus sus contradiscursos y llevan a la gente. Osea, yo creo que hay muchas, para mi, hay mucha esperanza ahí. Lo que pasa es que no la conectamos. O sea justo el algoritmo hace que no la alcances a ver y que te quedes, o sea, esa información, pon tu que la postan, no te va a llegar, no? O sea, está diseñado pa que no te llegue. Entonces, pero hay un montón de cosas muy chidas. Yo no vivo esa [00:59:00] distopia triste, que mucha gente vive de "yo valio verga". "Hay que dejar de movernos." Yo no lo vivo. Tampoco hay que ultra movernos. Yo pienso que el nomadismo en la clase media ya es una forma de de despojo también. Hay como no forzado en las clases medias. No abajo. Pero bueno, yo no lo vivo con esta doom ccomo sea. Condena. O sea, como de, ah, todo movimiento está de la verga, que hay gente muy esencialista que tu dice. "Todo turismo es una mierda."Y diría, bueno, pues vives con mucha culpa. Wey está muy bien. Se llama catolicismo. Y y lo conozco muy bien. Hay otras formas. O sea sin tanta culpa, le puedes dar tu lana a gente chida y no va a solucionar el problema, pero vaya que está más chido que dárselo al hotel y al colonialista y al que rompió la propiedad social.O sea, estás si algo haces, no es mínimo, pero algo haces. Pues eso a mi me ha tocado ver cositas que digo bueno, aquí hay algo no, [01:00:00] aquí hay algo. Pasa que también muchas veces iniciativas como rechazan "lo cool" no quieren ser muy visibles y no quieren ser muy famosas, pues ahí es el problema del comercio justo y el comercio alternativo, que busca, busca hacer un poco invisible a veces.Eso es problemático, no? Porque entonces, como mandamos a la banda con la banda chida, si la banda chida no quiere que le manden banda siempre. O sea, no quiere hacer negocio, no quiere hacer negocio porque se vuelve capitalistas. En fin. Pero ese, ese es otro problema, no el problema del cooperativismo.Chris: Claro. Ya pues, sobrebordando con temas y plática hermosa, Alf, pero si puedo antes de de terminar, me gustaría preguntarte sobre tu nuevo libro. No Existe Dique Capaz de Contener al Océano Furioso. Nos podrías contar un poco de que trata y cómo tus trabajos anteriores han influido en [01:01:00] ese nuevo?Alf: Sí, Chris: has mencionado un poquito, pero Alf: ajá. Este es un libro que que pueden comprar en varias librerías Volcana, en Polilla y ahí donde estás con don Gregorio, pronto queremos tener en Jícara, en Utópicas, en casa Casa Tomada y conmigo en internet, y lo pueden descargar en el PDF. Envíos. Yo hago también a todo el mundo. Pero, bueno, es un libro que básicamente, para decirlo en una frase, es mi experiencia y mi elaboración sobre el anarquismo o la izquierda radical en general. Básicamente. O sea, te cuenta un poco mi historia de vida y como yo lo viví, lo recibí. Y qué es lo que yo he investigado y pensado sobre una práctica? Que en este momento la historia le podría unos ya anarquismo, pero en otro me momento se llama otras formas, pero sí, como antiautoritaria, etcétera. Entonces, el libro es eso. O sea, es un ensayo personal, pero también es un [01:02:00] ensayo político filosófico, no? Entonces van las dos. Te voy narrando mi vida, pero también te voy narrando la historia de estas ideas y cómo las hevisto, en la práctica y practicado hasta dónde he podido.Mmm. Chris: Pues este me voy a asegurar que esos lugares en al menos en Oaxaca y además en línea, van a estar listados en el sitio web del fin de turismo cuando lance el episodio y este, pues en nombre de nuestros oyentes Alf, me gustaría expresarte mi más sincero agradecimiento por tu disposición de acompañarnos hoy, hablar estos temas complejos y garantizar que esta disidencia tenga un lugar en el mundo.Muchísimas gracias. Y cómo podríamos este encontrar tu trabajo en línea? O sea por redes sociales o Alf: Si? Lamentablemente, me encantaría que no, no tuviera que ser por ahí. Pero no, no me [01:03:00] quedó de otra. Si, mi trabajo principalmente yo tengo dos libros afuera que se consiguen las librerías que mencioné. Lo que hago como locutora se encuentra gratis en todos lados, es Un Sueño Largo Ancho y Hondo. Es u arroba @1slaaahh en varias redes sociales. Y nada le ponen ahí en internet y les va a salir gratis y como lo platicaba antes, pues todo va muy junto. Mi parte de ficción y mi parte pedagógica y política va bastante unificada.Es más o menos la misma onda pero si, digamos lo más inmediato es escucharla lo que hago, llevo varios años haciendo, como locutora. Entonces nada más le da un click y ya está. Y les pido ahí que me den likecito que me den el porque hasta ahora no, no hay quien si, o sea, yo no trabajo para una [01:04:00] radio difusora que se encargue en mis redes y que yo nada más llegue a grabar y estaría bien a gusto, pero no, pues yo la autogestiono.Entonces, por ahora, si es necesario, el likecito y el compartir. Chris: Claro. Pues también esos van a estar en el sitio web de fin de turismo cuando lanza el episodio. Entonces, pues muchísimas gracias Alf. Alf: Gracias, Chris.English Transcription.Chris: [00:00:00] Welcome to the podcast The End of Tourism, Alf. Nice to talk to you today.Chris: I'd like to start this off by asking you where you are today and how the world looks through your eyes?Alf: Today I am in my kitchen. I work from there. In Mexico City, in a neighborhood called Iztaccihuatl. How does the world look? Well, look, I don't have a bad view. This is not a big building, but I have a nice view, right? I mean, my view is not blocked by another building or anything. You can see a lot of plants. And well, I guess you know that I am from the provinces. So I have always felt that where I live is like a little bit of a province in the capital, because there are no such big buildings.This one and well, from here you can see it, I forget that I'm in CDMX now, you knowChris: Thank you. Well, you are, among other things, the author of several [00:01:00] texts, including Pepitas de Calabaza and the very recent No Existe Dique Capaz de Contenedor al Océano Furioso. You also coordinated the translation into Spanish of the English text of Militancia Alegre:Let Resistance Bloom in Toxic Times. (or Joyful Militancy) That translation was followed by a companion podcast with Pamela Carmona titled Emerging Joy: Undoing Rigid Radicalism. So, to start, I'd like to ask you how you came across the book Joyful Militancy and what led you to translate it.Alf: I knew that book. I tell you a little bit about it in the prologue, but I knew that book, in the United States, because I had a band. I played drums in a hardcore punk band for many, many years. And so that's how I got to the United States and being [00:02:00] in the American underground, which was an important part of my life, being in California specifically.I found that book in a cafe and I fell in love with it. So I brought it and first I read it in English with some people and very slowly I started to work on that book, translating. That's a longer story that's right there in the prologue, but well, I've been campaigning for that book for years. There were also a series of coincidences with very kind people like Tumba a la Casa, like the Canadian authors, the rights were given to us. The people from Traficantes de Sueno got involved.I mean, there are actually a lot of people. It's like a network of networks, that book and a series of coincidences and favors and nice gestures from many people who made it come out the way it did, really. I mean, I think it's unrepeatable, that series of factors. Aha.Chris: Oh, cool. All right. Well, that book was originally [00:03:00] published in 2016. After reading, re-reading, and tran

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Building Texas Business
Ep089: Dig World's Rise with Jacob Robinson

Building Texas Business

Play Episode Listen Later Apr 9, 2025 31:34


In this episode of the Building Texas Business Podcast, I sit down with Jacob Robinson, the founder of Dig World, a construction-themed amusement park. Jacob's journey from owning a commercial cleaning business to launching a theme park was inspired by his son Pierce's courage in overcoming a severe illness. Jacob shares how this personal experience drove him to create a space where families can make lasting memories by operating real construction equipment. We also explore Jacob's unexpected invitation to appear on Shark Tank, which initially seemed too good to be true. Jacob describes the rigorous preparation process for the show and how securing a deal with Robert Herjavec provided significant exposure and credibility for Dig World. This experience sparked interest in franchise opportunities nationwide, propelling the business forward. However, Jacob's path has not been without challenges. He reflects on the operational setbacks faced during Dig World's grand opening and the importance of resilience in entrepreneurship. Jacob emphasizes learning from these failures and the need to be patient and ready for success. Throughout the episode, Jacob discusses his leadership evolution, focusing on servant leadership and building a passionate, customer-focused team. He highlights the importance of creating a culture of trust and creativity to ensure a safe and memorable experience for all visitors. Jacob remains committed to expanding DigWorld while offering an affordable alternative to traditional family outings. SHOW HIGHLIGHTS I discussed Jacob Robinson's inspiring journey from running a commercial cleaning company to founding Dig World, a construction-themed amusement park inspired by his son Pierce's battle with a severe illness. Jacob shared the story of how an unexpected email invitation led to his appearance on Shark Tank, which resulted in a significant deal with Robert Herjavec and propelled Dig World into the national spotlight. We explored the challenges faced during Dig World's opening day, highlighting the operational setbacks that resulted in temporary closure and how these experiences taught valuable lessons about patience and readiness. Jacob explained the development of custom technology to enhance safety and functionality in the park's machinery, ensuring a secure and manageable experience for visitors operating real construction equipment. We discussed the importance of building a passionate and customer-focused team, emphasizing a culture of creativity and care that enhances the visitor experience and supports the company's mission. Jacob described his evolution from a fear-driven leadership style to one centered on servant leadership, focusing on resilience and motivating his team positively through setbacks. As Dig World plans for expansion, Jacob remains committed to offering an affordable, enriching alternative to traditional family outings, while also contemplating new mascots and improvements to machinery safety. LINKSShow Notes Previous Episodes About BoyarMiller About Dig World GUESTS Jacob RobinsonAbout Jacob TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: Jacob, I want to welcome you to Building Texas Business. Thanks for taking time to come on the podcast. Jacob: No, thank you. I'm so honored to be here. Chris: So we can see from behind you. You know Dig World's your company. Take a minute to tell the listeners what Dig World is. What do you do? What are you known for? Jacob: Yeah, great question. So we are a construction theme park where we allow kids and adults to operate real construction equipment. So we let them drive real skid steers, real excavators, real UTVs would take you up and boom lifts, the whole deal. And the only thing is you need to be three years old or older. And so we truly are a fun family theme park, but we allow you to operate real construction equipment. Chris: Wow, I mean, that's amazing Real construction equipment. I can't wait to get into more of the details behind that, but first I have to ask you what was the inspiration to start a company like this? Jacob: Yeah, it's crazy. You don't wake up with a dream every day to start a construction theme park. Chris: Yeah, maybe a construction theme park, but not one where a three-year-old can operate. That's right. Jacob: That's fair? That's fair? Well, no. So we, my wife and I, were blessed. We have three amazing kids. We have nine-year-old, a five-year-old and almost a two-year-old, and so life is good and hectic right now. But my nine-year-old son, pierce, was born in 2015, a happy, healthy baby boy, and life progressed just normally and just fine. And then, in 2017, one morning on a Saturday morning, my wife found him in his crib unconscious and after rushing him to the hospital, we learned that he had contracted bacterial meningitis. We weren't sure if he was going to make it through the weekend, but the Lord had different plans. He was in a coma 12 days and we were in the hospital 75 days. And when we left the hospital, pierce left with a whole host of issues he's nonverbal, he's epileptic, he's deaf in both ears, you know, wheelchair and mental capacity of call it maybe a one-year-old, but but he is a happy little boy and, as I was telling somebody else, you know Pierce sees the world the way that we should all see the world. He doesn't see your skin color. He doesn't see your income. He doesn't see what car you drive. As long as you hang out with them, you've, we could bring people together. You know, you conceptually always understand that life is short, but when you're faced with something like that, you really understand that life is short and precious and so you want to bring people together and create memories and have good times and not just look up and say, man, all I did was work for 40, 50 years. And here I am, and so we had this idea. You know, as I told somebody, we're pretty good arrogant Texans. We thought we could build a theme park. It couldn't be that hard, right. And man, we were wrong and we'll get into that, I'm sure, at some point in the show. But Pierce's always loved construction equipment garbage trucks, dump trucks, really thinking that whole, everything in that category. And so we said, hey, we really think we could build a theme park where kids could actually come and operate real construction equipment. And for the listeners out there, some of you may be thinking, oh, this must be some toned down version. No, these are real. These are 3027s, these are 305s, these are 243 skid steers, and so these are the real deal that we have re-engineered to where it's safe, but these are the real deal that you get to operate the park. So that's how we got started. Pierce is the inspiration behind the park, the inspiration behind really a lot of things that I do in life, and bringing people together to create memories that last a lifetime. Chris: My gosh, I mean what? I mean? That's a mic drop story, jacob. I mean, you know, blessings to you and Pierce and your whole family. I hope to get the chance to meet him one day. Yes, he's the coolest member of our family. So, yes, that is amazing. So, wow. I love the inspiration and the story and this whole idea of bringing people and families together for those memories. So were you in the construction business when you started this, or what? Jacob: were you doing? I would say yes and no. I had a commercial cleaning company. I started in 2015. That was my job. We just recently sold that business and where we started that business was in the construction cleaning space. So anytime a general contractor would go and build a big building or a hotel or an office building, we would come in, we would work for the general contractor and we would do the final clean on that building. So I was kind of in the construction space. We, you know we answered to GCs all day, but I am not a construction guy by trade. I was an ag major at Texas A&M, so I was a janitor turned theme park guy. So it's been a very interesting career, as you can ask my CPA wife from all the meandering roads that we've taken. Chris: Yeah, so you know we're on inspiration. So then let's yeah, let's kind of dig into what a lot of entrepreneurs and business owners you know face is that first step right Of actually getting the courage to, to chase that dream. So let's take us back to that. What was that like? You know what were, you know what were the first steps like, what were the feelings? Like? How'd you convince that CPA wife that you know CPA wife that this wasn't quite as crazy as it sounded? Jacob: Yes, I'm not sure, when we crossed that line that the craziness went out the window. We may have been there for a couple of years, but I would say to those entrepreneurs out there it's easy to say and it's cliche to say, but everybody sees the end of the story, everybody sees Dig World. Now We've been open, we're on Shark Tank, we're franchising. You know everybody's going ah, great idea. Listen, that was not the case when we first started. We went back and counted. I had roughly 248 pitch meetings where they told me no, that I was crazy, it was never going to work. Nobody's ever going to come to this, nobody's. You know, it's not safe All these kinds of things. And so 248, it's a lot of meetings. It's a lot of meetings. It's a lot of no's. It's a lot of no's. To keep coming home and go, no, it was a good meeting. It was a good meeting. What did they give you? Money? Not at all, quite the opposite, but it was a good meeting, right? And so to those entrepreneurs out there that you, you, if you're pounding your head against the pavement and going, man, if one more person tells me no, hey, I've been there with you, I know what that's like. Keep pressing on, keep going. If you have the vision and you have the conviction behind it, I promise you, at some point you are going to find somebody that believes in your vision for no other reason than you've just been at it for so long and you've got conviction behind it that somebody will take a flyer on you. But it was difficult. It was difficult. We started in 2019, and then COVID hit right, and so we told people not only were we the crazy theme park people running around asking people to invest, but then we were the crazy people saying hey, listen, not only are we going to build it, we're going to get a whole bunch of people together. And that messaging wasn't going over very well during COVID, and so you know, we had all of these factors that were not going in our favor. And then, finally, in 21, in 2021, we had a first couple of people start to say yes, and then Domino's started to fall, and then we opened in March of 2022. And, frankly, that was an epic failure, too, that we can talk about as well, but it was a long journey. It was a long journey, and so my encouragement to those that are out there, either on that journey or those that are at the beginning of that journey is take a step, just take a step. Right, do something. Just call somebody and say your dream out loud, right? Call somebody and say hey, listen, I'm going to let a three-year-old drive a skid steer. Right, and the more you start to say it out loud, the better that muscle is going to become being flexed. And then, all of a sudden, you're going to be the confident person that walks in the room and goes no, yeah, of course we're going to put a three-year-old on skid steer. We're going to let them drive an excavator. We're going to have birthday parties here, and then, hey, guess what they? But that theme of just take the step, just do it just go for it. Chris: No one's ever going to believe it as much as you do, so you got to have that passion and belief and eventually you will find someone to get behind you, and then it's on you to deliver. Right, that's right, that's right, that's exactly right. So I do want to get to the story on the opening, but I have to ask you mentioned it earlier, so how did the Shark Tank thing come about? How did you, how'd you wind up on Shark Tank? Let's talk a little bit about that experience and what that was like. Jacob: Yeah, an amazing experience, you know, it just was fantastic all around. An exhausting experience nonetheless, but it was a fantastic experience. You know, we were very blessed. One day I was sitting at my computer and we got an email to our info account and said hey, would you consider being on season 16 of Shark Tank? And clearly we thought it was a joke, right, and clearly thought something was going to be hacked if I responded to it. Chris: Don't click the attachment right, that's right, that's right. Jacob: All of a sudden our bank account gets hacked. But it was actually one of the producers. She had seen us on Instagram and said, hey, listen, would you be interested? Let's learn more about your business, see if it checks a lot of these boxes. And then that started the whole process. And the process is rigorous and it's long, and your fate hangs in the hands of people that you never get to see or talk to. And you know it goes from one lawyer to another lawyer. None of those lawyers have talked to each other, and so the whole process is very interesting. And then you know the show is true. It's true to form. The only thing scripted about the show is the very beginning pitch that you give, and other than that, it's a free for all. The Sharks don't know about your business, they don't have a flyer on your business, they haven't been given any information. It's truly a live pitch pitching again when I'm like, hey, no, hold on, we got the park open, I don't need to pitch anybody again. Plenty of people have told me no, I don't need, you know, five people on national television to blast me and tell me no. But so when we got there, we did the pitch and we were very blessed it went well. We secured a deal from Robert Herjavec, the tech entrepreneur on the show. He's one of the staple sharks and it's just been a great experience and once there's one of those things that you look up and you really have to sit in the fact that it's one of those once in a lifetime crazy things. And even yesterday I was driving to the grocery store and I sat there and I was like man, this really happened. That's crazy and just trying to enjoy those moments. Chris: Well, and it has to be. I mean, it's great that it worked out and you got, you know, some additional investment from a very seasoned person, but just the notoriety of being on right Open, you know, a lot of eyes to you and had to, you know, you know, increase traction and interest in what you were doing. Jacob: Totally. I think, from even, just you know, foot traffic to the park here in Katy. That that's been tremendous. But then even, obviously, you know we went on the show to sell franchises. That that's our next big hurdle is selling franchises across the country and we have been flooded with requests of franchises to bring people, you know, bring a park to their location, their city. Talking to potential franchisees, it really just just totally gasoline on the fire. Chris: Yeah. So let's go back to the opening. You said March 2022. One of the things I like to talk to people about is let's talk about a failure that you've encountered and most people will tell you can do a whole show on them, right. Literally, I was going to say you don't have enough time on this, but you know you shared that. I guess the opening didn't go so well or something around that. So let's talk about what were some of the failures around that. What did you learn that made you better going forward? Jacob: That's right. You know, I tell people one day when I'm, when I give it, when I give a speech one day at a theme park conference, I'm going to be able to tell people I'm one of the very few theme park operators in the world that has opened a theme park and closed it the same day because it went so poorly. And so you know, I do have that badge of honor with me. So we opened the park too soon and that was a hundred percent my fault, right you too soon, and that was 100% my fault, right? You're trying to you build in these parameters in your head. We got to open this date. We got to do this. You know people are waiting and I really wanted it to be open that Thursday of spring break back in 2022. Could I have waited 48 hours more and would that have fixed our problems? Yes, did I? No, and I think a lot of it was. You know, we had been at this for four years. At this point, we were exhausted and here was the finish line. The finish line was on Thursday and we could do this and everybody's gonna love it. Tickets were sold out there. There was plenty of buzz. You know we were being interviewed from broadcaster. You know I was on NPR and we're doing this interview in this country and all over the US, and there was so much media attention. We had helicopters circling over the park doing filming, getting ready for the opening, and when we opened, man, it was an epic disaster, and the reason it was is I pushed the grand opening. All of our machines were not ready. We had not put on our technology of all the machines, not that we were letting people operate those machines, but we did not have enough time built in to put a computer on this machine, and then this machine, and then this machine. And so what happened is we opened the park to hundreds and hundreds of people and we didn't have that many machines going, and so those hundreds and hundreds of people waited in line for hours and it was just disastrous. And people were angry at me, rightfully so. People wanted to tell me what they thought about me, and rightfully so. The amount of refunds that we issued that day were it was probably dollar for dollar, we probably made $0 that day or just lost money, and so we had to shut the park down. So so I go on, and we, you know we were open. We were going to be open that Thursday, friday, saturday, sunday, and I just canceled everything and said hey, I'm so sorry, we're not going to be open, we'll refund you your tickets or you can come back whenever you want. And, man, people were so mad at us. They were so mad at us. The news was doing coverage about how Dig World closed in less than 24 hours and it was a disaster, an epic failure. And so you know you go home that night and something you had been working for four years, there was no, nothing good about it. There wasn't even. There was no silver lining, like you could be, like well, but no, it was terrible and kids left crying. I mean, just like I said, just terrible. And my wife will tell you that, looking back on that night, she goes hey, I thought I lost you mentally that night, like I thought you were so down in the dumps that night that I didn't know where we were going to go from here. And yeah, I remember the next day waking up, I was trying to, I was going to take my son on a walk and I remember getting halfway out of the neighborhood and having to turn around, got to go back into the office. We've got to go on the offensive here and really try to say hey, listen, we're sorry, let's own the mistake right. Hey, we opened too soon, please come back. And so I think you look at it right and it just was one of those epic failures, and we've had many more along the way, right? Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom, and thanks for listening to the show. Jacob: I was thinking of just trying to figure out how to run a theme park, and we've never run a theme park, but that was one. That's an easy recall when somebody asked me to talk about failure. Chris: Right, like you almost were there right Reliving it that day. Jacob: Oh man yes. Chris: Well, the lesson, though, in that you found the positive and I think it's true in so many different circumstances. We're all going to make mistakes, right, we've made them in the past. One thing certain we're going to make them again in the future, it's owning it right, be this, taking ownership of it, and then kind of committing to do better. I think when you do that, you know what, more times than not, what comes from that is grace. You know people grace to you, and I think that's what it seems like what you've experienced. Right, you owned it, so we're going to do better. The community gave you grace, and when you open back up, they came. Jacob: I think don't pass the blame, Even honestly, even if it's not really your blame, right? People want somebody to stand up and say, hey, it's on me, and I think we don't see that a lot of times in leadership throughout you know, whatever. But people willing to say, hey, that was on me, I'm gonna raise my hand, that was on me. And then the key is forgetting quickly and moving on right and not dwelling which, whatever you do, operate out of imagination, not memory. Right, Don't go back there, sit in those failures operate out of imagination, not memory. Chris: That's a good one. I haven't heard that one before I'm writing it down. Jacob: I would like to take credit for it, but somebody much smarter than me said it, so yeah, right. Chris: So I want to talk a little bit about technology and innovation because, I mean, I know these are, you know, big machinery used out in the construction. There's nothing really innovative about them, but it seems to me that using them in your theme park has to have some innovation and technology to make them safe, as you've described them. So you know, tell us about that. How did you come up with it or did you, or where did you find it? Jacob: it? Yeah, great question. So, yes, yes, all of the above. I know I did not come up with it, I'm not smart enough to write code, but we partnered with an engineer and we said hey, listen, this is what we want to do. We believe this can happen. And what we did, in simplistic terms, we built our own computer to put onto the back of the machine. That goes into its wiring to override a lot of the functionality of it. And so when we call it dig world mode, when the computer's in dig world mode, it is safe. The excavators are stationary, they can't go forward and backwards, they only go certain degrees to the right and left and up and down. Our skid steers are heavily governed, the hydraulics and a lot of functionalities are disengaged. We have kill switches and then we can flip the computer back to normal mode and it's a normal functioning machine. And so really, coming alongside a bright engineering team and building this technology that's our technology and putting it on these machines is really outside the box kind of stuff. And finding somebody that wanted to dream alongside with us was the key to success there. And he's still dreaming alongside with us. I mean he had made a technology upgrade this past week. That's one of those things you look at and you go why didn't we do that three years ago? That makes things a lot, you know not safer, they were very safe it makes it simpler for our team to utilize, and so we're always improving. I think that's the other thing. You know you hear it all the time as an entrepreneur, but as a business owner, one of the things that's very easy to do is get stuck in a rut and go well, we've always done it that way, right? I had a call with my business partner this morning and he's newer to the team and he said well, why are we doing that? And I was like well, honestly, I don't know if we've ever asked that question. I think we've just done it and let's try something new here. And knowing that you don't always have the right answers, and your teammate you may have a high school kid that works for you, like I do that comes to you and goes hey, why, why aren't we doing it like this? Could we do it like this? And you go it's a genius idea, let's do it that way. Yeah, and being okay and putting your pride aside and saying let's change and adapt. Chris: Right. So you're clearly kind of in the entertainment business. Let's talk about building a team right, because I think I mean clearly you've got an internal team there, I guess in the office that's got to run the company, some creativity around it, but then you have another team, that's, you know, customer facing. How have you gone about building kind of each of those teams to try to maximize the company's success? Jacob: Yeah, it's a great question, Thank you. I would say, yeah, our two teams I'd almost kind of say like our corporate team. Right, our corporate team is the X's and O's business focus. How do we grow the franchises? How do we optimize the P&L? And really the key to success there is not to overstate cliches, but like go hire somebody smarter than you and go hire somebody that is great at your weaknesses and then give them the reins to run it. I don't go in your lane, you know how to run it. I trust you explicitly. I've given you the keys of the kingdom because if not, if I'm just going to micromanage you, then why would I even have you on my team? That's demeaning to you. I'm going to end up doing the work anyways because I'm a control freak. So I'm going to go hire somebody that really knows what they're doing and say go, do it right. Or my business partner he oversees a lot of different things, but one of them is the marketing, and today he said hey, listen, do we want to spend here? Do you want to spend here? I think the answer is here. Yep, let's go there right, if you think that's interview going. Hey, this is what we sleep and breathe here. We love the customer, we love that people are here. We're going to love on them and we're going to make memories. Can you do that? And that's what I'm going to hire and fire against. If I see you out there and you're not loving on customers and you're not creating memories that last a lifetime, we're going to ask you to leave. But that's what you know from the beginning. We're going to hire and fire against. Do we love people and are we serving them well? And if we do those things, we're going to build a culture that people start to talk about. And every team meeting that we have, I kick off of hey, today we're going to love people and today we're going to think outside the box, and I know you had, you know, a long week at school. I'm asking you from nine to five today to dig deep and love on people because and when you really frame it up, we get to be a part of something so special and so unique. We get to really be a part of this kid or this family's memory bank, and hopefully in a good way. Right, there are going to be hundreds and hundreds of kids for the rest of their lives that are able to say man, when I was five I had my birthday party at this place called Dig World and I got to drive a real excavator. They're gonna tell that story for their whole life. We get to be a part of that. How humbling is that. And so when you really can set the picture for these kids, what we're doing here is not just a job. We're not here today to collect tickets and put you on a machine and say thank you for coming. We are ingraining ourselves into your memory bank, and when we can take that on in the privilege of that, then, man, we can really sky's the limit. Chris: Yeah, well, I could see if you get that light bulb to go off and kind of in any employee, right, it changes the whole dynamic, the mindset and luckily those high school kids I got to believe they're learning great life skills to have to deal with people on the fly. And that's what we do every day. Right, we're dealing with people as we as they come to us, and so that's exactly right. Jacob: And get to teaching that, hey, the customer's not always right Sometimes. You know we can stand our ground every now and then too, and so really, yeah, how do we handle conflict with each other? How do we handle conflict with a customer? You know those are skills that are in an online day and age are becoming less and less, so how do we actually stand in front of another human being and say, hey, listen, I know you're frustrated, let's figure out how we can work through this kind of deal. So hopefully we're teaching them things that can go far beyond Dig World. Chris: Yes, for sure. So we're here in Texas. You started this business here. Tell me some of the things that you found, or have found, to be advantageous about being a Texas-based business. Jacob: Oh man, so many, one. Obviously. Just the people right, the people buy in and they love it. They love supporting the business, they love supporting what we're trying to do here. And so, culturally, it's amazing to be here in Texas. We were fortunate when we started we had a partnership with Texas A&M, my alma mater and so I'm a little biased there but really getting their buy-in, and a university that saw what we were trying to do and said, hey, listen, let's go capture the next generation of construction workers and teach them about Texas A&M. Yes, but let's also teach them about this great industry of construction. And then really, just the flexibility of Texas. You know there's not many states you can just go out and, for the first and foremost, be like, hey, listen, we're going to start a theme park and it's going to let kids operate construction equipment, right, the flexibility and you know we went through the whole rigmarole and everything with insurance and the filings, but really the adaptability of the state and going, yeah, that sounds great, let's do that. And then everybody behind it. It's just, it's been amazing. Chris: That's great. So I'd like to talk about leadership, and you know you're clearly, as a founder and CEO, leader, but how do you think those leadership qualities have developed over time and how would you describe your leadership style? Jacob: Yeah, I tell people a lot of times I think there's two versions of Jacob as the leader. There is pre-Pierce getting sick and then there's post-Pierce getting sick. Not that the goals have changed. The goals are still. Listen, you're running a business. You got to make money and you got to keep the doors open right At the end of the day. That's the name of the game. But mindset around those have changed. The intensity around that has changed and the bigger picture around that has changed. So, for example, pre Pierce getting sick and our cleaning business, we lose a contract. I'm pretty frustrated. I'm probably a little panicky. We're getting a little desperate on how do we replace that contract. I'm driving the team harder. What are we selling? I'm micromanaging more because I'm feeling nervous and anxious. Right, post Pierce getting sick, the intensity is not gone, but the priorities are going hey, we lost the contract, okay, let's go home, let's reset. Tomorrow, we'll find another one. There's another one out there, let's go find another one. Right, and motivating the team that way, instead of fear-based whether it be my fear or the fear I'm instilling rather than going hey, we'll be fine, we're gonna keep doing what we're doing. We're gonna keep doing the X's and O's of the business and it will be there. And so I think, when failure of a grand opening and a grand closing comes, you go. Okay, listen, today was not a good day, today was a terrible day. However, I'm still here, my family's still here, and tomorrow we're going to figure out how we survive this and we're going to pick up and we're going to go to work tomorrow and we're going to figure it out, and then I think, at the end of the day, I'm a servant leader. I hope our high school kids see me doing things that I asked them to do. I hope they see me cleaning the bathrooms. I hope they see me doing this, not to manipulate them to saying, hey, you know, oh, jacob's doing it, I should go do it. No, I want you to see that we're all in this together, right, and I believe in it this much that I'm going to get in here with you and I'm not going do at that point is they go? Yeah, I'll go clean the bathrooms, right, and hey, jacob asked me to do it, I'll go do it because I know he would do it right, rather than the dictator style leadership or the authoritarian style leadership. So I think for me it's coming alongside them, servant leadership, getting in the trenches, dealing with the disgruntled customers and not just making them deal with it, all of those kinds of things, I think. Build in the goodwill with the team and they see somebody that wants to link arms with you, and then what it allows me to do is come alongside them on those times where I either have to discipline or I have to recorrect or reposition, and they go. Ok, I know. But I know at the end of the day, he loves me. I know at the end of the day, it's the best, even if he's firing me. You know at the end that you, moving on, I'm still going to be in your corner, and so I think I view my leadership in those two ways. Chris: I like that. I can identify with it as well, feel the same way. To me the servant leadership is so valuable, right? Your employees have to believe not only they've seen you do it, not that you will do it, they've seen you do it right, and that when you ask them to do it it's important and so that's great. You know, just thinking about the obviously a lot of stuff going on in our world and in any kind of different ways. But you know economically, you know legislatively, what are some of the headwinds, given all that that you kind of see facing dig world as you're kind of looking out over the next 30, 60, 90, 120 days, year, kind of yeah, yeah. Jacob: It's a great question. I would answer it two ways. One you know, as we look at the economics of our park and people coming to our park, you know what we feel like is we sit in that middle or probably lower to middle ground of your discretionary spending as a family, meaning. Meaning, as I compare it to a Disney right, and when the economy goes down a little bit or people are a little worried or nervous, the Disney vacation may go on the back burner. Right, because that's a significant financial investment into that. It's a great experience, but it's significant. Where we fall is on the lower end of that category, hopefully delivering the same memories and experiences and fun and joy, but the price point is significantly cheaper than that. So we feel in good times and in rougher times we hope to be a resource that allows those families to still create memories in that regard. Externally, as we look to grow franchises, the ups and downs of the economy can sway different investors. They can sway how they want to hold their money, what they want to do with their money, what they don't want to do with their money. Now my sales pitch to those individuals are hey, you could take your money and put it over here, or you could take your money and put it over here and you could kind of be in control of it, but you also can create something that's bigger than you for your community, for your family, things like that. So it it will be interesting to see what the next probably call it 120 days have in store for us as far as how we're received on the investment side. But right now, our focus on this phase one is how do we get five franchises across the finish line, and right now, praise the Lord, we're very close to hitting that number. And then we got to get them open and we have to produce right. Chris: At the end of the day, you have to produce and I understand you have two open now or the second one's about to open. Dallas will be open by the end of this year. That's correct. Okay, that's great. So I gotta ask. I mean, you're talking about disney, made me think. Do you have some kind of mascot or anybody like in a big suit when you show up at dig world? You know? Jacob: so. But he said I literally got off a phone call earlier we are, we've honed it into kind of two mascots that we want, and so that will be released soon once the debate can be decided within our team of which way we're going. Chris: Okay very good. So let's just kind of turn to a little more casual side. Yeah, you said you and Katie went to A&M. I'm taking those two data points and making an assumption you're a born and raised Texan, it's a great question. Jacob: It's a great assumption, but no, I am a son of a healthcare executive, and so I was born in Alabama, raised all over Texas, graduated high school in South Carolina, then came to A&M, met my wife, who is a Houstonian, who's a Katie girl and much smarter than I am, and so she had a real job after college, and so I followed her here and I've been here ever since. Chris: Okay, Great story. So just talking about Texas, you know you all have a favorite spot. You like to go within the state to get away, maybe vacation time. Jacob: Yeah, you know it's funny whenever, within the state, melissa and I we love to head over to San Antonio. We love the Hill Country side. We like a couple of the resorts there. That's our, our getaway. And then I think you know when we're getting away. Now we've got young kids. Grandparents and cousins and nephews live in waco and so we head over to waco. We spend a lot of time there. But if melissa and I are just getting away and staying in the state, we're gonna head probably over to san antonio very good. Chris: That leads me to the next question then do you prefer tex-mex or barbecue? Jacob: oh man, that's. Oh man, see that one. That's a tricky question because we'd have to be like specific in the subcategory right. Like'd have, we'd have to like pit two against each other. Chris: I hear you. Everyone says that that's the hardest question saved for last. Jacob: Oh, my goodness, I'm going to have to go barbecue. I'm going to have to go barbecue. Chris: All right, all right. I love how you're going to break it down, though, cause I'm the same way. You know. It's like. Well, I don't know, it depends, I mean it depends it just. Jacob: You know, on Friday night this weekend I had Tex-Mex. On Saturday I had barbecue. So you know like it literally is, but I'd have to go barbecue. Chris: All right, very good. Well, jacob, thank you again for taking time to come on the podcast. I mean your story, obviously from the start of it with Pierce, was amazing, but just such a creative, unique thing that you've created. And you know, just wish you the best of success, thank you. Thank you, honored to be here today. Thank you for taking time Special Guest: Jacob Robinson.

The End of Tourism
S6 #3 | La Peregrinacion Entre Mundos | Anny Puac & Jairo Lemus

The End of Tourism

Play Episode Listen Later Apr 1, 2025 69:04


Mis entrevistados en este episodio son Anny Gabriela Ventura Puac y Jairo Chamalé Lemus. Anny es ajquij(guía espiritual), politóloga e investigadora, actual curadora en jefe de Espacio/C. Nacida en Chuwila, Chichicastenango, Quiché, Guatemala. Es mujer Maya Kiche con identidad diversa, sanadora y contadora del tiempo. Tiene estudios en Ciencias Políticas y Sociales, Relaciones Internacionales y una especialidad en ODS para Naciones Indígenas. Es confundadora de Espacio C, en dónde se ha desempeñado como gestora cultural desde 2013 y curadora en Jefe desde 2023.En Guatemala su trabajo está presente en diversos espacios sociales, políticos y culturales, como consultora independiente para organizaciones no gubernamentales, trabajando con niñas, mujeres y adolescentes mayas y no mayas a nivel nacional, en temas concretos como empoderamiento político, salud (diabetes / VIH) y sanación desde la Cosmovisión Maya.Jairo es persona disidente, del territorio Poqomam de Mixco, viajero e investigador se la religiosidad popular, las expresiones culturales y la espiritualidad de su contexto cercano. Es guía de turismo y estudiante de antropología.Notas del EpisodioAnny y Jairo y el Cristo NegroEl camino de peregrinacion entre Mixco y OaxacaQuirio Catano y las origines del cristo negroLas diversas formas de sacrificar y bailarLas colonizaciones de EquipulasEl base de cristo negro en el mundo maya/mexicaEl crisis climatico y la falta de ofrendasLas consecuencias de la perdida de hospitalidadLa memoria vivida del intercambio intercultural antiguaTarea Abisaí Navarro María Jacinta Xón / Proyecto Tux Cocina Gourmet de OrigenHoja de Pacaya - InstagramLos Cofrades Chichicastenango - Instagramespacio/C arte+memoria - InstagramTranscripcion en espanol (English Below)S6 - Anny Puac & Jairo - Peregrinacion a EsquipulasChris: [00:00:00] Bienvenida y bienvenido al podcast El Fin del Turismo Annie y Jairo. Gracias a ambos por acompañarme hoy. Me encantaría que pudieran contarles a nuestros oyentes desde dónde llaman y cómo aparece el mundo ahí para cada uno de ustedes.Anny: Muchas gracias, Chris y buenos días a quienes nos escuchen o buenas tardes o buenas noches, dependiendo su zona horaria.Mi nombre es Anny y yo le saludo desde el territorio maya K'iche' de Chuwila, K'iche' Guatemala específicamente.Jairo: Buenos días a ambos, para mi un gusto estar por acá. Sawe ta inteer winaq (Buenos días a todas y todos) mucho gusto desde el territorio pues Poqomam de Mixco y también desde las cercanías a la ciudad de Guatemala, pues gracias por esta [00:01:00] oportunidad para compartir conocimiento.Chris: Y gracias a ustedes dos. Yo estoy aquí en Oaxaca y el mundo parece obviamente un poco raro. Bueno, quizás no es obvio, pero parece más raro día por día. Estamos aquí hoy para hablar de Esquipulas en Guatemala. Y Esquipulas es el lugar de varias iglesias que han abergado al cristo negro de la ciudad, que es famosa por sus supuestos milagros durante los últimos cuatro siglos.De manera similar, la peregrinación al santuario es la más grande de América Central y la segunda más grande de las Américas, con lo que leí, 5 millones de personas que lo visitan cada año. Ahora, para empezar, ¿Estarían dispuestos a explicar que impulsó a cada uno [00:02:00] de sus intereses o relaciones con este lugar y la práctica de la peregrinación?Anny: Sí, por supuesto Chris. Pues, yo desde como mi relación, digamos personal o individual como familia, yo tengo, digamos, como clara la idea de cuando inician estas peregrinaciones, de pronto, cuando yo ya tenía unos siete u ocho años de edad, así, para decirte que yo tengo claridad, pero cuando yo retrocedo a los archivos de la familia, pues veo que el tema de peregrinar a Esquipulas, pues comienza con mis abuelas.Jairo: Entonces yo te podría decir que dentro de mi familia, la peregrinación a Esquipulas , así quizá llevará mínimamente unos 80 años presente en la familia, sobre todo del lado de [00:03:00] mi abuela materna. Que ella es de un territorio K'iche' de Quetzaltenango, en donde pues empezaban el viaje, en conjunto, allá fuera un viaje de barrio organizado por el barrio, o era un viaje familiar, entonces se iban uno o dos buses en aquel tiempo cuando no había tanto transporte, verdad? Era un lujo también irse por alguna ruta en donde hubiera paso para bus. Y pues, lo que no se pudiera transitar ya en bus, pues se hacía caminando, se hacían burros, pero, más o menos por ahí viene un poquito la historia de de cómo inician estas rutas de peregrinaje en mi familia, digamos. Con el caso de nosotros, yo no tengo conciencia de pequeño de haber, pues, llegado a Esquipulas. Bueno, hay un dato bien interesante, cuando yo cumplo 40 días de haber nacido, mi familia decide llevarme a [00:04:00] Esquipulas, eso pues está en el archivo fotográfico de la familia como agradecimiento, porque al final nací con... nací bien.Jairo: Y entonces la familia decide peregrinar es el dato más cercano que tengo de la personal de las idas a Esquipulas. Claro, esto siempre lo he tenido muy familiarizado dentro de mi contexto cercano, puesto que la gente pues de mi municipio suele ir justo organizada en excursiones de las diferentes organizaciones religiosas que hay en mi municipio.Estas, pues designan fechas y son buses llenos de aproximadamente 50 personas. Cada bus suelen llegar hasta tres, de acá de Mixco, pues que se van para para Esquipulas. Y ese es algo bien interesante porque es pues, parte de la modernidad, digámoslo ir en bus, pero hay muchas anécdotas de las personas de acá del pueblo que [00:05:00] cuentan cómo, pues iban de una forma más rústica, verdad? Que podía ser, pues en peregrinaje caminando, que no era la única peregrinación, de hecho la del cristo negro de Esquipulas. Hoy puntualmente, vamos a hablar de ella.Pero pues están también las peregrinaciones Antigua Guatemala que está aquí cerquita, aquí detrás de nosotros hay un cerro que es el cerro Alux. Este cerro se cruzaba, pues caminando, todavía lo hace la gente caminando porque detrás del cerro está, pues la bajada para llegar a la Antigua Guatemala.Chris: Gracias. Gracias a ustedes. Pues así, por conocer un poco más de sus historias, como de peregrinación, me gustaría saber un poco más si se podrían ofrecer algo de la larga historia de Esquipulas, del cristo negro y pues, ¿Cómo se originó la la peregrinación? ¿De donde viene esa historia?.Jairo: Bueno, como lo mencioné antes, diciendo algunas [00:06:00] palabras en el idioma poqomam. Es el idioma que se hablaba, pues en nuestro pueblo. Lo voy a decir nuevamente más despacio para, pues, describirles que es lo que dije, técnicamente es:Sawe' ta inteer winaq, kiroo wilkee' chipam ma' q 'oriik taqee, reh ma' ojeer winaq reh qatinimiit Mixko' buenos días a todos. Qué gusto pues poder compartir estas palabras y también un poco de la historia de la gente antigua de nuestro pueblo. Porque pues, la verdad es que el peregrinaje a Esquipulas está muy relacionado e intrínseco con la gente de Mixco y justamente también con el territorio oaxaqueño. Mi nombre, pues es Jairo, Jairo Andrés Chamale Lemus. Yo pues pertenezco a este territorio, a la gente maya poqomam. De acá es la mitad de mi familia de mis antepasados. Y , pues me dedico al turismo. Yo soy guía [00:07:00] de turistas de hace aproximadamente ocho años ya desde que me gradué muy joven. Y, pues me he dedicado justo a peregrinar para que las personas conozcan también el contexto histórico de Guatemala y de las diferentes expresiones culturales, religiosas y también de resistencia de la gente en el territorio de lo que ahora conocemos como Guatemala.Pues también, soy estudiante de la carrera de antropología, de la licenciatura específicamente en antropología, y pues me he dedicado también a estudiar el caso del idioma maya poqomam en Mixco, que es una comunidad muy cercana a la ciudad de Guatemala, que hemos tenido pues un impacto, demográfico y social, pues bastante fuerte, pues debido al crecimiento del área metropolitana de la ciudad de Guatemala. Es algo a lo que me he dedicado a estudiar durante los últimos años. Y también, pues, a [00:08:00] documentarlo, porque tenemos muchas prácticas culturales y espirituales en nuestro pueblo, que han ido desapareciendo conforme este avance demográfico de la ciudad, muchísimas gracias. Rontyoox aq'oo taAnny: Bueno Chris. En realidad hay un registro, digamos histórico, donde dice que el primer peregrinaje que se inicia a Esquipulas, fue en Marzo 1595, cuando la imagen sale del taller de este señor escultor Quirio Cataño, que sale hacia Esquipulas, hacia Chiquimula. Esto está al oriente de Guatemala. Nosotros lo conocemos como la zona caliente de de Guatemala. Pero es la zona, digamos, como caliente árida. Es un territorio en donde hay comunidad Xinca, Popti', si no estoy mal Chortí también. Y pues, la producción que se [00:09:00] tiene por las tierras de por allá, estamos hablando de frutas de algunas plantas, de algunos tubérculos más o menos, pero más que todos se dedican a la fruta, verdad.Esta primera peregrinación la documenta y la registra el cronista, que se llama Miguel Álvarez. Y él dice que, cuando cuando salióó del taller y se dirigió hacia Esquipulas la imagen iba haciendo diferentes milagros en todo el recorrido hasta llegar a la basílica. Entonces habían personas que le pedían justamente que, que por favor que la imagen pasara por lo menos una noche dentro de la casa de las personas para, bendecirlo. Y Y más o menos se calcula cada año, digamos en la actualidad, ahora en Guatemala y en alrededor de 300 mil personas de todo el mundo, más que todo entre México, Centroamérica, países del sur, por ejemplo de Perú [00:10:00] de Ecuador de Ecuador, Bolivia, si no estoy mal, es como mucha la cantidad de gente que llega, más o menos entre noviembre, que ahorita es como una fecha de noviembre y diciembre y todo enero, digamos, esas son como los tres meses de muchísima más afluencia de personas que llegan llegan a la basílica, verdad? Entonces se le puede llamar romerías, se le puede llamar una peregrinacion que peregrinación, usualmente, pues ahí si que las personas que visitan puede ser que hagan así como un día de visita nada más o puede ser que pueda prolongarse una visita hasta por 10, 15 días, verdad?De la ciudad de Guatemala, hasta Esquipulas hay una distancia más o menos como entre unos 220 a 250 kilómetros y se recorre, si vas como en romería, pasando por lugares como muy puntuales de toda la peregrinación, en promedio [00:11:00] cada día tú vas haciendo un tramo de 40 kilómetros, al día, digamos si tu intención es ir en peregrinaje así. Entonces eso es más o menos como más datos históricos y el relato, verdad?Chris: Y estoy un poco curioso, dentro de las estancias, al llegar a Esquipulas, si yo fuera peregrinando, por ejemplo, ¿ Qué haría? ¿Se van parando para hacer sus rezos? Me gustaría saber por alguien que nunca ha hecho una peregrinación, como aparecía esos días antes de venir.Anny: Bueno, yo te voy a contar un poquito el relato de de mi familia porque mi abuela materna, ella sí era una señora, pues muy católica, no? Entonces, pues ella, su peregrinaje, digamos para ella, era su sacrificio, verdad? En el año, decir bueno, por agradecimiento [00:12:00] a mi salud, a los milagros que me concedió, porque era como muy devota. Era el hecho de salir en ruta de peregrinaje. ¿Qué implicaba esto? Inclusive, preparar comida para no digamos como perder el tiempo, tú pensando en qué comer durante el camino, porque la idea para ellos y para ellas era, pues, ir en como en recogimiento, en rezo constante, en oración, digamos en petición, ir como parando cada cierto tiempo, verdad? Cada 40 kilómetros, porque que ya dentro de la comunidad, católica-cristiana, hay puntos que están como marcados dentro de la ruta en donde tú puedes ir parando con cada familia, porque puede ser que tengan una réplica de la imagen del cristo negro, porque de hecho, cuando fue la primera peregrinación, puede ser que esta familia haya sido una de las [00:13:00] familias que recibió por primera vez el cristo negro.Entonces se convierte como en ese punto de de parada, verdad? Entonces, cuando hacen ese punto de parada, pues ya bajan. Bajan a hacer oración, bajan a platicar y a convivir con las personas de pronto, a compartir un alimento. Ya sentir, pues, así que también como su fé, su devoción, pero al mismo tiempo su convivencia, su alegría en este, en este tramo de compartir no?.Entonces eso digamos, es lo que usualmente, pues se ve. Yo también he visto otras personas que, por ejemplo, ya cuando quedan unos, son los últimos 20 kilómetros de recorrido por ejemplo, descienden de sus vehículos y caminan de rodillas esos 20 kilómetros hasta llegar a la basílica. Entonces, pues, los ves, ya puede ser que sea solo el papá con con el hijo, o el papá y la mamá, o pues la diversidad de personas que puedan llegar, que van y que pues hacen su penitencia, y [00:14:00] entregan digamos, pues su sacrificio de esta forma. Así como hay personas que puede ser que, que durante toda su ruta de peregrinaje, hay un ejemplo de unos, de unas personas cercanas a nosotros que tienen un conjunto de marimba, de música, y pues lo que hacen es que van con un vehículo y van ejecutando música todo el trayecto hasta llegar a Esquipulas, y ya cuando llegan a la basílica, bajan con sus instrumentos y se dedican a cantar ya sea una canción, un tiempo, verdad?Ahí, entonces, pues yo creo que depende, varía mucho de lo que te puedas tú dedicar o el agradecimiento que tú quieras pues dar, o a lo que, pues, lo que tu corazón salga, no? En mi caso como muy puntual, pues nosotros hacemos el recorrido completo los 220 kilómetros en vehículo hasta llegar a Esquipulas. Y luego, pues ahí ya, o sea, nos establecemos [00:15:00] y como nuestras dinámicas son un tanto como diferentes porque yo no soy católica. Yo soy de la cosmovisión maya, y pues ahí he crecido buena parte de mi vida. Mi concepción como de ver esta ruta de peregrinaje es diferente, porque si bien es cierto el que el cristo negro, pues es una figura de un cristo crucificado cristiano, Jesús, nosotros aprendimos a ver cómo la historia del pueblo Poptí y Chorti y Chortí, en cuanto a que esta ruta de peregrinaje es bien interesante, porque durante toda tu ruta más, más o menos, me atrevería a decir que tal vez un 70 de la ruta, tú vas encontrando montañas de obsidiana, entonces es una ruta que en sí es una ruta de sanación y para nosotros, digamos dentro de la cosmovisión maya está muy relacionada con el Nahual Tijax, que es la obsidiana y para [00:16:00] quizá buena parte de Oaxaca o de su Istmo o de la cultura Náhuatl, por ejemplo, está relacionado con Tezcatlipoca que era justamente esta veneración de esta mujer que decían que era brillante y color de cobrizo y de nigriso verdad? Y por tanto, Y pues tú sabes que ambas piedras o estos relatos que nos cuentan, pues es justamente sanación y de ahí que nosotros creemos que por eso el cristo negro es tan milagroso cuando se trata de temas de salud.Jairo: Desde nuestro lado, por así decirlo, forma parte ya de un peregrinaje que no solamente se hace el 15 de enero. Claro, el 15 de enero es el día establecido para hacer el peregrinaje de cristo negro de Esquipulas. Pero pues, muchos de los grupos que les comentaba que son bastante diversos acá en Mixco, grupos religiosos principalmente católicos, o pues sincretizados de [00:17:00] alguna forma, establecen también estas visitas como parte de su organización dentro del grupo de personas que inciden.Y entonces si, justamente dentro del bus, también se suele, pues, ir rezando el rosario, que es esta práctica de ir rezando las novenas con un orden establecido con cantos y la gente, pues suele ir desde que salen de ciudad de Guatemala o desde que salen de acá desde Mixco, que hay que cruzar la ciudad y luego la ruta hacia el oriente de Guatemala, la gente va haciendo estas oraciones cada cierto tiempo, pero depende mucho del grupo y de qué tan católico sea de alguna forma, porque hay grupos que solamente lo hacen como una excursión claro. El fin principal es de la visita, pues a la basílica del cristo negro y la veneración de cristo negro como tal.Y, pues solamente llegan en en el bus hasta la basílica y algo que caracteriza mucho a la cultura de [00:18:00] Mixco, es el, la quema de pólvora. A nosotros nos fascina la pólvora y cuando llegamos a Esquipulas justamente esa es la premisa, no? Llegar a quemar bombas de sonido, de sonido estridente en aviso que la gente de Mixco ya llegó.Y también fuegos pirotécnicos de colores. Es bien curioso porque depende mucho del grupo y a lo que el grupo, pues aunque sea católico o sincretizado con lo maya, a lo que este grupo religiosamente se dedique, encaminado a eso va la actividad que se va a realizar allá.Tengo conocimiento de un grupo que, de hecho, ya se documentó a gracias al CECEG, al Centro de Estudios Culturales de la Universidad de San Carlos, de Guatemala, es el grupo El Baile de Moros de los Seis Toritos, que es básicamente un grupo de danza tradicional que nace en la aldea Lo De Bran que está acá en Mixco siempre dentro [00:19:00] del área metropolitana y ellos, pues se dedican a bailar El Torito. El Torito es básicamente la representación de una danza que se hace en alusión a dueños de una finca y el trato hacia los animales. Entonces los animales tienen una especie de de revelación contra este dueño de la finca, una historia bien, sutilmente contada desde lo maya también. Y entonces van a hacer esta representación de la danza a Esquipulas. Esto lo hacen justamente para la fiesta del cristo negro. Bailan todo el día, durante tres días seguidos frente al atrio de la iglesia de Esquipulas, mientras millones de personas visitan la basílica de cristo negro y en ese momento ellos están bailando ahí.Chris: Qué fascinante. Me encanta ese sentido, esa onda que, que hay tanta diversidad, en la forma, los caminos, las celebraciones que se niegue un poco [00:20:00] ese sentido occidental que es como de siempre asumir o buscar una sola respuesta, una sola historia, una sola manera, de actuar, de entender.Y así fue sorprendiente para mí por leer, por investigar las historias de Esquipulas y de las peregrinaciones porque encontré muchas historias diversas. Entonces voy a leer un poquito de lo que encontré y me gustaría escuchar de ustedes, si se podrían comentar un poco de si hay sentidos de "eso es como puro chisme o es un rumor" o si hay capas y capas dentro de las historias de Esquipulas y las peregrinaciones.Entonces, pues la primera va que "en la ciudad sagrada de Copán se celebraban grandes fiestas en honor [00:21:00] a dios maya Ek-Kampulá que significa: 'el que empuja las nubes', pues se le atribuía el poder de alejar las lluvias y permitir los días del sol necesarios para preparar la siembra.Ek-Kampulá que era de color negro, estaba rodeado con una antorcha en la mano izquierda. Su figura se puede apreciar en las graduadas de uno de los templos de Copán." Ahora, el segundo."Algunos relatos dicen que la figura del cristo negro fue ordenada por los conquistadores españoles en Guatemala en ese momento para facilitar la conversión de los pueblos locales al cristianismo."Ahora, el próximo. "Las leyendas piadosas afirman que la imagen se oscureció debido a los misioneros españoles que deseaban convertir a los [00:22:00] nativos que adoraban a la deidad nebulosa pagana Ek-Kampulá en el área que también era representada como una figura oscura." Entonces, supongo que mi pregunta es como, ¿Cuántas de estas historias han escuchado Y ¿Cuáles historias son las meras meras verdaderas según ustedes? O si hay capas y capas y capas de historias en qué todas merecen su lugar.Jairo: Yo creería que, Copán tiene un papel bien importante dentro de lo que estamos hablando. Ahora es un sitio arqueológico del área residencial o el castillo, por así decirlo, y los templos de la gente maya de ese tiempo, recordemos que es el clásico. Y pues esta ciudad fue colonizada por otra ciudad que se llama Quiriguá, que está siempre en las riberas del Río Motagua, un río muy [00:23:00] importante que comunica toda la parte de las montañas de Guatemala con el Caribe. Y en Copán si hay muchas expresiones espirituales. Seguro, Anny nos va a ampliar un poco más de esto. Pero lo que yo he visto son muchas expresiones, rituales espirituales y también, un centro de peregrinaje como tal ya fungía Copán. O sea, ya era una capital política, religiosa y cultural muy importante que está muy cerca de Esquipulas. Es increíblemente como un sitio maya tan importante del clásico está tan cerca a una ciudad, que es tan importante para todo el área mesoamericana. Es decir, desde México hasta Costa Rica, conocen al cristo negro de Esquipulas. Y pues también algo que a mi me llama la atención relacionado a lo que acabas de decir es como, Esquipulas, pues si es un referente para la gente pues católica, la gente católica que no es maya va [00:24:00] también a Esquipulas como una forma de peregrinaje, pero, a mi me llama mucho la atención, la práctica también de la espiritualidad maya y otras espiritualidades que se llevan a cabo en Esquipulas, no?quizás no es tan directamente relacionado con la figura que acabas de mencionar, que yo he escuchado como Ek-Chuah, sino que es esta figura de la piedra de los compadres, que es una leyenda, no? Una leyenda de adulterio, por así decirlo, en el cual hay dos piedras que están pegadas en alusión a dos amigos que llegan al peregrinaje de cristo negro de Esquipulas y en un acto sexual, estos compadres se quedan pegados como castigo por haber cometido el adulterio. Esa es la leyenda. Y en esa piedra, pues se practica la espiritualidad maya, es decir a pocos ni siquiera un kilómetro de la de la basílica del cristo negro de Esquipulas, puedes ver esta piedra donde la gente coloca, [00:25:00] pues, sus candelas, su incienso y hay altares dedicados completamente a la espiritualidad maya dentro del mismo pueblo.Entonces esto va un poco aunado a lo que nos decía Anny no? Como la figura de cristo negro, también es muy representativa y es la reminiscencia de algo que se practicó muy fuertemente durante la época prehispánica.Yo no descartaría del todo, pues el valor de Ek-Chuah dentro de estas prácticas espirituales y que sí, definitivamente los españoles, trataron de tomar elementos de la de la espiritualidad maya que ya eran importantes para imponer la religión católica. Pero la gente maya, yo siempre lo digo, fue muy estratega y lo es hasta la fecha para continuar resistiendo, practicando, pues la espiritualidad tamizado con elementos católicos y con este significado profundo.Anny: Sí, yo también voy a coincidir un poquito en el [00:26:00] tema de no descartaría la relación que se tiene con Ek-Chuah, porque está asociado con la deidad Chortí. El otro punto que tú hablabas del tema, un tanto político, sí hay algunos historiadores, políticos que justamente, enuncian este uso de figuras que está asociada con el trabajo y sobretodo, digamos a la carga y explotación laboral de los campesinos, y cómo también estas zonas fueron como fuertemente impactadas durante el tiempo de la colonia. Entonces eso, yo tampoco lo, lo descartaría y tampoco diría que es un mito. Por ejemplo, yo, sé que la antigua población de Esquipulas, fue una de las ciudades en este punto incendiadas por los españoles durante la invasión aquí a Guatemala el 1525 verdad?[00:27:00] En el centro de la plaza de Esquipulas, según cómo lo relatan, decía que habían, cuatro árboles de de pochotl que es la ceiba, que la ceiba pues ahí si que para nosotros es un árbol sagrado, verdad? Porque bajo sus sombras, siempre se han realizado ceremonias vinculadas con prácticas agrícolas, que duraban desde el solsticio de invierno hasta el equinoccio de primavera.Entonces se iniciaban más o menos también en esta zona por el 21 de diciembre, pero tenían ritualidades más unciosas, por ejemplo, como el 15 de enero. Y de ahí que parte que una de las fechas propicias para visitar Esquipulas sea 15 de enero. Entonces, las otras fechas de celebración que iban entre el equinoccio y el solsticio.Del 15 de enero al 25 de febrero, más o menos 40 días. Porque en 40 días estábamos viendo que se operaba el paso del sol por el cenit en la otra banda del [00:28:00] trópico, en un punto en donde estaba hasta cierto punto equidistante del círculo máximo de la tierra, donde según la posición del sol, se tomaba la medida del tiempo en que se produciría el fenómeno de la tierra que ya fuera el fenómeno del niño o de la niña, como se le nombra, verdad?Exactamente, se hacía esto dentro de los días comprendidos del 20 al 31 de enero, que es cuando se operan como los fenómenos en los hemisferios, y de ahí es como de donde viene esta creencia de las cabañuelas, de cuando muy va iniciando el año más o menos por ahí, entonces hay como una relación también ciclo-agrícola y por eso es que a mí no se me hace como un mito el hecho que está asociado con Ek-Chuah porque Ek-Chuah de hecho está asociado con en este, no me gusta llamarlo Dios, pero con la energía del trabajo, verdad? Porque me parece que esa es como la expresión correcta. En cuanto a lo del señor de Esquipulas, la [00:29:00] relación de las ceremonias con la natividad de cristo, digamos, así como el establecimiento de la festividad del señor de Esquipulas el 15 de enero, pues si siguen teniendo continuidad con las formas religiosas prehispánicas en el área maya guatemalteca, los antiguos habitantes de Esquipulas, si hay un relato, de Castañeda que lo mencionan en lo en el 55 que se dice que , "adoraban a un Dios que era el protector de las siembras de la cosecha y del trabajo."Esto lo dice, este historiador "que seguramente él dice no pertenecía a las deidades mesoamericanas, especialmente al panteón mexica, universado en momentos previos a la llegada de los españoles. La representación antropomorfa de las deidades no era desconocida en Mesoamérica, por el contrario, era abundante y generalizada desde Sinaloa hasta Honduras. [00:30:00] Además, 'del Dios principal,' el comenta fray Diego Durán, 'él hace como una alusión, con Tezcatlipoca, que él dice era una piedra muy relumbrante y negra como azabache obsidiano. Piedra de la que ellos hacen navajas y cuchillos para cortar.' Además, ciudades era de palo entallada en una figura de un hombre todo negro de las sienes para abajo con la frente, narices y boca blanca, de color de indio bestia" dice él, "de algunos atavíos galanos a su indiano modo a lo primero que tenía era unos ojeras de oro y otras de plata. En el labio bajo tenía un bezote de laverde cristalino en el que está metida una pluma verde y otras veces es azul, que después de afuera parece esmeralda o rubí. Era este bezote como un geme de largo encima de coleta de caballos que tenían la cabeza. Entonces, lo que se puede apreciar en esta descripción [00:31:00] de Tezcatlipoca corresponde casi literalmente a lo que se pudo percibir como la primera figura del cristo negro, especialmente en la representación de las imágenes talladas en madera que se veneraban en las ciudades periféricas del imperio mexica. La diferencia en el atuendo de ambas deidades radican las connotaciones religiosas de cada una de las culturas, materias, simbologías, espirituales y atributos, pero en esencial es parecido e indescutible indiscutible.Recordemos que la celebración principal, digamos de la obsidiana de Tezcatlipoca y de lo que tú mencionabas relacionado con el tema de las lluvias, pues era justamente esto, la petición para que lloviera, sobre todo por ser tierras en este punto, muy áridas, muy secas . Y bueno, yo me quedo por aquí.Chris: Bueno, muchas gracias Anny y Jairo, para explicar un poco de eso. Entonces, [00:32:00] así, me gustaría preguntar cómo dar los cambios en los objetos de los mayas a los cristianos y la naturaleza de la peregrinación, hacia el turismo. Es una pregunta rara, pero, ¿Ustedes creen que los viejos alimentos, o energías, o antepasados todavía se alimentan?Es decir, para vivir en un lugar ya una década que tiene una sequía, que también saqueo, que va empeorando y empeorando, poco a poco me voy pensando si hay una falta de rezos de conocimiento, de recuerdo, de memoria, de ofrendas. Anny: Bueno, yo es en realidad esta sequía saqueo, esta crisis climática y toda la crisis alrededor de la tierra, a mí, en lo [00:33:00] personal y tanto en lo comunitario, a mí me parece que es una crisis a nivel comunitaria, nacional, mundial en donde todos los territorios, se han visto afectados. Por ejemplo, así como aquí en Guatemala, que tenemos zonas como muy áridas, muy secas, que por su propia condición geográfica en donde han estado, sin duda se ha intensificado en estos últimos años, derivado del saqueo del recurso natural, sobre todo en estas zonas del oriente de Guatemala que son montañas que están, pues ahí si que dedicadas a la explotación de material para la construcción. Hablemos de piedra, hablemos de arena, hablemos de cal, por ejemplo, y de otros elementos que son para la explotación minera. Así como hay otros aquí en Guatemala, donde pues la zona es bastante húmeda, pero sus montañas son [00:34:00] propicias para el oro, para la plata, para el cobre, para el zinc y para otros elementos. Entonces, yo si siento que aparte de que falte de repente un toj, un pagamento, o un Xukulem, como nosotros decimos, dar la gratitud a la tierra que sin duda, pues es evidente cuando, y eso es evidencia no solo en la explotación de la tierra, sino que es evidencia en el sentir de las personas, porque usualmente, se piensa que un peregrinaje únicamente es ir a ver una figura, verdad? O una persona, una deidad, un cristo, ir a esa energía y sentir la energía para yo recargarme, sin considerar que yo al momento que también me voy a recargar de esa energía, estoy siendo un tanto extractivista muchas veces con mi práctica. Pero mi práctica también va más allá de enajenarme de qué está pasando, porque si bien es cierto, tengo ahí al cristo negro frente a mí y soy muy devota, pero entender que el cristo negro también puede estar [00:35:00] presente en las montañas, en los ríos, en los valles, en los lagos, en las cuencas y en todo eso que a mí me da de comer, en todo eso que a mí me permite vivir. Entonces, yo creo que más allá de que falta un rezo, yo sí creo que falta mucha conciencia, mucho trabajo espiritual de hacerle ver a las personas, a los peregrinos, a las peregrinas que mi ruta de peregrinaje, o sea, por donde yo paso, existe porque hay un territorio, un territorio que es ajeno a mi territorio, pero que aun así yo paso porque voy a ver algo en específico, pero que eso también tiene un impacto y que eso también tiene una responsabilidad. Preocuparme por todo lo común que pasa alrededor de de mi territorio, de mi país, del mundo, por ejemplo. Entonces, Mas allá de yo decirte si mira, Chris, falta que la gente reze, falta que la gente ofrende para que ya no haya sequía, que si bien es cierto, tiene una parte súper importante, es muy espiritual y que nosotros que [00:36:00] hemos visto que es verdad. O sea, no es un mito, no es una mentira, sino que es verdad, pero tiene que ir de la mano la ritualidad con mi práctica, tiene que ir de la mano mi discurso con lo que yo estoy haciendo y con los enunciados y los postulados que yo tengo en mi compromiso con la tierra, verdad? Osea, para mí ese es como, como el punto focal, verdad?Jairo: Sí, Chris y Anny pues, también he de añadir que, mucho de la modernidad y la facilidad para poder llegar a establecer una ruta de peregrinaje, también, pues influye dentro de las prácticas sociales y culturales, y pues si de tal vez, una ofrenda o un rezo, también estoy de acuerdo con Anny en ese sentido, es la conciencia de las personas, no? Y no se trata en el caso de la gente, pues católica de ser anticuados y de decir, bueno, vamos a irnos callados todo el [00:37:00] camino, aunque eso es una práctica que hacía la gente antes, verdad? Lo nombro como la gente antigua de Mixco lo dice. Ya no se tiene el respeto, dice la gente, por llegar y ir en una ruta de oración y de pedir o de agradecer. Y pues, por tanto, llevar una actitud de respeto, sino que ya se toma como un viaje de excursión y puede llegar a pasar, cualquier cosa dentro de ese viaje a excepción que se visita a la basílica y se visita a cristo negro. Pero dentro de ese viaje también de muchas personas ya no toman en cuenta el significado, o siquiera la ruta en la que están atravesando, verdad?Creo que es parte de la influencia occidental, de alguna forma de los medios también, que no han difundido pues, esta historia, porque esto que estamos hablando no te lo cuentan en los medios de comunicación. Ni siquiera dentro de la iglesia católica. La iglesia católica te dice que está cristo negro de Esquipulas, que es un día reconocido [00:38:00] dentro de la espiritualidad, por así decirlo, guatemalteca, religiosidad popular, como querramos llamarlo, pero no te hacen este trasfondo histórico que hay dentro de él, verdad?Pues la iglesia católica se encarga de lo litúrgico si vamos a llamarlo de esa forma, se hace una misa, se participa dentro de las misas. Pues hay frailes franciscanos que están constantemente bendiciendo lo que se compra como souvenir dentro del lugar. Pero que más que una oración que haga falta, creo que si hace falta entender un poco más que es lo que estamos haciendo, pero pues es parte del cambio socio cultural influido, como digo por lo occidental de alguna forma, que está permeando pues esta memoria histórica en cuanto a la visita del cristo negro. No digo que deje de ser fuerte porque esto tiene muchísima fuerza todavía dentro del contexto mesoamericano.Chris: Claro, claro, [00:39:00] gracias a ustedes dos. Pues la mayoría de las pláticas en el podcast, son críticas, de lo que falta, lo que no hay, en en el mundo, en la cuestión del movimiento de viaje de devoción también, y agradecimiento.Bueno es obvio como las dinámicas transaccionales o capitalistas, etc afectan los movimientos de la gente. Cómo se proceden, como llegan, como piensen en sus movimientos, también queremos pensar en otros mundos, y parte de eso, tiene que ver con lo que algunos llaman la hospitalidad radical. Es decir, como lo más básico, según yo, la hospitalidad local, enraizado, para el extraño o extranjero o extranjera, etc. Entonces, tengo curiosidad por saber ¿Qué tipo de hospitalidad [00:40:00] radical ustedes han encontrado en Esquipulas o en la peregrinación, si es que han encontrado algo.Anny: Bueno, no te voy a hablar como mucho de esto, porque no tengo como una experiencia, porque no ha sido mi búsqueda también, como encontrar esto. Siento que es como un paso como más personal individual, quizá de de soledad, pero de de sentirte bien en el, así que solo, en el buen sentido.Te puedo decir que hay gente que tiene como muchas experiencias, verdad? De de encontrarse con las personas que abren las puertas de su casa para que estén, para que visiten, para que entren. Claro, ahorita pues mucha situación ha cambiado. Siento que la seguridad ya no es la misma. La situación que atraviesa Guatemala. La conflictividad que se ha ido acrecentando en estos últimos años con estas [00:41:00] miradas fascistas también, con la división entre iglesias, por ejemplo, entre protestantes fascistas, radicales, y protestantes neopentecostales. Y todavía medio que la iglesia evangélica presbiteriana, que es la que intenta mediar entre ambas y la iglesia católica. Todo esto, además que el oriente de Guatemala está catalogado como zonas de bastante menudeo de narco, corredores de narcotráfico también. Entonces, todas estas situaciones políticas y geopolíticas han ido modificando mucho el hecho de que tú busques tu propia protección y que la gente también, cuando no son épocas de de peregrinaje, no tiendan a abrir sus casas, sino que quizás las abren más como para cuando hay un poquito más de afluencia, pero ya es como muy poco ver este tipo de dinámicas. Lo otro es que mucha gente mayor, digamos de la zona ya ha [00:42:00] fallecido. Y pues ha quedado como gente joven, inclusive gente que no es ya de Esquipulas, sino que por tema laboral ha migrado ahí, entonces ya va perdiendo como un sentido de pertenencia, verdad? De como ese sentido de comunidad. Pero si algo yo puedo rescatar de hace como mucho tiempo y que nos queda de repente el bonito recuerdo y la historia que quizá Jairo quiere hablar ahí un poquito, es de cómo se fueron tejiendo ciertas rutas comerciales entre por ejemplo, Oaxaca, Mixco y la gente de que aprovechaba para ir a Esquipulas. Y también como pensar cómo fueron cambiando también los productos de consumo, porque ahora, pues, vemos una invasión de productos plásticos, verdad? Provenientes de China, de estas grandes pirámides de estafa que y de explotación de mano de obra en Malasia, que te viene producto chino también de por allá o de la india, por ejemplo. Vemos como la entrada de mucho de este, [00:43:00] de este producto, verdad?Entonces tampoco es que podamos estar hablando como de esta comunidad, o de encontrar como redes de comunidad en cuanto a la economía o en cuanto a la producción, porque es ahí si que tú sabes que el capitalismo es voraz y la globalización y todos estos factores que están pasando en este momento son muy crueles con las dinámicas y las formas de vida de acuerparnos, de querernos, de apapacharnos y que se intensifica cada vez más.Creo que ahí si que lo importante es, nombrarlo para que si alguien quizá no se había dado cuenta de cómo se han ido afectando las dinámicas. Pues ahora lo, se se pueda ver, verdad? Y que a veces también es un poco como egoísta de mi parte, porque ves ahí vamos al hecho de que, como yo solo lo voy una vez allá, pues no me importa al final, como si tejo o no tejo, verdad? Puede ser que sea el pensamiento de alguien, verdad? Bueno, yo [00:44:00] solo voy una vez, yo voy a lo que voy y no me importa pues si hay alguien ahí que me pueda acuerpar, recibir o lo que sea.Entonces también como estas dinámicas, estos pensamientos frívolos que también por la misma dinámica de la vida, de la economía y demás, se intensifican no? Entonces, pues yo pues yo, eso te podría decir.Jairo: Si, dentro de como el capitalismo, el sistema capitalista, ha influido también dentro de estas dinámicas. Yo puedo nombrar puntualmente durante las últimas veces que he ido a Esquipulas, justo desde acá de Mixco, como pues lo económico ha afectado, o sea, el nivel socioeconómico también determina lo que vas a llegar a hacer verdad? Porque muchas personas de que vienen de acá, ni siquiera pues ya piensan en hospedarse, sino que van en la noche, madrugada de un día, y se quedan en [00:45:00] el bus o solo van y peregrinan, rezan, dejan sus candelas, no se paga hotel y regresan, verdad? Eso ha sido en un par de ocasiones. Si bien, pues hay ahora opciones de hospedaje digámoslo de diferentes tipos, que se suelen reservar con anticipación. También está esta otra situación, que también deja un poco de lado a lo que se solía hacer de preparar comida, de llevar ya huevos duros, como le decimos nosotros, huevos cocidos con salsa de tomate, eso es muy de viajar en este contexto de Mixco, los tamales de viaje que les llamaban también que es básicamente pasta de maíz cocida con la tusa, que es la cáscara del maíz. Estos tamales, pues servían para eso, para poder mermar el hambre mientras se llegaba a Esquipulas y que ahora esto ha sido poco a poco reemplazado justo lo que nombraba Anny, por productos pre-elaborados, frituras, que no tienen ningún [00:46:00] sustento, ni siquiera enlazan, con la memoria de la cocina, sino que técnicamente es algo que se desecha. Y claro, la basura, también otro papel importante, porque tenemos poca educación o ninguna en cuanto al ambiente y las empresas que nos hacen responsables de sus paquetes, de sus sobrecitos, de sus botellas y todo esto, resulta en los caminos y, pues sí, es una ruta de peregrinaje, pero también hay basura plástica, verdad? Dentro de esa ruta de peregrinaje. Y, pues, nombrar también, este era un poquito la cereza del del pastel que yo quería dejar para esta conversación, porque, como las dinámicas económicas han afectado rutas comerciales y de peregrinaje que puede que lleven alrededor de 2 mil años de existir, verdad? Tu que te desenvuelves en Oaxaca, puedes preguntar sobre cristo negro de Esquipulas y vas a encontrar a mucha gente que es devota al cristo negro de Esquipulas [00:47:00] y que probablemente tengan una réplica, pues en varios lugares de Oaxaca. Sobre todo el área, pues de el Istmo, verdad? En el, en el área también, zapoteca, vas a encontrar mucha gente que es devota y producto, pues de ello eso, ya lo tenemos, pues registrado antropológicamente. Ya no se da, pero gracias a las abuelas de mi pueblo esto sobrevive y es como nosotros, como Mixco estamos en medio de una ruta comercial entre básicamente, el centro de México y el oriente de Guatemala que está hacia allá. Entonces, pues Esquipulas está casi, en un punto distinto a esta ruta, verdad?Pues hay una memoria de de cómo nuestra gente antigua de Mixco interactuaba comercialmente con gente que venía del centro de México. Y esto lo tenemos evidente en el uso de la indumentaria maya del Poqomam de Mixco, que tiene muchísima influencia de la indumentaria que viene del pueblo [00:48:00] zapoteca, y del pueblo mixteca, en Oaxaca y producto de ello, sé que en el audio no saldrá, pero lo voy a describir. Tenemos acá estas fajas, estas fajas vienen de santo Tomás Jalieza en Oaxaca. Las famosas fajas de Jalieza, que se utilizan en Oaxaca y que formaban parte de la indumentaria antigua de Mixco. Esto cambió más o menos a mediados de los años 60s.Hay memoria, yo escuché de boca de muchas de las señoras antiguas de acá de mi pueblo que decían, venían las mexicanas a vendernos ropa, técnicamente, pero no es la ruta de Tapachula moderna, ahora que se va por la costa, sino que se refieren a textiles. Y esto encontramos fotos, inclusive fotografías del siglo 19, de finales del siglo 19, principios del siglo 20 en el que vemos el uso de estas fajas, y las reconocemos técnicamente por esta figura que seguro, pues ya la, la verás más representada en en Oaxaca. [00:49:00] La gente acá en Mixco le dice a esto los bailadores, en Oaxaca les tienen un nombre, ahora específicamente, no lo recuerdo, pero es gracias a este danzante o bailador que reconocemos las fajas que vienen de ese lugar porque en Guatemala no encuentras ninguna otra faja que sea de este material, porque es lana, o bien puede ser bastante grueso el tejido en telar de cintura con estos diseños.Entonces, gracias a Abisaí Navarro, que ojalá pueda escuchar este material, es un amigo que es de Oaxaca, quien conocí por las redes sociales, en quien básicamente se ha dedicado a documentar las expresiones culturales también de Oaxaca y de la espiritualidad en los pueblos mixteca y zapoteca. Y él me envió estas fajas desde Oaxaca. Osea, yo ya no puedo decir las compré con señoras oaxaqueñas. Yo como mixqueño, no las compré con ellas porque ahora vienen en bus, la dinámica comercial cambió y además en Mixco ya no se usa la [00:50:00] indumentaria maya, de uso diario. Este es por un lado, y por el otro lado, también tenemos a este otro lugar que se llama Yalalag, que es gente zapoteca también, en el cual usan esta prenda sobre la cabeza, ellos le llaman tlacoyales o rodetes, que consiste pues en lana cruda, de de oveja teñida, colocado sobre la cabeza, que es la emulación, pues a una serpiente. Esto, pues, tampoco esto no lo traje de Oaxaca, esto lo conseguí pues gracias a una historiadora justamente de Chichicastenango que Anny conoce, María Jacinta Xón, ella pues su papá se dedicó muchísimo tiempo, y ella también se ha dedicado, pues a la elaboración de hilos y a la obtención de la seda, y el papá de ella que ya descansa, pues fue con quien pudimos investigar un poco de dónde venía esta lana. Esta lana ya no se produce ni siquiera en Chichicastenango, en el contexto de Anny, sino [00:51:00] que básicamente esta es la última que él tuvo la oportunidad de teñir, pero es exactamente la misma lana que inclusive él desconocía su procedencia sin pintar, de dónde venía.Y ahora esto ni siquiera aquí en Guatemala se consigue, entonces es la evidencia de cómo Mixco en medio de una ruta comercial entre básicamente todo el área de el Istmo y la costa sur hacia el oriente de Guatemala, que es otro mundo que, de no haber llegado la invasión española y de no haber este sistema que de alguna forma ha ladinizado decimos nosotros, o sea despojado de su identidad a la gente maya. Y, pues, tendríamos una gran diversidad también de personas en aquel territorio. Y pues es un poco de las dos prendas que acá en Mixco se utilizan todavía por las mujeres que participan en las cofradías, pero los nos hace pensar en las mujeres de Oaxaca también. Es bien curioso. Tengo un video que lo describe, si gustan lo pueden ver allá en mis redes sociales, [00:52:00] aparezco como "hoja de pacaya" y hay un video donde hablo de esto del tecoyal justamente.Anny: Si, Chris y algo que yo, quería como agregar nada más a la conversación. Es el hecho de que, en medio de esta forma de turismo que muchas veces es gentrificador y que también como que estas dinámicas de ir y venir hace que justamente todo alrededor de lo que sucede en Esquipulas pues cambie su dinámica Si bien es cierto, ahora cuando vas tú a Esquipulas, ya hay hoteles de repente, tal vez no de cadena, pero si de cinco estrellas. La gente ha intentado mantener hoteles que sean como de su familia. Pero eso no quita, por ejemplo, que ya haya más lugares de recreación, de consumo, de compra y de intercambio comercial.Porque pues tú sabes que al final, la situación económica, creo que a nivel mundial no es del todo buena para ninguno, [00:53:00] verdad? Entonces, pues siempre se busca la manera como de irte agenciando de ciertos fondos. Pero, ahora que lo pienso mejor, digamos en esta conversación, yo si puedo ver algo muy especial. Por ejemplo, aquí en Guatemala, hay dos lugares más en donde hay peregrinación a ver a cristo negro, que no tienes que ir a Esquipulas y que lo encuentras, aquí, de de donde yo vivo más o menos es a una hora, se llama Chinique de Las Flores. Y luego de Chinique de Las Flores a más o menos como unas tres horas, puedes llegar a Cunén. Cunén, también aquí en K'iche', que son estas, rutas de peregrinación para ir a ver también, réplicas del cristo negro de Esquipulas, pero que entonces ahí si te puedo decir que estamos encontrando aquello que una vez encontramos en Esquipulas [00:54:00] hace más de 400 años por así decirlo, 300 años.Entonces, lo estamos volviendo a encontrar ahí porque, claro, son zonas todavía de pronto un poco más pequeñas, en donde todavía el ambiente es más, comunal, comunitario, en donde, pues todavía es de pueblo, le decimos nosotros, todavía sí que está la esencia conservada de un pueblo. Entonces no se convierte en un lugar para ir a quedarte y pasar ahí una semana, que sé yo, sino que se convierte en un lugar de visita, de recogimiento de sí, ir a hacer tu tu peregrinaje, tu oración, tu penitencia.Entonces, a mí me parece que ahí todavía es en donde, donde se encuentra una esencia muy, muy rica.Chris: Pues, gracias a las energías, a los dioses y dioses que todavía hay lugares y gente que honran esas, esas tradiciones y las de también como Jairo [00:55:00] mencionó, que pues la memoria también está pegado dentro del textil, de tejido, justo tambien he visto como una una bebida chocolatosa tradicional aquí en Oaxaca que, según algunas personas tiene su origen en en el K'iche'. Aunque, se dice que ese proceso, esa receta no existe en el K'iche' ahora, pero todavía la memoria existe dentro de esas prácticas no? Entonces la cuestión de la hiper movilidad y el sentido de guerra constante en muchos sentidos en el el mundo contemporáneo, ¿Cómo piensan que, la peregrinación o las posibilidades de peregrinar pueden ofrecernos una manera, o maneras, o caminos a [00:56:00] socobar, la hiper movilidad, a la guerra, la comida chatarra como mencionaron, estas dinámicas y estructuras económicas que, pues nos están matando poco a poco? ¿Qué clave puede tener la peregrinación en un mundo donde queremos vivir?Anny: Pues yo creo que la responsabilidad de cada uno de nosotros que, que vamos con llevar también mensajes de esperanza, o sea, siempre hay rutas no? Está la ruta migratoria, está la ruta de la mariposa monarca. Está que esa peregrinación que hacen, van y vienen, y estas peregrinaciones que nosotros también hacemos como personas humanas, independientemente de si seamos cristianos o no, pero siempre hay una ruta que tú buscas de peregrinaje para sanar tus [00:57:00] dolores, tus enfermedades, tus traumas, tus miedos, así sea que tú vayas a peregrinar a una montaña, un volcán, un cerro, a una iglesia, a una basílica a donde sea.A mí lo importante, y lo que me parece a mi súper esperanzador es que tú tengas como también ese compromiso de compartir una luz con quienes tú te vayas encontrando en el camino. Puede ser que también tu peregrinaje entonces no parta desde el hecho de, ah voy a ir pensando solo en rezos, no, sino que, ¿Qué también puedo yo compartir en el camino?O sea que otras rutas también puedo ir yo dejando, mencionando, creo que esto lo hemos logrado con bastante efectividad cuando pensamos en las rutas migratorias y como podemos echarle una mano a les compas migrantes verdad?, Entonces a mí me parecería que una estrategia pues muy parecida, podría ayudar bastante, a ver esto con otros ojos y a ver esto, pues más allá de, [00:58:00] o sea, que que siempre podemos hacer varias cosas, cuando tenemos de repente solo una finalidad, pero al final podemos ir haciendo como mucho, entonces yo creo que como mensaje yo, eso te dejaría, o sea que, pues al final en medio de toda esta hiper movilidad, pues que la aprovechemos, no solo para quemar codos, sino para ir dejando otros mensajes a la gente, verdad? De cómo también nos vamos moviendo, movilizando, qué vamos pensando y qué está pasando alrededor del mundo. Jairo: Sí, bueno, entender que nuestras dinámicas han cambiado con el tiempo, que somos una generación que nos tocó ver cambios abismales dentro de las dinámicas de como nos hemos relacionado con otras personas, cómo aprendemos incluso porque ahora pues gracias a la hiper movilidad también, inclusive, pues a la tecnología conocemos nuevas cosas, pero no dejar de lado el en el caso, pues de la gente que peregrina, verdad? Las [00:59:00] reflexiones que hacíamos, el por qué se hace, un poquito, y también el que hacer de nosotros cuando vamos a un lugar y cuando nos movemos, verdad? El hecho de verdad estoy comprando con las personas que son de allí o me estoy yendo a meter un supermercado, de verdad esto beneficia la comunidad o esto beneficia a una empresa, pues que al final explota personas y que les compra super barato y regateado el producto, verdad? Creo que se ha mantenido, pues al menos en Esquipulas esa dinámica de consumir, pues lo que es de allí, la gente, pues esfuerza mucho porque saben que hay, personas de muchos contextos que vienen a ese lugar, por lo menos una vez al año. Entonces, entender estas dinámicas, creo que es un reto también dentro de nuestro contexto y entender también que el humano siempre se ha movido. Gracias a las personas [01:00:00] antiguas que se movieron hace 3 mil años hacia acá es que nosotros tenemos estas evidencias históricas y aprender de esas movilidades también, cómo nosotros generamos un buen impacto cuando nos estamos moviendo, pienso.Chris: Que vamos aprendiendo y recordando a la vez, cómo movernos con respeto y agradecimiento y devoción a lo que nos da vida. Vamos a asegurar que las imágenes de esos textiles hermosas, van a salir con el episodio, en el sitio web web de El Fin del Turismo. Y también los nombres y contactos si quieren de los compas que mencionaste Jairo. Y pues ha sido como un gran conversación, y me dan muchas ganas de seguir con esa [01:01:00] cuestión de peregrinación.Y en el nombre de de nuestros oyentes, me gustaría ofrecerles mis a agradecimientos más sinceros a ambos ustedes por acompañarnos hoy, y estar dispuestos a enfrentar y luchar con algunas de las contradicciones y pues también las colonizaciones que han afectado al acto y al arte de la peregrinación en nuestros tiempos. Si los oyentes tienen ganas a conocer más de lo que ustedes hacen en la vida, ¿Hay una manera de comunicar o conectar?Anny: Sí, por supuesto, en nuestras redes personales, yo soy la curadora en jefe actual de Espacio C, en Chichicastenango, entonces pues por ahí pueden , encontrarme en Instagram, o en Facebook, se escribe [01:02:00] ESPACIO/C ARTE+MEMORIA. Y luego en mis redes personales, por si alguien pues también desea buscar. Yo me encuentro en Instagram como "Anny Puac," así me pueden encontrar a mí también en Instagram para que pues vean, de pronto un poquito también de, de mi trabajo y, luego en nuestras redes comerciales como Los Cofrades Chichicastenango, así me pueden, nos pueden ir encontrando y pues ahora Jairo.Jairo: Gracias. Yo he tratado de crear contenido no de lleno, tampoco tan comercial. He hecho reflexiones en cuanto a estos elementos, ahí sí que de ambos lados, verdad? De la espiritualidad en Guatemala en general, tanto de lo católico como de lo maya, y cómo esto tiene un punto medular, es un poquito lo que ha sido mi [01:03:00] premisa durante los últimos años, evidenciar que no es netamente todo católico, cristiano y que hay elementos pues de la espiritualidad maya que prevalecen como lo que hablamos hoy.Me pueden encontrar pues, como Hoja de Pacaya en las redes sociales. La hoja de pacaya es la que se usa para decorar en las puertas de las fiestas acá en el contexto pues de Guatemala. La pacaya es una palma. También se come la flor durante los viajes, justo durante los peregrinajes. La flor de la pacaya se envuelve con huevo y se le pone salsa de tomate encima y es algo muy para viajar. Y pues, a la hoja de pacaya le dicen dentro del contexto guatemalteco a las personas que les gusta la fiesta y que no se pierden ninguna.Entonces es un poco la premisa de mi usuario, porque pues sí, me gusta documentar las fiestas, pues que se llevan a cabo en Guatemala con trasfondo, quizá de análisis [01:04:00] y de reflexión. Y pues, gracias por el espacio. Estoy muy agradecido por ello, a ambos. Chris: De nuevo, muchísimas gracias a ustedes dos por sus tiempos hoy, por sus reflexiones y sus compromisos en el mundo, en la vida. Anny: Qué gusto conocerte también. Y pues ahí estamos siempre en comunicación. Yo te de con un fuerte abrazo y no haber un fuerte abrazo a tierra que de Oaxaca también.English TranscriptionChris: [00:00:00] Welcome to the podcast The End of Tourism Annie and Jairo. Thank you both for joining me today. I would love for you to tell our listeners where you are calling from and what the world looks like there for each of you.Anny: Thank you very much, Chris, and good morning to everyone listening, or good afternoon or good evening, depending on your time zone.My name is Anny and I greet you from the K'iche' Mayan territory of Chuwila, K'iche' Guatemala specifically.Jairo: Good morning to both of you, it's a pleasure to be here. Sawe ta inteer winaq (Good morning to all of you) a pleasure from the Poqomam territory of Mixco and also from the outskirts of Guatemala City, thank you for this [00:01:00] opportunity to share knowledge.Chris: And thank you both. I'm here in Oaxaca and the world seems obviously a little weird. Well, maybe not obviously, but it seems weirder by the day. We're here today to talk about Esquipulas in Guatemala. And Esquipulas is the site of several churches that have housed the Black Christ of the town, which is famous for its supposed miracles for the past four centuries.Similarly, the pilgrimage to the shrine is the largest in Central America and the second largest in the Americas, with, from what I read, 5 million people visiting it every year. Now, to start, would you be willing to explain what prompted each of [00:02:00] your interests or relationships with this place and the practice of pilgrimage?Anny: Yes, of course Chris. Well, from my personal or individual relationship as a family, I have, let's say, a clear idea of when these pilgrimages began, suddenly, when I was about seven or eight years old, so, to tell you that I have clarity, but when I go back to the family archives, well, I see that the issue of going on pilgrimage to Esquipulas, well, it begins with my grandmothers.Jairo: So I could tell you that within my family, the pilgrimage to Esquipulas, well, maybe it has been present in the family for at least 80 years, especially on my maternal grandmother's side . She is from a K'iche' territory in Quetzaltenango , where they would begin the trip, together, there was a neighborhood trip organized by the neighborhood, or it was a family trip, so one or two buses would go at that time when there wasn't much transportation, right? It was also a luxury to go by some route where there was a bus stop. And well, what couldn't be traveled by bus, well, it was done on foot, they used donkeys, but, more or less that's where the story of how these pilgrimage routes began in my family, let's say.In our case, I was not aware of having arrived in Esquipulas when I was little. Well, there is a very interesting fact, when I was 40 days old, my family decided to take me to [00:04:00] Esquipulas, so that is in the family's photo archive as a thank you, because in the end I was born with... I was born well.Jairo: And then the family decides to go on a pilgrimage. This is the closest information I have about the person going to Esquipulas. Of course, I have always been very familiar with this within my immediate context, since people from my municipality tend to go organized in excursions from the different religious organizations that exist in my municipality.These, well, designate dates and are buses filled with approximately 50 people. Each bus usually arrives up to three, from here in Mixco, well, they go to Esquipulas. And that is something very interesting because it is, well, part of modernity, let's say going by bus, but there are many anecdotes from people from here in town who [00:05:00] tell how, well, they went in a more rustic way, right? It could be, well, on a walking pilgrimage, which was not the only pilgrimage, in fact that of the black Christ of Esquipulas. Today, specifically, we are going to talk about it.But there are also the pilgrimages to Antigua Guatemala, which is very close by. Here behind us there is a hill called Alux Hill. This hill was crossed on foot, and people still do so on foot, because behind the hill is the descent to get to Antigua Guatemala.Chris: Thank you. Thank you all. So, to learn a little more about your stories, like the pilgrimage, I would like to know a little more if you could offer something about the long history of Esquipulas, of the black Christ and well, how did the pilgrimage originate? Where does that story come from?Jairo: Well, as I mentioned before, saying some [00:06:00] words in the Poqomam language. It is the language that was spoken, well, in our town. I'm going to say it again more slowly to, well, describe to you what I said, technically it is:closely related and intrinsic to the people of Mixco and also to the Oaxacan territory.My name is Jairo, Jairo Andrés Chamale Lemus. I belong to this territory, to the Poqomam Mayan people. Half of my family and my ancestors are from here. And, well, I am dedicated to tourism. I have been a tourist guide for approximately eight years , since I graduated very young. And, well, I have dedicated myself to pilgrimages so that people also learn about the historical context of Guatemala and the different cultural, religious and also resistance expressions of the people in the territory of what we now know as Guatemala.Well, I am also a student of anthropology, specifically a bachelor's degree in anthropology, and I have also dedicated myself to studying the case of the Poqomam Mayan language in Mixco, which is a community very close to Guatemala City, which has had a very strong demographic and social impact, due to the growth of the metropolitan area of Guatemala City. It is something that I have dedicated myself to studying during the last few years. And also, well, to [00:08:00] documenting it, because we have many cultural and spiritual practices in our town, which have been disappearing as the city's demographic advances, thank you very much. Rontyoox aq'oo ta Anny: Well Chris . In fact there is a record, let's say historical , which says that the first pilgrimage to Esquipulas was in March 1595 , when the image left the workshop of this sculptor Quirio Cataño, heading towards Esquipulas, towards Chiquimula. This is in the east of Guatemala. We know it as the hot zone of Guatemala. But it is the zone, let's say, like hot arid . It is a territory where there is a Xinca, Popti' community, if I'm not mistaken, Chortí as well . And so, the production that is [00:09:00] They have in the lands over there, we are talking about fruits from some plants, some tubers more or less, but most of them are dedicated to fruit, right ?This first pilgrimage is documented and recorded by the chronicler, who is called Miguel Álvarez. And he says that, when he left from the workshop and headed towards Esquipulas, the image was performing different miracles along the way until reaching the basilica . Then there were people who asked him precisely that, please, that the image spend at least one night inside the house of people to bless it. And more or less it is estimated every year, let's say currently, now in Guatemala and around 300 thousand people from all over the world, mostly between Mexico, Central America, southern countries, for example from Peru [00:10:00] from Ecuador from Ecuador, Bolivia, if I'm not mistaken, it is like a lot of people who arrive, more or less between November, which right now is like a date from November to December and all of January, let's say, those are like the three months with the greatest influx of people who arrive at the basilica, right? So you can call it a pilgrimage , you can call it a pilgrimage, what pilgrimage, usually, well there if the people who visit can do like a day's visit only or it can be that a visit can be extended for up to 10, 15 days, right?From Guatemala City to Esquipulas there is a distance of approximately 220 to 250 kilometers and if you go on a pilgrimage, you go through very specific places along the entire pilgrimage, on average [00:11:00] Every day you are doing a stretch of 40 kilometers, a day, let's say if your intention is to go on a pilgrimage like that . So that's more or less like more historical data and the story, right?Chris: And I'm a little curious, inside the estancias, when I arrive at Esquipulas, if I were on a pilgrimage, for example, what would I do? Do they stop to say their prayers? I would like to know from someone who has never made a pilgrimage, how it looked those days before coming.Anny: Well, I'm going to tell you a little bit about my family's story because My maternal grandmother, she was a lady, very Catholic, right? So, for her, her pilgrimage, let's say, was her sacrifice, right? In the year, to say well, out of gratitude [00:12:00] to my health, to the miracles that she granted me, because she was very devout. It was the fact of going on a pilgrimage route. What did this imply? Even preparing food so as to not say waste time, thinking about what to eat along the way, because the idea for them was, well, to go in a kind of contemplation, in constant prayer, in prayer, let's say in petition, to stop every so often, right? Every 40 kilometers, because within the Catholic-Christian community, there are points that are marked within the route where you can stop with each family, because they may have a replica of the image of the black Christ, because in fact, when the first pilgrimage was, this family may have been one of the [00:13:00] families who first received the black Christ.So it becomes like that stopping point, right? So, when they make that stopping point, they go down. They go down to pray, they go down to talk and to socialize with people, maybe, to share a meal. And to feel, well, like thei

Building Texas Business
Ep088: Building Financial Innovations with Mason Brady

Building Texas Business

Play Episode Listen Later Mar 26, 2025 32:40


In this episode of Building Texas Business, I spoke with Mason Brady, founder and president of Brady CFO, about his entrepreneurial journey and the growth of his fractional CFO services firm. Mason shares how he transitioned from corporate CFO to entrepreneur after realizing the strong market demand for part-time CFO support among construction and agriculture businesses. Starting the business while supporting a family of five tested his comfort with risk and uncertainty. His firm now includes five CFOs who help businesses with revenues up to $75 million navigate financial decisions, capital access, and growth strategies. Brady CFO uses a unique team approach, pairing CFOs with analysts to deliver cost-effective services tailored to clients' needs. Recently relocated from California, Mason appreciates Texas's business-friendly environment and central location for serving clients nationwide. He focuses on helping entrepreneurs evolve as leaders while managing their growing companies, particularly in construction and agriculture where many face similar challenges around financial reporting and bonding requirements. SHOW HIGHLIGHTS I introduced Mason Brady, founder and president of Brady CFO, who shared his transition from a corporate CFO to an entrepreneur in the agriculture and construction sectors. Mason discussed the emotional and mental challenges of leaving a stable job, emphasizing the role of faith and family support in his decision-making process. We explored the importance of consistent sales activities for sustaining and growing a business, with Mason recommending that a significant portion of time be dedicated to new business development. Mason detailed Brady CFO's innovative business model, which pairs CFOs with South American financial analysts to optimize client service and provide cost-effective strategic financial services. The conversation included insights into the challenges faced by entrepreneurs in the construction industry, focusing on the transition from skilled professionals to business leaders and the importance of solid financial systems. Mason highlighted the need for effective delegation and trust in leadership roles within agribusiness, discussing the development of middle management and his experiences in Texas. We also talked about the advantages of operating a business in Texas, emphasizing its central location, economic activity, and more minimized regulations compared to other states. LINKSShow Notes Previous Episodes About BoyarMiller About Brady CFO GUESTS Mason BradyAbout Mason TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: Mason, I want to welcome you to Building Texas Business. Thanks for taking the time to come on the podcast, really looking forward to hearing what you have to tell us Awesome. Mason: Thank you, chris, really appreciate this opportunity. Chris: So let's just start introducing yourself to the listeners. Tell us about yourself and about Brady. Mason: CFO self. I'm a husband and father to three little girls, so that's the biggest priority of my life. I was just telling Chris earlier that we celebrated my three-year-old's birthday this past weekend and she had a blast. That did the trampoline and pizza party thing and she had a wonderful Saturday. So that was awesome. And from a more professional perspective, I started Brady CFO about three years ago. Yeah, roughly right around three years ago. That really in just seeing a need in the marketplace that I was a corporate CFO for agribusinesses and I had friends that would reach out and ask for help within their construction or ag businesses. They really just needed some fractional CFO support. That they had an existing accounting team, but that accounting team wasn't really leveling up to help them with the decisions that they need to make, whether it be, you know, hey, we want to buy out our partners, how much should we pay? How should we finance it? Hey, we want to go buy this building. How should we do it? You know, we want to buy out our competitor, or we need help getting access to capital all these multitude of requests that they had. But they certainly didn't need a full-time CFO and so I helped them part-time but really it just kind of exploded on me that within about three months of helping friends on the side, I was making more money on the side than I was in my full-time job and said, oh wow, there's actually a business here to be had, and so eventually decided to go full-time with it, and I've been growing it since then. So now this past weekend we're now a team of five total CFOs. We specialize in the ag and construction segments, and so we serve ag and construction-based companies with revenues up to 75 million and we come in as their part-time CFO, helping them with all the pain points I mentioned that you know. They need to look at potential investment opportunities. They want to bring in partners or buy out partners and want to figure out what's the right way to do that At least finance it. They want to figure out, you know, how to optimize their finances, and so we're the ones that ultimately can help solve those pain points for them. Chris: Very good, yeah, so first I can identify, I have two girls, so I'm a girl dad as well, and no better pleasure in life. And then you know I love hearing that you know this kind of just being entrepreneurial and, I guess, open to opportunities and seeing a gap where you could kind of step in and provide value to clients and small businesses, midsize businesses, and turn that into your own business, which is pretty cool. And I think what all entrepreneurs are kind of looking for right is where can they make a difference? Where's there a gap in the market? And so you said three years ago now tell us a little bit about you. Know. I guess you kind of had it going on the side, and that's not uncommon. Some entrepreneurs will say I kind of had a job and then I was doing this kind of side hustle and then that just kind of exploded. What was it like, I guess, to to go through the process mentally and emotionally, to go I'm going to leave the stable corporate job to kind of, you know, branch out on my own, because a lot of people are probably stuck, scared to make that decision. Let's talk a little bit about your process and what you might offer. Some advice to others who may be listening. Mason: Yeah, I think the path of me becoming a full-time entrepreneur it has been more of an emotional roller coaster of learning how to deal with fear and risk and being comfortable with it. You know, of living in a state of being comfortable with knowing that you're really not in control, which none of us are anyways, even in a W2 job, right, none of us are really in control, but there's some false sense of security that exists in a W2 job and you know, and just reckoning with that in your own heart. As to you know what that looks like. And yeah, it certainly was scary for me to have three young children and my wife doesn't work. I am the breadwinner, my wife is a stay-at-home mom and we generally wanted to maintain that lifestyle, just to be able to take care of our girls in that way. And so it definitely. Yeah, it was on my back, right, but you know, I say this, my, my personal faith is important to me, and so, you know, inherently I kind of knew that it wasn't all in my back, but yet at the same time, you know, as human nature is, we want to try to control things, and so it was scary, but I saw that the door was opening for me. It wasn't on my own, you know, doing that, obviously, I worked hard, but the door had opened to me that I'd personally prayed and I said, hey, if this is the path I'm supposed to go, it's going to be clear when you know, the answer to that was really clear when I started actually making more money on the side and I had more booked revenue than I did in my full-time job and said, okay, there's obviously something here that it's not. Like I have this little launch period where all of a sudden, I'm going to do a dip in income and try to figure it out. It's like, no, I've literally fully replaced the income and then some, I think we're good to go here, and so that was easier. Not everybody has that opportunity but, yeah, for me personally, it certainly was becoming comfortable with risk. That you know, that has been the journey over the past three years, and I think every entrepreneur is a bit on that journey of as an entrepreneur, you have to be comfortable with taking risk in a bigger way. That you know, especially, I come from an accounting background. Right, I'm a. You know, I was a CFO by trade, that I'm known for risk-taking. No, we generally are conservative decision-makers right, and I had to get comfortable with just, it's okay, get comfortable with fear. That's when the greatest growth happens. And you know, I heard somebody else like you and I are going to do a podcast swap. I heard somebody else say that you know, wealth is managed and conserved via diversification. Wealth is built when you go all in. You know and and it was like okay, well, if that's true, you know. Then I got to go all in and know that I got to go all in and that I'm burning the ships, and you know and just be comfortable with that. And so I began. That wasn't like a day one decision for me. I had to incrementally overcome some things to at that, but it was definitely a huge leap for me of doing that. But I would say to most people that you know it's going to end up being okay that you know all the fears that are in your head for something else. That's better because, as a result of that failure, that if you are good at what you do generally, it'll work out. Chris: Yeah, yeah, I mean it said you know, I guess, succinctly have faith in yourself, right, that you can do the job. The other thing I like about what I heard you say there was it's very rare for someone speaking of entrepreneurs, it's very rare for an entrepreneur to have it all figured out, to not be or be immune to risk, immune to the fear of taking the risk, right, that's the unicorn. The reality is that Almost every entrepreneur shares those fears. They may not want to talk about it until they've done it and then they can talk about it, but you're going to be scared, you're going to have some uncertainty and you're going to grow along with the process. Story may be told different ways of I wasn't sure, but I believed. Or if I didn't try it now, I never would. Mason: And who I was when I started as a business owner and leader versus who I am today is very different because we all evolve, so I think what I would tell entrepreneurs is even though you feel like you're alone, you're not. Chris: Many that have come before. You felt the same way. Yeah, and I would just encourage you're not right, many that have come before you felt the same way. Mason: Yeah, and I would just encourage there's not really a perfect time to start a business that people think, oh, like, at this age, I'll do it when the kids are out of school, or whatever the case is I actually advocate that. I, you know, being the breadwinner of my family, you know, and having, you know, three little kids to take care of it was a higher level of risk, right? Like I didn't have a safety net and that meant the decision-making that I was going to make I was going to focus on the top, like if I had to look at my calendar, I was going to focus on the top strategic priorities that were actually going to deliver a result for my time. Like I wasn't going to mess around because I didn't have the safety net, and so you know, the success of the business I think, has been built upon that. As to making the right decisions, because I didn't have any spare, you know, wiggle room in there for making a wrong one Right, and some of that's luck, some of it is just prioritizing time. I think that mentally we can get in our own way and so I encourage anybody, any listener, that there's no just because you can have a safety net later on in life or it can feel more comfortable. Sometimes entrepreneurship is pretty hard and to make the right decisions is pretty hard. Sometimes, when your back is against the wall, that's the most strategic, opportune time to actually do something, because your ability to fight your way out of that is actually better. Chris: It's really good. Let's go a little deeper on that, because I think you touched on something I think is so important, especially for someone that's starting out in a new business, and the one thing you hear almost universally is you're wearing many hats right in those early days and to your point, where you spend your time doing to make sure you are prioritizing your time in the right ways versus being distracted on the wrong things. Mason: Yep, I would say in any business starting out, I mean, making sure that you have tractions in your sales is critically important and you have to try to drive repetitive repeat sales. That and in order to do that's not just going to fall in your lap, you actually have to take action in doing that. And to the conclusion that I was going to have a weekly set of sales activities that I was going to do and that meant that you know whether it was activities on LinkedIn, whether it was people I was going to meet, who I was going to meet and making sure I was meeting with the right people and saying no to the wrong people. But I was going to commit to a consistent set of actions every week that I was going to prioritize, because even if I had book client work that you know could sustain me revenue wise, that can dry up Right. And so I never wanted to be in a position where, okay, we know that's going to dry up at some point and we don't have a solution to it, or we're going to have this big gap period, like it literally is when you're starting a business always be selling literally and make it a part of a routine, and I think for many people that are somewhat the artisan like, they're going and providing a service. So, whether it could be you know accounting or CFO work, it can be plumbers, it can be you know roofers. They may love doing the operational work themselves or that's what they're good at, and it's really easily mentally to go do what you're good at because that's what you're comfortable with. It's human nature, right, it's human nature. But sales is hard, regardless of whether you have a sales background or not. Sales is hard because you're putting yourself in uncomfortable situations where you're going to get told no, you're going to get told you're going to get rejected, and that is hard but it becomes easier through repetition and through repetition you're going to be able to define things better. You're not going to start perfect and just understand that. You're going to find your niche better. You're going to find who should I talk to better. Where am I going to get the greatest ROI for my time? But create a set of weekly activities I'd say, especially for somebody just starting out, that really needs to represent close to 40 to 50% of your time. Honestly, it needs to. You need to be making at least 40% of your calendar focused on new business development activities and just create that pipeline that's always flowing. And if you do that at least for me, that was a great success. Factor is just trying to implement that. Finally, and I think most people would agree, that is the way that you keep things rolling. Chris: Yeah, thank you for that. So let's talk a little bit about innovation, because you started out on your own. You said you now got five CFOs. How are you using technology or what are you doing to kind of be innovative, to kind of drive your business and grow it? Yeah, I would say. Mason: I mean, we're not heavy technology users in the sense of, yeah, like, we do use technology, but we're not necessarily taking technology to drive where we want to go and how we provide our services. I mean, I do think that there's opportunities in the space of AI to improve what we do 100%. I think what we're a bit unique in is you'll find out there and I think innovation can just come from seeing one way that everybody does something and trying to do it a different way. And I always worked for agribusiness firms that were always low margin and so from an overhead standpoint, you couldn't really staff up in a big way because you know, you didn't know when your next crop was going to, you know when you're going to have a hailstorm that was going to knock out your next crop, and you know and so you had to maintain a really lean overhead at all times. And just through a personal you know aspect my wife is from Chile, I've worked in South America, I can speak Spanish and all that, so I would actually contract, you know, a financial analyst and accountants out of South America, and I did that in corporate where, when I needed project support that I would go secure people from South America and I'd have them help me build financial models when I needed time to focus on other strategic objectives, and I would have them do that on my behalf rather than me getting stuck in Excel analysis and so like. Within our business you'll find a lot of fractional CFO firms where you're kind of you're buying the person of the fractional CFO themselves, you're buying the person, and we have a unique team approach to where every CFO is paired with an analyst and that way in our pricing we can deliver it at a more cost-effective rate to our clients. That ag and construction aren't historically, you know, high margin industries and so that way we can be most cost-effective and be value adding for the client. But we have a unique model in which the analyst does a lot of the Excel analysis, financial analysis work on behalf of the CFO, so the CFO can go actually work on strategic objectives with the client versus being stuck in financial analysis all day. And at least for us, that's what innovation looks like and we're driving that further in regards to setting up systematic ways that we deliver our services and rather than it just being that, hey, you're buying a person for an hourly rate, which I feel like a lot of our competitors do. We're trying to set up a systematic way that we deliver the services, along with a team approach, and that way it just it creates the greatest value add for the client. And so there's not a lot of technology in there, but we're just doing it different. That we feel like is, you know, it's all meant to be valuable to better fit our clients ultimately. Advert: Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Chris:Yeah, so, like I said, you know, I agree I don't think innovation has to be wow always, but just maybe slightly different. Sounds like what you're talking about more is a value proposition, right, and that you're really getting a little team here or not just one person. I can see where that would be different and important to your clients. So you're in Houston. Let's talk a little bit about the advantages you see of being a business maybe not just in Houston, but in Texas the advantages that you think that's brought to you and how you're trying to capitalize on those. Mason: Yeah, so I think I should start a little bit backwards. Originally from California, so I'm one of those statistics right that I moved the business to Texas. I literally picked up my LLC and I converted it to a Texas based LLC. So I'm all in on this. Chris: Welcome. We have, man. We have done so many conversions of California LLCs to Texas LLCs since 2020. Mason: It is crazy, yeah, it's real Still have family in California. We still have many clients in California. There's a lot of ag in California construction as well that we will continue to serve. That still believe that while the state is difficult to operate a business in, that also creates opportunities because there will be people that leave and yet there's still demand for those services and those products and goods. So yeah, for me being in Houston it's really actually great because this is a booming state in terms of its economic activity, especially on the construction side of things. But from an ag standpoint too, it can be a little bit tough not to be, you know, in the ag segments that we serve. You know where we're being able to go out to the ranches and the citrus groves and all that and then the farms themselves on a regular basis in Houston. The fact that we can serve clients in California, go hop on a plane, get out to Fresno, california really quickly, but at the same point in time there's a ton of ag in Florida, georgia and we can go hop to those areas. We happen to work with a lot of fresh produce clients and fresh produce distributors and so those are all over. But the fact that Texas is a central point and has a lot of economic activity where a lot of those goods and services are coming in, and so, while may not necessarily be that all the products and goods are grown here, the distribution of them is happening in a very significant way here, and so the fact that this state is so central to everything, it's just, yeah, it's been actually a blessing, because if I was all the way in California and I wanted to go to a trade show all the way, you know in Georgia, you know that whole lag of time in between, you know travel time and just killing a day worth of travel, et cetera, et cetera, when right now, I can get to most places within two and a half hours. You know the United States, and that's a beautiful thing in terms of building relationships and being on site and the fact that, yeah, the Texas economy is booming. Nonetheless, that you know it's real here, yeah, it's. We actually had one of our CFOs that moved from California to Oklahoma and he just said, yeah, it's amazing, just the lack of I shouldn't say lack, but the more minimized regulation by comparison to other states, and how it just creates additional business opportunities. It's a wonderful blessing. So it's great for us and, yeah, allows us to be centralized, but at the same point, yeah, it allows us to work with Texas and the clients all over too. Chris: Right, you mentioned, I guess, one of the CFOs that you brought on. How are you going about evaluating whether these additional CFOs align with your vision of the company and can, not just from performance but from your ethical standards, which you obviously led with in the very beginning of our conversation? So what are you doing to kind of vet these people out, to make sure you're making the best decision you can and bringing them on board? Yep. Mason: We definitely, through our hiring process we do a very significant case study approach and even in the person's background we want to see that they're. You know, for me it's a personal choice to each person building their own practice or firm in this way. If the background is heavy public accounting, you know that they work for a CPA firm for most of their life. It's probably not a fit for us, because we actually want to make sure that we get people that have been operators inside a business that have experience helping to deal with the issues of whether it be a family transition. You know growing a business and you know wearing many hats, because it's rare that if you have a full-time job in a $20 million revenue business that you're not going to be doing you're going to be doing multiple things, I should say, and you know. And so we want to see that they have operator experience in that regards. But we put them through some significant case studies to really evaluate, because it's unique that many of the business owners that we're working with we say that we work with businesses up to 75 million in total aggregate revenues, because we find that's a perfect segment where they can really use a part-time CFO. They don't quite need a full-timer yet. They can use a part-time on a reoccurring basis. But what's interesting is we're watching the evolution of the entrepreneur themselves as well, or the founder. I got to tell a little bit of my story but even though that they have the CEO title, they're not quite fulfilling that CEO role fully and we're helping them navigate that and there's a lot of emotional rollercoaster that goes with that and so we actually evaluate. We just did interviews with two construction-focused CFOs and that's another part of it too is we wanna see deep industry experience within the industries we serve. But we ask them that, hey, if you were faced with this similar issue we just worked through with a previous client where it's a husband-wife team and we literally just saw the husband wife get in a fight with each other over you know, something they're talking about in the business. We say, how would you handle this? And we want to hear how they would handle the emotional aspects of it from an empathetic standpoint, like, can you actually navigate that as a leader and still come out, you know, on the right way, that you're not going to be overly technical about it. You're going to help them, you know, relationally, work through it and help them move in the right direction, see the bigger picture. And so that's a lot of how we're doing it, that we are working with clients where, again, there's just emotional dynamics, where we're seeing that the entrepreneur themselves is having to evolve in a very significant way. They are not some major corporate CEO, they wouldn't tell you that they are. They're evolving as a person and so being there with them through that evolution and kind of helping to almost be somewhat of a guiding coach too, is what we see in our role and you know that's what we're looking for in our people that they can help do that too and help navigate sticky situations. Chris: Well, very similar kind of parallel seats that we sit in, cause we I find myself in very similar times with a lot of our clients where, you're right, they're evolving through the process, as I mentioned, and they were really good probably at sales or something with an idea, but they all of a sudden have a CEO title and helping them along that journey and whether that's eventually getting a good operator underneath them to really run the business so they can focus on what they you know they enjoy doing the most that made the business successful. Those are fun places to be, to kind of be an extension of that team. Right, let's talk a little bit about your clients. I mean what you know, what are some of the things you're helping them through, some of the challenges. You're seeing any kind of trends of where people are. You know, maybe, what are they excited about, what are they concerned about? You know, how are you helping them kind of navigate through both of those emotions? Mason: Yeah, I like to tell this story because literally you can insert the name and this more specifically applies to, like our construction clients, but you can insert any one of our client names in here and it literally is the same situation. This is the trend that we see. That you know, joe started a construction business that he was. He started general contracting business. He was a project manager for another big general contractor in town felt like, hey, I can do this on my own, I want to go do this on my own. He got the licenses and started bidding on some work and started winning the work and started, you know, actually managing the projects, working with the subcontractors, et cetera, you know, fulfilling the, you know all the work requirements for the job and kept growing. You know, eventually hired some PMs underneath him to handle some additional jobs, but knew that he needed to take care of accounting and so he's got QuickBooks and you know he's heard stories. But he needs somebody that he can trust to handle the day-to-day transactional entry and that he's got to keep things lean. So he asked his wife, his mom, his sister, his aunt, somebody that generally has some knowledge of QuickBooks and coding transactions. He asked him to take care of his books and he can do that for a couple of, a few years and then all of a sudden say Joe, you know, he gets this opportunity at the university or this big hospital, that this big remodel project where he can put his banner up. Everybody can know it's his brand that's doing this work and it can be a real showcase project. And he goes to bonding. He goes to his bonding agent to you know, make sure they can be bonded for the job, and wants to put a bid and proposal forward on it. And the buying company says no way, absolutely not put a bid and proposal forward on it. And the buying company says no way, absolutely not One. The financial reports that you give us show that you are an absolute financial mess. Whenever we ask for those financial reports, you send them two to three months later, so we never get anything on time. And when you actually do send them, the quality of them not just from a financial performance standpoint but your accounting standards and your record keeping is absolute junk. Like we can't really tell what's going on underneath the hood here, but of the little that we can tell, you're not doing that great. Insert Brady, cfo, we help to make sure that you know you are never denied by bonding again, that when you want to go pursue that high profile job, we make sure that you get the yes, and that's done through various ways that we make sure that you do have liquidity, so, whether that's working with banks or other you know capital providers, to make sure that, hey, we get you liquidity so that the bonding companies will like that you have a little bit of backup. But then, yeah, we're navigating that. How do we get your accounting in good order to actually that it's in a useful state? And then how do we optimize your financial performance to where, whoever's provided that capital, we can make sure that there's a good ROI on that too whether you're having to pay down debt, can you actually pay down the debt, et cetera, et cetera. But through that process we're seeing a significant trend that a lot of construction companies right around 15, 20 million mark they're going through an ERP implementation, as an example, just to get their accounting records in a good state, and we're helping to navigate that. We don't like to be deep within the accounting itself, but we certainly serve it because we understand it's a means to an end that once we have good financial records and we make sure that there's some liquidity in place. Then we're talking about, okay, where do we want this business to strategically go, that this is a $15 million business now, but how do we make this a $50 million business? And then how do we make it a hundred million dollar business? And we're creating these long-term plans with the ownership to do that. And so that story I told about Joe though literally you can insert several of our client different names in that and that is the consistent theme across the board. And we find that when we bring that up in a sales call too, that is usually what's being seen for most of our clients that we work with. Chris: That's what's keeping them up at night and again. And when you solve that problem right then, now you have a client for life. Yep, Yep, that's great. That's the goal. Let's talk just a little bit about leadership. How would you describe your leadership style and how do you think it's kind of evolved over time? Mason: Yeah, especially as an entrepreneur, I would say that like I have a visionary side to me and that is important, that I think every entrepreneur has to have that visionary kind of fulfillment and believing in what's possible and what can be created. But at the same point in time you still have to put in the operator mode at times, right, like you just have to get stuff done. And that aspect of learning to delegate, I mean I was a corporate CFO so I had teams of people. But again, in an agribusiness environment you're running lean, and so usually what you see in an agribusiness environment is that you have these C-suite leaders or these VPs that they're excellent, but then generally there's not a good layer of middle management below that. That it's basically you have a variety of accounting assistants and they're all rolling up and with the intention that, yeah, you're keeping your labor and your overhead costs low, you know, and so you have one kind of rain maker up at top, but then you have a lot of people that need a lot of additional skill and development reporting into you, and so naturally you're kind of having to manage and keep the reins pretty tight. Right that you're having to be a little bit more controlling to make sure that things are going well and within this business. On the other hand, we're managing other CFOs right Like we're managing, you know, highly qualified people and coming to the conclusion that, yeah, I don't need to be involved in as much. Right Like I. It's important to trust but verify. But you have to be really good at delegating. But delegating doesn't mean you show them once and then you hand it off and expect why didn't that not get done a month later? Why did it not get done the way I wanted it to? To me. Getting really good at delegation I've had to evolve at this is, you know, spend some time with them, show them, make sure that it's being done over the course of a couple of weeks or a couple of months correctly, and then you're good to go and you can leave it and you can touch base and say you're accountable to this. Now I've given you all the training. You know what to do. Be careful about just giving somebody something and expecting that it's going to be done the way that you want it to be done. That's hardly ever the way it works. But you got to be really good at delegating and getting things off your plate as quickly as possible, right. Chris: Yep, very true, very true, let's. Let's try a little bit, since you're new to Texas, places you've gone, experiences you've had since coming to Texas that stand out in your mind. Mason: Yeah, I mean I just the generally friendly nature of people. I mean it's a part of the reason that we love living here and that we wanted to move here is, you know, you walk down the streets and people just say hi, and that doesn't necessarily exist in other states, where people are friendly and just say hi. And we got to be. You know, we got to witness or experience our first hurricane last summer and I couldn't believe the resiliency of people where I mean, yeah, the day after the hurricane people still had to work. Oh, like you go into Barnes and Noble and like people are literally plugging their laptop into the corner little, you know. You know electrical outlet and making sure that they could still get work done and send emails that day, like you're just back at it. And the nature of that type of stuff happens here so often that you know from California, yeah, you get wildfires there's that's a whole nother story of how it can be managed or not but you get wildfires but you don't really get natural disasters that just kind of come and, you know, uproot your life for a bit, but they happen so often in Texas has such, you know, crazy, you know up and down weather people's resiliency. It's pretty amazing in Texas of just yep, we had that terrible storm yesterday. Well, we're back at it tomorrow, you know, and it's just. This is life and we got to get back to it and, yeah, I think the friendliness and people's resiliency here is is a pretty, pretty big thing that we've noticed. Yeah, that's great. I love that perspective. Chris: I think those of us that have been here our whole life maybe lose sight of that sometimes. But yeah, it's good to get that perspective from you. So again, new to the area. But I ask everyone this so it'll be good, because you're kind of a guinea pig or fresh in this, do you? Mason: since getting here is your tex-mex or barbecue tex-mex yeah, that I do love good barbecue, but tex-mex I. We have all kinds of mexican food in california, right. I mean, I think the population in california is good 60 to 70 percent hispanic but tex-mex has a different, unique flavor to it that I grew up on mexican food. Because of that growing up where I did, yeah, and yeah, it's kind of natural to make that migration, I love it. So, yeah, I love a good queso. Chris: Oh man, I have it for my own heart. Yes, okay, well, yeah, really appreciate the time. Mason, love hearing your story and where you're taking this business. I definitely agree. There's a lot of opportunity for the type of services that you're providing, because there's a ton of companies that fit within that space. Again, I know that because that's part of the market we serve in, that kind of middle market there. So congratulations on taking the risk. How it's going so far? Mason: Yeah, no, I just appreciate being able to come on here, chris, and talk with you. It's fun to come and share the story. But, yeah, I just appreciate the opportunity to share with your audience as well. Chris: Well, that's great. Well, we enjoyed having you on and I look forward to seeing you soon. Take care, that's good, awesome. Mason: Thanks, chris. Have a good one. Outro And there we have it Another great episode. Don't forget to check out the show notes at boyermillercom forward slash podcast and you can find out more about all the ways our firm can help you at boyermillercom. That's it for this episode. Have a great week and we'll talk to you next time. Special Guest: Mason Brady.

The End of Tourism
S6 #2 | Narco Airbnb | Sofia y Carlos Montoya (Proyecto NN)

The End of Tourism

Play Episode Listen Later Mar 13, 2025 67:57


En este episodio, mis entrevistados son Laura Sofía Montoya Gómez y Carlos Alberto Montoya Correa. Carlos es arquitecto egresado de la Universidad Nacional sede Medellín. Experto en planificación, gestión y ejecución de proyectos de desarrollo urbano con énfasis en viviendas económicas en tratamientos de expansión urbana, consolidación, mejoramiento de barrios, renovación urbana y en zonas con restricciones geotécnicas. Ha participado como gestor en la ejecución de más de 50.000 viviendas económicas desde el sector público, en proyectos de cooperación internacional, de aplicación de políticas nacionales y de ejecución local en varias ciudades de Colombia (Bogotá, Medellín, Armenia, Bucaramanga, Rionegro y Bello). Ha sido docente en la Facultad de Arquitectura Universidad Nacional sede Medellín y ha participado de publicaciones colectivas de carácter técnico.Sofia es arquitecta egresada de la Universidad Pontificia Bolivariana. Magíster en Arquitectura, Crítica y Proyecto de la misma institución donde actualmente también es docente en el área de Taller de Proyectos. Ha participado durante más de 13 años de varias colectividades en la ciudad de Medellín, donde ha podido desarrollar proyectos de investigación en el área del patrimonio urbano-arquitectónico que han sido publicados mediante recursos financiados a través de los estímulos de la Secretaría de Cultura Ciudadana. Es cofundadora de la Corporación Proyecto NN, organización sin ánimo de lucro que acompaña procesos comunitarios y promueve la educación y la dignificación de los espacios de encuentro populares.Notas del EpisodioQue esta pasando en MedellinEl encaricimiento de la ciudadEl turismo sexual y el pueblo moralistaLa gentrificacion de Pablo EscobarLa construccion y venta de vivienda paisaResentimiento y el dios dineroLas mascaras del gobierno“No se puede morir del exito”El derecho a la ciudad y viviendaTareaProyecto NN - Sitio Web - InstagramTranscripcion en Espanol (English Below)Chris: [00:00:00] Bienvenida Sofía, bienvenido Carlos al podcast El Fin del Turismo. Muchas gracias por estar conmigo hoy para platicar de este tema, pues si, tan complejo. Me gustaría preguntarles en dónde se encuentran hoy y como se ve el mundo para cada uno de ustedes allá.Sofia: Bueno, estamos aquí en la ciudad de Medellín. Estamos juntos en mi casa, Carlos es mi padre, y bueno, decidimos juntarnos para tener como una conversación más fluida, desde aquí, desde mi casa en el centro de la ciudad, que es un centro, pues además, bastante particular. Pues Medellín es una ciudad montañosa que queda en los Andes. Es un valle. Y digamos que el centro de la ciudad tiene, pues, unas dinámicas muy distintas a muchos centros de otras ciudades. Carlos: Es una ciudad muy estrecha [00:01:00] y tiene en el costado oriental y occidental un par de montañas llenas de barrios. Aquí mismo por la ventana se ve toda las montañas urbanizadas y en el centro está, digamos la metrópoli, lo que pudiéramos llamar una ciudad más tradicional, mientras arriba son barriadas o comunas populares. Hoy en día, muy populares para cierto turismo.¿ Y usted dónde está? Chris: Pues yo llevando en Oaxaca, en la capital de Oaxaca, México también en un valle un poco mas amplio geográficamente que Medellín . Conozco Medellín porque andaba como turista hace 15 años quizás allá. Y pues empezando toda la [00:02:00] investigación para este episodio, encontre como muchos Entonces me gustaría leer unas citas de esos artículos para los oyentes que quizás no conocen Medellín, no saben qué está pasando allá, según los medios masivos. Entonces, primero este, Nomad List. "Nomad List es una plataforma que publica su ranking de los destinos más populares para trabajar de forma remota. Colocó a Medellín en segundo lugar, el año pasado entre 157 ciudades de Latinoamérica." El próximo dice que "en la colonia de Manila de Medellín hay alquileres a corto plazo cuyos propietarios ganan más de cinco millones de pesos colombianos por mes o alrededor de $1,000 estadounidenses."El próximo decía que "aunque no se llevó [00:03:00] a cabo, el presidente local dijo en ese momento 'que prohibiría los alquileres a corto plazo en la ciudad como medida para prevenir el abuso y la explotacion sexual infantil. En esa búsqueda por encontrar una solución a ese flagelo, Guitierrez, el presidente local se reunió con representantes de la plataforma de Airbnb para llegar a un acuerdo.Desde entonces se ha trabajado de común acuerdo con las partes en conjunto para evitar medidas extremas, pero si establecer acciones que permiten prevenir este delito en la ciudad" Siguiendo, "en tanto, el número de apartmentos anunciados en Airbnb, la popular empresa de alquiler de propiedades vacacionales, subió de 8 mil en octubre de 2022 a 14 mil a [00:04:00] finales de 2023, según datos recabados por AirDNA."Y finalmente, "los datos recientes dice que Medellín recibe 1.7 millones de visitantes extranjeros a una urbe de 2 millones y medio de habitantes." Entonces, me gustaría empezar preguntándoles a ustedes dos sobre la gentrificación en Medellín. Yo encontré otro artículo sobre el tema. Y quizás se se exhibe, expone un poco de lo que está pasando allá y dice que "Wilson y Felipe, ambos se reservaron sus nombres reales. Son dueños, cada uno, de un bar cafetería en Manila en El Poblado, una de las zonas más turísticas de mayor actividad económica. Los dos vecinos son de los pocos que quedan en su [00:05:00] cuadra, porque prácticamente todas las casas de la zona se transformaron en restaurantes, pequeños hoteles y hostales, escuelas de español o viviendas para alquileres cortas a través de aplicaciones como Airbnb, que toman los extranjeros y que en parte son la causa del sobrecosto en los precios de la vivienda para los habitantes tradicionales. Entre 2022 y 2023, los arriendos crecieron entre 50 y 100%.Este barrio cambió demasiado, dice Wilson, era familiar y vea, se volvió tierra de viciosos y jíbaros que atiende a domicilio. Toda esa 'gentrificación' como le dicen, es a raíz de los inversionistas extranjeros y se encareció todo. Carlos, tú has trabajado para empresas estatales en Medellín y Bogotá, la Empresa de Desarrollo Urbano. y [00:06:00] sofia, tú has trabajado en el Proyecto NN ahí en Medellín. Entonces quizás podrían ofrecernos una idea de lo que ha sucedido en Medellín en los últimos años y las últimas décadas en términos de gentrificación y qué papel tiene que desempeñar el turismo y los turistas en ello. Carlos: Pues yo, yo percibo esta situación como supremamente novedosa y reciente. Vale decir que Medellín en los 90 era una ciudad a donde no venía nadie. Es decir, la situación de violencia urbana. Toda esta crisis que desató el narcotráfico en la ciudad nos tenía marginados del resto del mundo. Era una ciudad bastante poco atractiva por lo violenta y de inversiones relativamente paralizadas.[00:07:00] Sofia: Fue la ciudad más violenta del mundo. Carlos: SíSofia: En cierto momento Carlos: Y necesitó de una estrategia de atención entre la presidencia de la república y la alcaldía local que ustedes en México le llaman "presedencia local" para encontrar alternativos de futuro. Se llamaban los seminarios de muchas conversaciones.Entonces, lo primero que quiero enseñar es que es un hecho muy nuevo, y muy reciente. Nosotros para ver un extranjero, era un futbolista que venían a los dos clubes. De resto aquí no venía a nadie. Ver rostros chinos o japoneses o alemanes eran, eso es muy sui géneris. Y el paisa, la cultura antioqueña es una cultura supremamente hospitalaria.La gente acá desborda de amabilidad. Es una cosa muy curiosa. El solo hecho de sentir a una persona de otra [00:08:00] región, no necesariamente extranjero, puede ser de otra región colombiana. El antioqueño desarrolla un, unas habilidades y unas formas de relación, muy amenas, muy atractivas. El antioqueño es una persona muy conversadora, muy dicharachero, y es muy abierto. Es muy tranquilo en las relaciones, diría eso en principio. Entonces sí, si sentimos, realmente se siente abrumadora la presencia de extranjeros, porque es notoria. Aquí mismo nosotros vivimos aquí. Yo vivo en un par de cuadritos donde los hoteles pequeños proliferan en dos cuadras han, se han desarrollado en los últimos tres años.cinco, seis, siete hoteles, y la presencia del extranjero, es notoria. Y como le digo en un principio, era muy bienvenida, porque el extranjero, pues trae monedas con un [00:09:00] cambio muy fuerte y también aquí, el país es de una mentalidad comercial y negociante extrema. Aquí el negocio se ve pa vender un hueco, pues hacemos otro hueco.Es decir, la gente aquí es supremamente ingeniosa en la forma de establecer negocios. Sofia: Si, y, y creo que la ciudad hizo un esfuerzo institucional por cambiar también la narrativa. Pues porque, como lo dice Carlos, estuvo muy estigmatizada, pues somos la ciudad de Pablo Escobar. Cierto.Eso es una carga como simbólica muy fuerte. Y entonces se ha hecho pues un un esfuerzo, por mostrar otras cosas que también somos. Creo que el reggaetón tiene mucho que ver como con la visibilidad de la ciudad también. Cierto, porque digamos que el reggaetón no solamente pues han salido grandes estrellas, grandes cantantes pues como de de aquí de Medellín, sino [00:10:00] que el reggaetón pues como muchas otras géneros musicales, pues como que en salsa o, o bueno enaltece, pues esas figuras como el narcotráfico de bueno, como cierta estética también. Y entonces es muy atractivo para muchos extranjeros venir a conocer la ciudad del reggaetón.Y esa era una cosa que estaba pasando, digamos, de una manera más orgánica y más lenta antes de la pandemia. Con la pandemia se corta y luego de la pandemia, si se desbordó. O sea, ocurre como un fenómeno desbordado. También me imagino, pues como por esas ansias de mucha gente de viajar y de pues, de haber estado como paralizada en sus lugares, y la ciudad realmente no estaba preparada.O sea, yo creo que todo ese esfuerzo institucional que se hizo, no se midió tampoco, como hasta, hasta dónde podía llegar, cierto? Porque, si bien es cierto que la ciudad es supremamente hospitalaria y acogedora, digamos que el clima es una de las cosas que también [00:11:00] a muchos extranjeros les llama la atención. Es un clima muy ideal, cierto? Un eterno verano. Pues, obviamente también hay unas estructuras, que ofrecen cosas. Hay mucha droga, hay mucha prostitución, cierto? Es una ciudad como también para un turismo que no deja tantas cosas buenas. Además, bueno, tú sabrás y tendrás del conocimiento, el turismo así no sea, pues, este turismo como de drogas y de prostitución y de fiesta desbordada. El turismo es un fenómeno que tiende como a arrasar, cierto? Es un fenómeno que encarece, entonces. Sí, creo que en en un principio, es una ciudad que un poco quería que esto sucediera, pero en este momento no sabe muy bien cómo manejar. Carlos: Si también hubo un momento en que cuando la ciudad empezó a despegar, hubo cierto turismo académico, porque la ciudad empezó a ser muy sonora en cuanto a ciertas transformaciones [00:12:00] urbanísticas. Esta es una ciudad que tiene una empresa de servicios públicos muy poderosa. Nosotros tenemos en Medellín, la alcaldía es la dueña de una especie de multinacional criolla que le vende servicios públicos y energía eléctrica. Le vende energía eléctrica a Panamá, a Ecuador y le brinda servicios públicos a unos 90 municipios en Colombia. Entonces, la ciudad tiene una capacidad de inversión social realmente notoria.Y entonces la ciudad empezó a hacer eventos académicos para mostrar. Por ejemplo, Bogotá, que es la capital de Colombia, tiene 8,000,000 de habitantes. No ha podido construir un metro. Chris: Wow.Carlos: Y el metro de Medellín está cumpliendo 30 años. Lo que quería señalar es que se desarrolló una forma de turismo muy curiosa. Y es que aquí vienen extranjeros a visitar barrios populares, a meterse en [00:13:00] Moravia o en lo que aquí llamamos Comuna 13, en un hecho muy curioso por lo menos porque pues ir a un barrio popular donde, donde no hay servicios cómodos, donde no hay locaciones, donde pues, a ver como el espectáculo popular. No sé, es una cosa muy, muy curiosa y es increíblemente desbordado.Es decir, hay lugares donde no cabe la gente físicamente y siguen yendo, o sea allá, son, todo eso es incómodo. Pero la gente sigue yendo, no se como a que, pero siguen llegando. Sofia: Es una pregunta que nos hacemos constantemente, pues, de hecho, varios amigos siempre me dicen como, es que, a qué vienen? A qué vienen aquí?Pues no entendemos a qué vienen, tal vez porque uno tiene naturalizado. No sé, pues todo lo que pasa aquí, pero uno sigue sin entender, Carlos: Pero, diría, el turismo está asociado como a los centros de negocios, a los centros [00:14:00] históricos, a los centros culturales, pero que los barrios populares se volviesen un objetivo turístico.Entonces, al principio, un turismo como institucional y académico. Aquí se hicieron eventos donde llegaron 2 mil estudiantes, de universidades de todo Colombia, de Ecuador, y de países vecinos, a ver lo que estaba pasando en Medellín. Pero de ese turismo muy institucional, académico de centros de estudio, de aulas, se transfirió, a un deseo de conocer los barrios populares y entonces el turista, el otro turista, perdóneme que hable así de, el que viene un poquitico maliciosamente a buscar como huellas del narcotráfico, o consumo, o redes de prostitución, se pega ahí y hay en estos momentos una acción entre Manila como sitio receptor de turismo y [00:15:00] Comuna 13, como sitio. Como Manila se controla, en ese acuerdo, en ese pacto entre empresarios del turismo y presidencia local, se hace unos pactos de control. Entonces el turista ya no trae las niñas al barrio Manila, sino que van a buscarlos en la Comuna 13. O sea, pero sigue siendo el barrio popular un centro de atracción de turismo inusitado de unas escalas tremendas y hay una avidez, nos hago mucho realmente de qué pues realmente pero, pero está mezclado el turismo tradicional, el turismo popular y el turismo como académico si pudiéramos decir se entremezclan. Están ahí todos mezclados. Desbordando, desbordando la ciudad, encareciendo mucho. Se siente verdaderamente. Sofia: Es que en este momento, Medellín es la ciudad más costosa de Colombia. O sea, por encima de Bogotá.Chris: [00:16:00] Mm.Sofia: Que eso nunca había pasado. Siempre, pues, para alguien de Medellín ir a Bogotá era más costoso. Carlos: No, y un empleo, por ejemplo, mira, yo tuve el mismo cargo, se puede decir el mismo cargo, en Medellín y en Bogotá. Y por el solo hecho de estar en Bogotá, la asignación salarial, es más del doble. Entonces, Bogotá pues es la capital, eso mismo ha de pasar en todos los países del mundo. Pero yo mencioné que es una ciudad estrecha, tiene mucha posibilidad de crecimiento y de oferta habitacional. Al llegar este turismo, prácticamente copó todo el interés de los empresarios y ya, construir viviendas económicas aquí no le interesa nadie.Chris: Y pues me gustaría llegar profundizando esa última noción o esta consecuencia del turismo, de la despojo, perdón en la ciudad, pero primero, me gustaría abrir un [00:17:00] poco de esos temas de la imagen de Medellín que quizás se da a los turistas extranjeros, como mencionaste Sofia, como mencionaste Carlos, de la prostitución y también el narcotráfico, una nota de la investigación que hice dice que recientemente el alcalde Guitierrez anunció que el ciere de 150 propiedades que en su mayoría están vinculados a la plataforma que habrían sido utilizadas para fines de turismo sexual y explotación de niños, niñas y adolescentes en la capital antioqueña. Ahora, en primer lugar, tiene a recapitular los imaginarios coloniales de violación o coerción. En segundo lugar, puede implicar a menores de edad. En tercer lugar, los servicios que prestan a las trabajadores sexuales en un lugar determinado pueden ocultar fácilmente la presencia de crimen [00:18:00] organizado, Dadas las complejidades y contradicciones presentes en el tema de turismo sexual, en un campo de trabajo en el que muchos están tratando de superar prejuicios y criminalizacion. ¿Cómo ven ustedes dos estos temas en en este momento? Sofia: Pues a ver, lo primero que yo quisiera decir es que las redes de prostitución pues, o de trabajo sexual o de trata, pues, como de personas no iniciaron por la movida turística. O sea, esta ciudad siempre ha sido un lugar donde el trabajo sexual ha sido, como uno de los rubros de la economía, incluso, pues, en la época del narcotráfico. O sea, siempre ha sido así. Pues, como que las paisas tienen fama de ser mujeres bonitas. De bueno, tanto dinero que se ha movido en esta ciudad también, digamos que viene amarrado, pues como con ese tipo de actividades. [00:19:00] Entonces simplemente yo creo que el boom del turismo simplemente encuentra una estructura vieja que está que funciona muy bien. Es una estructura que ya existía. Lo mismo pues que lo de las drogas. O sea, lo que pasa es que aquí las drogas, tal vez en los 90s, no se consumían tanto en la misma ciudad, porque todas se exportaban, pero la estructura está y pues simplemente el turismo se pega de esa estructura. Entonces, aquí la gente, pues es como también muy moralista y a todo el mundo le parece horrible que un gringo ande con una muchachita, pero esa muchachita ha andado con los mismos países de aquí toda la vida. Que les parece terrible, es que está sucediendo en los barrios tradicionalmente ricos de la ciudad. Y eso es lo que les molesta, porque prostitución, pues nosotros, que siempre hemos vive en el centro, siempre ha estado, siempre ha existido y esa dinámica no es nueva. Entonces, digamos que me parece que el paisa bueno, todo lo que hemos dicho, lindo del [00:20:00] paísa, pero también es muy moralista y se escandaliza, pues solamente cuando están al lado de su casa. Carlos: Claro, pero además de que eran estructuras de negocios ilícitos asociados entre sí, es decir, narcotráfico y todas estas otras patologías sociales. A ello, el turismo, lo que hizo fue darle una manifestación inmobiliaria porque antes, claro, pero en los barrios ricos no. Sofia: O muy, o muy puntualmente, pues, o muy, muy escondido.Carlos: Muy escondido, cierto?Pero, pero como se vio una fuente de negocio, como yo puedo arrendar y obtener, como dijiste, 2 mil doscientos dólares en arrendamientos, pues la visión de negocio y mercantilistas del paisa que la tiene por naturaleza, se embarca y entonces se asoció la droga y estos negocios, estas patologías sociales ilícitas a una versión [00:21:00] inmobiliaria.Y ahí sí, la versión inmobiliaria tiene efectos en la economía de los arrendamientos, en la economía de varios de prestigio. Y entonces ya eso se vuelveSofia: Molesto. Carlos: Una problemática de otra índole. Sofia: Molesto y visible. Pero lo que yo quiero anotar es, por ejemplo, en la época los 90, en El Poblado, había fincas gigantes donde eran, pues como burdeles y pues los narcotraficantes iban allá y se encerraban, pero como estaba encerradito todo el mundo sabía que allí sucedían ese tipo de cosas. Llegaban, veían a las chicas llegar, o sea, como toda la dinámica, pero como sucedía ahí puntualmente. Pues, cierto, como en la época, no pasaba nada. Carlos: En esa época, los narcos trajeron a todos los artistas importantes, de habla hispana. Todos los artistas, no quiero decir ningún nombre, algunos ya están difuntos, pero los artistas más importantes estuvieron haciendo shows en esas casas campestres donde [00:22:00] obviamente en el entretenimiento del narco, pues están desafortunadamente, las niñas bonitas paisas que Sofia: Pero entonces, claro, esto era como puntualmente y era como una actividad que hacían los narcos, ya cuando sucede esto, pues es que ya es en tu mismo edificio, en el barrio que has habitado toda la vida.Y entonces ahí, si se vuelve como muy abierto, como muy escandaloso, pues para esta sociedad que es como tan moralista. Yo, por ejemplo, no creo que eso sea una patología social. O sea, yo creo que pues finalmente, así como hay hombres que entregan su cuerpo y se vuelven sicarios y pueden sufrir, pues su cuerpo está expuesto a que les pase cosas horribles.Pues hay mujeres que también encuentran en su cuerpo, pues una manera de sobrevivir y creo que, finalmente es una expresión como de la desigualdad, cierto?, y de la oportunidad. O sea, hay muchas mujeres y yo las conozco que que estudiaron una [00:23:00] carrera, o sea que no es que tengan tampoco necesidades, pues como vitales y deciden elegir ese camino porque es muy rentable, cierto?Y esta es una ciudad que lo permite. Entonces, por ejemplo, no, no lo veo desde ese punto de vista tan moralista. Lo que sí es cierto es que precisamente por esa moral, como tan católica que tenemos todavía en esta ciudad, no hay mecanismo de control porque el único mecanismo de control es, decir que está mal, criminalizarlo y no se pasa de ahí, y no creo que pronto vayamos a pasar de ahí. Entonces, pues yo no veo, que eso, primero ni vaya a seguir sucediendo, creo que va a seguir sucediendo. Ni tampoco veo que haya como una actitud desde la institucionalidad más inteligente.Carlos: Sí, las medidas del alcalde son más, más que todo anuncios para calmar el alboroto de la élite.Sofia: Es que eso no tiene efecto. Carlos: No tiene efecto de nada. Chris: Gracias. Gracias, Sofía [00:24:00] y Carlos por sacar esas contradicciones que están ahí dentro de las dinámicas en Medellín. Pues más allá del turismo sexual y a veces junto con ello, es el turismo de drogas o narcos. Y un artículo de mi investigación dice que. Un comerciante en Medellin cuenta que algunos habitantes de La Comuna la promocionan como la "cuna" de Escobar para atraer más clientes.Es más rentable, dice. Aquí compran camisetas de él, eh, ave María, todo lo alusivo a Pablo se vende mucho, dice el hombre que por seguridad, pide no ser citado. Y es que, pese a que la zona luce pacificada por el turismo, el control sigue en manos de los combos. El comerciante afirma que ahí operan bandas pequeñas [00:25:00] como Los del Uno, Los de Dos, Los Pirusos y Los Negros.Ellos cobran cuota por negocio chuzo al aire libre y hasta parqueadero. Aquí no se abre un local sin su permiso. Y también pasa con los cuentos Airbnb que están empezando a abrir.Ahora, una colega investigadora que trabaja junto a activistas en Colombia, me dijo hace un año aproximadamente que los carteles de narcotráfico en Medellin habían comenzado a utilizar Airbnb como una forma de lavar dinero.Seguramente esto ha sido así desde hace mucho tiempo en el sector de inmobiliario normal, pero este simbolizaría una conexión directa, entre el crimen organizado, el turismo y la crisis de la vivienda. Entonces, ¿Qué piensan ustedes sobre la posibilidad de que los narcos, ya sea en [00:26:00] Medellin o la Ciudad de México, sean en secreto propietarios de Airbnb?Sofia: Pues, bueno, frente a la primera pregunta o parte de la pregunta de lo de Pablo Escobar, pues es innegable, pues, que es una figura demasiado importante y no solamente, pues, como figura particular él, sino porque es un estereotipo de lo que somos. Yo no diría que los colombianos, pero no me siento pues como para hablar por todo el territorio nacional, pero si es un estereotipo de lo que es un paisa. Y por eso, pues muchas personas dirán horrible, no me quiero identificar con esta persona, pero así lo digan, pues tenemos mucho de él, pues así como él tiene mucho de nosotros, pues es que tenemos una cultura que es compartida. Y finalmente, pues uno tiene tíos, amigos, pues que parece que tienen algunas, características de Pablo Escobar. Es un es un personaje pues que es muy cercano, para [00:27:00] nosotros. Y así la ciudad intente, digamos, desde la élite, desde lo institucional, rechazarlo, es algo que es imposible, es imposible pues como negarlo. Carlos: Sí, por ejemplo, en Comuna 13, parte del show o del evento turístico, es hacer muchas alusiones a la figura de Pablo Escobar. Entonces, está el tipo que tiene una fisionomía igualitica, como si fuera un actor, un doble y una serie de eventos cuando Escobar no tiene nada que ver ni con la violencia urbana que tuvo Comuna 13, pero es una forma en que la mentaría popular ve que explotar la figura de Escobar, pues es muy rentable para cierto turismo extranjero que todavía quiere circular versiones, relatos, que ya son [00:28:00] completamente míticos o legendarios porque son totalmente inventos, para traer clientes.Sofia: Sí, y y además, uno se pone a pensar porque es que mucha gente se ofende. Osea, incluso pues me ha tocado presenciar momentos en que alguien se ofende porque un turista o un extranjero dice como "uy, yo vine porque es la ciudad de Pablo Escobar y me emociona y quiero una camiseta," cierto? Pero es como, no sé si uno va y visita la ciudad de Al Capone. Pues es como lo mismo, simplemente es como un mito. Es una figura, cierto? Pues los criminales también han sido igual de atractivos que los personajes que son buenos, incluso, pues yo creería que los personajes malvados son los que son más atractivos. Entonces, claro, aquí hay mucha, mucho resentimiento pues ante esa figura, pues porque todavía hay familiares de las víctimas, o sea, es una historia demasiado reciente, pero para el extranjero es simplemente una historia más, una historia de lo que ven en las películas. Y yo siento que muchas [00:29:00] personas que se, que se ven atraídas como por esa figura tienen como una noción del asunto muy infantil.Pues creen que realmente es un personaje de una película, cierto? No entienden que realmente pues que esta ciudad explotó en bombas. No lo conciben y pues yo que no estoy tan adulta a mí me tocó. O sea, es una cosa que es demasiado reciente y todavía esta sociedad está muy traumatizada por eso.Entonces, por eso es que hay tanto recelo, pero al mismo tiempo, es una oportunidad de negocio porque vende demasiado. Carlos: Mira, nosotros vivimos aquí, pues en el centro de la ciudad y mi señora y yo, estaban ellos muy chiquitos. En la noche, contábamos las bombas, una, dos, siete, ocho, porque yo no sé si conoces la canción de La Noche De Chicago... de Mirta Castellanos.Bueno, una canción que narra el enfrentamiento [00:30:00] de los gángsters en Estados Unidos contra la policía. Eso fue una masacre tremenda entre ambos bandos. Aquí vivimos eso, pero no era con ametralladoras, era con bombas. Pues, es decir, este tipo voló un edificio en Bogotá, el edificio del DAS.Voló un avión de pasaderos civiles en el aire, o sea, un un personaje real. Y eso suena como fantástico, que eso no es realidad, pero eso es realidad. Esta ciudad estuvo marcada por escombros de todas esas detonaciones, además de que las masacres juveniles solo para crear caos. Pues estar un grupo de muchachos departiendo en en una discoteca y llegar grupos de sicarios solo por el solo hecho de que al otro día en las noticias, haya pavor en toda la ciudadanía porque se pensaba ganar esa guerra de esa manera. Sofia: Terrorismo pues, [00:31:00] entonces, como cerrando un poco, pues para nosotros todavía es una historia dolorosa. Pero si uno también, como se pone en el papel de alguien que está en otro país y tiene otra realidad, pues claro que es una historia supremamente atractiva.Y fuera de eso, puedes ir a la ciudad que fue la ciudad más peligrosa del mundo, pero ya sabes que no te va a pasar nada. Pues, okey, digamos, hay cierta seguridad, porque realmente aquí los turistas están cuidados y no están cuidados por la policía. Están cuidados porque las estructuras criminales, como ya lo dijiste, enlazando con la segunda parte, las estructuras criminales ya dieron la orden que a los turistas no les puede pasar nada porque están vinculados directamente a su negocio. Entonces es por esto que tenemos un gringo, pues que pena decirlo así, pero, así le decimos nosotros, un gringo, en un barrio popular y es más fácil que le pase algo a uno que es de la misma ciudad que a ellos. No les va a pasar nada, por qué? Porque son fuente de dinero y porque si los matan o si les pasa algo malo, van a dejar de venir.Carlos: El negocio [00:32:00] se daña. Sofia: Exactamente, es como, no sé si sabes pues, pero aquí a la, a los expendios de droga se les dice plazas. Y no hay lugar en la ciudad más seguro que una plaza, porque es que en una plaza a ti nadie te va a robar. porque pues está totalmente controlado y no le vas a dañar el negocio a los que tienen el negocio.Entonces, obviamente es muy atractivo y aunque uno podría decir que gente tan boba o lo que sea o no entienden la historia, no están interesados en la historia, pues es que es una historia que realmente es muy atractiva. Pues porque aquí él contó un par de cosas, un par de titulares, pero todo lo que tiene que ver con los narcotraficantes de nuestra región es bastante fantástica.Pues es, y por eso es que le han hecho series a Pablo Escobar, porque es que realmente es un personaje, pues muy interesante, muy interesante y con unas historias, pues que, que son cinematográficas. Entonces, como no se va a sentir el mundo atraído hacia eso. Carlos: El tipo vivió una película en carne propia continua, pues [00:33:00] todo, la cárcel, las escapadas, los negocios que montó, la estrategia de llevar la coca en aviones.Sofia: Y entonces asociado a lo que decías, pues que esta estrategia, pues como inmobiliaria o está de vínculo con los Airbnbs, pues claro a mí no me parece extraño, es que estas estructuras son supremamente inteligentes. Van adelante, claro. Y donde vaya mucho dinero siempre va a estar detrás pues, bueno, ¿Cómo lavamos dinero? Es que nos entra tanto dinero que tenemos que lavarlo. No lo vamos a lavar vendiendo empanadas. Vamos a lavarlo con algo que genere mucho dinero. Entonces, siempre, pues es que aquí han lavado plata con todo lo que uno se imagine y siempre han tenido casas, negocios, las farmacias, por ejemplo. Carlos: Y y Chris, la actividad inmobiliaria. Ya cuando yo estudiaba, obviamente, yo tengo 68 años. O sea hace 35 años que estudiaba la zona de prestigio de El Poblado [00:34:00] era toda de casas campestres a las cuales se ingresaba por rieles, o sea. Sofia: Por un camino de piedra. Carlos: Si, sin una infraestructura urbana. Y en 30 años, el paisaje es lleno de torres, absolutamente lleno de torres, saturado. Lavado, aquí no hay una economía como para que mucha gente pudiente desarrollara no, no. Eso solamente se explica porque, pero era el negocio formal. Sí, y ese "negocio" entre comillas, no, no ocasionaba la molestia como ahora la, la gentrificación, antes , por el contrario, toda la élite valorizó sus fincas para en ella desarrollar torres, se llenaron de dinero, con dinero que era con seguridad absoluta en un porcentaje muy alto finanzas para lavar.Sofia: De negocios ilícitos. Y el crecimiento de esta ciudad y sí, porque es un crecimiento demasiado [00:35:00] rápido. Pues a ti te, te debió haber tocado El Poblado ya totalmente lleno de torres pues. Pero lo que quiero decir es que acá no hay una economía tan grande como para que eso sucediera tan rápido. Entonces, pues es obvio, o sea, ahora nos parece como "uy podrían ser dueños de Airbnb." y yo diría, quién más? Quién más va a ser dueño en esta ciudad de ese negocio? Quiénes son capaces de comprar edificios enteros? O sea, quiénes tienen el dinero para invertir? Carlos: Y para recuperarlo contra rentas cortas, es decir que me parece que es una inversión de mucho riesgo. Porque cualquier evento. Sofia: Pues la misma pandemia. Carlos: Lo lo puede tirar al suelo, cierto? Quién puede arriesgar eso? El narco.Sofia: Es que mira que aquí tradicionalmente en la ciudad, acá les llamamos "panaderías paracas." Pues y son panaderías que venden el peor pan. O sea, nadie compra. Pero funcionan 24 horas. Carlos: Y son super [00:36:00] lujosas, o sea lo que son muy bien establecidas.Sofia: Y son negocios que nunca tienen clientes y venden un pan horrible y nadie les compra, pero siempre están ahí en las mejores esquinas.Carlos: Abiertas todo el tiempo. Sofia: Y además, tienen ligado como que eso lo inauguró Pablo Escobar, pues como un sistema de vigilancia. Entonces, en la época de Pablo escobar, eran los taxistas, cierto? Había como una red de taxis asociados y todavía creo que eso funciona. Pues y quiénes van a esas panaderías? Es decir, o sea, siempre siempre el narcotráfico, claro, tiene que tener negocios legales, pa poder, pues, si pa [00:37:00] poder. Chris: Órale, pues qué fuerte y todo y supongo que debajo de todo, hay como más evidencia más capas de crimen organizado, no solo narcos, pero también el estado. Pienso como en una corporación de nivel mundial que se llama Blackstone, que ya ha pasado en lugares como Barcelona y otros ciudades en donde, [00:38:00] eh, se compran un edificio, se desplazan toda la gente, o sea, todos los residentes adentro y se convierte todo en Airbnb. O sea cada depa es un Airbnb ya, como 30, 50, 100, lo que sea, y se emplean, negocios tras negocios, tras negocios para, por ejemplo, los sistemas de organizar reservaciones, de la limpieza. Pero todos los trabajadores, todos los negocios no son parte de Blackstone. Son como empleado como freelance, no? Entonces ni hay ninguna cara vista en ese dinámica que está sacando, desplazando a la gente de sus edificios.Sofia: No, yo iba a decir que de pronto aquí no, no, no es tan visible aún eso como de comprar edificios ya habitados, pero sí de construirlos. O sea, ya si se están [00:39:00] construyendo muchos edificios totalmente de Airbnb con inversiones extranjeras o locales, porque hay un personaje, pues aquí que que está como abanderado de ese tema y que dice que va, va a llenar todo Airbnb y que le parece bien.Pues yo siento que está empezando a suceder. Está empezando a suceder. Chris: Gracias, Sofía. Y pues, los efectos de turismo [00:40:00] excesivo, el sobreturismo y la gentrificacion en Medellin parece que han llegado muy rápido y fuerte. Sin embargo, los últimos años han surgido cuentas en las redes sociales criticando al turista, al nómada digital o al gringo, por lo que está sucediendo. ¿Es eso lo que ustedes todos también ven allá y están de acuerdo con la evaluación?Sofia: Pues, a ver, resentimiento. Mm, no me parece que sea muy visible. O sea, me parece que hay como mucho escándalo, moralista. Pero pues, a a ver hubo como una pequeña marcha en el alrededor del Parque Lleras en contra pues del Airbnb, en contra de la explotación sexual infantil, pero no es muy masivo. O sea, ahí sí siento que culturalmente somos. O sea, aunque el paísa puede ser muy [00:41:00] beligerante como en sus palabras, como que parece muy bravo y furioso, realmente somos muy sumisos y sumisos ante el Dios Dinero. Entonces, mientras haya negocio, se acepta, se moverá, cierto? Y entonces, este efecto, pues como que de hecho, pues en en otras conversaciones hemos dicho bueno, yo no lo llamaría gentrificación.Pues lo llamaríamos turistificación porque es una cosa que se está generando desde el turismo específicamente porque la gentrificación habla más desde un desplazamiento de un grupo social a otro, pero no necesariamente se refiere al turista. Y claro que hay un efecto porque en este momento hay una burbuja inmobiliaria.Están muy costosos los arriendo en Medellín, el costo de la vida está altísimo. Y eso digamos que aunque se concentra en el sur, en El Poblado y en Laureles, pues en el occidente, eso tiene una onda expansiva, pues que afecta como el resto de la ciudad y realmente los arriendos se han encarecido, digamos de lo más costoso a lo que era pues como más barato. Y si nos afecta a todos, [00:42:00] pero yo no veo a nadie ni organizándose, no? Carlos: Ni siquiera la relación que estableciste en una pregunta anterior con la oferta de vivienda. Porque, digamos una cosa es que algunos edificios obsoletos o que se desarrollen nuevos edificaciones para atender turistas, pero supuestamente la oferta de vivienda tradicional de la ciudad debería continuar, pero no ha sido así.O sea, la situación se ha agravado porque ya te mencioné. Esta es una ciudad muy estrecha y es una ciudad que no tiene suelo de expansión. No tiene para dónde crecer. Entonces, cuando este tema llega al tema inmobiliario, uno pensaba que iba a haber una reacción, no necesariamente resentimiento, sino una reacción social. Sofia: Por lo menos de exigencia pues ante las autoridades, pues, que tomen conciencia en el asunto. Carlos: O institucionales, o de los gremios, pero no. Porque finalmente hay [00:43:00] negocio y el negocio opaca todo en la cultura y en la mentalidad nuestra. Yo creo que, que todavía una respuesta ante la crisis, yo creo que la crisis va a seguir acentuándose. Va a seguir manifestandose y acentuándose, y que una reacción o una respuesta empresarial, institucional. Sofia: O ciudadana... Carlos: Exactamente, todavía no, se ve muy clara.Sofia: Sí, porque si uno, si puede decir bueno, "hay gente que no le gustan los turistas," pero no es una cosa generalizada, porque de nuevo, si hay como un espíritu como hospitalario o si el turista te trata bien a ti, porque lo vas a tratar mal. O sea, yo no he visto, pues, que en un negocio alguien vaya a tratar mal a un turista que no le quiera vender. No, eso no sucede. Pues, entonces no creo que esté sucediendo algo así. Pues, creo que, la situación, digamos, económica y social, estaba muy densa, pues está como muy [00:44:00] fuerte aquí en la ciudad y la gente simplemente está intentando sobrevivir.Carlos: Y digamos, el malestar que se presentó en Manila y sus alrededores es porque ciertos eventos de drogadiccion y prostitución era muy visibles. Cuando se logra el pacto de ocultar, pues todos tranquilos, porque la gente aquí es muy mojigata. Esto es una una sociedad simplemente conservadora, "católica" entre comillas y con que la cosa no se vea, pues está bien. Sofia: Yo también quería anotar que, que claro que han habido como unas pequeñas manifestaciones en El Poblado, cierto?, de residentes que se han visto afectados. Pero eso no tiene eco en toda la ciudad porque es que eso finalmente gente rica que está molesta porque ya no puede vivir en el arrendamiento, en el barrio que vivió toda la vida, sino que le toca desplazarse a otro menos cómodo.Pero no es como que se vayan a quedar sin posibilidad de vivir en la ciudad, por ejemplo. Me parece que no es como algo tan crítico. Y eso no va a tener eco en la [00:45:00] ciudad porque un montón de niños ricos se quedaron sin poder pagar su apartamento, pues, o el apartamento que quieren o en el barrio que quieren.Simplemente claro está desplazando un poco, entonces hay nuevas zonas. Eso si se llama gentrificación, estos barrios más tradicionales, más populares están siendo ocupados por estas personas de clase alta de nuestra ciudad que han sido desplazadas por la gente de clase alta del mundo, cierto?Y entonces esta gente que habitaba en esos barrios tradicionales, pues le toca coger para la ladera, cierto? Para los barrios populares. Y bueno, y digamos que esa es la incomodidad. Pero yo no siento que sea algo generalizado.O sin mucha fuerza, o por lo menos no con una llamada clara a la [00:46:00] acción. Chris: Vale, vale, pues muchas gracias, Sofía, Carlos. Entonces, si no hay tanta resistencia en las calles, me gustaría preguntarles de las acciones del gobierno de Medellin. Entonces, en mi investigación para el episodio, yo leí algunos artículos que ofrecen los siguientes datos:Ahora, "Medellin tiene un déficit de más de 50,000 viviendas según Viva, según la empresa de vivienda de la gobernación de Antioquia."Ahora, "Juan Camilo Vargas, director de Asohost, el [00:47:00] gremio de esta actividad en Colombia dice que el 40% de sus operaciones se concentra en Medellín y que el negocio no es ilegal. Entonces un alcalde no puede pasar por encima de una norma nacional."Ahora "Y aunque no ha tomado medidas concretas, el alcalde Gutiérrez también ha enviado señales de posibles restricciones para el negocio de los hospedajes cortos. En la ciudad más de 1700 lugares operan sin licencia según el sistema de información turística."Y finalmente "No vamos a acabar con las plataformas, pero si habrá regulaciones, dijo el mandatorio ante el consejo el 4 de marzo." Dice "No puede ser que en tres años hayan aumentado tanto los arriendos [00:48:00] o que la vida de nuestras familias se vuelve imposible por las rentas cortas."Entonces, pues el gobierno local habla de adoptar una postura dura contra el tráfico sexual relacionado con el turismo y la crisis de vivienda. Y dadas las fallas en Barcelona para enfrentar las consecuencias del turismo, incluso después de que su alcalde fue elegido por hacer exactamente eso, ¿Qué esperanza cree que existe a nivel gubernamental en Medellin? Sofia: No, claro esto una, pues, qué pena decirlo. Pero Chris, es que nosotros tenemos un alcalde que se cree Batman. Pues que anda en un helicóptero diciendo que va a perseguir el mismo a los ladrones, pero es toda una fachada y digamos que nuestra sociedad compra eso. Pero pues se cerraron tres apartamentos, tres edificios, o sea, se cerraron unos cuantos negocios.Eso sale en la primera plana. [00:49:00] Pero pues yo, yo tengo gente cercana que ha invertido en Airbnb. Y no han tenido ningún problema. No les han hecho ningún requerimiento. Nunca les han visitado la policía. Claro, creo que depende mucho como del administrador de la propiedad, no admitir lo que se supone que en la plataforma no está admitido, cierto? Que tengamos esta persona cercana que que está, pues como inversionista de un Airbnb, si dice nosotros no admitimos nada de eso. Y las veces que hemos tenido intentos de que alguien entre a alguien, se llama la policía, y claramente de una se expulsa a la persona. Bueno, digamos que si hay un procedimiento, pero ni siquiera a esa persona, la policía se lo va a llevar.O sea, a mí me ocurrió una cosa una vez, y es que yo estaba en una portería de una unidad en El Poblado y entró un extranjero con dos niños pequeños, con dos niños de 10 años. Y yo pensé que eran [00:50:00] sus hijos, pues como yo pensé que eran sus sus hijos adoptivos pues, pues, como que, bueno, simplemente yo vi a entrar un un hombre con dos niños, pero sí me llamó la atención como estaban vestidos los niños.Y le pregunté el portero, como esos son los, pues como que estaba confundida si me llamó la atención en la manera en que estaban vestidos. Y el portero me dijo no es que estos gringos vienen a hacer eso en ese apartamento y yo, pero ¿Por qué no estamos llamando a la policía? Y él me decía "es que los tienen que coger con las manos en la masa."O sea, no hay, un procedimiento tampoco para hacerle frente a esto. Y es una cosa que muchas veces sucede, pero no hay herramientas institucionales para que deje de suceder porque finalmente ellos están protegidos porque están en el interior de un apartamento, porque el dueño del apartamento está de acuerdo. Bueno, digamos que es toda una cadena. Entonces realmente es difícil del desuno de vista legal. lo que creo es que nuestro alcalde y muchos otros que hemos tenido son maravillosos haciendo anuncios, [00:51:00] cierto? Siendo portadas de periódico. Carlos: Aunque, aunque hay anuncios en el aeropuerto ahí, pues tú te bajas de un vuelo internacional y en el pasillo vas a encontrar... Sofia: Si, que que no, que no se admite esto, pero igual siempre vas a poder acceder a ello.O sea claro, y son muy buenos haciendo anuncios, así como han hecho anuncios de muchas cosas. Pues como se va a acabar la criminalidad, o sea, van a pasar muchas cosas, pero en el cotidiano, pues uno ve que eso no es cierto. O sea, uno se va para el Lleras y uno sigue viendo pues, toda la dinámica cierto?. Qué era muy escandaloso, Chris, y que creo que ya dejó de pasar, que es que uno se iba para el para el Lleras. Pues que no sé si estás ubicado en El Poblado, como en el mejor dicho, es como el centro del turismo, en el barrio de El Poblado, y uno veía niñas indígenas que bailaban por monedas, cierto?. Y era como, ya ni siquiera era [00:52:00] necesariamente, es que ellas fueran prostitutas, sino no que estaban, digamos, haciendo algo que la gente consideraba muy indigno y que eran niñas y que eran indígenas. Al lado de todas las, cierto? Trabajadores sexuales que se estaban, digamos, ofreciendo sus servicios. Y eso fue lo que más, alarmó a la gente, como, porque tenemos estas niñas indígenas, y entonces, bueno, la actitud fue, se van de aquí, ya no pueden estar, le quitamos las niñas a los papás. Bueno, un montón de acciones que uno sabe desde adentro que no van a tener absolutamente ningún efecto y que es posible que esas niñas la vayan a pasar todavía peor de lo que ya la pasan, cierto?, bueno, como que yo la verdad no creo que vayan a cerrar Airbnb. No creo que vayan a prohibir el Airbnb en Medellín. Carlos: Pues yo veo muchas construcciones para adelante. Y tengo compañeros o amigos ex alumnos arquitectos que dicen que los negocios que les están entrando es diseñar y construir [00:53:00] Airbnb.Sofia: Si. Y fuera de eso, pues, porque es que esos anuncios son muy fáciles de decir. Pues incluso yo he visto que en otras ciudades han empezado a regular. Que hay zonas de la ciudad que no se admiten los Airbnbs o que, digamos tienen un tiempo, mínimo, o sea que son 30 días mínimo, entonces son estancias cortas, pero de un mínimo, o sea, no es, voy a pasar el fin de semana en Medellín y me voy a des cualquiera, sino vengo a trabajar. Pero eso ni siquiera ha sucedido.O sea, no hay una mínima regulación, entonces, pareciera de pronto, si se leen los titulares pareciera pero hasta ahora no ha pasado nada concreto. Carlos: Y hay muchos enterramientos, por ejemplo, de que el presidente local, fue financiado por todo este sector inmobiliario y pongámosle raya, relacionado con el turismo. Entonces él, él no tiene capacidad moral de controlarlos. Chris: Pues justo me encontré una cita del arquitecto Joseph Bohigas, [00:54:00] y el dice que "en la segunda ciudad de Colombia, aún hay tiempo para evitar las imágenes que se repiten hoy en Barcelona," que "Medellín no puede morir de éxito." Carlos: Pues él nos lanzó esa frase porque acordáte que te mencioné que hubo un turismo académico muy fuerte y una, pues pretendía cierta hermandad entre Medellín y Barcelona. Pues eso no tiene nada de hermanos, pero la academia va para todo. Entonces, toda esta oleada de arquitectos y urbanistas de Barcelona estuvieron aquí, asesorando a las alcaldías, a los gobernadores durante unos 10 años seguidos. Todos los arquitectos importantes de Barcelona tuvieron aquí y el vino. Y él nos dijo esa frase por ahí en el 2007. Estaba en alcaldía terminando Fajardo cuando el dijo ojo que una ciudad puede morir del éxito. Entonces desarrolle la idea y [00:55:00] más o menos decía pues la gentrificación, el encarecimiento, la turistificacion fueron cosas que no, que él anunció.Claro, esta es una ciudad sin mar. La gente viene a montañas y la vegetación. Tú sales de Medellín a dos horas y estás como en una selva. No es una selva, es un bosque tropical tremendo, muy atractivo. Yo creo que ese es un atractivo que la ciudad también ayuda a traer mucha gente, es decir, Santa Fe, Antioquia, Guatape, Jardín, son municipios relativamente cercanos, muy, muy atractivos para el que viene realmente a descansar, cierto? Entonces yo creo que esto podría ser una oportunidad. Esta situación de gentrificación, turistificación, encarecimiento, actividad inmobiliaria, que de, que está abandonando la vivienda, digamos para el, para el residente. Podría ser la oportunidad para que ese morir del éxito pudiera ser confrontado [00:56:00] mediante políticas.A eso requiere mucho liderazgo de la alcaldía, mucho. Actualmente yo no veo la alcaldía con comprensión estratégica de lo que puede estar pasando y de cómo esto pueda grabarse mucho. Sofia: Sí, sí, gracias, Carlos. Para terminar nuestra conversación, me gustaría preguntarte Sofía sobre el proyecto que nos pusimos en contacto. El Proyecto NN, me encantaría que pudieras explicarnos qué es el Proyecto NN y qué hacen ustedes ahí en Medellin? El Proyecto NN es una corporación sin ánimo de lucro, pues que está interesada por apoyar procesos como de organizaciones culturales o sociales, digamos en zonas periférica de la ciudad, aunque también hemos trabajado o nos interesa mucho también la parte, digamos pedagógica o la parte de [00:57:00] formación en temas relacionados con patrimonio, con urbanismo, cierto? Como con, cultura en general. Sofia: Somos varios arquitectos que hacemos parte, pues de la organización y todos somos profesores universitarios. Entonces, bueno, tenemos como ese interés por la pedagogía y digamos que ese cruce de la pedagogía y la dignidad espacial, y el interés por los espacios de encuentro, digamos comunitarios, pues nos ha llevado apoyar estos procesos, a encontrar mecanismos o idear proyectos para dignificar esos espacios donde la gente se encuentra, donde la gente se encuentra generalmente a compartir, pero también a aprender y a buscar como salidas para gestionar la propia vida, cierto?, digamos, para superar esa desigualdad que muchas veces también tiene que ver con la desigualdad en la oferta de oportunidades, precisamente, incluso desde la, desde la educación. Y pues, porque, aunque supuestamente en Colombia, la educación es un derecho, pues realmente no se [00:58:00] cumple cierto?. Y vinculado un poquito como a esta idea de la vivienda, pues también se supone que en Colombia, la vivienda digna es un derecho, y eso es algo que vemos que no se cumple.Y, pues, ahorita mencionábamos un poquito como la conformación de la ciudad, y podemos decir que, pues esos lugares en donde la vivienda digna no se cumple, pues se da sobre todo en las laderas, cierto? En la parte alta de la montaña. Y es allí donde estamos trabajando, donde vemos precisamente que hay un tipo de urbanización, pues como muy precaria, donde los servicios básicos no están cubiertos y donde un espacio comunitario, pues cubre realmente muchas de las necesidades de las personas, cierto?Incluso, pues , como espacio de socialización, cierto? Como espacio de encontrar pares, cierto? Para enfrentar, pues, esa situación. Entonces, bueno, eso es lo que hacemos desde el Proyecto NN y bueno, y digamos que intentamos [00:59:00] reflexionar teóricamente, pues, este asunto del derecho de la ciudad y el derecho de la vivienda, pero también estamos intentando, pues, como adelantar proyectos que tengan que ver transversalmente con este asunto. Ahora en compañía de Carlos, pues que Carlos ahorita les, te contará un poco. Pero Carlos, pues es un experto en mejoramiento integral de barrios, bueno, en todas estas intervenciones que se puedan hacer en estos, en estos lugares de la ciudad, estamos, liderando un proceso de formación, pero también un proceso constructivo, si puedes llamarse así, de prevención de riesgos y desastres.Pues, porque en estos barrios el derecho a la ciudad es eso cierto? Esta gente bueno, viven unas condiciones precarias, pero además, están arriesgando sus vidas, cierto?, porque, no tienen las condiciones urbanas, pues, para que su vivienda sea una vivienda segura.Y entonces estamos encontrando y a [01:00:00] mecanismos, pues, para transmitir algunos conocimientos técnicos y pues, para mejorar esas condiciones de vida. Entonces, digamos que, pues para nosotros el derecho a la ciudad tiene que ver también con esto, cierto? De, bueno, el estado no lo puede resolver. Pero entonces, como comunitariamente encontramos alternativas para mejorar estas condiciones. Carlos: Yo agregaría que para mí, por lo menos en la experiencia profesional que he tenido, literalmente el derecho de la ciudad es derecho a la vivienda. Yo no concibo ni siquiera la ciudad sin oferta de vivienda, sin vivienda. La ciudad es un lugar para vivir fundamentalmente y dentro de estas estrategias de gestionar la vivienda.Pues, pues, vos, sabes, Chris que Colombia y Medellín es una ciudad muy, muy determinada por por el desplazamiento desde las regiones. Es una ciudad que recibe población migrante expulsada por fenómenos [01:01:00] violentos, por buscar oportunidades, por la misma atractividad de la ciudad, porque es una ciudad que se mueve, que mueve la economía.Entonces, precisamente el sector inmobiliario, digamos entretenido con Airbnb, la alcaldía que no sabe para donde mirar y la gente llegando desde las regiones expulsada de muchas formas, se ubica en unas laderas muy, muy inhóspitas, de muy difícil adiestramiento, de muy difícil urbanización. Entonces vemos que allí, desde la formación, desde la capacitación, desde la pedagogía, de, pero siempre llevando a la práctica con la red de monitoreo de puntos críticos en un barrio, con la identificación del que es un punto crítico, con los factores de riesgo del barrio. Estamos tejiendo con ellos y el lugar de reunión, la sede de Somos Por [01:02:00] Naturaleza y el Proyecto NN, ahí nos encontramos construyendo con la gente conocimiento, oportunidades, posibilidades. En eso estamos. Chris: Orale, pues suena un proyecto increíble, necesario y muy hermoso. Entonces, gracias a ustedes dos y también en el nombre de nuestros oyentes, me gustaría agradecerles a ambos por estar dispuestos a hablar conmigo sobre estos temas hoy. Igual fue muy revelador para mí y espero que poco a poco se sigan construyendo la derecha a la ciudad, a la vivienda, y la solidaridad, con la gente ahí en Medellin. Entonces, ¿Cómo podrían nuestros oyentes seguir a sus trabajos, compañeros? Sofia: Ah, bueno, nos pueden seguir en en Instagram, @ProyectoNN. Ahí intentamos compartir, pues, como parte del proceso de los proyectos [01:03:00] que que tenemos en curso y bueno, próximamente también vamos a actualizar la página www.proyectonn.com Y bueno, por ahí pueden ver como, como las cosas que estamos haciendo y adelantando. Y pues también, muchas gracias a ti por la invitación.Siempre son temas muy bacanos como de conversar, reflexionar, chévere.Carlos: Así que a la gente de Oaxaca y a usted Chris que se interesaron en estas conversaciones, pues muchas gracias.Chris: Gracias, Sofía. Gracias Carlos. Bonito día.English TranscriptionChris: [00:00:00] Welcome Sofia, welcome Carlos to the podcast The End of Tourism. Thank you very much for being with me today to talk about this very complex topic. I would like to ask you where you are today and what the world looks like for each of you there.Sofia: Well, we are here in the city of Medellin. We are together in my house, Carlos is my father, and well, we decided to get together to have a more fluid conversation, from here, from my house in the center of the city, which is a very particular center. Well, Medellin is a mountainous city that is in the Andes. It is a valley. And let's say that the center of the city has, well, very different dynamics to many centers of other cities.Carlos: It is a very narrow city [00:01:00] and on the eastern and western sides there are a couple of mountains full of neighborhoods. Right here, through the window, you can see all the urbanized mountains and in the center is, let's say, the metropolis, what we could call a more traditional city, while up there are neighborhoods or popular communes. Nowadays, they are very popular for certain types of tourism.And where are you?Chris: Well, I was in Oaxaca, the capital of Oaxaca, Mexico, also in a valley that is a bit larger geographically than Medellín. I know Medellín because I was there as a tourist maybe 15 years ago. And so, starting all the [00:02:00] research for this episode, I found how many... So I would like to read some quotes from those articles for the listeners who may not know Medellín, don't know what's going on there, according to the mass media.So, first up is Nomad List. "Nomad List is a platform that publishes its ranking of the most popular destinations for working remotely. It placed Medellin in second place last year out of 157 cities in Latin America."The next one says that"In the Manila neighborhood of Medellin, there are short-term rentals whose owners earn more than five million Colombian pesos per month or about $1,000 US."The next one said that"Although it was not carried out [00:03:00] , the local president said at the time 'that he would ban short-term rentals in the city as a measure to prevent child sexual abuse and exploitation. In that search to find a solution to this scourge, Guitierrez, the local president, met with representatives of the Airbnb platform to reach an agreement.Since then, the parties have worked together in agreement to avoid extreme measures, but to establish actions that allow preventing this crime in the city."Continuing, "Meanwhile, the number of apartments listed on Airbnb, the popular vacation rental company, rose from 8,000 in October 2022 to 14,000 at [00:04:00] the end of 2023, according to data collected by AirDNA."And finally, "recent data says that Medellín receives 1.7 million foreign visitors to a city of 2.5 million inhabitants."So, I'd like to start by asking you two about gentrification in Medellin. I found another article on the subject. And maybe if you show it, it exposes a little bit of what's going on there and says that"Wilson and Felipe, both of whom withheld their real names, each own a café-bar in Manila in El Poblado, one of the most touristic areas with the greatest economic activity. The two neighbors are among the few left on their [00:05:00] block, because practically all the houses in the area have been transformed into restaurants, small hotels and hostels, Spanish schools, or short-term rentals through apps like Airbnb, which are taken over by foreigners and are partly the cause of the high cost of housing for traditional residents. Between 2022 and 2023, rents grew between 50 and 100%.This neighborhood has changed a lot, says Wilson. It was a family-oriented neighborhood, and you see, it became a land of drug addicts and drug dealers who provide home delivery. All this 'gentrification', as they say, is due to foreign investors and everything became more expensive. Carlos, you have worked for state-owned companies in Medellín and Bogotá, the Urban Development Company. And [00:06:00] Sofia, you have worked on the NN Project there in Medellín. So perhaps you could give us an idea of what has happened in Medellín in recent years and decades in terms of gentrification and what role tourism and tourists have to play in it.Carlos: Well, I perceive this situation as extremely new and recent.It is worth saying that Medellin in the 90s was a city where nobody came. That is to say, the situation of urban violence. All this crisis that drug trafficking unleashed in the city had us marginalized from the rest of the world. It was a rather unattractive city due to its violence and relatively paralyzed investments. [00:07:00] Sofia: It was the most violent city in the world.Carlos: YesSofia: At some pointCarlos: And it required a strategy of attention between the presidency of the republic and the local mayor's office, which you in Mexico call "local presidency" to find alternatives for the future. They were called the seminars of many conversations.So, the first thing I want to show is that it is a very new and recent fact. For us, to see a foreigner, it was a footballer who came to the two clubs. Otherwise, nobody came here. Seeing Chinese or Japanese or German faces was very unique.And the paisa, the Antioquian culture is a supremely hospitable culture.People here are overflowing with kindness. It's a very curious thing. The mere fact of feeling a person from another [00:08:00] region, not necessarily a foreigner, can be from another Colombian region. The Antioquian develops skills and ways of relating, very pleasant, very attractive. The Antioquian is a very talkative person, very talkative, and is very open. He is very calm in relationships, I would say that at first. So yes, we do feel, the presence of foreigners really feels overwhelming, because it is noticeable. We live here. I live in a couple of small blocks where small hotels have proliferated in two blocks, they have been developed in the last three years.Five, six, seven hotels, and the presence of foreigners is noticeable. And as I said at the beginning, it was very welcome, because foreigners bring coins with a very high exchange rate and here, the country has an extremely commercial and business mentality. Here, the business is seen to be selling a space, so we make another space.I mean, people here are extremely resourceful in the way they do business.Sofia: Yes, and I think the city made an institutional effort to change the narrative as well. Because, as Carlos says, it was very stigmatized, because we are the city of Pablo Escobar. True.That is a very strong symbolic burden. And so an effort has been made to show other things that we are as well. I think that reggaeton has a lot to do with the visibility of the city as well. True, because let's say that reggaeton has not only produced great stars, great singers, like from here in Medellin, but [00:10:00] that reggaeton, like many other musical genres, like in salsa or, well, it exalts, well, those figures like drug trafficking, well, like a certain aesthetic as well. And so it is very attractive for many foreigners to come and get to know the city of reggaeton.And that was something that was happening, let's say, in a more organic and slower way before the pandemic. With the pandemic, it was cut off and after the pandemic, it overflowed. In other words, it happens as an overflow phenomenon. I also imagine, well, because of the desire of many people to travel and, well, to have been paralyzed in their places, and the city really wasn't prepared.I mean, I think that all that institutional effort that was made was not measured either, as to how far it could go, right? Because, although it is true that the city is extremely hospitable and welcoming, let's say that the climate is one of the things that also [00:11:00] attracts the attention of many foreigners. It is a very ideal climate, right? An eternal summer. Well, obviously there are also some structures that offer things. There are a lot of drugs, there is a lot of prostitution, right? It is a city that is also for a tourism that does not leave many good things. Also, well, you will know and you will have the knowledge, tourism even if it is not, well, this tourism of drugs and prostitution and unbridled partying. Tourism is a phenomenon that tends to be devastating, right? It is a phenomenon that makes it more expensive, then. Yes, I think that at first, it is a city that kind of wanted this to happen, but at this moment it does not know very well how to handle it.Carlos: Yes, there was also a time when the city began to take off, there was some academic tourism, because the city began to be very loud in terms of certain urban transformations [00:12:00] . This is a city that has a very powerful public services company.In Medellin, the mayor's office is the owner of a kind of local multinational that sells public services and electricity. It sells electricity to Panama and Ecuador and provides public services to some 90 municipalities in Colombia. So, the city has a really notable capacity for social investment.And then the city started to hold academic events to show off. For example, Bogota, which is the capital of Colombia, has 8,000,000 inhabitants. It has not been able to build a subway.Chris: Wow.Carlos: And the Medellin metro is celebrating its 30th anniversary. What I wanted to point out is that a very curious form of tourism has developed. And that is that foreigners come here to visit popular neighborhoods, to get into [00:13:00] Moravia, or what we call Comuna 13 here, is a very curious fact, at least because you go to a popular neighborhood where there are no comfortable services, where there are no venues, where you can see the popular show. I don't know, it's a very, very curious thing and it's incredibly overwhelming.That is to say, there are places where there is no room for people physically and they keep going, that is, there, they are, all of that is uncomfortable. But people keep going , I don't know why, but they keep coming.Sofia: It's a question we ask ourselves constantly, in fact, several friends always ask me, like, what are you here for? Why do you come here?Well, we don't understand what they're coming for, maybe because one has become naturalized. I don't know, well, everything that happens here, but one stil

An Interview with Melissa Llarena
270: The Power of Imaginative Play: How Childhood Experiences Shape Future Founders and Leaders

An Interview with Melissa Llarena

Play Episode Listen Later Feb 18, 2025 36:29


How do toys shape who we become? Today, I sit down with a fascinating toy historian Chris Byrne who reveals the hidden power of play - from how different toys develop everything from relationship skills to problem - solving abilities.    We explore why true play isn't about reaching an end goal, but about embracing the pure joy of the journey. Whether you're looking to understand the art of playing alongside your kids or giving them space to explore independently, this episode will transform how you think about playtime. Join us for a rich conversation about rediscovering the magic that happens when we give ourselves permission to simply play.   After exploring the art of play with our toy historian today, I want to share something powerful with you. My book Fertile Imagination tackles a crucial truth: we can't guide our children toward imagination if we've lost touch with our own. I'll show you the exact framework I used to reawaken and strengthen this superpower – the same one that transformed both my life and my three sons'. If you're ready to rediscover your creativity and childlike zest for life, grab your copy now: https://bit.ly/fertilebook     In this episode, you will hear:    Play is a process, not a means to an end, and embracing it can reduce stress. Imagination influences every decision we make. Playing with toys helps kids develop problem-solving and relationship skills. Adults benefit from play too—it fosters creativity, joy, and innovation. Letting children lead playtime strengthens their confidence and creativity. Kids learn by doing, and unstructured play is vital for their development. In corporate settings, a playful mindset can unlock new ideas and innovation. Fear of failure limits creativity—kids don't judge play, and neither should we.   This episode is brought to you by:    Fertile Imagination: A Guide For Stretching Every Mom's Superpower For Maximum Impact – My book is available as a hard cover, paperback, and also as an audiobook. If you are on the go and wish to quickly jot down where you can purchase the book then head to: https://bit.ly/fertilebook.    If however you want to grab the audio version then head to the show notes to click the direct Amazon link: https://www.amazon.com/Fertile-Imagination-Stretching-Superpower-Maximum/dp/B0CK2ZSMLB   About Chris Bryne   Chris Byrne has spent over 35 years in the toy industry, holding major marketing and creative roles before launching Byrne Communications, a consultancy specializing in product development, strategic planning, and marketing. A passionate advocate for the power of play, he has studied its impact on child development and creativity across industries. He has appeared on major media outlets worldwide, sharing insights on toys, play, and innovation. He also co-hosts The Playground Podcast, diving deep into the toy industry's past, present, and future.   SHARE this episode with fellow moms and entrepreneurs who want to bring more creativity into their lives! Chris's insights on play, imagination, and innovation are a must-listen for anyone balancing motherhood and career growth. Let's embrace play, rediscover joy, and inspire the next generation! Supporting Resources:   Website: https://www.thetoyguy.com/  Instagram: https://www.instagram.com/thetoyguy/  Facebook: https://www.facebook.com/thetoyguyofficial/ The Playground Podcast: Spotify & Apple Podcasts Subscribe and Review   Have you subscribed to my podcast for new moms who are entrepreneurs, founders, and creators?  I'd love for you to subscribe if you haven't yet.    I'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast for writer moms. About Fertile Imagination   You can be a great mom without giving up, shrinking, or hiding your dreams. There's flexibility in how you pursue anything – your role, your lifestyle, and your personal and professional goals. The limitations on your dreams are waiting to be shattered. It's time to see and seize what's beyond your gaze. Let's bridge your childhood daydreams with your grown-up realities. Imagine skipping with your kids along any path – you, surpassing your milestones while your kids are reaching theirs. There's only one superpower versatile enough to stretch your thinking beyond what's been done before: a Fertile Imagination. It's like kryptonite for impostor syndrome and feeling stuck when it's alert!    In Fertile Imagination, you will awaken your sleeping source of creative solutions. If you can wake up a toddler or a groggy middle schooler, then together with the stories in this book – featuring 25 guests from my podcast Unimaginable Wellness, proven tools, and personal anecdotes – we will wake up your former playmate: your imagination!  Advance Praise    “You'll find reality-based strategies for imagining your own imperfect, fulfilling life in this book!” —MARTHA HENNESSEY, former NH State Senator    “Melissa invites the reader into a personal and deep journey about topics that are crucially important to uncover what would make a mom (and dad too) truly happy to work on…even after the kids are in bed.” —KEN HONDA, best-selling author of Happy Money    “This book is a great purchase for moms in every stage of life. Melissa is like a great friend, honest and wise and funny, telling you about her life and asking you to reflect on yours.” —MAUREEN TURNER CAREY, librarian in Austin, TX           TRANSCRIPT 00:00:00 Chris: I really believe is what we play with as kids really becomes, we become a lot of that. And we had a basement in our house that had a room in it, that had a window in it. And my brothers and I would create puppet shows. And we would do that. And we would just go round up all the kids in the neighborhood and say, you have to watch this puppet show. And they did. I mean, they were good. But it was really about storytelling. It was about connection. It was about making things up and just feeling very alive in that moment, feeling very connected to who I was at that time and being able to share that with other people. 00:00:43 Melissa: Welcome to the Mom Founder Imagination Hub, your weekly podcast to inspire you to dream bigger. Plan out how you're going to get to that next level in business, find the energy to keep going, and make sure your creative juices are flowing so that this way you get what you really want rather than having to settle. Get ready to discover how mom founders have reimagined entrepreneurship and motherhood. Ever wonder how they do it? Tune in to find out. 00:01:09 Melissa: And stretch yourself by also learning from diverse entrepreneurs who might not be moms, but who have lessons you can tailor about how you can disrupt industries and step way outside of your comfort zone. I believe every mom's superpower is her imagination. In this podcast, I'm gonna give you the mindset, methods, and tools to unleash yours. Sounds good? Then keep listening. 00:01:36 Melissa: So how do toys shape who we become? Have you ever asked yourself that question as you are giving your child a toy? If that toy is going to influence their career choices ahead or the way that they are, their character. Today, I sat down with a fascinating toy historian, Chris Byrne. 00:02:04 Melissa: Now he is a 35 year plus veteran of the toy industry. He's held major marketing and creative positions earlier in his life. And he's appeared on TV talking about toys and play in the US and around the world. He's even been on the Live with Kelly and Mark show as a regular guest. And he has his own podcast, by the way, the Playground Podcast. 00:02:29 Melissa: So, Chris reveals today the hidden power of play, from how different toys develop everything from relationship skills to problem-solving abilities. We also explore why true play isn't about reaching an end goal, it's about embracing the pure joy of the journey. So, whether you're looking to understand the art of playing alongside your kids or giving them some space to explore independently, this episode is going to change how you think about playtime. So I encourage you to join us for this rich conversation about rediscovering the magic that happens when we give ourselves permission to just play. 00:03:10 Melissa: Okay, so before we jump into the conversation, I wanna just let you know that after the conversation, I would invite you to explore the art of play with my book, Fertile Imagination. Why is that relevant to you as a mom? Here's what I want you to know. It's really hard to guide our kids toward imagination if we've secretly lost touch with our own. So in my book, Fertile Imagination, I share with you the exact framework that I used in order to reawaken my imagination, play with my imagination, stretch my imagination, and strengthen what I believe to be our greatest superpower. 00:03:56 Melissa: So this framework is super simple to follow. It is guided and it is also provided in lots of really cool journaling question prompts in the book. And it's gonna be the same exact process that I used in order to really get back in touch with that little childlike spirit that all of us has, but maybe we forgot we have held quite tightly close to our hearts. 00:04:22 Melissa: So, I invite you to go ahead, rediscover your creativity, and see if you can find your childlike zest for life. Because I really believe that it's hard to teach our kids things that we may have forgotten are natural to us, and maybe came naturally to us when we were younger. So enjoy the conversation. The link to the book is available in the show notes where you're listening to this. Let me read the actual link so that you can learn more about my book, Fertile Imagination. 00:04:53 Melissa: It is a bit.ly link. So it is bit.ly/fertilebook. You can absolutely grab a copy right there of Fertile Imagination. If you wanted the audio version that is available exclusively via Amazon. So go ahead and check out the show notes for that link. Thank you again. And I hope you enjoy the conversation and let me know what you think at the end, I will share with you my top three takeaways that you can apply to your immediate mom life. Thank you so much. 00:05:28 Melissa: Chris Byrne. I am so excited to have you here on the Mom Founder Imagination Hub. How are you? 00:05:35 Chris: I am very well. I'm so excited to be with you. Thank you so much for the invitation. 00:05:40 Melissa: I couldn't get enough of your TED Talk. I was like, oh my gosh, he's not just a toy historian. He's like a toy psychologist. I loved it. I loved it. So welcome to the show. Chris, I want to just start with the big, big question on my mind. Help me understand from your perspective, decades in the industry, learning about the art of play, like what is an imagination to you and do you consider it a superpower? 00:06:12 Chris: Well, I absolutely consider our imagination our superpower. It is the one thing that, really one of the many things that really define us as human beings. Nothing happens in our world that doesn't start in the imagination. It can be, what do I want for lunch? Or what do I want to be when I grow up? Or should I marry this person? Or should I have children? 00:06:34 Chris: Or whatever it is because we begin in the imagination and other kinds of animals, you just put food in front of them and they eat, it's instinctual. But for us, it's not- as humans, it's not just instinctual. We literally create our worlds on a daily basis and that starts in the imagination. 00:06:54 Melissa: I agree. And it's interesting because as a fully grown adult, I would say that when I was writing my book, Fertile Imagination, and I see it as like a superpower for moms who are technically adults. I feel like it's a topic that is seldom discussed amongst adults. Like, is this something that you are noticing? Or maybe, you know, people that have that childlike quality because of your industry? What's your take on imagination, the art of play, and being an adult? 00:07:30 Chris: Well, I think all of those are really critical to who we are, because play is really the act of asking a question, what if? What if I do this? What if I, you know, as an adult in can be, what if do whatever? For me, as a kid is like, what if I jump off this wall? What's gonna happen? You know, but we grow up and we have a little bit more, more adult kind of perceptions, if you will, for that. And it really is like trying to spin out a scenario. 00:08:06 Chris: So if I am going to take a new job, for example, what is that gonna be like? Who am I gonna be working with? And we begin to develop stories around things in our imagination. And those stories are very important because we really can't take action to make things real until we've imagined them as a concept. 00:08:28 Melissa: Yeah. And so, okay. So this is something that I'm struggling with right now. This is like real time, I need some help, get me unclogged sort of stuff. So this idea of having a story in my mind and having a vision I want to make real, the vision side of it is so hard right now for me to see, mainly because it's like, there's things that I've envisioned in the past, but I haven't made happen. So I don't know kind of like how to play myself to a solution or a vision or just kind of like, think with a little less of like the past, you know, like hindering this vision. 00:09:15 Chris: Right. It's a great, it's a great thing. I mean, I'm sorry you're going through that, but I think that if you look at how a child plays, right, when they get an idea and they don't sit there and think, well, if I just do this or I do this or I do that, it's going to be fun, right? They come, that's not fun. I'm done. I'm on to the next thing. And I think as adults, we should do that too. If something is becoming too much effort, if it's not working, then we just drop it and go on to the next thing. 00:09:47 Chris: And I don't think there's any harm or foul in that. And I think that when you look at a kid who is imagining and playing, they're not judging the play as they're doing it. They're looking at well, where did this take me and where should I go next from it? And it's a much freer, kind of more peaceful way to go through the world. 00:10:08 Chris: I mean, I talk about things that I've done that turned out to be mistakes. And I call them I said, well, that was a once in a lifetime experience. As in I don't have to do that again. I learned the lesson. 00:10:20 Melissa: Yeah. And I think, you know, approaching any problem from that perspective releases that pressure to get it right the first time. And it gives you like the levity to get back up and just be like, okay, let's go at it again. And I imagine like, cause I noticed also, and I know that this side of it might be a little bit more conventional thinking, but like, you actually bring these ideas into corporate settings, you know, the art of play. 00:10:51 Melissa: And I'm like, if I think about the different environments where it's not okay to play. It's not okay to make mistakes. Like how do you sell that idea of we're just playing right now and don't get frustrated if it works or not in like a corporate setting, you know? 00:11:11 Chris: Well, one of the things that's so interesting in a corporate setting is people come into a meeting or a brainstorming and they're focused on one specific outcome, right? So if you're focused on an outcome, you kind of end-run the process of play because play is a process. Play is asking, what if, you know, let's go down this road and let's go down this road and see what it is. So I always encourage people to be as off the wall as possible. I will give you an example that almost got me fired. 00:11:43 Melissa: This is a good one, okay. 00:11:44 Chris: And nobody will like it, but I was working with Ideal, with Ideal Toy Company and we had the Shirley Temple doll. And nobody, we had these porcelain $400 Shirley Temple dolls and Shirley Temple dolls were huge in the '30s and still with doll collectors, but nobody was buying them. And we thought, how do we get rid of them? And I said, well, why don't we put them on the QE2 and use them as skeet? Like people can launch the doll. 00:12:11 Chris: So the brand manager got really mad at me. And told me I was inappropriate. But as we talked more, we ended up doing a doll collecting event with Cunard that actually turned out to be good. So the idea is, go out there and play off the wall in a safe environment, obviously. So the idea of creating an environment where it's safe to play, where it's safe to have that sort of impulsive childish response to a situation is okay. 00:12:45 Chris: We would never have promoted that in a corporate sense. But the idea that we were just playing with ideas and being silly. That opens the pathway to being really creative and to seeing what could actually work. And then once you get that, you put the action steps in place to get to the next step. 00:13:05 Melissa: Yeah, I think just, you know, going crazy and just really trying to break out of conventional thinking and our very logical pathways in our mind, it's like first we do this, that, the other. It's almost like some sentences, right? And the way we like greet each other, it's so like rehearsed that to come up with something like, oh my gosh, I love your outfit. You know, it reminds me of like a toy soldier or something. It would be like way off, but it would start rapport, I think. Rapport or like, you know, people would be like, kind of weirded out. But I've always tried that. How can I not weird people out? 00:13:44 Chris: Well, it's, right, well, that's always a question, but I don't really worry about that too much. But I think that one of the things, again, as I was saying about process, but also getting over fear, right? As adults, we think, well, what if I get it wrong? Children, when they play, if you watch them play, they don't worry about getting it wrong. They just think, well, that didn't work. That didn't do what I wanted it to do. Let me do something else. They haven't built a hierarchy of judgment and really being unkind to themselves about doing something wrong. 00:14:19 Chris: And if you embrace play, there's really no kind of, you can't be wrong when you're playing, right? Some things may be practical, but there's imagination and there's spinning things out, things that might never become real, but then things that actually could practically become real. And the process of getting to that point is actually pretty joyful. 00:14:42 Melissa: And I think we could all use some more joy these days, that's for sure. Adults and children alike. So let's see, let's go back in time. So let's go back to the time where you recall maybe playing with a toy and feeling like an insane amount of joy. If you can think about, you know, your one moment or one of the moments, I'm curious to hear your perspective. 00:15:06 Chris: Well, it's really interesting because one of the things that I really believe is what we play with as kids really becomes, we become a lot of that. And we had a basement in our house that had a room in it. They had a window in it. And my brothers and I would create puppet shows. And we would do that. And we would just go round up all the kids in the neighborhood and say, you have to watch this puppet show. And they did. They were good. But it was really about storytelling. It was about connection. It was about making things up and just feeling very alive in that moment, feeling very connected to who I was at that time and being able to share that with other people. 00:15:52 Melissa: Wow, so that's interesting. So it's funny because I feel like maybe I was, because I was an only child for most of my upbringing, like a lot of the things I did were just on my own and I had to really figure out how to make something out of what was around me. So let me share like this one thing that I would do to just pass the time. And of course, like in the background, like there was like maybe Magnum P.I. playing or, you know, name- Hawaii Five-0, whatever my mom was into. 00:16:25 Melissa: So I would go to the closet and I would take out a shoebox. And I would proceed to create like a scene. So they're called dioramas. I looked it up because I was like, this is a weird thing that I just kept doing all the time. And then I would create little figurines and put like little slots, you know, on the sides and move the little carboards in and out, you know. And I was like, okay, I have to ask Chris, like, what does that say about me? I have no idea. 00:16:56 Chris: Well, I mean, I would say it sort of starts you as a storyteller, which is what you're doing today. You're telling stories and you're facilitating other people telling stories. But it's also, I mean, especially for children at that age, it's about trying to make sense of the world and the stories they tell us, like trying to make sense of relationships. I'll tell you another story. 00:17:18 Chris: Years ago, we were playing with some kids with Barbie dolls. And they had all these different Barbie dolls. And one kid took all the blonde Barbie dolls and they were making fun of the brunette Barbie doll. And we were just watching this and going, yeah, this is somebody who is working out a reality in their life. 00:17:38 Chris: And that is really what play is, because even as she, in this case it was a girl, became powerful in that situation, was able to stand up for herself, you're giving your brain the sense that you can actually do this. If you do it vicariously, you've already had that experience on some level. So that when you confront that in real life, it might be easier, or you might have a solution. 00:18:03 Chris: I mean, how many times do you go into a situation, an interview or whatever, and you've rehearsed what you're gonna say? And your brain already knows that. It's like visual, what they talk about in sports about visualizing, you know, the outcome. You know, you're already having that experience, which is so cool. Cause our brain doesn't know the difference sometimes between reality and what we imagine. 00:18:24 Melissa: I love that. I love that. And so, yeah, who knows what I was trying to work out? There are a lot of things going on in my home. I'll tell you that much. But yeah, I think, you know, that idea though, just like trying to work things out that, you know, maybe you don't have that first person experience with, but like doing it through the use of a toy. Have you noticed at a curiosity any sort of changes with the dynamics between toys and kids now that there's like AI sort of toys out there? 00:19:01 Chris: There are so many different types of play experiences. What we were just talking about is more traditional doll or action figure or stuffed animal kind of play where a child is really doing that. Some of the other stuff with AI or licensed space like Star Wars, Marvel, all of that is beginning to understand yourself as a capable human being. 00:19:23 Chris: So for example, if I'm a superhero, I can feel. I can have the feeling of what it's like to be a superhero. And I always say, if your life is all about mom is in control, eat your peas, get in the minivan, do your homework, suddenly if you're a superhero, that's very empowering. And then empowering as an individual to be able to confront the world in a different way because you're empowered. So it's very classical, the kind of totemistic idea that we take on the powers of the superheroes. 00:19:59 Chris: And even though we're not gonna fly, we're not gonna lift, we're not gonna pick up a truck, we're not gonna do that, you have the emotional sense of capability, which is really what it's all about. 00:20:10 Melissa: That's interesting. I think, I mean, I don't know. Now that I think about my kids, for example, their toy experiences these days is really YouTube videos and playing video games and things like that. And I wonder if that's also along the same thread of what you just said, feeling the different capabilities like running fast or jumping high, things like that. 00:20:37 Chris: I think definitely. I mean, it's, you know, YouTube videos are like today's cartoons, right, on some level. You know, I grew up watching cartoons and, and it was- so they're looking at who are my role models and who are, you know, somebody's doing something. Oh, I'd like to try that. And, you know, or oh, wow, they tried that, I'm not gonna do that, but what would it be like if I did this kind of thing? 00:21:03 Chris: So I think that it's a window on the world and people are always concerned about screen time and I'm never concerned about screen time so much as I'm concerned about what's on the screen. So that is what's being modeled through the YouTube things, things that you as a mom or a parent want your child to be consuming because it can be very supportive or it can be kind of dangerous depending on what kids have access to. 00:21:30 Melissa: Yeah. And it's so interesting what you're sharing right now, because I mean, I had Saturday morning cartoons, for example, and I ate a lot of cereals with all the dyes and all these other things. And my kids literally tell me, they're like, oh, we want to have Saturday morning cartoons just like you. But of course, it is that YouTube thing. And I limit it to SpongeBob. Like, that's appropriate for their ages right now. 00:21:54 Melissa: But I think that's so interesting, this whole idea of rehearsal and visualization and imagination. I wonder because when it comes to toys and just the way that they've changed through the years, how did, for example, Tickle Me Elmo, how did that support people in terms of capabilities or anything? I'm curious. 00:22:22 Chris: Well, Tickle Me Elmo was kind of an outlier in that, you know, in terms of classical play. Tickle Me Elmo became a fad, right? And fads take on a life of their own. They kind of jump the shark or jump from the toy industry because Tickle Me Elmo started as an entertaining little preschool doll for preschoolers, infants and preschoolers. Suddenly it becomes this whole cultural phenomenon that everybody has to have. 00:22:50 Chris: It becomes, so it's a fad, so it becomes kind of a marker in time. So if you were around for Tickle Me Elmo, and you remember that, it's sort of a springboard to your memories of what the latter part of 1996 was about, because that's when Tickle Me Elmo was really huge. So that's not really kind of play in the way that I talk about it a lot. That becomes a cultural event. And my other joke about Tickle Me Elmo, Tickle Me Elmo was $40 really, basically, or more. You know, you can have a Tickle Me Elmo and be really cool for a lot less than you can have a Birkin bag. 00:23:26 Melissa: Wow, yeah, that's true. That is true. It's so funny, this conversation just takes me down the whole nostalgic route. Like I'm thinking about my Steve Urkel joke pull doll. Do you remember that one? 00:23:39 Chris: Yeah, yeah, of course. 00:23:41 Melissa: Yeah, so anyways, I'm totally like aging myself right now. I'm like, oh, I had Steve Urkel and I had Popples and all the like. What do you think, you know, nostalgia? Let's talk about that. Because I feel like a lot of marketers use that, you know, in order to kind of like pull forth a certain generation, let's say. And I even feel like at a supermarket, like I'm like, I think they know who their shoppers are with the music. But let's talk about nostalgia. 00:24:09 Melissa: Like, and again, thinking about more quote unquote modern toys, you know, like. And back to like these like electronics, like do you think that it'll be the same sort of calling card, I think is the right phrase? Like when someone starts saying, oh, like, let's say 10 years from now, you know, what's the name of the- Stumble Guys? Like, do you think that people will say like a certain like thing on video games and it'll have the same emotional pull as like Tickle Me Elmo, Popples, or Cabbage Patch? 00:24:41 Chris: It's hard to know. The thing about nostalgia is it's really for adults, right? Nostalgia is for people looking back. When you're three and four, you're not nostalgic for much. You're not remembering much. Maybe you remember your pull ups, right? When you had your pull ups. But you don't, you're not really nostalgic for something because you haven't been around that much. 00:25:03 Chris: The challenge from a toy marketing standpoint is relying on nostalgia to sell toys. Because I mean, yes, there's a certain level of you as a mom had My Little Pony or Littlest Pet Shop or any of those huge hits, Masters of the Universe. And you want to share those with your child. But for it to engage your child's imagination, there has to be something authentic to them. It's not just, mom liked this, so I'm going to like it too. That doesn't really work. 00:25:31 Chris: Look at Barbie and how Barbie's been redefined over the years, because Barbie always reflects the culture at any given time. So in 1959, she could be a fashion model or a bride, right? Pretty much, those are the Barbie options. Today, there are hundreds of careers and there's hundreds of abilities. And Barbie, the Barbie line looks like the world kids are growing up in, just as it did in 1959. It's just a more diverse and broader world with more possibility for girls and women today than it was in 1959. 00:26:08 Melissa: So when it comes to the toy industry, who's actually using their imagination to come up with like what to make for the future? Like, is it a combination of kids and adults? Is it like who's actually imagining like right now, like in the Mattels, et cetera, you know, what's coming down the line like 10 years from now? It's going to be hot and cool. And like, how do you how do you imagine something like that? 00:26:36 Chris: Well, it's hard. I mean, I think I think it's like, you know, my crystal ball usually needs a shot of Windex so I could get a clearer sense. But it's more an art than a science, that's for sure. And it's looking at trends. It's looking at how are kids playing, how are they interacting, how are they socializing, what is fun to them, and what's going on in the culture at large. Because the toy industry always reflects the culture. 00:27:03 Chris: We're always reflecting, because kids, you know, most healthy kids, they aspire to being big. They wanna grow up and they want the things like their parents have. So back in the, you know, in the early 2000s when cell phones came out, you saw tons of preschool cell phones, right? You don't see that so much anymore because the preschoolers have a real cellphone. 00:27:25 Chris: But you see things that will allow them to feel like they are part of the culture and they are growing up into it and that they are older and perhaps more capable than they really are because that's an important imaginative tool to help in the maturation process. 00:27:41 Melissa: That's fascinating. So that's true. It was definitely a lot of like, I don't know, mommy and me things. Like you see them with like a cash register or like a Target cart, right? The plastic little one, right? Cause their parent is shopping at Target. And so I wonder because it's like, there's some habits that as a parent, like maybe we wanna shake off ourselves, but we're inadvertently doing a lot. 00:28:06 Melissa: So like the cellphone one, I'm like, oh God, yeah, mommy has a cellphone and now her child does too. And it's like, how can I stop? And it's a reinforcement, but I'm wondering, okay, so in terms of the future and in terms of toys, have you ever done or seen any sort of things where the mom was playing with the child versus the child was playing by themselves? Like any differences there? 00:28:31 Melissa: Because I would love to just kind of inspire a listener right now to consider the fact that actually getting lost in play with their child can be even more beneficial than just having your child play with a toy to the side and you're doing something completely different. 00:28:52 Chris: I think that is critically important. One of the things that we're talking to parents of Gen Z and Gen Alpha kids. And Gen Alpha was born 2010 to this year. And one of the things that parents talk about is some of the best part of their day is when they're playing with kids. And what I always suggest is that if you're playing with your kid, especially if they're a preschooler, let the child run the play and you respond. Don't tell them, oh, look at this, oh, do that. 00:29:24 Chris: And you don't have to teach, it doesn't have to teach them anything, right? It doesn't have to teach. Kids are going to learn. So really letting that child's imagination drive the experience because, you know, I think every parent has had the experience where your child comes up with something and you go where did that come from? 00:29:45 Melissa: 100%. All the time. 00:29:47 Chris: And it's because they're sponges and they're listening to their absorbing everything and then they're processing it to their childlike brains or their childish brains. So I think that letting the child do that, but being there and being in communication is really important. 00:30:02 Chris: When I was growing up and maybe when you were too, we had three different worlds. We had kid world where no adults came in and the kids were doing that. We had adult world where we weren't allowed, where the parents would do that. And then there was family world, which is dinner and vacations and being yelled at about your grades or whatever that was. 00:30:21 Chris: But those three worlds don't really seem to exist anymore. And parents and kids are much more integrated in one another's lives. I think that's an outcome of COVID. It's actually a very positive outcome from COVID. Because you as mom and dad, have fun with your kids. Come on. It's, again, back to the idea of process rather than outcome. They don't have to become an expert ball player. They don't have to become an expert thing at times. They can actually just learn and play and discover the world and share those discoveries with you. 00:30:51 Melissa: Yeah, I love that. And I think it's an opportunity for someone that has to think a lot in life and feels the stresses of life to kind of let go and just stop thinking and just going with what is. Be present. You know, be totally present. 00:31:12 Chris: Be totally present and just be open to what it is. It's trying not to, as I was saying, it doesn't have to have a definitive outcome. And the one thing I think we've lost track of, often in our culture right now, is the idea of embracing process. It's really okay to make mistakes. It's really okay to try something, as long as you get up and start again. 00:31:36 Chris: I mean, how many times have you, I was talking about, for me, I learned to ski late. And I'm a really mediocre skier. I'm enthusiastic, but I'm not good. And I had somebody who was teaching me and he said, Chris, eventually I was scared. Eventually you're gonna have to point your skis down the hill. So I did it, I fell a lot, I did that, but I was so eager to learn that I'd fall and get up again. 00:32:04 Chris: I had to learn how to get up, but that's the thing that I think is, you know, if you have an idea of where you'd like to go but embrace the process on the way there because who knows what you're going to learn and what you're going to discover. 00:32:16 Melissa: Yeah, I definitely agree with that. I think that's the key to any goal. It's just you have to really fall in love with the process as you head towards the vision the goal, you know, whatever it is that you're trying to accomplish. And I also love the fact that, you know, as with play it's like there's something that's so pure about it, you know, when left on unmanipulated. 00:32:40 Melissa: It's like as a parent, we might have this desire to like educate our kids up to wazoo with regards to like every educational toy out there and every moment with we're with them, we're teaching them another language or coding or something. But I think, you know, just being open to a little bit, you know, unstructured play and that time with your child has so many benefits. And I think, you know, Chris, the work that you're doing just stay connected to like play as just being fun and okay and positive is is really helpful. Thank you so much for the work that you've done. 00:33:18 Chris: Thanks. I mean, I really do think that it as I mentioned, joy before it really does open the door to being joyful and going, oh, wow, that's fun, you know? I mean, when was the last time you said, oh, wow, that's really fun. 00:33:31 Melissa: 100%. Yeah, for sure. Thank you so much, Chris. So where can listeners continue to learn about their favorite toys, about you, about what's up ahead in the toy industry? 00:33:42 Chris: You can come see the toyguy.com. That's probably the best way. And then on Instagram, I'm thetoyguy. So, yeah. And I post a lot of pictures from things like toy fairs and different things and things that are fun for me and that make me giggle. 00:33:58 Melissa: Thank you so much, Chris. Have an awesome one. 00:34:01 Chris: Thank you. 00:34:03 Melissa: My three takeaways for this conversation that you can absolutely take to the bank and apply in your home are, first, this idea that playing with our kids has benefits for our kids, but also for us, especially if you're a super busy mom. It helps put you in the immediate present moment. So that's a big, big perk right there. 00:34:25 Melissa: Second is this idea that it's all about the process as opposed to the final answer. And that's something that I know is hard to think about when you're constantly thinking about what's next in your life. So thinking about play as something that you're doing and it's a process instead of to put together that Lego piece might be a great shift in your thinking and could relieve you of the stress and pressure of getting things right. 00:34:54 Melissa: Second, no, actually my third point here, my third point would be that in terms of the benefits of playing, I hadn't realized how psychologically deep some of these toys touch the minds of our kids. So the simple fact that we are thinking about, you know, working out relationships when you're doing a diorama, which may have been the case for me personally or maybe you're thinking about whether or not you have skills like a superhero, which was something that Chris shared, I just never thought about how psychologically interesting playing with a toy could be. 00:35:32 Melissa: So you might want to reconsider this idea that playing with a toy is just a way to distract your child or keep them focused on something other than breaking things. There could be real psychological value and also something for you to just consider psychological opportunity when it comes to the choices behind the toys we put in front of our kids. 00:36:00 Melissa: So I hope you enjoyed this conversation. Again, this episode was brought to you by my book, Fertile Imagination. I am excited about it. It's a guide for stretching every mom's superpower for maximum impact. Your imagination is your superpower. That is why I had Chris on the show today. I encourage you to check out the show notes where you could actually purchase the book and let me know that you did. I am always available for conversation and any questions. Thank you so much and I appreciate you. And until next Tuesday.

Building Texas Business
Ep086: Exploring Houston's Economic Horizons with Brian Freedman

Building Texas Business

Play Episode Listen Later Feb 12, 2025 35:58


In this episode of The Building Texas Business Podcast, I spoke with Brian Freedman, president of the Bay Area Houston Economic Partnership, about the region's economic development. We explored the five major industry clusters shaping the area: maritime logistics, aerospace, tourism, healthcare, and petrochemicals. Brian shared updates on aerospace innovations at Ellington Field, including projects by Intuitive Machines and Axiom, while highlighting new opportunities in defence manufacturing. I learned about Project 11, an initiative to expand the Houston port's capacity for larger vessels. Brian explained how this infrastructure project connects to the broader transportation network, particularly the role of trucking in regional commerce. We discussed how the partnership works with legislators and industry leaders to address challenges like insurance costs and maintain economic momentum. The conversation shifted to leadership approaches and team dynamics in Texas business. Brian described how maintaining diverse projects keeps his team engaged and motivated. We explored how the Houston area supports entrepreneurs through community partnerships and mentorship programs while adapting to technological changes like AI integration. Our discussion wrapped up with a look at workforce development in the region. Brian explained how educational partnerships are building talent pipelines across industries. We covered the importance of aligning training programs with business needs while fostering collaboration between municipalities, educational institutions, and industry partners. SHOW HIGHLIGHTS In this episode, I spoke with Brian Freedman, president of the Bay Area Houston Economic Partnership, about the economic development in the Houston Bay Area, focusing on the recruitment, retention, and expansion of primary employers. We discussed the significant industry clusters in the region, including maritime logistics, aerospace, tourism, healthcare, and petrochemicals, and their impact on the area's economic growth. Brian highlighted developments at Ellington Field, including contributions from companies like Intuitive Machines and Axiom, as well as the emerging opportunities in defense manufacturing and procurement. The episode explored the scale and impact of the Houston port, emphasizing Project 11's role in expanding the port's capacity and the importance of logistics and innovation for regional prosperity. We delved into the leadership style necessary for motivating teams and managing diverse projects, underscoring the Texan entrepreneurial spirit characterized by ambition and a collaborative approach. Brian shared insights on the vibrant business ecosystem in Texas, driven by a skilled workforce, affordability, and a supportive community fostering partnerships and mentorship opportunities. Finally, we addressed challenges like insurance costs and the importance of regional solidarity, as well as efforts to mitigate natural disaster risks and promote responsible development in the area. LINKSShow Notes Previous Episodes About BoyarMiller About BAHEP GUESTS Brian FreedmanAbout Brian TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Brian Freedman, president of the Bay Area Houston Economic Partnership. Brian shares how his organization works to recruit, retain and expand primary employers in the greater Houston Bay Area region. Brian, I want to welcome you to Building Texas Business. Thanks for joining us today. Brian: Hey, thank you, Chris. Honored to be here and great to catch up. Chris: Yes, likewise. So let's start with you. You're the president and the organizational name's kind of long it's Bay Area, houston Economic Partnership. Tell the listeners a little bit about what that organization is and what it does, to kind of put the rest of our conversation into context. Brian: Sure, so BayHEP is the short version of it. So we're the Regional Economic Development Group and kind of the, as I like to say, in the Houston-Galveston region. We're three o'clock to six o'clock on the watch, face right. So we kind of go out 225, all the municipalities and cities going out east and then going down south 45. We go a little west of 45, but really that 3 o'clock to 6 o'clock and we're really focused on how do you recruit, retain and expand primary employers in the region with the idea that if you can get great companies located here and have a group of industry clusters that are cranking away every day, that we can have a great place to live. We have great involved residents that are in this area and opportunities for the folks who live here and kind of build what the future will look like for this region. So a lot of good stuff going on and, happy to get into that a little further, we do economic development, recruitment, retention projects. So how do we get companies here? We do some grants and then we're a membership organization is how we're funded. So we have about 300 members, 19 municipal members, Harrison-Galveston County, the port, the airport system. It's really how do you get the leaders of a region to work together to advance what we're doing here. Chris: Wow, I mean that's it sounds like it's easier to say and harder to do coordinating that many organizations and trying to get everybody pulling the same direction. Brian: Yeah, it's a lot of fun and we get to work with a lot of great folks. That's how we met Chris, is that, you know, through some of our mutual connections. But yeah, you know, it's really when you can get generally like-minded folks thinking about what the future of a region will look like and pretty aligned and working towards that effort, it's more of a well, it's just fun and you can create a lot of impact and we're seeing that and I'll be happy to dive into some of the specific projects we're working down here. But I mean, you guys do it too at Boyer Miller. Y'all are working with clients all over the spectrum of types of industry and you have to adapt to what's coming up, what's at you, and be ready for that kind of stuff. Chris: Yeah, no doubt. So yeah let's jump into some stuff. Let's talk first, because when I think of your area, obviously the first thing that comes to mind is NASA and all that's going on around that, and that leads me to technology and innovation. So what are some of the emerging technologies or trends that you're seeing that are kind of helping shape the future of Texas and kind of the business opportunities, at least in your region and for Texas? Brian: Yeah, so I call it kind of the big five on the industry cluster. So everybody thinks about this area for NASA, which we love right, because it really is a crown jewel out here, but I call it the big five right Maritime and all the associated logistics with the port aerospace and aviation, so nasa, but also the great work that the airport system is doing with ellington and hobby, tourism and recreation, health care and all the hospitals that have campuses down here, and then specialty and petrochemical and the energy industry partners and every one of those ecosystem has a ton of stuff going on. So I'm happy to talk about some of those more granular. But a couple of observations. One is that often overlooked in this community and really an asset to the greater Houston region is Ellington Field, ellington Airport, the Spaceport and, if you haven't seen or heard about it, the work that's going on at the Spaceport. They have three new beautiful buildings. One is occupied by Intuitive Machines who just put the first commercial lander payload on the surface of the moon. One is occupied by a company called Axiom that's building the next generation of commercial spacesuits and the next generation space station, and Collins who do spacesuit design in our building and maintaining the current spacesuits. They've set up huge facilities down there and so new stuff coming on. But I'm equally excited about just across the runway is the 147th Reserve Group. So there's a reserve unit out there, a reserve base, and the defense opportunities are pretty exciting. So that's highlighted by the 147th. But almost every branch has a reserve unit out there, save the Space Force, and we're working on that. And so the opportunities with defense manufacturing to come out to do more work in Houston and some of their innovation units and, as mundane as it sounds, some of the procurement opportunities, because when it comes to contracting, having a group of folks here would be a great opportunity for Houston businesses to then pipeline the work that they're doing into the broader defense industry, which can be really exciting. One other thing I'll mention, chris, is if you just look at the path of predictable growth for Houston, right, it keeps going out and we see that on our freeways every day. So there are growing pains that come with that, but for our region it's that steady march down Interstate 45. And so while Clear Lake Lake City are starting to get to fully built out and we're looking at what is the next generation of building look like, what's redevelopment look like For communities Dickinson, hitchcock, santa Fe, to some extent Texas City. Although they've got quite an industrial complex too, there's still space, and so it really brings up the opportunity of we can handle big projects, and whether they're industrial or tourism, there's a lot of opportunity that comes with that. And so, as folks you know, as we get built out further and further, those cities that were, they've always been important cities for the regional ecosystem, but they become major players, and so it's exciting to be able to work with them on that stuff. Chris: Sounds like a lot of opportunity for real estate development. Both residential, retail, commercial, industrial kind of all sectors are going to be playing a big part in that ongoing development in your region. Brian: Exactly right, and part of the the fun part is, you know, every municipality has different targets of what they view their economic development to look like, and so we get to work with all those cities where some may be really focused on industrial, some may want to be bedroom communities and be focused on residential. Our task is to support those municipalities in this region and identifying good players to bring to the table. So who are people that we do want to partner with that can follow through on the projects that can complete them and make them successful? Chris: That's great. I think I saw recently in the news the state of Texas, I think it's had something along these lines, but it's like a fund for the space-related projects and I know I don't know the name and you'll help me with that, but I seem to recall the governor being in town and making some big announcement right after the first of the year. Tell us a little more about that. Brian: Recall the governor being in town and making some big announcement right after the first of the year. Tell us a little more about that, exactly, right? So last legislative session, primarily spearheaded by State Representative Greg Bonin, who's also a Princewood resident he's a neurosurgeon by day and State Representative Chairman of the House Appropriations Committee during the legislative session he had this kind of vision of how does the state become a major player in the aerospace community. That's been primarily a federal and private industry ecosystem and so under his vision and with support of the state legislature and certainly the governor, they put a bill that kind of outlined a direction for the state to engage and the resources behind it. It does a couple of things. One was it allocated about $200 million that would go to Texas A&M to build this A&M Space Institute, and they've actually located that property. It will be built on the edge of the campus of Johnson Space Center, so for those familiar with this area, right on Saturn Lane. $200 million building and, as A&M's laid it out, it will have a giant lunar rock yard and a giant Mars rock yard, with the idea that everybody who's going to be doing hardware testing to send vehicles to the moon or Mars is trying to figure out where they're going to do that testing. And it's very expensive to build, obviously. And so companies are making the decision whether they're going to build that themselves and own it or go lease it somewhere. And if they're going to lease it, where do you go to find a giant brockyard to simulate the surface of the moon? And well, the state of Texas answered that question. So what was so unique about that vision was that everybody who's in that ecosystem now wants to come through Houston Texas to do that work. And so with that comes the. You know they'll be have their lab space there, but they may need offices, they're going to be hiring people, and so you know it really is an exciting project. They had their groundbreaking right at the end of last year. I've seen surveyors out there and they think they're going to have it open in 2026. So an aggressive timeline to get that bill. The other part to that bill was they appropriated $150 million for a grant program to incentivize sort of space leadership projects in the state of Texas, and so they have to set up a whole, basically administration portion of this. So they selected nine individuals to serve on the Texas Space Commission who will review those proposals and evaluate them and make awards. Who will review those proposals and evaluate them and make awards, and then they'll also help advise the state on how they can keep their leadership position in the space industry. The first of those awards about 20 million were released a little over a week ago. A couple of them were studies for best use for really cool stuff hypersonic corridors where to be landing sites. And then another one that is to build assets and capabilities for the Space Force in El Paso to have more of a Space Force presence in the state of Texas, which is pretty exciting. So I'm optimistic about what's to come for them. Chris: Yeah, that sounds very exciting, especially the concept of the $200 million grant to A&M and what that will do to attract other businesses that might relocate somewhere else and bring them here, and then all the ancillary things around hiring and jobs et cetera. So that's very exciting news and I think it'll be just around the corner. Let's maybe talk a little bit about. You mentioned Maritime and the port, and most Houstonians People know the Houston port is a significant asset for our area. Anything going on there that's new and exciting, any kind of innovation that you see when you're working with those entities and, I guess, the port authority itself. Brian: Yeah, well, maybe the first thing when you talk about the port is you're absolutely right just how important they are to this well, to all of Houston, but to the country I mean. The scale of the port is hard to appreciate when you just look at the numbers. But the numbers are just staggering. The amount of capability that comes through there and the innovation really is on the logistics and management for how they move, whether it's container, you know, container containers, the container terminal organization and how that whole orchestra is operated, and the capabilities from there is that the crane's getting stuff unloaded, then onto the trucks or rail or whatever. The mechanism to get it out and then get it distributed to wherever it's going is pretty incredible, and so we're fortunate to have them. We just hosted the new port CEO, charlie Jenkins, who's a phenomenal leader, has a career in service of the port, is the right guy to lead that organization into their next chapter. But he made this comment kind of in passing that the port's operations are about a $3 billion a day operation, you know, and you just go like a day of economic impact that go into that. The scale is really something impressive and that's all the trickle out and secondary effects. But it's amazing, the big thing that's going on with them right now is Project 11. That's the deepening and widening of the channel that'll allow additional capacity to go in there, and it's really writing the story for what the next chapter of the port's future is and Houston as a trading hub is, and so it'll allow for larger ships to come through. The additional investments they're making will allow faster turn and movement of all the goods that are on there. So a lot of good stuff going on. I guess the last thing I'll say is anybody who's driven 225 sees all those trucks and I drive it pretty regularly and see that too and as much as nobody likes driving next to a giant 18 wheeler, every one of those trucks is jobs and prosperity for our region, and so the next time you're driving there and you see a hundred trucks going down 225, that's our economic prosperity moving around our region and, candidly, around the country. It's good stuff. Chris: It's a good point. Yeah, I mean it's. You wouldn't want the roads to be empty and no trucks moving. I mean that's not a good sign. So feel blessed that we have all that you know in our area and driving all kinds of different prospects and opportunities for people. So when you are working with, let's talk a little bit about these member organizations and all the different moving parts you know what are you doing? How do you, I guess, keep things organized and people kind of moving in the same direction? Just, I would think that in itself is a full-time job. Brian: Yeah, it's a lot, but you know it's good stuff. I guess I'll start with a phrase that I kind of live by, which is we have a lot of stuff going on and so we'll find something to get on about. Right, we can always find something to work together on, and so, if you kind of start with that attitude, there's a lot of common issues that really require a lot of work but you can get maybe not perfect alignment, but general directional alignment. And so you know, one of the big issues we're working with right now is insurance. Right, we're all dealing with it. I'm sure you've gotten your insurance bill, but whether it's home or your business insurance, all those things, and so you can find a lot of commonality and ideas about hey, how can we work with our state leaders, potentially our federal leaders, with the insurance companies themselves, to try to manage the cost of doing that and find ways could it be grouping, doing kind of what they do in medical where you can have these larger groups or other mechanisms to try and help mitigate some of the costs? For that I'm getting a little granular, but you can find these little pockets where you can go move the ball down the field and get general alignment and so we spend a lot of time doing that. But we are very fortunate that our membership and generally this is kind of a Texan spirit type thing is hey, how do we go get some stuff done? Right, we want to go work on some stuff we want to go work on together. Generally it's a rising tide mentality and I spent a good portion of my career in industry and there are times where we compete like crazy and that's fun and, you know, makes great products and great opportunities for our customers. There are a lot of times where we need the tide to rise and finding alignment about that we try to be an outlet for that and keep things running. Right Is that we have not a big staff but a staff that can help make sure that. You know, our members are doing a lot of this stuff as volunteers, right, but they're bringing ideas to the table. So how can we make sure that they're staying engaged, that we're checking in on them, that we're helping carry these things and that we're creating a forum to have the right discussions and bring leaders together so we can invite in elected officials over relevant stuff, the right industry players, and bring them to the table and figure out what we can do, and then I guess the last thing I'll say is that manifests itself. We have a very active state legislative agenda. That we're going to be spending a fair amount of time in Austin, federal priorities. That we work with our congressional delegation and then very on the ground working with our municipalities and all the companies that are out down here to make movement. Probably talk all day about little one-offs. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show at boyermillercom. And thanks for listening to the show. Chris: Well it is. You know legislature is in session, so I know that creates a busy time for you. You talked a lot about some of the opportunities and I hope we can talk some more about that, but I do want to ask you at this point what are some of the headwinds that you see you know this region and specifically kind of where you are. You know that could be out there. That you see you know this region and specifically kind of where you are. You know that could be out there that you've got to try to deal with, to get ahead of or navigate through. Brian: I'll start with. It's a great time down here. Just the way that each one of those big five industry clusters is going about is that it's a. You know they're all doing well and have a lot of opportunity that's on the horizon or that they're in the midst of right now, but certainly you know, a few headwinds. One of the things that we're always worried about and we work actively is just natural disaster flood mitigation and storm surge and making sure that we're resilient and prepared for the future, and so the risk from some incident happening. I'm more excited to talk about, when it comes to that, all the things that we're doing to mitigate that. In terms of flood mitigation, the coastal barrier protection work that we've been spending a lot of time on. That's the Ike Dike. It has a lot of names, but most commonly known is that but a system to protect us from storm surge. So one is the risk of natural disaster I don't like it, but it's a real thing, right? The second is that we're in the you know how do we have responsible development? And so when you have a project that comes online, there are, you know, reasonable concerns from citizens saying, hey, is this the best thing to be doing with this piece of land, and so anytime you're talking about a development that's going to take a field and turn it into a thing, people get concerned about that and that's perfectly reasonable for them to be concerned and want to do that. And so part of what I spend time doing is addressing like, hey, here's why this is worthwhile, here's why this funds your local municipality and build more parks so we can have the resources and the tax base that justify expenditures that come elsewhere and make through that. But just the ability for the public's ability to impact development, as it happens, is important. But for them to do that knowing all the ground truth, knowing what the trades are and understanding that, so that if they are concerned about something that they come with that from an educated knowledge base and so that's out there. And then I certainly don't want to get political, but anytime there's an administration change, there's just priorities that get changed. And so we're still waiting to understand all of those. We're kind of watching how things are shaken out in Washington DC and we'll adapt and make sure that we're doing everything we can to put our region in a great posture with whatever those priorities are at the end of the day. Chris: So yeah, to that last point where you're kind of right in throws that change. Right now that's happening pretty fast, so you got to stay on your toes. Let me take you back to the Ike Dike, because that you know something to get after Harvey. Hurricane Harvey got talked about a lot. You don't hear much about it anymore. Any kind of updates for the listeners. That might be curious. Is it really going to happen and, if so, what's really going on down there to make sure it doesn't happen? Brian: And if so, what's really going on down there to make sure it doesn't happen? Yeah, so it's still moving along, you know, and with some enthusiasm. So a couple of big milestones. One is that in December of 22, it became a formal project of the US Army Corps of Engineers. It was authorized by Congress as a project, so that says, you know, they can now go focus on that. And so the next big question becomes how do we pay for it? To answer that, the state stepped up in a big way in the last legislative session and they had previously formed what's called the Gulf Coast Protection District. That is the local entity for that project. That will work with the US Army Corps of Engineers. So that group exists and has monthly meetings. They actually have an office in our suite. We lease an office to them them and they have their meeting in our conference room two out of every three months and then they do a rotation on that. Third, and they've been funded to the tune of about a half a billion dollars from the state of Texas. So they're ready to take significant action. We've been working with our federal partners about identifying where the big dollars come from for that project. It's going to be expensive and it's going to take a long time, but it will be likely done in phases and so that allows it. Where you don't need this one giant tranche of money all at once, you can do it sort of in a series and address the most important aspects of that, like the gates, some of the initial most highly populated areas, in phases. But we got to get federal appropriations for it. So in addition to the state entity being in our office, actually the US Army Corps of Engineers is on the fourth floor of this building and so all of the players for that project are in one building in our area right here, so that when what I'm hopeful for is if Corps moved in about six months ago, anytime an elected leader wants to come down and meet, they'll get every leader for that project in the same building and often meeting in our conference room or one of the core conference rooms. But a lot more can get done. There's sort of the opportunity for water cooler conversations between the state and the fed folks, and so I'm optimistic that the cadence just from that proximity will be helpful to that effort. Chris: Very good, that's good to hear. Let's change conversation a little bit. So, as I said, you're the president of BHEP. You mentioned your staff. Let's talk a little about leadership. How would you describe your leadership style and how do you think that's evolved kind of as you've been in this role? Brian: Yeah, well, I don't know that I can quantify terribly well, but I'm a kind of hey, all hands on deck and let's all just lean into wherever we're going. Right, and I kind of have that expectation of our team that we're have a clear set of priorities generally around the growth of this region and the projects that we're undertaking and that we're just leaning into them all the time and focusing. That I've been. You know I love getting down and into projects and so that's as I've been on this journey. That's been one of the big focus points to me is that you know you need a team to get this amount of stuff done and the size of these projects and the scope and so the ability to trust in the team and lean on them and let them go run with the ball is really important. I've been extremely fortunate that we have a great staff and we have a great membership base that we can lean on to help go bring those things to fruition. But it's a lot of fun coming to work. I think the team has a great time and enjoy the work that we do and you can see the difference that we make because there are buildings. We can point to that, wouldn't, you know, if not for the work of us and the leaders in this community wouldn't be there, and I'm looking forward to seeing that one on Saturn Lane with giant Texas A&M buildings sticking out of it coming through. Chris: It sounds like it's going to be impressive with the rockyards and all. But, you know, it made me think, though your team has a lot on its plate, I would think at times it may feel overwhelming. So, you know, what do you do to kind of help keep the motivation and keep the energy level up for a team that probably, at some points is, you know, starting to get to the end of the rope or run out of gas? Brian: Yeah, diversity of projects and lots of different stuff to work on. I'm guessing and actually I'd kind of turn that question on you, chris, because I can only imagine the type of stress that you guys live under, especially working big cases and big projects. There's one part that is, hey, we're just all in this together, right, and the esprit de corps that comes with. We're tackling big projects and that's just part of what comes with it. But there's another part where you just need to shift gears for a little bit and work on something different and give yourself a little recharge time. But how do you guys deal with it? I'm curious how? Chris: Boyer Miller, yeah that's a fair question to turn around on me. I would say it's similar. I think it's. You know to me that you can't underestimate the power of a team and if you have the right people on the team, there's some self-motivation just within that group, Right. And then I think it is the. We are fortunate to have very diverse type projects. We practice in all industries. So we may be doing a, a deal or a project, but it's in a different industry and there's different nuances that make it exciting. And at the end of the day I think it's the one point you highlighted on you can point to something and we're helping clients achieve their goals. So we can, you know, point to a deal that's been done or, you know, maybe it's a merger of two companies, or one that's grown and now has a new building and doing whatever. But you can point to those successes that you, where you've helped the client achieve, you know something really big for them and their business and their life. And so I think all of that continues the motivation. Yes, sometimes at the end of a big deal, you need just a little bit of a breather, but you just jump right back in and get going. So it makes it fun. Brian: Well, if you'll let me share. So you and I first met in person, had an opportunity to meet at one of your big forums, and that was a bunch of your customers and clients were there, and I love meeting new folks, as you probably saw, and I you know, walking around just saying, hey, I'm Brian, what do you do? And almost every one of them I would ask like, hey. So how do you know Chris, how do you know this group? You know, have you worked with them? And they all had a story. That was exactly that. You know, whatever thing it was that you helped them. We did XYZ project and it was awesome. We use them all the time for all these things. It was just very striking how passionate your customers, your clients, are with the help they've gotten from you guys, and so, anyway, that is extremely commendable and what I've seen from your team has just been amazing. Chris: Well, I appreciate the feedback. It's always good to get that, especially from different sources. So you know, like I think, we're always trying to create raving fans so that they'll keep coming back and tell their friends. So you get a unique seat and I think it's similar. You kind of analogize back to us. I think we get a unique seat to work with Texas entrepreneurs, and that's a pretty cool thing to do, in my view. What's, what would you or how would you describe the Texas entrepreneurial spirit if you could, based on your experience? Brian: Yeah well, I'm a native Texan. I have this hypothesis that part of the reason we're such a proud bunch is that when you go through I don't know if you grew up in Texas, chris but then also this sense of like we can do big things and big audacious things and we can make big asks and ask big questions and go get it done. And so we see a lot of that down here. And so you know, if you were sitting in I'll make this up Iowa and you said you know I want to have a space business and we want to go put hardware on the moon, and you know your neighbors would look at you and kind of scratch their head and in Texas they'd go oh yeah, that's intuitive machines and they're down the street, you should go. You know, go talk to them. They'd love to work with you. So that kind of spirit is really something special. When I was in industry I traveled all over the country working projects. There's something very special about this region, this community, this state, and that translates into why people want to come here. You know we keep Texas and Houston keep winning all these awards for business, new businesses coming here, people moving here, and that's not by accident, it's not by coincidence. It's because we have a great, great story to tell, whether that's workforce and the capabilities, the affordability of being here, the caliber of people you can work with and who your competitors are, and the level of intensity in the game that we play here is high and that creates the right ingredients for a really thriving community, for entrepreneurs, but also for industry any size. Chris: Right, very good. So what advice would you give to entrepreneurs out there that might be looking to start a business, let's say specifically, kind of within your region? If not, maybe beyond that in Houston? What's? Some of the advice you might give them if they wanted to get involved in some of the all the things you've been talking about. Brian: Yeah, dive in. It's a great community and a great ecosystem and there's a reason people are investing here and making a great run at it. We try to make that as easy as it can be. Now it is not easy. There's no illusions that starting a company you know scaling and growing a company all those things are very challenging. So the question I find myself asking I don't know that I'm in a position to give you know this immense amount of wisdom about these things, but what can we as a community and we as an organization be doing to help that entrepreneur? How do we help them build a relationship so that if they're having trouble with a permit, they know who to go ask, who to go talk to If they have a big idea, who might be good partners If they want to bounce something off, a retired executive who they might go talk to about that has the right skillset, so that we can create the conditions for them to be successful? And so that's really how we find ourselves interfacing that ecosystem is how do we put the right players together to go make things happen? Chris: Very good. So the other thing I'm curious to know is what do you see? You mentioned your five big industries. What have you observed of those industries working together to create innovative ideas to help each other? You got to move forward. Brian: Yeah, there's been a lot of. So workforce has been one of the biggest, especially over the last few years, where there's been this really high intensity competition amongst folks. And I wouldn't be surprised if you have been in some of that with, you know, recruiting and retaining high talent attorneys, right Is that? That's been, and so we've spent a lot of time and I've observed a lot of our members in this community go with that as a spirit of, hey, we're not really doing anybody any good If we're just poaching each other's people and you know, and creating pain points and friction between senior executives and those kinds of things. Let's go look at other communities and go figure out hey, what are the best universities and how do we get the professors that are training the students in it to send resumes to our area, right, and that we have a coalition of companies, not just one company has a relationship with one professor and that company benefits from that it's. How do we build that relationship as a community and say to them hey, we have a very strong demand signal, let's work together on things like that and so feeding that workforce pipeline so we're not divvying up the pie, we're growing it. And so, on the workforce side. I hate to be cliche because everybody's talking about AI, but we've had a couple of membership meetings about it. We've been working with partners about integration of it. We've adopted different technologies that have come out of it. But that stuff really, I mean it's the wave that we're living in right now, and so the integration of that into systems, both the how to do it and the mitigation of risk. I think I saw over the weekend that the new DeepSeek had a big not terribly surprised, but had a giant data leak and compromise, and so when you know when you're using that, I can only imagine, chris, I'd be curious how y'all are integrating it. But you know everything you put in there. You got to assume that at some point, somebody you don't want to have access will at least have the opportunity to have access to it, and so you have to be quite careful about how you integrate it. I, just as an aside, how are you guys using it much? Have you all banished it? What's the? Chris: Well, I'd say it's a little bit of both. I mean, we are definitely looking at and finding ways to integrate it. We've adopted a policy, but it starts with, as you mentioned, with us. It starts and stops with maintaining client confidentiality. So there's some systems out there through recognized kind of legal researchers. So Westlaw comes to mind, where they developed AI tool that is solely within their database. So it's secure, it's, it's all legal. You don't have to worry about we were still spot. You still have to check things right the human element of that. But if you're searching, for example, using the AI tool within Westlaw, you don't have to worry about the fake cases you've seen in the news. But our attorneys, you know, if you're going to use it, it has to be approved through the firm which are only a handful. You can't use anything outside and everything has to be double checked by a person to make sure for accuracy, etc. But so it is. I mean, the confidentiality side is a real concern, not just for law firms, for everybody, any company using it, and unfortunately that's just gonna be more and more what we see right. The more that we're moving everything to cloud, you're going to have people coming after it to try to. You know, on the bad side of that and certain countries it's not illegal to be a hacker. So it's just, you know, that's the world we live in now. Yeah Well, you know, brian, this has been a very interesting conversation and the you know, the last time we spoke I came away with the same feeling, and that is, we talked a lot about a lot of opportunity going on in the three to six o'clock region of greater Houston and we didn't even scratch the surface, I'm sure. But my takeaways have been it doesn't matter what industry again, I said earlier, you always kind of automatically think of space and NASA, but it's every type of business you could think of. An industry you could think of Sounds like you've got ample opportunity for businesses and entrepreneurs to start, grow, expand and be there and thrive. Brian: Well, perfectly said, and I think we get a recording. I may use that in some of our promotional material. Chris, that's exactly right. Great time, great place to be and welcome folks to reach out to us to help however we can if they're interested in looking at opportunities down here for that Before I lose you. Chris, one of the favorite questions that you had sent over that I wanted to ask you that you didn't get a chance to ask is what your favorite recreation vacation spot in the state of Texas is. Chris: Well, I'll answer that. I was about to ask you that. I would say if it's kind of a vacation spot in Texas, it would probably be anywhere along the Texas coast to relax a little bit and get some fishing in. Brian: Perfect. Chris: How about you? Brian: We are huge campers, like we love going camping. My kids are eight and 11 and we have state parks pass, and so any day I'm in a state park is a good day for me. But Inks Lake is one of my favorites and McKinney Falls between the two of those. Those are my top two right now, but we've probably been to Keene and we're just checking off the box to hit them all, and maybe we'll upgrade to National Parks as we get a little bit older. But I love our visiting our state park system. They're just absolutely wonderful. Chris: That's great. Okay, last question You're native Texan, so do you prefer Tex-Mex or barbecue? Brian: Oh, I feel like that question is going to get me in trouble, but if you made me choose, I'd pick barbecue. I'll eat it all day, every day, as it shows how about you, how about you? Chris: I think it's a tough one, so I've had some guests. You know, it depends on the day. I probably lean Tex-Mex more than barbecue. But I love the restaurants now that are combining the two, so brisket tacos or brisket nachos or something like that. It's a great combination. Brian: Yeah, there should be an answer all of the above there. Chris: So we're getting close to the rodeo time in Houston, so I have to go with barbecue for now and then back to Tex-Mex, I guess. Brian: Well, I look forward to seeing you at the kickoff event, where we get to go sample a little everything. Deal, that sounds good. Well, I look forward to seeing you at the kickoff event, where we get to go sample a little everything. Chris: Deal. That sounds good. Brian, thanks again for taking the time. Really appreciate your friendship and definitely appreciate what you and your team are doing for all the things business down in the Bay Area. Brian: Well, right back at you, Chris. Thanks for your leadership and all the great work you're doing with your team. Appreciate the opportunity to visit with you today. Thank you. Special Guest: Brian Freedman.

Manager Minute-brought to you by the VR Technical Assistance Center for Quality Management
VRTAC-QM Manager Minute – Fiscal Team Insights-Reflections on Fiscal Challenges and Opportunities in VR

Manager Minute-brought to you by the VR Technical Assistance Center for Quality Management

Play Episode Listen Later Jan 2, 2025 29:41


Join host Carol Pankow in this thought-provoking episode of Manager Minute as she sits down with VR fiscal powerhouses Katie Marchesano, Chris Merritt, Allison Flanagan, and Sarah Clardy. Together, they unpack the pressing fiscal issues shaping the vocational rehabilitation (VR) landscape, including: ·  Navigating fiscal forecasting challenges · Addressing technology gaps · Strengthening collaboration between program and fiscal teams The conversation highlights the vital role of policies, training, and institutional knowledge in sustaining VR programs while anticipating future shifts, such as technological advancements, fiscal constraints, and potential WIOA reauthorization. Don't miss this episode, packed with actionable insights and expert reflections to keep VR programs thriving!   Listen Here   Full Transcript:   {Music} Katie: I'm really excited for that tool to be shared, and I think it's going to be a really helpful tool for the agencies.   Carol: This job takes constant attention to detail in what is happening. It is always going to be work.   Chris: More people are going to be reaching out asking for fiscal forecasting and understanding how to look at this program in the future.   Allison: One of the things that pops in my mind that might happen over the next three years is reauthorization of WIOA.   Sarah: I think we're going to see some new resources, hopefully in the technology world develop, that will assist our agencies so that their focus can remain on the customers where it belongs.   Intro Voice: Manager Minute brought to you by the VRTAC for Quality Management, Conversations powered by VR, one manager at a time, one minute at a time. Here is your host Carol Pankow.   Carol: Well, welcome to the manager minute. Joining me in the studio today are my colleagues Katie Marchesano, Chris Merritt, Allison Flanagan and Sarah Clardy. So this might be a little bit of calamity for our listeners, but we're going to do it. So how y'all doing today?   Sarah: Great   Chris: Great.   Allison: Good.   Katie: Wonderful.   Carol: Awesome to hear it. Well, we have had quite a journey on the QM for the past four years. The fiscal focus was a new aspect of the grant, and we are so grateful to then Commissioner Mark Schultz for realizing that TA in this area was an essential element to the work. And since we're in this final year of the grant, we wanted to have a chance to visit together, share our insights with the listeners into the whole fiscal picture across the VR program, and discuss our perceptions and perspectives. So buckle up, folks, and we're going to dig in. So I want to start with how you each found your way to VR. And I'm going to start with Chris to talk about your journey into VR.   Chris: Well thanks, Carol. Mine's a little bit different than most people. I did not start in VR. I have a very different background. All fiscal for the most part. But I came to work at a fiscal state unit and learned about VR there. Loved it, loved it, loved it. And then was kind of asked to be part of this Ta team and couldn't say no because it's just an incredible program and it's a little complicated. So being able to help the states understand it better is what brought me to this team.   Carol: Well, not you, and you're being modest now. Tell them about like a little bit more of your background because you have an interesting educational background and all of that.   Chris: Yeah, I do. So I'm an environmental engineer by trade. Worked in that field for a while. Learned that sampling sludge was not a cool thing to be doing. So went to work for a small business that was just starting on Department of Defense World. Loved all the fiscal part of that. Went back to school and got my MBA and have been doing fiscal stuff ever since. So yeah, it's a long road that brought me here, but I'm happy I took it.   Carol: Yeah, we're glad you're here. How about you, Miss Allison?   Allison: Well, it's kind of hard to believe that I have over 30 years in this VR journey, and it actually started out in the field as a VR technician, and I just fell in love with the mission and purpose of VR. So I quickly changed my direction to be a VR counselor, and then that evolved to other promotions and positions throughout the year, where I ended up being director of both Kentucky Blind Agency and then moved to Florida as the General Agency Director. And when the VR TKM opportunity came about, I was ready for a change, especially after being a director through the pandemic and through the implementation of WIOA. I was looking forward to just a new opportunity, new learning areas, so this has been a great jump for me. I've enjoyed it very much.   Carol: Why don't you tell them too about your other gig with NRLI a little bit. We'll make a plug there.   Allison: Yeah. So part of the VRTAC-QM is the National Rehabilitation Leadership Institute through San Diego State University. I have the honor of continuing Fred McFarland's legacy, who began this program about 25 years ago. And it is a program that is building the future leaders in the vocational rehabilitation field. And it's been a joy to see these leaders be promoted throughout their careers. Being stepping up, having an interest at that national level, the issues that are facing VR. So it is definitely a part of my job with QM that I hold near and dear to my heart.   Carol: Yeah, it's good stuff, I love it NRLI of our favorite things to participate in when we get to do training. So Katie, over to you next.   Katie: Well, my journey with VR started when my brother was receiving VR services, and he actually is who inspired me to go and get my bachelor's degree in psychology and work in social services. That led me to Department of Workforce Services, where I spent 13 years in various roles and capacities, which ultimately led me back to VR.   Carol: Awesome sauce. And last but not least, Sarah Clardy.   Sarah: So I started out about 24 years ago out of college. I was working in banking full time and going to school full time, and had an opportunity to come on with a state and Missouri vocational rehabilitation, had an opening for an assistant director of accounting and procurement. They had some systems and processes that were a little out of whack and needed some help with reorganizing pretty much the whole accounting structure. So I came over at that time and started in with Missouri, and then spent 20 years there and got to spend half of that time in the field directly with our field staff and counselors and really take this program to heart, and then had an opportunity four years ago to join the VRTAC-QM. I had said for a long time we needed technical assistance in the fiscal realm for years and years. I was thrilled that Mark Schultz saw the vision and made it happen.   Carol: Good stuff. Well, now we're going to enter the danger zone because I have some questions for you all. Not exactly sure how this is going to go, but we are going to do our best. So y'all jump in when you want. So what has been your biggest realization or aha moment since you started with the QM. And Allison, I'm going to have you kick us off and then other folks can jump in.   Allison: Honestly, Carol, there's been a lot of those aha moments for me over the last, you know, almost three years with the Technical Assistance Center since my experience in VR started in the field and I was a counselor, kind of the program side is where my comfort level is or my knowledge and experience. So when I joined the fiscal team there, definitely there was a lot of those aha moments, mainly a lot of the things that I did not know or did not realize even as a director when I came over. So one of those aha's is the director. Even though I received these beautiful monthly budget reports for my fiscal staff, even though I had a leadership team that we reviewed budgets with, understanding the fiscal requirements in and out, the uniform grant guidance and all the regulations. And, EDGAR, all of that, I think, is critical for any director or their leadership team to have knowledge of. And that was definitely one of my aha moments. And one of those things I go back, wow, if I could go back and be a director, I would be a lot smarter after being on the technical assistance side. And like I said, there's been a lot of those aha moments. I could share tons of them, but a couple other ones that jump out is just that critical need for that program side of the House and the fiscal side of the House, to always be communicating and always making sure they're checking with each other. On whether it's a new implementation, whether it's expenses, contracts, doesn't matter. There needs to be that collaboration happening at that level. And then probably the technology challenges is another one of those constant aha moments in the year that we're in and how reliant we are on technology. I am still amazed that there is not technology out there that will do what VR needs it to do, right off the shelf.   Carol: Amen, sister. You said it all. No, but I'm sure there's people that want to say some more.   Chris: I found it interesting when I came over that not every single, not a single state has it right. I thought that there would be more that are fully knowledgeable and are running with it and doing all the great things they are doing, the great things. They just don't have 100% right.   Carol: You are making me laugh with this because I'm just going to say I have to jump in on that. Sarah and I right away, in the beginning, anytime we had met with RSA we learned something new, we're like, uh, I gotta call back to Minnesota, tell them, because we realized, like, hey, we thought we were sort of doing it right, but we all realized things. We went, uh, yeah, we had a little slight misstep on that.   Katie: I would agree with that. Like, we came from a state that was in an intensive agreement. And, you know, I was like, man, we really got it wrong. But then, you know, it's a huge learning curve and there's a lot of people that are putting in their best effort, and they're still just a few things that aren't quite right.   Chris: Absolutely.   Katie: Another realization that I had was we have this table of contents for a grant management manual that we send out to agencies. And when I received it in Wyoming, I was intimidated by all the things that needed to be included. But my aha moment was when you break that down into individual items and you really look at it, it's things that are already in place, the policies and procedures that you're already working on. It's just finding a way to get that on paper and put it into some sort of policy and procedure and internal control. So realizing that states have the capacity to do that, just figuring out how was an aha moment for me.   Sarah: You know, when I came in, I was thinking back to 2017 and RSA came out with guidance on, I'm going to say it, Period of Performance. And it dominated our whole agency for a good nine months, trying to understand the guidance, looking at systems. We had to do a whole overhaul with the way we looked at obligations, just we spent a massive amount of time and effort to right size our systems, internal controls and all of that because prior to performance sets the beat for all of financial within a VR program. So coming into the QM, I really assumed that more agencies knew of Period of Performance and had gone through at least similar steps, or at least had internal conversations. And what I found was completely the opposite. Somehow a lot of folks missed the memo and that work hadn't been done. And of course, we've been running Fred Flintstone style, trying to help agencies get up to snuff. So that's the piece. I think that's been the most interesting. I think for me.   Carol: I think along that same vein for me was really that realization states are more different than I thought because I figured we all had the same information. We all kind of operated sort of the same. You might have your own internal systems, but I remember, Sarah, you and I talking that first year just going like, oh my gosh, everybody is organized so completely differently. They approach their work so completely differently. There isn't just one size fits all. Like, hey, you should do it this way. And like, everybody can do that. Uh uh, it is like having an IPE for how the fiscal is managed. Individualized we need to give very individualized TA. So what do you guys view as the number one challenge facing our programs nationwide? And Sarah, I'm going to have you start us with that.   Sarah: Okay? I'm going to say it I think Allison said it earlier. We are lacking in the technology space. I think a couple of things we have, the pendulum has swung to the other direction and before it was spend, spend, spend, a lot of agencies made adjustments so that they were increasing their spending. The large carryover balances weren't so large. Now my concern is how are we looking at our finances to see if we can still sustain that. And in order to get accurate projections and for leadership teams to have the conversations about where they stand financially, we have to have technology systems in place that are reliable, are tracking period of performance, can provide those fiscal calculations in terms of where we stand on all of the different requirements, so that we have a constant pulse on where do we stand as an agency. And I liken it to being in private industry and a CEO knowing at all times how much does it cost to make the widget? How many widgets are we making and what amount of time? All of those kinds of things. And I feel like in that space right now, we have agencies that are trying to figure that out, and we have some that are in a very delicate position, and it can cause a lot of catastrophe and crisis if that's not solidified. So really, it goes back to having reliable technology that will take care of all of that. And that includes our CMS, our Case Management Systems space. A lot of our vendors are struggling in that Period of Performance area, and we're not there yet. We have a lot more work to do.   Carol: Well, it's like a $4 billion industry, you know, and I feel like we're still using an abacus or something in some cases for tracking the money. It is the most insane thing I have ever seen.   Allison: And, you know, related to that technology challenge, though, is knowing that, that challenge is there, knowing that the technology is not correct. I think what adds to the complexity of that is the fiscal staff or the just the staff within the VR agency. They lack the fiscal knowledge enough to know if their system is working correctly or not, or know how to go in and make the adaptations needed to assist them. And that's a challenge within itself.   Chris: And I will piggyback right on that, because the thing I think that we've struggled with is we have lost so much institutional knowledge that people don't stay in jobs like they used to. And so if these policies and procedures are not written down, you get new people coming in, they don't know what they don't know. And if the technology is not working right, they don't know that that's not something that they can handle. So it's a lack of that long time knowledge that used to be in this program.   Katie: Yeah, Chris, that is exactly where I was going as well, is the loss of staff and institutional knowledge is huge, and it really highlights the importance of getting policies and procedures in place and not waiting till that person has their foot out the door and is ready to head out to make sure that you're getting that in writing. You know, succession planning and really building up success in the team.   Carol: I think for me, one of the things I see, because I love that whole organizational structure and non-delegable responsibilities, I love that area. I think one of the biggest challenges facing the program is the whole shift in how things are organized between if you're in a designated state unit within a designated state agency, and that centralization we have seen of all the fiscal functions along with IT and HR and all of it, but I feel like VR has lost control. And so as these services are centralized, and not that they can't be, but that they get centralized to a point that the VR program has lost complete input control direction. I mean, you've got directors being told you can't spend anything over $5. It has to go through 40 layers. You can't hire anybody. Staff cannot travel to go see customers like all of that. If we can't fix this structure of how things are put into play in each of these states, I really see kind of the demise of the program. As we see things get buried, the program gets buried down within these big agencies. The lack of control ends up leading to problems with them and being able to carry out the mission. And it's really hard to get a handle on that. And I know Congress has given, you know, this leeway so that states can organize like they want. But boy, the way they're organized right now, it's pretty tough.   Allison: It's a double edged sword when you think about it, because you're probably like me Carol, as former directors, we wanted more money going into the consumer services. We wanted it going to support our customers. We wanted to find ways to reduce any kind of administrative type expenses so that that money can go there when the centralized functions were really being pushed at the state levels. In my mind at first, I will say this, at first I saw, yes, this is a benefit because we're going to have these shared services, we're going to be able to spend more of our funds on our customers. And I still somewhat agree with that approach because it is a cost savings. But what has to happen, though, is that balance, what you talked about, the balance where VR still has control over the decisions or they are included in those decisions and the restrictions that have been put in place has to be lifted. But I do see the benefits of those shared services as long as the structure gets set up right.   Carol: Right. And that's been few and far between.   Allison: That needs a national model.   Carol: It does. And that's been a problem. I mean, if there's anything anyone can work on, little congressional assistance in that or whatever, you know, getting some of that rewritten, how that looks.   Sarah: Well, and I came from an agency that was able to retain an entire unit of 13-ish folks when all of those consolidations were occurring because within our Department of Education, our commissioner understood the complexities of our award and knew that if all of those positions rolled up to a department level, they weren't going to be able to support the program and were able to coordinate with our state leadership. And it served the program very, very well. So I think we have a little bit to be desired still in that space to get agencies the support that they need 100%.   Carol: So what has been your favorite thing to work on or accomplishment in your role? And Katie, I'm going to kick that to you to start us off.   Katie: Well, I've really enjoyed my role here with the QM. There's a lot of things that I enjoy, but the task that I've enjoyed the most is really having the ability to dig into the new uniform grant guidance that went into effect October 1st of 2020. For one of the things that I did while doing that was I took the old uniform grant guidance and the new ones and did a side by side where all of the things that were taken out were redlined and all of the things that were added were highlighted, and I'm really excited for that tool to be shared with the agencies right now. That's with RSA to get the stamp of approval, but I've used that tool already to help update all of our things on the website and all the tools that we're sharing with everyone, and I think it's going to be a really helpful tool for the agencies.   Carol: I love that tool, Katie, so much because even when we were down doing to last week and some of the just the nuance pieces that came out, when you're reading it and you go, okay, that language did change. Like there is a slightly nuanced variance to this that I hadn't completely grasped until you see it in the red and the yellow, and it all highlighted up. I mean, it was pretty nice.   Katie: Yeah, they did a lot of plain language changes, which is really evident when you look at the side by side.   Chris: I'll jump in here and tell you what my favorite thing is. And it's when we were working with a state intensively and, you know, we've been working with them for a long time, and you get to know them really well and you understand their environment and how things work, and they come to you and say something really profound, like, I was watching this training the other day and they got this wrong, and they got this wrong and they got this wrong. It is like a proud parent moment. When you go, they understand what the program is supposed to be doing, and they understand when other people not necessarily are getting it wrong, but mostly they're able to recognize what's not absolutely correct. And it just makes you feel like, oh, we have come so far.   Carol: It's like fly, little bird, you're flying.   Chris: Yes.   Allison: That's probably one of my favorite parts too, Chris, is the state work that we've done and how you get to know these state people. There's so many amazing VR staff across the country, and their hearts are all in the right place, and they want to do good. That's what I've enjoyed is getting to know these people better, broadening my network as well because I learn from them. But just being that resource I do like, I'm one of those weird people that likes digging into the laws and regs and finding where is that gray, vague area that we can interpret a little better. So part of the TA work, you know, really digging into some of the laws and some regulatory guidance I've enjoyed as well.   Carol: I have a story I love to share. I was having a breakdown probably a year ago, Sarah's laughing at me, I had a breakdown. You know, you're providing TA to state you're so ingrained with them, especially when they have a corrective action plan, you feel like you're part of them. I always say we, you know, when we're talking because I feel like I'm part of their team and we've been working on a particular piece of it, and nothing that we sent in was anything RSA wanted. All I knew was that this was not what they wanted, but we couldn't exactly figure out what they wanted. And it was driving me crazy. And I'd called Sarah and I said, I think I have to quit being a TA provider because I suck at this. I'm not able to help them. I haven't been able to figure this out. I am done, and I went to bed that night. I actually was on site with another state and I woke up at two in the morning and I do my best thinking as I'm sleeping. It's so weird. I've done it my whole career. I wake up in the middle of the night and have an idea. I woke up at two in the morning. I'm like, oh, I know what they're talking about. And I got up and I typed, I typed for like three hours and then got up for the day and got ready for the other state. But exactly what was needed was that, I mean, when we ended up meeting with the state and then they met with RSA, and that was the thing. It was the thing that was needed to get accomplished. And I felt super proud that we could kind of like, figure it out. It took a while. I almost quit, but, we got there in the end.   Sarah: You know, being in the final year of the grant, everybody's asking the question, what comes next? And of course we don't know what comes next. But I think my favorite part is looking back and building the relationships. So kind of touching on what all of you all have said. Relationships are important to me. Building the trust we are learning alongside of them just like they are. I always say there's no top of the mountain that any of us are ever going to reach when we've arrived. It's a daily learning process, but the program financially is so complex and trying to take those federal requirements And each of the state's requirements, which we've acknowledged already are all different, and bring that together in the center. And there's never been a resource to help agencies get down in the weeds, look at their systems, look at their processes, and help them navigate through that. And so just having something to offer and having directors send an SOS text at 9:00 at night, or we've talked to directors who have been in tears or excited because something really great has happened, and they want to share the success. It's all of that. Just being able to provide that valuable resource and support them along the way has been very rewarding for me. I know, and you all, but especially I think for the States.   Carol: So if you had a crystal ball, what would you predict regarding the financial state of the VR program over the next three years? And Chris, you get to start us on that lovely prediction.   Chris: Okay. Well, since I don't have a crystal ball, I think Sarah touched on this a little bit earlier. So for several years, the message from RSA and from Congress has been to spend, spend, spend. And so there's been a lot of changes in all the agencies to be able to spend more, to spend quicker, to do everything quicker and faster. And I think the spending is catching up. And I think that it might go too far. Like Sarah mentioned, the pendulum is going the other way, and I don't think the fiscal forecasting is robust enough to be able to predict when it's going to get hard. And since most directors do not come from a fiscal background, most directors come with the VR heart that you know is what a counselor has, paying attention to that. Fiscal forecasting is going to be a critical, critical point. And I know that most states are not doing it right. So that's my prediction. More people are going to be reaching out asking for fiscal forecasting and understanding how to look at this program in the future.   Sarah: And I think to tack on to that, I think we're going to see new technology and new resources emerge that will assist our agencies. Again, like Carol said earlier, some days it feels like we have our big chief tablet out and we're still doing things old school. And I think the only direction to go is up. So I think we're going to see some new resources, hopefully in the technology world develop, that will assist our agencies so that their focus can remain on the customers where it belongs.   Allison: And I would have to say ditto to both of that, especially the fiscal forecasting and the pendulum swinging the other way. And a lot of states considering order selection or going into order selection. But one of the things that pops in my mind that might happen over the next three years is reauthorization of WIOA. I know the discussions are happening with Congress right now, and if that implementation happens, you know, what's it going to look like? Because ten years ago when WIOA was passed, it was a huge impact on VR. And it still is. I mean, we're still challenged with trying to get everything implemented, trying to spend the minimum of our 15% on Pre-ETS. There's just so many things that we're still working on through. So very interested to see where that's going to go.   Carol: And I definitely think like nothing ever stays the same. So we always think like we're going to get to the place and it's just going to be even flow, like it's all going to be cool. We don't really have to pay a lot of attention, and I don't think that's ever going to be the state of the VR program. Like it's going to constantly need people paying attention. Whether the pendulum is one way and we have loads of money or it's the other way and we have no money now, like we have to somehow try to like even this out with the fiscal forecasting and all the things you're doing. But if you think you're going to get to the place where like, oh, I've reached it, Nirvana, it's all great. That's never going to be like this job takes constant attention to detail and what is happening. And so it is always going to be work. It's going to take a lot of effort from a lot of people. And as all the new people keep coming and going, figuring that out for the team so that you can sustain the practices and things that you have that help you to understand what's going on.   Katie: Yeah, I would just agree with everything that everyone already said. One of the big pushes that was brought up at CSAVR, is technology, and I think it is going to be interesting to see what kind of technology is introduced in the next three years that's going to help assist our programs.   Carol: So what is your best piece of advice for our listeners? And I'll let anybody open that one up.   Allison: I'm going to say you need to have a deep bench of leaders who are adverse in the financial requirements, maybe incorporating fiscal training for all staff on an annual basis, whether that's just refreshers or making sure new folks being hired understand all the requirements. But fiscal needs to be part of your ongoing training with staff. It's just critical.   Carol: I'd say, for directors coming in, I know the tendency is to want to be like, I have to know everything. I'm the director, I need to know all things. And even when you don't know the things, you pretend, you know the things. Don't pretend you know the things you don't know. Like you need to be humble and figure it out and learn and be willing to learn. For a lot of folks that are growing up in the VR system, having that sort of physical part of your brain, it may not be completely there. You're like, I went into VR because I didn't want to do math, and now you're in charge of, you know, $300 million in a program. And so you've got to just continue to learn and chip away and figure out how you can gain that really strong understanding, because you cannot just hand that off to some other group and think someone's managing that for you, because the buck really does stop with you in the end. As far as the responsibility over the control and allocation of the VR funds. So please keep learning, as Allison said, and be open and be humble when you don't know things and ask.   Sarah: There's a song by the Beatles called With a Little Help from My Friends. Everybody needs a Little help from time to time. And I know over the years we've worked with most of the agencies, but there are some that we haven't, and I've always assumed they're good. They don't need us. They're fine. It's not always necessarily the case. So acknowledging if I pick up a phone and call a peer or a fellow director, or hopefully the TAC continued to exist beyond this grant cycle. Reaching out and asking for help is okay, and it's encouraged.   Katie: Yeah, mine will be through the lens of policy and procedure. That's where I keep hitting. That's my passion on this QM team. We have a ton of resources available, and if you're struggling, you're looking at that table of contents saying, I can't do this. Reach out, give us a call. We can help you with prompting questions just to get the thought process going. And you can do it. It's going to be okay.   Chris: Ok, my piece of advice is to make connections. And I think everybody has kind of said that in their own way. But make those connections so that you have people you can reach out to and ask questions of whether it's us at the TA center, other states, other fiscal people. You need to be able to ask, how do you do this? What do you think of this idea that I have? How would you handle this? I mean, being able to have that connection and that type of conversation is critical 100%.   Carol: Well, I sure appreciate you all. And while we're still around, all our listeners can still connect with us. And we do have a QM fiscal email address. I will spell out for you. It is QM f I s c a l at v r t a c-qm.org. So qmfiscal@vrtac-qm.org. So please do reach out. We still are around for a little while and we can be your phone a friend. So thanks for joining me today guys I really appreciate it.   Chris: Thank you Carol. This was great.   Allison: Thanks for having Us.   Sarah: Thank you.   Katie: Thanks.   {Music} Outro Voice: Conversations powered by VR, one manager at a time, one minute at a time, brought to you by the VR TAC for Quality Management. Catch all of our podcast episodes by subscribing on Apple Podcasts, Google Podcasts or wherever you listen to podcasts. Thanks for listening!

Building Texas Business
Ep084: From Insight to Innovation with Summer Craig

Building Texas Business

Play Episode Listen Later Dec 4, 2024 39:40


n this episode of the Building Texas Business Podcast, we dive into the entrepreneurial journey of Summer Craig, founder of Craig Group, a strategic consulting firm. Summer shares how a vacation epiphany led her to start a business while caring for a newborn. Her firm now partners with private equity-backed companies, helping middle-market businesses transition from startups to structured entities ready for expansion. We explore the early challenges of entrepreneurship, including securing initial revenue from clients like Gulf States Toyota. Summer discusses how the COVID-19 pandemic unexpectedly fueled growth in the middle market and healthcare sectors. She emphasizes the importance of building high-quality teams through strategic hiring, focusing on complementary skills and an ownership mentality. Craig Group stands out with its hands-on approach and a patent-pending software platform for sales and marketing forecasting. Summer highlights the significance of creating a flexible work environment that prioritizes excellence and authentic client relationships. Her innovative approach to consulting demonstrates how companies can adapt and thrive in challenging business landscapes. The conversation reveals the delicate balance of cost-saving strategies and necessary investments. Summer shares insights into maintaining a remote work culture built on trust and continuous improvement. We learn about the power of problem-solving, client feedback, and the determination required to transform business challenges into opportunities. SHOW HIGHLIGHTS Summer Craig, founder of Craig Group, shares her entrepreneurial journey that started with an epiphany during a vacation while caring for her newborn. Craig Group focuses on strategic consulting for private equity-backed middle-market companies, helping them transition from successful startups to structured entities. The early days of the business involved securing foundational clients like Gulf States Toyota, with initial revenues critical for startup success. Summer discusses the positive impact of the COVID-19 pandemic on business growth, particularly in the middle market and healthcare sectors. Strategic hiring decisions and fostering a company culture of complementary skills and flexible work environments are highlighted as key to building high-quality teams. Craig Group differentiates itself with a hands-on, results-driven approach and a patent-pending software platform that enhances sales and marketing forecasting. Building trust with elite clients through effective communication and personal interactions is emphasized as crucial for maintaining successful business relationships. The episode underscores the importance of collecting client feedback to ensure service excellence and continuous improvement. Summer uses her passion for mountain climbing as a metaphor for her entrepreneurial journey, highlighting the determination and vision required to navigate business challenges. The conversation concludes with reflections on the importance of strategic growth consulting and the ongoing journey of team building and client success. LINKSShow Notes Previous Episodes About BoyarMiller About Craig Group GUESTS Summer CraigAbout Summer TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Summer Craig, founder and CEO of Craig Group. Summer's passion for excellence has helped fuel her company's growth, and she and her team's authentic approach to delivering for clients has formed relationships built on trust. Summer, I want to welcome you to Building Texas Business. Thanks for taking the time to come on the podcast. Summer: Thanks for having me. I'm glad to be here. Chris: So I know there's a lot for us to talk about. I want to start with giving you the opportunity to tell the audience who your company is and what are you known for. Summer: Yeah, absolutely. First of all, I love your podcast. I love what you're doing, telling people's stories, so I'm glad to be here. Chris: Thank you. Summer: Yeah, my story is a unique one, very interesting. It actually started with an actual epiphany that I had. I had a true, you know, entrepreneurial lightning strike moment. That that moment was sitting in Frisco, colorado, on vacation, while rocking my three month old third child, which is never the time that you should start a company. But I but that was my I had an epiphany, and the epiphany really was this that I was always going to work very hard, I was going to outwork the people around me, I was going to outwork my peers and I was in a fantastic role, fantastic job. But I had the epiphany that if I was going to always work that hard, no matter what, I could create more value for myself and for the economy by starting my own firm. And I knew that I needed to start my own firm because of that that, if I'm going to always do this, why not build something instead of working for someone else and creating value for somebody else? So that was the epiphany, and it was a true anxiety ridden, sweat inducing moment when I knew that I was going to start a company, you know, despite having a newborn third child. But fast forward. And you know, we're five and a half years later, and you know, we have a firm of 32 people and it turns out the Epiphany was the right way to go for me, that's a really unique story. Chris: And I'm sure your husband thought it was part of brain fog, but you proved him wrong. Summer: Yeah, actually he's been nothing. I think he said okay, sure, you know a little bit, maybe a little more, thinking like oh, we'll see what, we'll see what actually happens here. Chris: Okay, so. So it sounds like the inspiration for you was I want to do this for myself and build something that's mine. Tell us what it is that you've built. Summer: Yeah, absolutely. So what we've built is we built a strategic consulting firm. So we consult with sponsor-backed typically private equity-backed portfolio companies. We really focus on the middle market, lower middle market. What we do with those companies is we come in at different phases in the hold period even pre, even in LOI and we support top line organic growth. So we've built a system of tools and a system of really smart people and a platform that creates a formulaic way to streamline processes, streamline people, streamline technology for growth in these companies. The solution is really right size for companies that have been really successful but haven't really worked on their operations and growth. So they're selling whatever they're selling widgets, whatever it is but have they truly really looked and said is there anybody else I could sell to? Could I be doing something better? Could I be faster, could I do this more cheaply? They haven't really had to do that, but when the PE sponsors come in, you definitely do have to do that and what we're finding is that in a lot of in-house and PE there is a trend of hiring operating partners, which is a newer trend. So some have expertise on top line growth, but for the most part, that expertise is not in-house. So the PE firms need to go outside of their doors to get support to help these firms grow. Chris: So it sounds like you take a company that's almost been successful, despite themselves. That's right and help them systemize that that's right, so that they can maybe leverage it for more success. Summer: Well, yeah, and I mean I hope some of my clients are listening, but many are in Texas and I'll say it's so impressive, a lot of industrial manufacturing it unbelievably successful, either family businesses or entrepreneur-led businesses. But you're right, they haven't really had to. I'm using, you know, using air quotes here, but try that hard because they've had a great product right they've had a great story. the entrepreneur, the founder, had a really great connected network right, so that gets you to a certain amount of growth. But then when you have, you know, pe dollars coming in who are betting on you, there's a growth mandate and the growth mandate that that activity to grow is not the same as what it takes to start a business, so growth is harder and it takes more structure, and that's exactly right. We come in and say, man, this is awesome, how can we take what's awesome, do more of what's awesome, and let's try to reduce some of the risk that you have in the business, probably because nothing's repeatable, nothing's written down, maybe there's no technology supporting system, so we help them build that structure. Chris: And it helps them go to scale. Summer: That's exactly right. Chris: So let me take you back to the beginning, right after the epiphany. What were some of the first things you remember doing to kind of start the business? And, as you said, you build this thing of your own. What were some of those basic building blocks and things you did? Summer: Yeah, Well, for me personally, it was. The first thing was, you know, pray, look for guidance and then talk to people. So I spoke to a lot of people in my network just saying, hey, I've got this crazy idea, I want to build a firm. And the initial idea, while still very similar to what we do, was really around looking at sales and marketing and being able to tie the two together and prove ROI. So that's the crux of what we do right is show your work, show that this works. And I have a long career of traditional marketing. Marketing and marketing has always struggled to tie themselves to results. And that was really, you know, the core idea, you know, back when I originally founded it. But at the time I was working for Gulf States Toyota best people in the world and I'll never work for another company again. That was the, I think I topped out working for them and being, you know, affiliated with the Friedkin family. They are just salt of the earth. So I was very lucky. At the time when I had my epiphany, I said, well, wouldn't this be great if I built my business plan and I started my company but I already had a client? Wouldn't that just make me feel better? Chris: For those of you listening, it's the ideal thing to do. Summer: It really is the ideal and I think, as an entrepreneur especially somebody that I wanted to do something, but it does mitigate some risk when you first file that paperwork and you know you've got some revenue coming in. So I was lucky enough to have Gulf States Toyota before I actually quit my job, they had agreed to hire my firm, which at the time was me, and we had a great relationship and we ended up entering into a contract where I was consulting with them and I was able to do that the day I officially opened, you know, opened Craig Group and opened my doors, and I think that gave me just a little bit of peace, knowing that there was revenue coming in while I was building all the structure that you have to do, which, honestly, is quite painful. Chris: Right, it's very painful. It's always more work than you even can think. Right, absolutely. Summer: And if you've not done it before, which? Who has? That's something, that's a skill set that you know. I mean, I guess you know lawyers do it all the time. You probably do it all the time, right, setting up entities. But if you I just had this, I you know, probably should have advised, got more advice, but I definitely was able to say, oh well, I can do this, I can. And what state do you incorporate and why, and what do you do, and who do you bring in, and is it all those questions? As an entrepreneur, you have to just do it. Chris: We advise on those issues all the time. I was in a conversation yesterday with someone on the same issues and always tell people look, because as the entrepreneur, the other thing you're doing at the very beginning is trying to save every penny you can, and people will maybe try to do it themselves on the legal side, and I try to counsel people. It's an investment in your business, not an expense, and but try, you have to keep it manageable you're exactly right, exactly right. Summer: And luckily I was at that juncture. It was a small enough entity where I was able to get by with it. I don't cannot today with. I have, you know, a wonderful legal team, but that time, you know, just as an entrepreneur, it's really a pain, it's overwhelming, just to figure out how do I, how do I get you know, a wonderful legal team. But that time, you know, just as an entrepreneur, it's really a pain, it's overwhelming, just to figure out how do I, how do I get you know, get started. But again, I was lucky that I had a client and so I had revenue coming in. It really enabled me to get a lot of things done because you didn't have to worry so much about that. And I remember thinking my first goal was, oh, you know, back half of the year, six months, if I could just, you know, make my salary back right, thinking like, oh, I'll just replace my income. Well, that I quickly got client two, client three, and that I blew past that goal. It was amazing. It was a little bit of a you know it, who you know. I really talked to people and got advice and those ended up being some of my clients eventually, when people that I was asking for advice. So that was great. But it was such a funny little goal, which was okay, because if I can do that, then it's like, okay, I've done something that hasn't been a detriment to my family. I'm adding to the family kitty. Well, we realized like, oh wait, now I can. There's more here. Chris: So I was just thinking as you were answering that question. You said it's been just over five years. Summer: So, given the calendar, that means you started in 2019 and then the world went upside down. Chris: So let's talk about, I mean, every business that starts out. It's going to face some headwinds and obviously this was a pretty big one. But just walk us through some of the challenges you faced and how you managed through that, given that you just had this new business. Summer: Absolutely Well, of course, like you know we. Business. Absolutely Well, of course, like you know we. I was just looking at right before COVID so COVID was in March and February I was just looking at expanding and getting some more office space because I'm hiring people. I was looking at leases. So that was hilarious, right, because the minute COVID hit, you know you don't sign the you don't sign the lease, which was great that we hadn't signed it yet, so that was just a fortuitous that was a God thing, but I will say there's a few good things that came out of COVID. In general, COVID was very good for Craig Group and here's why it was good for Craig Group. I think that middle market businesses that I was working with and we also work with healthcare companies as well, especially healthcare technology, B2B and B2C healthcare I think that what COVID brought to us was that people always did, but then they had to go and find your business online Right, and probably on their phone Right. So if you were not ready with a digital presence and for sales and marketing, so if somebody could not seamlessly buy something from you online or if they couldn't research your product online, you were toast in COVID. Chris: Very true yeah. Summer: And even B2B industrial manufacturing businesses that never cared a day in their life about their website. All of a sudden they need their spec sheets to be posted online because they can't drive over and drop them off in person right? They're not going to trade shows, right? So website, but not just the website, really the content, the interaction. And then how good is your email response? How good is your team on the phone? How good are they at working those leads that just got spotlighted? And on the healthcare side, as you can imagine, about COVID, people are scared to death. At that time, telehealth was nascent. Chris: Right. Summer: Pretty terrible still, kind of, and they realized we have to invest here. Patients don't know how to get in touch with us. Everybody's scared. People aren't coming into the doctor's office or the hospital because everyone's afraid that they're going to get COVID. So the messaging opportunity for what we do, which is growth, really about growth. We no longer had to convince our clients you need to take action, because before pre-COVID, and even either at the same time of COVID, there was also this shift with the markets too. Around PE also said oh wait, this has been like really good times and I actually need to start building organic growth instead of just buying another company and doing roll-ups. So this happened very right after COVID. So those two things we did not. We stopped having to tell people. People would ask us why are you doing growth support? We don't need that, right, and nobody says that now, right, no, there's no argument. So COVID, plus what was happening in kind of the deal-making PE market, which we can, that's another. That was another big change for us, but it just helped people say, oh my gosh, we need help. We need help right now. And that was a huge. It was a huge growth time for us. So we grew significantly in 2020 and 2021. Chris: Stars aligned, it sounds like. Summer: Stars aligned and again, it was just one of those who would have. There would have been no way to know. Chris: Forecast, foresee or plan no way. Summer: The only way that I was able to do is I said we were able to kind of make hay, which was okay. We have a door here, so how can I be really good about scaling in a smart way? So I didn't hire tons of people, I hired slowly. I never wanted to have layoff right, so I was able to say I have an opportunity, let's scale slowly. Due to that growth, we're also bootstrapped. So we were able to fund our whole company out of revenue which, especially at that time, I wasn't going to go fundraise. It was just so we were just. We're really lucky that we were able to build something, grow, but grow in a. We weren't growing too fast that we were getting out over our skis. We were able to service our clients, grow, you know, as needed. Then it ended up being a good time for us to kind of get our feet under us about who we are as a firm. Chris: It's a great segue when you talk about the growth you were seeing from the client revenue side forced you to start building your team. Yes, so let's talk about how you went about. One setting the strategy of not growing too fast, because you can fail when you do that, but really focusing on making sure you're making the right hires and adding to your team in the right way. Summer: Yeah Well, I'll say I don't always make the right hires and I've made so many mistakes. If you said that, we'd know you're lying, yeah if there was a thing that I think I could always do better at, it was being even better at hiring. I mean, to me it's the hardest thing that I think we do as business leaders, as CEOs and entrepreneurs. So that is something that I think you just get better at, but you still fail. So that's hard. I have no secret. I have a few things I've learned on that side, but I will say, on the growth side too. Before that, as a person, I'm just a fiscally conservative person in general, so I think some entrepreneurs can get especially more kind of visionary and I think I for sure hold the vision, but I'm very conservative. But that helped us. I think I've had to almost pull myself off of that, so I almost can be too conservative, right. So that's something that I've had to learn about myself, which is I need a counterweight to say you know, do this. But at that time it worked. It was a good way to scale. So I am conservative there, but I did realize in terms of people, if I was really going to grow and we have this value prop about growing with sponsored backed businesses. I myself while I am married to somebody that works in PE and I know a lot about PE. I never myself worked inside the doors of PE and I really had to have that in my firm in order to just have that credibility, you know, just to. Okay got it right and so I did decide very early on. We're growing, we're having a lot of success. I knew that I had to have somebody else at a partnership level that was going to be able to move us to the next level, and it had to be somebody that did not have my skills. Chris: Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom, and thanks for listening to the show. Summer: So I needed somebody that was very, you know, has a different background than me, had a different skill set than me, and so that was, you know, really a game-changing hire. So we brought on at that time Libby Covington. And again, she comes out of private equity, she was in-house at Cap street but also worked at law firms and then had also operated in-house with the Doggett family, so we had a lot in common in that sense. But I knew what she brought and what I brought were going to be complimentary to the market and that was ended up being true. You know that that was. But it was hard right, deciding to bring in, you know, somebody. It's really hard. Chris: You make it sound really easy. Summer: It's not. Chris: Because a lot of people entrepreneurs, maybe just humans in general we tend, you know people that we're like, so you tend to hire people like you Absolutely. Instead of doing. What you should be doing is what you did. And how do you hire someone that fills you out right the other side of the skill sets that you don't have to make the strong team. So you know, kudos to you for seeing that, and I know of Libby from her days at Cap Street. So so then you bring Libby on and there's 30 other people you've hired in a few years. Summer: That's right, that's right. Well, I have, you know, tricia Eaton. She started with me. She was actually my first employee, trisha Eaton, she started with me, she was actually my first employee. She now is in an operations role for me. She's been with me since day one. You can do anything. She's the person that can do anything. You just give her a problem and she just goes and solves it. So she has just been my right-hand woman and I couldn't do this without her. So we had her, we had Libby and then, quickly, we had to hire some subject matter experts. So me and Libby cannot keep delivering all the work. Patricia can't deliver all the work. So we really had to go and fill out the teams and I focused on hiring high-margin employees. So where could I bill and where could I charge for their expertise? Sure, right. And then if there was employees where we didn't really use them that much or it was really low margin, we would usually go with consultants. So I had a bench of 1099s. And we still do. We've less. So now we still do. And again, that was another way where we scaled more slowly. So it didn't, you know, have to get ahead of ourselves on building. When was it the right to have the full-time versus the part-time. That was also a benefit of COVID. So I think COVID and I'm seeing this today too it really, I think, enabled people to work the way that was better for them, like there was a new definition of work. Chris: For sure. Yeah, and it's being talked about every day. Summer: Of course, and especially in your industry too, in law firms with a very kind of traditional track, and I think there's people that say I want to work and do really good work, but I can't work in this way, and whether it was in the office or not, but even if it was maybe I want to do great work, but I need to do it 30 hours a week because I'm taking care of my aging mother or I want this lifestyle. I will make less money, but I need to work this much time from this location. So we leaned in hard on that Huge value prop for us. So I think that was one of my successes of being able to hire really great talent, because I was able to align with the times, because it was what it was but also to truly say I want your best work. I don't care if you need to live in Miami, right, I don't care. If you're telling me I really have to work 30 hours a week because I have personal responsibilities, I'm like great, give me your best 30 hours a week. To me that's better than any you know 40 plus hours a week person. That isn't maybe the best. Chris: Sure. Summer: Right. So I, we scaled that, we scaled through that way, we also would. We have a and we still do this today. We bring people on and we do a 60 day trial, and so and it's written, it's papered up and it says if this isn't a fit fit, we're going to separate fast. Chris: Yeah, there's a lot of value in that and it does help the saying of hire slow, fire fast, absolutely. So you get a test run at it. Summer: That's right, and sometimes you can't hire slow. Sometimes I wish I could. I've got I don't know four roles we're hiring right now and I need them to be filled yesterday. Chris: Right. Summer: But at least we've learned that we do have to have a trial period and we have to be eyes wide open about it. You know we're and I. Just part of our culture and it's part of our values is we do excellent work. So excellence is part of our culture. But also, if you can't meet that excellence, you will be let go, like we fire people, and it's not a scary thing, it's just. You know we're, we just have no tolerance. You know, and what we talked about we something we say in houses we don't have. Just you know we're, we just have no tolerance. You know, and what we talked about we something we say in house is we don't have middle managers. You know we don't have that. You're, you're, everyone's in the spotlight. It's that ownership mentality that's right and everybody's like that, so everyone's in the spotlight. There's no middle, you know. So you years, I mean there's been lots of not home runs you know, it's been you know there's hills and valleys there with hiring. Chris: Well, that's good for people to hear. Right, You're not always going to get it right. There's ups and downs, just like in life. But if you're, if you have a mission, like like Craig group does and like our firm does, then you know what your why is. And if something veers off from that, then you stay true to the why and then make those hard decisions. Summer: Yeah, and it always is. It's always hard. It's the hardest thing we do. Chris: No doubt. I want to talk a little bit about innovation, because clearly what your company's doing is innovative and for PE firms. But just in your space, how do you go about fostering innovation amongst your team and encouraging it within the company? Summer: Yeah, I mean, I think that it is who we are. Honestly, it has to do with every single person that we hire. Again, even going back to that, we don't have any middle managers mindset, which is there's no medium, there's no mediocrity, we're always how could you have done better? How could we have done something faster? Wait, what tools did we not use this time? So those questions are asked. Every engagement we have, I'll say we're doing something pretty different. We do have a few competitors out there not very many, but we do something unique. I mean, we are consultants, we do consult, but we're certainly not a consulting firm typically. You know, we're not an Accenture right, because? Why? Because our people actually get in and then they actually do the work, Not that we don't do at Accenture, but that's our model, it is what we do. So we're boots on the ground, so we actually do the work. So we're not an agency, but we do some agency work right. So and then on the technology side, we have a software platform. It's patent pending. It's all about forecasting and how do we get better at forecasting sales and marketing? And if we can forecast better, we can then make action and take action more quickly. And so those are the three things we do. And again, we have some competitors, but what we do as a company inherently is pretty innovative, Like we're doing something a little different, Like the skill set is a little different. We move faster, you know. We have a different, you know. So we are doing something different. I think everybody at the firm knows that and they're aware of it, it's just ingrained in your culture, it's just who they are. Chris: They know it, and I've been to your website so I'll tell you it absolutely comes across from your website, which I know is part of the thought that went into design of the website. Right, you show up different Yep, so it seems like that's part of when you're hiring these people you're looking for someone that can fit that. Summer: That's exactly right that DNA that innovative mindset. It's right and something that Libby and I talk about all the time and again, I fail on it. Sometimes I succeed, but we hire and we've really landed on this for Craig Group is we have to hire for people that just figure it out? They just get it done. It's like I don't really care what they're, you know exactly what they know or what they've done. It's like can you solve this problem? Just you know, almost like if you just did a business school case and put it in front of them and said solve it. Chris: Well, I'm curious because I've been reading a lot about this lately and we have some internal debate about it in our recruiting process. Summer: Do you do any kind of role play as part of your process to put them in the position or challenge them to see how they problem solve. You know, we don't do it formally and I think maybe we also thought about doing it formally like a formal case. We do it in an informal way, which is here's a situation that we're in Usually, it's a real, it's a real client situation and we say hey, what do you think about this? And let them, you know, talk it through. Right so we do it as part of our interview process, but we certainly don't have it formalized and I think maybe we should. Chris: I feel like there's a lot of value in it. I've heard people a lot smarter than me talk on it, and you know the question is and it is the question of does that scare a candidate away? And my answer that is well, if it does, and maybe we learned something early on we should have won't find out till a year later. Absolutely. I'm kind of at a mindset. It seems like a good idea. Summer: I think it's great. I would agree wholeheartedly. If somebody's scared of any kind of testing, then that's probably not a good. It's probably not a good choice. Chris: It was not going to be the person that says let me prove to you I can do this, I'll figure this out, right. So just interesting. You know people's mindsets on that so that always leads me, maybe, into the culture of Craig Group. How would you describe it and what are some of the things that you believe you're doing that help foster and allow it to grow? Summer: yeah, yeah, I'd say that our culture again, we you know excellence in our work is really the number one pillar. We have a thing on our on our mission also. This is no bs. What we mean by that is we show up authentically. We're real, we're real people, we're real humans. We have, you know, everybody that I work with either is caretaking for somebody else in their family, whether it be aging parents, children. They're passionate about volunteering and they're doing that. So we are whole humans and whole people and so I believe in like I don't want to if somebody shows up in an inauthentic way, it's like I'm fine, everything's fine, and I have no tolerance. So we have this real culture of authenticity, excellence, absolute excellence in client delivery. So everybody shows up with that. It's our culture, because we talk about it in hiring, we talk about it in our all-hands monthly meetings, we talk about it in the way we behave, which is we meet people where they are today. So it's okay in Craig group to be very authentically who you are. So that's just how I am, that's how I run the company, so, so we have an authentic culture. But what that also means is everyone at the company we're on, we're remote. We do have a lot of people in Houston, but we are remote. But that does require people to communicate with each other, which is are you okay, all right, picking up the phone and saying because you, if we're all going to have no bs and we're going to work hard, you have to know what your team how, what is your team okay? Chris: what's going on in their life? Summer: yeah, might impact their ability to deliver excellence 100, which is like tell me, do you need help? Chris: my follow-up question was going to be you sounded like a remote company. So, yeah, creating the, the connectivity of that culture, especially at that level that you're trying to achieve, has got to be challenging because you're not in person. Summer: It's so hard, it's so hard and again, I think it's. You know, we have a cameras on culture, you know, and everyone's cameras are on. I mean, I spend, we are all on. You know, video calls all day. Which pros and cons. Chris: Right. Summer: But I think that everyone's leaned into that. There know we can't be grumpy about that. We're not, you know, and everyone's also required to do really good work. But part from a training standpoint, and I think we're getting better at this, I think we can keep getting better. We're not perfect, but working asynchronously, which is what remote work is Right. Not everybody knows how to do that. Like you can't assume that everybody just knows how to work asynchronously. It's a skill set. Knowing when to do async work versus when do you need to have an in-person meeting, knowing when those workflows that is not something that I think you can just know. Chris: Sure. Summer: And so we definitely have an expectation that everyone works really efficiently asynchronously, and I love asynchronous work. Personally, I think it's way more efficient than getting in a big meeting full of people all at the same time and wasting everybody's time. But there is also this time to get everybody in the meeting and you know, sit together. But we are doing better at training people about asynchronous expectations. So we use you know, very technology heavy, very tool heavy. So we use a tool. There's a tool called Loom. It's a video tool. Basically, you can explain something really quickly on your own time and then send it to people so then they can go figure out what you're trying to explain to them. even if you couldn't meet in person. We use project management software. Basecamp is the one we use. Other people use Asana, so we use Basecamp, and all of our work is asynchronously matched. And so I think that culture though one thing that does it, we move really fast. So the culture is again with the excellence and you can move fast with async work. Sometimes it slows you down, sure, because you need to just pick up the phone Instead of you know, so you can. And that's a lot of times where I get into things Is, hey, let's stop doing this Call like call each other, you know somebody's not understanding, right, but our culture is really, we move really fast. Our clients have extremely, extremely high expectations. I mean our clients are you know? PE firms. They're, you know, there's no tolerance. Chris: And they're worried about the ROI and they want the growth yesterday. Yes. Summer: Yesterday and they, you know. So we work under that pressure with all of our clients high intensity, high growth. So we're high intensity, high. You know that we match our clients. We're yeah, that's what, that's who we are, and I think it works really well with a remote team. I think we've been able to hire people that want that, that high intensity work. If you don't want it, you can tell and it doesn't work with that. Chris: It shows up real quick, it shows up. Yeah, so you were talking about, you know, your base clients, the PE firms. Let's talk about what are some of the things you found to be successful for you and your company to kind of build and maintain those relationships so that you keep them and you get more. Summer: Yeah, absolutely so. I think it's challenging to, I think, sell anything which we're selling a service, right, but I think it's challenging to sell into. I don't want to put them all in the same basket. So not all PE or independent sponsors are sponsored, because they're not all created equal, right, so that's. I can say that but it is a tight group of people. It's a it's tight knit. It's a small group. I think it's an it's elite. Most people that have those roles are very well educated. They have great experience. I think you really have to be trustworthy, like they are not going to pull in a partner that has not been vetted. You know that, had that, that hasn't really been like. You know this is the real deal. So those relationships are really hard-earned. You know those are not easy to come by. I will say me and Libby both have our own sets of networks. That was enabled, sort of the catalyst. But the only reason why that's been able, we've had success, is because we've had to prove it. And when we prove it, you know, we then can build onto the next one and the next one. And I mean our model would be that we become a partner with the firm and that they bring us in on multiple portfolio companies and that's what happens, right. But it's hard. It's not something that you don't. You know we're not selling. You know something that's not high value, high stakes, and we really are a partner. We're not a, you know, a vendor and that takes a lot of trust. We have to spend a lot of time. Chris: Yeah, it's funny because I can totally relate. Our mindset here at the firm is the same. We want to be as we say this all the time the legal partner to our clients, an extension of the C-suite, not a vendor, not a commodity, but an actual value-added partner. Summer: Yes, that's exactly right. And it's hard to get there. You don't just say that and you know you're like oh, I want to be your growth partner. I want to be a member of your management team. It's like OK, prove it. Chris: Right. Summer: Right, and so I think that we do that. I think our team consistently delivers best in class results and best in class work. We're also right sized for the lower middle market and middle market, and I think that's what needs to happen. We can't you know it's not Bain, right? No, and they can't, they couldn't, they can't do it anyways Right, but we're also not, you know, your sister's brother that's going to help you with sales and marketing. That you know out of their garage. So I think we're right size and for our size, like for where we are in the market, I think we're an absolute best in class option and we've had to prove it and prove it and that's also why we have best in class talent, because we've proven it and proven it. But it's definitely been. You know it's a hard fought. It's hard fought. Chris: You know every single win is a hard you're only as good as the last one, that's right. Summer: I mean it's dig and ditches hard. You know, it's like we have to say. I mean we're making sure that every time we deliver the work product, the trust and then also the ability to immediately implement our plan, and that's one of we really stake our hats on that, like we don't just give you a here's some really great ideas that you can't implement, nor do you have the money to go hire the team to do it. So we really just hang our hat on, let's roll, let's go, and it's like ready to go, and so that's hard, it's hard work. You know this is tough and so that's exactly right We've got. You know we need that to be so good that the firm, the CEO of the port co and the firm are going to say man, that was really worth it. What would we do without that team? How would we, where would we be right now without that team? Chris: Where else can we use them? Summer: And that's what they. You know it's like we can't. We have to. You know, we have to keep. I think we can always get better. Chris: The results would suggest that. But to your point, the last word you just said right was if you don't have the mindset of continuing to, how can we improve? You're going to get left behind. Summer: That's right, and I think, a lot of my core team. You know one of my senior strategists, Macy Allen. I think every time she works on something, she comes up with another innovative idea about. You know what, if we would have done this or wait this tool, can we try out this tool? We're really leaned into that technology and AI in our work, but I think that what works so well is the answer is yes. Bring it in, let's try it, let's test it no-transcript and just your leadership style. Chris: How would you describe that and how do you think it's evolved since you started this five years ago? Summer: Yeah, well, I mean, I think it definitely has evolved, you know, I think that also going from having you know two people to this very large team. We're very flat organization so we don't have lots of hierarchy. So most people directly report to me probably too many, which is something we're working on. But I think I've got a very straightforward management style so there's really not a lot of dancing around things. There's not a lot of confusion. If I'm telling you something, it's probably going to be very clear. I also give feedback continuously. I believe in spot feedback so we don't wait and write it down and wait for the quarter end to go back and like report. I think that's just tiresome. So everyone is encouraged to give spot feedback both you know, positive and negative and do it in that moment. Sometimes I will do it in our project management tool and say spot feedback and just put it. And that way if it's written. Sometimes they can have some time to react. Chris: Right. Summer: As opposed to kind of. Chris: I like how you signpost it though. Yeah, I say spot feedback. Summer: Like prepare thyself. You are getting feedback. Yeah, and I put it and I just say it, and I think that I lead with kindness, always, always. I think that truth without kindness is cruelty and that's a direct quote from my husband, jason Craig, one of his themes and I think that being kind to people, even when you're frustrated and is, is the only way to be. So lead with kindness, but also tell the truth, which is this you know this went well, this didn't go well, you know, but it's not. It's not about you as a human. You know this isn't a. You know we're not making a personal judgment about you, but this work product, you know, wasn't what it needed to be or whatever it is. But I tend to give feedback. You know, again, it's rapid, it's in this, it's like I lead. You know, very, you know, crisply in the moment I've had to get even more efficient with that, with a lot of people you know, and I don't see all the things, and so I definitely try to speak to every a lot of people to get you know other people's opinions on work product. So I talked to a lot of people. I talked to clients ask for feedback and then go and manage my employees. That are what I heard from clients. So yeah, I think I'm a management style again. I think I get a lot of feedback, a lot information, but crisp, kind, but really Christmas and some compassion right, always, always. Chris: So that's something you mentioned. I don't think a lot of people think to do or they think to. They think about it but they're scared to do it, and that's get feedback from your clients. Summer: Yeah. Chris: Right, it's the most valuable feedback you can get because you're really trying to serve the clients. But if you're not delivering what they want in the way they want it, you're missing the mark. Right, you can work hard and you can believe it's excellent, but if they don't believe it's excellent, hard and you can believe it's excellent, but if they don't believe it's excellent. So anything you do this kind of systemize that, or is that just you know periodic check-ins with your clients, or I don't like that. Summer: You know people will disagree with me on that and there's a whole theory in marketing around, you know, net promoter scores, which is it's just a survey, essentially that we're just not big enough for that. Like I need to be able to call all my CEOs which I do and can, and I get feedback and write it down. I mean, you know, and I talked to all of my CEOs at least every other week and I asked them all every time, you know, and sometimes they would say I don't even know, go talk to the other team and I do which is great, because if the CEO doesn't know if if anything's good or bad, that's great. Chris: That means there's no problem excellent. Summer: But no, I do it continuously. I see that as really one of my roles in sort of steering the ship is talking and saying you know what's, you know and I want everything. I want silly stuff, little bitty, you know things. I got some of that last week. It was a really super small thing, but that you know it matters. That's right. You know I don't, you know I want all the things. So I just try to have a relationship that's very trustworthy. It's informal in the sense that we can talk. I want that kind of relationship. I don't need it to be something that's this big thing. Chris: You don't need an email saying click the button and fail the survey. Summer: I really hate it. I really do I mean again somebody's going to quote me on that in a few years when we do that and send the email but I just no thanks, We'll ask directly? Chris: I don't. I'm not in favor of them either, and I don't know that you get the most authentic feedback. Yeah, right now, at some point, if you're so big, maybe you don't have a choice. Summer: But yeah never lose the personal yeah, that's right, that's right. Chris: Summer, this has been such a fun conversation. I want to just end on a few lighter notes. Okay, what was your first job growing up? Summer: oh, lifeguard, life lifeguard. Out at pecan grove, country club, out in richmond texas, which might have been my most favorite job I've ever had. I still like love it taught because you had to wear. Chris: You got to wear a bathing suit. You were the most tan you ever did. I was the most tan. Summer: I also love to swim. I love teaching swim lessons and I was a swimmer, and it was just it was great very good. Native texan native texan born in odessa, texas. Yeah, native native Texan Lived in Oklahoma, lived in Illinois, but I'm back in Texas. Chris: Okay, so do you prefer Tex-Mex or barbecue? Summer: Tex-Mex, all right yeah. Chris: I usually ask people this question, but you have three young kids so I don't know. But if you could take a 30-day sabbatical, where'd you go and what'd you do? Summer: Yeah, my husband and I, even though we live in the flattest part of Texas I think that's under sea level we really love to mountain climb. So we're hikers and climbers. We try to take a pretty big trip every year or so if we can. We did a really big trip this summer. It would be a no-brainer. I mean we would go and climb a really big mountain. Aconcagua in South America has been on his list. I can't quite get it on mine because it's a 30-day trip and I can't. I've got a 11-year-old, a nine-year-old and a five-year-old and I can't quite do that. But if I could wave a magic wand and I could be gone for 30 days, I would go climb Aconcagua and spend time in South America. Chris: How cool. That's a good one. Well, thanks again for taking the time. Love your story. Congratulations on the success that you've already achieved and that I know that's in your future. Summer: Thanks, Chris, appreciate having me on. Special Guest: Summer Craig.

Building Texas Business
Ep083: Empowerment and Innovation in Childcare with Amyn Bandali

Building Texas Business

Play Episode Listen Later Nov 20, 2024 37:34


In this episode of the Building Texas Business Podcast, I speak with Amyn Bandali, CEO of Ivy Kids Systems. Amyn shares the story behind Ivy Kids, a premier childcare and education provider founded by his parents. He reflects on how their move to Pearland, Texas, and the challenges they faced finding quality childcare led to the establishment of their first school. Since then, the family business has grown to 20 locations, with 16 more under development. We discuss the decision to franchise the business, the importance of building a culture of empowerment within teams, and Amyn's philosophy on leadership. He explains how empowering employees with autonomy, transparency, and responsibility has been key to Ivy Kids' success. Amyn also talks about navigating challenges, including the impact of the pandemic, which required the business to pivot toward virtual programs and innovative approaches to childcare. The conversation highlights the critical role of early childhood education in shaping lifelong success, the importance of continuous innovation, and how technology like coding and robotics is being integrated into Ivy Kids' curriculum. Amyn also shares insights into managing a franchise system and the value of fostering strategic relationships and learning from setbacks. This episode is filled with practical lessons for entrepreneurs and leaders who aspire to create sustainable growth and a strong company culture. SHOW HIGHLIGHTS Amyn Bandali is the CEO of Ivy Kids Systems, a premier childcare brand founded by his parents in Pearland, Texas, offering education from infants to pre-K and afterschool programs. The company was inspired by the founders' personal experience of struggling to find high-quality childcare when they first moved to the United States from Canada. Amyn joined the business in 2015 and initiated the franchising strategy, growing from 5 corporate locations to 20 total locations with 16 more under development. The company emphasizes a culture of empowerment, focusing on giving employees autonomy, transparency, and timely feedback while understanding the "why" behind strategic initiatives. During the COVID-19 pandemic, Ivy Kids pivoted to online learning and alternative programs, generating a million dollars in revenue for franchisees despite significant enrollment drops. The company is innovating its curriculum by incorporating coding, robotics, digital parent assessments, and classroom camera access to enhance early childhood education. Amyn's leadership style prioritizes empowering team members, setting clear visions, and allowing individuals to develop their own key performance indicators (KPIs). The company values continuous learning, participating in franchise associations, mastermind groups, and local business networks to share best practices. Amyn learned a critical leadership lesson during the pandemic about truly empowering his team by trusting them during challenging times. The company's educational philosophy is grounded in research showing the critical importance of early childhood learning in a child's development. LINKSShow Notes Previous Episodes About BoyarMiller About Ivy Kids Systems GUESTS Amyn BandaliAbout Amyn TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: Amyn, I want to welcome you to Building Texas Business. Thanks for agreeing to come on the show. Amyn: Yeah, thank you for having me, Chris. Happy to be here. Chris: So you're the CEO of Ivy Kids Systems. Tell the listeners what Ivy Kids is. What do you do? What are you known for? Amyn: Yeah. So Ivy Kids, we are a premier childcare brand, not just a daycare where parents just come in to pick up and drop off. You know, we provide education and that's from the infant level, so as young as two months old, all the way to our pre-K program, which is five and six year olds. And then we also have an afterschool program as well, where parents pick up and drop off from elementary school. The kids come in for homework help. And we're next year celebrating our 20th anniversary. Chris: Congratulations. That is amazing. Amyn: Yes. So what was the inspiration to get into this primary childcare, education, afterschool learning? Where did that emanate from? Amyn: Yeah. So, you know, a little bit about our history. So Ivy Kids was actually founded by my parents, Allen and Layla. You know, we had moved from Canada to the States or to Houston in 1995, and we lived in Pearland. So, as you're probably aware with Pearland, it experienced massive growth during that time. You know, 518 had one stoplight. Now it's a six-lane highway, it feels like. But you know, my parents, you know, with my brother and I being young children, they found out very hard time finding high quality care for us. You know, we would be in the daycare system, mom and pop childcare, quote unquote, you know, prestigious childcare program, and it was, you know, observation, where there was no learning going on, or my brother and I would, you know, be picked up and we'd have a bump or a bruise, and nobody would be able to point out why. Amyn: My parents being engineers and also having a history of entrepreneurship from their parents and their grandparents, you know, they thought about this industry and they thought, hey, we can do a better job of running high quality schools. So I like to say they reversed engineered the childcare. You know, they put a lot of thought, time and thinking, and over that course of 10 years from when we moved to Pearland, to 2005, we opened our first school, and that was in the Pearland area, and it did really well. So from that, we grew from that one corporate location to then five corporate locations. And then when I joined the business in 2015, and I can talk about the reasons why, but that was when we decided to franchise our brand. And, you know, today we are at 20 locations. We actually just opened our 20th location about a month ago and we have 16 under development right now throughout Texas and the Southeast United States. Chris: And, just curious, I mean, the 20 that exists in the 16 under development, how many of those are franchise versus corporate owned? Amyn: Yeah. So we still own all of the corporate locations today. We are at five corporate locations and we are at 15 franchise locations. You know, I think one of the things that shows maybe a strong brand and, you know, happy franchisees is folks opening their second or third locations. And even though we opened our first school in 2017, you know, that's been one of the great things to see. As a franchisor, you know, seeing folks open their second or third location, looking for sites for that. And that's kind of where we are right now in the evolution of the business, which is really exciting to see. Chris: That sounds exciting. So you're going back to the beginning in listening to the story you were telling about your parents. Yeah. It sounds like a very common entrepreneurial inspirational moment where they see a gap and figure out a way to fill that gap or need, right? And in this case, you know, quality childcare. Amyn: Yeah, absolutely. You know, they saw a lot of great things about this business, which really stand today. And it's, you know, if you do right by that family, you do right by that child, you know, you're having that parent for 10 years from when they're infant to that afterschool program. You know, they saw that childcare is a need, not a want. You know, if you have a dual income family, you have to put your child somewhere where, you know, they'll feel safe where they're learning. And from that they saw a need in building their first Ivy Kids to, well, there's so much research out there about the importance of education at an early age that then, you know, catapults a child into future learning, future success, as opposed to not getting that in the early ages. Chris: And the kind of the downward trajectory of the backing cause. Amyn: Yeah. I mean, there's some amazing studies. There was one that was done about eight years ago by Harvard University that basically said 95 percent of who you are is from the first five years that you were born. You know, everything from what your passions are to your ability to learn. So much of that comes from those first five years. And then if you think about, hey, what is the best return on investment then for my education? It's not necessarily those prestigious universities that does have a high rate of return, but the best ROI actually that a family can spend, that a government could spend is that first five years and getting that part right. Chris: Right. You know, if you're doing that, then you are truly building that foundation. And I think that's one of the drivers for why, you know, why families make a decision. You know, they're looking for, they're seeing the benefits, they're understanding more and more of, you know, the link between high quality learning and how their child is going to do. And they're making a smarter decision now with where they're choosing to enroll their child. Chris: So let's go a little bit, so we understand your parents' inspiration. You alluded to this, but I don't understand what drew you into the business. What were you doing before and what was it that caused you to leave that to step in and kind of take over? Amyn: Yeah. So by the time we had opened our first school, I was in, you know, college or close to college and seeing the business up front, you know, seeing the ability to build your own path, create your own destiny, working in the business from everything, from us assembling the furniture when we were opening our first school, actually laying the grass and the sod down in order for us to get our CEO inspection passed, you know, I was just so enthralled by it. I was so excited about it. The ability of owning something and really charting your destiny. And that really didn't leave me. You know, in college, I also took a job. It was with Student Agencies, which is a business run by undergrads and I did sales there. And that also really excited me too. Amyn: And then, you know, I kind of went the route that a lot of students at Cornell did for undergraduate business, which was pursue finance, look at the business consulting route or the investment banking route. And, you know, I learned a lot going down that path, but I missed being in that small business, you know, really building something that was my own working with a dynamic team and a small team. And, you know, I think building some of that foundation, this amazing opportunity came that was presented by my dad to say, hey, let's franchise the business. You know, we've got something great going. This would be an amazing opportunity for other like-minded people to open their own locations and thrive. Amyn: And I just thought, man, this marries what I did earlier. I've got a bit of foundation for working at larger organizations. You know, maybe there's something there and it turned out to be a good decision. Chris: Very good. That's a great, I love the story and how you were able to, I think it's important. You got an education and you got real world experience outside of that, right? To then bring that into and maybe help professionalize a little bit the company, especially as it was launching into being a franchisor. Amyn: Yeah. So you mentioned, you know, working with the team, let's talk a little bit about, you know, some of the ups and downs that you've experienced and maybe you saw your parents early on experience and building the team around you so that the company can achieve that success. Because if I know anything about hiring, it's an imperfect thing, right? Is that part science, part art? But you do your best to get it right. So tell me, let's talk a little bit about those experiences, you know, what you've learned from that. Amyn: Yeah. I mean, I think, you know, going into small business entrepreneurship, there's very much a feeling of working in the business, you know, being so kind of head down and focusing on, hey, how do we survive today? And, you know, I think when you're joining or launching a new business, which really was the franchising part of our business was a brand new business, you are really thinking in that lens and that mindset. And I always feel like hiring, building an infrastructure, it just allows you to think more long term and that just prolongs the lifespan of your business too. So I think making those right strategic hires as soon as we have that capital, thinking ahead about, hey, where do we want to be in the next 5, 10 years and investing in those people and really giving them the freedom and empowerment, you know, to expand their careers, expand their responsibilities as you're seeing them master their role. Amyn: I think that really helped, you know. So one book that I read early on about a year or two after I joined the business was Traction by Gina Wickman. Sure. You know, the entrepreneurial operating system. I mean, that's something that we do today. And I think that was foundational in how I look at people, helping the assistant. Hey, do we have the right people in the right seats? And then are we creating a culture of empowerment? You know, I think about what attracted me to Ivy Kids and starting this franchising part of the business. And it was this idea of taking ownership, having accountability, you know, maybe having a little bit too much rope. Chris: Right. Right. Amyn: And I just think, hey, at a size that we are, those are probably the people that I'm going to be attracting to. And how can I create that where if I were in their shoes, I'd want to be a part of this business. And I think some of that where, hey, there's alignment on goals, but hey, you have the empowerment and you have the ability to achieve it and how you achieve it and how you get to that final product is up to you. You know, I always feel like that allows you to really grow people, especially when you're smaller, maybe you have that limited capital base, you know, and now you can start thinking strategically about your business and then your business can really grow. Chris: So I love that term culture of empowerment. Let's talk about culture. You know, everyone agrees culture is king, right? And every book you read and each strategy, you know, all those clichés. What have you done to kind of foster and build this culture of empowerment within Ivy Kids? Amyn: You know, I think of myself as a generalist. And I think of myself as, hey, I am not the best person in any department. And I think as you grow as a leader, that is just what naturally happens. You know, you have to build a team of people that are smarter, more experienced. I would say better than you in each of these divisions in each of these areas. Amyn: So I think just thinking, hey, if I'm growing or if the business is growing, I have to increase the skill sets of everything around me and I have to play more of that generalist mindset. And with that, it's let me bring these people on and have and let them be the experts in the subject matter experts of what they're doing now. Amyn: Alignment and vision and where we are and ensuring that, hey, prove to me that you can do this job is still very important. Sure. You know, We still need to have check-ins and make sure that, hey, are we all marching in that direction and where we want to go as a company. But at the end of the day, I do think that people are more passionate if they feel a sense of ownership, if they can look back and see, "Oh, I or my team accomplished this." I'm getting praise for those kinds of things. You know, one of the things that we do, we have quarterly town halls and we do shout outs, and it's a thing that I love. We just had ours on Friday. And, you know, the team gives each other shout outs, but I think when people are empowered and we are able to showcase, you did a great job and this is why, and this is what your team is doing, is getting the company moving forward, is amazing. And that might be harder to create that visibility as a company grows. But it is something that I like to keep on the forefront of my mind because empowering people, it's just like this flywheel of positivity, right? Chris: Right. Amyn: It just, it's like the snowball or flywheel effect. It just grows upon itself. You know, the shout outs that you mentioned, I don't think it can be overstated, the value in just simple recognition. Private recognition is great, but the public recognition amongst someone's peers, I mean, it doesn't replace cash rewards, but some people value it as much or more, right? And I think that you would take the time to do that in a thoughtful way, and I can see where that would inspire your people to do more, right? Or, well, gosh, your coworker got it. I'm going to do something so that the next quarter I get it. And it just, to your point, that flywheel effect, it just creates this atmosphere and culture of wanting to achieve and be successful. ADVERT Hello friends. This is Chris Hanslick, your Building Texas Business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations, and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the BoyerMiller.com and thanks for listening to the show. Amyn: The other thing I heard you say is there's a key piece of autonomy to create the culture of empowerment within Ivy Kids and giving your people the autonomy to go do what they do, what they've been hired to do without being micromanaged. Chris: Yeah, that's exactly right. Amyn: I mean, I always think back to when I first started out, you know, in my career, you know, as an investment banking analyst, you know, you're spending 80, a hundred hours a week, you're working on these pitch decks. You're grinding until 2 a.m. You're working on this project and now all of a sudden you have this package, you deliver it to your managing director and then they go to a meeting and you never hear back. You come up from the dungeon, right? Chris: Exactly. Amyn: And I always was like, hey, you know what, I wonder what that client thought or if that what I did had an effect. And you know, that's that part where I'm like, well, am I doing that as a leader? And am I these blockages? You know, because people want to learn and people want to be in those meetings. I think everybody wants to be in that meeting and see where their work is leading to. And I just always think, hey, if I were working for me when I was starting off, would I have liked myself as a boss? Chris: Right. Amyn: And that also means, hey, clear vision of where that person is heading. What am I doing right? And what am I not doing well? You know, I think feedback transparency, you know, I really try and instill that criticism is not a negative word, you know, problems are not bad. You know, problems are just identifications of what we can all do better. Chris: Right. Amyn: I like hearing problems to not, you know, and that could be a, you know, what we're doing and just what's going on within the organization. You know, what the way I would phrase what I just heard you say is about, it's about mindset, right? You can view someone's performance from a positive mindset or a negative mindset and say, look, okay, this didn't go well, but that's a learning moment. Let's find the learning as opposed to chastise and criticize and beat someone down. Chris: Yeah, right. And I think, you know, same situations handled, you know, one versus the other can encourage and empower someone to want to do better or discourage them to, you know, put their tail between their legs and maybe leave, even leave your organization when it's not someone you necessarily want to leave. Amyn: Yeah, and this is a thing that comes over time. It comes with empowerment. It comes with, you know, celebrating that publicly. It comes with a culture of positivity. You know, it is also something that I feel like is so important when you are owning a small business, when you're opening a business is separating yourself and your identity and ego in some ways from your business. Chris: Right. Amyn: You know, it's something that I, you know, try and share with our franchisees when they're opening a school and they're having a quality assurance visit or their first, maybe, you know, not ideal interaction with the parent. I mean, there's a real personal feeling there. It's easier said than done, right? Chris: It is. Amyn: But I, to your point, very important to do. So let's kind of dive into some of those subjects because you start the franchise part of the business, I think you said 2017. So it seems to me you're getting it off the ground. It's going well. And then a global pandemic hit. So let's talk about managing through kind of uncertainty, economic downturn, especially when your business is predicated on kids coming into a public, basically facility and gathering together when that wasn't going on. Amyn: Yeah. I mean, I remember March of 2020, I think our average school enrollment was about 200 children. And I think it went to 40 in two weeks, so very stressful period as you can imagine. You know, and one thing that I learned from the pandemic or from our team and in business is you can really pivot on a dime. You know, and I think that's something that I've taken from me too is we went to online learning, you know, for two, three hours every day we were able to orient the company in that direction. You know, it ended up generating a million dollars of revenue for our franchisees, which was a benefit. You know, we were able to do things like private kindergarten. We were able to do a virtual program for elementary school children. They were able to come in our schools and do the virtual learning from the elementary teacher at our schools, and everybody was separated apart. Chris: Wow. Amyn: So we were able to come up with revenue-generating ideas. We weren't able to make up entirely for the lost revenue due to COVID. But we were able to do some really amazing things and stay in really close communication with our franchisees. Yeah. Because as you know, each city, each state had their own requirements. Chris: Right. Amyn: I think I learned a lot from that, that, hey, if you've got a long-term goal, a long-term plan and things change within your business, that doesn't mean you don't change your goal. You know, you can orient things, you can turn things on a dime. And, you know, although things have returned to normal and in many respects, right? Or pre-COVID, I think the learnings from that have helped our innovation and just saying, hey, let's push a little bit more. Let's try a little bit more. Chris: I love it because I think the lesson there is despite what comes at you, whether it was in your control or not, there's always opportunity. Amyn: So again, it goes back to mindset. I thank you. Okay, get the team, you or your team together and go, okay, where are the opportunities out of this that we probably wouldn't have seen before? And I think, like you said, you see so many people, especially in your industry. Now that kids are back in your facilities, it doesn't take away the opportunities for online learning you can do. Chris: Right. Amyn: And it's just added revenue. Chris: Yeah, that's right. You know, I think, you know, a franchisee, they open and they think, oh man, you know, these problems are just centered around me and oh my gosh, I'm opening a business. And it's luckily now you're around 20 years of experience of us operating, but also imagine those franchisees that had that same feeling and they opened during 2020, 2021, right? Amyn: Where we had to do everything virtual. So, you know, I think, you know, a business owner, you have to be an optimist. You have to look for, hey, what are ways that either I could turn this around or generate some revenue. Growth mindset is just so important. Chris: Yeah, so true. So you mentioned innovation. What are some of the things that you have done or that you may be doing now to kind of foster innovative ideas, innovative thoughts within your team that you can then implement with your franchisees, etc.? Amyn: You know, I think so much of that comes from our goals and seeing, hey, what can we continue to do to further differentiate ourselves as being the leading provider of early childhood education? Right. I mean, you look at our curriculum, you know, we have a lot of, you know, mom and pops that are great, you know, and in varying levels of quality and large franchise organizations too. Right. And what you find is there has not been a great deal of innovation in the curriculum space and in education, you know, so really it's us thinking at things differently, like, hey, just because everybody else is doing the same thing. Chris: Right. Amyn: That grounded in the research of today? Right. Does that relate to the teachers of today? What children need to learn in order to be successful in the elementary school, middle schools in the communities that they're in today. I think just always trying to understand the why, you know, I think why is one of the most important questions that you can ask. And that's really what I do in the meetings is understand, hey, why are we doing this? How are we doing this? You know, I think that generates a lot of thought within our team. Then once we have those strategic tools in place, we have those systems in place. Okay, then what is our cadence to see how we're executing on it and seeing how we're going within that? Amyn: So I always think goal setting at the year, understanding what those rocks are each quarter, but then, hey, just because it's a status quo does not mean that's good enough. You know, so even in our curriculum, implementing coding and robotics, parent assessments that are digital. So you can see every, you know, every month, every two months, exactly what your child's doing in the classroom. Camera access. So as a parent, you can see exactly what's going on in your child's classroom. You know, those are not just tried and true things. Those are things that came from great communication with our parents, a team that is, you know, flexible, forthinking about what they would want to see as a parent and then great execution. Chris: Wow. That's great. So you mentioned robotics. I've got to ask, what are you doing or kind of what's on the horizon as it relates to your curriculum and your delivery of this, your childcare and child education, early childhood education as it relates to AI? Amyn: Yeah, I think that's a great question. You know, I think tools like AI are amazing. You know, there's so much that you can do in regards to communication, idea generation. You know, I think for us is just, hey, when it comes to technology, you know, how do we ensure that children today are well-equipped for their technological future? So when we talk about coding and robotics, it's not just sitting in a computer and coding, you know, for it. It's even from that two or three-year-old level of doing logic puzzles, if-then statements. If I take a certain input and I am bringing code puzzles to it, what do those outputs look like? So it's a great way of them to manipulate in a coding language, but not also spending time in the computer and being in front of a screen too, which also which shows you know, a negative impact due to research for that young and FNH, right? We're making steps towards that direction. We are not diving full ahead, you know, to me, it's one thing to be first in an area, but I'd rather do it best, right? And I'd rather do it where, you know, we're not just testing things on children, but we are providing something that is impactful. That's based on research that we know we can implement really well. And I think you're going to continue to see growth in that area, too. You know, other things is just back to a naturalistic component, having things like gardens in our schools, you know, teaching children, hey, the food does not just come from H-E-B. It comes from the ground, and this is why. So, you know, I think innovation is a big part of it. Chris: That's great stuff. I mean, I can imagine parents get excited about hearing about that fundamental learning that their kids are going to get to experience with you. Amyn: Yeah, absolutely. Building strategic relationships, you know, partnerships and things that you have, you know, obviously relationships with franchisees, but other key, you know, advisors or relationships you have. Let's talk in the context of the value you've seen in that, how you think that's helped grow the business and how you lean on those, you know, from time to time to get you through to the next stage, if you will. Chris: Yeah. I mean, I think you always want to be around people that are adding to your skill set and have exceptional talents in those skill sets. You know, I think about continual learning. Luckily, in franchising, it's an amazing model and way for people to share best practices. You know, the IFA International Franchise Association has amazing resources, especially for emerging franchisors. They have great conferences and that's a great way to share ideas. Amyn: You know, I'm part of a mastermind group of franchisors, 50 to 100 units. And just learning and seeing what best practices that they do. You know, they advocate a lot for transparency within a franchise system. Franchisees sharing what their P&Ls look like. What's going well, what's not going well in the business. And franchisees learning from each other and sharing best practices. You know, that's something that is important. We're implementing more in our business with benchmarking and KPIs and performance groups. Even being part of a local community, you know, I'm part of a Vistage group here in Houston. Chris: That sounds like an amazing asset. Amyn: Yeah, I think that is an amazing asset, going and meeting people in person, seeing their businesses, touring their locations. You know, I think sometimes being an entrepreneur, being a CEO can be a very isolating experience. Chris: For sure. Amyn: You know, all the fingers are pointing at you and all the hard questions come to you too. So being able to learn from others. I mean, learning from mistakes is great. Then you're not making them and they're less costly. So I'm always about trying to learn from other people. Chris: You alluded to one of my favorite questions there. So I always, I like to ask a guest, cause I do, we do learn from mistakes and it is nice if you can learn from someone else's, but has there been a setback or something you would describe, you know, a mistake or, you know, again, learning moment, like I mentioned earlier you've encountered? And let's talk about what that was, but what did you do to overcome it? What was the learning and how did it make you better? Amyn: You know, I think the learning that I encountered is not stepping into the business. And I think my idea of being a generalist came from mistakes, you know, being young and eager, wanting to jump in, hey, I can write this operations manual because I've spent time in the business or, you know, hey, use this marketing plan or this idea because it worked for me. You know, I think the big one was COVID early on. Oh my gosh, I was seeing the business totally transform. I felt the need to be in this. I need to be a wartime, you know, CEO or senior member. I need to be here. I need to be calling the franchisees. And really, our team had great ideas and approaches and they were thinking about the business and their fears around the business in a similar way that I was. Chris: Right. Amyn: Yeah. And the moment I snapped out of it was, hey, this training is great. I mean, but think about X, Y, and Z that the franchisee is going through. And I had my operations person tell me that. And I think it was a, oh my gosh, I've sucked myself into this business. Yes, there was a big change, but I talk about empowering my people. That also means not just when moments are good, but when moments are bad as well. So I think that goes both ways and people and relationships strengthen sometimes when you're giving someone the rope when the business is not going that well. Chris: Right. But I mean, that's powerful. I can certainly see how that was an aha moment for you. And again, for your people, right? That you trusted them enough in those times had to go a long way. Amyn: Yeah, absolutely. I mean, you know, it's kind of like war stories during COVID or the up and down, but, you know, having a kind of a business history and having institutional knowledge, I mean, those are amazing tenants. You know, a franchisee joins, they have now someone on the operations team that's been with you for 20 years. But you're also incorporating, you know, newer people who are excited about the culture that we're trying to build. That's really important. Chris: Yeah. Well, I think you've talked around this, but just to kind of crystallize it, I do want to ask, how would you describe your leadership style and how do you think that's changed or evolved over time? Amyn: That's a really good question. I mean, I would say I like to empower people, you know, I like to set goals and a vision. You know, we have a vision of where we want to be as a company, and I want to understand what people think and how they see us getting there. And I want us, and I'd like to see that individual develop KPIs. What they think are the right metrics. And I want to understand the rationale behind that. And then we'll get together and figure out alignment there. But I like to see how people think. I like to see thinking. I want a demonstration of why they are getting to that problem or what their reasoning is around that problem. Chris: That makes sense. Amyn: Then we check in and I let them do it. I always think about how I, you know, if I was the low man on the totem pole, how empowered would I feel? You know, what are my responsibilities? And I think that attracts, you know, passionate people. Chris: Yeah. Amyn: And that's what I want to see. I want to see passion because I'm giving that responsibility. You know, as you were talking, it made me think. You know, we talked about learning from bad experiences or, you know, maybe learning, seeing something and going, okay, I experienced this, but I don't want to repeat that. And I can't help but think you learned so much as an early analyst and how you were treated. Chris: Yes. Amyn: You go, if I'm ever in a position of leadership, I'm not going to do these things. And it probably serves as a good reminder and a guidepost for you. Chris: Yeah. Amyn: To say, no, you know, remember what I didn't like, and let's do the opposite. Chris: Right. Amyn: Yeah, you learn a lot from great managers and you learn a lot from not so great managers. Yeah. And, you know, I think I had a lot of those on my bucket list and I think a lot of just reflection too. I mean, you know, I really try and take feedback and I really try and understand. Hey, you know, I mean, I've made a lot of mistakes and I think it's just, hey, let me try not to make that same mistake a second time. Chris: Right? Amyn: But you know, the sad truth is you're going to make some more, as will I, and the goal is trying to make the same one twice, right? Chris: That's right. I mean, this has been great. What an exciting business you have going. I want to, before we wrap up, I just always like to ask a few, you know, maybe less serious questions. What was your first job outside of Ivy schools? Amyn: My first job was a company called Student Agencies, in college. I sold ad space on the maps that you'd see around the Ithaca campus and these brochures. And I also helped with marketing promotions. A promotion I actually dressed up in a mascot outfit was a big light bulb because it was for an entrepreneurship idea competition. Chris: That's great. Amyn: So, I was a light bulb for a few weeks around campus. Talk about humility, right? Chris: That's right. And if you sold ad space for a brochure, I have to believe you got used to hearing the word no. Amyn: Oh man, yeah. No is common. No is very common. Chris: Okay, so, grew up in Pearland, you know, Texan as you can get, so do you prefer Tex-Mex or barbecue? Amyn: Oh, Tex-Mex for sure. Chris: Something you missed when you were up in Ithaca, I guess. Amyn: Oh, man, yeah. You didn't see much Tex-Mex over there. Chris: Well, I mean, this has been a great conversation. Congratulations on the success of the family business and where you've taken it, you know, since joining and the franchise side of things. Really appreciate you sharing that story with us and wish you the best success in the future. Amyn: All right. Thank you so much, Chris. I enjoyed it. Special Guest: Amyn Bandali.

Building Texas Business
Ep082: From Corporate to Curls with Renee Morris

Building Texas Business

Play Episode Listen Later Oct 23, 2024 44:35


In this episode of Building Texas Business, I chat with Renee Morris, Chief Curl Officer at Uncle Funky's Daughter. We explore her path from management consultant to leading a national hair care brand. Renee shares her approach to maintaining business control by relying on personal savings and family support rather than external investors. She discusses forming partnerships with major retailers like Target and Walgreens while building a creative team to drive innovation. I learned how she tackles recruitment challenges and ensures brand visibility at a national level. Looking ahead, Renee explains her vision to expand into skincare and education, and serving communities of color in new ways. SHOW HIGHLIGHTS Renee Morris discusses her journey from management consultant to Chief Curl Officer at Uncle Funky's Daughter, emphasizing her desire to balance career ambitions with family life. We explore Renee's decision to purchase an existing company rather than starting from scratch, leveraging her experience in sales and marketing strategy within the consumer products sector. Renee highlights the importance of having a financial safety net when transitioning to entrepreneurship, sharing her personal experience of not drawing a salary for years and relying on her husband's support. We talk about Renee's strategic decision to avoid third-party investors to maintain control over her business, focusing on conservative growth and solving customer problems. Renee explains her approach to forming strategic partnerships with major retailers like Target and Walgreens, discussing the role of distributors in helping small brands enter national markets. We discuss the challenges of recruiting and nurturing talent, emphasizing the importance of fostering a collaborative environment that encourages innovation and creative thinking. Renee outlines her vision for expanding the brand into adjacent areas such as skincare and education, aiming to serve the community of color more broadly. We explore Renee's leadership style, focusing on adaptability and learning from failures as she considers new business ventures. Renee shares personal insights from her early career and hiring experiences, emphasizing the importance of trusting one's instincts during the recruitment process. We examine the role of social media and influencers in maintaining customer confidence and visibility during brand transitions, particularly when changes are made to product packaging. LINKSShow Notes Previous Episodes About BoyarMiller About Uncle Funky's Daughter GUESTS Renee MorrisAbout Renee TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Renee Morris, chief Curl Officer at Uncle Funky's Daughter. Renee shares her passion for helping curly girls solve their hair problems with unique and innovative natural hair products. Renee, I want to thank you for coming on Building Texas Business. It's so glad, happy to have you as a guest. Renee: Thank you, I'm excited to be here. Chris: Okay, so you won the award so far for having the coolest and, I would say, funky, but that would be. Renee: Play on words Right. Chris: But as far as a name for a company, uncle Funky's Daughter, yes. Okay, tell us what is your company known for and what do you do? Renee: So Uncle Funky's Daughter is a hair products company. We're based here in Houston, texas. I bought the company, so the parent company is Rotenmore's Consumer Group. But I bought the brand Uncle Funky's Daughter 10 years ago from a husband and wife team. So Uncle Funky's Daughter curates natural hair products for women, men and children who choose to wear their hair naturally, and so that's shampoos, conditioners, curl definers, moisturizers, stylers, finishers. Shampoos, conditioners, curl definers, moisturizers, stylers, finishers you name it, we make it. We also have a thermal protection line for women who want to blow dry and style their hair with heat, and we're distributed nationally Target, walgreens, kroger, cvs, heb, locally, so you name it, other than Walmart, we're there. Chris: Beauty Easy to find, easy to find, easy to find well, I have to ask this because I have daughters. I mean Sephora or Ulta. Renee: No, Sephora or Ulta. Yet we've been working that line. We can talk about that as part of this deep dive, but we've been working that line and but no land in Sephora or Ulta just yet okay, very good. Chris: So how did you find your way into the hair care product world? Because you didn't start there. Renee: No, I am a former management consultant 20 years management consulting, advising clients multi-billion dollar companies on how to drive revenue growth and through sales and marketing. And I was a mother of three kids. At the time my son was probably three or four, my daughters were two and I was flying back and forth between Houston and New York for a client. And I had this realization that I didn't want to do that as a mom. I needed to be home, but I still wanted to be a career person. So I knew I am not built to be a stay-at-home mother. That is not who I am, and COVID taught me that with isolation. And so what I started deciding was I wanted to figure out what I wanted to do next and I realized I had some options. Right, it's that fork in the road that you go through. You start to look inwardly every time you have that fork in the road and I did that and I said okay, your option A is to go find a company based in Houston and be a VP or senior VP of some operation. Option B is you find a small company and you're like a big fish in a small pond kind of thing. Option C is you just go do your own thing. And after I kind of went through it, I realized I worked for the Coca-Colas, like in GE Capitals of the world, in my past. I didn't want to go work for a big company. I didn't think I wanted to work for a small company because of my personality style, right, um. And so I decided I wanted to go buy something and then or have my own company. And so then the question becomes do you build or do you buy my? I'm a management consultant by heart, so it's always go buy something. Why? Because I can take it, I can fix it and I can grow it. And so then it became all right, well, what are you going to go buy? And so, like most people out there, they're thinking about buying a company. I started reaching out to brokers, I started doing some networking, calling attorneys, people that work on deals, that kind of stuff, just putting my name out there, and I got all the things that you normally get when you're looking to buy a company the gym, the dry cleaner, the storage facility, the gas station, all the things that I didn't want to buy because I didn't have a passion for them. And so, also, for background, my consulting experience in sales and marketing strategy has been predominantly in consumer products. So I know consumer products, I know revenue growth, I know marketing strategy. So I was like okay, so I kept looking and I used this hair product called Uncle Funky's Daughter. I found it when I first moved here in 2000. Like all curly girls out there back then, that was almost 20 years ago, my goodness. But 15 years ago back then there weren't a lot of natural hair products out there for women of color and women of curly hair with curly hair specifically. And so I googled when I first moved here natural hair products, curly hair, houston and Uncle Funky Stoddard came up. I've never heard of this company right. So I go to rice village and buy this product and I start using it. Extra butter, start using it. And for those out there that are, you know, african American descent, you know thick, curly hair, we do this thing called two strand twists to what. I love it. Two strand twist. Chris: Okay. Renee: So, you take your hair and you twist it in like instead, instead of braiding it, you put it in twists, and there are single twists all over my head right. So that's how I would style my hair wear it, rock a two strand twist. Those out there will understand that, look it up and then Google it and then and so that worked on my hair really well. And so, again, for those with tight, curly hair, finding the right hair product that works for your hair is tough. It is not easy, as you know. One of your team members, courtney, was talking about. She's gone through all the products Because you go through this product journey trying to find something that works for you right. So found Extra Butter, worked, loved it, and then I would stop using it while I'm traveling because I would forget it right at home sure. I would go back to some other competitive brand and it didn't work for my hair. So I'm like, okay, uncle Funky's daughter is the only thing that works for my hair. So I go in to get my Uncle Funky's daughter one day, after I, you know, had braids and wash them out. And yada, yada, yada. I'm going in, I'm getting my extra butter and this guy behind the counter who I bought hair products from for the past at this point, five years, says yeah, my wife and I are going through a divorce and I'm like, oh, so I do have an MBA right. I'm not some, you know, trying to sound like a shark, but my MBA said distressed asset might be willing to sell stress asset might be willing to sell. Like literally, that is the voice that went in my head. And so I was like, oh really. So I stood there in that store and I just chatted with him for hours and about the company, you know what, you know personally what he was going through, because divorce, you know, for those that may have gone through it, can be an emotional, you know troubling time. So I was a listening ear. But as I'm listening, I'm also thinking about like, okay, what's the story behind the brand? Is this going to resonate? And I'm also watching people come in and out, right. And so I said, well, if you guys are you guys thinking about selling it? And he gives me a story about you know what's happening with the sell and cell and I said, well, if you're ever thinking about selling it, let me know. So I walk out, I Google, because you know this is horrible to say, but divorces are public right right. Chris: Is it filed in state court? Renee: it's a public record so I'm figuring out what's happening with the divorce and I find out that the company is in receivership. And for those who don't know, because I did not know at the time what a receivership was, a receivership happens when a divorce is happening and the husband and wife aren't operating, behaving appropriately. Chris: Well, they can't agree on the direction of the company and it can be not in a divorce. But basically, owners cannot agree and a court may appoint a receiver to run the company. Renee: Exactly. Thank you, that's why you're the attorney and a court may appoint a receiver to run the company Exactly. Chris: Thank you. That's why you're the attorney. Renee: Have a little experience with that yes, so the judge had appointed this guy to be the receiver. I reached out to the gentleman and I said I'm interested in the sale of Uncle Funky's daughter, if that so happens to be the case. And so the one thing I did learn and you can probably expound on this is oftentimes in a divorce, when the receiver comes in, at that point that receiver is really thinking about how to get rid of this asset. And so those are all the things that I learned during this process, and I was like, okay, so he wants to sell because he wants to get paid and he knows nothing about this business. Chris: He was, you know no offense, no emotional tie to it, for sure no emotional tie. Renee: He's an older white gentleman who knows nothing about black hair products and so I was like, okay, so he doesn't know, he doesn't have an appreciation for the value of the company. And so I reached out and I said, okay, here's a number. You wouldn't believe the number I gave him and he counted with some minor you, some minor adjustment, and we bought this company for less than $100,000. And they had a revenue at the time. When I saw their tax returns, I think it was maybe a million or so that they claimed in revenue. At some point they said, but at least for sure I think our first year of revenue was probably around and it was a partial year. Probably a quarter million dollars is what revenue they generated, and so we really, if you talk about a multiple of sales, we bought it on a tremendous it's a heck of a deal the deal. Okay, I can't find those deals these days. If anybody has one of those deals, you come let me know and so. So that's how we ended up buying this company ten years ago and shortly thereafter, target comes knocking at the door and says, hey, we were having this discussion with the owners about, you know, potentially launching. Would you be interested? And I'm like, absolutely. And it was because they were going through this divorce that they couldn't get over the finish line, right? And so shortly after we buy, we're launching in target. But before I did that, one of the first things I did was because, if you ever, if any, it's probably so old you can't find it. But the label. When I first bought the company, when I was buying it, it was this woman's face with a big afro on the front and it had a cute little 70s vibe on it and it was in this white hdpe bottle which, by the way, those aren't recyclable. So I said first, we need to change this, we got to change the packaging, we got to upgrade the label, we need to make it universally appealing to all curly girls, because if I look at a woman with a big afro, I think tight, curly hair like mine right and our products work across the spectrum from wavy, like Courtney, to really tight, like Renee, and that wasn't representative on the label okay so we redesigned the label, changed the bottle from an HDPE bottle to a PET bottle, which is recyclable, and then just upgraded this packaging to what I consider a sleeker new look. Chris: Very good, Great story, Thank you. So back up a little bit, share a little bit, because so you go from big corporate consulting job some comfort in there probably. You mentioned travel and you did mention the mom aspect playing a role. But let's talk a little bit about actually getting the courage to take that leap out of the big corporate role into. I'm going to buy something that's all on me now to either make it or break it. Yeah, that had to be scary. Renee: It was, and I am fortunate in that. You're right. I had comfort. We have financial security. I had a husband who was, who still is, who's a senior executive in medical devices has nothing to do with anything about consumer products, but you know, we have the luxury for him to say I can carry this load, financial load, and I think that's the big mix, right? I tell people all the time if you're going to take that leap, you got to make sure you've got cash flow, because for not only for your, you know, for the company, but for you personally, right? Because there were several years where my husband called my business a hobby Because I was contributing nothing to the financial plan. Chris: In fact, you were probably taken away. Yeah, I was taken away. Renee: So every year I mean. So I wasn't drawing a salary. I didn't draw a salary for a couple of years after I, I didn't draw a salary until our tax accountant said you have to draw a salary because we're changing you from whatever tax to an S-corp. And I was like oh, wow, really Okay. So what am I going to pay myself? Okay, and then he goes Well, you have, and it has to be reasonable. So for probably three or four years after I bought the company, I didn't draw a salary. I was paying my employees but I wasn't paying myself. And so I think and I say all that to say yes, it takes a leap, but it also takes the ability and the willingness to take that financial hit Right. So were there things that we probably wanted to do as a family that we didn't do? Probably so. Chris: Yeah. Renee: Because I'm growing this brand and was there times I went to my husband like I need another thirty thousand dollars? Probably so. And because one of the things I specifically had chosen is I did not want, and I currently still don't want, to pull in private equity, vc any type of third party investor funding. That is a personal decision I've made and it's because I am a former accountant and I'm extremely financially conservative and I also don't want different incentives to help influence how I run my business, different incentives to help influence how I run my business, and what I mean by that is I personally just didn't want to have a PE company saying you need to do these three things because your multi, your EBITDA needs to look like this and your revenue growth needs to look like that. Right, so I could have we could have easily grown really fast, like a lot of brands do, and grown themselves out of business, or, but I chose the path to grow really conservatively Now, and so I think I say all that to say I think, yes, financially speaking, having the bandwidth to be able to float yourself and your company for a while is critical, and so don't take the leap if you're still, if you're at your job today, living paycheck to paycheck right, you have to have a cushion. Your job today, living paycheck to paycheck right, you have to have a cushion. So what that means is, maybe if you're trying to start the company, then you're running your business while you're living paycheck to paycheck and oh, by the way, you gotta stop living paycheck to paycheck because you got to start to build that cushion, right. So some of the you got to make sacrifices and I think that's the hard thing. Not everyone's willing to make the financial sacrifice that it takes to really run and grow a business without third party support. Now, in today's world, you can go get bc capital funding and you know money is flowing, or at least it was, you know but there, but there's sacrifices, but there's sacrifices with that, and so, yeah, that's great advice, you know. Chris: The other thing that you mentioned, as you were evaluating companies is one of my favorite words when it comes to business is passion. You passed on a ton of things because you weren't passionate about it. Renee: Yeah. Chris: You found something you were passionate about, and I think that's a lesson for people too, right Is? It's not easy to do. As you mentioned. Sacrifices have to be made. So if you're not really passionate about that decision to go be an entrepreneur, start your own business. It's going to be tough. Renee: Yeah, it's going to be tough, and so, because I have to wake up every day, I my passion is really helping people solve problems, and I do that through hair, because hair is a problem in the curly hair community. How do I maintain frizz? How do I keep it under control? How do I keep it healthy so it doesn't break? How do I keep it healthy so it can grow? How do I stop the scalp irritation? There's so many problems that happen in hair and so I what I think about. Like literally yesterday I was with my marketing team and we're talking about a campaign for the next month for products etc. Or really November, and I said, OK, what problem are we helping her solve? And that's literally the way I think about stuff what problem are we helping her solve? Because if we're not helping her solve a problem, then I don't have anything to talk about. Chris: Ok, Right, yeah, it's not going to move off the shelf. Renee: It's not going to move off the shelf thing to talk about. Chris: Okay, right, yeah, it's not going to move off the shelf. It's not going to move off the shelf. So another thing that you kind of alluded to, you went through somewhat. It sounds like a kind of transforming the business that you took over, right? You mentioned the product label and packaging. Let's talk. What else did you, you know, in taking that business over, did you find yourself having to change, and how did you go about making those decisions? Are either prioritizing them and you know we can't do it all- at once yeah, so what walk? us through some of the learning you went through that well, you know what's interesting is. Renee: So it wasn't much of a transformation, but it was. If you think about learning from a marketing standpoint, if you're going to buy a business, especially a consumer product company, and you buy it in today's world where we're so used to knowing who the owner is the first people don't like change. So one of the first things I had to do was convince our current customers that nothing had changed other than the label. The minute your package changes and it looks different, they're like the formulas have changed, it's not the same be the same. It's not the same product. So the first thing I had to do was convince them that this is the same product. In fact, I brought back discontinued SKUs that the receiver had stopped selling because they were slow moving. **Chris: How did you go about convincing the existing customer base? Nothing changed. Renee: So news articles, facebook articles, facebook social ads, like having live conversations, going live on social media all of those were things that I had to go in and dispute or Dubuque being like I was the person respond. There was no team, it was me and one other person. The first person I hired was a social media person. Okay, wasn't a warehouse person, it was a social media person because I knew being the being in the face of the customer was so important. So being live and answering questions online, answering the phone and people would call they will go. I heard that this wasn't the same formula. No, ma'am, it's the same formula. And actually having those, it was me having those live, one-on-one conversations. And so I think really touching the customer and being personal with her was the key to our success in in gaining that confidence. And we also you know this was early in the days of influencers we also had to partner with people to be able to talk about. Like it's the same stuff, guys, this is the bottle. This is the old bottle. This is the new bottle. This is both sides of my hair, no change. Chris: Okay, okay, very smart to especially, like you said, I mean so many people now the social media influencers have such impact on what products get picked up in the mainstream. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom, and thanks for listening to the show. Chris:So let's move forward a little bit. Part of changing things new products. There's a level. You mentioned your marketing meeting yesterday. What do you do within the company to help kind of foster innovation and inspire your people to be innovative about the products? Renee: That's a tough one because it's hard. Here's the challenge that we have as a small company. As a small company, it's hard for me to afford to pay me like the equivalent of a me right. The woman or a man with the MBA in marketing who's got, you know, 10 years at Coca-Cola. I am oftentimes recruiting talent, that's learning and I'm teaching, as they, you know, grow up in our company and so innovation is really. You know, I'm usually in that meeting asking the provocative question Like do these assets, does this story come together like cohesively, what problems are we helping them solve? Like, I am there helping them think through and push their thinking a little bit forward. We'll sit and we just do brainstorming with, you know, little toys in the room and stuff to play with, but it's really just helping them kind of. All right, just toss some ideas out there. Let's just throw like what is this, what does this mean? What's her brand voice? What does she sound like? What does she look like? Like asking those questions to help them just kind of think outside of the box. Now, if she looks like this, so what kind of tone is she going to have? All right, so what would she say then? Okay, so let's talk about, like how then that manifests itself and how it shows up creatively, and so just helping them kind of drill down to the so what is really kind of the role I like to play. It's the role I'm playing right now because I'm looking for a marketing director. Chris: Okay, yeah, anybody listening out there. Renee: Anybody listening out there? Submit resumes. Chris: So you talked about some major players as partners that you have right, yeah. Target and Walgreens and CVS, et cetera. So let's talk a little bit about that. How did you go about? You kind of you told a little bit about Target, but what have you done and what have you found to be successful? And maybe strategies that weren't successful in forming those relationships, but maybe, even more importantly, fostering and maintaining those relationships. Renee: So forming on the forming side retailers. For those who may or may not know the space, they want to come to you in one of two ways either direct or indirect through a distributor. For a small brand like mine, it's usually hey, I don't want to service direct, I want you to go through a distributor. And usually it's because when you first launch, you're going to be in a handful of their stores not full distribution is what they call it so not in all 1700 Target stores, but I think we started out in a hundred and so we had to go through a third-party distributor, and so that distributor then opened the door to other national retailers for us. So if you're thinking about launching into a national retail partner and you're a small company like mine, your best route to market is finding a distributor that represents your category in a national retailer. So whether that's peanut butter, hair products, lotions, flat tires, whatever, so you have to go and find that distributor. So that was step one. Once we got that relationship, our job is to grow it by driving traffic through the stores and getting that sell through. If it's not generating units per store per week, it gets pulled right. So one person wisely said a retail shelf space is like real estate. Once you buy your home, you don't want to lose it to foreclosure. So once you've got that slot, my job is to defend those two slots. And when I say we're national retailers, we're not like a P&G where P&G dominates the shelf. We've got sometimes two slots, sometimes four, but we're not, we don't have 10. So our slots are really important for us at a retailer and so for me, maintaining the relationship comes back to driving the traffic to the store. But, more importantly, supply chain. So when I talked about growing too fast for some brands and having measured growth, it was very important for me because I understood I came from a consulting company, although I did did sales and marketing most of what we did as an organization was supply chain. I wasn't the supply chain person, but I like to say I knew enough to be dangerous when I bought Uncle Plunky's daughter. So because I understood supply chain, I knew that not, we could not risk. We needed to have safety stock, we need to have inventory levels that look like x, and so that's why I did what I called measured growth. And so you know the distributor may come to me and go. I can get you into Kroger, walmart. Nope, we're going to do one retailer a year, one big guy a year, because I need to make sure I can scale, I need to make sure my contract manufacturers can scale, I need to make sure my team knows what to do and they know how to execute and fulfill the requirements of that specific retailer and so that we are successful. So that was the way that we grew and that's kind of the way we've continued to grow. Chris: That's so smart, that discipline right. It's easier said than done, because you just start a company and you go a couple years not making any money, or what you do make you put back in the company and then you got all these great opportunities. Come at you once. Renee: It's easy to say yes yes, yes, yes and yes, but you can't fulfill those promises, no one will come back. And there are horror stories where brands have been like yes, I'll go into Target, walmart, kroger, heb, cvs and Walgreens all at the same time and they can't meet the demand or they launch and they don't have enough awareness in the consumer market to be able to support and drive the traffic in all of those stores. So you really have to focus on how you're going to grow, where you're going to grow, and how you're going to drive traffic into these markets and into those stores. Chris: I mean any details you can put behind that, just as some examples to make it a little more tangible of things that you did, things that you thought about. Okay, we have to get this right to kind of prove that we can go to the next level. Renee: Yes. So for Target we did a lot of in-store events, so we took Target. So imagine if I was doing replicating this across like five different retailers. But for Target back in the day, for social media was much more organic and less pay-per-play than it is now, right, so we would do like it's a 10-day countdown. You know, to Target we're launching in 10, 9, 8, like on social media, it was like running ads. Then we did a find us in the Target, so we would do these fun games on social media and our followers would have to find us in their local Target and if they found us and they won a gift card, so we were doing anything we could. We would do in-store events where we would just have a table popped up where you can try products, give away products, get coupons, you name it. We were doing it. Gotcha, we were doing events outside the store. Inside the store. I was rogue because I didn't have permission from Target to do this. I mean because that would have cost me tens of thousand dollars, right, Target, I hope you're not listening and so we would literally just grab a camera and kind of come in and we would kind of sneak our little basket through the store down the hall and we would sit in there and the manager would come like, oh, we're just doing some footage, and I would say I just launched and I'm really trying to help my business and they would get it because you know, their local store manager, and so they would allow us to do like a little bit of a, a little bit of a pop-up shop kind of thing, and they would allow it. Now, today they probably wouldn't allow it because we're probably a lot more disciplined, but 15 years ago, 10 years ago, they would allow it and so, yeah, so those are the things that we had to do. So imagine if I was doing that for sally, for walmart, for kro, all in the same year, and I'm still trying to drive the traffic right, because we were still a small brand. Chris: Sure. Renee: I still call us a small brand because you know, if I go to you and I say, have you heard of Uncle Funky's Daughter? And your answer is no, then I'm a small brand, right. If I say you cause, everybody's heard of Clorox, coca-cola, pepsi, all the things, right, lacroix, you name it, they've heard of it, they haven't heard of Uncle Funky's Daughter. And so we're still in constant mode of brand awareness, and so trying to build that brand awareness and drive demand in every retail shelf at the same time would have been a daunting task for a brand like ours. Chris: Sure, do you still have the Rice Village? No, okay, shut that down we shut it down. Renee: I shut it down when I bought the company. That was the condition of the acquisition, because the day that I went and discovered who the owner was of the brand and I was sitting there chatting up the guy, in about a four hour period that I was there, maybe three people walked into that door okay so that you know, my brain said all right, that's a like a revenue killer. I'm not, you're not driving revenue right you need to focus on driving traffic on the retail shelf, and so are. We have no physical retail store now. Will we once again one day, maybe in a different format? Right, because now you, my friends? Other people have said you guys should open up a salon, and I'm like so maybe we'll open up a salon where the products are available and featured, but a retail store exclusively focused on our products will not be in a timeline. Chris: Okay. So there's an example right of an idea from friends. Maybe you thought about it, of branching out from what's core to your business. So far you've said no because you haven't done it. Maybe it's still out there. Why have you not done that? And I guess what could you counsel some listeners if they're faced with that? Or maybe they've done it and trying to make it work Again. That's another danger point, right Before you kind of branch into something different. Renee: So there are two things what I think about. Again. I always go from management consultant first right when I think about my business. I don't think about it personally, right, I think about it objectively. So I can go deep in my vertical or I can go wide horizontally, and I can do both. And so right now, where we are as a brand, honestly, is we need to go deeper in R&D and innovation. So we have not had an opportunity to launch a new product since COVID, and so we're in the process of developing a new product, so that's my primary focus. A new product line so we're developing a new product line, so that's my front focus. New product line so we're developing a new product line, so that's my front focus. Then, as I start to think about adjacency, about how do we take our core and expand and pivot beyond. Do you go to Skin next and stay in consumer products and go into Skin? Do you go in the two places that I'm more actively looking at Skin is out there as a product extension, but that's still core to Uncle Funky's Daughter. Do you go and do you buy another small company within Rote Morris Consumer Group and now you build a portfolio of brands? Because that's, really what I wanted to do when I started Rote Morris Consumer Group. My vision is to have a portfolio of consumer goods brands that meet the needs of the community of color, whether it's beauty, so for beauty. So that could be hair, that could be skin, it could be makeup, it could be a variety of different things that help her solve her problems every day. So that's really the vision. And then I bought this building a couple years ago and we have this wonderful, amazing space, and so and I open up this space I'm looking around. What are we gonna do with the rest of this space? We have this whole first floor, we have a whole second floor that's unoccupied, and even before I bought the building, this idea of building talent and a pipeline of funky junkies is what we call our followers funky junkies yeah that's what we call our followers, our customers. But how do you start to build not only a pipeline of loyal customers but a pipeline of loyal users? And so I started thinking about what if you actually had a trade school? What if you actually started? What if you were the next Paul Mitchell for African-American hair products, right when there's a Paul Mitchell school and you're teaching natural hair instead of you know other treatments that they do, and those exist outside of Texas. There's one that exists in Houston, but not focused on natural hair, but focused on beauty school. And so for those people out there who choose to have a different path in life and not go to college, but they're looking for a vocation or trade school and they want to be a hairstylist or barber, do you create a space for them to be able to do that? So that's the second adjacency. And then the third adjacency is then do you go the other end? So I know how to do hair, I'm learning how to do hair, I've got hair products, I'm doing hair on the other side and that's where the salon comes in. So in all both ends of the spectrum, I am a deep analytical person, so it's understanding what's happening in the market. So in the salon side, you look and you have to figure out and this is for anyone right. You never take a leap in adjacencies just because you think you have the money, the capability, the resources, whatever. You have to understand what's happening in the market because you're not smarter than the whole market. You might be smarter than a couple people in the market, but not the whole market. And so when I look at the hair salon space, I knew of several people in the Houston market that had launched salons and they had failed. They had failed within a three-year cycle and they had failed because the type of offering service offering that they wanted to provide was challenging. And that's the same service offering that we would need to provide as a brand. Chris: Right. Renee: And resources and talent. Going back to this other end of the pipeline I was talking about, in the supply chain, those can be sometimes challenging resources to recruit and retain in a salon side, and so when I do the analysis, it's looking at the risk versus reward. How am I smarter than the next person? How do I learn from those failures and ensure that I can recruit talent where I'm not? I don't have a high degree of turnover. I can create brand consistency. I can create service levels that meet the needs of not only what I want to offer, but what our customers expect. I need to exceed it, and so, because I haven't gotten that magic formula yet, we're leaving the salon right here in the marketplace. Chris: It's still on the drawing board right. Still on the drawing board, I like. I like it well, as it should be, until you figure it out, right? Yeah well, so let's turn a little bit and talk a little more about you yeah in leadership. How would you describe your leadership style? How do you think that's changed or evolved in the last 10 years? Renee: so I am a type a, hardcore type a. I am a driver and I know that about myself. But I also know that one of my weaknesses as a leader is I don't micromanage. What I have learned to evolve because of my consulting background, right In a consulting world you know 20 plus years is how I was trained. I'm a former salesperson. You just go get it done right, you know. So that is that's kind of like my bread and butter, and you have a team of type A's that are pretty much driven just like you are. So when you guys have a clear plan and you've got the end goal, all you're doing is managing the type A's to make sure that they get to the goal right at a very high level. No one needs to. You set meetings to review the spreadsheet and the spreadshe's done right. Fast forward to Uncle Funky's daughter. You set meetings to review the spreadsheet and it's like, oh, I wasn't sure what I wanted to do, what you wanted me to do, so it requires much more. What I'm learning is it requires me to evolve my leadership style from one that's hands off, that's a little bit more hands-on, to make sure that my team understands where the bar of excellence is what our customers want from us, what the implications are when we miss deadlines, what the implications are if we ship the wrong product to the wrong customer, and so showing them and teaching them is where I've kind of learned. That's where my role is as a leader, really helping them really understand the implications of behaviors. And so I've evolved to from a leader that's I'm still. I still tell my team hey, I don't micromanage. If I have to, if I know it before you do, that's probably a problem, and so so they understand that, and so I think I'm still evolving my leadership style to adapt to a smaller company with a different team that thinks differently from the type A consultants with the MBAs that I'm used to working with, to the ones who you know maybe they don't have the MBA or maybe they're going to get it, or maybe they have a desire to get there, and so it really has required. It's a growth opportunity for me that I'm still learning to grow in, to be able to shift my mental mindset away from I got a team of driven people to I got a team that needs to be inspired, you know. Chris: Yeah, that's great. So what have you done to try to help you in the hiring process? Make sure you're making the best decision you can make about who you're bringing on your team? Renee: You know it's the hire slow, fire quick. Chris: Yes, another easier said than done. Renee: Easier said than done and that's where I am right now. Even in this open marketing director job that I'm looking for, it's really making sure I've gone through I go through so many, I go through all the resumes. My assistant will filter out the trash. But once she's filtered out the trash, I'm looking at those resumes going okay, is this someone who's going to? Because I'll openly say the reason I'm looking for a marketing director. I'll tell you this story. So I hire this person and she's from Adidas. She comes from Adidas background in marketing and she's Under Armour in marketing and she was in Latin America director of Latin America markets and she's just moved from Houston. So I'm thinking I've got a Latina because it's part of my demographic. That's awesome. She's got this global brand experience that's awesome. All in athleisure but transferable skills. It's marketing. She quits three months later, found another job in athleisure. So I interviewed, interviewed and found this one and this woman, you know, sold me on. I mean we had multiple conversations. I was like you know, sold me on. I mean, we had multiple conversations. I was like you know, hey. Chris: I'm really concerned about whether or not you know you can migrate from big company to this small company Cause it is a very valid concern. Renee: It's a big change. Right, you don't have a team. Your team is a team of three, not a team of 20. Right, and so your role really changes. And so she. You know, she convinced me that, but the lesson learned was that you know my spidey senses. I didn't listen to them. Like my spidey senses said, she may not stay. Like there were little things that happened along the way you get enamored with all the other stuff. Right, but I was so hungry to have a big company, someone to come in to show my team other than me, for them to hear it from someone other than me that this is what marketing looks like, Right, this is the marketing discipline that we need to have. And so she came in. She brought some marketing discipline. She heard that, you know she brought some value in the three months, but it was. It's been really a painful learning process, right, because now I'm short of marketing director, I'm stepping in, yeah, yeah. Chris: Well, what you alluded to there, right, is just the cost hard cost and soft cost when you make a bad hiring decision yeah Because you know you're having to fill the role or someone else. Renee: Yep, so that distracts, you, it's me right now. Chris: It distracts you from doing your full-time else. Yep, so that distracts you. It's me right now. It distracts you from doing your full-time job. Yep, you're now spending time going through resumes and going to be interviewing and you wasted, if you will, all the time on the one that only lasted three months. Yeah, so there's a lot of cost there. There's a lot of cost there. Renee: And then you're sitting there and knowing I've got to restart this whole process, I've got to try to maintain the momentum within my team this is the second marketing person they've had in the past year so and so how do you start to just kind of manage through that and so, instead of and when you get burned, that one time, as I'm looking at resumes, I'm looking at people with deep experience in a particular industry and I'm going oh nope. Chris: Learn, that is, that there's that bias creep right you're. You have to not let yourself penalize these people you've never met, just as they might look the same on paper yeah, as the one bad actor in the group. Renee: Yeah, and so you and you're right, and so I'm going well, and I'm having these conversations and then yeah, so it's just. Yeah, I think that's like one hiring, firing, hiring slow, firing quick. Chris: Sometimes, even when you hire slow, you still get I tell people it's part science, it's part art and it's the more process I think you can put in place and follow the better. But you're never going to be 100 right and I think figuring out the characteristics that work in your organization is something that you can incorporate into your hiring process and know that this is the kind of background traits, characteristics that thrive here. Renee: Yeah, and even and I would also say, listening to that, you know, those spidey senses that are coming with those thoughts creep in like, and they were coming like there were things, there were triggers that happened through the hiring process. Then I was like I'm not sure she's going to be a good fit. Like you know, for example, she called and said hey, can I work from home? I was like no, you cannot work from home. So that was like that was. Oh, renee, we're gonna do a whole episode on work from home. Oh yeah, oh yeah. And so those were the triggers of like, okay, she might not be the good fit. And when those were the when that happens to you, you got to listen to it and like and be okay with backing out. But I didn't listen to the trigger because we were so far down in the negotiation and I should have just said, you know, I don't think this is going to work out Right, and rescinded the offer. But I had already extended the offer, right, and I didn't want to have egg on my face. Chris:Sure. Renee: So I mean I, what I should have done is just let my ego go, rescinded the offer and continue to look. Chris: Yeah, or at least be upfront about this is starting to give me concerns. Here's why. Renee: Yeah. But I you know you know it's which I did that I did that okay, she covered it up she covered that up. She told me exactly what I wanted to hear, but still the those doubts were in my head and I should have listened to my gut. And that gut is a powerful thing. You know that, maxwell Galt, maxwell Galt Gladwell, it's a powerful thing. And if, when you listen to it, you're usually right, 100%. Yeah, 100%. Chris: Renee, this has been a fascinating conversation. Just to wrap it up, I have a few just personal things. I always like to ask yeah, what was your first job as a kid? Renee: Newspaper. I was a newspaper girl. You had a newspaper route? Yes, Absolutely I did. I'll be darned. My sister got up in the morning and helped me through my newspapers. Chris: You're not the first guest. That was their first job it was fairly common. Renee: You had to make me dig deep for that one. Chris: Okay, you made me dig deeper on this one. Sometimes people say this is the hardest question. Yeah, do you prefer Tex-Mex or barbecue? Renee: Barbecue no sauce Seasoned, very well seasoned, no hesitation. Chris: No, no hesitation and the woman knows what she wants. Yes, right. Renee: Don't bring me brisket with sauce on it. No. Chris: No sauce Extra seasoned. Renee: I want seasoned brisket, the moist kind. Okay, and, by the way, I'm not a Texan, but I moved to Texas and now I've been here 15 years and now it's like brisket barbecue. It's the only thing that I eat. Chris: I eat it's the only thing I want to eat. I might die of a heart attack, but it's the only thing I want to eat. I love it All right. So because you have four kids and I know your life's running crazy, this will be more of a fantasy. Renee: Yeah, if you could take. Chris: If you could take a 30 day sabbatical, where would you go? What would you do? Renee: Oh, I would be somewhere, probably in South Africa, in the, probably on a safari. I would tour safaris. I would go South Africa, kenya. I want to see the migration of animals. I would do that. Chris: I love it. Renee: That's where I would be. Chris: Renee, thank you so much for being on. This has been just a pleasure getting to know you and hear your story. Renee: Thank you. This is awesome. I listened to NPR how I built this. So this is like my. I feel like I'm excited. I've kind of done the NPR check. I like the how I built this check. Do you listen to that? Chris: I do, I do, I love it. I love that analogy. Renee: Yeah, it's great. Chris: Thanks again. Renee: Thanks for doing this. Special Guest: Renee Morris.

Building Texas Business
Ep081: Reimagining Tradition with John Marvin

Building Texas Business

Play Episode Listen Later Oct 9, 2024 39:58


In this episode of Building Texas Business, I discuss John Marvin's transformative leadership journey as CEO and President of Texas State Optical (TSO). Founded in 1936 by the Rogers brothers, TSO evolved into a franchise operation spearheaded by John starting in the 1990s. Hear John's compelling account of reviving the brand, establishing the franchise association, and guiding the innovative physician-owned business model that has empowered young optometrists for decades. With the evolving eyewear landscape, our conversation analyzes consumer behavior shifts and their implications for strategic competition amid growing online retailers. We also explore the importance of supporting TSO's physician member network through mentorship and partnerships, especially given industry consolidation challenges. SHOW HIGHLIGHTS John D Marvin shares the history of Texas State Optical (TSO), founded by the Rogers brothers in 1936, and its growth into a franchise operation. We discuss how John Marvin revitalized TSO in the 1990s and his journey to becoming the president of the company in 2001. The episode explores the challenges and strategies involved in competing with online retailers in the eyewear industry, emphasizing the importance of convenience and well-stocked dispensaries. John describes the shift in optometry ownership trends, with fewer young optometrists interested in private practice, paralleling broader healthcare industry trends. We examine the strategic importance of building a physician member network to support optometrists and the criteria for network inclusion. The episode delves into leadership principles inspired by John C. Maxwell, highlighting the role of influence, trust, and accountability in effective leadership. John reflects on the transformative impact of setbacks, such as being fired, and how these experiences shape one's leadership journey. We explore the importance of forming strategic vendor partnerships and the role of mutual accountability in maintaining long-lasting business relationships. John emphasizes the need to adapt to industry shifts, including the rise of artificial intelligence, while fostering an innovative mindset among optometrists. The episode concludes with a discussion on the significance of understanding and meeting customer needs through effective consumer research, as a universal business strategy. LINKSShow Notes Previous Episodes About BoyarMiller About Texas State Optical GUESTS John D MarvinAbout John TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet John Marvin, ceo and President of Texas State Optical. John shares his views on how the fundamentals of leadership boil down to influencing and how having mutual accountability in your business relationships create win situations. John, I want to thank you for taking the time to join me today. It's really been a pleasure to get to know you before we got started here. John: Well, Chris, I appreciate the opportunity to sit down. I always love talking about business. Chris: Well, that's good, that's what we're going to do. So you're the CEO and president of Texas State Optical, or most people know it as TSO. That's right. Tell us a little more detail about what is the company, what does it do and what is it really known for in the market. John: Okay Well, texas State Optical was founded in 1936 by four brothers the Rogers brothers, in Beaumont, texas, and anybody who's been to Beaumont or familiar with Beaumont knows of the impact those four brothers had on that community and then in turn throughout Texas. Two of the brothers were optometrists and they opened pretty traditional optometry practice. And if you'll think about what else was going on in 1936 in Beaumont, it was the oil boom that was just blowing up, and so the one that originally came to Texas from Chicago all four of them were from Chicago called back home and said boys, you need to move down here. We got a big opportunity and they did, and consequently, over the next several years they built a large retail optical chain they called Texas State Optical, and one time in the early 60s it had reached over 300 locations. And one time in the early 60s it had reached over 300 locations and those were in New Mexico, oklahoma, arkansas, louisiana and Texas, and so that went on until, due to some legal issues with the state optometric group, who decided that they didn't want someone in the state running 300 locations, they passed some legislation that limited optometrists to only three locations and so they could subsequently, after a long legal battle had to sell off most of their property, but they kept the core of the business of the optical lab. They kept that and kind of a condition of buying. The practice was that you obligated yourself to continue to purchase items from them. But then in the late 60s the Rogers, having gone through this process of dissolving their ownership in it, decided to turn their attention towards real estate development and at one point they owned 25% of Caesars Palace in Vegas. They just got involved in other things and then consequently in the early 70s they sold the company to a large pharmaceutical company, gd Searle, who then subsequently sold the company in the early 80s to Pearl Vision. Most people are familiar with Pearl Vision, most people are familiar with ProVision and ran that until the late 80s when they sold it to a group of kind of investors who wanted to own it. They didn't really know how to run it than investors. So in I got involved in 1993 doing consumer research for the corporate office. My background at the time I had a company marketing management group and based here in Houston and it was a small marketing management and consumer research group and was doing work in other areas. But picked them up as a client and began to do a lot of consumer study for them and learned about the business. At that time it was somewhat distressed because of the leadership that had taken over from the Pearl Vision taken over from Pearl, and so there was a lot of unrest among the franchisees because at that time TSO was a franchise operation and so I helped them form a franchise association and then kind of on a part-time arrangement took on an executive director position within that while maintaining my consumer study and research stuff. And so that happened until the late nineties, when everyone was planning for the great millennium you know, the 2000 and Y2, right, right. And so we gathered everybody in my conference room over here and how, booty building, and down here in the galleria and they started you know, flip chart sheets, what do we want to accomplish? And blah, blah, blah, and and that the result of that was really, guys, you're not going to get any of this done unless you own it. And so we began to have some discussions about them buying the company, the, the franchisor, and that took about a year to negotiate, and during that process I was asked to come on as the new president and since and then we closed in June of 2001, and since that time I've been the acting and operational by president and CEO of the company, and one of the reasons that it appealed to me was it was the ultimate fixer-upper, because the company had really was kind of loosely held together but had an iconic brand, and so we started opening new locations with Young Optometrist and we're a brand license company. So we knew that the only way we could pick up a new customer, if you would be, if a young OD wanted to open their own practice and then we could help them do that. People that were established at the time and successful weren't interested in converting to a retail trade name, so we did. We opened up about 80 new locations and helped a lot of young ODs live a dream and had put together a whole turnkey system commercial realty contractors the whole nine yards. Chris: That's a fascinating history, you know, to kind of just see it grow so big in the beginning, get broken down and then almost come back together. Yeah with, I guess in 2001 you said, with these individual practice owners or franchisees becoming owners. John: That's, you know, kind of unique, especially for doctors yeah, it was a different approach to it, one of the reasons we can set it as a now. We never incorporated it as a cooperative, we incorporated it as for-profit. We simply chose to run it as a cooperative, which, by its nature of co-op, isn't intended to make money, right? So we could keep the services and the value of what we offer members very high because we priced it at a break-even point, and so it was very appealing to a lot of young ODs who needed that help without any experience knowing what to do. And, of course, we then had a retail trade name that had market appeal. So a lot of them benefited greatly by, as opposed, to, opening up under their own name and unknown in a community. Chris: Yeah, it gives it instant credibility with the brand name right. That's right. What are some of the things I guess that you know since that time in 2001, that you do and your team around you, to kind of help preserve that brand value, to make it marketable and enticing to these doctors. John: Well, part of it is the importance. An optometry practice as a small business has a very defined marketplace of about three radium miles Okay, so one. That's part of that is because there are so many options and the profession is a licensed profession and so there's a little bit of perception by consumers that it's a commodity. In other words, anybody who's got a license will be able to give you a good exam. Consumers at one time back in the 60s and 70s, thought mostly of wherever they got their exams. That's where they purchased their eyewear. Chris: Out of convenience, right Out of convenience. John: That's right. And in the 80s you had a much more proliferation of retail optical chains like LensCrafters and EyeMasters at the time and Pearl Vision, which were creating an awareness among consumers that you know what, I can get my exam in one location and I can buy my eyewear in another location, and so that added to that sense of commodity. And so what we've done is focus on a three mile marketplace. So instead of running one advertising campaign in Houston, we run 50 around each of our locations, and those are largely driven through community involvement, pay-per-click, you know, today pay-per-click In the beginning though, a lot of it was just getting to know your school nurse, getting to know the coaches in the league ball game, and so from a marketing strategy it was always hyper-local standpoint. And so if you go into some neighborhoods, everyone knows the TSO. If you go into an neighborhood where we have no location, maybe not so much, and that was done probably more just from a practical standpoint of cost than it was anything else, because you know Houston and Dallas. Where we're at in San Antonio, they're very expensive media markets and so if you've only got, you know, 20 locations in the DFW market to go in and try to buy television, advertising or something more traditional is prohibited, and so it makes a lot more sense because that's where people live and work. People ask me sometimes how do you go about picking your locations, your real estate stuff? And I said we tend to let Kroger and HEB do that for us. So, wherever they're at, we want to be close because that's a neighborhood. Chris: That's right. You figured they thought there were enough households to support a grocery store. So I like that, you know, uh, you know. There's a lesson there, though, for a business owner, an entrepreneur, in that you don't necessarily have to do all your own organic research if you don't know, aware what's going on, you can, you know, let someone else do some of that and just make sure that their end users look like yours, and that's right. John: They do a tremendous job, both of those companies, at understanding the market before they ever buy land or pour concrete. I'd hate to insult them by not taking advantage of all that good work they do. Chris: They're genius right, they're genius, that's right. You just mentioned, you said 30 different or 50 different marketing campaigns in Houston alone. I mean, how do you go about figuring out you know the right message for the right place? That must take a lot of work. John: Well, not so much I mean because the message in Sugar Land is the same as the message in the Woodlands. I mean people. While we, as as in our profession, try to complicate this, it's pretty simple from a consumer standpoint. They're looking for a place where they can get their eyes checked and buy a pair of glasses. But probably two-thirds of all of our revenue today come from a third-party payer. So that changes kind of the basic consumer behavior dynamic. But by putting out a message that really is focused on that group of people in terms of maximizing the value of those coverage benefits, that becomes real consistent and then it's a matter of just being louder than anybody else. Chris: Sure, while we're on the subject of that consumer and consumer behavior, what are some of the things that you have done over the last 10, 15 years to either combat the online competition, as you mentioned, because people get their eyes examined and they either go online or do something. How are you managing that and what are some of the strategies you found to be successful? John: Well, first of all, consumers are driven, and I think this may be generally true, but certainly our consumers are driven with the priority on convenience, and one of the reasons the online marketing purchase of eyewear is so appealing is its convenience, and oftentimes it's not a price issue as much as it is a convenience issue and assortment and selection. So one of the things that we focus on is to make sure that our retail dispensary that's what we call the retail store aspect of a practice is well inventoried with product and assortment price points, and then the ultimate differentiation is customer service and knowledgeable people, and so if you have selection pricing and knowledgeable people, it's a home run and you don't have to worry about it, because if you can make it convenient for them, then they're not tempted to go online. And because there's a lot of I don't know if you've ever bought a pair of shoes online, but all you need to do is have one bad experience with that and have to turn around, send them back and so forth and so on that people would really prefer to get it locally, where I got my, where they received their exam, and it's kind of hours to lose. So we try to make sure we don't give them a reason to leave. Chris: Yeah Well, it's an interesting analogy with the shoes, because I can relate to that and see that people like to try on shoes but also glasses right. John: What are these going to look? Chris: like, and if you're at a store with a good selection, it's all right there as opposed to ordering one or two online and knowing you're going to be returning something. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at BoyerMillercom, and thanks for listening to the show. That's right, yes, well, that's it. So let's shift now kind of to this physician member network. What do you look for, if anything, as far as qualifying people to come into the brand, and then how do you help, kind of manage and support once they're in the network, if you will, to make sure that you're doing all you can to help them be successful? John: It's an interesting change we're seeing right now, especially in the last five to 10 years, and that is, the number of young optometrists who have an interest in owning their own practice is going away. Chris: It's really an interesting thing. John: One. It's very similar to what's going on in healthcare in general. You know, I was just talking to some people last week and I said you know when was the last time I asked them? I said do you have children? Yes, do you have a pediatrician? Yes, is that pediatrician private practice? Chris: No. John: It's owned by some big organization like Texas Children's, and what you're seeing in healthcare delivery at the provider level is a consolidation of these organizations and the disappearing of private practice, and we're seeing that now in optometry. And another big dynamic is 85% of all optometry graduates today are female, and in the 80s that number was just the opposite. It was very unusual in the 80s and early 90s to see women in optometry school. I mean they certainly didn't represent the majority. And so with that comes different priorities of practice. You know you don't have the hard-charging young guy who wants to go into small-town Texas and really build up a big practice or even a metro area. You have people that are much more interested in part-time, that I want to be able to step aside, raise my family, then maybe come back later, and so there's a whole different culture among the providers now coming in. So our organization as a business model relies on young optometrists wanting to own their own practice, and if that category is declining we've got to come up with some other plan here to maintain Sure. So one the opportunities we have are less. The vetting process is largely a discussion with very successful people. Our board of directors consists of nine doctors and three outside directors, but the nine doctors are all very successful. And so a young person does approach me and we talk, I want them to speak to one of our successful guys, and then their job is to kind of assess and come back to me and say, John, I don't know if she's ready, I don't know if he can do this, or I think this is a home run, let's go. And with their input and my discussion I've been doing it now long enough that I kind of get a feel for it Then we'll say let's go. And really it's a matter of they own everything. It's a matter of us guiding them through the process and then supporting them with just the knowledge they don't have about building a practice afterwards, and then lots of follow-up and hand-holding. Chris: And it's done. I think you said just as, basically a license agreement where they're licensing the name and brand and they get some support as a result of that as well. John: I mean contractually, I'm not obligated to support anything. Contractually I'm not obligated to support anything. All I'm obligated to do is to keep the value of the brand consistent with what they're paying for it. But I realized that if they're not successful, my brand value suffers. So we do all that we can to support them and help them be successful. Chris: So let's talk a little bit about your internal team. I mean, you've got a team I think you said 12, that's kind of help support you, that support these members. What have you found to be successful as you've gone through maybe trials and tribulations of hiring the right people, making sure you've got the right people in the right seat to kind of support the business and the brand? John: You know, that's a great question, because I, up until about 2015, I took a whole different approach to personnel than I did 2015 and on, and it was like I learned something, and that is I put together a group of really knowledgeable people in terms of their expertise in certain areas, but the quality that I had not paid attention to prior to that was they also had to be connectors. They had to be the kind of people that could say hey, chris, I know somebody you ought to talk to. And so because when a non-doctor walks into a doctor's office, even with the responsibility of helping, they carry a different level of credibility with that doctor than if a doctor told them something. If we go in and say, hey, listen, you need to be open Saturdays, because there's a lot of business on Saturdays, I don't want to do it. But if a doctor tells them, oh man, you got to be open Saturday, they'll listen to it. But if a doctor tells them, oh man, you've got to be open Saturday, they'll listen to it. And so our guys who are in the field, they do tactical training and support for staff, but when a doctor is facing an issue that they know the answer to, they in turn, seek out other leadership in the doctor community to say would you mind giving so-and-so a call Because I think you could help them get through whatever issue they're dealing with. And so that quality and frankly it's, you know it requires someone who doesn't have much of an ego. Sure, because you know I say this all the time like my old friend Ronald Reagan used to say, there's no limit to what you can accomplish if you don't care who gets the credit. Chris: Yeah. John: And so we take that approach, and ours isn't about trying to get a bunch of credit. Ours is about trying to lift up this organization and get these guys successful, and if we're simply a facilitator in information to how to do that, we don't have to be the initial provider of that information. Even if we know it, it comes much better from a colleague, and so that's one of the things that we put a lot of emphasis on is helping the network, help each other. Chris: So you know you were very quick to say 2015. Have you seen a dramatic improvement in the performance of the overall business since making that change and kind of focusing on the connector quality as being an additional important quality in the people you bring on? John: Very much so, because what Texas State Optical was in the beginning was a doctor-owned organization and doctors working with other doctors to help them grow a network and large business. We're trying to replicate that from the standpoint of, especially as the business, the structure we use I mentioned earlier as a cooperative. It requires doctor leadership to be active and engaged in running their own company, their owners of the company, and so, while I have certainly an important role in that, the more doctors that engage in the leadership of the organization, the better it is overall. And since we took that intentional effort in 2015, a couple of things too. We had a kind of an evolution of membership. I mean, we had a lot of our older doctors retire and sell practices, and then we had a whole influx of young doctors, and so we ended up in 2015 with an organization that was significantly different demographically, both age and gender. That was significantly different demographically, both age and gender. But we thought they need mentorship among the leadership in the organization, and so we worked at creating that for them, and it impacts not just clinical I mean, there's also that aspect of it they're learning clinically from friends but operationally, and so it made a big difference Very good. Chris: I know that you have supply agreements with certain labs and other things. Let's talk about some of the things that you found to be successful in maintaining, I guess, forming those kind of key strategic relationships for the business, and maybe some of the things you do to make sure that you foster and keep them strong of the things you do to make sure that you foster and keep them strong. John: Well, in the vendor-doctor community there is a kind of an assumption made by both sides, and one is the doctor assumes that the vendor's got more money than they know how to spend or what they've got all this money to spend, and the vendor assumes the doctor's not going to follow through on all the promises they make. So that's kind of where we start at the table, and so I think it's important and what we've worked at bringing to our relationships is mutual accountability, and we have found our vendor partners to be extremely invested in our success, but at the same time they've got a business to run as well, and so our success with them and that dynamic of that exchange or relationship cannot be at the vendor's expense. It's gotta be the classic cliche win type of thing, but you only get win if you have mutual accountability. And so in every agreement we have, here's what the vendor commits to and here's what the doctor community commits to. And then we have business reviews where we sit down and say here's where we're dropping the ball or here's where you're dropping the ball, and we hold that accountability does a long goes a long way to not only making the relationship productive but also building trust and longevity into those partnerships, because if you're making money with a partner, you don't want it to stop, right, you know? And that goes both ways If you're a doctor making money with a partner, you don't want it to stop, and if money with a partner, you don't want it to stop, and if you're a partner, you don't want to stop. So I found that type of mutual accountability and the willingness to be held accountable is critical to those relationships Very good. Chris: So you know. Talk a little bit about leadership. You've been running this organization for a long time now. How would you describe your leadership style and how do you think that's evolved over time? John: well, I would. I don't know if I've ever been asked to describe it, but I would say it's Maxwellian. Okay, and that means John C Maxwell, who is an author, has written a number of books on leadership and, in my opinion, probably is the most the best leadership author. I'm biased, of course, but I think he is. Forbes Magazine said that a few years ago, but basically his definition of leadership is influence. Nothing more, nothing less. It's just influence. And an example of that is if you walk into a room of people, you're naturally going to notice someone who's exercising influence on others, and it isn't an authoritarian way, it's in a trust and credibility way. And so if you're influencing, you're leading. If you're not, it doesn no matter what title you have. So an example is my when I explained how we use doctors to help influence other doctors. So that's a level of influence that doesn't come because I require somebody to do something. It it occurs because you're able to influence others to to make a difference. So I would. I'm a big believer in that. I'll plug his book. There are 21 Irrefutable Laws of Leadership. It's a classic, and so that's like a Bible. It's my business Bible in terms of leadership style. Chris: I was going to use that word because others and it's fair to plug books, because sometimes I ask people what's a book you would recommend. We hear a lot of good to great from people Sure, jim Collins. But what I love what you said if you're influencing, you're leading, because I say a lot of times a true leader leads without a title. John: Right, you're actually doing things without the title to demonstrate leadership, which is what you're talking about Exactly, and if you do have the title and can influence, it's a home run. It's a home run, yeah. Chris: So you've learned that through lots of trials and tribulations. I think we all learn through mistakes or setbacks Anything you could share with the listeners about a decision made that didn't go the way you thought but you learned from it and that learning kind of catapulted you made you better because of it. Setback, failure whatever word you want to describe Anything you could you care to share in that realm. John: Sure the. So I came to Houston. I was born and raised in Western Kansas and I was in Wichita born and raised in western Kansas, and I was in Wichita, kansas, in 1989, excuse me, in the late 80s, 84, 89 era and I was working for a large ophthalmology practice up there as a marketing administrator and in that role I attended a lot of national meetings in ophthalmology and during that meeting I met an owner of a large Houston ophthalmology and during that meeting I met an owner of a large Houston ophthalmology group who ended up offering me a job and I came to Texas. Due to some marketing challenges we were facing at that practice, I was introduced to Texas State Optical while I was at that practice and then left after about four years, left that practice and went to a consumer research firm here in Stafford and quickly turned around and went to Texas State Optical to see if they would like to buy some insurance I'm not insurance, buy some research and they did so. I ended up doing this large project for them but also ended up doing a ton of work for HLMP. During the time they were prepared to try to go to battle with Enron and this was like early nineties, right, and so everything was going well. And then I get fired from the research thing. Now I moved my family down from Kansas. I've been in the state about five and a half years and I get fired. I've been in the state about five and a half years and I get fired. And that was a big you know. Anytime you've been fired, that kind of devastates you Right, it shakes you up. Chris: Yeah, it does. John: But had that not happened, I wouldn't be doing what I'm doing Right, and so I have learned, and what pulled me through that is faith, Faith in God and faith in myself is faith, faith in God and faith in myself, and I felt like I can do, kind of what. There was a part of it, chris, that was liberating, because that was like, instead of thinking now what am I going to do, I was thinking now what am I going to do. I mean, it was a whole different frame of attitude and that subsequently ended up leading to the position I have today, through working with franchisees at Texas State Optical and so forth. Chris: That's a great story. Thank you for sharing. You bet A lot of people don't want to talk about, especially if they've been fired for something. But to your point on that, these other opportunities would have never presented themselves right, because you likely stayed in the comfort of the job and seeing where that takes you. You know there's so much that can come. John: Actually, I'd gone to that research firm. The owner of it had brought me there with the promise implied I mean not implied, but it wasn't in writing but the idea was that I would take over that firm at some point and it turned out that didn't work out Well you know a lot of what you, I think, describe. Chris: The undertone to that is the mindset you had in the wake of that setback. You know you didn't let it take you down. You're like like you said what am I going to go? Do I got all these opportunities and go? Explore and figure it out. John: So I had about 30 days before the next house payment came, so that you were acting quick, got to be decisive man. Chris: You can't be stewing on decisions forever, for sure, well, that and so you know that leadership, you know is forged and helped you get to where you are today. You know, when you, when you think about applying that mindset and that leadership kind of style, how does it help you kind of navigate the ups and downs of the economic cycles that we've experienced over the last 20 plus years? John: Well, you know, first of all is to understand which of these cycles are cyclical. That's a little redundant, but I mean, what is it we're going through that's cyclical. That you can. You know, business loves a stable and predictable environment. Right Now, the reality is it's ups and downs. But if it's ups and downs within a certain range of up and down, it's stable right, and you can prepare for it Certain tolerances right, yeah certain tolerances. What we've seen, not only in the economy and that's a whole different issue but what we've seen in the profession itself and the consolidation of private practice by private equity that's come into the marketplace, is we're seeing disruption like we haven't seen before. And I was talking to one of our board members doctor board members about it and we were just, you know, he was pointing out all of the things that are kind of out without from under excuse me, out of our control, and as we were talking about it, I had this thought and I told him. I said it's a great time to be alive and that because we're the ones that get to go through this, and in many ways I believe that our profession is going through a transformation that will take probably a 20 year period of time. But 40 years from now, optometry, I don't think, will look anything like it does today, and it's always bumpy to be in the middle of that turbulent transformation. The 80s were very steady, the 90s were pretty steady. It was in starting about 2010, 2000, that things started rapidly changing and then the acceleration with just technology and everything else is just gone, and then you've got now the whole world of artificial intelligence coming into play and it's. I consider it exciting, invigorating, challenging, but I mean what's? The alternative is to be bored right. Chris: Well, if you don't adopt and if you're not using it, you die use it you die, that's right. So I mean, you know, kind of it's a great segue to what are some of the things you do to kind of foster that maybe innovative mindset of how you're going to embrace the technological changes and use them in the business model to further the brand and the business. John: So I there's very little I can do without the support of the doctor, owner, community right. And sometimes there's a lot of indecision, because when you're not sure what to do, you're scared of doing the wrong thing. Chris: Sure, Well, it seems like you got a lot of opinions that out there too, right? John: You got a lot of them, and so what I have to do is to influence them through other people and through information, to get them to a point of being open enough to consider ideas that they might consider kind of sacrilege in some case. For instance, what is real common in most optometry practices today is what's called an autorefractor. It's a machine that people go through and it gives you a prescription, and the prescription is used by the doctor to zero in on where your visual acuity is right. Well, when that first came out, optometrists thought that was the end of the profession. Here's a machine that'll do what I'm doing. Optometrists thought that was the end of the profession. Here's a machine that'll do what I'm doing. And so there's a fear oftentimes of innovation. Right, that you have to assure people that there's a way to use this to our benefit, and that's what we're going through with artificial intelligence right now. One group is scared to death. It's going to replace them. The other group is glad they're old enough, they're probably not going to have to go through with it. And then you're looking for those people who say, hey, how can we utilize this to really to our benefit? Yeah, and once people feel that's safe enough to kind of try. Then the people realize that the fear is misplaced. Chris: So true, right, but it takes education, information and influence, as you said, to get people to get there so that they can adopt it One of the things that I teach my team to say. John: I mean to believe, and I say it all the time is we believe in everybody's right to make a bad decision. So if someone listens to us and they choose not to do what we're recommending and we know it's a good decision what we're recommending and they choose not to, it's their right. You know, I mean everybody's right to waste their own money. So that kind of patience is necessary with a group like ours. In many ways it's like working with a volunteer organization. Chris: Yeah, well, lots of challenges there, I'm sure. Well, john, this has been a great conversation. I really appreciate you sharing everything I want to ask you, I guess, going back to your days, you know, I guess growing up in Kansas what was your first job? John: A drugstore Rexall drugstore and I grew up in a town of 2000 people and my dad was the family physician of the community and so of course in a town like that in western Kansas the doctor and the pharmacist are close relationship. And so I got my first job at a drugstore, working a soda fountain, delivering prescriptions, restocking things. Like that had a blast and that really I learned a lot in that, not just like everybody learns a lot from their first job, but understanding. I was intrigued by Rexall. I don't know how familiar you are with Rexall, but Rexall was a national organization that gave private ownership of drugstores the purchasing power of a large corporate chain, and so my employer was the pharmacist. He owned the drug store and he stood up in the stand in the dais every day counting pills and chatting with people. So that was my first job. Chris: Very good. Well, you've been in Texas now since what the late? John: 80s. Chris: So do you prefer Tex-Mex or barbecue Barbecue? Okay. John: Barbecue Very good. My waistline prefers barbecue. Chris: And last thing if you could take a 30-day sabbatical, where would you go and what would you do? I don't know, Probably nuts. John: I just I've got to be engaged and I mean I don't have to be. I'm not select. I love business and I love the challenge it has. So I'm not I don't. You said earlier in our discussion about you were describing about the law firm. When I was doing consumer research, I did some healthcare work 12 Oaks Hospital was a client and so but I would tell people, is I specialize in a process, not an industry, because the process is the same and I would say that's what I really love about business, because when you boil it down to what I do and what you do and others that run businesses, it's the same process. It's understanding your customer and then directing how your services or products benefit that customer and communicating and the whole marketing scheme of promotion, price, product and place applies to every industry. And so I'd probably do something if I had 30 days. Like I said, I'd go nuts. Chris: Well, but I think what you just said there in the end is you have great insight and learning for business owners and entrepreneurs out there. You're trying to find their way. It's it is figure out what the consumer that you're catering to really wants and then deliver that as efficient as best you can that's why you know my, when I first got into consumer research, I thought this is like cheating. John: I mean you're actually going out and saying what do you want? They tell you, and then you give it to them. I mean it's like, it's amazing. Chris: Yeah, right, so well, this has been great, John. Thanks again for taking the time. You bet I really appreciate your invitation. Special Guest: John D Marvin.

Building Texas Business
Ep080: Tackling Homelessness with Kelly Young

Building Texas Business

Play Episode Listen Later Sep 25, 2024 39:42


In this episode of the Building Texas Business Podcast, I interview Kelly Young, CEO of the Coalition for the Homeless in Houston. We explore how Houston has become a national model for reducing homelessness through data-driven strategies and collaborative efforts. Kelly shares insights on effective nonprofit leadership, emphasizing the importance of building solid and accountable teams and fostering diverse thinking. We discuss the critical need for sustainable funding in homeless response systems, moving away from reliance on sporadic disaster funding. Throughout our conversation, we delve into Houston's successes and the ongoing challenges in addressing homelessness. -- SHOW HIGHLIGHTS Chris introduces Kelly Young, CEO of the Coalition for the Homeless in Houston, discussing the organization's role in coordinating the Way Home system. Kelly describes her journey from providing direct services to adopting a systems-thinking approach, emphasizing the importance of data-driven strategies and compliance in managing federal funds. We discuss the structure of the Coalition, including key departments like finance, compliance, outreach, landlord engagement, and housing, as well as its unique position working between city and county governments. Kelly shares insights on building strong, accountable teams in nonprofit leadership, balancing visionary goals with improvisational strategies, and fostering an environment where diverse thinking thrives. We explore the significance of clear communication, especially for introverted thinkers, and the importance of acknowledging mistakes openly to build trust and strengthen teams. Kelly highlights the critical need for sustainable homeless response system funding, discussing the inadequacies of relying on sporadic disaster funding and the necessity of evolving data to better serve those still on the streets. We delve into the business rationale for investing in homeless response systems, emphasizing that it's a financially sound decision that ultimately reduces costs on public health and other services. Kelly explains the success of Houston's model for reducing homelessness, including the collaborative efforts among for-profit, non-profit, and public entities, and the innovative use of disaster funds from Hurricane Harvey and COVID. We address the importance of community engagement and understanding how systems work, as well as addressing severe mental illness and substance abuse issues more effectively. Kelly shares leadership lessons learned through experience, including the importance of passion, data integrity, personal and professional integrity in communication, and fostering a culture of risk-taking and growth. LINKSShow Notes Previous Episodes About BoyarMiller About CFTHhouston GUESTS Kelly YoungAbout Kelly TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Kelly Young, CEO of the Coalition for the Homeless in Houston. Kelly shares several great tips for leaders, including the value of direct communication. She also sheds light on the homeless response system and why Houston is leading the country in reducing homelessness in our community. Kelly, I want to thank you for taking the time to come on Building Texas Business. It's great to see you. Kelly: Lovely to see you and thank you for inviting me. Chris: So you are the CEO of the Coalition for the Homeless in Houston, and so a little bit different guest than normal, but not outside the box for us. Tell us what the Coalition for the Homeless is and what it does. So. Kelly: I like to think of the Coalition for the Homeless is and what it does. So I like to think of the Coalition for the Homeless as a coordinating body over what we call the Way Home, which is a collective of for-profit or non-profit and public entities that come together to resolve the issue of homelessness. Chris: Very good. So how did you get involved in the homeless response system, how long have you been involved and what really inspired you to do this? Kelly: I've actually been interested in helping people figure out better lives for themselves since I was like 12. I mean, I was what was called a people tutor when I was in a middle school, where I actually helped individuals with physical disabilities learn sports. And then I did some tutoring in high school and then I started working in a shelter for abused kids and I worked with kids who were coming out of psychiatric units. Then I worked in domestic and sexual violence. So I think I was always on a path to be a part of something that helped make other people's lives easier for them to be successful. When you do a lot of that direct work, you see the individual impact and the individual failures. When you get to do it on a systems level, you get to decide whether a system will be helpful in helping someone or whether it's setting up people for failure. So I've been in the Way Home system for about 12 years as an individual agency that helped provide direct services. But I'm actually a systems thinker by nature and so I kept going well, why doesn't this work and why doesn't this work? And the whole system here works. My job was to help it work better. So you know, like with any system or any business, you're constantly thinking about the future and what needs to change and what's going to be different coming up, and so I got the perfect opportunity to come in at a time when there is a major shift in many of the pillars of how the work is done, and I get to help design what that's going to look like, and that, to me, is the purpose of work. Chris: Love it. That's great. So, just to give our listeners maybe some context, let's just talk about the size of the organization, the coalition itself and maybe then, and maybe then, the system, participants and members, so they get an idea of what it is, that the organization is that you're running, as well as a system that you're trying to help manage and, as you said, get better and be more successful. Kelly: Well, I think, like any business, we are well-structured in terms of having enough staff to do the things that are core to our business model, and a couple of those things is we have a heavy compliance and finance department. We are nonprofits, are tax status not our business model, and we think of finance and compliance as sort of the heart of the organization. It pumps the blood through because we manage and help support almost 23 million to $40 million with a federal funding which requires us to follow lots of rules and regulation and make sure it's done correctly, not just for us, but also for our partners. We will provide certain types of services if we think that from a systems perspective, it makes sense to have an overlay. So we have an outreach team, we have a landlord engagement team and I can go more into depth about that when I talk about the system and then we have a housing team and those are really to bolster the system, not to replace the system in those jobs. And then we have this second largest department, which is really our data. We're a data-driven organization. 12 years ago, the coalition made a major shift, which was to use data to drive the construct of how the community actually resolves homelessness or deals with homelessness in the community and in that data. What we did was build out our 100 partners who have to agree to be a part of the database and include all that information but also follow some of our guidelines around standards, so that we can bring more and more money in from the federal government but also provide much better services and a quicker response to somebody who falls into homelessness. Chris: Okay, so, and at the coalition, what is it? Roughly 80-ish, I think, employees. Kelly: Yes, we're at 80. And I think we're also unique because we sit between the county and the city. We are trying to manage both of their expectations around homelessness. So sometimes people think of us as quasi-government. We are not. We are a nonprofit. But we sit there so that we can meter both sides what the county and the city wants and they don't have to be trying to work that through. So we always find the best solution for both Harris County, montgomery County and Fort Bend, and then the city of Houston Very good. Chris: So yeah, let's talk a little bit about the system. You know some people may be aware I think you know a lot aren't but just the success of Houston and how Houston has become the model for the country on addressing homelessness, reducing homelessness in our community. You know a lot's been written, most recently about the Houston Chronicle a little over a year ago, new York Times. You know you've been involved and interviewed in those things. Share a little bit for people to kind of understand how successful Houston's been to date. And of course, we can talk more later about the challenges we still face. Kelly: Yeah, I mean, I think one of the things and again, any good business person or anybody who's looking to innovate understands that you first have to know the problem you have and then understand how you want to solve that problem, and for what I think the system did really well over the last 12 years is to build out the right system mechanisms and then the right interventions to use our money to the fullest extent. So what most people don't understand is that for the homeless response system which we oversee, that is mainly funded by federal dollars and so we are under federal guidelines on how we do that, which means we actually cannot interact or help somebody until they are currently on the street and in that then we have to be able to place them in other places, including permanent supportive housing, which is for somebody with a documented disability who's been on the street for a long time. They still will pay part of their rent out of their disability dollars, but we give them a subsidized apartment and appointments to kind of get off the street and going again. I think the other piece that people don't understand is that we only have two systems. We only have rapid rehousing or permanent supportive housing. So our options are very limited, which means you have to be incredibly smart and innovative about how you engage not only the community, the people who need the service, but then the service delivery when we have taken advantage of, which I think is true in Houston. Why I love this city so much is we take disasters and turn them into determination, and so we took both the Hurricane Harvey and COVID and use those additional dollars to build out enough of a safety net, but then also a permanent place for people to live, that we were able to move over the last 11 years, 30,000 people off the street. We reduced homelessness by 60% and I know people are like, well, but I see people on the street, Absolutely, but you don't see the ones we placed in the housing and who moved on with their lives because they're gone. They're doing their lives. Chris: The thing people I think should know is and you can share some details but you know and we know from the research and the data that A lot of what's at the streetlight, those aren't homeless people. Kelly: Right. We also have an issue with people living below the poverty line. So United Way points out and rightfully so, that 40% of the individuals in Houston are $400 away from catastrophe and that means we have a lot of people living on the edge. So if you're unable to get a job or you're unable to work full time, you might see people who are out panhandling to get a job, or you're unable to work full-time, you might see people who are out panhandling. There's also people who take advantage of people who are in those situations and use that as their own mechanism to make money, because they actually place people there and then collect some of their money so that they could go stay in their shelter. So it's an interesting world when you actually find out what's going on in your street corners. Chris: Right, right. Well, I love that Obviously very close to this issue and the system, and so I think it's great to be able to tout the success we're having, as well as you know the challenges we face. You know people talk about the goal of ending homelessness and I love the kind of the phrase that's been adopted is making it rare, brief and non-reoccurring, because, as you said, so many people are living right on the edge. People are going to something's going to happen, people are going to end up homeless, but the question is is there a system there that can rapidly get them into housing and the supportive services they need to recorrect? Kelly: Yeah, absolutely, and I think the important piece of this is looking at equilibrium. So what you want, I don't need to have a lot of additional dollars that are sitting there waiting to do something. I need just-in-time dollars. I need to know that if a downturn has happened in the economy, if there's something happening on the street, return you know, in terms of people falling more readily into homelessness, rents have gone up something else has happened. I want to be able to bolster that very quickly so I can move those individuals off the street within 30 to 45 days. That reduces not only the trauma on that individual but it reduces the trauma on the community and as a community member myself I mean, I live in Midtown, so I often see a lot of individuals I've known for a long time to be on the street and you know what I don't want people to do is to get to the point where they don't care about those individuals anymore because it's disrupting their community. So equilibrium not only benefits the individual, who is facing a really difficult time, and moving them on quickly so it's a blip in their life, not an extension of their life and then also for the community to be able to stay in that caring and compassionate place so that they'll get involved and stay involved in the work of our unhoused neighbors and friends and, quite honestly, brothers and sisters. Chris: So let's turn the page a little bit and talk about you know you came into this organization at the beginning of 2024. Let's talk about what it's like to, you know, step in as a CEO, a new CEO into an organization and some of the how you approach that from a mindset, because I would think you know some of our listeners may find themselves there, may be experiencing it as well. So what was the mindset you kind of took in to make it a smooth transition and so that one you could honor what's been, what was being done by the you know, maybe previous CEO, but you know, make a smooth transition and find a way to put your own mark on the organization moving forward. Kelly: I think one of the best things people can do is first lie to themselves and then tell their truth. The lie you tell yourself is that you know everything's going to change and you list it out and you ready yourself for that. Intellectually, I do think where you probably need to tell your truth is that change is complicated and hard. I think sometimes, when you're in a leadership role, you want to reframe things for other people so that it's easy for them to understand and maybe to jump on board, but you yourself know it's difficult. I mean when you know the financial picture is going to change, the model is going to change, the people are going to change, and those were all true for us. That list sounds great and easy, but it is a constant attention to each small move that you're making and what the long-term impact is. I always describe strategy as visionary and improvisational and I think that's a good balance and that's how I've been able to translate what I think needs to happen in an organization. I mean, obviously you're listening, you know the pillars have sort of changed. You're listening to other people, you're absorbing other people, but I also come in and I'm really clear about how I work and what my accomplishment looks like and how success looks to me, and I drive that home in every single meeting. So people learn to trust that what I'm saying is true. When I make a mistake, I tell everybody straight up. I'm you know it's not falling on my sword. I just think it's important to model that. I think one thing is, for some of us who are more introverted thinkers, one of the hardest things to learn to do is how to over-commun messaging to people. Chris: Because I do so much of it in my head, I have to remember to actually put words to it well, and I mean yeah, go ahead obviously not the right, but I mean I can relate to that because you not only that, there's so many things going on in your brain, right, and you're you like. I just completed this, I got to get to the next thing and it's finding that time to either stop and slow down and communicate before you move on or, you know, remember at some point you need to stop and let people know what's going on through those ears. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom and thanks for listening to the show. Kelly: Yeah, I always call it the Kelly Young madness or the Kelly Young magic, because it's like some people are good at waiting to see what's going to happen. Other people are like I have no idea what she's doing and we're just going to hope this all works out. And it's my responsibility as a leader to alleviate both of those misunderstandings. Right, because I need people engaged in the process. I'm a big believer that right buck stops with me. I'm going to make the final decision, but very rarely is the final decision my decision. It's everybody else's input. I'll take the accountability, I'll be the one who pushes it through. But if I don't have the buy-in from the group and they can't be settled in some agreement, especially when you're changing from something that has run successfully for a very long time and all the conditions changed and change and you have to let people know it's not, we're not changing because you did something wrong. We're changing because it's time to move forward. That kind of reframing I think is extremely helpful and that stuff. You should know what you're going to say and how you're going to lay that out to your team before you start day one. Chris: Very good. So, speaking of team obviously you just said this in one of your responses that is, while the buck stops with you, you make the final decision. It's rarely your decision. That's because you have a team around you, right, and you're relying on them and you're pushing them, all those things. So let's talk about building a solid team around you. What are some of the things that you look for? Again, this isn't your first time to be CEO of an organization, so I know you've built teams more than once. Let's talk a little bit about that. What are some of the things you look for in the hiring process, in the evaluation of the people that you have when you take over? I think there's a lot that could be learned from that. Kelly: I'm one of those people. I'm a little super nerdy this way and I learned a decision-making model a long time ago called the seven hats, and the idea behind it is that each person at the table wears a different hat, and so you have somebody who's the white hat, which is the emotional and red hat, and they're the naysayer. And as much as I'd rather have everybody just do what I want and like me and do all that. I also know that's a terrible way to run anything, so I work really hard at actually having very different ways of thinking at a leadership level. Sometimes that causes more conflict or contrast in the way we resolve an issue, but I expect people to come and learn professional communication skills, and if you can't, you should go back to school or learn a YouTube. I don't care, because the purpose should be. I need you to be here for what we're here for. I don't like a lot of internal nonsense. I don't like us spending a bunch of time on stuff that doesn't matter, because the kind of work I've always done meant somebody did not get out of a domestic violence situation because we were spending time arguing about who left the coffee pot on. You know I walk past somebody who's on the street who needs to get housed. I don't want to sitting around arguing because somebody thought somebody was rude one day. Like that just can't be in the workplace. I get why it is, but I want people who come ready to do work and actually can define what work means to them. The second thing is always happens in this field. I just want to help people and that to me, is the death nail answer, because my answer, my question back to you is going to be what does that mean and how does that look? Because you wanting to help people doesn't have very much to do with actually serving people. Those are two very different concepts. So I also am very clear about the environment that I want at work and you have a choice Don't sign up and then come in and want to change it, add to it, make it better. But I'm not going to adjust what I think has to happen in an organization to go to the next level, because I typically have taken jobs where I'm right in the middle of a major change and I do know what needs to be functionally happening on a regular basis to make that shift. Chris: So you know that's very insightful and you know the core of what I think you're saying. If you boil it down, is it comes back to very clear, direct communication, setting expectations, et cetera, and then holding people accountable. All of that then leads to culture when you're building these teams. If you think about what you've done in the last nine months at the coalition, how would you describe the culture that you're striving for, that you feel like you have? You know, growing there. Kelly: I have a speech I used to call the mean speech I never thought it was mean, but somebody had called it where I lay out what I learned over the time of my working, in the time that I made some really serious mistakes, and what I learned from those and how they need to interpret that into their new work environment. And so with that, I think what happens in the culture is they actually see me living the story I told and I bring it up over and over again in different pieces. I think storytelling is important for that reason, but I show them what I did that didn't work, so that they have a clear understanding of what I learned from what I didn't do or what I did wrong. So they understand that this is a learning environment, that part of your responsibility is to be curious and to want to understand how to do things better or differently. If you come in and you say to me well, you know, I just need the training and I need this, you will not last well in my organizations, because I expect that you're more interested than that. You have to want to care about data. Data is most important, particularly in nonprofits, because you are telling the future of how most federal dollars are going to be spent in your case notes or in your reports. I talk a lot about gossip and that you can't stop it, but you have a personal and professional integrity line in how you communicate account. You know, for me I run it this way, which is every single dollar that comes in here is somebody else's dollar and somebody else's money, and so there's very little room to make major mistakes or to waste, because that's your money that you're wasting. And if we cannot do it the best, if we cannot show up in ways that people expect, then we should give that money to somebody else. And I tell people don't be miserable. If you don't like working here, you don't like the here, you don't like the work, you don't like the commute, you don't like any of that stuff, oh my gosh, why are you spending your life doing something you don't like Like? Go be happy. Chris: That's so true, right? I mean I think we talk about it. I know in our organization is, if you don't connect with our mission and our passion, it's okay. You know it doesn't make you a bad person, it just means there's a different organization for you where you're going to be happier. And then you should go find that, because we want the people that if they connect with that mission and passion of our organization, then they're going to be living their best self, which opens them up to serve our clients and each other to their fullest potential. Right. Kelly: And I also think we try to be very or I've always tried to be. I'm not interested in telling you how to do your job because you don't want kelly young's opinion of how to do your job. You want your own opinion. I hired somebody who's smart and talented and knows how to do that and you don't want my limited vision of that. But when people also say, well, I don't like to be micromanaged, I'm like, well, I'd be interested in why people feel like they have to micromanage you. So if you are showing up to work and over-communicating and letting people know, I shouldn't have to do that, but I will if you're not able to do that, because I still need to know what's happening. So I often turn some of those things that people say back on them, just so a little self-awareness, and help them understand, because you will not like working for a CEO who will say, who will call you and be like, why does this number not match this number? And it's not because I don't trust you, it's that I need the number to make sense, because I'm about to go tell a bunch of people this number. So it's interesting. I actually really love building culture. I think I do a good job of creating enough openness that people feel like they can participate if they choose to. Chris: Well, you know, one of the things I think has been written a lot about and it's hard, it's a hard skill for some leaders to get to, but you learn so much by, rather than telling is asking questions. And you know, like you said, turn it around on them and ask the questions and then, a lot of times, as they are forced to answer those questions, they realize where to go. Kelly: Yeah, and it's funny because there's a new book out by the gentleman who wrote Sapiens and his new book is called Nexus and I heard him in an interview and I thought this was really interesting because I do think this is an issue with the workplace and maybe some generational conflict. He talks about information and not that. This is new. Talks about information and not. This is new. But information is not truth and part of the problem is that we tend to try to over inform and over educate to get to truth and neither one of those things will actually get you there, because truth is costly, it takes time, it takes energy and I do think we're in an overload of informing people as though that will change or grow somebody's understanding, when really all it did was add more information, not deeper truth. So, you know, I just find that a fascinating and I thought about it in terms of work we do, because I think one of the things the coalition has always done has been a truth teller and in that truth telling right now we're in huge inundation of information because we're going through a lot of change. How do we settle back into our truth? Chris: Interesting, yeah, okay, so you mentioned this and what I can't wait to hear more about. May not have time on this podcast, but your mean speech. You talked about the mistakes and sharing mistakes you made in the learning. And you know, I don't know if you listened to one of these before, but I love asking people you know, tell us about a setback, a mistake you made, but then how you learn from it. Right, and I think you know to your point, when you share those stories with the people in your organization, it humanizes you and allows for that culture of learning, take risk and it's okay to fail, because that's how we learn and get better. So let's you know, can you share an example that either comes out of the mean speech or something else? You know a Kelly Young mistake and how it made Kelly Young better? Kelly: Yeah, and this one was interesting and I think it sort of aligns in particular with people who work directly with people and I was a very benevolent leader at one point. So this is much more of a self-awareness mistake than an actual business mistake, but I think it's important and I was. It's all about, you know, serving, you know, women. Everybody had on their desk, on their computers what did I do today to end domestic or sexual violence? And I was all gung-ho and and I, you know, I was there for the work and, as I said, and we got a new CEO and I thought that I should have been tapped for the CEO position and nobody asked me. And so I was very self-righteous in my understanding of, first of all, well, if you don't let anybody know you're interested, they probably won't ask you. But second of all, just because you've done this job doesn't mean you're actually ready to do that job. And so I was awful. I mean I was awful for about six weeks and I made everybody hear my pain and how hard it was on me and all this kind of stuff. The hardest lesson to learn in all that was that for all my bravado and my great messaging and whatnot, I really wasn't there for the mission in that moment. I was really there for my ego. And if we are not self-aware enough to understand when you are using ego to sell people on a version of yourself that you think will make them like you better or follow you better, but it's not true because you haven't done enough self-work, I spent six weeks wasting time, I mean, and I find I left, I went and found a different job and that was the best thing for me to do. But in that one moment when you realize that you are a liar to yourself and to other people and you decide you're not going to do that anymore Best moment of my professional career, because I never made a decision ever again around benevolence or around pretending that rhetoric was more important than what I really could show up and do. So I didn't like that and I hate sharing that story because it sounds awful. I sound like a horrible human being, but I think most of us have that moment. Chris: What a powerful story. No, I mean I think to your point. I mean it doesn't make you powerful, think to your point. I mean it doesn't make you powerful, a horrible person. But that's a difficult thing for us as humans to face right, to really look in the mirror that deeply and call ourselves out and, more importantly then, actually do what it takes to change. Kelly: Yeah, and for me, what I learned is that if I really want to lead, lead it is not pretending you can't play at leading, it is a commitment. It's hard, it's lonely, it's complex and you have to build in ways where your mind just stops thinking, because I'm a little bit of an overthinker and you have to do that self-awareness all the time. You're in check, all the time when you're a leader. Chris: Yeah, everyone's watching, right. So that's, I mean, I think, to your point where basically you can't fake it. It's because so many people are watching every move, whether it's internal to your organization or external partners, you'll get exposed really fast. Kelly: Right, and then you lose their trust so they won't show up for you when you need them to and at the end of the day, whatever it is that you because I think about innovators and I have a gentleman I know who helped work on some incubation around medical devices. Well, some people are like, oh well, you work with homeless and it must be so rewarding. I'm like I actually think it'd be pretty cool to make medical devices that make people's lives better. I don't have that talent, but you know. So it doesn't really matter what is at the center of your passion and your mission. I worry when we tell people you know you fake it till you make it, because in leadership you really can't do that. You need to sit down and learn it. You need to know your truth. It goes back to that. You can inform me about all these things about being a leader, but until I know the truth about being a leader, I'm going to waste time and I'm a hyper efficiency person. So for me it's like if I can do it in two steps, I'd rather do that than 15. So I really don't faking. It would be way too easy for me to just practice all the time, so I have to not allow myself some of those, those things, cause I yeah, I'd rather be out riding my bike, only because it's only because it's been a long week. Chris: I get you, I get you. You need that release too. Finding a way to you know release as a leader is equally as important. Yes absolutely so. Let's turn the conversation back around to homelessness Talk a little bit. You know, maybe, where we are, but what the future looks like. You've mentioned a couple of times, you know, facing new challenges in this world of homeless response. Let's talk a little bit about that. I know we have, you know, world Homeless Day coming up. You know, share a little bit about that, but I just wanted you know our listeners to know a little bit about you know, maybe, how they can get involved and how they can help in this issue. Kelly: Yeah, I think you know. I think we have done such an incredible job of getting people into some type of permanent solution, so we're in decent shape there. But it was, as the Chronicle said, it's duct tape and determination. When you have to rely on funding that comes from disasters or pandemics, that is a terrible planning model and not very fiscally sound. So I think a couple of things for us. One is broadening our perspective in this phase we're kind of calling it phase four, and I think it's important to realize that systems should always have phases or pivot points, because systems die when they don't read themselves and make sure they're on the right track is kind of an overhaul of our data. What is our data telling us, but what is it, more importantly, not telling us? What do we need to know about who is still on the street? What do we need to know about our funding sources and what's available? We know that we're gonna run out of funding because of COVID by 2025. I'm going to make the argument over and over again that we are not. Homelessness used to be able to be resolved by people coming together and kind of helping a family or helping an individual. We've had so many other systems end up feeding people into homelessness, that we actually need a system response, and that includes system funding, which typically aligns with some type of consistent, regular money that's funding the system, so we never have to be out of balance again, and that's one of the things we're working on. The second is we've actually been going out and doing community mapping to help people understand community is not given, it's built. So if you want a different kind of community that you live in, you're going to have to get engaged and that's one of the ways that you can volunteer. So maybe you have a church, that you're in a neighborhood that people get fed, but the food containers and stuff get left all over the street or there's whatever. Well, you could complain about the trash, or you could complain the city doesn't pick up the trash, or you all could start a walking group. Everybody needs exercise, so you have choices in how you decide to engage in your community. I do think becoming much more aware and understanding how the system works and doesn't work resolves a lot of people's frustration about seeing somebody on the street. We also have to have much better interventions for individuals who are severely mentally ill and have substance use issues. We have housed a lot of people who apartments and appointments works really well, for we have some individuals who just cannot make good decisions to care for themselves, and we're going to have to address that and I think that's one of those things where people don't understand you said this earlier right now the way the homeless response system is set up. Chris: The federal dollars are all housing, coming from the housing side, and yet what we face and what you know, you and and your team know that we face is a very severe mental illness issue and kind of what's the hardest to serve, yet no dollars from the mental health side of the equation. Kelly: Right and certainly not at the level it needs to be in. Including residential care, additional beds and substance use is even far worse funded and I understand people are like, well, I don't want to. You know that's. People just need to figure out how to get their lives together, I agree. But you're making a choice then. You're either deciding we're not going to help somebody so they'll get where you want them to go, or you'll leave them on the street so they won't go where they're going to go. So you know again, these are choices that we are making. I am so happy to live in a city and a county that is as generous as it is. I mean, houston is one of the, I think, premier cities for the purpose of the fact that people actually care, kind, friendly, smart, innovative. I think the other piece for us is really having to get more upstream. That 40% scares me. That is devastating to a system you want to right-size or actually shrink Like. I don't want you to have me on a call 10 years from now and I've grown the homeless response system by three sizes Like somebody should fire me. That's not-. Chris: Work yourself out of a job. Kelly: Right, exactly, and so right-sizing ours, with the right amount of funding and then really pushing upstream to figure out how healthcare doesn't release people back onto the street with serious illnesses. Re-entry that's dealt with. Somebody who's hit a hard time can quickly get rehoused because we're helping for a few months. That's just being good neighbors, right. So I think that's pretty easy for people. We have a lot of work ahead of us, but I have the world's smartest team and the people who built this system and have watched over it the last 12 years. We're only gonna figure out the right and have watched over it the last 12 years. You know we're only going to figure out the right and the best path with the resources and the influence we have coming forward. Chris: Very good. Yeah, I think the future is very bright with the right people. So you know this is, you know, fundamentally, it's a business podcast and one of the things that you know, some of the data that I love to share is I always tell people, you know, when it comes to this homeless response and taking care of our neighbors who have fallen on this, you know, unfortunate time, there's a compassionate side, you know, which is, you know, obvious. But there's also a business side and some people you know connect on that and just share the numbers on the cost it takes to, you know, house someone on an annual basis versus if they're left on the street and use our public health system, et cetera. Because to me, if business owners are listening and thinking about this, the investment in the homeless response system is a no-brainer. Kelly: Right when we look at the numbers and I'm going to add for inflation, because we'll probably be in a recession next year is what I understand. Of course, they say that every year and I'm like, really at some point you know we're either or we're not, I don't know. No reason to even use the R word, right? Can we come up with something else, because this feels like a whole new thing. But I think you know you're talking about to house somebody and to make sure that they have access to the current systems that they need. Through their appointments and I always stress this they do not get to live for free, there is no free housing. They have to pay a percentage of their income or their benefits 30%, like the rest of us, and so for that it's $19,000 to $25,000 a year, not an overextensive amount of money you can go up to, depending on how often somebody uses other services up to $250,000 for them to stay on the street, and the reason for that is that every time you call the police on them, you have to count that money. Every time they go into an emergency room, you have to count all of that money. It's not to say they won't use those services, but they'll use them appropriately, which right sizes the dollars in the systems. So, right now, all this money. People are saying, well, we don't have the money. I'm like we do, we're systems. So right now, all this money. People are saying, well, we don't have the money. Chris: I'm like we do, we're just it's in the wrong bucket. Kelly: That's right. And if we moved it over and we agreed to just pay this for the next three years? I mean, if you're willing to pay a hundred dollars a month for charity, why are you not willing to pay one percent on your beer or your vaping? You don't even see that and get it to the point where you see the reduction in the rest of your costs and then you actually feel the relief on the tax end. You know, because you're not paying more and more on those parts of it. Wayne Young with the mental health services demonstrates that from a diversion point, for people with severe mental health to get into care is a one to $5 save. So it's $1 for him to do. It costs $5 for them to stay on the street, so economically it makes no sense. It's not cheaper. You're avoiding the problem instead of solving it and from any good business standpoint that's not what you do. You define the problem, you solve the problem. Chris: Right To summarize right I mean support the housing homeless response system. It's roughly $19,000 to $25,000 a year to do it and help us move people into housing and off the street. Leave them on the street. You're looking at annual cost of $100,000 to $250,000 to our system. Kelly: Right. And just the burnout rate of everybody trying to solve that and the trauma and the individual. I'm always going to add compassion to the dollars. But if you actually really care about that individual instead of just want them off the individual, I'm always going to add compassion to the dollars. But you know, if you actually really care about that individual instead of just want them off the street, I don't actually even care. You can have either of those opinions, doesn't matter to me. But it's going to be cheaper, more efficient, more effective if you buy into the response system and ensure that we have the right interventions for those people and don't have to wait till something terrible happens to be able to do this again. Chris: And ultimately all of that will make our community better and stronger. Kelly: Absolutely, absolutely. When you look at the best player on a team, you also have to look at the one who's struggling. And you bring up the one who's struggling. You spend less time on the one who's already figured it all out. But if you're in a team, you're in a community, you're looking at who's struggling and how do we get them to some level of consistency in their lives or whatever. Otherwise, we're always going to have to play down to that denominator. Chris: Kelly, this has been a fascinating conversation. Thank you Really appreciated your thoughts and sharing those with our listeners. I want to turn it to a little bit more of a fun, lighter side before we wrap up. Excellent, what was your? You may have said this earlier, cause you mentioned something when you were a teenager. What was your first job? Kelly: My first job was working at an ice cream store called Farrell's. I grew up in the Pacific Northwest and every time it was somebody's birthday you had to bang out the drum. You had to slide it over your head and bang out the drum, and they get this big thing called the zoo, which was like 150 scoops of ice cream and you had to wear this horrifying outfit with one of those straw hats that never sits on my head Cause I'm a little pointed, I think, and I you learn very quickly and this is why I love anybody who's ever done food service and was successful in it and why I have an affinity for them. You learn very quickly how difficult it is to run restaurants on margin, but also nobody wanted to do that and had to do it every single time. So that was my first real paying job that I got to check. Chris: Gotcha, yeah, and I knew you weren't from Texas and grew up in the Northwest, but you've been here long enough to be able to answer this question. Do you prefer Tex-Mex or barbecue? Kelly: Well, that's a good question. That's hard to decide, that's hard to define. I probably eat Tex-Mex more often, but I prefer barbecue, okay. Chris: Unique answer. Kelly: Yeah, I like it. That's an and yes answer. That's an improv technique. Very politically motivated or correct answer I just don't go to barbecue as much, but if I really sat down and thought about it, I prefer it. I just don't, for whatever reason, don't get there, which seems weird. Chris: Very good. Well, kelly. Thanks again for taking the time. This has been a great conversation. I'm looking forward to getting this out on all the social media. I hope people will listen and learn more about what is going on in our homeless response system. Kelly: Oh well, thank you so much for having me. I mean, I would do anything for you. I think you're amazing, so appreciate your time this morning. All right, talk with you later. Special Guest: Kelly Young.

The End of Tourism
S5 #9 | We Will Dance With Stillness w/ Craig Slee

The End of Tourism

Play Episode Listen Later Sep 17, 2024 60:31


On this episode, my guest is Craig Slee, a disabled writer, consultant and theorist dealing with mythology, folklore, magic and culture, exploring life through the lens of landscape, disability and fugitive embodiments.He has contributed essays and poetry focusing on the numinous and disability to various anthologies including The Dark Mountain Journal. Craig has also co-facilitated multiple seminar series at the Dresden Academy for Fine Arts, regarding ableism in the arts, as well as how ableism affects our relationship to space. In 2023 he was one of the speakers at the World Futures Studies Federation 50th Anniversary Conference, introducing the concept of (Dis)abling Futures. Craig resides in the northwest of England.Show NotesCornwall and the Seasons Who Gets to Decide What it Means to Know a Place?The Folding in of Identity to TourismA Question of Productive vs Generative AbilityAbleism and AttentionFinger Bending and the Freedom of MovementRedefining and Remembering Other Forms of MovementWhat is Stillness?The Dance of MountainsObeying LimitsHomeworkCold Albion (Craig's Blog)Goetic Atavisms (Hadean Press)Craig's Blue Sky Page | Facebook PageTranscriptChris: Welcome to the End of Tourism, Craig. Craig: Thank you for having me. Chris: Yes, it's great to be able to speak with you today. I've been ruminating for a couple of years now as to the themes that we might speak of. And I was introduced to you via a mutual friend and have come closer to your work via the Emergence Network's online gathering, We Will Dance With Mountains, in the last quarter of 2023.And so, to begin, I'd like to ask you first where you find yourself today and what the world looks like for you, where you are. Craig: Where I find myself today is by the canal in my flat, looking out the window, just as evenings coming in, in the northwest of England, in Lancaster, and it's chilly here which is actually a good thing, I guess, these days.Chris: Perhaps I could ask you to elaborate a little bit on what Lancaster looks like, but I know that, you know, from our conversations previous that you grew up [00:01:00] in Cornwall, a place that was previously, a town, an area devoted to fishing and mining, and from what you've told me, it's also become a massive tourist trap that you know, from the little that I've seen online, that the area receives around 5 million visitors a year, and tourism makes up about a quarter of the local economy.So I'm curious what you've seen change there and what do you think has happened to Cornwall and its people as a result and maybe there's something in there as well regarding Lancaster. Craig: Yeah, so I should emphasize this. I was born in Cornwall. My family has been lived down there for many many generations anyway and my father's side of the family actually, at various points, worked in the tourist trade as well before they went on to other things.And, [00:02:00] yeah, I mean, I left because, frankly, there was no jobs that weren't tourism. I came to Lancaster to study because one, I have a physical disability which means that Cornwall is a very rural area, so you need to drive everywhere, and that's fine, I drove at that point, but for good or ill, a more urban center was better for me later in life as I left.But the way that it shifted, even in the years when I was growing up, was that, you know, essentially was a rural area where nothing really happened socially or culturally that much until the summer seasons. So, you were very, very aware of the seasons in terms of, you'd have visitors [00:03:00] starting, and that was when the town would wake up, and then it was kind of dead for the rest of the year, so it was very much one of those things where the tourist trade has actually made me more aware of human rhythms in the natural world than perhaps I would have been, because it's so based on seasonal stuff.And just looking at the way the infrastructure because a lot of the towns and areas, they boomed a little bit well, quite a lot in certain areas with the tin mining of the 19th century. But a lot of the architecture and things like that was 19th century. So you had small villages and slightly larger towns, and they have very, well, I guess some people, if they were tourists, would call "quaint, narrow streets."And when you have that many visitors, in the summer, you can't get down the streets. [00:04:00] You can't drive it because it's full of people walking. You know, there's an interesting anecdote I'd like to recount of when my father, he was a vicar, he was a priest, moved to a new area he would go to the local pub and all the locals would greet him as the priest and be like, very polite.And then when it would come out that my dad was actually a local, that he was born down there and part of the family, everybody would relax. And there was this real sort of strange thing where people came and stayed because it was a lovely area, but there was still that whole issue with second homes and certainly keeping an eye on things from a distance here during the pandemic when people left cities during the pandemic, they went down there amongst places in Britain.And that meant that, [00:05:00] literally, there were no houses for newly starting teachers, you know, teachers who had got jobs and were moving down there, couldn't find places to live because during the 2020 and sort of 2022 period, everything was just opening up either as Airbnb because there was this influx from the cities to the more rural areas because it was supposedly safer.You know, and I feel like that's a reflex that is really interesting because most people think of it as, oh, "a tourist area," people go there for leisure, they go there to relax and get away from their lives, which is true, but under a stressful situation like a pandemic, people also flee to beautiful quotes isolated areas, so there's that real sense of pressure, I think and this idea that we weren't entirely sure, growing up, [00:06:00] whether we would have a place to live because a lot of the housing was taken up by people with second homes. And plenty of people I went to school with because it's a surfing area took the knowledge that they learned in the tourism trade, and actually left and went to Australia. And they live on the Gold Coast now. So it's this self perpetuating thing, you know? Chris: Well, that leads me to my next question, which kind of centers around belonging and being rooted and learning to root, maybe even becoming a neighbor or some might say a citizen of a place.And with tourism or a touristic worldview, we seem to be largely stunted in our ability to know a place, to become part of that place in any significant or enduring sense of the word. And so, I'm curious what your thoughts are on what it means to know a place, [00:07:00] and perhaps on the often mad rush to say I know a place for the sake of social capital, you know, given the context of the kind of relative difficulties that one might incur, or in a place like Cornwall, and the relative degree of exile that forces people out.What do you think it means to know a place in the context of all of these economic pressures denying us that possibility, or at least making it really, really difficult. Craig: I think we have a real problem in modernity with the idea of knowing as a sense of capture, right? So if I know you, I have this boundary of this shape, this outline of Chris, right, that I can hold, that I can grasp. And I think sometimes when we say, "oh, I know a place," or, "oh, I know a person" there's no concept of the [00:08:00] ongoing relationality. You know, you capture the image and then you keep it. And it's a whole construct of extractive knowledge that really, I think, comes down to the idea that the humans are the ones who get to decide what a place is, right?So. I could say in the standard sense, "Oh, I know Cornwall because I, you know, I grew up there for nearly 20 years." My family has been there since about the 1500s. You know, "I know a place, it's in my bones." Yada yada yada. All the metaphors you want to use. But the fact of the matter is, the place itself influences me more than I influence it. So there's this strange sense of belonging in which modernity [00:09:00] says "I belong" or "it belongs to me" rather than perhaps the place has extended hospitality to me and allowed me to grow and I could live/work in a place for 30 years and never know it because we're not comfortable as a culture with the idea of going, "I don't know this place."And it's a variety. It's always changing. And I think about all the times I used to watch the sea and talk to folks whose parents were fishermen or lifeboatmen, and they'd be like, "Yeah, we know the waters, but the waters can change. We know roughly what they do under certain conditions, but we don't know them completely, because they can always surprise us."And So, when somebody says, "oh, you're from Cornwall, you're a Cornishman," and all that sense of identity, [00:10:00] I'm like, "yeah, but that's, that's both really fluid for me, because, you know, there's a lot of history." Is it the tourist world of the 20th and 21st century, or is it the farming and the mining that goes back to the Neolithic?How we relate to a place purely in a modern sense isn't, to my mind anyway, the only way to conceive of belonging because, even though I'm now 300 miles away from there, I have its isotopes, its minerals from drinking the water in my teeth, you know. So, on some level, the idea that you have to be in a place also to belong to a place is something that I'm curious about because, there's this whole notion, [00:11:00] "you're only in the place and you've been in a place for this long and that means you know it and you're local." Whereas growing up, there was this sort of weird thing where it was like, "yeah, you might have been here 30 years and everybody knows you, but you're not a local." Right? You still belong, but there was this other category of " you're not local or something like that."And so it's complicated, but I really do, for my personal take, tend to look at it as a, the landscape, or wherever it is, influences my sense of belonging in a non human context, or more than human context, if that makes sense. Chris: Hmm. Yeah, there's so much there. Yeah. I mean, I'm also, in the context of identity, also wondering in what ways, not only has the tourism industry shaped one's identity of being local, which [00:12:00] is, I think, a huge issue in over touristed places in the last, you know, 10 or 20 years, as identity politics rises into the mainstream, and but then also not just the industry and the interaction with foreigners or, or guests, or tourists, but the way in which the image of that place is crafted through, often, ministries of culture or heritage, you know, so you could grow up in a place that isn't necessarily overly touristed or anything like that. But then have your identity crafted by these ideas of culture or heritage that the government's, federal and otherwise, have placed on people.Craig: And especially because where I come from, Cornwall, actually had its own language, which died out, which was on the verge of dying out in the 19th century. And slowly there are more speakers of it now. And you go back there now and you'll find, [00:13:00] even when I was growing up it wasn't so prevalent, but you'll find a lot of the signs for the street signs will have the English and the Cornish.So that's where the government has embraced this identity and enhanced it after people have been saying, you know, "this is a language we've rebuilt it. It's cousin to Welsh and Breton. We should use it. It's part of our identity and it's got folded into that." And so the infrastructure itself is now been part of that. You know, those very same streets have a name that wasn't known for like, 50, 60, maybe to 80 years, and suddenly people are now deliberately using the old names in non English languages because of that. And it's very strange because, especially in the UK, what with all [00:14:00] of Brexit and all that, there is a very weird sense wherein the rest of England, i. e. North and London and those sort of areas don't understand because Cornwall was a peripheral area and much like Wales, there's a lot of distrust of central government. Hmm. So, you've got this whole construction of a personal identity of nobody actually really understands what goes on outside. Either they're incomers, either they're emmets. You know, which "emmets" is the old English for "ants." Referring to tourists as ants in a kind of, yeah, they get everywhere. And the whole notion of who we are is always constructed. But in that case, going away and coming back to visit, I'm going, "Well that street didn't [00:15:00] have that label on it when I left. But it does now. And so in a certain sense it's the same place, but it's got this overlay of somewhere different that really enhances that sense of layers for me of "which Cornwall?" "Which of any of these places are we talking about?"Like you say, is it the one you see on a picture postcard or an Instagram or is it the ones who sat there as kids going, right, 'there's nothing to do, let's go and drink in a field?' You know and all of these things can co exist.Chris: Hmm, right. Yeah, I just interviewed a friend of mine, Christos Galanis, who did his PhD on hillwalkers, as well as homecomers in the Scottish Highlands, so people who spend their weekends climbing, summiting the Highland Mountains, and also the Canadian or Americans who travel to Scotland on heritage trips or ancestral [00:16:00] journeys. And he mentioned how in the Highlands that the governments have placed the original Gaelic place names on all of the the signs there, whether you're entering a village or perhaps on the street signs as well.And that he said that something like "only three percent of the of the people in Scotland actually speak, speak Gaelic," so they see the sign, they see the name, the vast majority of people, and they have no idea what it means. And I also remember the last time I was in Toronto, which is where I'm from originally, or where I grew up.And my family grew up in the east end of town, and the main thoroughfare in the east end of town is largely referred to as "Greek Town." You know, when I was a kid it was certainly Greek Town. The Greek letters, the Greek alphabet names as well as the English names of the street signs in that area.But it's much, much, much less Greek than it was 25 years ago, right? So again, [00:17:00] this question of like, is that to some extent trying to solidify the kind of cultural geography of a place. That people come to that street and that neighborhood because they want to experience Greekness in its diasporic kind of context.And yet, so many of those people, so many of those families have moved on or moved along or become more Canadian in their own sense of the word, so. Craig: Yeah. It's very strange as well because things like that attract... there's a loop obviously, because you'll get people coming to experience the greekness or the cornishes, and people will be like, oh, we should open a business that will enhance the greekness or the Cornish of the place, and that will draw, and it just becomes this thing and, yeah.Yeah, it's very strange. And I would totally agree with you on that one. Chris: Yeah. [00:18:00] Yeah. Until like a Greek person from Greece or a Cornish grandmother comes into town and says like, what? No, that's not Yeah. Oh, yeah. So I'd like to shift the conversation, Craig, a little bit towards ableism, and begin with this question that comes from our dear mutual friend Aerin and who admits that she's happily robbed it directly from Fiona Kumari Campbell.Yes. So, you might have heard this question before but she she felt the need to kind of pose it anew and and so the question is this. How does disability productively color our lives and Aerin wanted to ask it, to modify it slightly and ask, how does disability generatively or creatively color our lives? Craig: I can't speak to anybody's life other than my own really. But I would say that for me disability has, [00:19:00] one, given me a real sort of ability to look at the world and go, "you guys think this is how everything works and it clearly doesn't."You know, it has given me a generative gift of going, "hold on, what people think of the default really isn't the default, because I was never born as the default, and so I've had to find my own way of relating to the world" and that means that anybody goes anytime anybody goes "Oh, well, everybody knows..." or "the only way to do it is this?" I am always going "are you absolutely sure about that?" You know, "are you absolutely sure that what you're looking at or experiencing or noticing is only perceivable in one way, it's only ever [00:20:00] frameable, in one context?" But also this idea for me that disability is simply a fact.It's not good or bad. It is a thing that exists in the world and ableism is essentially the urge to measure against the vast field of disability and impairment and go, "We don't want that. That's the worst thing to be. So, we will strive to not be that." As Fiona Kumari Campbell would say, " It sets up a ranking and notification and prioritization of sentient life."So, this is why we, to a certain extent, we have such a obsession with youth culture. Young, healthy, fit folks are in some way better than the elderly. Oh god, nobody wants [00:21:00] to get old cause, if you're of white extraction, "oh, they'll probably stick you in a home."Nobody wants to conceive of the idea that actually you can have a generative and intimate relationship with somebody, not necessarily a romantic one, but a deep, deep friendship that also involves, frankly to put it crudely, perhaps wiping somebody's arse, right? There's this whole notion of messiness and failure and why Aerin reworded it from "productive" to "generative" is that whole idea of being productive, of having capitalist use, to produce, to make for purposes. And for me, disability and the field of disability in which I exist says "I exist and I don't have to be productive." it really [00:22:00] challenges the capitalist framework for me. And also, ableism, because it's set up to rank things like speed, mobility, all kinds of things like that, having a disability where you're sitting there going, but there are other ways to do this. There are other ways to exist. To notice the way our bodies move that are mostly ignored in the sense of "yeah, we don't pay attention to our posture or our muscle structure or what our guts are doing because we're all already forced along to the next thing.You know, we're already touring from, "okay, I've got up in the morning. Next thing I've got to do is have breakfast," right? And if you can easily shift between those stages, so you get up in the morning, start your breakfast, put your clothes on easily. [00:23:00] You don't think about it as much, but if it takes you 10, 20 minutes to even get out of bed and you have to do specific things, maybe exercises, maybe things like that, the whole process thickens.And in a sense, for me, it's an antithesis to escapism because there are things you cannot escape. There are things you have to deal with. And because there are things you have to deal with, you have to pay attention to them more. And that means the most ordinary mundane thing becomes or can become, if you're willing to gently sense it, a lot richer.So, this is one of those interesting things where if people want to go places to experience new things, Okay, that's a whole issue that you've obviously talked about throughout the podcast, but there is a certain sense in [00:24:00] which we don't even know where we started from. We've not explored our own bodies.I mean, I wrote a piece in 2020 when all the lockdowns hit that got shared around various bits of the internet and I think even in the newspaper at one point in, but I got a request to syndicate it, of how to exist when you're stuck in your house. You know, what do you do to "keep," in inverted commas, "sane," which, of course, is an ableist framework, but what do you do to stop yourself from losing mental health? How do you function? And I broke it down and I sort of made practical suggestions of, this is how I, as somebody that doesn't actually have a, quotes, "normal life," and spends a lot of his time unable to travel or go out much, stops myself from feeling isolated, [00:25:00] because I've ended up having to learn to explore what some might regard as a limited domain.But to me, that limited area, that limited domain has given me this sense of vastness that's, you know, I can't remember which philosopher it is, but there is a philosopher who basically says, I think it is a Camus, who says "you just need to reopen when you're in your room and the whole world will reveal itself to you."And when you don't have a choice, when you're stuck in chronic pain, or sickness, or something like that and you have to work out what to do with your limited energy, to embrace life, there becomes a sort of challenge, to go, "okay, how can I feel like things are enriching? How can I, almost metabolize the things that other people would reject.⌘ Chris Christou ⌘ is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.You know, [00:26:00] because disability is so "Oh, it's so sad he's disabled. Or we've got the cure for this and that. And we've got to cure it." And it's not really about ameliorating suffering. Which is a good thing. It's an analoid good to ameliorate any form of suffering. But there is this sense that the only way to perceive the world is through a so called "non disabled" abled body.The only way to experience a rich world, and again, I'm not knocking people who do a lot of travelling per se, but the only way to experience the world is to go on long journeys, and backpack and explore you know, new ways of thinking. That's great. And I'm not saying you can do exactly the same at home, but you can also become radically hospitable to yourself and to the environment in which you find [00:27:00] yourself.And that opens a whole lot of doors that I think I would regard as generatively colouring life and revealing life. In a way that was possibly occluded before. Chris: Yeah, I mean, so much of what I've come to in the research around tourism and hypermobility is this question of limits.And that certainly comes up in other themes, in other contexts. But not just the limits to one's place. Like, where does your place end? But also the limits of the human body. And, when we talk about freedom generally in the West, or in, in the context of modernity, it's so often pinned or underpinned via the freedom of movement, in part, because I know you're coming from the other side of the Atlantic, but certainly in, in this part of the [00:28:00] world, in the Americas and especially North America, freedom is understood as freedom of movement because that's in part how, the states and, and the nation's existences are justified.And so, I would just ask you what you think of that in the context of freedom being, of course a synonym for liberation. And how so many of our western notions of freedom are attached to movement and have. To a large degree become glorified in the hyper mobility of our times.Craig: I would agree with you. I think it was always there because of the colonial urge, but I think North American notions of freedom have, through a certain cultural hegemony, filtered back. You get it in the media, even Star Trek, you know, the final frontier, you know. Things like that. Or wide open spaces. There's still this notion of, freedom to move, room to live. It has its own European context and [00:29:00] horrors, unfortunately.But also, I think the notion of freedom as freedom to move. There is a question there for me, because I'm not sure we know what we're doing when we move. Right? And one of the questions that always was raised for me is, if I raise my finger, as I'm doing now, and I bend it so it's 90 degrees, how did I do that?What did I do? Well, science would say, okay, you used all your tendons and so on and so forth, and I'm like, yeah, "okay, those are nice descriptors. But what did I actually do?" Where's the connection between the impulse and the urge to bend my finger? Right. I don't know what I did there. I just thought I'm gonna bend my finger and the [00:30:00] finger bent But there's a whole bunch of stuff going on.So when I'm thinking about freedom of movement First the question is, "freedom to move in what way?" Right? So the the classic example is, in perhaps North America and and English speaking countries is "to go where I want, when I want, with none to to gainsay me, none to say you can't go there," which has been problematized thanks to the history of enclosure of land and capture by state and political actors, but also this notion that if you get into a city and you can go and people go, "Oh, I'm free to go wherever I want."I always sit there and I'm going, "yes, but you can go wherever you want, but if a place has stairs and no lift..." right? I [00:31:00] can't go there. So do I have less freedom? Well, according to the traditional notions of freedom, yes. I am less free. When I grew up, as an example in the UK I went to America when I was about four or five, and I was absolutely stunned by the amount of public toilets that had a disabled toilet.Right? Because virtually nowhere where I grew up at that point had a disabled toilet. This was due to the fact that the U. S. has a disability rights movement that was slightly ahead of the U. K. 's. So I was freer to go about my holiday in the U. S. than I was technically at home. I couldn't go certain places because there weren't toilets, or there weren't ramps, because that had not been legalized. You know, there'd been no legislation. In the UK, there was [00:32:00] no disability legislation until 1995. You know, so technically, I was born in 1981. I had no specific extra legal rights that I needed for 14 years. Now some would say, "oh, that, you've got freedom there... the law has given you freedom.It's giving you the ability to move, but it's only given me the ability to move in approved ways, right? And so every single time somebody talks about room to move, my query is always, okay. "One, as I said, move in what way? And two, who taught you what method of movement is approved or disproved?" So, particularly in Europe, we have folks like the Romani, the Irish travellers, [00:33:00] even the so called New Age travellers, right, who are nomadic folks.And despite this obsession with freedom, the idea that people are nomadic, are shiftless and rootless, still exists. Yes, a degree. The degree of privilege, the degree that I could be, quote, "more confident going into public spaces." And you'll see this in American history and throughout European history as well.And when I was talking about the nomadic folks, I was saying, you know, there are only certain people who are allowed to move in certain ways, to travel in certain ways that are approved. In similar ways with disability there were only certain kinds of people who were allowed into public spaces.They might not have been legislated against in the mid twentieth century. They might have struck those off the books, but at [00:34:00] various points, at least in the US, if you look up the Chicago Ugly Laws, people who were regarded as vagrants or unsightly, were not allowed in public spaces. They could be jailed for that.It's not just loitering. It was very much anything that could give offense because they were physically disabled. Or, the idea that the physically disabled are more likely to be begging or doing things like that. That was all folded in. So, this notion of freedom as the ability to move and move in space.Despite the North American urge to be like, "well, nobody can tell me what to do." There's still a certain level of certain forms of movement are privileged or regarded as normal versus others. So, you know it's weird if you don't stay [00:35:00] in one place or perhaps, it's weird if you don't have a reason for your seasonal job, right?When I was a kid and a teenager... like I said, where I grew up was kind of known for surfing, right? And I met folks who would come from places like Australia and live in Volkswagen transporter vans and work in the seasonal hotels and then go surfing. And then sometimes in the winter they disappear off to Morocco.And you wouldn't see them for six months and they'd come back and there's all this kind of idea of Differing rhythms, which has really influenced my entire life because those folks, they were there there were hundreds of them you could see them parked on every road and I knew several of them very very well, but the fact of those seasonal rhythms, which weren't [00:36:00] approved. It wasn't approved that they didn't stay in one place and pay taxes. To some that might be, you know, "Oh, that's freedom! That's telling the government, I don't have to pay your taxes or I don't have to stay in one place and be a registered visible citizen. I can be a free spirit and go to Morocco whenever I want. But, the fact of it is, if you walked on the, on the roads, people would look at you funny, right?If you look at people who do long distance walking in areas that are drivable, I mean, especially I guess in North America, that's looked at as very, very, very strange, because you guys don't have the infrastructure. So, for me, it's this really strange notion that we're fixated on particular kinds of movement to do with agency and power, right?And we, we will say, "oh, [00:37:00] that's mobile, that's fast, that's quick, that's agile." And I'm always curious about what criteria we're using to say, "oh, that's fast, that's agile, that's nimble," when you look at the so called natural world, and you've got plants that are seemingly immobile, but they actually turn to the sun.You just don't notice it until you stick it on a stop motion camera. And then you're like, "wow, they move." But you could go past that plant every single day and be like, "yeah, it doesn't move. It's a plant. It just stays there." Right? Because our perception of what movement is and what is approved is based around one, what we're taught and two, what we see every day.But also three. What we can't notice unless we're forced to look at the same thing over and over again, right? [00:38:00] Because our tendency is to see one thing, think, "Oh, I know it. I've spotted it. I know what it is. I've identified it. It's fitted into my matrix of identity. I can move on now. It's all sorted." But the whole ethos, I guess, that I'm coming at iswhat if you don't know? What if you don't know? What if that microphone that I'm speaking into and you're speaking into it looks like a particular thing and you think you could describe a microphone to somebody but go down to say the flows of the electrons and it's a context issue. You know? And, and So, I'm interested in thinking about what are the contexts are in the room with us right now that we're not even paying any attention to, and not even in the room, in our own bodies, in our own language.Chris: Wow. Yeah, again, there's so much there. My [00:39:00] my thoughts just flew off into a million different directions. And I feel like it would probably take me a while to to gather them in.Craig: No problem. You do what you need to do. I mean, that's, that's the whole point. Chris: Yeah. So I had a queer crip travel writer named Bani Amor on the podcast in season three.And we were talking about the fallout and the consequences of the COVID 19 pandemic. And she said something like, you know, "the settler can't stay still. That the pandemic showed us that we can't stay still." In the context of that time that so many people who had been engaged in and who glorify or who simply have been taught to live a hyper mobile life, that there was this opportunity to question [00:40:00] that, to bring it into a different context.And I know a lot of people, couldn't necessarily leave their houses in the quote unquote lockdowns. But I don't think that wouldn't necessarily stop people from tending to or allowing themselves to witness the more than human world in that way. And so, my question is, assuming we have the opportunity, in some manner, in any manner, how do you think we might have our understandings of movements subverted, or at least challenged, by virtue of looking at the movement in the more than human world.Craig: Great question. I think one of the biggest notions, and I just want to return to that phrase, "the settler can't stay still." And really, agree with that, and so add to secondary things of what actually is stillness, right? We have [00:41:00] this idea of stillness as immobility, as, as, as perhaps staying in one place.Not moving, but actually, if we look at what we're doing when we're actually apparently still, there's still movement going on, right? There's still movement going on in our bodies. There's still a different kind of mobility going. And we're not the only ones, right? The more than human does this exactly as well.If you look at a rock, oh, you think a rock doesn't move? I mean, it doesn't move, but then you have erosion, right? Then you have the rain, and the way that particles are shaved off it, and it shifts. So, when we're thinking about outside, when we're thinking about... and when I say "more than [00:42:00] human," I'm not saying "better than human," I'm saying "exceeding the human," I just want to make that clear, it exceeds the boundaries of the human. Disability as mutual friend Bayo would define it is, I believe he said "it's a failure of power to contain itself." So, that's Bayo Akomolafe. And this notion that the world and the modern human flows through and beyond any sort of boundary, right? So, any outline we form is not immune in the sense of there's no boardwalk, right?A wall is not an untouchable upright edifice. It's actually touched and permeated, right? So everything in the more than human context interrelates and is, to a certain extent, degrees of [00:43:00] permeable. So, yeah, our cells keep certain things out, and let certain things in, but even the things they keep out, they're in contact with.They're relating to. Right? Because in the same way, with COVID 19 vaccine, people think, "oh, it's a vaccine. It's immunity, right? It'll stop me getting COVID. Or it'll stop me getting this, or stop me getting that." What it actually does is it has an interaction with your, the vaccine has an interaction with your immune system.There's a dialogue, there's a discussion, a call and response, which then engenders further responses in your body, right? So, there's constant relation that is ongoing. So, nothing is one and done, right? To borrow from Stefano Hani and Fred Moten No motion is ever completed, right? Nothing's [00:44:00] ever finished. It's not like we're gonna get off this and, and you'll be like, "oh, I've finished recording the podcast." Sure, you've hit the stop recording button, but the recording of the podcast is still ongoing. And there's this fundamental ongoingness, which is a product of the world.The world is worlding, right? And that means the most ordinary, mundane thing you can think of is ongoing. The mug I have right in front of me right now with tea in it. It's ceramic. It's been painted, but it's still ongoing, right? It still has the relation to the machines that shaped it. And it also has this ongoingness with the human history of pottery.Right? And people go, Oh, that's ridiculous. That's not practical. You know, "it's a mug," but I always [00:45:00] think. Isn't that just commodification? Like, is that not just saying it's a commodity, it doesn't have a story? Like, I don't want to get all Marxist here, but there's that real alienation from ongoingness and the fact that we also are ongoing attempts at relation. We're not even fixed identities. Our movements cannot be technically circumscribed because I have a disability which means I can't dance. Right? I use a wheelchair. I can't dance. I can't do the tango. Right? Okay. But everybody uses dance in a context of bopping to the music and doing all this thing and it's a bit like freedom. You know, everybody assumes that dance is a particular thing.But as Bayo and We Will Dance with Mountains, the course, the whole point of it being [00:46:00] called We Will Dance with Mountains is the fact that mountains don't dance like humans. Mountains dance like mountains. And the only way we spot how mountains dance is to actually pay attention to them and attempt to relate to them.We can't get out of our framework completely, but we can be open to say, what does our framework for a mountain miss about those massive landforms? What are we missing when we say a mountain doesn't move? And that's where you have references to indigenous and local stories that actually talk about these landforms, these places, these folklore places, as the living, moving beings that they actually are.Hmm. You know. Yeah, "okay, that stone circle over there was because a bunch of women were dancing on a [00:47:00] Sunday and in a Christian country, that's bad, so they got turned to stone," or in Scandinavia, "that rock there, it's actually a troll that got caught out in the sun." that these are living, ongoing beings and events, which it's not woo, it's actual or intellectual, I think.If you look at anything for long enough, you start to notice what's ongoing with it, even something that's solid and fixed. And that, to me, the gripping is the bending of the perception, right? That is queering, but crip-queering is that point where you have the restriction involved. People will talk about queer liberation, and yeah, we want crip liberation. That's cool. But if you think about crip liberation as, it might actually be the limits that bring us liberation.And then, if you track back [00:48:00] into mythologies long enough. You've got figures like Dionysus or then poetic gods who say, they're the ones that fetter you. They can bind you, but they can also set you free. And that is really interesting to me that a lot of these liberational figures also have a side that they can tie you up.And I don't just mean in a bondage sense. It's this notion that the two things, the two complexes are part of a whole thing, and you can't divide it into restricted and free and you can't escape. You can't pull a Harry Houdini from existence, which, to a certain extent, some people, when they go on holiday, engage in tourism, they're trying to escape for a little while, their other lives. But we all know you can't escape them. Mm-Hmm. But the inescapability of it is not bad. Right. By default, it's not [00:49:00] bad. It can be, but the assumption something is inescapable, just like, oh, something is disabling. Mm-Hmm. the assumption of good and bad. If you can hold that in abeyance and actually look at it for a second and go, Okay, what's going on here?Maybe our conceptions of this need reevaluating. Now the reason we don't do this on the regular, even in modernity, is because it takes a lot of effort and time to focus. And that's another benefit that I get as a disabled person, right? Because I can't use my time for a whole bunch of things that non disabled folks can.So I've got more time, I've got a different relationship to time and space, which means that I can sit and look at things with that differing relation to time and space, and be like "Huh, I never noticed that." And then I get to talk [00:50:00] about this stuff to folks like you, and people get surprised.And they're like, "you think about this all the day." I'm like, "no, I don't think about this. This is my life. This is how I live. This is my embrace of life, right? And this is my freedom to literally, Be like, " well, okay, my restrictions. How do they actually open me to the world?" And I'm not offering a prescription here, because everybody's different.But it strikes me that even the most nomadic person always carry stuff with them, right? And to borrow from Ursula K. Le Guin with her "Carrier Bag Story of Fiction," which Bayo talked about in We Will Dance The Mountains, the idea of what we're carrying is really interesting, but how often do we rummage in our own bags?Hmm. [00:51:00] Right? How often do we take off our backpacks and rummage just for the sake of it? Often we just look in the backpacks for something specific. Hmm. Right? Oh, I need a map. Oh, I need a chocolate bar. Oh, I need my, you know my iPad. We rarely stick our hands in and notice the way our clothing might shift around our fingers or the way, you know, the waterproofing is possibly coming off and means that the fabric has these different textures because we don't take the time and there's nothing wrong with that, but it's the fact that we don't have that relationship to time and space.And babies, kids do. It's why kids put things in their mouth. All those things where you're like, "Oh no, don't put that in your mouth, it's bad for you." They don't know that. But the whole point of putting it in their mouth and feeling it is to try and not [00:52:00] understand it, not get it.There's nothing there in a baby in its early function that says, "I must understand what that is." The understanding comes upon you through experience. But there's no bit, at least as far as I can work out, that's like, "I must understand what it is that I'm putting in my mouth."It's more like, "hmm, that tastes interesting, it has some interesting textures," and then your brain does all the work or your brain and your body mind do all the work, but the personhood isn't also doing all the work, just like the "I" of my body, right, my relationship with the "I", as in my sense of self, I have to expand that to my entire body, You know, because there's so much going on right now in this conversation that I'm not aware of, right?There's stuff going on in my room that I'm [00:53:00] not aware of, but it's going on now. And so I have to expand and that expansiveness also means I sometimes have to venture into realms of pain, right? Because I have chronic pain. And in order to fully experience that, sometimes I have to encounter that pain.I have to slow down and focus and go, "Oh, the chronic pain that I was mostly ignoring because just in the background, it suddenly leaped to the fore because I'm paying attention." Now, modernity says you shouldn't do that. You shouldn't do stuff that causes you pain. Understandable in a certain context, but If I didn't understand that the pain was also part of the experience and changes how I move, if I didn't understand that chronic pain changes how time stretches, then I wouldn't be where I am.So the more than human permeates the human in ways [00:54:00] that the human is either deliberately trained to deny or doesn't even know is going on and the pandemic basically was, in my eyes, the more than human kind of knocking on the door going you are not this completely hermetically sealed box, right? Your society is not a hermetically sealed box. Chris: Amen. Amen. I mean, could have gone in a lot of different directions, but here we are, at least being able to reflect on it in a good way, and I'm reminded, this notion of abeyance and attention and, and the expansion of the I.I'm reminded of this, this line from Simone Weil who said that "absolutely unmixed attention is prayer." And so, I think that it, something like that is worthy of the times we, we wish to live in and perhaps sometimes do. Craig: [00:55:00] Definitely.Chris: And so, you know, I wish we had more time, Craig really getting into some beautiful black holes there. But hopefully we get the opportunity to speak again sometime.Craig: I'd be, be happy to. Be happy to. Chris: And so before we depart, I'd just like to ask the kind of token question that always comes at the end of interviews, which is where can our listeners find your work?And I'm pretty sure you had a book that came out last year entitled, Goetic Atavisms, if I'm not mistaken. Craig: Yes, I did. So you can find me on my mostly moribund, but strange little blog at cold-albion.net. And you can also pick up the book, which is, to be clear, more of an occult angle on this, but it also brings in the disability angle directly from the publisher Hadean Press or you could get it from, you know, the Bezos Behemoth, if you really [00:56:00] wanted. I am also not really on social media as a project, but I'm also on you know Blue Sky, so you can search me up there, or Mastodon, which you could always search me up there, and I occasionally post things on there.Chris: Wonderful. Well, I'll make sure that all those links and connections are available for our listeners once the episode launches. And I very much look forward to reading Goetic Activisms myself. So, thank you so much, Craig.Chris: Thank you, Chris. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

Building Texas Business
Ep079: The Rise of Rivalry Tech with Aaron Knape

Building Texas Business

Play Episode Listen Later Sep 11, 2024 39:06


In this episode of Building Texas Business, I learned how a missed home run sparked the creation of Rivalry Tech from co-founder Aaron Canopy. He conveyed the early challenges of building their platform from the ground up and initial launches at Rice University football games. Aaron discussed their pivotal strategic partnership with Aramark, which led to expansion into major league venues like the Mets, setting them up for scalable growth. I also discovered how the company used the COVID-19 pandemic to refine its software and form industry relationships. Additionally, the importance of building a dynamic culture centered around transparency, open communication, and employee empowerment was highlighted. Strategic collaborations with Comcast Business assisted in entering new verticals. Aaron provides insightful entrepreneurial lessons through strategic partnerships on values like self-funding phases, team building, and innovation. SHOW HIGHLIGHTS In this episode, I interview Aaron Knape, CEO and co-founder of Rivalry Tech, about his journey from a missed World Series home run to founding a successful food delivery technology company for sports and entertainment venues. Aaron discusses the initial inspiration for Rivalry Tech, which came when his partner, Marshall Law, missed a crucial home run while waiting in line for food during a 2017 World Series game. Aaron and Marshall, neither of whom were tech experts, navigated numerous challenges in the early days, including finding the right tech talent and building a minimum viable product with the help of Craig Zekonty, a former Rice MBA classmate. The episode explores how Rivalry Tech started at Rice University football games and eventually expanded to other venues, including a significant partnership with the New York Mets. Aaron shares how the COVID-19 pandemic allowed Rivalry Tech to focus on fortifying their software and establishing key industry relationships, ultimately positioning themselves for scalable growth. The importance of strategic partnerships is highlighted, including collaborations with Aramark and Comcast Business, which have helped Rivalry Tech expand into new verticals like healthcare and hospitality. Aaron emphasizes the significance of company culture at Rivalry Tech, which includes transparency, open communication, and fostering an environment where employees feel empowered to voice their ideas and criticisms. The episode delves into the lessons learned from strategic partnerships, including the necessity of validating customer needs before development and anticipating market trends. Aaron discusses his philosophy on hiring, emphasizing the "hire slow, fire medium fast" approach and the value of team loyalty during tough times. The episode concludes with a glimpse into Aaron's personal life, including his preference for Tex-Mex over barbecue and what he would do on a 30-day sabbatical. LINKSShow Notes Previous Episodes About BoyarMiller About Rivalry Tech GUESTS Aaron KnapeAbout Aaron TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Aaron Canopy, CEO and co-founder of Rivalry Tech. Aaron tells a fascinating story about how missing a home run during the World Series led to he and his partner creating a successful technology company in the food delivery industry. Aaron, thanks again for taking time. Welcome to Building Texas Business. Aaron: Yeah, great to be here. Thanks for having me, Chris so let's talk about Rival would use to order the food. And it's our software and it's our hardware that's back in the kitchen, that lets the people back there get that food out faster. So, known for sports and entertainment, we're now in healthcare, fast food, restaurants, hotels, resorts, casinos, wow. Chris: So kind of like the Amazon Prime of food delivery. I think so yeah, it is, I like that. So what was the inspiration to start the company? Aaron: Yeah, so my partner Marshall Law. Actually his full name is Jesse James Marshall Law no way, no joke. Chris: Yeah, that's his real name. Aaron: Parents are comedians. They must have been. Yeah, they're awesome. But he was at Astros-Dodgers World Series back in 2017, sitting out in the left field and ran up to get a hot dog and a Coke with his two boys, and while he was up there waiting in line for 20, 25 minutes, yuli Gurriel just hits a bomb and it's right over his seats and you can go back to the highlight reel and you can see Marshall's empty seats. So he's crushed, right, he's devastated, and that's the whole reason you go to an Astros game to see moments like that. But it was even worse that it was right over his seats. So he texts me that night and says man, we've got to fix this. We've got to like why is there no app for food delivery in a stadium? And so that's when Rivalry Tech was born. Back then we called it seats, but that's when it was born. Chris: Oh, we don't, yeah. So a lot of people start companies where they see gaps in a process or something. Aaron: Yeah. Chris: But that was pretty remarkable. I mean literally leaving the stadium. He sends you a text about this. Aaron: He did and he was adamant. You know my being, you know, skeptic in general. I was like, well, either it's already being done or it's not efficient to do in a stadium. And he said, well, it's got to be done somewhere, so we're going to do it. It's going to be you and me, and he's very charismatic. So he convinced me to join up with him and we started the company a couple months later, Wow so walk us through that then what was it? Chris: you know what was it like and kind of what were the missteps taken to kind of start from scratch on this kind of idea that born out of frustration. Aaron: Yeah, yeah, you know that neither of us are tech founders, right? Neither of us are tech guys. So we had another hurdle to cross. You know, marshall had done some internet research and found you could build an app for $3,000. And we laugh to this day we look at the millions of dollars we've spent on the platform. So we might have been a little fooled into thinking it was going to be easier than it has been. But we started by, you know, trying to understand what the real need was, trying to just kind of map it out. And then we had to find a tech guy who was going to build this for us, right, because Houston's got a lot of tech talent now, a lot more than it did seven years ago when we started the company. But seven years ago it was tough and all the tech talent was being utilized by oil and gas and healthcare. You know, it's not like the West Coast where you've got a lot of talent. So we set out to find tech talent and that's where I went to. One of my old rice MBA classmates got in Craig's a canty who I knew had been a developer in his past life. He had his own successful company called Pino's Palate that he had built and grown and scaled, and so I said, hey, help me find a tech guy. And so we looked for two, three months and finally Craig comes to me and he says I found him, it's me. So great. Aaron: So Craig got back into startup life and that was probably one of the best things that happened to us, because he's very organized, very methodical and he's not just a coder, he's an architect, and so we got really lucky early on that we weren't like a typical tech startup where we're just writing code and it's kind of all thrown together. We were building enterprise grade, minimum viable product in the early days, right. So we kind of had a leg up in those early days and Craig is also co-founder, so he joined the company, really helped us get it off the ground. And then we went to work. We went to work and started out at Rice University football with our wives handing out flyers, our kids and brothers and friends were delivering the food into the stands and I was running a laptop just manually assigning orders and it was definitely a minimum viable product back at the time. But Rice had faith in us and we did them right and delivered a good first product and we learned a lot from that experience. Wow. Chris: So yeah, and it's grown from there. Aaron: We've grown from there. We then went, we got the Skeeters now the Space Cowboys to sign up with us, right, and then we had our big break. Then we got really lucky. We're building software the whole time, we're learning from Rice and Skeeters. And we had really good opportunity to be put in front of one of our old mutual friends, jamie Roots oh, sure, and president of the Texans at the time, and it was at a pitch event and it was funny. I'd never met Jamie. I didn't know him prior to this and he was sitting in my chair at my table at some point and I didn't recognize him. And I walked up to grab my bottle of water and Marshall's wife, melissa, knows him and she said, hey, aaron, this is Jamie. And I'm like, hey, what's up man? And she goes no, this is Jamie Roots. And I'm like, oh. And so we had a great 15-minute conversation and he said, man, I really like what I'm hearing. I like your ethos, I like the aggressiveness. We have an issue with the fan experience at NRG Stadium. I want you to come down and meet with Aramark and let's give it a go. So he got us into the stadium and I remember walking in and meeting with Aramark and Jamie and I won't name names. But the Aramark guy walks in the in the boardroom and he sits down and he goes mobile ordering is BS. It'll never work at scale and in stadiums. And I thought, man, we're done, yeah, we're toast. And Marshall leans across the table and says, well, that's because you're doing it wrong. So we got a kick out of that. They gave us a shot and we did well. We had a few thousand seats we were serving. We showed them that it could be done logistically, we could make money off of it and that we had a good product. So from there we started to scale and and built a really good relationship with Aramark, one we maintain to this day. And you know the sports side. We work with them at other pro stadiums. We work with them at Minute Maid. Right now we work with them at Fenway Park. The Boston Red Sox, the New York Mets. Those are some key Aramark partnerships with us. Chris: Wow, that's a great story, fortuitous, like most, if you're working hard and you get that lucky break and take advantage of it. The combination of hard work and luck sometimes is a really good thing. Aaron: It is. It helps, and we were astute enough at the time to understand that there is a bigger problem. The bigger problem wasn't that a fan wanted a beer or a hot dog in their seat their seat. It's that the operators the arrow marks of the world were having trouble keeping up with that unfettered convenience. We'll call it right, okay. All of a sudden, you go from lines, which naturally throttle your demand, to cell phones and everybody can order as much as they want, whenever they want, and they all expect it to show up in two minutes. So we learned that the operational challenges were the real problem and that's where we turned our focus. So now, when you look at our platform, it's not just about delivering food, it's about streamlining that entire process. Yeah, if the kitchen can't keep up, then it doesn't matter. Right? That's exactly right. Yeah, that's exactly right. So building in the controls, the throttles, the reporting, the communication, all that stuff's baked into our platform. Chris: So a couple of things that come to mind as you talk about what sounds like a lot of focus in Energy One on product development, software and then trying to prove the concept. What did you all do to try to finance that? Did you have to go out and raise money? Were you doing it yourself? Because most startups and entrepreneurs face that conundrum and there's a number of different ways to handle it. Aaron: What did y'all do at Robbery, at the beginning we were self-funded, we were self-financed, we were bootstrapping it. I had a good job. I was president of a manufacturing company. Marshall has like three, four other companies, he's a serial entrepreneur and Craig was running Pino's Pallet. So we all had good jobs and we were able to fund the beginning parts of the company and ultimately it got to a point where really two things happened. One, I was spending more than 40, 50 hours a week on rivalry tech, and we saw that we were getting enough traction that it needed full-time focus, and so as a group we decided, okay, it was time for one of us to leave, and that was me. So I left my job and we financed a salary to get it going and do some fundraising, and we raised our first round of funding from Venture Capital probably about a year into operations, when we really wanted to start scaling, and that was interesting as well. That was a fun experience, but now that's how we got it started Just a lot of sweat, blood, tears and a lot of our own money. Chris: Yeah, that's a common theme for anyone kind of starting something from the ground up. Aaron: Yeah it is, and it's interesting when you do it that way, and I'll give credit to know when you have an idea and you want to start a company. You've got about a thousand ideas. Here's what it should be, and Craig was really good at saying, ok, but we can only afford to build three of those things out of the thousand things. What are the three things we really need to prove? What's going to help us get to that next round of funding or what's going to help us get that next customer? And it's not all the super convenient stuff right. It's not about sending you a text message when you're within a mile of the stadium. That's not going to generate revenue. So we really had to spend time and figure out what are the most most important things to build, and that's how we got the first version of the platform out right. We just wanted to prove that, a people would use it. B people would spend money to use it. And C we could help the customers make more money. And that was it right. So that's how you get to a platform where you have to have your kids deliver food. Chris: I'm sure that was great. Yeah, they enjoyed that a bit. They did, they had a blast. So then you know, the next, I guess, issue you face, I'm guessing is, as that success is coming, you've got to start building your team to service the customers that you're bringing in. Yeah, how did y'all go about doing that and kind of going through adding key people in the right spots at the right time? Aaron: You know that was a really interesting journey for us. You know, at the beginning we knew it was mostly about tech, like we had to build the technology and the software. We did hire an operations guy in January of 2020. It was a great time to hire a field ops guy, no-transcript. And so you know, at that stage we were really trying to figure out where we scale and how we scale, and we got to go hire all these operations, people et cetera. But then something happened in March of 2020 that changed the course of live sports and entertainment. Just a little bit. Chris: Right. Well, our good friend Jamie. I remember him saying at the time it's a terrible time to be in the mass gathering business. Aaron: That's exactly right. So you know, when COVID shut everything down, it was really funny we were actually in an investor meeting. It was, I think it was March 11th, 2020. And we're talking about raising a series A and we're going to raise some more money, and then the phones kind of start buzzing and vibrating and everyone's looking down and they're like, oh man, the rodeo just canceled and or just shut down. And then a few minutes later it was like, oh, the Rockets have postponed, you know, their season already. And or no, it was the Astros. I'm sorry, the Astros postponed their season, start dating all of this. And so we said, okay, well, maybe we shouldn't have this investment meeting right now. And that really kind of set the stage for, quite honestly, was a better growth phase for us, and I actually give COVID not that it deserves any, but I give it credit for turning us into the company we are today. We took COVID and took that time to build the software we really wanted to build, if that makes sense. So, rather than splitting resources you know we had precious resources at the time rather than splitting it between operations and marketing and all the other things you're normally spending money on, we put it all into tech and by then we had established a good relationship with Aramark. We had established a good relationship with the teams like the Texans, like the Astros, and we had established a good relationship with Major League Baseball through some of our other connections at Aramark. And so we just spent all that time in isolation talking to these other people who were in isolation. So, mlb, they became really good, almost friends, and said here's what hasn't been built, here's why you don't see it at every stadium. And we listened, and so we somehow managed to raise almost $2 million during COVID throughout 2020 and just put it all towards the software Wow. And so we were able to come out of 2020 better funded, but also with a product that MLB signed off on it we launched at the New York Mets in 2021, coming out of COVID. So that really helped us allocate those tech resources and then we could start. And, if you think about it, covid also gave us a really nice kind of gradual increase in activity with operations. So we hired one ops guy, because ballparks are only at 10% capacity, sure, and they were at 30, then 50, and then 100. So we were able to scale. It was a lot better runway than just getting hit with it all at once yeah, I guess it makes sense right. Chris: You were able to kind of that hiring process that we kind of started talking about you were able to ease into that right and not have to throw a lot of investment at it because of exactly the ramp up exactly and we were able to take our time and find good people. Aaron: You know, culture is huge for us. Startup life is a grind. Startup life in live sports and entertainment is probably worse because it's a lot of nights, it's a lot of weekends. It's going to happen, whether you want it to or not, you know. I mean, the schedule is the schedule and so we had to find those people who, you know, kind of thrive on that life. They like going and the insanity and the chaos around. You know, trying to serve food to 80,000 people, you know, on any given Sunday. Chris: Oh, I can't imagine right. The other thing, though, that you know, I hear from your lessons and the advantages you took during, you know, kind of the COVID shutdown, if you will, was you really and this applies at any time but the importance and value that you gain by listening to your customer? And we have what were the issues, what did they like, what would they change if they could? And then you were one listening and you took that back to the developers or maybe they were in the meeting too to make those adaptations and modifications. Aaron: Yeah, yeah, exactly. It really helped highlight a lot of those bigger challenges right, where we got to understand, okay, well, we did have the good fortune of working through Texan season in 2019 and we saw the issues, and then COVID just allowed us to sit face-to-face from the customer when they weren't distracted, when Aramark and the Texans weren't distracted by the season. They're just sitting at home literally and let's talk through it and we're going to build it for you guys. So, yeah, it really helped put a magnifying glass in without the chaos, and that made all the difference, right, because we have a lot of competitors who just build on the fly and they're just trying to build and learn and they're getting beat up every day and that, and they're getting beat up every day and that's the advantage we have. Chris: That's great. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermiller.com, and thanks for listening to the show. Chris: Well, you mentioned culture, and I definitely don't want to gloss over that. Couldn't agree more. I mean, culture is everything. What have you done at Robbery to build the culture that you appear to be proud of, and how would you describe that culture? Aaron: with grit. I mean a lot of people use that term as part of their core values, but for us it's. We really make sure, whoever sitting across the table, they know that this isn't an eight-to-five job, that this is going to be some nights and weekends and you may have a thought at 2 am and you know Marshall and I talk at 2 am all the time. We don't expect that from everybody, but hey, just know that you don't have to answer that 2 you in text, but if you want to, that's okay. But we've got a really fun culture. I mean, look, first of all, we're doing a lot of fun things. I mean whether we're at sports or, you know, I mean resorts. We do the Margaritaville up in Conroe. I mean there's worse places to go to have to do work, right. I mean we even enjoy going down to the hospitals. We're at Methodist in the Med Center. We've got some robotics stuff. It's just a lot of fun. And it's really fun to go into areas where, you know, people aren't using a lot of technology on the food and beverage side, and so we really focus just on people who are creative and they like to question and they like to come up with answers or solutions, you know we don't have. We try not to have any of those barriers where they feel like they can't approach me with an idea or criticism or feedback. You know, I think part of our success has been allowing everybody in the company to have a voice and there's no such thing as a stupid idea or a bad idea. You never know where it's going to go right, and so you know we like that everybody can feel safe just throwing it out there, right, I mean? And we've had some crazy ideas come across the come across the whiteboard, and some of them have gone on to become parts of the product and some we've tucked away and some we've giggled at and erased, you know yeah. And then we've got definitely a culture of you know, just a very candid culture, right? I'm trying to think of what the phrase is, but our candor is very important. So, you know, we have a lot of meetings where we'll share ideas and opinions and then we'll fight about those ideas and opinions and voices will get raised and pulses will increase and language will be thrown around. But at the end of the day, everybody does it respectfully and you can scream and yell at your partner all you want, but we always make up and we realize it's coming from a place of trying to better the company. Chris: Yeah, Sounds like transparency, but also in a safe environment, right. Aaron: It is. Chris: Yeah, the other thing that sounds like you've created within that culture is one that fosters innovation you talked about. People are encouraged to bring their ideas to the table. Yeah, their ideas to the table? Yeah, how? I mean? Are there things that are meetings you have to, or challenges you present to people so that they know that innovation is respected and welcomed? Aaron: Yeah, we do. I mean we have weekly meetings where we kind of go through everything from the tech roadmap to the operational roadmap to sales and marketing, and we just talk through what we're seeing in the market, try to identify the gaps, right. So we're really trying to teach everybody in the company look for those gaps. Where are we seeing, you know, areas where there's no solutions? And so I mean we love whiteboards. I mean if I could have every surface in the office be whiteboard, it would be whiteboard. I mean, put it up on the whiteboard and go and let's start playing with it. And we've gone through some sessions where we've covered a whole room and come up with new ideas or better ways to execute. Right, I mean we're dealing with, you know, a stadium or a hospital. They're not simple organisms, they're very complex. And then when you get back into the food and beverage service side and fragmented technology stacks that they're using in the back and how do you tie it all together? And then you got to pull in the different stakeholders the hospitals, the aramarks, the employees. It becomes a lot of moving pieces and within that is opportunity, yeah, and so we spend a lot of time just talking through you know where and how can we do this? Chris: so let's let's talk a little bit about you. Know you start in sports missing the home run of the World Series. You mentioned this and alluded to it earlier. You've grown in sports. While you still do. That's not your primary area. Tell us a little bit about you. Know how you moved into health care, as an example. Aaron: And what are some? Chris: of the innovative things that you're actually doing, that when people show up, you know hopefully not at a hospital, but at a resort or or something that they could see to know that this is your technology in play. Aaron: Yeah, so sports and entertainment was our focus market for a very long time and we realized that the needs existed everywhere. Right, the problem that we were solving wasn't just at large stadiums, so large operators like Aramark, they operate in a whole host of other industries, right, like we talked about hospitality or leisure hospitals, etc. And so we knew we wanted to expand into those other verticals at some point. And we got really lucky again where and you can obviously tell Aramark's been a great partner throughout all this Right, they called us out of the headquarters up in Philly and it was really funny. I'd gotten to know the guy well and he says, hey, great job in sports, you've solved a lot of issues for us. You've built a great platform. Can you do it in other business verticals? Could you do it in health care? And we said, absolutely, yeah, we've been wanting to for a long time. What are you looking for? And he goes well, we've got a customer down in Houston and you can hear the papers kind of flipping through. You ever heard of MD Anderson? Yeah, yes, I've heard of MD Anderson. He goes. Yeah, they have a need down there. We want you to go look at it, and so worked through some of that. But what ended up happening is we actually got in front of Houston Methodist and their innovation team is really great, really employee focused, really patient focused. But they wanted us to focus on putting in our mobile platform for the employees because you think about it a doctor or a nurse, 30-minute lunch breaks you don't want them waiting in line for 15, 20 minutes, right. So we saw that as our opening. We knew we wanted to expand here. We have a customer pulling us into this other market, right. So that's how we got started. We built the platform for hospitals at first, but the really cool thing about it is that that same platform applies to every other market in the world, right? Sports is unique. It's a four-hour event, five-hour event. You turn it on, you turn it off. A day or two, a couple days a week, depending on a baseball home stand football once a week, exactly, but a hospital, a hotel, fast food, I mean 365 days a year, sometimes 24 hours a day. So we built this new platform for them. And let's use Houston Methodist as an example. So we've got our mobile at all. And let's use Houston Methodist as an example. So we've got our mobile at all eight of their locations in Houston. We have our kiosks at all eight of their locations, so you can walk up to a coffee shop, order a coffee at one of our kiosks and the barista will make it. You don't have to wait in line and then we're doing some really fun stuff. So, like in the Med Center, we are integrated with a big robot made by ABB Robotics, and this thing makes your food from fresh ingredients to. It actually cooks it, it puts it in a bowl and puts it in a locker for you. That robot didn't have any way to communicate with the guest or for the guest to communicate with the food preparation system, right, which normally is a person behind a counter you talk to Right, and it didn't have any way to communicate with Aramark in the back. Hey, here's the reporting for the day. Here's what I've made. Well, we do all of that, and so we essentially said look, just let's and to oversimplify, just run a line from the robot into our platform and we'll take care of the rest. And that's what we we did. So you can order food from our app and the robot will make your food. It'll tell you when it's ready. It'll tell you what locker it's in. You walk up and you scan a little code we give you, and your locker just opens up, and then we do all the reporting for the customer at the end of the night as well, so they can see what you know delivery or make times were, etc. Now we're getting into delivery. Robotics have the just, so we're controlling that order fulfillment process again from the very beginning to the very end, right, Whether it's a human or a robot. So it's pretty fascinating. Chris: Sounds like I'm still trying to wrap my head around a robot cooking in the kitchen. Yeah, it's pretty cool. Aaron: It's their induction cookers. They look like concrete mixers and so it's tossing these, this pasta or this chicken, and like a concrete mixer and it's cooking it. So it's pretty neat. That's amazing. Chris: So you know clearly. You mentioned AeroMark several times and, based on the story, I can see that they're a key strategic partner for you, as are some others. What are some of the advice you could give others about how to cultivate those relationships that are so central to your business? Aaron: So I mean, Aramark was an obvious one for us in the early days because they were the gatekeeper to a lot of our stadiums. And the other part of that is we knew we didn't want to go door to door knocking on different stadiums' doors. They are in hundreds of stadiums, so build for one major customer, make them happy and they'll sell for you and they'll take you along right, and they'll take us along. That's exactly right. So we were very intent and strategic on a relationship like that and we've worked with Aramark's competitors as well. We work with a lot of them and it's that same mentality, right. But then, you know, we started looking for other partnerships and this was a really interesting one where Comcast Business, comcast Sports Tech, has, or Comcast Business has, a sports tech accelerator and we were asked to join a couple of years ago and we thought we might have been a little too big. We said, well, we've grown, we don't know that we need a tech accelerator. But they said, look, we're trying to give our partners in the space some more developed platforms and their partners are like PGA Tour, wwe, nascar, and so we signed up with. But we were very upfront with them. We said sports is not our focus market anymore. We want to work with Comcast business and they came back to us and said absolutely We'll intro you to the mothership big Comcast, join our sports tech accelerator. So we did, and great relationships out of that right We've. We now work with PGA Tour. We've got some agreements with them, working with them in a few locations, but Comcast Sports Tech did exactly what they said they would and I'll respect them forever for this, because you never know, right, like, do they really have any pull with the mothership Whatever? And so we are now fully ingrained in the Comcast business and what's called Comcast Smart Solutions, where they sell internet right, they sell connectivity and it's a commodity, but what they're using us for and a few other companies are where the value add wrappers right. So we're working with an NHL team. Right now Comcast is going to provide the Wi-Fi, the access points, but hey, guess what NHL team? We also provide mobile kiosk back of house software. There's other companies doing digital signage, iot, and so now they've got this whole ecosystem that they're taking out to their customers and we work with them, not just pro sports, but major franchise chains with 30,000 restaurants, more major hospitals, hotel chains with thousands of hotels, and so now we start going in and we've got this really strong partnership with a major player. And they had a lot of people knocking on the door and we just took the same approach Build, listen to them first, build what they want, build what their customers want, and they'll take you wherever you want to go. So that's great. It's not without its challenges, right. It's a slow process. You're building something for a multi-billion dollar company like a Comcast or an Aramark. You don't get sales overnight. You've got to dig in and you've got to understand that it's going to take time and investment. But when that flywheel gets spinning it's sure hard to slow down. Chris: Yeah, that's great, yeah, but you're right. I mean we talk about it. It doesn't happen overnight. You've talked maybe a little bit about it, but I think we also learned. I'm sure there were some mistakes made, setbacks that you and your team learned from. That also helped you later become as successful as you have been 100%. Anything that comes to mind that stands out as one of the bigger ones. Yeah. Aaron: You know, in software it can be challenging because people, customers, will just say, hey, I want this, I want it to do this, and the proper answer is do you really need it? Do you really need it to do that Other than a? Chris: programmer going sure, I can do that, yeah, and they will right. Aaron: And you could spend all the money you want. And I remember this isn't a major mistake, fortunately. But I remember we were at an NFL team and it was a customer and they said we want the ability for the app to, or the users to, pay with cash. And we're like why do you want to pay with cash? We're digital, we don't need, and they're like we have to have it. You have to have the ability to say this was a cash payment and then reconcile the end of the night. And we were like and this was a week before the season, and so we hired a couple of extra developers, we spent I don't know 50 grand to add this cache functionality. And we go back a week later and we're proud of it and we're like check it out, and you know what the team said oh man, we decided afterwards we didn't need it anyway. I wanted to strangle them. Aaron: I was going man, we jumped through hoops. You could have told us, right, yeah, you could have told us, like, when you decided you made the decision, but here we go and we built it. So you know, in the early days of a company you're really eager to please and you do have to kind of take a step back and say, look, we can't build it all, you'll go broke or you'll build need and you'll never use. That goofy function is still sitting out there somewhere attached to our platform, right just turned off, yeah like an appendix right. We don't need it and it's just there forever. That's probably one of the biggest things we learned in the early days. You know we've learned as well that I mean you've got to keep your head on a swivel for new developments in the market. You've always got to be looking at what's coming down the pipeline. You know we probably erred a little bit and not getting into kiosks earlier. When COVID hit, we thought no one's going to, no one wants a kiosk, they don't want to touch anything. Right, remember the early days we were fogging everything and the reality is kiosks are probably the biggest thing out there right now and it's a natural extension of our platform. We had the time to do it and we're getting in the game and getting in the game a good way and you know, to be fair, it's we're not worried about that first mover advantage. We've got a lot of mistakes from our competitors that we're learning from and gaining ground very quickly. But you do learn to start looking farther down the road. Right, we were maybe looking a year down the road. You've got to be looking two years down the road. What's really coming down? So now, if you look at what we're focused on biometrics, computer vision there's a lot of components that are on our roadmap or on our current integrations that we're building, that you won't even recognize our platform six months from now. Chris: Wow, that sounds pretty cool. Yeah, it's fun. So while we have some time, let's turn and talk a little bit about leadership. As you said, you kind of were the first to really step in full time. You were running a company before. How would you describe your leadership style and why do you think that style has been successful in helping Ravelry grow to the company? It's been. Aaron: Yeah, we like to hire people who take a lot of initiative on their own, who aren't afraid to go out and do something and maybe make a mistake and try it again. So you know, in the startup world or in the tech world there's a and this applies to a lot of places but you know it's hire slow and fire fast. And we hire slow and we'll fire like medium fast. You can't make everybody think they're going to get fired for making a mistake. My leadership style I'm not a micromanager. I very much. When we hire people, I say look, I'm not going to give you a book to tell you how to do your job. We're going to write this book together because we're breaking new ground every day and we're learning something new every day and I'm not going to pretend to know everything. So I'm hiring you because you're smarter than me. Hopefully. You're known for what you do and do it well. And if I'm going to teach you anything, it's going to be how this company operates and where you can find your best fit and your best purpose. You know, if it's a salesperson, where and how do they make their best fit as a salesperson. You know, if it's a salesperson, where and how do they make their best fit as a salesperson. So you know, that's been my style it's give them some autonomy, give them some ability to go out and make it their own and if you hire slow, you've got a good feel for the person, you know what they're going to be capable of and if you're comfortable with them. So that's how I've tried to lead the company. We've got you know, it hasn't always worked we've had people come and we've had people go. And then we've got some people who, just, you know, they grind it out every day for this company and they're always thinking of new ideas and their days. You go, man. You know when is this guy going to leave me? He's so good, he's bound to go find something better. And they don't and they stay and and I think that speaks to the culture and the loyalty and the environment that we've built- Well, that's certainly true, especially for those high performers. Chris: If they're staying, the reason they're staying is because of the team that they feel like they're a part of, which goes to the culture. Aaron: It does. Yeah, it does, and I'll share a little bit more on the intimate side. We're a tech company, right, and you have your ups and your downs you always do and teams come, teams go, covid happens, covid goes away. We've been through times in our history where we, you know, you're strapped for resources, you're strapped for capital, right, because you're raising venture dollars, sure, and we've let people go who have said can we work for free, like, can we still keep doing our job? We know you can't, you know, afford to have this big team. And you know, I mean I get emotional when I think about that. Sure, that we have people and it's been multiple people who've done that and you bring them back. And the goal is to bring them back. And I mean you can't buy loyalty like that. No, that's not something money buys. And so, you know, if we, as we grow, you know I know that would get harder to keep that part of the culture, but man, it's the early days. If you can just capture that magic of the stress and the trenches and have responses like that from all your employees, you know you can go out and teach a pretty good course. Chris: Yeah, yeah, absolutely Well, and get to your point. I think you know one of the goals of a company should be hire really good people, give them good opportunities, autonomy, training so that they become really good so good that they're marketable anywhere else in your industry or others, but also have a culture that's so good they don't want to leave. Yeah, Right, and if you can hit on those two things, man, it's like the key to the kingdom. Aaron: It is, it is and those people are priceless and you know our goal is down the road. If there's a big exit or something like that, I mean loyalty gets rewarded right, and you don't forget those times, because those are meaningful for business owners. Chris: Very good. That's great, man. It's great. What a cool story. I mean like seven years, yeah, it has been. So let's, we'll turn it a little bit on the lighter side. What you know growing up, what was your first job? Aaron: My dad's a large animal vet and so I was shoving the proverbial you know what. So, yeah, I worked at his vet clinic quite a bit, so it was a lot of painting, a lot of fence building a lot of you know cutting hay out in the pasture. Chris: So I was a farm boy. That's funny. So my dad was a primarily large animal and there was a big pile behind the stalls and that was one of the jobs and his partner's sons and I, yeah, I could totally relate. Exactly, that's too funny. Well, you know, not necessarily the best segue from shoveling that stuff, but I'm going to ask you do you prefer Tex-Mex or barbecue? Aaron: oh, tex-mex. All right, tex-mex. Yeah, you know it's. I've lived around the world and I you know, I know it's not exactly true, but I mean, it seems like you can find barbecue or barbecue adjacent foods almost everywhere, man, tex-mex, you just cannot find it. I mean, it's just you. There's tex-mex everywhere, but it's not Tex-Mex unless it's here. Chris: I think that's a pretty true statement. Yeah, and then the last question. I'm curious to know if you could take a sabbatical for 30 days, where would you go and what would you? Aaron: do. Oh man, if I could take a sabbatical for 30 days, you know I would go back. So we spent a lot of time as a family over in Europe and in France and in small towns. So you know there's just a, it's a part of that world. You know, if you asked me where I would go you ask a lot of people where they would go in France they'd say Paris. Paris is okay. I like the small towns, I like the history, the quietness that you get in a lot of those places. You know rivers and streams running through it. So I just found that part of the world to be especially peaceful. And if it's a sabbatical, you know that's where I prefer to be. Good food yeah, can't beat it. Good wine yeah, really good wine yeah, can't leave that part out. Chris: No, not at all. Well, aaron, this has been an amazing conversation, love and your story that you and Marshall and others have created. So thanks again for taking the time. Yeah, appreciate it, chris. Thank you, Special Guest: Aaron Knape.

Building Texas Business
Ep078: Behind the Grill with Patrick Terry

Building Texas Business

Play Episode Listen Later Aug 28, 2024 37:23


In this episode of Building Texas Business, I learned valuable lessons from Patrick Terry, founder of the popular Austin-based restaurant chain P Terry's Burger Stand. Patrick explains how the company's success has been centered around its commitment to natural ingredients, competitive pricing, and exceptional customer and employee care. We explored the challenges of maintaining price discipline amidst rising costs and inflation, including during the COVID-19 pandemic. Patrick also shared insights from his origin story, hiring practices that bring on passionate individuals, and the importance of company culture. He also touched on the strategic considerations that underpin P Terry's expansion plans into new markets like Houston and the employee support programs in place. SHOW HIGHLIGHTS I discussed the inception of P Terry's Burger Stand in 2005 with founder Patrick Terry, focusing on their strategy of using high-quality, natural ingredients at competitive prices to differentiate from fast food giants like McDonald's and Starbucks. Patrick emphasized the importance of customer feedback and employee well-being in ensuring operational efficiency and customer satisfaction, without relying heavily on marketing or advertising. We explored the challenges of maintaining pricing discipline amidst inflation and supply chain disruptions, particularly during the COVID-19 pandemic, and how P Terry's managed to outperform competitors with consistent pricing strategies. Patrick shared the origin story of P Terry's, highlighting their commitment to quality food and a strategic hiring process that prioritizes employees' passion for the restaurant business. The unique approach to food preparation at P Terry's through their own commissary was discussed, showcasing how it helps maintain quality and cost control, along with their plans for expansion into Houston. We delved into the significance of company culture and employee care, including P Terry's innovative non-interest loan program for staff in financial need, as a means to foster loyalty and engagement. Patrick recounted the emotional journey of running the business, his brief hiatus from leadership in 2019, and the decision to reengage with renewed vigor, underscoring the importance of leadership in maintaining company culture. The strategic expansion from Austin to San Antonio and the considerations involved, such as logistical feasibility and location selection based on cost and accessibility, were discussed. We highlighted the balance between choosing affordable locations and ensuring they are accessible to customers, using demographic trends and growth areas to inform business decisions. Patrick shared personal anecdotes, including his early entrepreneurial ventures and the cultural philosophy at P Terry's, emphasizing the importance of setting high standards and leading by example. LINKSShow Notes Previous Episodes About BoyarMiller About P.Terry's GUESTS Patrick TerryAbout Patrick TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Patrick Terry, founder and owner of P Terry's Burger Stand. Patrick attributes the success of P Terry's to two fundamental strategies First, work hard and listen to your customer. And second, take care of your people and they will take care of your customer. Patrick, I want to thank you for coming on Texas building Texas business and it's just a pleasure to have you on as a guest. Patrick: Well, thanks, I'm honored to be here. I really am. Chris: So I think the first place to start is for you just to tell us, those that don't know of P Terry's, what is P Terry's and kind of. What are you known for? Patrick: Well, so my wife and I started P Terry's 2005. So we'll be celebrating our 20th anniversary next month, next year, and the idea behind it we sell we're a quick service hamburger stand, and the idea behind it was if we were going to compete with, you know, the giants in the industry the McDonald's and the Burger Kings and the Jack in the Boxes and the Chick-fil-A's you know everybody. You know we're going to have to find a way to be different and you know I talk about so often. People want to get into business and they find a retail store or a restaurant or a concept that they like and they go across the street and pretty much do the same thing as the guy that they liked. And when you do that, all you've done in a best case scenario, is you take half his business. It's pretty hard to take all of his business. If you're going to do the same thing, then you're going up against the fact that he's established. Clearly he's doing okay because you liked it and he's there. And so I think that's the biggest mistake new business owners and entrepreneurs make is they like a yogurt stand and they go across the street and they do the same yogurt stand. And so, all that said we were going to be different, and where we were going to be different was that we were going to offer the quality beef and the food that we serve is really that of an upscale restaurant, to be honest and we were going to do it through a drive-thru and a dine-in at a fast food restaurant, but we weren't. Because of that, we weren't, of course, able to charge any more than the fast food guy across the street, so what we were trying to do was make ourselves bulletproof. We were going to offer a quality product that you couldn't get at a fast food restaurant at a price that was the same as the guy across the street that wasn't serving that quality food. And obviously, if you're able to pull that off, it's a huge advantage. And by doing so what we did, we established right away that we were going to look for a fair profit, and that was what it was going to be. And so if I could sell an order of French fries and I might be able to get $2.50 for that order of French fries, I looked at the cost and I'm thinking well, actually, my overall cost of goods, I only have to sell those franchise at $2.15. We have very low overhead. We have a small office with a G&A under 6% and we work hard and we work smart and we don't spend money on marketing or advertising. We don't have that luxury. We don't pay, of course, any franchise fees because we own the business. And so we were able to pull it off. And so we serve a black Angus, all natural beef, and what that means is it's antibiotic free, it's hormone free, it's a vegetarian fed, it's a pure beef. I mean it really is a great product. We serve the same thing with a hormone-free chicken. And you know, our buns don't have high fructose corn syrup. Our potatoes come from Idaho and they're fresh and they're cooked in a canola oil which doesn't have any hydrogenated oils. I mean, we literally just went down the line and said, okay, this is what we're going to do. Now we're going to have to make it work and by keeping our costs down and, frankly, working really hard, really hard with a lot of smart people, we were able to pull it off. We opened up our 34th store two weeks ago in Cibolo, outside of San Antonio, and, as you know, we're on our way to Houston. We have our first Houston location in Richmond I believe it is in October, and we're going to have five. We plan for five Houston locations. One of the other things that we do that makes this unique is that we have our own commissary. We cook we do a lot of cooking and for our restaurants ourselves, so we bake our own banana bread, we bake our own cookies from scratch, we make our own veggie burgers from scratch. We take chicken breast all chicken breast, boneless, skinless breast and we actually grind it into a patty for a chicken burger and for our chicken bites. And all that's done in the commissary by our own staff. We share the offices, share a space with the commissary, and every morning three or four trucks go out and deliver that product to the stands, and so we're able to keep our costs down by doing that as well. We pretty much just take charge of everything we do, yeah and that's what separated us. Chris: Well, it sounds like what I'm hearing is a very focused, you know thought into what you wanted this business to be and I guess what you didn't want it to be. So you know what I heard you talk about is, you know, obviously very cost conscious, so that you could be profitable, but also singular, focused on this. You know premium quality food at a lower price point and you know really it sounds like in the beginning, very focused on what profit margins would look like, what your cost of goods would be. Before you even opened a store it seems like. Patrick: Yeah, and I don't want to make it sound like we're smarter than we are, because a lot of that stuff just you know fortunately just works itself out. Now where it got tricky is when COVID hit and the supply chain issues and the inflation that we've seen and where we've benefited from that is by having always done what we've done in the last 19 years and everyone's read about. You know the McDonald's Big Mac combo meal. It's for $16 in Idaho and you know McDonald's are great operators. So I got nothing bad to say. But every time you take a price increase if you're not looking over your shoulder when you do that if you're not conscious of? am I really doing everything I can before I go up on this price? Patrick: way I can make this a nickel instead of a diamond. Unless you've done that from the start, you find yourself taking price increases to cover up mistakes or issues of the day, and it becomes this band-aid that's very hard to take off, right. Chris: We've seen that in your industry right, where the classic pass it on to the consumer, and then in the fast food wars just over the recent months, the consumers rebelling. Patrick: Absolutely, absolutely. And so when you know Starbucks and McDonald's show, you know negative comp store sales, last quarter, for the first time since you know COVID hit, we were up 8% in our compor sales. And because, frankly, when you take our strategy and you stick with it and the hard part is sticking with it it's really easy to look around and go, man, that guy over there he's getting six bucks for that burger and I'm only getting five. I could probably go up a quarter and that's the illusion, right, you get into that game and there's a mind game and if you're able to keep pushing that off and, trust me, it's a hell of a lot easier going up a quarter. When you're able to pull that off, then you don't go down that rabbit hole and find yourself in a situation where so many of our competitors have found themselves. I mean, I look around and see what similar pricing is, I mean what similar menu items are and what the pricing of our competitors are, and I'm astounded. I mean there are some of our competitors are 20 percent higher than we are on their menu, and you know we're all serving food out of a drive-thru and so it's a dangerous game. It really is. And so I think that I think you've hit on it exactly the way it is, it's a discipline and it's every day. Chris: Yeah, well, that's what Jim Collins talks about in Good to Great. You know, discipline, people with disciplined thought and disciplined action is how you get from good to great. Yeah, so let me, let me take you back, cause I mean I love the thought that went into to the concept from the beginning, but what inspired you to, in 2005, open up a hamburger stand? Patrick: Well, thank you for asking. It's almost embarrassing, I apparently. When I finally did it, a score of my friends contacted me to remind me how much I had been boring them for so many years that I had always wanted to open up a hamburger stand. And do not ask me where that came from. I have no idea, other than to say that I love the idea of serving a hamburger, french fries and a milkshake. I just, I just think that's glorious and I know that's probably way over the top, but there's something so satisfying and it's probably because it's my favorite meal that I just can't get past it. So I had always wanted to do it and I had a particular location that I had in mind and I lost it five years earlier and it sat empty for five years and finally it became available, and so that's when we opened up at Lamar and Barton Springs in Austin. Chris: I love that. Well, I mean. So, like, like any good entrepreneur, in my view, you followed your passion, your favorite meal, something that you have a passion about doing. Patrick: Let me tell you, if you don't love this business, you better not get in it, because it is consuming, it's all consuming. And so you know I look around. When I used to, you know, when I would hire somebody, I would remind them that if they didn't really love the restaurant business or what we do every day, you are not going to be happy, and if you do love it, you're going to be very happy, because we're drinking out of a fire hose here pretty much every day. Chris: Let's talk a little bit about hiring, because I think that's really regardless of the industry, really regardless of the industry. I mean, companies are made of people and you've got to get the right people to help, you know, maybe bring your vision to light, your strategies to life. What have you done over the years to make sure that you are making that right hire decision? I assume it's evolved over time and I think there's at least a couple of pieces. I'd love to maybe hear how it was starting out, but oh, yeah, it was. I know that coming out of COVID it had to be even more challenging, because people wouldn't even come to work. Patrick: Right. Well, when we first opened, the first day we opened, my wife Kathy was there and she had no restaurant experience. I had some and I put her through it. It was. You know, it was very difficult, and she likes to tell the story that she looked around the very first day and realized that there was no way we were going to do this by ourselves. And so the first three years we were in the stands every day. I mean, I worked every day, morning to night, and by doing that I got to know, obviously, everything that it took to run the stand, every position. But I also got to see the people that were there and I was able to separate the ones that were working out and the ones that weren't. And I was not a good hire at first. There is this you know, boy, it's easy to take what you think is the simple route and just put a body in place and, man, if it's the wrong body, everyone's miserable, and so it took me a while. I just had a certain, but I was not going to give in. I had a certain level of employee or stand or team member that I was, that I had envisioned, and so I wasn't going to lower the bar. And so the first three years were really difficult because a lot of people you bring in had other unfortunately had other fast food experience and they brought a lot of bad habits with them. And so you know, it's one of those deals when you hire somebody, frankly, they either have to be scared of you or they have to like you, and I'm not the guy that they're going to be scared of. That's just not the role I want to play. It's not the business I want to run. We're not always going to agree, but my hope is that we like and respect each other and respect each other. The other thing is what we learned being there every day is we learned so? Many of our employees' lives are completely different than mine. You know I've been around for a long time. I had some money in the bank. You know I had a college education, I had a career before this, so it's really easy to live in your bubble and not recognize it, and so I tell this story a lot. We had an employee, vinny and this was 18 years ago and, by the way, I'm proud to say Vinny still works for us, as do a lot of those people in those first few years. They're still with us and Vinny's truck broke down and I had worked all day and I didn't want to do his job that night, so I convinced him just to get in a cab and I would pay for the cab. And then when Vinny got there, I said what's going on with the truck? And he said well, it's going to cost $150 to get fixed and I don't have $150. So I handed him $150 and I said pay me when you can, because I need you here and I need your truck fixed Now if I'm in a corporate office, then he probably loses his job because he didn't show up. Right, right, I don't answer the phone, we don't have that conversation. So then I've lost an employee that I've had for 18 years. But, more importantly, I understand the position they're in, and so the very first thing we did from that is we created a non-interest loan program for all of our employees. So if you walk in to my office right now or you don't even have to do that you tell your manager, and the manager is going to make a phone call and you say I'm behind in my rent or I have a, you know, whatever it is, you're going to get a loan, and if it's under, if it's five hundred dollars or under, we don't even ask, we just you get it. If it's more than that, we want to know what's going on, you know. And so what we did is we made hiring easier. This is a really hard thing to do every day. The last thing I need to do is make it more difficult. So so we started by taking care of our people better than most, and they told their friends, they told their relatives, and so they understood that this is a two-way street and I'm going to take care of you, but you have to take care of me and, of course, the way you take care of me is you take care of the customer. Advert: Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyMillercom. And thanks for listening to the show. Chris: That's great. I mean the idea and I think it's true in any organization. If the people that work for you think that you genuinely care about them as a person, not just that they get the job done, you're going to create loyalty and engagement with that employee. Naturally, hearing your story leads me to the question about culture. Let's talk about that. How would you describe the culture at P Terry's? Obviously, the fundamental philosophy you just described, I would assume, is some of the foundational elements of the culture that you're trying to build or have built. So what can you share about that? Patrick: Well, I'll tell you the obvious. You and your listeners already know this culture is the most important thing. There's nothing even close to second when it comes to running your business. The culture that you establish speaks for who you are, not only to your employees, but to your customers. Speaks for who you are, not only to your employees, but to your customers. There's nothing more important. I can't even think of number two. I'll tell you an interesting story very quickly. I hope it's real. I had a person call me and want to visit with me about the business, and they had a very successful online clothing company and they were about to open up stores for the first time. Everything they had always sold was online, and he asked me what it took to open the store and take care of the employees for the very first time. Right, this is all of a sudden. It's not a click, it's a conversation, and I probably talked for 15 or 20 minutes about everything we do every day for our employees. I thought I really thought his head was going to explode. I mean, he. It was so beyond the realm for him. And I get it right. This is like, and what I was trying to explain to him was you're, you may be selling the same item, but you've got an entirely different business model now. I mean, now you have, for the very first time, you have a person representing you selling that product to someone. And boy, you better get that right. And so that's really what it boils down to is understanding what we do every day and what our people do, and the culture has to be led by me. You know, I read a great line a couple of weeks ago. Somebody said to the person running the company, what's your job? And he said my job is to be right. And so when you accept that as your job and, by the way, I don't do it by myself, oh my Lord, not even close right, I mean, I've got all. I got these people around me that are just terrific, and but I certainly go to them and we certainly talk about everything. But the first thing that this has to be established is I'm here and I answer my phone and if, if you're in the hospital, I need to be there and make sure everything's okay. If you have a family member that has an issue, if there's something I can do, I got to do it. And then you have to understand everyone has to understand that there's a bar set and no one goes below the bar, and I can never go below the bar, obviously, and so it's really for me and for P Terry's, it's really by example, and if you know, dogs and kids can spot a phony a mile away. And so if you're not sincere in what you're trying to do and what you believe in and I've had some people that work for me that I could tell immediately you know you're faking it and you know you just don't feel the same way the rest of us do, and nobody wants to be in that position. So you're not happy here and I'm not happy with you here, so let's just shake hands and walk away from each other. So there's a lot of that going on, but the culture and what we do every day, the first thing we do is we just take care of our people and then we count on them to take care of the customer. Chris: Yeah, Some of what you're saying there I've heard others speak to. We certainly have that philosophy here in the business we run in this firm and that is we say we hire and fire from culture. Right, you have to know what the culture is. You have to look for the people the best you can through interview processes and hire from culture. More importantly, when you figure out someone's, you know you set the standard and you can't go below it. But if you see someone that's consistently going below it or faking it, then you've got to move fast and they need to be out of the organization. And it doesn't have to be harsh to your point. Chris: They're not happy, no one's happy. They're going to be happier somewhere else that has a different set of standards that connect with them. But you've established your standards. You've tied behavior that you can demonstrate is consistent with that that comes from the top down, and then everyone can be on the same page. Patrick: And it has to be. It's almost like, you know, being in the middle of an orchestra. You know we're all playing the song and we've all got a part to play, and if one of us, you know, drops the violin, it's not going to feel sound the same. Yeah, so true. Chris: So you know, reading up on, you know the goings on at P Terry's. I want to kind of turn the conversation a little bit to the last maybe I guess it's been four or five years you did something that is not easy for a founder to do in 2019. You decided to step down as CEO of you know, your proverbial baby let's talk about that. Obviously not the first time an entrepreneur has done that and kind of handed reins over. What led to that decision and how was it for you to kind of transition out of the CEO role? Patrick: Well, if it's okay, I want to step back a couple more years before that and talk about something that it really doesn't make the papers very often. That, and talk about something that it really doesn't make the papers very often. We had at one point I had just kind of hit a wall. I was exhausted. I was working with a kind of a person that I had next to me that was, you know, my right hand man. It was just it was. We had been going at such a pace for so long. You know, my wife and I have funded, had funded this business all by ourselves. The entire time we borrowed money but we didn't have any other investors, so everything kind of fell on us every day and the idea came up that maybe we should sell because this is just exhausting. And we did a dog and pony show and had a half a dozen legitimate buyers and we got a wonderful offer. You know, as I said to the person when I turned him down, you offered me enough money to go live on an island and I've got two little girls. I don't get to live on an island even if I wanted to. So I appreciate the offer very much and I think what I was doing when I did it, and it was sincere, I wasn't trying to waste anybody's time. But I think after the offer came in and my wife and I both agreed that we didn't want to do that. This is not how we wanted our legacy to end. I think I was looking for validation. I had never been validated for the work I had done, other than you know that the we were allowed to expand. Our business was good, our customers were very appreciative, but from an industry standpoint, I didn't know what we had created. I really didn't. I'm not the guy that I'm terrible at networking. I don't go to. I don't go to meetings, I don't go to conventions, I just I really it's not my deal, I really just work. And so I got that validation and then I made a decision that the next decision we made was do we want to leave Central Texas? You know the Austin area, and I had never done that. And so I thought well, I got some great advice one time that I don't want to learn something that somebody else has already learned, that I don't want to learn something that somebody else has already learned, and so I chose to bring somebody in with the experience of having done that, and Todd came in. Todd Korver came in. He had a great resume, same moral compass that we have here, a really good guy. And what I was finding was that, no matter what, I'm still here, and there are certain things that I'm just comfortable with, that, if I'm going to be alive and still owning the business, that it's important to me that we do every day. And so it wasn't that Todd did a bad job. It's just that I looked around and said, you know, there's stuff going on that I think we can do a little differently. Maybe we can do it better. I don't know, because I don't have all the answers, but I think I'm more comfortable in the front seat than I am in the back. The departure was amicable, he's a good guy. He's got a great job here in Austin. He's going to do very well there. But I just found that if I'm going to be in the office every day, you know I might as well do what I really want to do, and so that led to me coming back, and so, you know, I think it also gave me a new energy that I hadn't had because Todd did some heavy lifting for four years, and so we kind of have come back with the vengeance. We got the idea four days after Christmas that maybe we should really take a serious look at serving chicken bites. We compete against everybody in the business and Chick-fil-A is, you know, the leader, and so a lot of our customers had told us hey, the only fight in our family. You know, my kid wants a chicken bite at Chick-fil-A and I want a hamburger or a chicken burger from P Terry's. And so, you know, the 29th of December we had this conversation and the 16th of March they were for sale in our stores. We made them out of our own kitchen and we created them and, you know, worked on sauces and stuff, and so we've really been going very fast at that. But that you know, and I found that I'm just much more happier if I'm going to, if I'm going to be around, if it's going to still be my company. I'm just happier being the guy that's running it. Chris: I understand. Well, it had to be difficult, especially so it sounds like you stepped out of the CEO seat but stayed, I guess, involved in the company. That had to be challenging, right, it was one thing if you kind of, like you said, go to some Island or just complete a separate business, but and I, you know, I did my best. Patrick: I didn't think it was fair to, you know, be in Todd's office every day pounding the desk, going why aren't we doing this, why can't you do this? I, you know, I let him run the company because that was the only fair thing to do, but I was in the office next door and so you know, you're right, I'm not on an island and so, yeah, at some point it just was like easier for me just to do it. Chris: So let's let's talk a little bit about the expansion. You mentioned that you had expanded beyond kind of the Austin area into kind of San Antonio. You just mentioned a store in that area your plans to come to Houston you mentioned just a minute ago, and ultimately five stores, what? I want to talk about maybe have you share, is kind of what goes into that thinking of the strategy, of when it's right to kind of take those steps which I would assume are, you know, somewhat trepidatious. Patrick: Yo, absolutely, and what we found is that we were interested to see in the challenge. Absolutely, and what we found is that we were interested to see in the challenge. And you know we really had established ourselves in central Texas. We have a lot of stores here, you know we're. I mean I have there's Lamar Boulevard in Austin. I have three stores on Lamar Boulevard, you know, and about three miles apart. So we're pretty inundated and I just wanted to see, I believe that our concept traveled outside of Austin. I believe that our concept really works most places and I wanted to see what we could do. And so San Antonio made the most sense because of our commissary and our delivery, so we can be in San Antonio in just over an hour. And that made it. And, by the way, we just went down, you know, i-35 and we opened a store in Kyle and one in San Marcus and one in New Braunfels and then into San Antonio and so so from a logistics standpoint it made sense, but it was really kind of a challenge. Now, I don't, you know, there is something I truly believe in and you know I have to tell you real quickly, I spoke at a UT, at the MBA program, one time it was a wonderful class, and the professor called me after the class and he said I got to tell you the students loved it and I thank you for coming. And I said well, I appreciate that. And he said but I got to tell you I'm probably not going to be inviting you back. And I said totally fine, can you ask, can you tell me why? And he said well, there's nowhere on the syllabus that just says work hard and listen to your customers. And I said okay, well, I get it, cause that's, frankly, all I know to do, to the God's honest truth is that's all I need, that's all I know what to do. And so you know we take. What I was getting to is, at some point you take a leap of faith and you've listened to the people around you and at some point, obviously, you're the one that has to make the final decision. And then you, just you know, you trust your experience over all these years and you know you make the jump. You just make the jump. Chris: So I guess just you know, since I live in Houston, what was it about Houston that makes you think that you know again the concept travels? Why the first location in Richmond? What are some of the things there that you know, you and your team see and are excited about that you and your team see and are excited about. Patrick: So we picked that part of Houston because we could drive from Austin again for our commissary until at some point we will hopefully have a satellite commissary in Houston. But a lot of it is the loops are of interest. There's a lot of growth there, there's a lot of room for expansion and, frankly, when you get in the middle of all of your fair city it gets very expensive. So you kind of go to the loops because the land is cheaper and the leases are cheaper. So there's definitely some of that. I'm just being very honest about it. I mean, there's some great locations but I can't spend $300,000 a year on a ground lease, you know it doesn't, I think it's a well. Chris: the transparency is what we're after here, and I think, again, kind of for a listener to go look, you may have some great ideas, but be smart about that expansion. It goes back to the first thing you said. You've been mindful in this business of controlling cost, and obviously I can speak to it. You're picking locations where the population's growing, so that's not a bad thing either. Right, your demographics must line up with the things that you know makes a store successful. Patrick: And at the same time and I've got a competitor across the street from me, across the highway from me, in San Marcos, and you know he picked a really bad location and my assumption is he picked it because it was cheap. So you know there's a balance here, right? You know you got the land for $60,000 a year and the reason is because nobody can get to it, so you got to be careful about that. You know, I had a friend of mine come to me. He and his wife came to me years ago and said I think we're going to get into the restaurant business. And I said why? And he said, well, we're going to sell, I think we're going to sell sandwiches. And I said what are you going to do that? And he said, well, people have to eat. And I said yeah, but they don't have to eat at your restaurant. And unfortunately, you know there is. You know, you just have to look at this stuff so realistically. And that balance of, yeah, I'd love to be in that location, but it's a wonderful location, but it costs me so much. All I'm going to do is sell burgers and, you know, not make any money, that's right, I get to pay the landlord to sell burgers, right? Yeah, that's exactly what it is. That boy, that's a tough. That's a tough way to spend your day. Chris: Well, patrick, thank you so much for sharing the story and the ups and downs, but I'm looking forward to having a burger once you get here you said you did it in Austin, obviously, and it is as good as you described. I want to turn a little bit to just a little personal side of things. Obviously, you've said a couple of times you just know how to work hard. What was your first job, even as a kid? Patrick: So I had a lemonade, a Kool-Aid, stand in front of my, in front of our house I was probably five or six and my dad was, and my parents were always there and always had suggestions and my dad came up to me and he said you need to put the because we lived in West Texas. I grew up in Abilene and you think your summers are hot, so my dad said you need to put the temperature on the. On your poster and and I said so I wrote it's 102, kool-aid, five cents. And you know the car stopped and it was such a great idea and so I always had that influence. I said that was my probably my first inroad. I remember in seventh grade I started selling candy bars there was no you know, costco or Walmart or anything back then or Sam's to the grocery store and buy a little six-pack of Hershey's. My mom would go and take me and I started selling so many candy bars at the 10.30 break that I was messing up the senior store at noon and the superintendent called me in and told me to stop. So that's funny, all right. Chris: So this is a question I ask everyone, and I'm incredibly intrigued to get your answer, because you're the self-described hamburger guy. Right, I got to know do you prefer Tex-Mex or barbecue? Patrick: Oh, I'll go to Tex-Mex all day, okay. Chris: I'll go to Tex-Mex. Patrick: And I love barbecue, don't get me wrong. But I got to tell you if I can have chicken enchiladas with the verde sauce and a side of rice and beans. I am doing just fine. Chris: Okay, so it's your second favorite meal. Patrick: it sounds like yeah, absolutely, my poor children. I'll tell you this real quick. I know you want to wind it down. My daughter is 16 now and when she was 10, she went on a water ski camp and she spent the day. And she got in the car and she said I said what'd you have for lunch? And she said they served these submarine sandwiches. And I said, oh, what'd you get? And she said a meatball sandwich. And I said, oh, that's great. And I said you don't seem like you're in a good mood. And she said I didn't know those existed because my poor children eat P Terry's every day. So that's, you know, that's it's a family deal. I love it. Chris: It reminds me of the story of you know, it was in a movie a while back right when the parents try to tell convince the kids that yogurt was vanilla ice cream exactly. Patrick, thanks again. Really enjoyed meeting you and hearing your story. Congratulations on the success and best of luck as you expand and move into the Houston market. Patrick: I appreciate it Well. I'd love to meet you one day and grab a burger. Chris: Let's do it, in fact, let's stay in touch on when that Richmond store is open, and I'll be there. Patrick: Absolutely, absolutely, and I'll even buy. Chris: What do you think? That's a heck of a deal. Very good, well, thanks again. Patrick: Thank you, I enjoyed it very much.

Building Texas Business
Ep077:Navigating the Future of Corporate Travel with Steve Reynolds

Building Texas Business

Play Episode Listen Later Aug 14, 2024 40:24


In this episode of Building Texas Business, I sit down with serial entrepreneur Steve Reynolds for his perspectives on innovation in corporate travel tech. As CSO of Embers Inc., Steve shares his journey developing TripBam, an early pioneer utilizing algorithms and robotics to optimize hotel rates. He explains TripBam's strategic transformation from consumer to enterprise software, strengthening the company and positioning it for seamless integration under Embers. Steve offers valuable lessons on championing passion within high-performing teams. The importance of actively engaging customers and development staff to creativity solve problems is emphasized. We discuss the challenges of maintaining innovation at scale versus smaller startups. Steve's experiences navigating acquisitions and a turbulent industry offer cautionary advice. A theme emerges—embracing flexibility positions leaders to overcome challenges and achieve lasting impact. SHOW HIGHLIGHTS In this episode, I spoke with Steve Reynolds, Chief Strategy Officer at Emburse Inc., about his journey in corporate travel technology and entrepreneurship. Steve discussed the origins and evolution of TripBam, a platform he founded that uses algorithms and robotics for hotel rate monitoring, which eventually pivoted from a consumer-focused to a B2B model. Steve shared insights on navigating the challenges posed by the COVID-19 pandemic, emphasizing the strategic decisions that helped TripBam emerge stronger, including cost optimizations and product enhancements. We explored the importance of fostering a passionate and innovative team, highlighting the value of listening to customers and involving development teams directly in problem-solving. Steve explained the critical difference between passionate programmers and those who are merely formally trained, and how assembling a team that shares the company's vision and offering equity can drive success. The episode delved into strategies for managing company growth and financial stability, such as quick decision-making in right-sizing staff and optimizing operational costs through cloud environments. We discussed the benefits of subscription-based pricing models over transaction-based ones, particularly during economic downturns, and how this approach helped maintain cash flow during the pandemic. Steve reflected on the evolution of workplace environments and leadership styles, noting the shift from rigid, traditional settings to more flexible, results-oriented cultures. We talked about the challenges of maintaining innovation in large companies, contrasting startup environments with big company mindsets, and the importance of hiring the right people for each setting. Finally, Steve shared his thoughts on the future of the travel industry and the innovative approaches that have set new standards in modern practices. LINKSShow Notes Previous Episodes About BoyarMiller About Emburse GUESTS Steve ReynoldsAbout Steve TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Steve Reynolds, chief Strategy Officer for Emburse Inc. Steve has built his career in corporate travel technology and in starting various companies over the four-decade career. Steve looks for opportunities to be disruptive. Steve, thanks for coming on the podcast. It's a pleasure to meet you and appreciate you taking the time. Steve: You bet Chris Glad to be here. Chris: So you know there's a lot that I'd love to get into with you. I know that you know currently you're with a company called M-Burst Travel, but that you started a company before that called TripBam. Tell us a little bit about, I guess, those companies and what they do. What is the business they're known for? Steve: Okay, and just to back up a little bit further, I guess what you could call a serial entrepreneur. Tripbam was my third or fourth venture kind of lost count, but I've been in the corporate travel tech space for 40 some odd years. And TripBam when we started 10 years ago, we recognized that hotel rates change a lot more often than people actually realize. If you were to create some robotics that went out and grabbed the rate at a particular hotel for a certain date in the future, you'd see that rate changes just about every hour and what we found is if you just keep watching it, eventually it's going to drop, especially as you get closer to check-in. So we created some algorithms, robotics, whatever you want to call it that said okay, I've got a rate of $2.99 at the Grand Hyatt in New York. I'm arriving on the first and departing on the third. I want you to just let me know when it drops and if it does, I want you to rebook it for me If everything is the same room, same bed, same cancel policy, blah, blah, blah. So that's what we did. We originally invented it for the consumer market. We put out a website and we got mentions in the Wall Street Journal and USA Today and so on. But sort of my corporate travel buddies called up and said, hey, Steve, we really need you to apply this to corporate travel. And they started writing some pretty significant checks. We followed the money, we pivoted and went all B2B at that point. And so the company grew 40% year over year for the first six years, cashflow positive within just a couple of months. I mean it was great. It was great. And then COVID came along and kind of took our knees out from under us for a bit. Chris: COVID kind of wiped out the fundamental business model for at least a little bit. Steve: At least for a little bit. But fortunately a lot of our customers were paying us subscription fees rather than transaction fees, so we were to stay afloat. We got through COVID and we actually came out on the backside of COVID in a much stronger position, both financially and you name it, because we were able to do a lot of just cost improvements, right-sizing the organization. We kind of got a little bit ahead of our skis, I think, in some areas and created some new products, just all kinds of things, pushed everything out to the cloud and such that dramatically reduced our costs and just were firing all cylinders. Chris: And then we worked out a deal with Emburse in July last year to buy the company. Okay, how does I guess what TripBand does fit within the Emburse excuse me, overall, maybe suite of products or company strategy. Steve: Yeah. So Emburse provides travel and expense to the largest of companies, to the smallest of companies, and what I mean by that? Everybody. When you go, you have kind of a booking tool to start with. Most folks are familiar with Concur. We have our own. The reservation gets created. It then needs to be watched, monitored, audited, improved upon. That's kind of where we fit in. So before the money is spent we actually see if we can actually do better than what the traveler did on their own. Travelers are not going to check the hotel rate every day. They're not going to check their airfare every hour. They're not potentially going to book the preferred property within a particular city. We fix all that before the money's actually spent. We then push all that to mobile. So you've got a companion app in your pocket where the traveler gets a ton of destination content specific to that company. So I'm going to New York, I'm staying at headquarters, what hotel should I stay in? I need to go take a client to dinner, what restaurants do you recommend? All kinds of other stuff, including safety and security perspective and so on. Then the data is all captured and fed into an expense report so that your expense report if the traveler is compliant. It's kind of pre-created and pre-approved, so the traveler in a lot of cases doesn't have to do anything and if they're compliant all the way throughout, they could actually kind of be paid as soon as their plane hits the ground. Then it all feeds into reporting and analytics so that we can improve your travel program, identify additional savings opportunities, find some fraud issues, detect all kinds of other stuff that might be a problem. We also offer a card product if you don't have one, and that's kind of the travel plus expense ecosystem that we provide. Chris: That's fascinating. I obviously wasn't aware that something like that existed, but I can see how large companies with a lot of employees traveling could see the benefit and realize a lot of savings from those services. Steve: Yeah, when you combine travel with expense, some kind of magic happens in that we have enough data and insight to be able to start pre-filling out that expense report. Otherwise, all we're counting on is card transactions and receipts, and that's really not going to do the trick. But if we can get that card information augmented with the receipt scanning and everything else that we do now, we can really do a nice job of pre-filling out that expense report. So really all you have to do is add mileage, hit, click and you're submitted. Chris: So you mentioned that you've been in this industry for 40 plus years. I'm curious how did you first get started in the corporate travel tech space 40 years ago? Steve: It was just by happenstance, I guess you could say. I was originally started as a programmer for Texas Instruments, got accepted into their executive program, which meant I could go off and get an MBA and then come back to TI, but quickly realized that the consulting firms were paying a lot more. So I ended up with Ernst Winnie, at the time with Ernst Young and my first assignment was with a travel agency in Houston, Texas, called LifeGo Travel, which doesn't exist anymore. The owner of that company hired us to come in and build some technology. It really put him on the map and he got tired of paying the bills and seeing the hourly checks that we were charging. And so he approached and said, hey, you know, do you want to come work for us? And I'm like, well, that never thought about working for a travel agency. That doesn't sound all that exciting. But he said look what if we created a company, We'll spin it off and we'll give you some equity. And I'm like, okay, now you're talking. So we left, we started up a company called Competitive Technologies and all of it was bought by American Express Travel two years later. Chris: Oh, wow. So unquestionably you had a little bit of an entrepreneurial spirit going way back then to see an opportunity. Put you in it. Steve: And a lot of it is just kind of, I guess, my personal. I don't do well at big companies. I really struggle because I get so frustrated at just the lack of progress or the lack of innovation or the speed at which things happen, so I tend to sort of find an excuse to hit the exit button, usually within a year or two. Chris: Right. So you said something in that response that I want to talk to you about, and that's innovation. I think that's there's such a common theme, I think, with entrepreneurs about. You know, and innovation can mean so many things. What do you think that you've done, as you've built several companies, as you mentioned, to create or foster and nurture a spirit and environment of innovation? Steve: You know a lot of it is just becoming a really good listener to the buyer, to whoever the customer is. And then when they say things, there are certain kernels that are aspects of what they say that you just go oh, wait a minute, okay, can we go back to that? That sounds important. You know this level of frustration. Why does that frustrate you? And if you have engineering and development in the room when those things are said, oftentimes some real magic starts to happen and we just the creativity, the innovation just comes out naturally as wow, we can solve that problem. That's not that hard, you know, let's go do that. So that's on the B2B side. That's kind of the formula, that conversation. Something falls out as far as a new feature, product, something like that, that we can start working on the B2C side. Chris: Go ahead. Well, it sounds like there's a function there of asking the right questions and really listening. Steve: Well, and just most big companies or companies they try to protect the dev engineering. They're like oh, we're not going to let you talk to customers. You guys sit over here in the back room and we'll come to you with sort of a priority or roadmap of what we think is needed. And I feel like that's just the wrong way to do it. You've got to get the dev and the engineers and the programmers in the room to hear the story, otherwise you get this telephone tag of what actually gets built isn't quite what the customer wants or was even asking for. And for most companies that's really hard. I don't know why, but they just. It's like we can't allow that to happen, but that's just not the way I operate. Chris: Well, I mean, it makes sense that people you're asking to solve the problem probably need to hear what the problem is firsthand, right? Steve: Exactly. And then it's oftentimes the dev guys are like they're coming up with much more creative solutions. If you just hand them a requirement sheet or spec sheet, they're like, oh okay, this is going to take a month. But when they're involved with the client and they actually hear what the true problem is, oftentimes they're like, oh, I can knock this out overnight, I'll have a solution to you by tomorrow. It's just a night and day sort of sense of urgency or sort of the emotion around creating the solution. They're bought in. At that point, when they hear it directly from the client, they can be the hero. Chris: Well, when you think about kind of that and getting the right developers and the right kind of team together, what have you found to be successful as far as what to look for in building the right team and then keeping the team together? Steve: Yeah. So fortunately for me I mean through all of these different companies that I've started I've been able to kind of get the band back together multiple times. A because I, you know, I'm a big believer in sharing the equity. You know, let's get everybody, if not equity, at least options, so that when there is an exit, everybody benefits, and they've all seen that so far today, knock on wood, I haven't had an unsuccessful exit where we've had to, you know, turn out the lights or whatever. My shareholders have all made money, you know, typically around 5x to 10x on their investment, which has been great. So it's easy to get the bad back together. But what I also have found out is there are certain programmers that are passionate about programming and others that are just taught programming, and there's a night and day difference on the result. If they're passionate about it, the results come out quick. I get creative solutions that nobody would think of. They're usually extremely low cost and it's just so much better than if I have someone that's college taught. I'm doing this because it's a paycheck and I took this degree because that's what somebody told me to and I was good enough to get a B in college on all my programming courses, but at the end of the day, if their heart's not in it and they're spending their time, you know, just on the side weekends and nights learning new stuff, they're not going to be very good. So give me one or two of those that are passionate and I'll put them against 10 to 20 of those that are school taught and will kick their ass every time. Chris: So yeah, well again, I think that transcends all industries and disciplines, the key being passion. Right, I think you, as the leader, are the one that has to start with the passion and then find people that share that passion to get to where you're talking about, where there's that flow within the organization. Steve: Yeah, I think development's a little bit different. I mean, you're not going to find anybody super excited about accounting or I don't know the other aspects of it, but with development there's guys that just get so into it. You know they're programming on the side. They get into hackathons, they want to prove that you know they're smarter than the guy next to them and just constantly looking for the next challenge and just coming up with those creative solutions. I don't know of any other discipline that really has that level of it, but there might be. I mean, I could be wrong. Chris: So, just going back and maybe not the first venture where you and the travel agency in Houston started, but maybe I'm just curious to know as you began some of these startups, maybe sharing some of the lessons learned through some of the challenges you found in starting that venture, whether it be raising capital as an example, or any other challenges that may come about, but I think that capital raise can be one in the startup that some entrepreneurs find daunting and maybe can't solve and never get anything off the ground. Steve: Yeah Well, I think, first off, just wait as long as possible to raise capital. You know most of them kind of build an MVP which just kind of barely works and then go out and try to raise money on it. And whenever you go down that path you just end up way undervaluing what you have. And I know people get in certain situations where they just need to have a check, you know, or it's you know, lights out. But if you can wait until you actually have a client actually generating revenue, actually having positive cash flow, whatever, and then you can show someone, look, we just need to add fuel to the fire here. This is not about keeping the lights on, this is about generating growth You're going to have a dramatically better outcome. The other thing I found out is when you take the big check too early, you start making really stupid decisions. You start hiring attorneys that are expensive, you hire a CFO before you need it, you have a head of HR, all kinds of stuff and overhead that's just not necessary and over time it makes you less and less nimble because you're so worried about payroll, you know, and less focused on just delivering a product that has a you know, a bunch of value. Keep your day job, keep working nights and weekends, wait as long as possible. I mean, I always said, look, cash is like oxygen. If you run out you're going to die. So hang on to it with both hands first. I mean beg, borrow and steal from friends and family and whatever to just get stuff. If you need a contract, go out on the web and search for a capolar plate contract. It'll be good enough to get you started. Or find someone that's a buddy, that's a lawyer, that's willing to do some pro bono work in return, maybe for a little bit of equity stuff like that. Just hang on to that cash as much as you can, for as long as you can. Chris: Well, I think there's a lot there that someone can learn from. Obviously, speaking as a chairman of a law firm, I can't endorse legal Zoom for the startup, but I understand your point. We talk to clients a lot about especially know, especially in the startup phase. Maybe you know helping them get going, but you know and being smart about how they spend their money. But make it an investment in getting at least a sound structure and they may not need right the full-blown set of legal documents, but I can promise you I've seen people start on legal Zoom and wish they hadn't, you know, a couple of years later when things were getting a little tight. But I understand your point there. But conserving cash is important to get off the ground. Steve: Yeah, I mean you don't need to come right out of the gate being in an Inc. You know and incorporated in Delaware and pay all the fees, whatever to make that happen. I mean, just start out as a low-cost LLC and then, when you're ready to sort of raise capital and become a real company, you know you use part of that capital to convert at that time. Chris: So you had mentioned earlier, you know just, I guess, going back to kind of trip BAM COVID having, at least initially, a pretty profound impact but then turning it into a positive, and I'm kind of want to take you back to that time and you maybe dig in a little bit deeper. I think it's a beautiful lesson of something where you know a lot of people just throwing up their hands because travel stopped, et cetera, which decimates your business specifically to you. But then you said we actually learned from that and became a better, stronger company because of it. And you've mentioned right-sizing, the organization stuff. But could you share a little more detail and some stories from that our listeners can learn from if and when their business faces something similar? Steve: Yeah, I think, first off, being fairly quick. You know you can always hire people back, you know. But if you keep them on the payroll and you start burning up cash just way too fast or you're starting to trend towards in the red, you just got to pull the trigger. Nobody wants to, nobody likes to do it, but it's really nobody's fault. It's just something as an executive or CEO you have to do, or a founder. So that's one. Second is, as companies grow, you kind of make stupid mistakes along the way. You get kind of inefficient. You don't anticipate the level of growth that might have been reality. So going back and saying, all right, take a step back, let's catch our breath. You know, what should we have done to kind of handle the scale better? And so, for example, just moving everything to a cloud environment, you know, putting it out to bid, switching from one cloud provider to another, whatever it is, you know you can just generate or reduce your costs dramatically. You know, rather quickly, if you just focus the time on it. Everybody gets so white hot, focused on growth and the next client and the revenue they forget to look at the rear view mirror about. You know there was a lot of costs we could have taken out, you know, which could generate even more cash going forward. Advert: Hello friends. This is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations, and business leaders. Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at BoyerMiller. com and thanks for listening to the show. So we pulled the trigger pretty quick. We right-sized the staff. We had a pretty good and, fortunately for us, this is the other. We kind of lucked into this. Our customers, for whatever reason, decided they wanted to pay a subscription fee rather than maybe a percentage of the savings or a transaction fee, to where what they were going to spend would fluctuate month over month. By paying a subscription fee, they could budget it and they were going to get a better return on investment. So we did most of our deals that way and thank God we did, because when COVID and everything went into toilet in April of 2020, we still had cash coming in the door. So we were actually stayed cashflow positive because we kind of right-sized the staff fairly quickly. And then, coming out of COVID, as the revenue started to ramp back up and our sales started to continue, we were just on a much better platform that would scale after it because it was just all right-sized and efficient and whatever, and at the same time we added new products. So we had a two-year kind of all right, just keep the lights on, market will come back around. We added an air reshopping solution. We added a bunch of analytics to audit contracts and to benchmark performance, so that we had a whole bunch more to sell coming out of COVID than going in, and so that caused another year of kind of explosive growth as a result. Chris: That's great. So, yeah, obviously part of that is give some deep thought to how you price what your product right. So that subscription-based versus transaction for you sounds like a very. Maybe it didn't seem as meaningful at the time you made it, but it turned out to be. Steve: You know that's a tough one If the ROI of your product is pretty clear, like reshopping. If you've got a rate of $2.99, I drop it to $ to $250. I've got $49 per night in savings If you pay me a couple of bucks. Okay, here's the ROI. And we could run some pilots and all kinds of stuff to prove that out. So that makes it really simple and we try to hit look, I need a ROI that when they take it to their boss the guy that's doing the budgets, you know, won't cause all kinds of frustration and concern. So four to one is usually the minimum. A lot of our customers, the larger ones, are getting eight to one, 10 to one, you know. So you could say like you've probably underpriced it. But that's okay, you know we'll claw back some of that. You know, over time when it's a product that's the ROI is a bit fuzzier. You just got to somehow convince the client that this is the potential savings. They're going to guesstimate and then from there work backwards to a price which kind of gets you back to that four to one ROI. So if I think I'm going to save you five bucks a transaction, I'm probably going to charge you a dollar to $1.50 is what I'm going to aim for. Again, to get to that four to one kind of savings estimate for Relagate. Again to get to that four to one kind of savings estimate. Chris: So part of that goes, I think, in building that customer base, really focusing on strong relationships. Talk a little bit about that and what you've done, because it sounds like over the course of the various businesses, you've done a good job of creating some very good partnerships and alliances. What are some of the things you think that have helped you foster that and keep those for so many years? Steve: I think one is you know you got to under promise and over deliver. So if they're going to sign up, you know, don't make them look bad or stupid to their boss. The other one is identifying the influencers in the market. So I'm sure every industry has some individuals that are kind of on the bleeding edge, willing to try new things. And if they do and it works, they've got the microphone or the megaphone to tell a whole bunch of others. So fortunately for me, I've been able to identify who those influencers are. I've got a reputation for just delivering as promised. So when they sign up they have confidence and then they tell their peers and a lot of our sales in the large enterprise market are peer-to-peer networking. It's not from email campaigns or other stuff that we do. Chris: The kind of part of that, the old adage of just do what you say you committed to do when you said you committed to do it right. Steve: It's just delivering as promised. Don't sell me a can of goods and all this great wonderful thing. And then when the reality is just not there, you know, don't make them look stupid. You know that's the key one. I mean, these are after 40 years they become. We have some pretty tight relationships with these folks and I want them to keep their job and we want them all promoted and moving on to the next big role, because when that happens they just take us with them and we just keep getting bigger and bigger. Chris: So you mentioned that about kind of keeping this, your words, the band back together. You've been able to do that, hiring some of the right people and incentivizing the right way. Any insights into. You know what people could think about when they're looking at their team one, trying to, I guess, evaluate whether they have the right people and then finding the right ways to incentivize them to kind of keep that core group together. Steve: To me it's if they feel like they're a part of a team and they understand the value they're providing to the customer and they see that customer's appreciation. You know they're in the conversation with the client, you know, and that's easy to do at a small company, because who else are they going to talk to? Right, you got to bring the dev and engineering. But when you start layering and bifurcating and have people you know in engineering back there in the back room, kind of stuff that don't talk to clients, that's when it gets a lot harder. But when you get them into the conversation and that sense of this is my company, this is my reputation. I'm a part of something here, you know, that's growing and doing well and whatever. It's not that hard, it's really not that difficult at all. It's just everybody wants to be appreciated and feel like they're, you know, part of a team. So that's the formula, right, I mean I could throw money at them. But I ask my employees I mean I am not the guy that's writing big checks to hire people right? I'm like look, we're going to pay a reasonable salary. You know this is not, you're not going to be broke, but you know we're in it for the long term game, and so we want to keep the cash in the company so that we don't have to go do another capital raise which is going to dilute all of us, and so your equity just keeps getting smaller, you know, over time, and the guys that actually make the money, or the investors this needs to be a collaborative team effort so they get that. Chris: I think that transparent communications is key right. So they again they understand their role on the team, they understand what the goal of the organization is and how they can help further that. Steve: You know it's always been kind of fire slow, fire quick as well. You know the people, everybody makes hiring mistakes. It happens all the time. And you know when you hire someone within like a couple of days you're like this is not feeling right. You know, don't let it just sit, don't let it be two years later when you actually kind of work them out. You have to kind of pull the trigger fairly quick because it messes up the whole culture of the company. Oftentimes, especially at a small company, it can create some real problems. Chris: Yeah, I mean that may be the most sage advice and, I think, maybe the most consistent that I hear from entrepreneurs and business owners. It's been my own experience too, that that kind of fire, you know, don't be slow to fire when you know you made a mistake and it's the hardest, maybe one of the hardest ones to do because you're dealing with people. I spoke to someone yesterday and they were like hired, someone had some uncertainty and literally what I learned was to trust my gut because on day one that they started in a conversation went oh my God, this is a huge mistake. Tried to play it out, tried to make it work and guess what? It didn't. Steve: Yeah, the thing is I don't believe resumes anymore and I don't believe LinkedIn pages at all, especially when it comes to higher dev and engineering. It's just anybody can put whatever language they want and say they've got a ton of experience. You've got to figure out a way to validate Most of our hires. There's kind of referrals and peer-to-peer sort of networking. If I find someone, I can usually find someone they know, especially in the Dallas market where we are, that's worked with them at a prior company. That sort of thing and do some back-channel checking is what really pays off for us. And we know the rock stars. We know the rock stars. We know the rock stars, but they're not that hard to kind of pick out. It's the ones that are kind of questionable. That you know. You just got to do your homework and don't count on the resume. Chris: That's a really good point. It's a hard thing to do, though, and it may be easier in programmers. But, to you know, I totally agree with resumes, and profiles can be, you know, massaged, but it's sifting through and kind of through the smoke to really get to what's behind the curtain. Steve: Yeah, yeah, yeah, I mean. And Zoom calls, I mean people hire on Zoom calls or whatever. Like dude, you got to get them in the office face to face, go to lunch, have a couple of face to face interactions before you actually bring this person on board. You know, make them pass a coding test or something. You know something tangible. Don't just look, they're very nice people. You know they all have a. You know look great on a phone call or Zoom call, whatever, but that doesn't cut it. Chris: Yeah, I mean no substitute for personal interaction and seeing how people show up. Right. Steve: Yeah, the other thing is, since we're, you know, on a startup mode where everybody's looking at kind of the potential for equity, I'm like, look, if you're as great as you are, why don't you come on board for a month on a contract basis? Let's see how it works out, you know, and we'll go from there All right, and you really get a feel for someone and how well they're going to. We try it, we like to try it, before we buy. Let's put it that way. That's one way to do it. Chris: just talk about you know specific kind of leadership styles and and how you would describe your leadership style, and maybe how you would describe it today versus maybe 20 years ago as you you were emerging as a leader, and how you think it's changed oh, my god, it's night and day. Steve: so first company way back when. Maybe it comes as a surprise or not, but it was a coat and tie environment. Okay, guys, we've got to put on the ties and whatever. That was just so stupid. Checking office hours and all that crap and tracking vacation time just seems so silly. Now, if you can get the job done, I don't care what you wear, I don't care what you look like, I don't care what you wear, I don't care what you look like, I don't care where you do the work, I don't care if you have to take vacation on a pretty regular basis for whatever reason. I don't care if you're going off and disappearing to watch your kid play soccer, I do not care anymore. Just here's the job. Here's kind of an expectation. You know, as long as I understand, you're trying hard to get it done as quick as possible. We are good. You know, it's kind of a thing. So all that other stuff was just noise. That was just stupid, anyway it's. I mean back when I started in this, I mean programming and development and all that and the whole tech world was fairly new, so nobody knew what they were doing or how to manage these folks and it evolved over time, but fairly quickly. I mean, by company two, ties were gone. By company three, office was gone. I mean I've been virtual for 25 years. Unfortunately, we had offices but we just I think they were a waste of money but we did it for optics more than anything. Chris: Yeah, so it sounds like more kind of a traditional and somewhat of a command and control, starting out to now a little more, much more flexible and providing autonomy as long as people deliver on the expectations that they're communicated with. Steve: Which comes down to you just hire the right people, right, if you can get kind of get that sense for what the kind of folks that are going to do well. So, for example, if I see, if you can get kind of get that sense for what are the kind of folks that are going to do well. So, for example, if I see that you've got you spent 20 years at a really big company, you are not going to do well at a startup. I could guarantee you You're used to other people doing work for you. You know you're just kind of the sit back in your office and sort of you know, tell folks what to do. That ain't going to happen. You need to get your hands dirty. You might have to write code. You got to do PowerPoints, you got to do Word docs all that stuff yourself. Big company folks just tend to lose that ability, let's say, or it's beneath them and that's not going to work. Chris: Yeah, I mean it's almost. Yeah, that's not in my role. Mentality versus everything is in everyone's role. Mentality, right, it's almost. Yeah, that's not in my role. Mentality versus everything is in everyone's role. Mentality right, it's about getting a job done, no matter what it takes. Steve: And I think that drives me crazy at a big company because, you know, unfortunately for others, I tend to poke my nose into others' lanes and I get told a lot Steve, stay in your lane. Nothing bugs me more, you know, than to hear that. But that's the big company way. Chris: So you've gone through a few companies and you're now, I guess, inside of a larger company. Now Are you finding it easy to kind of have that mentality of flexible leadership and innovative environment? Steve: In the new company? Yes, I would have to say no, it's kind of as I expected. You know, with other acquisitions you start. You know, this kind of here's how it happens. However, embers, I believe, is trying hard to carve out a role where I can exist, let's put it that way. So my title right now is Chief Strategy Officer, and it's a bit nebulous, kind of by design. I can sort of make it what I want and as a result of being chief strategy officer, I can get outside of my lane and people can question it. I'm like everybody needs strategy. That's my title, I'm going to get in your lane, kind of stuff you know. So I tend to kind of bounce around to lots of different projects, objectives so on. I kind of help make sure that it's cohesive, you know, across this travel and expense story, you know. But at the same time I don't have a lot of direct reports, which is great. That usually doesn't go too well either. So so far, so good. Chris: Fingers crossed, that's great, yeah, we we kind of covered kind of the challenges of COVID If you think back prior to that, any other challenges along the way with the first two or three companies, everybody, yeah, yeah, I think people some of those are the best lessons we learned or some of the challenges we go through. I'm just curious to know any kind of lessons from a challenge that you could share with the listeners that might help them when they face something similar. Steve: Oh my God. I mean everybody's made mistakes and if they got lucky along the way and if they don't admit that they're lying, I mean some of the bigger ones. 9-11, we had a solution that was processing about 80% of all corporate travel reservations made in the US. 9-11 hit and we went to zero within about 24 hours, so that was kind of a gut check. Fortunately, travel bounced back fairly quickly, but it made us take a step back and realize how nimble we were If something like that were going to happen again. So that's one, and you know, and there's all the kind of day-to-day stuff. I mean there's fraud, there's employee HR issues that happen. You know there's. I'm not going to get into details on that, but you know you just kind of all right, let's deal with this. You know, don't just look the other way and take care of it. I think the latest I mean the big one right now is just, you know, the whole third party hacking and getting into your network and holding you hostage, stuff like that. You know that's made everybody just super anxious and nervous and to the point where companies are kind of shutting down their network so much that individuals can't do the job. You know, which is causing concern and it's what else are you going to do? I mean, if some employee can click on a link and bring down your network, do? Chris: you just turn off email. You're right, it's creating such a challenge. Everybody, all companies, are being attacked every day from all kinds of angles, and it just takes one and but you also? You can't operate out of fear and you can't let it stop you from doing your business. Steve: Well, they say there's two kinds of companies out there. There's those that have been hacked and those that don't know they've been hacked. So just kind of keep that in mind and I think it's fairly true. I think, you know, it's just almost too easy to get into someone's network and poke around and kind of see what's going on these days. Chris: It's so scary, but I thought you were going to say those who have been hacked and those that will be hacked, but I guess already have you, just don't know it. Well, see, I really loved hearing your story. It's a fascinating industry, and one that you don't really hear much about, but you definitely. It sounds like for 40 years you've been crushing it at it, so congratulations to that. Well, thanks for that. Steve: But also the one thing people don't know about corporate travel is that it sits on a backbone of legacy technology that's probably 40 years old. That has not changed. The GDSs are antiquated, the travel agency systems are antiquated. It's not that hard to come up with something innovative and new in this environment. So I just got lucky to where I got into it and I'm like this thing is so bad. I mean anything you do is going to be innovative. And so we just started coming up with new stuff solving clients' problems and it just kept evolving from there. Like this thing is so bad. I mean anything you do is going to be innovative. And so we just started coming up with new stuff solving clients' problems, and it just kept evolving from there. Chris: Yeah, that's really. You know so many entrepreneurs I've talked to. It's what you just said solving the customer or client's problem. Because what I said earlier, it goes back to asking the questions and listening and then trying to solve that problem. Steve: So many great ideas that come from that across so many industries. Yeah, and just to set up a little process to where you talk with your customers on a regular basis or a group of clients or people you trust and it just happens naturally, it's really not that difficult. Chris: Well, let's turn to a little bit on the lighter side before we wrap this up. I always like to ask people like yourself what was your first job? Steve: oh, my first job, let's see. Uh, I worked at a pet store at junior high. Well, actually first job was mowing yards, right? So everybody every kid did that just to get my allowance money. Then I worked at a pet store in junior high for a short period but fairly quickly realized waiting tables made a lot more money. So I told a guy I was 18, when actually I was 16, and they never really checked. They hired me as a waiter. I was actually kind of a part-time bartender, so I was serving liquor in Houston the strawberry patch I'll probably get them in trouble back when I was 16 years old and just made a ton of money as a, you know, a high schooler. So that was kind of the first. And then, you know, got into computers and writing code at a very early age. I was part of a program at Shell where they gave us mainframe time to go in and kind of play around and then went off to Baylor for computer science and then went to TI and then went to A&M for grad school. Very good, very good. Chris: So okay. So, being a native Texan, do you prefer Tex-Mex or barbecue? Steve: That is not a fair question, because both are pretty dang awesome, but, being in Texas, I think we've got some of the best barbecue on the planet. So Pecan Lodge here in Dallas is, I think, kind of the best, and there's a lot of Tex-Mex, though that's really good as well, yeah, I agree on all points. Chris: I haven't heard of Pecan Lodge before, so I'll have to check that one out. Steve: Yeah, it's in Deep Ellum, so next time you fly in, go in out of Love Field, and it's not too far, it's a 10-minute drive from there. Chris: Deal Noted. And then last thing is you know you've made early in the career, probably never did this and maybe have done since. But if you could take a 30 day sabbatical, where would you go and what would you do? Steve: I actually got a 30 day sabbatical. So a guy hired me or not hired me, but when he brought me on board to run a company he said hey, you know, I threw in there. Just, I read it in a magazine that it was the hot thing for techies to ask for, so I threw it in there and they accepted it. I guess they thought I'd never make it to my five-year anniversary. Anyway, I did and I took the kids and family, went all the way throughout through Europe. So we went to Italy, paris, france, austria, switzerland, whatever you know, just really unplugged for that 30 days. Actually it was a 90 day sabbatical. That's what I took. Wow, so I got a little bit more time. Yeah, it was great, it was great. So if that were to happen today, I'd probably look to do something similar, but nowadays if I want to take 90 days, I probably could just got to ask for it. Chris: Very good, very good. Well, steve, thanks again for taking the time to come on and love hearing your story and all the innovation you brought to the travel industry. Steve: All right. Well, thanks for having me, chris, I really enjoyed it. Good conversation. Chris: Thanks, well, we'll talk soon. Steve: Okay, you bet. Special Guest: Steve Reynolds.

The End of Tourism
S5 #8 | Unpacking the Last Tourist w/ Jesse Mann & Tyson Sadler (The Last Tourist)

The End of Tourism

Play Episode Listen Later Aug 13, 2024 52:56


On this episode, my guests are Jesse Mann (editor-director) and Tyson Sadler (director), the brains behind the documentary The Last Tourist. Jesse is both a picture editor and director whose professional work has spanned commercial, tv and film projects. The Last Tourist is her second feature film as editor. Her first film, as both editor and director, Material Success, screened internationally and won the Audience Choice at the Canadian Film Festival and Best Film at the Canadian Film Festival (2012). Most recently, she both directed and edited the online horror mini-series “The Confinement” (2021). She is a member of the Directors Guild of Canada and an associate member of the Canadian Cinema Editors. Jesse has an B.F.A. from Ryerson University's School of Image Arts.Tyson Sadler is an explorer, traveller and award-winning filmmaker. He has directed video content and documentaries for The New York Times, Associated Press, and The Huffington Post. His films have been screened at festivals around the world including Tribeca Film Festival, South by Southwest, The Edinburgh Fringe Festival, and the Toronto International Film Festival. An early pioneer i virtual reality documentary, he has worked tirelessly to use cutting edge technology to tell stories that build empathy around causes such as climate change, forced migration, and human rights.Show Notes:The Film's InceptionIndustry PolarityRegulating TravelAddressing the Root ProblemsGreenwashing Animal and Child Welfare TourismHow the Wealth Gap Increased During COVIDWhat was Left on the Cutting Room FloorHomework:WATCH THE FILM HEREThe Last Tourist Film Website | Instagram | FacebookThe Last Tourist TrailerJesse Mann's Website | InstagramTyson Sadler's Website | InstagramTranscript:Chris: Welcome Jesse and Tyson to the End of Tourism Podcast. Jesse: Thanks Chris for having us. Tyson: Thanks for having us. Chris: Thank you so much for joining me today to talk about your documentary film, The Last Tourist. So, it was released in 2022 to great reception.And as you might imagine, many of my listeners have pointed me in its direction. And after watching the film, I found myself really grateful that people finally approached these themes in the medium of documentary filmmaking and with what seemed to be a budget to do justice to what those themes confront. And so first I'd like to ask you two how The Last Tourist got started and what the inspiration behind the film's creation was and how did you decide to write a treatment for it? Tyson: Ultimately, you know, I think the inspiration for The Last Tourist came from a combination of personal shared experience and a shared passion for travel and particularly responsible travel.You know, in early 2018, I was approached [00:01:00] by the executive producers to write a treatment, for a short film around responsible tourism in the country of Peru. And through, you know, some follow up conversations, we sort of quickly realized that we had an opportunity because, a large scale documentary, on the subject of responsible tourism just didn't exist yet. I mean, we have wonderful films out there which challenge our conversations with our relationship with climate change and our relationship with our food source like An Inconvenient Truth or like Food Inc., but we didn't at that time yet have a documentary which really challenged our perceptions of the global impact of the travel and tourism industry and so over conversations with with our team and the producers we quickly realized that we had a unique opportunity to make "An Inconvenient Truth" for the travel industry and in early 2018, we seized on that opportunity to explore the positive and negative impacts of tourism on destinations.Jesse: And I think just to add to what Tyson was saying, I think originally [00:02:00] it started off as a short project and yourself and the executive producers who brought us together kind of pushed for it to become the large scale project that had ended up being filmed in 15 different countries or 16 with 400 hours of footage.So, sometimes you don't know, especially myself as a co-writer and editor, when you come on to a project, in the initial stages, you think, "Oh, you know, this is wonderful. It sounds like a great project." I had been an avid traveler, lived in a few different countries over 20 years and I thought, yeah, this is a story that needs to be told, but I will say in no way in the beginning, did I ever think it was going to be, and I think Tyson didn't either, was it going to be such a huge project. And you comment, Chris, on the expansiveness of the subject and the different kind of facets of the tourism [00:03:00] industry we were able to look at.And really I have to say that I'm happy that we got to touch on all those points and to the chagrin of my personal sleep and Tyson's as well, but it started off small, I have to say that, and it grew into something tremendous that I think we're very proud of.Tyson: It really was a natural progression of our desire to raise awareness about responsible tourism and its consequences. We had our world premiere, honestly, I think it was about two years ago now at the Vancouver International Film Festival, two years ago. And a little over two years ago, a little over two years ago.And the film is still doing a festival run. Just last weekend, Jesse was at the the Innsbruck Film Festival and it's still been getting a wonderful response, great conversations around it. And we're streaming on platforms around the world, you know, Crave in Canada, Hulu in the U.S., Amazon Prime in other countries. I was just in French Polynesia and was able to find our film on Amazon Prime, which was really delightful [00:04:00] to see that. Jesse: Yeah, it makes us happy as filmmakers to know that the story that we spent a lot of time trying to create in a way that we thought would connect with audiences worldwide is actually getting out there. And so it's really nice to be speaking to you on your podcast as well and kind of extend that out to potentially more people who haven't seen the film or some who just want to talk more about the topics. Chris: And I wanted to ask you two, given the fact that the film was released, you know, still very much in a pandemic during the, the COVID 19 times what the reactions were given the fact that tourism had ground to a halt in that time you know, I received a lot of Mail regarding your film, like, ah, you have to check this out.You have to watch this, right? And so a lot of people really excited about the project, about the film. But then I guess I'm also curious about[00:05:00] if there was much of an industry backlash in regards to the degree of sincerity perhaps around which the film exhibited these kind of deep and sometimes dire consequences that visit themselves on places and people in the name of tourism.Tyson: Yeah. I think the reactions to the film have been in my experience, almost entirely positive. But people don't come to me with criticism, they come to me with congratulations, but I think there's a lot of individuals in the tourism industry and sponsors that have really welcomed our film, The Last Tourist, as a necessary and eye opening piece of work.It sparked a lot of interesting conversations and prompted the industry to, in many ways, I think, reevaluate some of their practices. You Jesse: If we back it up to when we were just when we were meeting with all of the different professionals that we interviewed across the different facets of the tourism industry, I mean, when you and I were writing the story, there were so [00:06:00] many different conflicting opinions on how to solve one issue that we still come across that sometimes when we meet those industry experts outside of, let's say, film audiences.Because When we were writing it, we had to kind of decide which side of the coin we were going to follow through our story with, and whether it's a topic of let's say regulation, that was a topic that Tyson and I had a lot of conversations about when we were making the film because the industry in itself is kind of very polarized in terms of regulation.There's some strong proponents within the tourism industry who want regulation. And then there's some who are very against it. And Tyson and I had a lot of conversations about that. And I think we still do when we meet certain industry professionals out there and I think that's a really important topic as well.[00:07:00] Now that you are bringing up, post covid and the pandemic where we saw kind of what happens when things are shut down. You know, we see both the positive and the negative. I mean we mentioned it in the film, but almost every single person that we interviewed in our film lost their means of income during that time. Gone.And at the same time, the world experienced kind of you know, a refuge from, you know, airplane emissions and damage to destinations. And, you know, these were calculable things like we could see that this was a definite impact. So, I think there's these kind of topics and these conversations are where we see a lot of polarity.And I think that we tried our best to focus on the people and the developing nations in our story. But, there are a lot [00:08:00] of stories that were left on the cutting room floor and so it is good to discuss them after in a podcast like this. I know that's kind of a long winded interjection, but I do believe that we do have some polarity for sure Tyson and I have come across, but just not in terms of what Tyson is talking about, in terms of not not so much with the audiences It is more a bit in the industry. Tyson: I'll share an observation. During the process of creating this film, we interviewed literally dozens of travel experts, you know from academics to tour operators across the industry.It's universally recognized that responsible tourism and sustainable tourism is a good thing. But then when we dive a little bit deeper I found a very fractured kind of industry because everybody believes that they know how to do responsible tourism, right. And everybody else, often, isn't executing responsible tourism correctly.And so, on a foundational level, sure, we all believe in responsible tourism, but I think, the approach at how we get there isn't universally accepted, throughout the industry, and I think [00:09:00] that that's, on a basic level, we kind of explore those themes in the film as well as we interview people who kind of take different approaches to how to engage responsibly with tourists and host communities.Jesse: And we had to make some hard decisions, obviously based on the research that was coming in on what side we wanted to promote in the story. But sometimes I think it's fair to say, Tyson, if you agree with me that we did try to leave it a bit more open for audiences to try to make their own decision based on what we had learned, because it's not always an easy answer for every situation.It's quite nuanced, I think. Tyson: Absolutely. Chris: And you mentioned Jesse, regulation. In terms of the people you interviewed and your research, generally speaking, what does that look like, or what might that look like in particular locales or within the industry?Jesse: Well, I think we've seen quite a bit of it post pandemic because where we thought there was going to be [00:10:00] an ease back into traveling that has not happened. All the reports are coming back in that tourism is back up in droves and a lot of the same problems, if not more are back with travel again.And so we've seen places like Machu Picchu has started regulating the amount of people that are able to visit annually. Worldwide, there's different popular tourist destinations who have decided to limit the amount of tourism and tourists that come to certain destinations.You know, I think when it comes to destinations, we just have to be really careful that it doesn't become a tax that is elitist because that happens a lot with regulation across the board. You've seen it with cigarettes, you've seen it with airfare as well. You're paying a higher price for travel. And although I do believe personally and Tyson, you [00:11:00] can speak to this as well, but because we haven't discussed this recently, but when you put a strong tariff or tax on travel, I think it is important, but I think it has to be calculated so that it's not elitist because if we only have people traveling in the world who can afford it, if it becomes so unaffordable, this is totally against the core value of travel, which is to unite all people of all different socioeconomic statuses and really connect with different cultures and people, and if it's just suddenly becomes for people who can afford a really overpriced flight, I think that will completely take away the value of the core value of travel.But I do strongly believe that, and this I think is a very controversial thing to say. I do believe that things have to be regulated and there has to be something done, especially about the amount of flights that are happening on this planet. Because, you know, for instance, I don't know the statistics for Canada, but I was looking at it the other day for[00:12:00] the UK.And I think something like 70 percent of all flights in the UK are taken by 15 percent of the population, and I don't doubt that that's very similar for a lot of the Western world without knowing all the statistics specifically, so I think that that has to be really taken into consideration when putting out regulation in terms of flights or destinations and such.Chris: Yeah, I've thought about it quite a bit as well, and the elitization of travel, and this understanding that, well, we remove subsidies, for example, for air travel or other things, that we'll just have rich people flying around the world, which is more often than not the case already. Most flights are undertaken for business travel and that's a huge thing that I think most people don't know about, but instead of getting people with corporate backed funds or just rich people flying around the world, we're obviously looking for people with strong principles and good behavior to be the ones [00:13:00] traveling.But then how do you measure that? How do you quantify that in a way that honors the kinds of worlds we want to live in? And it's not just this like, oh, it's impossible. Sure. And we could take that understanding that to quantify such a thing would be next to impossible, but then it could also open up these kind of doors of imagination where in like what kind of infrastructures would we want to put in place that were not maybe Government sanctioned or not maybe top down, but actually from the bottom up, creating these kind of international or intercultural bonds and practices between people that would allow not just for the kinds of people who locals in quote unquote "destinations" want to receive to be able to travel, but then also to create the conditions whereby that kind of, for lack of a better word, behavior or principles could be deepened in the world.I mean, it'd be extremely difficult to, [00:14:00] to manage, but How would you quantify that? How would you measure that? Jesse: Yeah, and I think that's such a, such a complicated issue and I love what you're saying though. I think it's absolutely wonderful. And I do think it's possible to move in that direction.I'm not sure I have the answer for that and maybe Tyson wants to speak to it, but I also want to say that something that I think could be part of the solution is also promoting train travel as well. And I know that that kind of that stops at domestic. But at the same time, you know, I think governments should be allocating a lot of funds to push train travel to create and develop train travel and to also subsidize train travel more because it's just a wonderful way to reduce emissions and to actually continue allowing people to travel. Tyson: Yeah. There are some countries here in Europe, Jesse, and I think Europe is just far beyond a lot of the rest of the world. Canada, I think we're still living in the dark ages, you know, when it comes to long [00:15:00] distance train travel.Jesse: That's a shame. It hasn't been made a priority. Tyson: It just doesn't exist.Chris: Well, I'm curious also for you two how your own travels in your lives might have come to bear on your production or pre production and research in the film. Maybe you could tell us a little bit of how you've seen the world over the course of your life and your travels and if that came to bear at all in the making of the film.Tyson: Personally for me, I traveled extensively, for 20 years prior to embarking on this film. I worked in the travel industry. I worked for an airline for many years. I was also a journalist and I've done work for several large publications, which allowed me to travel to very, some very remote and exotic destinations around the world.This travel really exposed me to the beauty and the wonder of the world. But also the environmental and the cultural challenges that a lot of these destinations face. You know, the experiences, with travel for both work and for pleasure, I think they served as a [00:16:00] catalyst, for me just to delve deeper into this topic.And so when I was approached about directing and writing a film on this topic, I don't think there could have been a better fit. Like it just, everything just kind of fell into place and I just felt like I was really well poised because prior to that I had traveled to 70 different countries in a number of different capacities.I had personally engaged in a number of behaviors that we are critical of in the film in terms of animal interaction, you know, interaction with other cultures. And my travel through two decades was really an eye opening and learning experience for me. And what this film really is, I think for me and in many points in the film is a reflection of my past travels and things that have been illuminated in my mind in terms of what are some important aspects that we really need to address if we want to be more conscious and responsible travelers.Jesse: And I think from my end I surely [00:17:00] had not traveled to as many destinations as Tyson. But I did indulge my wanderlust in my twenties and thirties. I lived in a few different countries, Holland, South Africa, Germany, Canada. And I think that the absolute best aspect for me personally of travel is meeting the people.I absolutely love meeting people in different cultures and seeing the differences and the similarities and learning the wisdom as much as I possibly can in such a moment of my life, when I'm in a destination, if it grants me such a gift. And I think from that, I still do have such a deep, deep gratitude to my privilege and being able to travel in and meet such people.I've made such beautiful friendships over the course of 20 years and many I still keep in touch with across the various places I've lived. And I think that when you come back, [00:18:00] perhaps from living in different cultures in different countries and you come back to your home, the place you were raised in and where you were born and where you were raised culturally, and you can note the vast differences, and it's not a negative thing, but you start to pick up on the ways in which many people can see different cultures or different countries in a way that is completely disconnected from the actual truth and and this knowledge often comes with privilege.I was privileged enough to be able to travel to these destinations to meet certain people and to dissuade certain prejudices, but not everyone can. And so part of this film, I have to say, ironically, is that if you can't travel, this film is also a wonderful film to watch because it's something that you can meet these people [00:19:00] in these destinations.You know, there's so many places that I've been to also that are so many places I have not been to that were featured in the film as well. And with documentary filmmaking and making, and especially as an editor, I really do feel like I get to know these people so well, and I don't think that's just exclusive to myself.I think audiences, hopefully, if I've done it correctly, if Tyson and I have, have made the film correctly, that these people's hearts have come through in the film. And, this is something that Tyson and I really worked hard on. And I'm sorry if I'm deviating from the question a bit, but it does connect very deeply to my love of travel is is people and also my love of editing people and so it was something we worked really hard to focus on is how do we give these people a podium. They have their voice there. They're saying their truths. How do we give them a podium [00:20:00] and as the white filmmakers who are coming into different countries, how do we take a step back and really let them preach their wisdom? And so it was a balance for us really in finding the right voices, obviously speaking to the right professionals and speaking to professionals within different cultures that you see featured in the film and really making sure that their knowledge, their voice, their direction was giving us direction on how we edited and formulated the story and stories of everyone that we met in the travels of the production as well. Chris: And on that note, I'm curious for each of you, what was the most important topic or theme that came up in the film for you personally?Tyson: For me, maybe it's an echo of Jesse's sentiments there, but really it comes down to the impact on the communities that so graciously host us when we when we do travel. Travel you know has you know has an encyclopedia [00:21:00] of challenges that come with traveling responsibly unless we address the people. And I think we address this and the the film addresses this, but we can't begin to you know to start focusing on the environment unless we first focus on the communities who are there and helping them emerge from poverty. We can't begin to focus on how we can solve the problem of poaching in the African savannah unless we first address the root causes of why it's there and how it affects the host communities and how poverty affects people's decisions to be involved in this trade. Jesse: That was something that Jane Goodall was was really adamant about speaking in the film about as well Tyson: Yeah, and so to answer your question Chris, I mean ultimately it comes down to the communities and the people, the humanity of it all. First, we need to address the human aspect and then we can address the secondary aspects of what it means to be a responsible traveler.[00:22:00] Jesse: So for me, personally, the most incredible voices in the film that when they came in, I just thought, "oh, wow," were definitely Lek from Elephant Nature Park and one of our contacts in Kenya Judy Kefergona, who ended up being one of the main speakers and narrators throughout a huge portion of our film.These two women were just heroes. Like just with Judy, with the words that she was able to express for the people working in not just only the tourism industry in Kenya, but the people of Kenya who were vulnerable to unethical tourism, and then speaking to so many different subjects that were connected to so many different stories worldwide with such eloquence and such power and such knowledge [00:23:00] and encourage really, I think. She spoke about these topics. I was just enamored, just blown away and so grateful for her coming onto our film and Lek Chailart is just a modern day hero. She is the tiniest woman with the biggest heart who when I saw her story in our film against the backdrop of these beautiful giants, these elephants that she has rescued. And essentially she's an elephant whisperer in the truest sense of the word. And it's just such a magical thing to see.Listeners won't be able to understand this. I'm getting goosebumps when I just talk about her and this was the kind of thing that when Tyson and I were looking through footage and looking through stories that we were looking for, "Oh, that's the moment, ah! the moment. I got the goosebumps. That's it. It's there. And we found it in the stories, not just these two women, everyone you see featured in the story and some that were left on the cutting room floor, unfortunately there that gave us beautiful insight that we still used in crafting the story, that just wasn't able to [00:24:00] make it into the actual film for timing constraints.But really, I would have to say that these two, it's not specifically the stories, although both of them touch on really important stories, including child welfare and animal welfare, which to me, those two stories were really close to my heart. And we felt really strongly that they needed a really important part in the film.But it was really these two women who I just felt so grateful for in the film. Chris: I mean, the, the chapter on animal welfare was quite devastating for me in part because it had reminded me that in my early twenties, I had visited Thailand and I had gone to an elephant sanctuary. Not a zoo but a sanctuary, and had the opportunity to ride an elephant for a short time, and I felt really uncomfortable probably because I was on top of an elephant, just the kind of immediate awkwardness of such a thing, having never seen one in person, having never [00:25:00] experienced that before, but also kind of like, "what am I doing here?" And so, that part of the film really kind of opened up for me why I felt that perhaps existential discomfort, not just about being on top of an animal of that size, but in the context of the dynamic, you around how that was happening and why that was happening and not having the context for it so long ago.And of course, this is one of the things that we touch on in the episodes, in the interviews, in the podcast, is how can we come to understand these things when our visits are so short in these places, when we are only in a place for just a very brief time and there's really no context for the history and the culture and the political dynamics that surround these things.And then, most travelers, most tourists just end up leaving and the consequence of one's presence on the scene is kind of forgotten, at least by the tourist or traveler. Yeah, so thank you for [00:26:00] for that. Jesse: That question did come up actually at the recent screening of the film in Innsbruck at the Nature Film Festival, whereas someone in the audience asked very specifically, even though it would be great to stay at a destination for a long time, most people are, saving up for short travel when they have time off work. And they need to take this kind of tour because they can only afford this one. And what do you say to those people who want to travel better, but feel like they're kind of stuck or don't know where to go. But I would say in short, I think that touches on an issue that we have in the modern world with a lot of things. We are all overtired, overworked, and we don't have time to be ethical, we don't have time to do the research, we don't have time to investigate, if anything is against our core values, and we don't have time to and I get that, you know, it's not easy for everybody.And if you do have the [00:27:00] time and you are able to really do a deep dive then you're very privileged, because you have the time, which just means that you have the money. So we did try to give a lot of smaller tips at the end of the film in terms of how you can do smaller acts of, of kindness and of conscious traveling, to travel local, to put money into local economies to make sure that you're not requesting your sheets to be washed every day, making sure that you're traveling using reusable, to make sure that you're and I guess this goes into a little bit more of the extensive questioning is to ask the destination that you're traveling to what their policies are in connection with the locals, in connections with the environment. Unfortunately, there is a lot of greenwashing in tourism. And you know, that's in all industries right now worldwide. So it's not going to be so easy for someone who isn't an investigative [00:28:00] journalist to really find out the truth behind it all the time, but we can do our best.And there are quite a few links on the website thelasttouristfilm.com where you can see some of the different organizations that we spoke with that have lists upon lists of different collaborating companies that you can look to that can can show you places that are not greenwashing or that are working with locals, but back to the idea of taking the time and it is about taking the time, whether it's an hour even, just to take the time and do a bit of research and this especially comes back to the topic of child welfare and people who are still, en masse, volunteering worldwide to orphanages and orphanages where children have existing family members and that these orphanages have become of monetary value to developing nations [00:29:00] because they make money and it's really easy for us to pass judgment on places that do this, and it's definitely wrong, but if we as travelers are going there and saying with our travel dollars, this is something we want to invest in, then people in developing nations are going to say, this is how I make money.And it's the same with animal welfare. You pay for an animal sanctuary that you haven't done the research on. They're going to keep perpetuating that cycle. It's going to be the same with child welfare. So, if you do want to be ethical, you have to fit in a little bit of research in your travel time. And that's it. And I know it's not so easy for everybody.Tyson: Yeah, I'd like to expand a little bit on a theme that sort of both of you have talked about. Jessie, you had mentioned greenwashing. Chris, you had mentioned that you had been to an elephant sanctuary in Thailand. One of the most memorable takeaways that I had from this film is just the massive amount of greenwashing [00:30:00] and deception that exists within the industry.I came to know a lot of companies that appeared to just be normal travel companies doing the same thing that has been going on in the travel industry but marketing "green" although nothing really changes. It's just their marketing strategy that's changed. If we look at, for example, in Thailand, there are a number of places that call themselves an elephant sanctuary, an elephant retirement home, an elephant rescue center. And we can't rely on those names anymore to know that the service provider is giving us an ethical experience. We really need to ask deeper questions. It's the trend in the industry now to use this type of language, " sustainable," "responsible," "eco," all of these buzzwords.And I've just come to find these completely meaningless, in those terms. We really need to ask some deeper, more challenging questions of these experiences and the tour operators and the service providers to actually know whether what they're doing is ethical or not because it is very easy to call yourself a [00:31:00] sanctuary, when in fact, it's the complete opposite. If it truly was an elephant sanctuary, we wouldn't be able to ride the elephants, in that place and they would be providing them a life of dignity free from exploitation. And it's the same with children. Calling these places orphanages ,I think it's a misnomer. It's incorrect. You know, 70 percent of children who live in these quote unquote "orphanages" actually have at least one living parent.But it's all under the guise of trying to gain sympathy from the traveler. "Oh, come see an elephant at a retirement home. Come see a child at an orphanage." It's just a piece of marketing that doesn't reflect the truth. We have a lot of companies doing the same unethical practices they've been doing for decades.However, they've just really changed their marketing to appear more green.Chris: Yeah, it seems to be a never ending cycle where responsible isn't good enough, that now we got to be regenerative. So many of these words just end up becoming, marketing tools. Tyson: I'm hearing that word a [00:32:00] lot more these days as well. Chris: Yeah, so how do we proceed, not just with a degree of dedication towards research and, and and planning, but also deep discipline as to how these words are unfortunately, as you said, becoming kind of meaningless in their significance..I want to take a little turn with you both to ask about what happened as the film was going through post production and its release because most of the footage that you have is quote unquote pre pandemic and the COVID 19 pandemic hit, obviously, in 2020 and from what I understand your team was entering into the post production process and, of course, tourism ground to a halt almost completely, worldwide. And throughout the film, there are people that you two interview that contend with the consequences and context of tourism and look [00:33:00] to a more honorable path that it might take. But I'm curious in regards to the people that you did interview who had found a degree of success and perhaps within a more small scale, a more honorable way of doing tourism that those flights, those trains, the reception of people in their villages went from a hundred to zero, basically overnight.So much of the dire consequences of tourism revolve around or end up as exile, local people can't afford to produce food anymore in their places. And the education systems kind of move them towards getting jobs in the next city or even in other countries, and I'm curious in the context of the film and I guess the treatment that you put forward, you know, never perhaps thinking that something like this could happen. What was the fallout among the people that you interviewed in regards to their understandings of tourism and if it was [00:34:00] still this kind of for lack of a better word, golden goose or calf or sacred cow that they could rely on for the rest of their lives.What did you hear kind of in the ether as you were doing that post production? Tyson: I think it substantially expanded the wealth gap. I think during COVID the people that were hit the hardest are the people in the tourism industry that often are paid the least.Depending on what their jobs were, they were the ones who were suffering layoffs and they were the ones whose businesses couldn't afford to sustain themselves. And so I think, for the most vulnerable populations, the pandemic was absolutely devastating.People couldn't afford to put food on the table and pay rents, not just, I think, in developing countries, but even in the developed world. Airlines were laying off massive amounts of employees. Hotels were cutting staff. This was a global challenge that affected everyone. However, at that same time, we did hear stories that, you know, CEOs of major airlines were taking million dollar bonuses[00:35:00] for cutting costs. And that was an observation of mine, through that experience, you know, that the people who needed tourism the most for daily sustenance and to put bread on the table were the ones who were absolutely the most affected and the people kind of at the top of the tourism industry were still fine and they were also taking bonuses, which really bothered me just because the wealth gap just seemed to get further and further apart through that. But we do know, with the stories, that were featured in our film... there's a wonderful lodge in Ecuador, a homestay that we look at and they lost their income during that time.The elephant sanctuary in Thailand, the one that does do great work, not one that greenwashes an elephant sanctuary but they lost a lot of revenue where it was very challenging to feed the elephants and to house the elephants because they didn't have that revenue coming in to support the project. Jesse: We were hearing in in Africa, right?Some of the rangers [00:36:00] were who were placed in defense of the elephants and animals and rhinos and such were just gone. They just weren't there anymore at that time because if they're not getting paid, they can't stay there. And so poaching also went up in those areas as well.But you know, I think that in terms of what the positive was, I think a lot of people were hoping that post COVID that there was going to be hope for change, for renewal for doing things differently. And I think this was in when we were in post that this was maybe, potential to show people how things can be different by showing kind of the polar opposite and the effect and also showing how intrinsically connected people's livelihoods are to this industry and how vulnerable they are to massive change like this. I mean, the Dominican Republic that has [00:37:00] almost 90 percent of their GDP related to tourism? Tyson: Island nations are the ones who are most affected by tourism. You know, the Bahamas, the Dominican Republic. The Caribbean islands specifically. I don't know if it's as high as 90%, but the vast majority of their GDP from island nations comes from the travel and tourism industry, and they were certainly hit the hardest during the pandemic. Jesse: And so I think that we can see from that, I think the hope for us during post production was, okay, you know, this is a horrific blow to the people most vulnerable in this industry, but if we can get this message out after the pandemic, perhaps this could be something that could really change. And to be fair, change is slow sometimes and I mean, it's wishful thinking that post pandemic right after that suddenly everyone was going to become ethical travelers but I see so much potential just in the discussions online the people that we're [00:38:00] meeting at different screenings, the interest that we're getting worldwide, just to have these conversations and see that there is an interest in change.And when you talk about moving change, it does often come from the people, and I think, across the world over the past few decades, we've all been seeing again, I think our power as people, as citizens, as individuals, and the power that we have to come together over certain issues that we feel need radical change and even if it is slow change, I do see the inklings of that change happening within the tourism industry and I think it's really positive.Tyson: You still have a lot of work ahead of us. Chris: Amen. I think that's really, really important and, and perhaps fits properly inside of the context of the dominant culture, at least of North America or the quote unquote West, wherein, the pandemic also produced a deepening of the [00:39:00] culture of "everything now."Suddenly it was like, "okay, well, I can't go out here, so everything has to be deliverable, and at the tip of your fingers, right? And what might come with that is this notion that, we also expect social change to happen overnight. Right? And that it might be overshadowed by this kind of dominant culture of wanting everything now and also the unwillingness to do the necessary work, which is sometimes generational.Right? Not just a week or a month or a year, but generations.In that regard, the themes of the film are extremely broad and you go into a lot of detail and depth with each. So I'm very grateful for that, but I'm also curious what might've gotten left out.What might, one day end up on a director's cut of the film. Jesse: Oh, so much. Tyson: Ask the editor. Jesse: Oh. Well, I mean, you had so many stories that you brought [00:40:00] to the table that were beautiful, beautiful stories. Forgive me. I don't remember his name and you'll remember Tyson.But one of the. Tyson: I know who you're talking about. Jesse: Oh, do you? One of the men you interviewed at the UN had a really beautiful story to tell. And then we also had a really beautiful story from Costa Rica. An animal welfare and environmental story. Oh, my goodness. There were so many stories.Tyson: We had a wonderful story from Cusco Peru with an organization that was putting the first female porters on the Inca Trail and really fighting for gender equality on the Inca Trail.Jesse: What was that company's name again, Tyson? Well, the reason why I bring it up is because it's so unique that I just think, "oh, we should definitely highlight that to listeners" because they were taking female porters and they were reorganizing the whole industry based on their [00:41:00] precedent because they were treating porters with dignity, with safe conditions, with, valuable wages and this is something that's just not done across the industry on the Inca Trail with the male porters and there was some really, really horrific footage that we came across of the way these porters were living just not too far from where the tourists were sleeping comfortably in their tents. And this is a wide practice across the industry and Miguel from this company Evolution Treks and the gallon, do you remember his full name, tyson? Tyson: Miguel Angel Gongora Jesse: from Evolution Treks, yeah, a wonderful, wonderful man who was really, really passionate about changing the industry. And we spoke with many of the female porters, and yeah, that was a story that we were really, really sad to lose that [00:42:00] story. Tyson: Yeah. Yeah. With only 90 minutes, you know, we yeah, really had to make some challenging decisions on what to be included in the film and I really feel that a 90 minute film can scratch the surface, it can spark some interest in a number of these themes, but certainly, and maybe that's next steps for us, but I certainly think that what this the subject matter, deserves is a series, you know, cause we could dive much deeper.Jesse: Tyson and I have been talking about it. Tyson: Yeah, we, we can dive much deeper into each of these subjects and create a 90 minute doc on each of them. And so, at some point in the future, we'll be making some pitches and writing some additional treatments into how we can make a six part series and expand on the themes in this film, you know, from the environment to gender inequality to animal welfare and everything deserves a lot more time, but hopefully, what we've done with this film is just been able to spark a number of conversations and inspire people to go and do some additional research [00:43:00] into how these themes impact these communities.Chris: Yeah, well, thank you both so much for that. I have a lot more questions, but maybe that'll also be saved for a sequel. Jesse: Yeah, we'd love to speak to you again, Chris, if you'd like, in the future. Chris: That'd be great. Before we finish, I'd like to ask you what might be next for you two in your respective filmmaking and writing lives?Tyson: My world currently revolves around photographing wildlife particularly large wildlife. Yeah, I've been spending a lot of time traveling recently and in the ocean. I mentioned to you, I mean, tomorrow I'm hopping on a flight and I'm heading to Norway to go photograph large marine mammals in Norway. So that's that's where my life is taking me right now is in pursuit of wildlife filmmaking and photography. Jesse: Although I wish I could, I could say similarly, I right now my life is a little bit calmer. I had a baby 20 months ago. So, I've been on an extended maternity leave [00:44:00] and I'm currently just in development of projects for the future.I finished up this project in full right before my child was born. And I still have a few projects that were finished up recently, but as of the moment I'm completely in development and yeah, I really look forward to developing something with Tyson in the future in regards to what he was talking about a series on travel and on a lot of stories that we were so passionate and so blessed to come across, but that we just didn't have the ability to give the podium to in our film, but yeah, so I'm really excited for the future and just coming from this festival that I was at recently, I'm just so invigorated with the energy of the audiences and the passion to travel better and to demand better travel from the industry and from travelers as a whole. So this just really gives me a lot of hope. Chris: Well, congratulations on your [00:45:00] motherhood. Thank you. And having a little one in your life and this work and Tyson and the opportunity to be able to travel as you do, and to try to honor the lives of those beautiful four leggeds and no leggeds and the tailed and finned ones. So finally, how can our listeners watch The Last Tourist? Are there any screenings coming up? Jesse: Definitely on the website, thelasttouristfilm.com, right when you go to the webpage, there's a whole list of all the different avenues you can watch the film.But maybe Tyson could elaborate more. Tyson: Absolutely. Yeah, you can connect with us on Instagram at Last Tourist Film, as well. We're just kind of wrapping up the fall festival season before we do some additional screenings next spring. We just wrapped up in Germany and Iceland.I think streaming is the best way to find us, in Canada we're streaming on Crave. In the United States, we're streaming on Hulu. Delta Airlines, Emirates Airlines. In other countries around the world, you can also find us, I [00:46:00] know in France, in French Polynesia, Hong Kong on Amazon Prime. And there's a number of other markets that the film will be opening in very shortly which is really exciting.It's not available everywhere, unfortunately, around the world, but if you have a desire to see it, you know, please get in touch with us and we'll do our best to make sure that you have an opportunity to see the film. You can host a private screening. There's a number of ways that you can see this film, but please let's keep the conversation going.Let's get in touch. I'd love to hear from a number of the listeners, and let's find a way that we can allow everyone to see this film. Jesse: And what's been really exciting is we've got a lot of interest from schools. So, educational screenings have been happening all across the world, and that's just been amazing.Those are the best for us, I think. And I would just say, if any of the listeners have any further questions for us, we're always open to taking questions and chatting. Personally, Tyson and I can both be reached at our Instagram. So you can I think Tyson's is @TysonSadler, and mine is [00:47:00] @JesseMann, two S's, two N's. So if you want to leave that for your listeners, they're welcome to contact us. And anyone who's listening can contact us directly that way, who want to host a screening or find out ways to watch. Chris: Absolutely. Yeah, I'll make sure that all the websites and handles are available for our listeners at theendoftourism. com. And on behalf of them on behalf of myself, I'd like to thank you both for joining me today. Your film is incredibly inspirational, necessary, and deeply important for these times and I don't doubt that our listeners think the same. So, I wish you the most beautiful paths ahead on your travels with your families.And ...We get the opportunity to speak again sometime. Tyson: Thank you, Chris. This has really been a meaningful conversation. Thank you. Jesse: Yeah. Thank you so much for giving us this space and I wish you all the same. Chris: My pleasure. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

The End of Tourism
S5 #7 | The Dreamwork of Instagram w/ Sean P. Smith

The End of Tourism

Play Episode Listen Later Jul 18, 2024 52:45


On this episode, my guest is Sean P. Smith, an Assistant Professor in the Department of Culture Studies at Tilburg University in the Netherlands. Much of his research has focused on the relationship between social media and tourism, and how colonial histories shape today's ideologies and visual cultures of travel. The inequalities that result from many forms of tourism development, he argues, are intimately linked with how tourists create content for Instagram, TikTok, and YouTube, and the ways tourists frame themselves in landscapes and alongside local residents often replay colonial hierarchies.Show Notes: Why Study Instagram?The Pre-tour Narrative (Edward Bruner, Raul Salazar)The Habitus of Tourism (or How We Got Here)The Promontory Witness (or that photo)The Logic of InfluenceEmptying the Landscape (John Urry)The Techno-Generational DivideMedia EcologyOther Horizons in OmanHomework:Sean P. Smith - Tilburg UniversitySean P. Smith: Twitter / X | Instagram | Google Scholar (Articles)Transcript:Chris: [00:00:00] Welcome, Sean, to the pod. Thank you so much for being willing to join us to speak about your work. Sean: Thanks very much for having me. Chris: My pleasure. I'm curious, Sean where you're speaking from today and, and how the world is, how the world might be housing you there. Sean: Well, it's very rainy and dark. I'm in the Southern Netherlands, an area called North Brebant, where I just moved less than a month ago.So, in many places of moving around, if so, getting used to this one. Chris: Sean, I found out about your work from one of the pod's listeners who sent in a link to one of your academic articles entitled, Instagram Abroad, Performance, Consumption, and Colonial Narrative in Tourism. Now, I've been ruminating on the effect that social media has on tourism, spectacle, surveillance, and cultures of disposability for a long time now.So I'm really excited to speak with you today. And [00:01:00] likewise parts of the podcast are shared via Facebook, Instagram, Twitter, so there's always this sense of kind of feeding the machine. unaware and perhaps more aware each time. And so first then, I'm curious why focus on Instagram in the context of critical tourism studies? What makes it different from say Facebook or Twitter?Sean: Yeah, that's a really good question Chris. I think with Instagram, in many contexts around the world, certainly not universally, but it's the social media platform that is most readily identified with not just tourism, but the way that people represent themselves engaging in tourism. It's very image driven.Of course, people do write captions, they do engage in other forms of storytelling, but nowadays it's mostly pictures and especially reels, arguably in the last few years. And for a long time, this [00:02:00] has been could almost say the dream work of tourism going back 200, maybe longer years. So even though today, I think you can find forms of tourism well represented TikTok to varying degrees on Facebook.Instagram, at least in many of the places where I've conducted research, is the place that one goes to both learn about places to travel and also to show how oneself travels.Chris: And I'm kind of imagining that we're more or less in the same age range, but I'm curious if on your travels, you mentioned just briefly that you had also spent time backpacking as a younger person and I'm curious if Instagram existed at the time and also if this dream work was evident to you in your travels.Sean: It was. I think I was relatively young when I got my first [00:03:00] smartphone, but certainly not as young as people nowadays. I must have been maybe 22 or 23. So I did have some years of traveling before I think Instagram really reshaped the way that tourism is done, not just for people that actually use this app, but regardless of whether or not anyone's ever downloaded it on their phone, I think Instagram has had a significant impact on the way that tourism is done. So when I first got a smartphone, I was in a period of my life where I was able to travel quite frequently and that was something that I was really pursuing at the time. And Instagram was a way that I was able to engage in a long running interest in photography, but also kind of a diary of where I had been, but certainly one that was legible and sort of visible to other people.And it was through that, you could say "performance" of travel that began to think a bit more critically about this app and other social media [00:04:00] platforms as well. And the way that it was reshaping tourism destinations. Chris: Mm. Mm. Yeah, you mention in your work this notion of the pre tour narrative.And I'm wondering if we could unpack that a little bit for our listeners and what part Instagram plays in this pre tour narrative. Sean: Yeah, I'm very happy to point that out, because I think this is, this is an important way to think about tourism, and that particular phrase I'm drawing on the work of Edward Bruner, who was an American anthropologist.And that's also been picked up in other realms to be identified as what other people have called tourism imaginaries, such as in the work of Raúl Salazar. So what this concept of the pre-tour narrative describes is that before people travel to a particular destination, they are exposed to [00:05:00] various forms of representation.And oftentimes this is very image based or narrative based. So we would see this maybe thinking back in the era before social media, images encountered in magazines and films, perhaps novels, other forms of storytelling, such as just talking with people who have been to places that one wants to travel.However, in social media, as it's become more integral to the way that people conduct their everyday lives, let alone traveling. It's become the dominant engine for the way that the pre tour narrative is formed. Many people who use Instagram as a space to learn about places to travel, they will encounter images of these of these places on this app or and not just sort of the way that it's portrayed, but what people do in these spaces, the people that live [00:06:00] in the places they're going to visit. So, this process of the formation of a pre tour narrative has really always been a part of tourism. But I think it perhaps it's if not accelerated, then certainly taken a bit of a different form with the advent of social media.Chris: So on some level, it's not just the question of what you're going to go see, but also how you're going to see it, how you're going to stand in front of that tower or restaurant and see, experience, what's there. Sean: Yeah, that's a really good way to put it. Chris: And I know it's a little early in the interview, but I'd like to jump into the heart of the matter and your critiques, if we can. You know, you wrote this incredible article Landscapes for Likes, capitalizing on travel with Instagram. And, in that article, you wrote that, deep breath, "Instagram's networked architecture and affordances produce three [00:07:00] outcomes that circulate and magnify utterances about travel to a degree impossible in pre-networked media.One, a mediated travel habitus hegemonically informs prevailing aesthetic norms. Two, the scalability of embodied performances entrench the motif's narrative underpinnings. And three, the monetizable market of Instagram encourages neoliberal notions of the branded self." Now that's a beautiful mouthful. And so I'm wondering, if you might be willing and able to flesh out these three outcomes for our listeners. Sean: No, that's brilliant. And it's nice to talk about these things, perhaps when they're written that can be quite a bit denser.So maybe we can start with the first idea, this mediated travel habitus. And with the word habitus, I'm trying on the work of [00:08:00] the French sociologist Pierre Bourdieu, who theorizes he's talking about class and culture and ways that people display their belonging within a particular class.And the reason that I'm looking to Bordeaux here is tourism and travel, really, it's important to look at this as a practice that has been connected to what Bordeaux might call the pursuit of distinction, to the search for an acquisition of cultural goods. You know, we might think of cultural goods as being a painting or a taste and a particular kind of music, clothes, certain way of speaking even. And when one amasses certain, certain cultural goods, and they're recognized as being part of the upper classes, being marks of somebody who is [00:09:00] sophisticated, somebody who is typically from a fairly privileged financial background, these cultural goods are desirable.So, this background I think is important because tourism from its modern beginnings in the 18th century has been obtaining these experiences and often physical artifacts that can be a way of claiming a certain social status. So, maybe you've discussed this in other podcasts already, but, when the Grand Tour began in the 1600s, but really took off in the 1700s there was this process in which the aristocratic men, young men, were sent on a tour around Europe, and they would go to capitals like Paris, later Vienna, and then especially places like Rome, and, where they could encounter the remnants of the Roman Empire and classical learning. [00:10:00] And this was meant to do a few things in the first sense. It was meant to introduce them other parts of the world, to certain historical understandings. They could refine their Latin. They could get better at French and then they could go home and be recognized as a sophisticated member of the aristocracy. And this practice really became quite popular up until about the turn of the 19th century, when it stopped briefly because of wars on the European continent, and then after the Napoleonic Wars ended, it basically exploded. So when we think about over tourism now in 2023, this was, you know, 1815, 1820s, and this was a period where all of a sudden there were more tourists than ever before.And what that meant is this practice, which had only been done [00:11:00] by the wealthiest classes, was now something that the middle classes could engage in and that produced a kind of anxiety, where how was one able to become a distinguished or sophisticated traveller. How was one able to obtain the cultural goods provided by travel if everyone was doing it?So, the habitus of tourism, the kind of implicitly learned practices and sensibilities that developed during the Grand Tour experienced this period of challenge where people had to look for a way to find distinction by other means. And I think this beginning led to this friction where now you see people who are trying to go places that no other tourists go, trying to take pictures that no other tourists have taken, trying to be the only person in a picture of a [00:12:00] famous place. So this way of understanding how to be a tourist has become enshrined in the kinds of images that we see in a space like, like Instagram to the extent where I think these images are circulating the ideologies of tourism. The scalability refers to, in social media studies, the way in which a single image can achieve a degree of circulation that is not really possible in pre-networked media. So, by networked media, we can think of platforms like Instagram. We can think of Twitter, anything where the possibility of likes and retweets or reposts achieves a degree of visibility what we might call going viral.So what I was writing about in that article was this particular composition called the "promontory witness" where you have typically one [00:13:00] person who's standing on a promontory or we can say the edge of a cliff the top of a building, in front of a waterfall and they're looking really, really small as compared to the vast scale of nature.And people see these images and they understand through the mediation, the widespread circulation of these images, that this means something important about travel. This is what I mean by the mediated habitus of travel, that taking an image like this and being a person in a promontory witness image has a particular value. It is a way of claiming distinction, again, in Rodrigo's terms. And by taking a promontory witness image, one is able to circulate that image on Instagram in a very different way than before the social media platform existed. So, you know, we think about images circulated in tourism before Instagram.It would either be, say, in a family photo album. That people used to have projectors. [00:14:00] People used to maybe send holiday pictures to family and friends, basically whoever they could, you know, show it to, but this is a really, really small circulation, unless somebody was able to get an image in a magazine or some sort of formal publication. But what really shifts with scalable social media is that somebody can take an image and there really is the potential to go viral.I think in Instagram, the potential to have an image seen by a really significant number of people is less than on a platform like Tik Tok. But there remains the possibility if I post a promontory witness image and I put a geo tag in a place that is particularly trendy at this, at this moment and I put the right hashtags that thousands of people can witness this image and because of that possibility, I think there's a degree of enlistment, a degree of interest in [00:15:00] participating in this trend because taking a promontory witness picture is going to have much more possibility of going viral of leveraging these architectures, these scalable architectures.Much more so than if it just take, if I take another image that isn't so popular on a platform like Instagram. Chris: Thank you. Thank you, Sean. Yeah. So there's, there's a lot in there I'm going to come back to in just a little bit. But I wanted to just finish off this one last part because you kind of, you know, mentioned it a little bit.The monetizable market of Instagram that encourages neoliberal notions of the brand itself. And, you know, I pulled this, this other sentence from one of your articles where you write that "as a banal mediator of travel and tourism, Instagram can encourage tourists to imagine themselves as a capital generating brand." Sean: It's really a comment on the attention economy structure of social media platforms, [00:16:00] where I want people to see my pictures and I want to get likes.And I say that very much as being somebody who continues to study social media and tourism from a critical angle. When I post something I'm always aware of how it's going to be received. Some part of me, even when I'm very aware of the issues with thinking this way potentially is I always want it to gain more visibility.If I post something and it has less likes than something I posted previously, this will likely incur some degree of thinking, what did I do wrong? What could I have done differently? You know, maybe I'm just produced such interesting content. And what I think is really taking place there is that we're constantly thinking about ways to achieve visibility in a way that is not dissimilar to the kind of negotiation that celebrities and [00:17:00] other public figures have to go through when managing their, what we might in today's terms, call their brand, where because there is always this metric of how popular one is or how visible one is in the form of likes or in the form of reposts or retweets or what have you it's means that we develop a way of always orienting towards this possible public. We're always thinking about the people that are going to see whatever kind of thing we say online, and we, I think much of the time, are hoping that it's going to be received.If not, you know, people are going to like it, if it is going to maybe change the way that people think about something, if it's going to influence them in some way. And Instagram, of course, is like other social media platforms, is monetizable in the sense that when one gets a lot of followers, you know, if I continually create fantastic travel content and I get tens of thousands or more followers, then [00:18:00] that means that I am able to start making money from it. I'm going to be paid by different companies to come and stay at a resort or go on some sort of guided tour and take an image or make a reel of this experience and post it on Instagram, talk about how great it was, and then tag the company.And that's a way of them bringing in business. This is how advertising works. So, people become advertisers. But even before that influencer level, I think those of us who are not influencers, and I am certainly not, there's a degree to which we are participating in this logic because even if we don't have any designs of becoming influencers, we still want our posts to be liked and this ultimately influences not just posts we make, but the kind of traveling we do and the kind of relationship we have with the places to which we travel.Hmm. Chris: Well [00:19:00] contentious at the very least. But thank you for that, Sean, for being able to flesh that out for us. And I'd like to return back to this notion of the promontory witness, and you know, because even before Instagram I remember seeing in my backpacking years, these same photos, right?The photo of the person, of their back to the camera facing the open horizon, you know, whether it be a cliff face or a desert or whatever it is, and spreading their hands or arms and, just this kind of emanating freedom, I guess.But you also mentioned that this kind of perspective, if you want to call it that, manufactures emptiness because there's nobody else in the photo, and this is so much a part of the kind of sometimes they're Instagram reels, or sometimes they're photos of people, what it looks like when people are at tourist destinations, actually taking the [00:20:00] photo in front of the Eiffel Tower, or the Great Wall, or the Leaning Tower of Pisa, or whatever, and there's actually hundreds.And thousands of people taking the same photo or trying to, and everyone wants to have that photo without anyone else in it. And so, just a little preamble to the question again, in Landscapes for Likes, you write that "this manufacturing of emptiness privileges tourists as the sole consumers of a landscape, and with its residents hidden from view, a landscape is voided of its human and temporal context. Thus abstracted, place is relevant as little but a visual commodity." And then just another quote that I think brings a little something else to the picture is that "the promontory witness motif scrubs the landscape of the tourist destination of any sign of human habitation, but that of the tourist, singularly pictured in a position of mastery that confers [00:21:00] possession over the destination." And so there seems to be a kind of shared understanding in critical tourism studies that modern and especially social media based travel photography emphasizes empty spaces, of course, minus the Instagram user, the person photographing question. And so I'm curious, why is identifying the emptying of the landscape so important for our understanding?What does it do to us as photo viewers? Sean: Yeah, that's an excellent question and I think I'm very, I'm very interested in this composition, which the lone tourist and the landscape, which, mean, other people before me have pointed to, and at least John Urry.And I think there are two things happening here. For one, it's the kind of picture that's due to the mediation of what we can think of as a travel habitus, due to the way that [00:22:00] people have learned about how to do tourism and to represent themselves doing tourism and the most sophisticated way or in the way that is the most likely to gain them social distinction. They take these images because they've seen these images before and they're attractive images as well. Maybe they're attractive because we have, through seeing so many pictures like them, we've been taught or sort of subconsciously imbibed the aesthetics as being something that we value and are attracted to.One degree of what's of what's taking place. And to another extent, when it comes to this notion of possessing something of being the only person that that goes there, this kind of image of the tourist being the only person in a landscape or in front of some sort of cultural monument is , a way of [00:23:00] claiming a symbolic status, which links back to this ideology of getting off the beaten track. So, I imagine if you're experience backpacking and my own there's a real interest in getting off the beaten path, of going to places that aren't touristy, of being a traveler and not a tourist. And part of the way that the success in getting off the beaten track is signified is being the only person in a photograph.You know, we as backpackers or tourists don't want to be associated with other tourists. And there's very little better way to represent not being another tourist than being the only person in a particular image.Chris: Yeah, it [00:24:00] makes you wonder. And putting together the research for this episode, I came to this, this kind of possibility, question, consternation, And it arose in this way. And so the, the next question, which kind of relates to the last one is, do you think there might be, or is a connection here between the emptying of the photo of humans or locals and the emptying of places of humans and locals, and that is in the context of the gentrification of local people and culture in tourist destinations. Sean: Yeah, yeah, absolutely. It's a very good point. I think especially because gentrification is aesthetically produced through a kind of emptiness or a kind of minimalism. And this gentrified neighborhood is not something that is crowded. It is not some place that there are a lot of wayward signs, [00:25:00] wayward, quote unquote.It is a space which is typically designed according to what might be understood as a globalized regime of clean lines and interesting fonts and a lot of white space. So thinking about the way that that works and everything from upmarket coffee shops to designing neighborhoods that are meant to attract capital on upper middle class consumers and residents.I think that does link quite persuasively with this desire to be the only person within this landscape. I mean, what ultimately is taking place in both processes is that, no matter where somebody is going and taking a promontory witness picture, there are people who live there. There's people who've always lived there and been a part, in many ways, of the land that is being made into a landscape.And by not including [00:26:00] them, within these pictures or in processes of gentrification, actually through state-sanctioned programs or other forms of state-sanctioned investment, local residents are being pushed out to make way for different people, the tourist in this case. There is a process of erasure and, and often what can be conceived as really a very colonial process of taking over, taking over a space and privileging the owners of capital, who in this case, typically are tourists.And of course, it's a little bit different when you're taking a picture versus when you're taking a picture in a place that is not considered part of the Global North. But tourists typically have a lot more privilege and financial resources than local residents.And when they're not in these images, but the places in which they are are included, then at least when we're seeing pictures of it, how [00:27:00] do we imagine who, who controls the space? How do we imagine who has a right to this space? It would be the person in the photograph, the tourist, rather than the people who actually live, work, and, and shape these landscapes.Okay. Chris: Since Instagram tends to be the go to medium for these images and for images in general, as far as social media is concerned, do you think that Instagram then is a tool and driver of gentrification? Could we say that with a sense of coherence? Sean: I think it's as much a tool as, as many other tools and it is very easily leveraged to that end by actors who are seeking to mobilize processes of gentrification. And then I think this is pretty well documented for instance, in Yoo Jung oh's article Instagaze, Aesthetic Representation and Contested Transformation of Woljeong, South Korea.Well, she was [00:28:00] writing about Jeju Island in South Korea, and how once tourists started to take particular forms of images often of being one person in a beach, then different interests were able to move in and realize the value of this image and find ways to capitalize on all of the tourists that wanted to come and take that same image. So what that led to was the beach front where, this is largely a fishing community and other sort of small scale, more artisanal economies, was remade into cafes and restaurants and guest houses in a process that.I think it can be widely recognized in tourism development around the world. But what the author, Yu Jung Oh, is saying, is showing there, is that this was largely motivated by the ability to take this image, that [00:29:00] a tourist could go and purchase a coffee or something, and they would be able to take that image for their Instagram. So there's a really clear linkage there and I think that linkage can be made in many other places as well. But I think in that sense, Instagram and social media is, is can be leveraged for gentrification as, as many other tools can be and are being.Chris: Thank you, Sean. And so, know, for the rest of our time together, I'd like to kind of lean on you a little bit for your personal opinion. I know that sometimes working in and living in academic worlds that's kind of something to be left the doorstep before you walk in. But you know, you mentioned this notion of networked media and pre networked media and kind of social media falling into this wider term of networked media and since these mediums have only come to exist, in terms of Facebook, Instagram, Twitter, [00:30:00] we're talking 15 years at the most, and then the extension or prototypes of those existing in the previous 10. So about 25 years, maybe. And I'm curious in this regard you know, I imagine that you're about my age, maybe a little bit younger so I'm curious if you have a lived memory of how things were before social media and perhaps even before the internet, what do you think we might be losing by virtue of not being able to remember the world without social media Sean: yeah, great question. Definitely. Yeah. Yeah, very good question. Very, of course, fraught. So I guess for context, I was born in 1988. And. So I, got a cell phone at 16, and again, I got a smartphone and Instagram and WhatsApp. So I'm really in two minds about this. And in the first sense, I think it's important to be aware of [00:31:00] how with any new technology there's a great deal of anxiety and resistance and what might be called panic. And this isn't just social media or it's not just television, but we can go all the way back to radio, to novels.People were worried about that, to the written word back in the ancient Greek era. People were concerned that when we start writing things down, this is going to make it very difficult to remember things, and we're going to be less successful orators and our reasoning will be diluted because we start writing things down.So there's always this kind of fear of new technology, and part of me wants to recognize that this is just another one of those periods in which some sort of transformative technology comes along and many of [00:32:00] the generation who can remember what it was like beforehand is going to feel varying degrees of nostalgia for that period.That said, it's also difficult to not, at the same time, say that something really significant has, has, has happened, to not feel, I mean, honestly, I do certainly feel nostalgia for periods before social media. Some of the things which I think have been changed is the interest in finding ways to represent oneself, traveling. And this isn't to say that whenever one goes somewhere, one is always sort of seeing it as if from the viewfinder or, well, it wouldn't really be a viewfinder of a camera so much as, you know, one's phone screen.But that leads to. In being very interested in taking images that would be successful within the attention economies of a platform like Instagram, it can be difficult to [00:33:00] not see the world as if from the perspective of what would make a good picture for Instagram. There's a lot of different people who've come up with critiques of this process.I mean, if you think about it in terms of spectacle, you know, like Guy DuBord's idea that we're no longer, and he was writing in the 60s, you know, that we are seeing relationships, not between people, but between people and images. And so some sort of fundamental human connection is being lost because all we're doing is just relating to images and using images to relate to other people.I'm not so sure about universalizing that idea, but the ubiquity of social media and the Challenges to not somehow be on one of these platforms, in some even practical way does mean, I think, that there are significant influences in tourism as much as anything. Chris: Yeah, my my phone died the other day, abruptly. [00:34:00] And you know, I still have this computer that thankfully allows me to have this interview with you. And I can still access Facebook and Twitter, but for whatever reason, I can't access Instagram. And you know, it's been a few days and I'm really loving it.And then this morning I realized that I had planned to upload a post for the podcast. And then I was just like, okay, well, my best recourse of action is to just stay calm and wait, right? Yeah, and it's a big question, and I think it's something that, I wonder if young people, say people born, you know, 2000 or after would be able to answer with, with any, without having lived in a time without social media, for example. And so this kind of like brings us a little bit towards the towards theme of media ecology, which, you know, we talked about just very briefly before we started our interview here and I had taken Andrew McLuhan's Understanding Media [00:35:00] Intensive last year.He was also on the pod in the, in season three and just generally speaking for our listeners media ecology, within media ecology, the focus is on the medium and not just the message. It's a way of taking to task the context of our technology and not just the content.And so this manufacturing of emptiness of people and places as brands and I'm curious, isn't this to a large extent, also contingent on our tools, on the limits and architecture of the camera, for example? You know, do we stop with Instagram or do we look at all social media and later all tools? Because these media exist within each other, right?Instagram is a medium within the internet, I suppose, and then the internet is a medium within the phone. Maybe you could make that argument. It's not to say, if we didn't have these things, if we didn't have Instagram, if we didn't have [00:36:00] social media, would the promontory witness just disappear? I don't think it's as easy as that. But Would it be as intensely magnified in our time? Sean: So yes, I think the question of magnification is really what sits at the heart of social media because if we're looking at the medium of Instagram, then we have to think about photography and which was invented in the 1840s.And then if we think about photography, we have to think about painting the way that landscape has been represented in many different cultures, both in painting in the Western, Chinese and many other traditions, but then also in poetry and literature. So with all of these things, there's a precedent.And I think if you look at something like the Promontory Witness, this composition and this the visual formation of having one person immersed within a landscape or standing at some edge of a cliff, that's been around for [00:37:00] 200 years at least. You can see some in the later 1700s that look like this, but then the desire to be the only person in a particular place to have gotten off of the beaten track and be the distinguished traveler, that's also been around for, for a very long time. So that's why I think I'm hesitant to sort of pin the blame on Instagram.And I think my thinking around this has taken a bit of it, not exactly a turn, but it's changed a bit. So I think there's a real tendency to look at platforms like Instagram as only being spaces in which processes of gentrification can gain momentum, or only be spaces where one is almost disciplined into being a neoliberal subject who, is working sort of subconsciously thinking about how to brand oneself all the time, specifically in places of tourism, you know, that it's a way that people [00:38:00] only think about the pictures. They only want to go take a picture in these places. They don't actually want to have any experiences in this place or relationships with the people there. And I think that really exists. That is absolutely one dimension of what takes place with social media platforms. But as many people I've spoken to say, social media is a double edged sword. And where that's really been driven home to me has been where I've been conducting research for the past almost two years now. Sometimes they're in person, other times digitally, in Oman, a country in the Arabian peninsula where I was interested initially because it was becoming more popular as an international tourism destination. So, I went there after the pandemic expecting to meet all these people who were experiencing the problematics of international tourism as we know well, I think from your podcast among other, among other spaces.And there's some of that, absolutely. But what I also found was that, in the past few [00:39:00] years, people who are living in Oman, and this is both Omanis, people who have citizenship and then also residents, so there's about 40 percent of the country is made up of people who don't have citizenship in Oman, like many other Gulf countries.And in the past few years, I mean, we're talking five years, maximum ten years, there's been this surge of interest in nature, or we can say is the non human or even the more than human environment and what's can be understood as domestic nature tourism, I think, like many places around the world, domestic nature tourism in Oman became was very popularized during the pandemic when people could not travel abroad. But what this meant is that people saw these images on Instagram and Instagram is really most popular app in Oman, next to WhatsApp, and that introduced them to parts of the country that they'd never [00:40:00] interacted with before.And Oman is this incredibly various and fascinating environment where there's mountains that are, you know, over 3, 000 meters higher, what is that 10, 000 feet you know, all of this coastline and with coral reefs and these waddies or slot canyons. And people began to engage with the environments in a very different way to go on hiking trips, to go on canyoning trips and social media was this massive part of that. You know, this is where people learned about this possibility, this is where people met people to introduce them, to take them safely into these spaces. They'd never been on a hike before. You know, Instagram is where they're going to meet somebody to go out into nature with.And it's not to say that this doesn't have problems associated with it, and everything I suppose related with tourism does, but I think it also represents a case where Instagram, in this sense, was a way that people are actively connecting to nature, and in a place [00:41:00] where, you know, Instagram existed and was widely used before nature tourism was a thing.And I think this kind of flips the narrative a bit where in Western Europe, where I'm sitting right now, for instance, there's been this long time practice of nature tourism, you know, going back to, again, the 1900s. You know, people started climbing Alps in the 1850s and so forth. And then Instagram comes along and everybody's saying, oh, people just want to climb the mountain to take a picture. you know, they don't actually care about nature. Well, in Oman, people weren't really, not that many people were climbing mountains, before the ability to take a picture existed. So, there's a bit of a different trajectory in which people began to relate to a particular space and to the kinds of experiences that one can have engaging in nature tourism.So in that sense to go back to your to your question about what do we essentially do with this platform? [00:42:00] And how do we address the problematics? I don't think that I mean, I think that Instagram will not be the most popular platform forever, certainly, but social media, or this kind of connected media, barring some kind of unforeseen complication. I mean, looking at you, AI. But this sort of communication is here to stay probably. So, can we find ways in which this space is can be generative of community could be generative of care and ethical forms of travel? What might that look like? And what kind of imagery might be associated with it?Chris: I'm curious in that regard, Oman to me is someone who's never been and probably, you know extremely ignorant to any of the nation's culture or history. I imagine modernity to be something of a recent arrival in that place, relatively speaking, correct me if I'm wrong, of course. And I guess what I'm curious about in the context of your research and most [00:43:00] recent research is if you've seen the conflicts that might arise in terms of traditional hospitality? What it means to be in a place, as opposed to a landscape, what it means to be a host, as opposed to, I guess a landlord, in the Airbnb sense of the word and perhaps also what it means to be a traveler as opposed to a tourist within the context of these new economic dynamics in Oman and if Instagram has anything to do with that? Sean: No, that's, that's a wonderful question. It's one I really appreciate as I continue to work there and spend time with people who've been incredibly generous showing me around and introducing me to what their life is like as people who participate in tourism. I mean, the first thing I would say is the Oman, the Arabian peninsula and really Arabic speaking cultures generally is hospitality is one of the most fundamentally [00:44:00] important things in social relationships. In what it means to be a part of this culture, one is hospitable to guests, to friends, to family members. It's almost difficult to understate how integral this is. I mean, it is, in many cultures, hospitality is big, but it's very big in this space.And so I think it's a particularly well suited question to, you know, how is tourism and how is social media impacting this code of conduct and, you know this really wonderful practice that I think, you know, the rest of the world can stand to learn a lot from.So, to your question about sort of where my mind sits in this span of development. Oil was discovered in the 1960s and kind of transformative effect as it has everywhere. And in this time, there was a great degree of urbanization. People could get services rather than relying on culture, trading, which comes from a pre oil economy.[00:45:00] Now, you see, I think, a couple things. For one thing, cultures of hospitality, I think, were already being disturbed by the way that neoliberal capitalism tends to work, not just in Oman, but anywhere around the world. It encourages people to find ways to profit themselves and to think as individual agents rather than as being part of a community, having responsibilities to the humans, but also nonhumans to the land as well as to one's family.So that process is already in it's already taking place before tourism began to take root. And I think there are some spaces in which tourism is developing in such a way that it's very profit oriented. And where people are incentivized to privilege [00:46:00] their own gains over those of others.However, there are other ways I think in which people who, say we're living in the city, are meeting people who live in fairly remote areas, under the auspices of tourism. Because they're engaging in tourism, they're meeting people who are living in these spaces and often chatting with them or sharing a meal or sharing coffee or something like this.Sometimes these people who are living in places that are becoming tourism destinations are part of the industry and sometimes people are not, but as it stands now, it seems as very much a preservation of hospitality within this, this particular context. As with anything, I think the question of tourism is to what extent this will become commodified or not, like how do we make money off of this culture of hospitality?How do we turn it into a tourist product? You know, we can sell Oman as being it's hospitable, come meet the locals. But in the way that people continue [00:47:00] to practice it, both people who are living in Oman and being domestic tourists and also people who are seeing tourists come to where they live in ways that they haven't before. To me, it still seems like it's very robustly in place.Chris: Good to hear. And I very much look forward to the publication of your research. Hopefully it'll see the light of day soon, perhaps. Sean: I hope so. Yeah. Things are in process for sure. Chris: Okay. Well, I'd like to thank you, Sean, on behalf of our listeners for joining us today. And you know, this leads me of course, to the question of how might they be able to get in touch with you or follow your work. And if that includes an Instagram handle. Sean: Yeah, that's, that's fine. So I I recently started another Instagram account. I had my own account and stopped posting about 2019.And then I got interested in it again. I opened a new account, which is sort of more research facing. So yeah, if people wanna check that [00:48:00] out, it's @SPSMITHS, so S-P-S-M-I-T-H-S or email spSmith@tilburguniversity.edu. So always pleased to hear ideas and of course things that I've missed because of course I have so much to learn in this space.So I would really look forward to feedback and ideas. Hmm. Chris: Well, I'll make sure all of that's on the End of Tourism website and the podcast page when the interview launches and as well as the other authors, researchers and works that you mentioned earlier on. So once again, it's been amazing, Sean, thank you so much for being able to really flesh these complex ideas out for us and we'll see what happens, right?Sean: Absolutely. Thanks very much for the invitation. And as always, I'll look forward to continue listening. This is such an excellent project. Chris: Thank you, Sean.This episode and others like it are created and made possible by the generosity of Substack subcribers like yourself. Similarly, I have subsidized the work of the pod with my own time and money. This is a labour of love and lineage that requires the support of others. Please consider offering a gift in return, whether that include upgrading to paid subscription, making a one-time donation, sharing the podcast among your people or being willing to reach out and assist in production (as others have). Thank you. Bless. Peace. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

The Business Method Podcast: High-Performance & Entrepreneurship
Ep.563 ~ Building Your Own Luxury Cruise Line  ~ Manfredi Lefebvre d'Ovidio

The Business Method Podcast: High-Performance & Entrepreneurship

Play Episode Listen Later Jul 10, 2024 44:21 Transcription Available


Listeners welcome back to the pod - today we will dive deep into the life of one of the most influential figures in the cruise line and maritime world. Our guest is a titan of the cruise line industry, a visionary entrepreneur, and a lifelong champion of global tourism his name is Manfredi Lefebvre d'Ovidio.  Manfredi has transformed his family business into a global leader in luxury cruising. Under his leadership, Silversea Cruises expanded its company offering travel experiences across all seven continents around the world. In a strategic partnership with Royal Caribbean Manfredi orchestrated the sale of a ⅔ stake in Silversea for a whopping $1 billion in 2018. This strategic partnership not only elevated Silversea's brand but also marked one of the most significant deals in the cruise industry's history. And lastly, Manfredi is the Chairman of The Heritage Group which is a private equity company that acquired 85% of one of the biggest luxury travel companies in the world Abercrombie & Kent - whose founder Geoffrey Kent was on the podcast just last month.  Today we are going to dive into the life and mind of Manfredi Lefebvre d'Ovidio.    00:12: Who is Manfredi Lefebvre d'Ovidio? 03:42: Manfredi's Recommended Books      05:56: Manfredi's Starts a Cruise Line 13:01: How this Billion-Dollar Founder Spends his Time 15:05: The Biggest Challenge Manfredi Experienced was September 11, 2001.  18:56: Manfredi Takes Over the Family Business 21:18: Manfredi Pioneers the Luxury Cruise Industry.  24:39: Why Manfredi Loves Being an Entrepreneur 26:13: Manfredi's Career Chapters 29:59: Manfredi Orchestrated the Most Significant Deal in the Cruise Industry.  32:47: Manfredi & Geoffrey Kent Built the First Expedition Cruise Ship 34:59: Manfredi's Daily Routine 37:13: Advice Manfredi Would Give His Younger Self 37:58: Things to Look for in Executives and Partners When You Bring Them On  40:25: What is Manfredi Most Proud Of?   Contact Info: https://www.manfredilefebvre.com/ https://heritagemonaco.com/ https://www.silversea.com/ Transcript:   [00:00:12] Chris: Listeners, welcome back to the podcast today, and we will dive deep into the life of one of the most influential figures in the cruise line and maritime world. Our guest today is a Titan in the cruise line industry, a visionary entrepreneur, a lifelong champion of global tourism, and his name is Manfredi LaFavre D'Ovidio. Manfredi has transformed his family business into a global leader in luxury cruising. Under his leadership, Silver Sea Cruises expanded its company, offering travel experiences across all seven continents around the world. In a strategic partnership with Royal Caribbean, Manfredi orchestrated the sale of a two third stake in Silversea for a whopping 1 billion in 2018. This strategic partnership not only elevated Silversea's brand, but also marked. One of the most significant deals in the cruise industry's history. And lastly, Manfredi is the chairman of the heritage group, which is a private equity company that acquired 85 percent of one of the biggest luxury travel companies in the world, Abercrombie and Kent, whose founder was actually on the podcast last month. So if you haven't listened to that interview yet, make sure you check it out. And today we're going to dive into the life and mind of Manfredi. Listeners, welcome to the show. Manfredi, welcome to the show. How are you doing today? [00:01:34] Manfredi: Not too bad. Not too bad. Can I add something to what you said? [00:01:38] Chris: Please do. Add or take away. Whatever you like. [00:01:41] Manfredi: Well, what happened is that as soon as I did my deal with Royal Caribbean, I did buy, uh, Abercrombie Kent, which recently I brought up to 100 percent shareholding, and I sold to Royal Caribbean subsequently one further that I owned, uh, in, uh, Silver Sea in exchange of Royal Caribbean shares and acquired another cruise line, which is called Crystal Cruises. [00:02:04] Chris: Ah, I did actually read about that. Forgive me for not putting that in there. [00:02:08] Manfredi: No, so it's just, the story goes on. And before Silver Sea, we had another cruise line, which was called Sydmar. Okay. [00:02:17] Chris: Was Sid, was Smar the one created by your father or was Silver Sea created by your father? Uh, [00:02:23] Manfredi: Sid Smar was acquired by my father with me because I was working with him at the time. And we bought, uh, the Cruise Line, which was one of the first cruise lines ever. And, uh, Sid Bar built the first free purposely built cruise ships, which were built in Italian shipyard fi can and LA in France. [00:02:42] Chris: Great. So that [00:02:42] Manfredi: was the beginning. Then we got an offer we couldn't refuse. We sold Smar. And we started Silversea together with my father, which I took over shortly after. [00:02:52] Chris: And that was in the 90s, correct? [00:02:54] Manfredi: That was, uh, we started in 92, we acquired in 86, Sidmar, sold it in 89, started in 92, uh, 91, Silversea, and, uh, we're ordering the ships, and then we started operating in 94. [00:03:10] Chris: Incredible. [00:03:12] Manfredi: So, and then in 2018, uh, we, I sold to Royal Caribbean and I bought in 2000, uh, actually was in 2019. The negotiation started earlier 2019. I bought Abercrombie & Kent. [00:03:27] Chris: That's right. Incredible. Um, so Manfredi, I was told by a mentor of mine a long time ago that the, uh, difference between a wealthy person and the average person is the information that we put in between the two ears that we have. and what we choose to do with it. And I hear you're an avid reader, so if it's okay with you, I'd like to ask about what you're reading right now and some of the more impactful, uh, books of your life. [00:03:59] Manfredi: Yeah, I tend to read two, three books in parallel. So now I'm reading the Silk Roads, number one, the old Silk Road and the new Silk Road. Then there is a new book which was written about the oil industry and the energy markets, which is very interesting. I don't remember now the exact title. And then, you know, other things which went back in time. An interesting View of the history of the United States of America, which is unconventional view. Ah, [00:04:34] Chris: do [00:04:34] Manfredi: you [00:04:34] Chris: know who, do you know who the author of that book was? [00:04:38] Manfredi: I can let you know. [00:04:39] Chris: Okay. [00:04:40] Manfredi: Um, it was recommended to me and I bought it and it's quite interesting. [00:04:44] Chris: Do you have two or three books that were the most impactful in your life? [00:04:50] Manfredi: Yeah, you know, but probably I'm, I, I had once, um, hepatitis, so I was stuck in bed for a long time and I managed to read all of War and Peace, the whole story. It's a massive book. In today's world, it's very difficult to read at all. [00:05:10] Chris: Yeah. Okay. Anything else, any others? [00:05:17] Manfredi: Oh, this is the one that comes to my mind immediately. The other ones are, you know, I try to always read something which will leave me something, uh, in knowledge. [00:05:27] Chris: Yeah. [00:05:28] Manfredi: A book that I loved was, uh, A Hundred Years of Solitude. [00:05:33] Chris: I've heard of that one. [00:05:35] Manfredi: There's a life in this village in Colombia, which goes through the civil wars in the country. It's quite interesting. [00:05:42] Chris: Nice. Um, so I kind of want to start this off about, uh, going back to your, your past and your childhood. And I'm curious about the first moment that you realized you had a passion for ships and cruise lines. Uh, do you remember that moment? [00:06:03] Manfredi: I can, uh, reconnected because when I was 14, my father told us, uh, he was We're going on a cruise. Now it's 14, it's uh, what is it, 56 years ago. It was really at the beginning. Nobody knew about cruises. And, uh, he, because his friend had his cruise line, which was called Sidmar, and so we went to all the way to Mexico, Los Angeles, took the cruise down the Mexico coast, and, uh, that was the first impact with, uh, uh, cruising. But I've been involved in shipping all my life, because my father was a ship owner, a professor of university of maritime law, and a lawyer, and he was always involved with shipping. So it's been all our lives that we've been involved with ships, we had yachts, and so on. We had shipping companies, we had ferry companies, we had all sorts of things. But that was a crucial moment because we sold this company, where I subsequently went to work. When I was 18. And then, uh, you know, we, we bought it. So it was a chapter here. You know, you go on a cruise and you work for them and then you buy them. Yeah. And then you see them. I hear your father was quite a, an interesting figure and he was a lawyer and he actually helped create the maritime law in Italy. [00:07:24] Chris: , and then You, you, did he start the cruise line, , the very first cruise line venture that you guys owned, or did he acquire it and then continue to run it and it became the family business? [00:07:39] Manfredi: He, we acquired it. [00:07:41] Chris: Okay. [00:07:42] Manfredi: And then, and when we acquired it, we built the new ships. And then they were so beautiful and were so, so innovative that we got a very good offer and we sold it. And then we started SilverSea. SilverSea is the first one that we started. In the past, you know, I had worked in other businesses. My father, with his, uh, partners had bought a big shipping company, which was listed on the UK Stock Exchange, which owned ships. It owned a very large, uh, Ship broker company and, uh, insurance broker company called Clarkson. It owned Maritime Insurance company. So he was always, uh, involved in that. He even had a fleet of tankers in Saudi Arabia at the beginning of the seventies. [00:08:26] Chris: Oh really? can you share about your father's influence on you? You know, as a young man, I could imagine, and a boy growing up, I could imagine, uh, a father who, I think about the influence my father had on me. Right. And I can imagine you and your father had a cruise lines. He is part of the maritime industry, um, or he was at least getting involved in cruise lines at the time. , How did that have an effect on you as a young man? [00:08:55] Manfredi: I mean, that's, uh, fundamental. He was an extraordinary person, an extraordinary father. And, uh, he was lucky he had a wife who always, uh, put him on a, uh, how do you say it when you put somebody on a pedestal? Pedestal for us. So we always had, and because he was working all the time, he was traveling a lot, working, and he would, his Sundays were because he would take Saturday to work always. On the Sundays, his vacation, his day was to pass the day working in our playroom. So he had a desk. His children were playing around and he was there working. And that was his, uh, his Sunday. So, uh, you know, it's an example of, uh, dedication to passion, to work dedication. And, uh, but he was still very present to us because he was a symbol. for us. So, uh, we always looked up to him. And then he would sometimes take one of the children. For example, he, when he had some, uh, launch of a new ship, would take one children with him. And so he created some moments for us, which he was pretty much always linked his life with his business, but he involved us. So he got us very much attached. And especially my two sisters, they were deeply in love with him and the same with me. I mean, I adored him. And, uh, when I was, um, uh, 18, he said, Okay, you go to university, you will have a desk in the office next to mine. You can listen to all my phone calls, join all my meetings, read all my papers. Asked me every question, and any day in the week, Saturday, Sunday, during the week, and so that I did, and then he would send me to his businesses. He had many businesses in various countries, Mexico, England, etc, etc. So I would go three months in his businesses. And then come back and study and go on with the university and then work with him. And, uh, so it was a very tight relationship. [00:11:10] Chris: What do you think was the most impactful lesson that you learned from your father? [00:11:16] Manfredi: You know, the most is to be very respectful of the others. He was, uh, the most, uh, Curtis person you can imagine with everybody, and it wasn't linked to the fact if you had anything to exchange with somebody, uh, somebody who was relevant for his business or for any other reason. He would be the same with anybody from the lowest level and, uh, business community or the people working for him in service to the highest level. It was true that everybody with extreme kindness and courtesy. And, uh, and would always be, uh, responding to anybody. So, it was this kind of attitude. Very humble, simple, very successful man. Uh, an incredible brain, but very humble and simple. [00:12:06] Chris: So let's switch to the roles that you play in your life now. So you're the chairman of the heritage group, which, uh, a heritage groups, a private equity group in a travel and tourism sector. Um, you're the chairman and orbital solutions, Monaco co chairman. And I guess you said, uh, are you no longer chairman at Amber Cromby Kent, or are you still co chair there? [00:12:27] Manfredi: No, I'm, uh, I'm the chairman. Geoffrey. sold me the steak, and he is the co chairman. I don't know what his exact title is. He's the founder chairman, let's say. Okay. He's not actively involved in the running of the business. He's very involved in everything, which is the product. [00:12:49] Chris: . And then you're a member of the board of Bucksense Incorporated, vice chairman of Monaco Chamber of Shipping, um, member of the executive community of World Tourism and Travel Council, and member of the board of SKULD Skold. Is that what that's pronounced? Skold? Skold. The maritime school in maritime insurance company based in Oslo. So I'm, I'm curious with all those, those titles and accolades, where do you spend the most of your time? [00:13:18] Manfredi: Well, first of all, they evolved, you know, some are gone and there's some new ones. [00:13:22] Chris: Okay. [00:13:23] Manfredi: And I spend most of the time, reality, I divide myself between three things. One is where I have the most relevant business opportunity where I focus a lot. [00:13:35] Chris: Okay. [00:13:35] Manfredi: Was like, I try to make sure that that things they are done well and they get my support. I, I cultivate very, uh, mature and capable management and then, and want them to, to, to drive, but I'm there to help them and to know everything which is going on. In any case, that's the first thing, which is very important. The second thing is whenever there's something which is not going that well, it happens to follow my laps. Because this is what happens with owners, you know. So there I dedicate with the team and to solve whatever there are some problems and something which is not going as I would wish to solve it. And the third thing is the things which give me satisfaction. So there are a number of things which give me satisfaction and I dedicate myself to. So now I've been recently appointed by the Sovereign Military Order of Malta. as ambassador to UNESCO and for charity and philanthropy, which is something which is not going to earn me a cent. It's going to cost me, but it gives me satisfaction. I use my capabilities, my relationships, my, uh, dedication to, um, better cause. So it's a mixed, I have the freedom of choice. [00:14:51] Chris: That's good. I was going to ask, , you mentioned about, you know, if there's ever a problem in the business, it comes to you, it comes to your desk. [00:15:00] Manfredi: I didn't mention the new businesses. Of course, I mean, new investment. I follow also. [00:15:04] Chris: Yeah. Did you share with us maybe one of the biggest challenges that you've had in your career when it came across your table, , and how you decided to handle it? [00:15:17] Manfredi: Oh, there's a very clear example. September 11th. I was in a bank negotiating the refinancing of the financing. It's a new ships. And in the bank, they tell me, they come, somebody rushing in, come, come and watch on the television. So there, we were on television, in the bank, because CTF financing for the company. And we saw what happened. So you can imagine from that moment on, what can happen to the travel business. [00:15:51] Chris: Yeah. [00:15:52] Manfredi: The world shrinks. Every place which has a Muslim religion or Arab language, Is disappears from the world. You cannot go there. It's a small world and uh, uh, people don't wanna travel. If they want on a plane, they will look if there's anybody who looks suspicious. And, uh, actually for some time, planes were suspended. So that was a very tough time and you have to hold the company together. And, uh, going through, uh, you know, all sorts of difficulties. You dedicate your time there and, uh, and succeeded. And then, the cruise industry recovers very fast, so it bounced back. But for some time, it was tough. [00:16:39] Chris: How long was that time period? [00:16:42] Manfredi: There is, I think that you can, the turning point was when President No. 43 went on the aircraft carrier. [00:16:51] Chris: Okay. [00:16:52] Manfredi: It was like a liberating moment. [00:16:54] Chris: Ah, okay. [00:16:55] Manfredi: Confidence came back. It was like a fantastic case of how to rebuild confidence in the consumers. [00:17:06] Chris: And, , what are, what are some of the ways that you held the company together, at least the, the morale of the company together during that time? [00:17:20] Manfredi: You know, they, they, they have to see that you're on top of everything and you can find the solutions. And I think that my people were quite confident. I had additional resources of my own, which I could put in to support the company. But I was trying to have the company support itself as much as it could by itself. But I had good relationships, and I got some incredible, uh, support by people. Um, really incredible support by people based on their trust and confidence. [00:17:54] Chris: What do you think was harder on the cruise line industry, uh, 9 11 or COVID? [00:18:00] Manfredi: 9 11. [00:18:01] Chris: Yeah? How come? [00:18:04] Manfredi: Well, 9 11 was, uh, wasn't only a travel space. And during COVID, most of the businesses were still going well, if you think about it. Some businesses actually had an incredible success. During the electrical container business. Well, during 9 11, it was simply the world was paralyzed. And the governments did not find a way to intervene to support the businesses. It was very, very tough. [00:18:34] Chris: , I guess that makes sense. , so okay, let's shift gears a little bit and, and we talked about your father and his impact on your life. , can you tell us a bit about when you took the company over, , what was that moment like for you and what were some of the decisions leading up to that that made you guys decide it was time? [00:18:56] Manfredi: Well, the decision was because we made a family partition. So I got, uh, in the division of the family assets, I got that business, like several things. And how it felt, well, you know, I had already been working with it. So it wasn't something new. And we always been very close. So I was participating to everything. It became my baby, only mine. And, uh, of course it, it was, uh, it, I must say that, uh, that choice or that moment, the fact of taking over, so it changed my life. Because from being the son of a wealthy man with many businesses, taking care of them together with him, suddenly I had something that was mine and I had to grow. And so I identified myself a lot with that company, with that product, with that success. And it became, after all, today became my legacy. [00:19:53] Chris: I am [00:19:54] Manfredi: especially that I'm not the only the son of a wealthy man from a family which has because we are a family which with 200 years of industrial history. [00:20:05] Chris: Oh, really? [00:20:06] Manfredi: Yes. [00:20:07] Chris: I didn't know that. [00:20:08] Manfredi: It started in, uh, in Italy and, uh, at the beginning of the 19th century with paper industry, banking, a number of things. So I'm not only that, I'm, uh, and I'm not only the son of a very successful man. I had my thing and I did it successfully and I've become an expert in the field. , so which allowed me. When there was another opportunity to buy to, which was during the, at the end of COVID, the beginning of the Ukraine war, to buy crystal cruises, to do it with great confidence, because I, I knew all the levers of the business, I knew the people to choose to bring on board, I knew where to go to get support for the generating the revenue, etc, etc, to restructure the ships. So, I could do it very well because I had full confidence of my knowledge of that industry, and the people had confidence on my knowledge of the industry, so they give me a lot of credit. [00:21:06] Chris: A friend of ours, Mr. Geoffrey Kent, , told me to, that you pioneered the industry, , the luxury area in both normal and expedition. So I'd love to learn more about how you did that and your strategies behind it. [00:21:18] Manfredi: How we did that was, we had, Sittmer was a typical cruise line. At the beginning of the cruise lines, they were transatlantic operators. And when the transatlantic routes, uh, became dry, no more passengers because people were flying, and from Europe there was no more migration to the U.S or to Australia or to South America, those ships needed to have a new employment, and they were converted into cruise ships. So that was the, uh, the beginning of that industry. So when we bought it, we bought it in an industry which was at its beginnings. And we built these two ships, three ships, which were the first ones to be built purposely. So that was, uh, uh, the, the, really the moment in which, uh, we dedicated to that great, , vision, because it was my father's vision that that could have been a great industry and had a great future. And then so on. And then we bought into, uh, then we developed Silver Sea. And I remember when we asked my father, Daddy, what, what is it you? really wish for. And he was 92, I think. And he said, Oh, I wish that Silver Sea will have 12 ships. And I think that we had six, maybe. It was impossible for him to see 12 ships. [00:22:34] Chris: Yeah. [00:22:34] Manfredi: But it was part of the, of really the, the passion that he had and that he gave me, this passion of, uh, and, uh, looking forward always. Not making a calculation of what you're going to make out of it and how it's related to your life, but the project, the vision, what you're building was quite, uh, driving. [00:22:59] Chris: And how many ships do you guys have now? [00:23:02] Manfredi: No, now we just started again. So we have two ships. Now we have to grow it. We start a new chapter. You see what you do when you turn 70. Some people retire. [00:23:11] Chris: Yeah. [00:23:12] Manfredi: Not in my family. [00:23:13] Chris: You start another business. [00:23:15] Manfredi: You start another business. In our case, we started more businesses because we started . We bought Abercrombie & Kent, which we're growing very fast and very much. [00:23:25] Chris: Yeah. [00:23:25] Manfredi: And then we bought again, the cruise line that we have other businesses also, which we run. So it's, uh, it's simply the fact that, uh, what is it that you, that you gives you enjoyment? And, uh, is it to play golf or is it to have, uh, in the morning, wake up and think of the things that you're doing, the projects that you have, how you can accomplish things. And, uh, so in our case, that is because of my father, who started when he was a, who started when he was very young and at 92, he was, he lived until 98. So he was still, uh, when he was at 98, he would do, still the first thing he would ask me is how are the ships going? And so it's part of that. My, the first Lefebvre, the guy in the, uh, at the beginning of the 19th century. He died when he was 84, which for those times, that's a very old age. Because he got pneumonia coming back from the board of his shipping company. So it's in the DNA of the family to work, uh, until you, you go. And it's not a question you already have the money to live well. It's a question of money as an instrument of freedom and to, realize yourself, to to achieve the satisfactions that you're looking for. In my case, I give myself a lot of other satisfactions. But the number one. is to be an entrepreneur! [00:24:54] Chris: That's most important to you to, to be known for as an entrepreneur. [00:24:59] Manfredi: Not to be known to know myself, that I am, I wake up in the morning and I'm busy. I have a lot of things which, uh, interest me. [00:25:09] Chris: Yeah I have a lot of things which I do, which interests other people. If I wasn't an entrepreneur, I wouldn't be here with you. It's very true. So [00:25:16] Manfredi: it's a very strong connection with the living world instead of going into the. Sleeping world. [00:25:24] Chris: I'm curious if you weren't in the shipping business or anything related maritime, , what business do you think you would be in [00:25:33] Manfredi: investment banking? [00:25:35] Chris: Yeah. How come [00:25:37] Manfredi: I always liked it a lot, but investment banking, private equity. investing in businesses, selling businesses, advising people, uh, working on. I, I worked when my father sent me around. Uh, he sent me also to some investment banks for some time to learn, to learn how that work, that will work. I don't know [00:26:02] Chris: if you know, but, , on our podcast, we're interviewing founders, a hundred founders of a billion dollar companies. And I always ask each guest the same question. , and it is, if you're going to break your career into chapters, what chapters would they be? And what would you name them? [00:26:23] Manfredi: A chapter is number one is, uh, the chapter in which I was a golden boy. Which means I was, uh, living, uh, a very, uh, prosperous youth with a daddy who adored me and wouldn't deny me almost anything. [00:26:40] Chris: Okay. [00:26:40] Manfredi: So understanding this, I, uh, I kept and I developed a strong, uh, uh, desire of accomplishing by myself. [00:26:48] Chris: Okay. [00:26:49] Manfredi: That was the first part. Then the second part was, uh, being like, uh, uh, a stamp on my father's back. Okay. Following him everywhere and, uh, listening to him, et cetera, and working together with him. What [00:27:02] Chris: Were the ages for chapter two? [00:27:05] Manfredi: Yeah, you can say, you know, from when I started working with him when I was 19. So let's say 20. Okay. And 20 a decade. Then I started to have diversified investments. Then, uh, that's another age. And then there was the age, which I took over the, the Silver Sea. [00:27:29] Chris: How old were you then? Became [00:27:30] Manfredi: my baby. [00:27:31] Chris: How old were you then when you took over? Silver Sea? [00:27:35] Manfredi: We're talking about a year, 2000. So I was, uh, 47. Nice. [00:27:40] Chris: And any more chapters after Silver Sea? [00:27:44] Manfredi: Yes. It's a new chapter, which is the continuation in a way of Silver Sea, which is, uh, which is happening now. But now my chapter is entrepreneur, but my enterprise is The family wealth. I see myself as somebody who is, uh, administrating the family wealth, not only to increase it, or first of all, keep it as it is and possibly increase it, but also to make it such that it is well transmitted to new generations. So my following, and so this requires a number of choices, which are different in your, in your relationship with the business of themselves, because I was permanently on top of the business. Now I want to, uh, support the manager to grow so that they can deal independently for me, benefit from my presence, but eventually one day they can, the company can go by itself. Yeah. So I joined the company that way, and that's all I'm trying to do it. So I'm trying to diversify risk, enhance liquidity very much so that the liquidity is always there for the family. So it's a different vision. When you're an entrepreneur, you're 47 and you take risks, you want to expand, you have to grow, you have to make, you have to make a jump in the size of your business. You have to go from four ships to actually work two ships to 12, 14, 16 ships. Yeah. So the company is a hundred percent yours. You don't have a public markets, you have to compete with credit, you have to do this and that. So it's a, you know, I had to finance my ships, I had to fly to China because that was the best market. So you'll find always the solutions to get the things to function. But that's when you're the full entrepreneur, then now it's a, it's a much more stable approach. Yeah. [00:29:45] Chris: Makes sense. , your partnership with Royal Caribbean, it was marked as one of the more significant deals in the cruises history, uh, the cruise industry's history. can you tell us a little bit about the unfolding of that partnership? [00:30:01] Manfredi: Well, it was easy. I mean, it was, uh, it wasn't easy. I mean, it was a simple process. I was, I wanted to build more ships, so I decided to open the equity of my company to investors. I informed my competitors that I was doing it, so not to have gossips all the time around. And then, uh, someone from Royal Caribbean, uh, came and said, could we be your investor? They said, I thought about it and I said, why not? And then at a certain point in the process, it evolved from then buying the majority. And so that's, I did. And I had a, a, so a, a stake in the role in the company. But then Covid came and Covid made clear everything first, all that the company had to be absorbed into Royal Caribbean. Mm-Hmm. because of the financial situation. 'cause it was, uh, was not easy for cruise lines and uh, um, and because, uh. And when you are the full disponent of a business, then you can't learn and being somebody who just participates. Yeah. And so it was a good way. We find a great deal, great deal for them, great deal for me. And uh, I got a big chunk of Royal Caribbean shares, which I'm happy to have. And so that's how it evolved. And I could start, I could buy a Abercrombie & Kent and start my own business. [00:31:28] Chris: , was that a pivotable moment in your life? [00:31:30] Manfredi: Sure. I mean, you know, you, you decide that you don't want to be, uh, what was I saying? Sixty six year old retired person with all the banks calling you to invest your money and private equity funds and all of these people asking you to underwrite their funds. But having a very easy life. Uh, very comfortable and deciding now to challenge yourself and to do something new, which excites you every moment, which is exactly the opposite direction, no? You have a capital event. Capital events don't happen many times in the life of an individual. [00:32:10] Chris: Yep. [00:32:11] Manfredi: So it happens. At that point, you have to make a decision. Are you going to go into a new world, which is the world of the person who is either entirely or half retired? Yep. Or you'll find a way to go back into the world of being active in the colony. That's what I decided. I [00:32:33] Chris: think it was a good choice. , Geoffrey also told me, , to ask you about how you became his partner on the MS Explorer, um, which was the first expedition ship that was ever built. [00:32:47] Manfredi: Well, yeah, I mean, it was fantastic. Um, so Geoffrey had this company that he had developed, you know, Geoffrey, as you and your followers know, is a fantastic and unique person. And he wanted to go and send a ship to the Antarctic to propose, to offer to his guests, his clients, the opportunity to go and see the Antarctic. But he wasn't a ship owner. So, we were launch, starting to launch SilverSea at the time. And, uh, we were approached by his consultants, who were going to do the management of this ship, which is a company called V Ships, which is one of the major service companies in the shipping world. And they introduced us, so we made a partnership there, which lasted for two, three years. And then he kept it on his own, but by then we were good friends. And we became even more friends because, uh, then, uh, I, I was next to him and, uh, he was the chairman of WTDC, and I was like his right hand there. And then we developed all the segments for Abercrombie Kent doing services to the cruise industry. He started with us. So Abercrombie & Kent does a lot of the best quality, um, uh, pre post or excursions for cruise industries, part of its business. So that we did together and we became great friends and we always try to do something together. But he did some deals with other people in the meantime on the equity. And then one day, he told me, why don't you buy Abercrombie & Kent? And so that's what we did. And we still work together and, uh, we're, we're going tomorrow. We're flying on, uh, to one of the crystal ships. [00:34:39] Chris: Yeah. [00:34:41] Manfredi: We say two days on it and then we fly back. , so we were always, uh, we do a lot of things together. I mean, [00:34:48] Chris: nice. I'm curious on, you know, and I'm sure this is a hard question to answer, but, , I would imagine for most entrepreneurs, their day to day is very different. , I would imagine yours is similar. , do you have any regular structure you like to keep in your days, even though. You have a thousand things that are thrown at you every single day and you have to change up as much as possible. Some people, for example, you know, have the same waking time every day or the same sleep time or, , the same diet or, , All different types of things. Are there, are there any consistencies or daily rituals that you have in your life? [00:35:25] Manfredi: The daily ritual is a weekly ritual, which is doing the Luggage, so I'm always traveling. Yeah. What is a recurrent? I come back from a trip. I start packing That's the most Methodic thing I do all the time. [00:35:45] Chris: Pack. Pack and unpack. [00:35:47] Manfredi: Pack and unpack, pack and unpack. And then schedule from assistant, assistant, I have to do this, this, this, this, this. Work on the planning, work on how I'm gonna do this. I can fit, fit the meetings. That's the most thing. Um, I try to, if I can, to swim during the day, but uh, as I travel all the time, it's very difficult. [00:36:10] Chris: , what about, I'm curious about, you know, entrepreneurs, a lot of it depends on the entrepreneur. Some people sleep very little, , some people sleep, , a lot and then work hard throughout the day. How about yourself? Are you a heavy sleeper? Are you a light sleeper? Are you getting six, seven hours a night every night on the same time or is it fluctuate? [00:36:30] Manfredi: No, I'm basically going, trying to take six, seven hours every night, trying not to go to sleep too late. This morning I woke up at 6. 30. Yesterday I went to bed at 11. 30. It was seven hours. It was a very tiring day, so I was tired. Uh, but it can be six, it can be seven. Rarely goes above seven, unfortunately. I would like to have more sleep if I could. And, um, but it's normally very regular hours. [00:37:01] Chris: , any advice that you would give yourself, , your younger self that you didn't know when you were younger, say at the age of 20 or 30, that you know now that you wish you knew. [00:37:13] Manfredi: You know, and anything which is not real estate. Already built in the state business number one thing to look at is the people you're going to be working with as partners as executives, because that makes or breaks or fixes anything. So whenever you choose to deal with the wrong partners or whenever you, uh, appoint or go into a business without having the right person. You're going to have some problems. [00:37:45] Chris: Yeah. What are some things that you look for in a partnership or an executive when you, when you bring them on? [00:37:52] Manfredi: They have to be, first of all, they have to be trustworthy. They have to be honest, trustworthy. They have to be hardworking people. And if they're hardworking people competent, they can make a lot of money. [00:38:05] Chris: I'm not stingy. So you pay them well, [00:38:07] Manfredi: yes, they may. They, they have good incentives. [00:38:11] Chris: Have you ever noticed any, any, any ways that you identify individuals like that? You, you mentioned trustworthy, hardworking, is it through reputation that you hear from other people? Oh, this individual's trustworthy. Uh, he or she has built, you know, this business, or is it personal experience? Do you want to meet with them, get to know them really well, sit down with them, how they interact with you? [00:38:35] Manfredi: Well, you know, now the last, uh, oh, it's, what is it? 25 years more, 30 years. As I've been in the same business, it's much easier because I, I know the people that I'm going to retain, or I'm gonna promote, I'm going to delegate to. So it's, it's quite easy because 30 years since, uh, we started, uh, SilverSea Cruises now it's, uh, the same market. So the CEO of Abercrombie and Kent Travel Group, which includes Abercrombie and Kent. And Crystal Cruz is a person who has been working with me for 14 years. [00:39:13] Chris: Yeah. [00:39:14] Manfredi: She joined Silversea, and then when she was extremely young, now she's still very young, but she's in her beginning of her 40s, and she's the CEO of the group. I know her inside out, she knows me inside out. So just full trust, a hardworking person, work ethics are extremely strong. That's fundamental because mine are extremely strong. So I can't deal when people tell me balance of life. Balance of life is, is not compatible to be running a competitive business. [00:39:50] Chris: How many hours a day do you say you work from from the time you wake up to the time you go to sleep? [00:39:55] Manfredi: Yes, basically I work that seven, what is it called, seven days a week, , although I work always that it is divided between days in which I work more and days in which I work less. So there are some days in which I work less because it's a Sunday or it's a vacation. So I will be working less, but I will always be working. It doesn't, I think it never happens a day in which I don't take care of something. [00:40:25] Chris: what would you say you're most proud of? [00:40:27] Manfredi: Most [00:40:27] Chris: proud of my [00:40:30] Manfredi: friends, my friends. I am very proud of the fact that I have great friends with a strong friendship. And I tell myself there's something right that you can do if you have friends of such good quality that are so attached to you and you're so attached to them. [00:40:52] Chris: I think that's a fantastic answer. And a lot of people would probably want to know a little bit more about that. , When I would imagine trustworthy, , is something that's important when you look for friends. But what are some other things that when you look for friends or friendships that are important for you? [00:41:13] Manfredi: Well, you know, the first of all, there's a generosity in the relationship. [00:41:16] Chris: Yeah. [00:41:18] Manfredi: If the, if the relationships are transactional, there's something which compromises the friendship. So it's just, there can be transaction with friends, but that must not be the basis of a friendship. So trustworthy, uh, based on the sentiment of friendship, the, the interest of seeing each other because of what puts you together, that both have, uh, memories or of a present or of things that interest you, that you're interested in talking to them, uh, sharing with them. So this is, uh, the basic thing. [00:41:59] Chris: I think that's a great way to wrap up the interview Manfredi. , one more question. What else do you want to do? Say in the next 10 years of your life, what are your goals? [00:42:09] Manfredi: Is that there are three things in parallel. One thing I want to have this, Abercrombie & Kent travel group grow and, uh, become very interesting and I do fantastic things. It's such a beautiful business that we enjoy every moment of it. The second thing is. Organize the rest of the world and, and also Abercrombie & Kent ownership in such a way that it can survive me well. And the third thing is, besides doing these things, is enjoying many things that I like. I like to travel, I like to read. Uh, I like to be with my friends. And, uh, so. And I like to do things which are not only tied to a monetary benefit. You know, having been successful from a financial point of view has to buy you, first of all, freedom of choice. Freedom of choice is how you spend your time. So how I spend my time is important. And And spending it, developing the business that we have created, is a satisfaction. Spending it, organizing the wealth, in a way that it can then be at the benefit of the persons I love is a satisfaction. Doing other things, cultivating myself, traveling the world, visiting the world, etc., is a satisfaction. Having the freedom to dedicate part of the time to this without Having to be obliged by other things and having the substantial means to do it is part of the freedom of choice that success gives you. [00:43:45] Chris: Well said. Manfredi, I want to thank you so much for the interview and thank you for sharing your time and your wisdom with our listeners. I love how you wrap that up, talking about the freedom of choice and relationships in your life. So Thank you so much. We're, , honored to have you on the podcast and, we'll see you next time on the show. [00:44:05] Manfredi: Thank you so much. Bye bye. Ciao.  

Building Texas Business
Ep076: Reviving Texas Capital with CEO Rob Holmes

Building Texas Business

Play Episode Listen Later Jul 10, 2024 35:02


In this episode of Building Texas Business, I sit down with Rob Holmes of Texas Capital Bank. Rob shares the bank's dramatic turnaround story since he became President and CEO in 2021 amid challenges, including a failed merger. Rob explains how Texas Capital improved its standing through strategic moves like fortifying capital levels and attracting talent from global institutions. We explore Texas Capital's community focus through initiatives increasing volunteerism and launching a charitable foundation. Rob highlights how their junior program brings diverse talent while nurturing a vibrant culture. Wrapping up, Rob discusses maintaining liquidity amid regional banking stress, their strong capital position, and diversification that sets them apart. SHOW HIGHLIGHTS Rob and I discuss the transformation of Texas Capital under Rob's leadership since 2021, highlighting the strategic moves that improved the bank's financial standing and attracted top-tier talent. Rob explains how Texas Capital's strong capital position and strategic diversification helped it navigate the regional banking stress of 2023. We explore Texas Capital's commitment to community engagement, including extensive volunteer hours, the founding of a new charitable foundation, and various philanthropic activities across Texas. Rob elaborates on the bank's innovative junior program, which has attracted diverse and talented professionals to Texas Capital. We discuss the importance of maintaining a respectful, collaborative workplace culture and the value of in-office collaboration for fostering a strong, healthy culture and achieving better customer outcomes. Rob shares insights on the challenges facing the banking industry, such as regulatory inconsistencies, the inverted yield curve, technology integration, and commercial real estate risks. We discuss Texas Capital's strategic initiatives to expand services, including public finance and equity research in oil and gas. Rob reflects on the lessons he has learned from his career, emphasizing the importance of candor, transparency, and servant leadership. Rob recounts personal anecdotes about his first jobs and leisure pursuits, offering a glimpse into his personal life and leadership style. We touch on the role of media in shaping perceptions of regional banks and the distinct advantages of regional banks in serving local communities and businesses. LINKSShow Notes Previous Episodes About BoyarMiller About Texas Capital GUESTS Rob HolmesAbout Rob TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Rob Holmes, President and CEO of Texas Capital. Rob shares an inspiring story on how Texas Capital has rebuilt itself and become the first full-service financial services institution headquartered in Texas. Rob, I want to thank you for joining me here on Building Texas Business. Welcome to the show. Thank you very much. Let's start. I know you're the CEO Building Texas Business. Welcome to the show. Thank you very much. Let's start. I know you're the CEO of Texas Capital. Tell the listeners a little bit about what Texas Capital is and the type of services it provides here in Texas. Rob: Great. Well, thank you very much for having me. So Texas Capital had a very proud founding in the late 90s by Texas business people to found a bank to serve Texas businesses with local decision making. After all, the banks failed in the late 80s and they had a very proud run and 05 went public and did very well. Then about the mid teens we kind of started going a little sideways and by the time I got there the bank needed to be kind of rebuilt and so we had a failed merger with a bank about a third our size and that tells you anything, and really because of COVID. But after that they needed new leadership and so what we did was we started over and we went fast. So we raised a perpetual deferred deal with sub-debt securitization, got out of a line of business correspondent banking that attracted a lot of capital and improved the capital by about 270 basis points in about eight weeks, and that's my bet as we run the bank very conservatively. We also brought in a lot of new talent. So the entire operating committee is new. We have a new junior program we can get into that later. But then we started on the journey to build and this is kind of interesting. I think you'll find it interesting. We're the first full service financial services firm ever to be headquartered in Texas and if you think about it it makes perfect sense. So in the 80s you had Glass-Steagall and stuff. You had a lot of big banks. They failed. They were replaced by larger institutions from out of state that saw this as a very attractive market. But the in-market banks never went into the full service direction. So regional banks are made from community banks and they get bigger and they didn't have the products and services. They just had NIM banks, if you will Sure. Chris: Well, that's an impressive thing to have a claim to being the only one headquartered in Texas. I would not have thought that, you know, given some of the other Texas yeah. So I mean you're not kidding when you said a full restart just a few years ago. Rob: Full restart. So we have think about who we're able to attract, and this says more about Texas than Texas Capital. But the woman that runs treasury services for us ran treasury services for JPMorgan Chase globally. Our chief risk officer was the head of risk for JPMorgan's investment bank and then chief risk officer was the head of risk for JP Morgan's investment bank and then chief risk officer for the commercial bank and then head of risk for real estate globally. Our head of ops was a head of ops and tech for Stan O'Neill at Merrill Lynch. The CEO Started in the mailroom, ended up reporting as CEO head of ops and tech for Merrill Lynch. I think he can do it here and that so and that just kind of it keeps going. Our CHRO came from Cilindes and our CIO has an impressive background. Our head of commercial banking all of them had bigger jobs at much larger institutions. Chris: Yeah, what that tells me, Rob, is that those people saw a bright future in the business climate in Texas to make those kind of moves to join you and the Dallas headquarters. Rob: There's no doubt about it and, by the way, I wouldn't have tried this anywhere else, I mean for sure. So, as you know, texas is eighth largest economy in the world, second largest workforce, youngest workforce, fastest growing. We've created 46,. We've created more jobs in 46 last 48 months, so it's a very attractive place to be overall? Chris: What was it about just speaking to you? I know you joined in 2021, that based on the career you had built to that moment where you saw this as the right opportunity for you. Rob: I was very happy where I was. So I was primarily in the investment bank at JPMorgan Chase, but my last 10 years I ran the large corporate bank and the commercial bank ended up taking that to 22 countries. So I ran that business. Globally it was over $180 billion in assets. It was a third treasury, a third lending and a third investment banking. Great business, great people. But when this bank kind of went sideways, I had two or three people call me and say, hey, I'm thinking about this, would you come run it? And it surprised me. I'm like, why are you calling me? But then I started looking at it and, like you, I'm from Texas. I commuted to New York for 25 of the 31 years that I worked for JP Morgan. But people kind of said, why don't you come home and build something special with where you're from? And that, through more and more dialogue, became very appealing to me and I did not know and shame on me that as bad a shape as a bank was when we got there. But it ended up being a blessing because you know like today it'd be very difficult to do what we did. I mean to have a board, investor base, regulators, constituents. Let you reinvest. We reinvested over a third of our non-interest expense and then more, and we said to the investor community and the board and others that we're going to have negative operating leverage for about a year and a half. That'd be very hard to do in this climate, right? And so the other thing we had to do became a blessing because you had to do it all at once, and so I'm glad that's behind us. Today the bank is. It used to have just mono banking, like a community or regional bank. Today we have segmentation, so you have business banking for small businesses, middle market banking for a little larger businesses, a little more sophistication, and then we have a corporate banking group like a money center bank. And when you have a corporate banking group you have to have industry expertise. So we have energy, diversified FIG, government, not-for-profit healthcare, tmt and mortgage, so we have the industry expertise of any money center bank right here in Texas. And then we have private wealth and then we rebuilt all of treasury. So it's a brand new bank. We have a new payments platform, new lockbox, new card, new merchant, new digital onboarding that we came up with. And so we people say the banks can't compete on technology like with the big bank, but we can because we have one platform. Those big banks have many platforms because they're a combination of many banks. We can go in that if you want. And then we have one platform. Those big banks have many platforms because they're a combination of many banks. We can go in that if you want. And then we have, as I said, private wealth, investment banking, and we can go into as many of those areas as you want. Chris: So you basically built it like you said. As businesses are coming to Texas, you're ready to serve whatever need they have. Rob: For sure. So we want to be very relevant to our clients and we are a one-stop shop, so you won't outgrow us. We were a top 10 arranger of bank debt for middle market companies in the years. We've done about $110 billion of notional trades in about 18 months. Wow, it's profitable. Chris: So what's your vision for the future, then for Texas Capital, and kind of, how are you working to achieve? Rob: that it's actually pretty simple. It's maturing the platform that we built. So we are the number one lender to Texas-based businesses of any Texas-based bank. Now that's new. We've had tremendous success. Business owners and decision makers love the local decision making. They love the fact that when they hire us, they're getting a very talented, experienced MD working for them instead of maybe the money center bank, whatever, a VP or something assigned to it. They just like the local decision making, local access. But the go forward strategy is People ask me this all the time what's next? And they think that we have a big bang answer. The big bang answer is delighting clients and banking the best clients in our markets, and we've always said, or I've always said we'll be defined by our clients, and so we have been blessed to have clients be attracted to the strategy and platform. So we're going to just do more of what we've done. Chris: So what I like about that strategy is the simplicity. I think there's a lesson there for entrepreneurs and other business owners in what you've done in the last few years, and that to me is get the foundation right and your core right Correct, and then do the fundamentals really well. Right, it's blocking and tackling is what you're doing. Rob: It's executing now for sure. And I had one CEO of a very renowned New York financial firm ask him to come see me. They had heard about what we were doing and he wanted to understand it because we actually we took what he would say was the very best person from his sales and trading floor who had been there 18 years. He didn't understand how we could attract that person because that person drove a U-Haul to Dallas with his wife and kids before we were even open. And he said tell me your strategy. And I went through it and, to be honest with you, I was hoping he would like it because I was pretty long the strategy. And so he did. And I said what do you think? He said I think y'all are going to be very successful. And this was early on. And I said why is that? He said do you have a differentiated strategy with differentiated talent in a differentiated market? And I think that's true. But then he said what do you think? And I said well, our talent's really. This is back in 21. Now we've done all these things, but I said that the talent is really good, but we've got to do everything with this jersey on now and delight our clients with TCB jersey, not another jersey. And he said look, rob, do it once, it'll be hard, do it three times, you'll be good. The fifth time you're an expert and I kind of he kind of and he's pretty renowned. It was a pretty simple lesson but it's kind of true. And now we have done it and we are good at what we're doing. But we still can mature the platform, that treasury platform we talked about. It's literally second to none. We're doing open banking for clients. We're doing a digital onboarding. You can open a commercial account tomorrow at a money center bank. That take eight weeks or six weeks. But that platform to scale to get the most out of it, I mean we could run it without any more investment for five years. So we got to scale the business and, by the way, it's happening. So that treasury platform is it's called P times V, price times volume that's how many transactions are going through the factory or warehouse financial transactions. That's usually for a bank it's a 2% business at best. It grows the economy, it grows the GDP. We're going 17%, quarter over quarter, year, quarter after quarter. That's remarkable Because of new clients moving to the platform. So it is scaling but we just need to continue to do that Right. Chris: So you talked about the platform a couple of times. What type of I guess technology or emerging technologies do you see having the biggest impact in the banking industry over the next, say, three to five years? Rob: I think real-time payments, I think open banking, and people don't really understand what open banking is. What open banking is? It's actually very simple, so think well, here's, here's one simple way. Part of it is you don't have to leave your internal financial platform to go to our platform. We'll put an API on yours and so you can just push a button and be into our system and send ACH or wire or what. So I think AI, I think open banking and I think real-time payments. Okay. Chris: Well, I can speak from experience, as we transitioned to Texas Capital a year ago and, to your point of the ease of that transition and being able to deal with decision makers made it seamless. Good Well thank you. It's been a great relationship for us, for sure. Rob: Good Well thank you. Chris: What you're saying is true, Well, thank you. It's been a great relationship for us for sure. Good, Well, thank you. I can attest to that. What you're saying is true, Well, thank you. Let's talk a little bit about where you see corporate leadership whether that's your C-suite or just the company as it exists and community impact. What type of initiatives is Texas Capital working on to be a meaningful member of the community? Rob: Yeah, well, that's a. Thank you very much for the for the easy pitch. So I think we do. We bat way above our weight in community impact. So we do tens of thousands of hours of employee volunteer in the community. We, as part of this transformation, when we were investing in the platform, we took time to also found our first foundation. We never had a foundation before. So we have a foundation and we do volunteer hours and we just were part of the group that bought Opal Lear Newhouse. We were the first one to open a branch in West Dallas. We gave the founding seed money for Southern Gateway in Dallas. We're big supporters of Rodeo here in Houston. Last year I think we sponsored the opening night, so I think you're going to see us pretty much all over the state of Texas in terms of giving and more than just money but time, resources, expertise to philanthropies. We hosted a great event about three weeks ago. People came from all over the country and it was for veterans and we had veteran not-for-profits and we had veteran-owned businesses and we just brought them together and talked about issues and how they could work together and synergies between the two and advancing veterans on a go-forward basis, and the people that came would just blow you away and the feedback of it. I happened to be out of town on a three-day weekend afterwards out of the country and somebody approached me and I didn't know them and they didn't know me, but I guess they'd seen my picture or something and they thanked me for having that veteran event. Wow, and so it had a far, far impact. It will do things like that. We have a nonprofit event in every city, getting nonprofits together, helping them learn how to raise money and trade best practices, and we do that and we'll do that in every city during the summer. So you know, our giving is good, Our volunteer hours are fantastic, Our sharing of expertise is good. Our investment in the community is great, Good. Chris: Let's circle back to because that kind of made me think of team building, right, so you talked about basically a wholesale change with the team around you. What are some of the things that you look for to make sure you're you know, through that recruiting and hiring process, that you're getting the right person for the position? Rob: Yep, so this is a great question and this was the key to what we've done so far and how we're going to reach our 25 goals. So in September of 21, when we announced a strategic plan, which was pretty dramatic, we said we're not going to achieve our financial goals until 25. With that came a lot of change and a lot of talent. So 80% of the people at the firm are new since I got there. That's 80% of over 2,000 people. So that's a lot of change, managing through a lot of change through a transformation, through a regional quote, unquote regional banking practice that I'd love to talk about, regional banking practice, regional banking stress that I'd love to talk about transformation. So there's a lot going on there, both internally and externally, that we had to manage through. And what we did is we started at the top and the bottom, so we put new leadership with new skill sets and new expectations and new goals of banking the best clients in our markets instead of just being a bank, etc. And we also started a junior program. It was the first junior program in the history of the bank. Chris: You mentioned that earlier, so tell us a little more about the junior program. Rob: It's awesome If you have a kid and they want to get into finance and they don't want to go to New York but they want to work at a great financial services firm to have them join us. So we post in. So I got there in January of 21. It so I got there in January 21. It's COVID Nobody's in the office. We'd just been through this internal stress with the failed merger, new CEO, the whole bit. I said we need a junior program. We posted 60 positions. We got 800 applications. We hired 60-something. A third of those had their masters. That wasn't required. The average GPA was over 374. So people love what we're doing right. The next year there's over 2,000 applicants and our junior program is great. And, by the way, I helped build one in the investment bank in my last firm and one in the commercial bank in my last firm. I thought they were both very good. This one's awesome. So you come in, you go through four or five months of training and then you go into your line of business. But we probably hired you after your internship the summer before, if that makes sense. Sure, the program has some of the diverse classes I've ever seen in banking and we didn't do that. This may be controversial. We do that on purpose. We did that because we hired the best people Exactly and they're the most diverse classes, and so we're really excited about that. And then the attrition rate there isn't nearly what we thought it would be. We built it for a higher attrition rate because those kids usually leave a large percentage after third year. Sure. They're not leaving. Rob: They like it, so that's been kind of fun. It's a good problem, right, it's a great problem and we'll use all of them. And, by the way, after that change you should just know the attrition stuff has dramatically slowed as the transformation slowed. We got all the talented people in place that we needed so we are ahead of corporate America, finance and Texas companies for attrition and excited about that in the new culture here. ADVERT Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Business law firm that works with entrepreneurs, corporations and business leaders. Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom and thanks for listening to the show. Chris: Well that you know that low attrition rate leads to what you talked about earlier better customer experience, more stability. Rob: We need stability. Chris: Everybody needs stability. Yeah, for sure. Okay, so you mentioned regional banking stress. Tell me what you're referring to about that. Rob: Yeah, last spring of 23,. Eb failed, first Republic and the like. We were fortunate. So, november of 22, we sold a business to Truist for $3.5 billion with a very big premium on it. With the sale of that we became if you compare us to any $100 billion bank or above in the country or any Texas public bank we have the third most capital and I think in the next quarters we'll have the second most but third and we're number one in equity tangible common equity assets. So we're the least levered. We have third most capital. Our highly liquid assets are like 29% our cash and securities. Our AOCI problem, which is the mark on the bond portfolio. Banks are struggling with that. We're very good there. So our capital, our liquidity, et cetera, was very strong. So we didn't experience outflows of deposits or anything. What we did experience was a rotation, like every bank in the country, from non-interest-bearing deposits to interest-bearing deposits. So all banks if you want to call this cost of goods sold went up. But the regional banks for us the reason I wanted to come back and talk about that people call it a regional banking crisis. It was not. It had to do with certain banks were of the size that they define regional banks that had the wrong strategy, the wrong concentrations, and they failed, right. That's not because they're regional banks, right, they just happen to be that size. By the way, credit Suisse failed too. It is a global bank, right. So you know, I think this is sometimes where the media gets the message wrong and puts fear into the market, and they love it, and they love it and so I'm really proud of what the regional banks do and how they serve their clients in market and their local communities, giving back to their communities, being Main Street lenders, and I'm really proud of. You know how we do that. I think I told you before we went on the air. We're the number one lender of Texas-based businesses, of any Texas-based bank. That's a big deal because these money center banks they may be in the state or super regionals in the state or even regionals in the state but, if they decide, oh you know what, it's not okay to bank an energy company, they don't Well, guess what? We have those decisions here. We don't have somebody else deciding our social norms. Chris: Right, right, that's a great selling point. Going back to the kind of the junior program and this new team, let's talk about culture, I mean. So how would you define the culture at Texas Capitol and kind of, what do you think you've done to kind of foster that and what do you see as necessary to keep it growing? I think? Rob: the culture is transparent, curious, candid and relentless dissatisfaction, as my general counsel calls it. So, look, we've made a lot of change. We'll continue to make a lot of change. We just hired somebody to run public finance for us. We didn't have that before. Lot of change we just hired somebody to run public finance for us. We didn't have that before. We started into the foray of public equity, research and oil and gas. We're going to keep growing and building, doing things that serve our clients and our clients' needs. But the one thing that we kind of talk about a lot is and I'll say it little softer is you know just no jerks allowed. You could talk about, you can talk about Ivy League. You know culture and they have you know big words, but the simple thing is like we're gonna treat people with respect, period. Right now. You can be tough and you can be hard, but you gotta be fair, right, and you gotta be polite. And you know you can be hard but you've got to be fair and you've got to be polite and you can have high expectations while being compassionate. So we have high expectations, we are moving fast, but we do treat people with respect and we like working with one another and that's been part of the fun is, we've been in office because we think that's how you build a career and not a job, and that's how you collaborate to serve your client and that's what's best for our clients and best for employees. And we like being with one another. We don't want to work remote from a beach and not share life's experiences with our colleagues. Chris: Yeah, couldn't agree more. I mean, we got back to the office in May of 2020. I believe, and my partners here, you're a part of an organization for a reason. Organizations are a group of people together, right, correct, and we learn from each other. We can collaborate in a customer service-related industry. Like you and I are in the customer does better when we're collaborating to serve them, you and I are in the customer does better when we're collaborating to serve them, and we do that when we're together. Yep Hands down, no question. And we've been like you. We've been in office in person for a while now and you read as much as I do for the last six, seven months. You just see the pendulum swinging back because the other organizations are realizing they're losing customer satisfaction, they're losing engagement with their people. You can't have a culture if you're not together. In my view, or you can. Actually, you can have a culture. It's just not a healthy one in my view. Yeah, it's really bad, that's right. Rob: So, look, looking back, it seems like a really easy decision and, by the way, I was back in the office in 2022. But at this room, I didn't get there until January 21. Nobody's back in the office. You meant 22 as well. Yes, I did. I did. Excuse me, I did, but you know I got here in 21. We went back to office Memorial Day the Tuesday after Memorial Day of 21. And it was a harder decision then. It seems easy now Because, like even the day before, there was rumors of everybody in our ops organization that they were going to protest and walk out. You know at 901 and we decided, we made a conscious decision that this is what they're going to do and we wanted the people that wanted to be in the office right, and we may lose some people, and that's fine, and it would be harder in the short term, but the people that would be attracted to the platform and the business and us would be people that wanted careers, not jobs, and, by definition, those are the better employees, right, and I think those people attract those people and that's how we were able to transform so much while other people were sitting at home. Chris: Yeah. Now to your point. I mean, if you have a long-term strategy right, then you're willing to go through some short-term pain to get the right people that are going to help you achieve that For sure. A little bit about just your thoughts on what are some of the biggest challenges you think facing the banking industry as we sit here today and maybe for the foreseeable future. Obviously, for the last couple of years, every month everybody's watching the Fed, so that may be part of the answer. But just what do you see as the challenges? Rob: Yeah, so there's plenty for most industries though, too. So one is, and this is an excuse, but it is a challenge. The regulatory body needs to come together and be consistent and apply things consistently. That'd be helpful. We have an inverted yield curve now for the longest time, one of the longest periods in history, you know the two years four, seven something. The 10 years four two something. That makes banking very hard for a lot of technical reasons we can go into. For most banks, technology is a problem. Most banks are an aggregation of multiple banks. They're not like us that has one technology platform. That's, by the way, brand new and totally modern. Banks have not been willing to. It's been a cost cutting game because a lot of banks this is why our strategy is so good NIM banks. So net interest margin, which is loan only, the model of taking a deposit and making a loan and achieving a return above your cost of capital through cycle, I think is very difficult and that's why we supplemented our platform. You know loans, investment banking, private wealth. You know all the different things we do for a client so that we can achieve that return, because a lot of the banks to have that return would have to maybe make a riskier loan to get a higher spread or what have you? So I think the NIM banking model to get a higher spread or what have you? So I think the NIM banking model especially after spring of 23, is hard. I think the technology spend is hard. I think there's a lot of banks that have too much commercial real estate. So our commercial real estate is a very small percentage of our total capital. Regulators want you to be maybe 250 or 300%. There's a lot of banks that are 400. That's too much, yeah. And when you have that much commercial real estate, remember a lot of its construction loans, and so the construction loans. You made that decision today and you're funding it in two years. So you're going to you're that that concentration, because those paydowns are, you know, like a five-year low and commercial real estate is going to keep growing. So banks marginal loan the dollar to make the next loan. The cost just went up, so they're going to slow down their lending while the commercial real estate gets absorbed. They can't be relevant to their clients with anything other than the loan product and if they're not doing that, they're going to slow down their growth and slow down lending. They can't be relevant to their clients with anything other than the loan product, and if they're not doing that, they're going to slow down their growth and slow down lending. They don't have the margin to spend on technology. Chris: And those are some of the problems. Yeah, there's cascades, right, totally. Let's turn a little bit to just kind of you and leadership. How would you describe your leadership style today and maybe how you feel like it's evolved over your career? Rob: I think you've got to do what you want other people to do. So I'm in Houston today. We're seeing six clients we talk all the time about it's about the client, not us. Ops exists to serve a client, technology exists to serve a client. It's not for the bank. And so we have become pretty client obsessed at Texas Capital, delivering the best outcomes for our clients. I mean, like the one deal I think I told you about, we sole managed the largest debt deal in the country last year. The largest sole managed debt deal in the country last year. That's after a money center bank failed doing it. We gave the client the best advice, knowing they'd probably go with the other bank. They did. The other bank failed them. They came back to us and we did it. Now we have a client for life. So give the client the right advice, do the right thing for the client, but your people have to see you do what you want them to do. So I'm with clients. We are aggressively serving clients, but we've managed the place very conservatively. And then I think candor and transparency is really important. Chris: I think those are great qualities, anything that you could point to. I always think people I'll speak for myself, but I think I hear it in others as well a setback or failure that you encountered, that you learned from, that made you better as a leader, as a business person, anything that comes to mind, that where you look back and go, wow, that was transformational. Because of that, how long do you have? Rob: No, I think we talked about junior program, one that always comes to mind because there's early on the program of what early on my career was. When I was a junior, you know, I talked to that junior class a lot and one of the things I tell them is be careful, because you know, building your brand sometimes is too easy, like you know, if you do something great, like I had some successes early on as being a good client guy, then I was the client guy, but also my brand that I got early on was, as a junior was I wasn't very good at details and as a junior an analyst associate your only job was details Right, and so I learned the hard way that maybe I needed to focus on the details. Now I would suggest that the people that work with me think I'm too focused on the details. But that's because I learned the hard way as a junior and people corrected me Right and I'm not sure if they corrected me the wrong way or right way. That was the old days, but they certainly made an impression. So I think that was one of the things I learned is details matter and details are important, and I learned it as a junior and that stayed with me throughout my career. The other one was one I think is interesting is later on, when we were talking about a promotion, one of my bosses told me that I think this is really important for people to know, because I think it's true. He said rob, I don't it, my vote doesn't matter. The vote that matters is everybody else on the floor that works with you, because I'm not promoting you unless they want you promoted, right and so I do think that you know that's a pretty good lesson too. Chris: Yeah, kind of well servant the well, servant leadership, for sure, and that kind of team mentality For sure, team mentality. And I've said forever, I think the lessons you remember the most are the ones you learned the hard way. For sure, so the details right. Chris: So he's like I'm not going to let that happen again. For sure, that's great. Well, I appreciate you sharing those up, but I think it's a great quality leadership to have that vulnerability and humility about you for sure. So I'm going to kind of move away from the business stuff. Okay, to wrap things up, I want to know what was your first job, my? Rob: first job was uh bagging groceries and stocking grocery shelves in high school I did the same thing, did you? Chris: yeah, uh, it was hot and yeah, I tell people we had to wear like black pants. Oh, yeah, these kids get to wear shorts. Now I'm like this is going easy on them. Rob: Yeah, I think one day one of the guys got mad at me because they made me restack all the remember when people used to return the glass bottles. Yeah, and it was in a cage in the back of the alley of the grocery store. It was about 110. And nobody had organized them for about three months and I got fine job. Chris: Very good. All right, you're born and raised in Texas, so do you prefer Tex-Mex or barbecue? Rob: Both Like a brisket taco. Yeah, that's pretty good. Yeah, yeah, I like that All right. And last thing if you could take a 30-day sabbatical, where would you go and what would you do? I'd probably spend half of it fly fishing in Montana and half of it quail hunting in South Texas. There you go, Just not this time of year. Not this time of year. That's right. Chris: Rob, I want to thank you for taking the time. I mean, I had no idea the details behind the transformation at Texas Capital and obviously what you and your team are doing and have done is nothing short of remarkable. So thanks for sharing that. Rob: Well, thank you, I think you know. We think Texas does deserve its own full-service financial services firm. Chris: Well, I'm glad you're delivering it. Thank you, take care. And there we have it another great episode. Don't forget to check out the show notes at boyermiller.com forward slash podcast and you can find out more about all the ways our firm can help you at Boyermiller.com. That's it for this episode. Have a great week and we'll talk to you next time. Special Guest: Rob Holmes.

Building Texas Business
Ep075: Healthcare Leadership with Chantell Preston

Building Texas Business

Play Episode Listen Later Jun 26, 2024 38:43


In this episode of Building Texas Business, I sit down with Chantell Preston, CEO of Facilities Management Group. She takes us through her journey of transforming the healthcare industry - from an unexpected start managing facilities to founding Mentis Neuro Rehabilitation. Chantell's strategic moves in positioning her company through the pandemic era offer key leadership lessons. We discuss her transition in fostering trust and respect amongst staff, vital for a positive culture, especially in difficult times. Her reflections on setbacks emphasize emotional readiness for both failures and leadership burdens. Wrapping up on a lighter note of future dreams, from travel adventures to family time, Chantell offers a well-rounded portrait of an impactful leader. SHOW HIGHLIGHTS Chantell Preston shares her unexpected entry into the healthcare industry and how it led to her role in developing numerous healthcare facilities across Texas. We discuss Chantell's experience founding and successfully exiting Mentis Neuro Rehabilitation, a company focused on traumatic brain injury patients. Chantell explains her strategic decisions and leadership style transformation during the COVID-19 pandemic, emphasizing the shift from an authoritarian to a collaborative approach. We explore the importance of trust, respect, and open communication in maintaining a positive team culture, especially during challenging times. Chantell recounts the lessons learned from entrepreneurial setbacks, including the emotional toll of difficult business decisions and the significance of building strong relationships. We discuss the tactical choices made to support frontline workers and expand service lines during the COVID-19 pandemic. Chantell reflects on her evolution from a closed-off, authoritative leader to a compassionate and empathetic one, inspired by her business partner's example. We talk about the challenges and liberation of breaking societal norms as a female leader and the importance of achieving work-life integration. Chantell shares her personal dreams of travel and family time, highlighting the difficulty of balancing a busy work schedule with personal aspirations. We discuss the advice Chantell gives to young entrepreneurs, emphasizing the importance of focus, having a supportive team, and being ready to pivot when necessary. LINKSShow Notes Previous Episodes About BoyarMiller About Facilities Management Group GUESTS Chantell PrestonAbout Chantell TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Chantell Preston, CEO of Facilities Management Group. Chantell is a self-described risk taker who emphasizes the importance of establishing trust and respect in building a strong company culture. Chantell, I want to thank you for coming on Building Texas Business. I appreciate you taking the time. Chantell: Thanks, Chris. I appreciate you inviting me to come on. Chris: So let's just kick this off by telling us a little bit about Facilities Management Group, the company you're currently CEO of. Chantell: Sure, so Facilities Management Group. We're really a platform company. We own and operate healthcare facilities throughout Texas. Initially, when I took it on, we had a hospital in Las Vegas, but we divested that and sold that to a local system there, and so now our main facilities are here in the Texas market. Chris: Okay, and I know this isn't your first venture in the healthcare space Tell us a little bit about how you got involved or found yourself being an executive in the healthcare industry. Chantell: Sure, it's kind of an interesting story, chris. I don't think any of us know when we graduate from college where we're going to end up in life, and I can truly tell you I never thought it would be health care. So you know, straight out of school I got a great opportunity to go to work for a small company that was developing ambulatory surgery centers. Didn't know anything about ambulatory surgery centers but I knew the folks that were in the organization. So took the leap of faith and I just wanted to learn every aspect. I felt like if? How could I go out and sell things if I didn't realize or understand how they were operated? So took the opportunity to really dive into the health care and learn both the development aspect as well as the operational aspect. Best thing I ever did. From there just kind of soared, I became very niched in regards to building healthcare facilities. I've built over 65 hospitals in my career, whether they're LTACs, rehabs, full acute care hospitals, linear accelerators. So I just kind of found a niche. I really enjoyed watching something from concept to operations. However, I got to a certain point in my life I decided I didn't want to be a consultant forever. So my previous partner and I started a company called Atlantic Health Group. We were going to be a surgery center company. We realized the market was saturated at that point, so we started a company called Mentis Neuro Rehabilitation. Mentis was assisted living rehabilitation for traumatic brain injury patients. To be honest, we really didn't know much about it when we started. We built an amazing team to operate the company for us and then we realized how much need there was for traumatic brain injury patients, so we continued down that path. I continued to build facilities to generate revenue, to build Mentus, so we didn't have to raise huge capital. So we bootstrapped everything together and we took Mentus from concept to exit in 2015. Chris: Wow. Chantell: So we exited the mid-market. And then comes back to what are you going to do with your life from there? So I really stayed for about a year and realized that just my heart wasn't in it anymore. Things changed. We built such an amazing culture, so really focused on what was the next phase of my life. That's when I ended up taking over facilities management group. One of my partners that was operating the entity got ill and so I stepped up and said I'll take over, and that's when we really developed Facilities Management Group. At that point, we had a lot of individual facilities running independently of each other and we wanted to build a platform company that we could have some synergistic services across all facilities. So that was 2018. And so that was a great ride. I learned a lot. Six months after I took over, covid hit so you can only imagine what happens with the hospital industry when that happens? Chris: Yeah, I'm sure there's. We'll get into that because there has to be a lot of good stories there, but I can't help but notice that, as you told, that is, you talked about being thrown in cold, knowing nothing about the industry healthcare that is but then you found yourself evaluating opportunities for surgical centers and then the mental health, brain injury type of facilities that you mentioned. I want to talk about what type of processes did you go through, and or with your partners, to evaluate the opportunities when you're like, okay, what's next or what else can we do? What are some of the things that you found to be valuable and useful in going through that process, as well as maybe some of the things you wish you hadn't done? Chantell: Sure, Great question, chris. You know, as we all go through our career, we, you know, we try to evaluate things. Everybody looks at things very differently and you know you probably say I'm a calculated risk taker. So, again, I wanted to be able to find a path where, you know, my number one was I wanted to help people. You know, I think most of us get into health care because we have this naivety that we really, you know we can make a change in the world, and I think we do, just maybe different than what we anticipate when we go in. So I think it's really about when I would look at each of the opportunities that came up. You know, again started at a small company and I wanted to learn as much as I could, and then I got recruited from there. Once I found a niche for myself, I didn't really have to go looking for jobs. People would come to me, but then it was like, okay, I learned some hard knocks at the same time as to going to work for folks, because they throw a lot of money at you or they say, oh, we're going to create this amazing environment, and then you get in and you realize this is not really a productive place for me to be and in those situations you just try to take, learn everything you can, you know, gain as much experience and knowledge, because I look at everything as a stepping stone to the next place. So when we, you know, when we started Atlantic, it was kind of an interesting scenario because I had a ton of development partners that I had already established that I was working for as an independent consultant. I didn't really want to be a consultant forever. I wanted to build something, I wanted to have some security. So I actually talked my partner, my business partner, into leaving his organization because he had a skill set that I didn't have. So he was really more around the finance side of things, operationally, and I was really more the development aspect. And so you know, and I was really more the development aspect, and so you know, I think it's really important when people look at their careers, a everything in life is a stepping stone to the next thing. I mean, you have to look at it that way. What can I get out of this particular situation to advance my overall objectives later? Chris: Sure. Chantell: But also who you're getting in bed with and I speak a lot to entrepreneurs. It's really important to pick your partners wisely. And when you say your partners, you know I tell people it's like a marriage. Oh well, we're best friends. We're never going to, you know, get sideways with each other. Well, it is important that when you're going into a partnership, you know even a company is what's it going to look like if we got divorced? I look at everything as it's kind of like a marriage. Chris: No, no, Look, I advise clients all the time into the same thing. You know, be careful, Don't do 50-50 unless you have a good deadline provision. But it is they are. I can attest from being on the litigation side of these things. They are truly business divorces when they go south, and we always tell people it's better to invest up front to getting your documents right. You don't want to think you and your best friends could ever go south, but there's a reason. There's a bunch of law firms and lawyers that stay busy because that's what happens. Chantell: Right, and I was fortunate not to go through that. To be honest, it was just, I was very cognizant and I think when I was younger I didn't realize the value I brought. So I felt like safety was in numbers, right, and sometimes we create an environment around us because it makes us feel protected and then at the end of the day you go, wait a minute, what about me? And so you know again, lessons learned. You know, we also have a tendency, you know, adhd. We're all entrepreneurs. We like to do lots of different things. You know a few mistakes that we made along the way was we started getting into things that we didn't know too much about, because it was the shiny penny oh this is great, let's go do this and then, oh my God, we would either lose a ton of money. You know a lot of headaches. We didn't stay focused on our core business and it kind of school of hard knocks a little bit. It took us a little bit of time to realize that, hey, we need to solely focus on, you know, our core business, mentis, and let's stop messing around with all this other stuff that seems like it's fun and exciting. Let's stay focused on our core business until we reach. You know what we were hoping to accomplish. Chris: That's great advice. The discipline of staying focused on your core and what you do best can't be overstated. So many people lose their way because of the distractions, and you're right. They end up costing more money than you expected and taking more of your time away, and it takes it away from your core, so then it suffers. Chantell: That's right, and people don't realize. You know, time is the one thing we'll never get back in life, and so if you're looking and focusing your attention on something else, what are you losing at your core business? And I see a lot of entrepreneurs and a lot of people oh, I want to go do this and this. Again, we did it Not successful, but we did it. And so now, when I'm looking at things and where do I want to go next, it's where do I want to spend my time, knowing that if I spread myself too thin or too many things, I won't be as successful as I want to be. Chris: Yeah, that's great advice. I hope people are taking notes on that. So let's go back. You kind of left us a minute ago taking over the reins at FMG, right before COVID hits. Obviously, you have to manage through that in the healthcare space. Take us back to that time. What were some of the things that you learned, having to manage through such an uncertain period of time? Chantell: When I took over FMG there was a couple things that identified very quickly. Again, they were all running as independent facilities and there was no collaboration and really the culture there was no culture. You know, in my previous organization with Mentis and a lot of the companies I've been involved with, culture was huge. You know, you wanted people to want to be there and fortunately we were able to quickly build a culture that we felt and it was actually proven true through COVID that people wanted to be there. You know I was very visible in our facilities. I wanted people to know me, I wanted to hear what they had to say. As a new CEO coming in, you know, tell me how can we help you do your job more effectively? How can we help you be happier? You know, looking at things in a different perspective, other than you need to be here nine to five every day, do exactly what we want, right? You know, when COVID hit, the uncertainty of everything I mean we were. Some of my facilities were emergency rooms at the time, some of them were hospitals. You know we had limited staff, we had limited services. You know, when COVID hit it was really interesting because with the unknown of nobody really understanding the magnitude of what was happening. It was decisions on a day to day basis. Right, you know, everything was a crisis every single day. It was a very time for me, as a leader, to figure out how could I continue to hold on to this culture that we had built so we didn't lose staff, right? So, but also giving our staff the ability to take a break every once in a while, even though we didn't really have folks to fill in for them, in for them. So it was a time that we really had to bond together. And again, me being in our facilities during that time, even though I really couldn't do much to help, but at least showing my face, saying hey, I'm here with you and I'm standing beside you, especially on some of those hard decisions, I think made a big difference for our success. Chris: Yeah, you raised an interesting point there because first of all, I mean I it's been four years and maybe the memories start to fade but health care frontline workers, right, that was ground zero for the response. So I can only imagine the taxing environment for your employees. Most CEOs can be there shoulder to shoulder with their employees and maybe actually get in, you know, step in on the manufacturing line or pick up something and help out in the shop, and if you're not a licensed physician or a PA or a nurse, you can't right, you couldn't do the work, you could just be there to encourage them. Chantell: That had to be a challenge. You know you're right, because we just want to jump in and help and but there was a lot of things that what I could do and again you know, spirits high, helping clean, I mean there was, you know, again it wasn't above anybody. We had to kind of all throw hands in, all hands on deck, to help out in any aspect. And so we did what we could to try to motivate and try to help give people some breaks and give them the resources that they needed, and that was a big thing. That we did was just trying to get the resources that they needed, and so it was a trying time, but again we came across. You know, as a CEO, I wanted to be able to expand our service lines because we knew what was coming. And you know, after we got kind of settled in and we realized this was going to be a longer, a longer path than we thought, we converted all of our ERs into hospitals so we could provide additional service lines. So there was things that we could do on the strategic and on the management side where we weren't necessarily in the trenches, but yet it provided our staff some amazing resources that they needed. Chris: So you talked about culture and how important it is. It doesn't have to necessarily be at FMG, but just in your role as a leader. What are some of the things that you have done to try to build that positive, sounds like collegial team environment type of culture at the various organizations you've been? I mean, is it kind of the same playbook every time, or you know? If so, what is it? And if it's changed, how do you adapt? Funny question I'm just going to. I'll give you a quick story. You know? If so, what is it? And if it's changed? Chantell: how do you adapt? Funny question. I'm just going to give you a quick story. You know there's a lot of people that have been with me for the last 10, over 10 years, so they've seen me kind of develop as a better leader as I've gotten a little bit older. So in my old days, I have to tell you I was probably very authoritarian, very dictatorship it's my way, no way. And leadership, it's my way, no way. And then, as I've gotten a little bit older and through you know my role at FMG I realized I can't continue to lead like this. This is not how to get the most productivity out of my staff, and so I changed a lot in regards to how to build a culture. And so now you know people will tell you these are the four principles I use authenticity, I want to build trust and respect. You know again, you know I'm going to be very direct with individuals. I don't beat around the bush and I think anybody that knows me knows that. Collaboration I want people to have the ability to have a say. I want them to take ownership. You know used to as my way. You know we're going to do things my way. Now it's let talk about it Because, in today's world, I want my staff members they're there for a reason and that's to come together in a path or a process that everyone feels like is going to be beneficial to the organization. Now, it doesn't mean I won't give them my thoughts, but again, that collaboration and that belonging, I want them to feel like they're part of the team. Whether you and I both know, in an organization everyone's valuable and I want everyone to realize how valuable each member is and where they fit within that organization. Authenticity, trust, collaboration yeah, those are communication too, you know. Chris: Oh, for sure. Chantell: We used to be like we wouldn't tell anybody anything, you know, just say here's our goals, to go do them. Now we really talk about why you know and really have those hard conversations about this is you know the company. And when we went through COVID I know everybody's tired of hearing the COVID stories, but when we went through COVID, you know we would tell them hey, this is why we're doing this. And it wasn't just oh, they're causing us all these headaches. You know they're pushing stuff down. No, it was. We're doing it because of X, y and Z, and that made people appreciate it a little bit more, versus us just shoving things down. Chris: Yeah. Chantell: And so I think communication is a big one as well. Chris: Couldn't agree more. I mean, I think you know, at the end of the day, all those things sound really good and are important, but if you're not communicating effectively, it won't matter. That's right. So, something that occurred to me, I want you to talk a little bit about being innovative, because I know for sure at FMG, because I just know enough about the story that in the middle of all that y'all did some pretty innovative things that other competitors of yours weren't doing. That required some really quick on the fly decisions to get some innovative things going. So tell us about that. It helped the patients and it helped your facility. Chantell: Sure, you know, one of the perks of dealing with a smaller organization is we can make quick decisions. So when all of this was happening, you know we did have to get innovative in regards to how we were running tests, how we were treating the patients, what we were doing when we couldn't find patients higher level of care. So there was a lot of innovation that we did, you know, whether it was streamlining our processes, whether it was, you know, the equipment that we were bringing in to try to mitigate certain things. I mean, there was a lot of stuff that we did that if we weren't going through that time, we probably wouldn't have been forced to do so quickly, if that makes sense. And so there was some stuff that we tried to do in regards to you know, I'm trying to think of some specifics. A lot of it's around the labs and the testing side of making sure that our patients are being treated in-house versus having to send things out. I mean, we just tried to do everything we could to control our own destiny. Advert Hello friends, this is Chris Hanslik, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermiller.com, and thanks for listening to the show. Chris: Well, for example, I know one of the things you did was very quickly developed an app so patients could schedule an appointment that you didn't have before. Chantell: Yeah, that's correct. We tried to do some things so people would mitigate being around other, you know, possibly infected COVID people. So, yes, we did do some things to try to limit exposure during that time, just because, again, we didn't know what was going to happen long-term. Chris: So I guess one thing that people may not know about you that we want to talk about is, in addition to this professional you know journey you've described, you do a lot and have done and continue to do a lot where you advise other entrepreneurs. I want to ask you a little bit what are some of the kind of the key nuggets of advice that you tend to provide, and maybe what are some of the mistakes you see young entrepreneurs making that you try to correct before what still can be corrected, I guess Sure, it's kind of interesting. Chantell: The world has changed a lot in regards to entrepreneurship. You know, in our day it was just work your ass off. You know 24-7 and just try to climb the ladder. You know now, with some things that have happened, you know, with technology, sometimes they have this misperception that it's just going to be easy, it's going to be rainbows and unicorns all the time. It's not. There was many nights we'd sit at the bar going, holy shit, how are we going to make payroll? So I mean again, I think it's bringing that true realism back into their world of hey, you're not going to go get a CPT code for a device that doesn't exist in six months. It just doesn't work like that. And I think sometimes these young entrepreneurs are given almost bad counsel because they think that things are just so easy. Well, so-and-so did it, so I can do it. I see that a lot. I do get the opportunity to speak to some of the entrepreneurship classes up at UT and I do probably focus more on the negatives versus the positives, because I've always learned more from my failures and my successes. Some of the things of hey look, be focused. You know you don't have to have everything figured out, but have a pretty good path of where you're headed. You know, and surround yourself with the folks that are going to build you up, not break you down. You know, as an investor as well. I look at who's the team. If you've got a good jockey, I'm going to go ahead and support you. Having that right team in place is so critical and you want it to be more than just one individual. You know you want to make sure if they get hit by a bus, somebody else is right there ready to take the company. So I think that there's just little things that you know. I would probably give some insight to the entrepreneurs of you know, again, you're going to have good times and bad times. The bad times will come and go. But again, being willing to pivot If something's not working, don't wait too long to pivot or to reevaluate maybe certain aspects of the organization. Chris: Okay, so you brought it up, but I was going to. You said you learn more from your failures than successes, so tell us a story it's story time now, chantel a failure or setback that you've encountered, experience that you survived because you're sitting here today, and what that learning was and how it made you better. Chantell: So we talked a little bit earlier about how we got a little bit outside of our wheelhouse of oh, let's go do some different things, because we, you know, have been very successful at what we were doing. We were trying to purchase a hospital group out of bankruptcy. We thought, oh, how hard can this be? We can run organizations, we can run ASCs. Why can't we do this? It was a very eye-opening experience because when we got in there, we hadn't really had a path forward as to what we were going to do or how we were going to do it. It was just like, oh, we'll figure it out as we go. We also didn't think about other things that could come in and really impact us that we couldn't control. So we had purchased, we were in the process of purchasing this group, they were in bankruptcy, and then we had a flood. Well, we had just finished remodeling a hospital here in town. The flood came in. It flooded the hospital. At that point we were kind of at a place where there was not much more we could do. It was a horrible time to have to tell all those individuals that worked so hard with us that we were going to have to let them all go and you know lessons learned. You know there was positives in there because I remember the day we were getting ready to tell these poor individuals we were going to fire them the night before. You know we probably drank too much and you know it was a very emotional situation because I'd worked hand in hand with these individuals for so long. Chris: Sure. Chantell: And I remember having to tell them in tears I mean, you know, I know we're not supposed to be emotional, but these are these people's livelihoods. I was emotional, I you know I was not in a great place and I remember, after that happened, one of the the janitors came up to me and she said don't worry, chantel, we're going to be okay. But are you going to be okay? Chris: Oh, wow. Chantell: And I realized, you know, even through this failure, we had built such great relationships with these individuals and made them feel valued in so many ways that you know again, that's probably a really good example of learning myself of how important it is for relationships you know and building that trust as a leader. Chris: Well, to what to point you made just a minute ago. There is emotion in business. For sure, people try to carve it out and maybe for decades that's been the mentality, but it's ignored the reality that there's emotion in business and you're affecting people's lives when you are hiring them and when you're firing them. So you know people that lose sight of that are missing the boat, and I think how you manage the emotion in the business is one thing, but don't make the mistake of thinking it's not there. Chantell: No for sure, and you know, again, my old days I would have never showed, you know, a whole lot of emotion. I will tell you, though, being authentic with people just builds more trust. And look, some people say I'm very challenging to work with. You know, because I'm very specific, I'm very direct, but you know where you stand with me at all times, you know, and I had a situation last year where I had to let someone go, and it was. I mean, I really love this person as an individual, but this just wasn't the right place for them, and I tried very hard to mentor, to get him to that place, and I just couldn't, and it was very emotional to have to say, hey look, this is not, you know, the best place for you. The greatest return was six months later. They contacted me and said thank you so much. The best thing you ever did was have that conversation, and now I found a place where I love I'm being respected, and so, again, I think we all have emotion. It's as you mentioned, it's how you use it. It's okay for people to realize that you're human. I mean you know I'm human, I mean, and so I have emotions, and there's people I like and, again, you are impacting their lives and they're impacting yours. Chris: For sure, and I mean I have a number of stories similar to the one you just shared, where you run into an employment situation that's not working. You, knowing that it's not working, have to make a decision, expend a ton of emotional energy over it, worried about it. My experience has been, I think I can say, almost every time, despite that hard conversation, that person ends up in a better place because it's where they were meant to be. And we say this all the time. We're not trying to be the largest organization. We just want to be the best for those that fit with our mission and what we're passionate about and our values. And doesn't mean we're right for everybody and that doesn't make people a bad person. Chantell: That's right. Chris: There there's another organization where they're going to fit. Chantell: And and, and she did say to me she goes thank you, because I always knew where I stood with you and thank you for always being very direct. You know and that's the other thing people hide from those conversations. I'd rather have those conversations, you know, leading up to it. Look, here's the expectations. Let's talk about how you can get there, and I'm always happy to mentor and advise, but at some point you have to say, hey, look, this just isn't the right place. Chris: Right. Chantell: And so, and that's OK too. Chris: So let's talk a little bit about as you built these companies. You've had to have key stakeholders and relationships with them that are part of the success, that's vendors, customers. Let's talk about what are some of the things that you've learned that have helped to kind of build, nurture and grow those types of strategic relationships, if you will. Chantell: Sure, most of the people that I still work with, I've worked with for many years and I think you know I tell people all the time my integrity is the only thing that I really is mine in this world. My kids have everything else, but my integrity is mine. I think it's really being fair with people. You know I'm loyal to a fault, but I'm also again, I don't want to say high maintenance, but I have great expectations of people as well. And so if you look at a lot of the vendors, you know, again, they've been with me forever because I'm very loyal to them, I'm very fair, I'm very direct and they're good to me. Chris: Right. Chantell: You know, and I think as I've gotten older I had never realized the importance of relationships and how you have to be very intentional with giving and taking Right Right. But I also know with my vendors, they do a great job for me. I'm going to, I want to give them out to everybody else. I mean, I'm going to drive business their direction. And so I think that you know, with the stakeholders, a lot of people make a mistake of. You know everyone's got to win. You know that's just the reality. There's an abundance for everyone in life. You know, one of my best friends is a direct competitor of us. We laugh all the time. We can't be friends in public, but we can be friends behind closed door. But there's an abundance for everyone in life and so if you treat people like that and you're fair, I think you know you win, everyone wins. Chris: Everyone wins, and that's the thing I think finding the way where everyone can win, sure, and there's the value in kind of reciprocity, right, when someone does treat you well, that you obviously should treat them well in return. But have that be a lesson how you should be treating others that you're coming into contact with, right, absolutely, absolutely. So you mentioned this earlier because I like to talk about leadership style and you've kind of alluded to some of your evolution. Any more you can share kind of on how you view your style, how you feel like it's evolved and maybe some of the things that have helped you make those steps to kind of grow from the command and control to the more collaborative leader. Chantell: I think self-awareness, I think when we're younger, we think we're invincible and we do no wrong. I think self-awareness, I think when we're younger, we think we're invincible and we do no wrong. I think self-awareness has been critical for me, just for personal growth, right. So I also realized, you know, I wasn't getting the most out of the people and I realized that how I came in impacted everybody around me, if that makes sense. Chris: Sure. Chantell: So when I walk in and I'm closed off, everyone's going to scatter. If I walk in and I'm in a great mood and I say hello to everybody, your energy that you put out, you get back. And so I think, as I've gone through my career path, I've realized that, getting more and really I had a great partner, business partner, that he would talk to everyone. I wondered how he got anything done some days because he was just the most jovial guy that loved everyone and he would sit and listen to people for hours and I used to say I don't know how you do this. Isn't this driving you crazy? You know, I just I want, I don't want to know what time it is, I want to know, yeah, I want to know what time it is. I don't want to know how to build the clock. And I realized how much everyone respected him because he not only cared about them on the job, he cared about the whole person. Right, and people felt that. And I finally asked him one day. I said can you teach me how to be like that? Because I want people to realize I do care. I may not come across and show it, and so I that's how I kind of evolved, of taking that time and realizing ten minutes out of my day of sitting down and really focusing and being present with people, how much more they wanted to be there, how much more productive they were, and so it's really again being the leader that you have to establish boundaries. I'm not saying you, you know, let everybody circumvent their ladder, but having the ability to really show how much you care for those individuals and also what's going to put them in a position to be a better employee, right, right. And look, I went through a big thing with my team about working from home. Okay, I hate working from home, ok. Chris: I hate working from home. I'm just going to tell you that I like the collaboration. I like everyone in the office. You know that you're in good company. There was literally an article in the online Houston Business Journal this morning about that topic and how everything is swinging back to five days a week in the office. Chantell: That's right, and it was a big fight in my office about that and I finally said, okay, let's compromise, because I realized that some of them were driving an hour both ways, okay. So Mondays and Fridays we have home days. Tuesday, wednesday, thursday, we're all in the office. So again, I met them where they wanted to be and how could they be most effective. And I realized, having that time at home, where they didn't have 5,000 people walking in their offices every day, they were more productive. And so again it's you know. You know you asked me a specific question about how I've changed. I mean, I've really come, you know, 180 in regards to who I was many years ago versus how I am now. Chris: Well, and what I hear you saying is there was an evolution and development in your leadership style that started to focus on and demonstrate humility and empathy, absolutely, you know, going back to kind of the work remote thing. I think those things, what you've got going on, can be successful because you have to start with why are we here? It's the why around the company, and we have to all agree that the company has to survive in order for any of us to have any benefits. That's right, right and so what's that going to take? And then where can there be some compromise around? You can't sacrifice productivity and you can't sacrifice delivery of services or you won't have the business. Right and right. It's really to me, getting clear around that, communicating, that we talk about communication with clarity and really everyone understanding the why absolutely, and I'll just we'll talk about the elephant in the room also being female, I mean. Chantell: So in my younger days I thought in order for me to gain respect, I had to be that authoritative bitch. You know. Basically Because that's what society told me, you know in order for me to be able to play in a man's world, I had to really be that person. You know, as my career, and I got to a point where I didn't need anybody's approval or permission. You know, I realized, got to a point where I didn't need anybody's approval or permission I realized, wait a minute, I can be my authentic self. I can be compassionate, I can be empathetic and I can still be a damn good leader at the same time. Chris: That had to be liberating. Chantell: It was very liberating, and I try to instill this with a lot of the women that I talk to now. It's okay to be who we are. Let's use our innate qualities that make us such great individuals in our professional lives. You know, and I mean again, people say I'm aggressive. That's okay, I'll take it and I can be, but it enables me to also utilize what I need to build the culture and the team that I want, and so I think that's also been, you know, the last 30 years. It's also changed a lot, you know, as a society, but that's also breaking the societal norms of, oh, I have to be a certain way in order to be a good leader. I don't think that's true anymore. Chris: I agree with you Again. I think there's been an evolution in how we think about business, corporate America, whatever. And again I go back to as long as we realize that there are certain fundamentals that, no matter what is going on, we have to do for the business to survive. Then we can look on the fringes and go okay, where can we make maybe some things a little more accommodating. Chantell: Exactly so. Chris: I like to talk about those a little bit. So what are some of the strategies that you've employed to kind of and you mentioned being a mom, being a leader, being an entrepreneur to help, not necessarily balance, but be successful in both your business and personal life? Chantell: Great question. Here's my theory behind that. There's no such thing as balance. Chris: That's why I didn't use the word. Chantell: I call it work-life integration. I can't say I've figured it all out, chris. I'll just be honest and I think it's being very intentional with your time. I used to let a lot of people control my time, meaning, you know, I was always willing to meet whenever they were available. I was willing to move around things because it was important to them. I've now really been intentional about taking control back of my own time, and that's time for myself in the mornings, that's time for my kids, but that's time for work too, and so I think we all have to establish boundaries. Because I used to work 24 seven. I'd be at dinner. I mean, my five-year-old used to say mom, please put the phone down, and I would thought I was that important that I had to respond to that email, right. That second, because that's how important I was. It's not true, and I think that really establishing you know we also try to get through our entire things to do list every day what are the top three priorities I really need to get done today? Okay, let's focus on those. First, because we all know once everybody starts coming to the office, you're going to get blindsided 5,000 different ways. So really prioritizing maybe three items that I need to get done that day and then all the rest of it's great if I do, but if I don't, it's okay to walk out of there at 4.30 to go to my kids' game, right. And so I'm really trying to be intentional with my time. I'm not going to say I'm successful all the time. Chris: You know, but I've really tried with that. You have to keep in mind no one's perfect right, but I think, if you have, those intentions, that thoughtfulness about how you're going to approach your day, and I totally agree with the work-life integration. I think that's a much better way to think about it than balance, I mean. Chantell: I've learned you can have it all. You just can't have it all at the same time. So, everything in life is about a give and take. It's about you know you're sacrificing something for something else. And so it's again where are you in your life, what's important to you? I mean, I waited late in life to have children, you know, and now I'm going to enjoy my kids. So again, doesn't mean I'm sacrificing my professional, but I do amazing conversation. Chris: I really appreciate it. I want to kind of turn to some less business topics that I like to cover with all my guests. So what was your first job? Chantell: My first job. I worked at Mount Asia when I was in high school. I loved scooping ice cream and I loved hosting birthday parties for small kids. Chris: Okay, so that was it. I was going to ask what Mount Asia was. It's that golf off I-10. Chantell: So yes, that was it. I was going to ask what Mountasia was. It's that golf off I-10. Chris: So, yes, that was my first job. I love it. Do you prefer Tex-Mex or barbecue? Chantell: Tex-Mex, of course. Chris: All right. And if you could take a sabbatical for 30 days, where would you go? What would you do? Chantell: Oh gosh, A sabbatical for 30 days. Chris: Does that exist I? Chantell: don't know. I think I would really just like to travel the world. You know, I spent so much time working I would never take more than two days off at a time. I never got to see a lot of the world, and so I think it would probably just grab my kids and just embrace a great trip with my family. Chris: That sounds great. Yeah, pick a spot and go enjoy it Absolutely. Very good. Well, again, this has been great. Thank you for taking the time to share your story Lots. Special Guest: Chantell Preston.

Building Texas Business
Ep074: Reinventing Corporate Culture with Mike Snavely

Building Texas Business

Play Episode Listen Later Jun 12, 2024 35:25


In this episode of Building Texas Business, I chat with Mike Snavely, CEO of Phunware. Mike details Phunware's evolution from a mobile development agency into a thriving SaaS company delivering high-ROI apps to hotels and healthcare providers. Hear how shifting culture from rigid control to empowering autonomous teams with accountability revived success. Key strategic maneuvers included trimming the workforce judiciously and securing capital patiently. Timely decisions breathe new life into businesses' surfaces repeatedly. We delve into crafting a trusting, candid culture. Difficult conversations are promptly addressed and failures learned foster innovation and resilience. I share that I founded such an environment at a former startup. Mike's unique hobby of creatively mapping dream destinations blends work wisdom with life's pleasures, crafting an episode uplifting attendees' strategies and spirits. SHOW HIGHLIGHTS Mike Snavely explains the evolution of Phunware from a mobile solution development agency to a SaaS company that specializes in customized mobile apps for hotels and healthcare institutions. We discuss the strategic decisions and cultural shifts necessary during the transition to new leadership at Phunware, including capital injection and reshaping the balance sheet for growth. Mike highlights the move from a command-and-control culture to one that champions autonomy and accountability, emphasizing the importance of empowering team leaders. We explore the significance of building a leadership team grounded in trust, accountability, autonomy, and candor, and how these principles contribute to a positive organizational culture. Mike shares his personal career journey, detailing his long-standing experience in mobile technology and his eventual rise to the CEO position at Phunware. We examine how Phunware fosters a culture of appreciation and collaboration through a Slack channel called Momentum, which recognizes and celebrates employee contributions. Mike talks about balancing professional obligations with personal passions, including the importance of prioritizing family and maintaining a positive trajectory in both areas. We discuss the importance of in-person engagement for building and maintaining key relationships with stakeholders, despite the trend toward virtual interactions. Mike reflects on past experiences and learnings, including the value of having prompt and honest conversations to avoid delays in decision-making and mitigate potential failures. We delve into Mike's hobby of pinning dream travel destinations on Google Maps and how this practice turns travel planning into an immersive and memorable adventure. LINKSShow Notes Previous Episodes About BoyarMiller About Phunware GUESTS Mike SnavelyAbout Mike TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In today's episode, you will meet Mike Snavely, ceo of Funware. In building and maintaining key relationships with your stakeholders, mike shares his opinions on why there is no substitute for being in person to engage on a human level. Mike, I want to welcome you to Building Texas Business and thank you for taking time to come on the show with me. Glad to be here. Thanks for the invitation. So, as the CEO of Funware, let's start by just orienting the listeners to what is Funware and tell us what the company's known for. Mike: Sure so. Funware is a 15-year-old publicly traded company based in Austin, Texas. We build mobile experiences that help hotels and healthcare institutions engage their guests and patients while they're on premises in ways that drive satisfaction and monetization. Chris: Very interesting. So you said the company started I guess in the early 2000s. Mike: Then it would have been in 2009. The company started. It was private for the first 11 or so years of its existence and then we went public via SPAC transaction in 2000. I believe it was 20. Chris: Okay, and it sounds like a fairly niched focus for the company. How did it come to be that the company, I guess, was so focused on kind of those two industries and providing that type of, I guess, service to those customers? Mike: Well, originally it wasn't. So over 15 years, you might imagine, there's been an evolution in the focus of the company, and so the company in 2009 was really more of a mobile solution development agency. So some of the biggest brands you know in the world really selected Funware back in the timeframe to build some of their first mobile apps in the app store. So companies like Fox, the NFL, the Sochi Olympics, wwe, a number of airports and so on were spending a lot of money to build their first mobile application and then to develop their first mobile audience. For lots of reasons and that was two years after the iPhone was introduced. It was actually before the iPad was introduced and so obviously there's a lot of evolution of consumer expectations when it comes to engaging on mobile, and those brands were spending a lot of money in the early comes to engaging on mobile, and those brands were spending a lot of money in the early days to build their first mobile presences. That's evolved over time, and so agencies are really not, they really don't drive the valuation that a SaaS company does, and so we've, over time, evolved into becoming a SaaS company. So we license our technologies. We'll essentially build an app, configuring it for the customer, launch it into the app store and then generate license fees off that app for as long as it exists and is available for download. That's a much better valuation model because typically when our customers get involved with us they stick around. Our retention rate is very high because we drive a positive ROI. So we've kind of followed the evolution of mobile from really high investment work for hire, boutique agency-like development all the way through today where we charge between 50 and $150,000 a year for a given property, whether it's a hotel or a hospital, to have their own mobile app in the app store, to have their own brand in front of their users or guests and then ultimately to develop that one-on-one relationship with that guest or patient in a way that drives repeat business and satisfaction and additional monetization. Chris: That's fascinating. Now you mentioned retention rate. What do you which obviously is very important for success of a company, especially like yours what do you attribute that successful retention rate to? Mike: Well, we do good work and I can make available to you a list and you could even put it in the podcast if you'd like of the apps that we build, or some of the apps that we build. They're beautiful apps. So, number one, we do really high-quality work that all of our customers are proud to have their name on. And then, number two, we drive ROI, plain and simple. For a dollar they put into our solutions, they get between $5 and $50 back, depending on who they are and the specifics of their business. And you know, if I could give you a machine that would, you put a dollar bill in, you get a five or a 50 back out. You would say how many dollar bills can I put in there? Chris: Yeah, no, no, kidding, right Well. I mean, but fundamentally, you mentioned at least you know two fundamental things that is key to customer retention. That's one provide good service. If you're in the service industry, it starts with providing good service and I think an outcome of that is your customer sees a valuable return on the investment for your service. Those are not unique to software but for any kind of service type business right, exactly, that's right. Let's talk a little bit about your. So you're the CEO. The company was founded by others than yourself. How did you come, I guess, to work at Funware and I know just a little bit that you've had this is like your second stint there but give us a little background on your connection to the company and how it was you became the CEO. Mike: Yeah, sure enough. So I've really made a career of pursuing technology trends. So I'm kind of an old guy so I've been in business for a long time. But I started off in offline marketing technologies, sending out snail mail and running telephone centers. Then I evolved into social marketing with a startup in Austin, texas. I then got into mobile and I've been in mobile really kind of on and off ever since. Mobile's a big deal because you've got a device that knows who you are and knows where you are, you tell it all your secrets. It really is an indispensable. It's become an indispensable tool. And so I've really made kind of a career over the last shoot 15 years at this point in mobile. And so I was originally with my first stint in mobile was with a little mobile application development boutique in Austin called Mutual Mobile. That was 2008, 9, 10, 11 timeframe Did something else and then I was recruited to come to Funware by somebody who had worked for me at Mutual Mobile and I said look, we're building out this platform company. We're very interested in having somebody who can really help to drive revenues. Would you be interested in joining? So that in 14, I joined Funware for the first time and I came to run the software business. So I was responsible for all revenues for the software business of Funware from 14 through 16 or so, got to know the company, got to really understand the technologies Actually, a number of the people who were there then are still with the company. Then I went off, worked at a Silicon Valley startup and did a couple of other things, couple of other things. And then, when the founding CEO left in 23, they hired a guy that I had worked with at Mutual Mobile back in the day as the new CEO and he said look, mike, I know that you're great at building businesses on the revenue side. Would you like to come and be my CRO, as I'm CEO of Funware? And he said I'll make it worth your while. So I said no a couple of times and then eventually I said yes. Well, this was September of last year that I rejoined the company and 30 days in the board said look, you know, what we really need is somebody with sales DNA at CEO. Let's try that again. Easy for me to say CEO role. So, mike, would you like to step in as CEO? So I actually I had a buddy who brought me back to be a CRO and then wound up taking this job. We're still friends, we still talk all the time and he was very supportive of that move. But a long story short, I think that the company for a time kind of lost its way in the simple fact of selling, servicing accounts and driving revenues, and that's something I've had the good fortune to develop pretty good skill at, and so now I'm the CEO and I'm going to tell you I think the E in CEO stands for extra. Everything about it is extra, but it really is the best job I've ever had and I'm really enjoying it. I still spend a lot of time working with customers, selling, identifying strategic partnerships and that kind of thing, because I enjoy it, I feel like I'm good at it and it's absolutely critical to positioning the company for growth and valuation, which is exactly my job. Chris: There you go, so let's talk a little bit about that. What are some of the things that you do to build and maintain relationships with those partners, customers, strategic relationships that you think someone listening might learn? Mike: from. Well, it's funny, there's been a real trend away from in-person, and so you and I are meeting today on Zoom. Our business, funware, is essentially 100% virtual at this point, and what I find is there's no substitute for hopping on a plane and going to see somebody, breaking bread with them, getting to know them as a person, understanding what it is they're trying to accomplish, what their hopes and dreams are, what their fears are. Once you get to that point and really just kind of understanding them as a person, and then exposing yourself as a person and say, look, you know, this is what I'm trying to accomplish, mr and Ms, partner or prospect, and really kind of, you know, engaging on a human level, which you know is a whole lot easier for sitting across the desk from somebody, and that's that to me, is is where I spend a lot of my time. I do invest a lot of time in in person, you know, spending time with customers, prospects, partners and the rest of it, and I really just don't think there's much of a substitute for that. Chris: Couldn't agree more. I think that's how, really, until the pandemic, it's how business got done in person. I don't think anything's changed here. I think, especially these days, I think it says so much more that you take the time to do that when you could otherwise, yeah, do a Teams or Zoom call or whatever, and just the human interaction I mean. As humans, I think we're meant to be together, right and interact, and I think that just fosters the relationship. So great advice there. Keeping on that kind of theme you've come back in not in an easy economic time, so let's talk a little bit about managing through kind of some economic uncertain, rising interest rates and all the stuff that's out there in the news. Let's talk about kind of what are some of the things you've done to stay focused and keep your people focused on driving the business forward? Mike: Sure enough. Well, there are some benefits and some drawbacks to being a public and trading company. Of course One is access to the capital markets. That's a benefit, and we certainly have the ability to draw capital out of the markets in ways that don't require us to be as susceptible to excuse me, the interest rate environment, but that doesn't mean that our customers aren't susceptible to that environment. And so we've had to do some things. Selling into hospitality and healthcare, I mean, we're typically selling into pretty big organizations and they have a little bit of a buffer, I suppose, from the ebbs and flows of the economy, particularly when you look at luxury hospitality. I mean, COVID aside, luxury hospitality has really been on a growth tear because of the generation of a lot of wealth on the part of a lot of people and they're wanting to spend it on high-quality experiences. But that doesn't mean that we don't have to be creative from time to time when it comes to pricing a deal or generating terms that are acceptable to the customer. They can digest, they can maybe capitalize the expense as opposed to turning into an OPEX expense and that kind of thing, and certainly we've had to be creative there. When I first took on the CEO role. The company was having a little bit of financial trouble and you could read in our public filings all about it. But, long story short, we were having problems with access to capital and I had to work with my CFO and others you know capital partners to really inject some capital into the company from the market in ways that allowed us, you know, the ability to move forward without paying a lot of interest, frankly. So we were able to kind of reshape the balance sheet in a way that puts us in a great spot for growth today Smaller companies I can only imagine what it must be like if you're dealing with debt financing, distinct from capital financing, and what some of the challenges there must be. We had to make some hard decisions in connection with the recapitalization of the company that had to do with people, in large part because that's our number one expense and those are hard things to do, and I spent many a sleepless night, you know, because I had to do some of those things. But the fact of the matter is that most companies don't cut fast enough and they don't cut deep enough because of those reasons, and it feels terrible, but preserving the company and giving ourselves the ability to go forward and thrive is really kind of the job for the shareholders. Chris: Yeah, and yeah, I agree. I think, regardless of the size of the company, making those people decisions are extremely difficult because, again, we went back to in person and it's human and these people have been with you typically and but it's what they say, right, it is when you have to make the hard cuts, you have to cut muscle and those can be challenging decisions. On the flip side of that, sure, as you come into the CEO role, you are either have or still in the process of building your team. What are some of the things that you do? Processes maybe you've created to help you identify the right people to surround yourself with to further the mission and strategies of the company. Mike: Well, there are two non-delegable duties that the CEO has, in my belief. Number one it's setting the strategy of the company. So we're going to be a SaaS company serving these markets, we're going to drive toward these margins, we're going to deliver in this way, and these are the things that are important for the strategy of the business. Number two is the culture of the business, and so I can't hire somebody to give me a culture. I've got to work with the company to create the culture that we want, and so I'll give you a little bit of a story there. So I have a lot of respect for the fellows who founded the company, a lot of respect for them, because they built something that I now have the good fortune to run and take to the next level. But there was a lot of. They were literally army guys, and there was a lot of army DNA in the company. Now that there's nothing wrong with that, there's nothing at all wrong with that, and the company was successful for a number of years, but and the culture that was built was one of command and control, because that's what the army is Right. Chris: Well, it's not. I'll just interrupt it. That's also not atypical of kind of startup mentality. Right, it's dominant kind of leadership. Got to get it done, got to get this off the ground. Mike: Yep, dominant leadership plus the military background equaled very much a command and control structure, a bit of a cult of personality around the founding CEO, and all of that, you know, paid great dividends. For a long time, I could not be any more different from the founding CEO. I'm not an army guy, you know. And so one of the first things I did when I took on the job is I said look, you know, you know if you're the vice president of sales or you're the vice president of, you know of product or delivery or deployments or whatever it is. You're the CEO of your own business and I'm not going to tell you what to do. I'm going to give you an objective and I'm going to give you the flexibility and the support to go and achieve that objective. You need people. You get people. You need investment. You get investment. But your accountability is to go and run your portion of the business as if you were the CEO. I'm not going to micromanage the decisions at all. I'm going to empower you to do the right thing number one for the customer, because then that ultimately becomes the right thing for the company over many observations and so that was a transition that some people are still working through. Frankly, in leadership roles within the company. It's sometimes people get comfortable being told what to do and we just we don't do that anymore. And you know a couple of people have left as a result of that. They did not have that comfort and that's okay because it's not the right job for them anymore. But most people have really embraced the opportunity of agency and empowerment and the ability to kind of run their own part of the business. ADVERT Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Chris: Yeah, I mean, there's a lot to unpack there, but clearly what you're talking about in my terms are giving people autonomy, but with accountability, which I think is the right way to go. However, organizations evolve over time, just like people. So I think we talk about command and control in the early days. That, for most companies, may make sense, but where this company is now and size and scale, you couldn't do that because there's too much going on and you have to then hire the right people, and the people that work for the company in the first few years may not work, you know, 10 years, 15 years later, because different skill sets needed, right, so it sounds like you've got your hands around that pretty well. Mike: Well, you know, it's always a work in progress, and so one of the one of the accelerants to adopting a new cultural tone is bringing in people, you know right. So I brought in a couple of guys and they are both guys, I'm afraid, who I had worked with a number of times in the past, who I knew kind of got the way that we wanted to run the railroad and who are are the kind of guys who just roll up their sleeves every day and make the most of the day. And, you know, those guys are not only in leadership roles within the company but they're also, you know, setting a tone for the others they work with most closely day to day, and I absolutely think it's working. Chris: That's great. So kind of sum that conversation up for us how would you define the culture of Funware today? Mike: I'd say that we're kind of a restart up, but with all the good elements of a startup, and what I mean by that is that we had a revenue profile that grew, grew and then it kind of dropped off. For some reason I wasn't here, and we're in the process of growing back up and we're getting in the right people who are interested in not only doing great work and serving the customers really well and building a terrific product, but also ones who are embracing the autonomy and the accountability that we're providing to them, and I couldn't be any more pleased with the reception that I'm getting. Chris: Anything special that you've kind of put in place to kind of help foster that type of culture so that you can perpetuate it and see it grow. Mike: Well, we tend to recognize the behaviors that we're looking for, and here's what I mean by that. So you know, somebody will just do a thing right and they'll do it. They'll achieve an accomplishment, whatever that accomplishment may be, and we'll talk. We've got a Slack channel. Slack is a tool we use all day long, every day, and we have a Slack channel called Momentum, and the Momentum channel is really about recognizing the contributions that a person makes, and the deal is that if you put something in Momentum, you've got to recognize somebody else. So you say, hey, a great thing happened, you got to recognize somebody else. So you say, hey, a great thing happened. And I want to thank Bob over here for his contribution to the thing, because Bob, you know, contributed in a way that if he hadn't done that, you know we might not have gotten the outcome that we're looking for. You know that that's something that you see traffic in every single day, that's great. Chris: We obviously I can relate to that we do something similar here at the firm Every single day. That's great, I can relate to that. We do something similar here at the firm, not necessarily on a specific channel, but it's kind of become part of our culture to. We call them core value kudos and it's about recognizing other people not yourself, obviously in efforts that they made and tying them to our mission and values, so that the behaviors and the values marry up right. And then people. It makes it tangible that I want to thank or, you know, congratulate someone for doing X, Y and Z which demonstrated this value in action. Mike: That's terrific. Yeah, I've been in companies that have done that. I think that's something that I may need to reincorporate into my bag of tricks there, for sure that have done that. I think that's something that I may need to reincorporate into my bag of tricks there for sure. Chris: So you know along those lines your software company. I always am interested to know what are you doing to kind of promote or foster creativity and innovation within the company? Mike: Well, some of the things that you know it's interesting, I'm going to I'll give you maybe a little bit longer answer you might be looking for, but there is, and it's really important to kind of separate the day-to-day from the long-term vision. And what I mean by that is that I'm, let's say, a developer and today I have to fix a bug, and I just have to fix the bug because the bug exists and it's in the way of something happening and it's not my favorite part of the job, I'm quite confident of that. Not my favorite part of the job, I'm quite confident of that. Not my favorite part of the job to fix a bug. But there is some long range stuff that I'm really excited about. A big part of what we do is indoor wayfinding and hyperlocal marketing offers, and there are lots and lots of innovations that we're looking at right now, and so we identify people who are interested in innovation. We put together both formal processes for them to say, okay, you're on the R&D team and you're going to be doing this work, but we also give them informal opportunities. Hey, look, I want you to go to Denver to our customer with Gaylord Rockies and I want you to actually go into the physical space that we're trying to map, and I want you to help me figure out a better way to do it. And so that's two things. It's number one, solving a strategic problem for the business, but it's also kind of getting them out of their, since we're all virtual, it's getting them out of their own office, sending them to Denver, take an extra day, engage the customer, do great work, but also enjoy yourself a little bit. So we try to give people an opportunity to get out of the context within which they're working sitting in my home office squashing bugs and get out into the real world where our solutions are deployed in ways that are not only sort of fun but also problem solving. Chris: So you've been in some leadership roles throughout your career, obviously CEO now. How would you describe your leadership style and how do you think it's evolved over the last few years? Mike: Well, I try to work with people. I try to work as best I can. You can't always do that right, but you can absolutely make the investment of time to get to know them, and so I walk into this job. I've got a CFO that I just met very recently, and I had a chief legal officer that I met just recently, and I had a chief operating officer that I had known actually for some time and one of those guys wound up leaving that I had known actually for some time and you know, one of those guys wound up leaving. But you know the other two guys that I had just met. I made it a real point of going to where they were, sitting down with them breaking bread, understanding who they are, what they were trying to accomplish, why they were at the company in the first place and all the rest of it, because it was important for me to understand whether I could trust and whether it was appropriate to invest in these guys. Right and absolutely it was. By the way, I had a couple of gaps in my leadership team and what I did was find people that I'd worked with in the past and I said, look, are you willing to come and work for me again, and the answer in every case was absolutely so, and that's not because I'm the greatest guy in the world or because I gave him a zillion dollars or anything like that. It's because we have, over the years, established a working cadence that's founded on this idea of trust and accountability, autonomy of action and really candor of discussion. There's nothing that the leadership team and I don't discuss in detail and with candor. We're not afraid to tell our truths to each other. We've created what I think is a safe space for us to really talk about what's on our mind and what concerns or challenges we have, or if somebody is all wet, you know, and and that kind of. That kind of culture. The executive table, I think, filters down to the rest of the business in ways that help support the culture we're trying to build. Chris: Yeah, and I was gonna say it sounds like it's a culture of safety to have the hard conversations, but that those conversations are done in a respectful way. Mike: Yeah. Chris: I don't know if there's no better way to do it Right, and it's okay to fail. Mike: And I got to tell you, I used to race, I used to race cars a long time ago and you know, if you don't crash, you're not driving fast enough and so it's okay. It's okay to crash every once in a while because that means you're pushing the envelope, You're trying to get, you know, you're trying to get to the edge of the performance envelope and that's positive. Chris: Yeah, no, let's talk about that, cause I I there. There's always learning, and so I think there's. You know, when you have setbacks or failures, you can learn from them and it can make you better. Don't let it define you. So can you give us an example of more than not the car racing, because crashing is easy to understand as a failure, but in the business world, as a leader something that you felt a failure of yours, a bad decision, a setback that you absolutely grew from, and it's made you better today. Mike: Yeah, sure enough, I think that my greatest learnings are not being decisive enough and not acting quickly enough. And so you know, let's say, for example, I'll give you the example of last company I worked for before. Well, yes, I'll give you that example. So I was working at an AI video startup in Madison, Wisconsin. It was essentially a unit of a publicly traded company that I won't name, but your viewers can certainly look it up. And, long story short, that company is now bankrupt and I don't fault any of the. I don't fault the CEO of that company, which was not me, by the way, in that, but I fault myself. Yeah, exactly, it wasn't me. I didn't bankrupt the company. This was a guy I had worked with before were pretty small, and so what I said was I need this much to make this happen. I was given about half that much and I didn't adequately reset the expectations on how long it was going to take to get that thing done, slash. I should have had probably more pointed discussion about is this worth doing at all, and I didn't do that. And the long story short is that company is now bankrupt for lots of reasons, but the thing that I that my not being as aggressive as I felt like I should have been was a contributor to that. I think it was a small contributor, but you know all that to say that it didn't help. Chris: And so I kind of trace it. I would say the learning for you is kind of having the hard conversations faster right and that's the kind of culture that's terrifically important for me. Mike: So that informs the culture I'm building at Funware, which is like, if this ain't going to work, I just need you to tell me, and I might disagree and I might argue with you, but I will absolutely hear you. I might argue with you, but I will absolutely hear you. It's going to be super important for us to just trust each other enough to be able to have the discussion about you know, without fear. I guess is where I'm coming from. Chris: I understand that, so let's talk a little bit about you know these are important jobs that you've held over the last few years, and as is the current one. I don't like using the term work-life balance, but how do you? Manage work and personal life to try to keep them both going in a positive direction. Mike: Well, I spend a lot of time with my kids. I really, yeah, my daughter. So I'm here in Ohio, I'm spending time with my father and mother, but my daughter came along, my older daughter came along, she's out of school already. I'm going to go next week pick up my younger daughter in boarding school in Colorado, drive her down to Big Bend, where she has never been, and then, you know, spend time with her over the summer. So I mean, it's really about being deliberate about that and working from anywhere, candidly, in my opinion, helps. There's no expectation. I'm going to the office, I'm going to be there during the business day on Monday through Friday, and what I kind of joke is that I mean, I work a lot, no question about it, but I work around my life as opposed to work, as opposed to planning my life around my work, to planning my life around my work. So I might work, you know, 60 hours a week, but that's not going to be five times 12. That's going to be, you know, kind of eight-ish times seven. I'll work every day a little bit, but I'm certainly going to put my kids first and that's just the way it is. Chris: Well, I can identify with that. I think everyone has to find their own way and each job and role requires different things. In different stages of life require different things. So I think that's what people you know should stay focused on, individually as well as the companies to try to make sure you have good people. You don't want to lose them for those types of reasons. People you don't want to lose them for those types of reasons. Yeah, so, mike, this has been a great conversation. Before we wrap up, I just want to kind of get a little bit more less or a little less serious about things. Tell us what was your first job as a kid? Mike: It'd be funny, you should ask. So I'm back in rural Ohio where I grew up. Right now, at my parents' house, as I mentioned earlier, my first job was was am I allowed to say shit on your podcast? Of course, the texas my first, my first job was shoveling hog shit. Chris: Shoveling hog shit for minimum wage and I was nothing that wants to make you go to college and get a degree than that right. Mike: well, the funny thing is that I wound up raising hogs to pay for college. So it was fine to shovel the hog shit, but I was like, if I was fine to shovel the hog shit, but I was like, if I'm going to shovel the hog shit, I'm going to do it for more than $3.35 an hour. I'm going to do it in exchange for a college education. So that's not exactly that way, but that's a big part of how I kind of got off the farm and moving ahead. Chris: I love that, okay, well, yeah, obviously, as we now know, you're from Ohio, but you spent enough time in Texas for me to ask you this question Do you prefer Tex-Mex or barbecue? Mike: I love Tex-Mex. I would eat Tex-Mex every day of the week All right. And sometimes I do. I do love barbecue, but the thing is that the best barbecue is something I don't want to wait in line for and I don't want to drive a long ways. If I happen to be by La Barbecue or Franklin's a little bit over their great barbecue a little bit overhyped, or if I want a great barbecue, I'll just treat it as a destination thing. I'll go down to Lockhart or something like that, but I can get absolutely terrific Tex-Mex around the corner from my house every day of the week. Chris: Yes, it was one good thing. You know, I think we living in Texas both are abundant right. Mike: But you're right. Chris: The marquee barbecue, you know, is tucked away in some places. All right, so my last thing is if you could do a 30 day sabbatical, where would you go? What would you do? Mike: Well, I got a bunch of customers who have really beautiful beach resorts so I might go to one of those. Chris: You might go break bread with them there. Mike: Break bread with the customers at the most beautiful resorts in the world. That would be one thing I might do. There are a lot of places around the world that I'd love to see, so I've got a Google Maps layer that has little flags. There are probably 800 flags on that map and I add some every week. Places that I like to go around the world. Sometimes they're restaurants that I read about. Sometimes they're beautiful. You know natural features, like you know mountain ranges, the Painted Mountains in the Andes, or you know beautiful lake I've never been to Crater Lake, things like that so what I'd probably do is find 30 days worth of those pins in an area that I can consume within that 30-day period and I'd just go knock it out. Chris: I love that. I like the concept of keeping track of the pins. Yep. Mike: And there's too many on the map that you know I'll be dead and gone before I get to see all of them. But you know, it is kind of a it's a memory bank for things that have caught my interest and that I do want to experience at some point, if I can pull it off. Chris: Love it. Love it Well, mike, thanks so much for taking the time to be a guest on the show. Really enjoyed hearing your story, and the things y'all are doing at Funware sound really fun, exciting and innovative. Mike: Thanks a lot. Special Guest: Mike Snavely.

What Happened In Alabama?
EP 5: Meet the Pughs

What Happened In Alabama?

Play Episode Listen Later Jun 5, 2024 44:07


When Lee got the results back from his DNA test, he was stunned to discover that he had pages and pages of white cousins. All his life he'd been under the impression that 95% of his DNA traced to West Africa. This discovery opened up a new historical pathway, one that traces all the way back to 17th century Wales. In this episode, Lee takes us on the journey to discover his white ancestry. Later, Lee sits down with two newly-found white cousins to understand how differently history shaped the Black and White sides of one family. TranscriptLee Hawkins (host): We wanted to give a heads up that this episode includes talk of abuse and acts of violence. You can find resources on our website whathappenedinalabama.org. Listener discretion is advised.My name is Lee Hawkins, and this is What Happened In Alabama.[intro music starts]Back in 2015, I took a DNA test and found out some pretty shocking information. I always thought that I was 95% West African but it turned out that nearly 20% of my DNA was European. This revelation raised so many questions for me and led to years of research that would change my understanding of my own upbringing forever. Today I'll share that with you. We're going to go all the way back to 17th century Wales to uncover the path my ancestors took from Europe to the American South and how that, through slavery, led to me.I'll talk with experts and newly discovered white cousins to explore the history that connects the two sides. I want to find out how my family's experiences on the opposite ends of slavery and Jim Crow shaped our beliefs and our understanding of American history. But you'll get a whole lot more out of it if you go back and listen to the prologue first – that'll give you some context for putting the whole series in perspective. Do that, and then join us back here. Thanks so much. In many ways, the seeds for this project were planted in 1991, during the first trip I remember taking to Alabama.[cassette tape turning over, music starts] Tiffany: He would play an album on repeat. That's my sister, Tiffany. I call her Tiff. It's 1991, she's sitting in the backseat of our family's car, driving from Minnesota to Alabama. Tiffany: Dad used to like still stay up to date on, you know, pop culture, current music. There were certain songs that he would be like, “Oh, I like that,” you know, like Tony! Toni! Toné! It Feels Good. And things like that.My dad hated flying. He'd seen too much in his life, and he related flying to so many of the musicians he loved: Otis Redding, Stevie Ray Vaughn, Buddy Holly. They were all his contemporaries, and they all died in air crashes. So instead, we drove.I was 19 years old, and I was attending college at the University of Wisconsin Madison. At that time, I had just really gotten into the school newspaper. I was thinking about becoming a journalist or maybe a lawyer, but at that point, writing was more intriguing to me. I was excited about this family trip to Alabama, and I had no idea what was coming.Tiffany: Yeah, so Alabama, it's been kinda a, a mystery for me throughout my life because I wasn't able to ask questions that anyone would ask when you're wanting to know things about your parent.One of the big reasons my dad wanted to go to Alabama was to interview my great-Uncle Ike. He was the eldest patriarch of the family in Alabama, and he owned a farm near Greenville, dad's boyhood town. But most importantly, because he was in his 90s, he knew a lot about family history. And Dad had a lot of questions. I remember getting to Uncle Ike's and sitting in the living room, and across from me sat a caramel-skinned, white-haired man. For me, his reflection was like looking into a mirror and adding 70 years.Uncle Ike was in his early 90s, but those high cheekbones and blemish-free skin made it harder for me to believe that he was a day past 75. It was also hard to believe we were actually in Alabama, with Dad finally standing before his legendary, long-lost uncle, with a tape recorder in his hand. It was a trip we'd been talking about for months. Dad wanted to learn as much as possible about the Alabama family he left behind. Lee Sr.: Well, it's definitely, it's been a blessing to get to see you. As interested as I was in journalism, I was far from having the experience and interview skills to feel confident taking the lead. Plus, I knew that Dad needed this, so I deferred to him. The fact that he grew up there meant his questions would be far better than anything I could just randomly think of. But hearing his questions and how basic they were showed me just how far he'd strayed from his Alabama roots. Lee Sr.: Let me see, um, you were telling me about my father Lum. Now, how many brothers and sisters did he have? Most of the conversation was going over family tree details. Simple things like, how many siblings did my father have? And what were their names? We sat in that living room and asked Uncle Ike questions for just over an hour.Uncle Ike: I understand that all of them were named [unclear].Lee Sr.: Oh, we had a aunt, uh –Uncle Ike: Colby…When Uncle Ike answered, I struggled to catch every word of his southern accent. It was so thick, I thought it might even be a regional dialect, one that was unique to what my dad always humorously called, “LA,” Lower Alabama. I marveled at how quickly Uncle Ike started reciting family members. Even at his age, his recall, it was as swift as a rooster's crow at dawn! Lee Sr.: Oh yeah, Aunt Jem. I remember her…As we talked, my eyes began to drift to the fireplace, which was decorated with family photos. There, I saw a framed, weathered photo of a white man looking like he'd been plucked from a vintage Field and Stream ad. He appeared part outlaw, part GQ model. He was in hunting attire. There were hounds at his heels, and it looked like he was gripping a musket. Why, I thought, would Uncle Ike have a picture of some random white man hanging over his fireplace? Lee Sr.: Now this, what's this guy's name? Is this George Pugh up here on this picture? Uncle Ike: No, that's Isaac Pugh. Lee Sr.: That's your father? Uncle Ike: Yeah. They called him Ike, but his real name was Isaac. That made him my great-grandfather, Isaac Pugh Senior. I looked closer at the photo, into his eyes. His gaze was a determined one, as if he was daring me to look into the records and find out more. Who was this white man?[music starts]That day was more than 30 years ago. Since then, I've learned so much more about our family history. Seeing that picture of Isaac Pugh Senior on the mantel opened up an entirely new branch of my family tree – a white branch – that I had no idea existed. Digging through the records and existing research, I was able to trace that line all the way back to 17th century Wales.I recognized that I couldn't fully understand my family's experiences in America without uncovering the history of our white blood relatives on the other side of enslavement and Jim Crow. I had so many questions. Why did they come to America? What did they do when they got here? And most importantly, how were they connected to me? [sounds of a boat on water, sea gulls]In 1695, a man named Lewis Pugh boarded a boat near his hometown in Northwest Wales to sail for what was then called, “The New World.” The journey was long and grueling. Many people didn't survive. But the ones that did held on by a combination of luck and faith. Faith that the land that they were headed towards would help them prosper. He landed in Virginia, likely as an indentured servant. Several years later, he met and married a woman named Anne. The couple purchased land in Richmond County. They built a home, had seven kids, and many more grandchildren. Two of their great-grandchildren, the brothers Jesse and Lewis Pugh, decided to move south to Alabama at the start of the 19th century. The first thing they had to do was to get land. And to achieve that, they had to overcome one major obstacle. Chris: Well, it's important to remember that whites wanted Indian land from the moment they first stepped into the Americas. And so Indians have been removed since 1492, of course. This is Chris Haveman.Chris: Let me just talk briefly about terminology and the use of the word “Indian.” I've interviewed dozens and dozens of Native people throughout my career, and prior to talking to them, I always asked how they would prefer to be identified, and almost universally they say “Indian” or “American Indian.” Now, these folks tended to be a bit older, and as the younger generations come of age, the term seems to be falling out of favor, and when it does, historians including myself will adapt and adjust accordingly.He's an author of two books on the removal of Indigenous peoples from Alabama and Georgia to present-day Oklahoma, and a professor at the University of West Alabama.I've come to Professor Haveman to help me get a lay of the land in 19th century Alabama, when Jesse and Lewis Pugh arrived in the state around 1810.When the brothers got to Alabama, they were in Muscogee territory. The Muscogee were a loose union of multiple Indigenous groups, and they had millions of acres. Tribal leaders also use the name “Muscogee Nation.”Chris: Really, the story begins after the War of 1812, when whites decided that they really wanted that, that nice, nutrient rich soil in central Alabama. Over the years, throughout the 17 and early 1800s, this land was whittled away through treaties.The federal government started sending commissioners down to remove the Muscogee – and to do this, they had to coerce them into signing treaties first. This was done all over the American South and the rest of the country – and by the time the removal really got going, the Muscogee nation had already lost a large part of their land. But they were resisting. Chris: Commissioners were sent out, and Indians did not want to give up their land. And so a lot of times they resorted to threats, they resorted to some other shady tactics. And you had whites streaming into the Creek Land and they would, you know, just establish their farmstead illegally in the Creek Nation. Sometimes it would just overrun a Creek homestead and kick the family out and commandeer their crops for their, as their own. A lot of times they would get Creeks hooked on alcohol and uh, sell them merchandise on credit, get them indebted to them, and then they'd force them to give up their property as collateral. And things get really, really bad. Lee: What was the philosophy that was used to justify that? Chris: Conquest. The whites wanted it, and they were gonna take it regardless. There was no real justification, moral justification for it other than whites had the racist premise that they were civilized and the Indians were “savages” and that the whites could make better use of the land than Indians.Jesse and Lewis Pugh became landowners, both running plantations. They founded a church in Troy, Alabama, called Beulah Primitive Baptist Church. It still stands today. In my research, I found an article honoring the church. The paper hailed the brothers as “those daring ones, who braving the perils of the wilderness, came here and reclaimed this fair land from the planted savage.” The “planted savage,” I now know, refers to the Indigenous people who lived on the lands across the American South and beyond.Professor Haveman told me that on top of forced removal, there was a great deal of Muscogee land ceded by the tribe, but the conditions of these transactions make it hard to say how voluntary these handovers actually were. Chris: In 1832, the federal government gives a proposition to the Creek Indians, and they say, ‘Look, if you cede the rest of your land to us, we will allow each head of family to take 320-acre plots of land.' And this is where everything really goes downhill for the Creek Indians, because they gave up their sovereignty, uh, in exchange for a title or a deed. But what it does is basically, and I think you have to ask, it was so one-sided in favor of the federal government. You have to ask yourself, ‘Why would the Creek Indians agree to this?' And I think that they agreed to this because whites had illegally trespassed on their land so much between 1827 and 1832 that they realized that you know, whites usually liked a deed or a, you know, a title to their land, a piece of paper, something you could say, “This is my land.” And I think the Creeks tried to adopt that in order to stave off this encroachment that whites were giving on their land.So they, they had this deed and this title, and they thought that that would prevent whites from streaming onto their land, but it didn't. It actually, it just opened up massive amounts of fraud for them. And so you had 5 million acres of land in the Creek Nation in 1832. When this was ceded, all 5 million acres of land went to the federal government, and then parcels of 320 acres were then given to each Creek family. If you add up the over 6,000 families times 320 acres, it only comes out to like 2.1 million acres. And so almost 3 million acres of land will now be opened up for white settlement. And so the thing that they were trying to prevent – whites from encroaching on their land – is now gonna become legal.[music]On a January evening in 1837, Lewis Pugh was in his plantation fields in Alabama with his overseer. By this point, he owned land and enslaved people. That night, a man quietly snuck onto the roof of a house that overlooked the Pugh family cemetery on the plantation. The man fired a rifle from the top of the house, killing the overseer. Immediately afterwards, a swarm of 60 Muscogee swooped down on the plantation field. They killed Lewis, one of his sons, and an enslaved baby, who was in his mother's arms. Four enslaved men tried to defend themselves, the women, and the plantation. The Muscogee killed them too. The story captured the country. Lee: It was in every major newspaper across the country, uh, that Lewis Pugh, a prominent white settler, had been killed, um, and murdered by the Creek Indians. Why do you think it was so important that it be framed in that way? Chris: It made national news because the thing whites feared the most was an Indian uprising. And it's one of the reasons that whites who, um, had no means to become large-scale cotton planters still wanted the Indians gone because they were constantly terrified that Indians would rise up and attack them. Uh, and they had, you know, somewhat of a legitimate reason to be scared because whites treated the Indians so terribly and stole their land and, you know, created all these problems for them.It's clear that the Muscogee didn't just fold and concede their land. They retaliated, determined to defend it. And I can't help but think about it from the perspective of those enslaved people who died, fighting alongside their enslaver, to protect his life and his land – that's how closely their lives were intertwined. I'm still very curious about them, because they, too, might've been my relatives. Not long after I took that DNA test and first found out about the Pughs, I found a last will and testament belonging to Jesse Pugh, the brother of Lewis Pugh, the man who was murdered by the Muscogee in Alabama. In the will, it stated that Jesse enslaved a young girl named Charity, who was kept in bondage by the family into her adult years. Not long before Emancipation, she gave birth to a biracial son who she named Isaac Pugh. That was the white-looking man whose photo I saw on the mantel at great-Uncle Ike's house. Isaac Pugh, my great-grandfather. Doing my DNA test couldn't have been any simpler. I went online and ordered the $100 test, and the next day, I got a small box in the mail. Inside, I found a vial, and returned my saliva sample the following day. In just a few weeks, I got an email with my DNA results. It shows you who your cousins are, from first, all the way to distant. I had pages and pages of cousins, including many who were very, very white. I'm talking blond with blue eyes. There were a lot of Pughs in there. I was stunned by the sheer volume. One genealogist told me he had never seen anybody with so many pages of cousins who had also taken DNA tests. At that point, I had more than 216 fourth cousins or closer. One of the descendants was a man in his late 80s named Lloyd Pugh. We both descend from Ann and Lewis Pugh, but our relation wasn't close enough to show up on my DNA chart.Lloyd lives in Petersburg, Virginia, and last year I went to his house to meet him with my producer, Kyana. You'll sometimes hear her in the background throughout the interview.Lee: It's a nice, quaint neighborhood with a lot of brick homes in a colonial-style design typical of Virginia, I think. I met Lloyd through a man named Jim Pugh, another newly discovered cousin, but coincidentally, I've known Jim for 30 years through my early work as a journalist, back in Wisconsin. He was a PR guy for the state chamber of commerce. Every month, I called him for a comment on the employment rates. I wouldn't say we were friends back then, but we definitely liked each other. And then, through an odd twist of fate, I found out that we were related. Jim: When you reached out to me and say, “I think we're cousins,” I was like, “What?!” Let's do a call.I'd always noted that he had the same last name as my Grandma Opie, but it was only through an exchange on Facebook after I'd taken the DNA test, that Jim and I compared notes and figured out that we were both tied to the Pughs of Wales. Once Jim and I reconnected, he told me he had an elder cousin who was a family historian of sorts. That person was Lloyd Pugh.Lee: Oh, he has, okay, an American flag on his house and one on his car. [laughs] And here we are. [seat belts unbuckling] Let's go get started. Lloyd has worked on this long before genealogy exploded in the mainstream. His research is in the archives of the Library of Virginia. He has binders full of information he's gathered over the years on the Pughs. Lloyd: That book right there is one that's on the early, early Pughs. Lloyd is 88 years old. He's a tall, lean, active guy, full of warmth and southern charm. He was born and raised in Petersburg, a city known for being the site of a nine-month siege back beginning in 1864 that ended up costing the Confederacy the Civil War. Lloyd is absolutely fascinated with the Civil War, especially the Confederate side. He has tons of relics in his home, everything from swords and rifles to cannons, decommissioned bomb heads, and bullets. He also has a huge painting of General Robert E. Lee, hanging right above his couch. Lee: Why do you have a picture of General Lee in your front room? Lloyd: Because it's a part of my heritage. It has nothing to do with being anti-Black or slavery. It's just part of my heritage in that I had three grandfathers that served under Lee. [music starts]Lloyd and I couldn't be more polar opposite in our views about the Confederacy. But I didn't go to Virginia to condemn or to convert him. I went to his house to talk to him about history, our shared history. And he was interested in talking about it too. So he and his daughters invited Jim and I over, and we had a conversation that helped me understand how the white Pughs would come to shape the Black side of my family for generations. [music]Lee: Well, thank you everybody. Um, the man of the hour is Lloyd. Because Lloyd has done a tremendous amount of work around the Pugh family history. And really, I want to thank you, Lloyd, for opening up your home and showing us this museum of incredible Civil War history that you have, and also helping me gain a better understanding of my own history.Um, it's, uh, it's bittersweet to understand how we're connected, but it's also, the power of it is that I wouldn't know this history if we hadn't worked together to understand it and to identify it, and part of my goal in doing this work is to inspire other people across racial lines to do this work. Um, and it is hard, but we both love it, right? Lloyd: Right. Lee: Okay, so, uh, you've done a tremendous amount of work on the Civil War, and we'll get into that, but you've also done a lot around the Pugh family, and I think it's important to talk first about how the Pugh family got to America.Lloyd: There were actually three migrations. One migration of Pughs went to Norfolk, and from Norfolk, they went down through North Carolina, South Carolina, on into Alabama, and in that direction. Lee: That's my line. Lloyd: That's his line. Our line of Pughs landed at, uh, Richmond County, which is the upper neck over on the, uh, near the, on the east, west side of the Chesapeake Bay, and they migrated on down through, uh, came this way, Chesterfield, on to Amelia County, and eventually they end up on the, uh, east side of the Appalachian Mountains.And the third group came in, in New York, and they migrated down the west side of the Appalachian Mountains into Tennessee and Kentucky on down in that direction. So there are three distinct lines of Pughs, and I was happened to be the one that migrated down through the Chesapeake Bay into Richmond County.Lee: What did the Pughs do here initially? Lloyd: Farmers. Tobacco was king in Virginia. They raised other crops. They had to raise, uh, food crops, but the money crop was tobacco. Tobacco was critical to the expansion of the slavery economy in America, so it doesn't surprise me that the White Pughs were involved in the tobacco trade. But through talking to Lloyd, I learned more about their interactions with Black people, specifically through a man named John Boyd Pugh. He's Lloyd's great-grandfather, and he fought on the Confederate side of the war. In fact, he was so committed to the Confederacy and the slavery it represented, he refused for months – after being captured and imprisoned near the end of the war – to take the oath of allegiance to the United States. It blew me away to learn how deeply committed people I share heritage with were to white supremacy – John Boyd Pugh and others believed devoutly in it. They practiced it, and were willing to die for it. And after the war, he became an overseer for a prominent family named the Baylors.Lloyd: And the Baylor family, signers of the Declaration of Independence, founders of Baylor University, some kind of way found out about my grandfather, John Boyd Pugh, and they offered him the oversee of New Market Plantation, which is in Milford, Virginia.His salary was one fourth of all the crops, plus $50 a month salary. And so he took the job, and he moved from Albemarle County with his family up to Milford to New Market Plantation. And he was the overseer of that plantation, right there at Bowling Green, Virginia. When I heard that, my mind went back to all the books I've read in my research, including The Half Has Never Been Told, by Edward Baptist, which clearly outlined the role of overseers as the drivers of productivity on plantations, many using whipping and other torture techniques to get the most out of enslaved Black people. Baptist explained that on many plantations, overseers held the enslaved to strict quotas. They'd weigh the crops and assess the work at the end of the day, and if the quota wasn't met, the person would be whipped in front of all the other enslaved people, to make an example out of them.Hearing that I not only share heritage with enslavers, but also overseers, I was absolutely stunned. I began to see how far back the whip could be traced in my family.Lloyd stipulated that because John Boyd Pugh did his overseer work after Emancipation, he believes he probably wasn't involved in whipping. Lloyd: When John Boyd went to Newmarket, this was after the Civil War. So they had to have hired labor. And I think, I doubt that there were the whippings and the lashing and so forth when you have hired workers because they could say, “I'm leaving,” and just walk off the farm, so, yeah. To be fair, it's possible that Lloyd is right – maybe John Boyd Pugh was one of the few exceptions; an overseer who never resorted to violence. But I doubt it, and here's why: in my research, I found the archive to be packed with proof that whipping continued to be a foundational aspect of overseer duties for decades after Emancipation into Jim Crow.Lee: This is the hard part, you know, for me, because, you know, I think when I first talked with you, Jim, you were telling me that your great – great-great- grandfather was an overseer. And I didn't know – or you didn't know – what an overseer was, and when I looked at, you know, a lot of these movies that you see, the overseers are the guys that drove the production of the, of the plantation. Um, and that, for me, is just, that's inextricably tied with the capitalistic, sort of, reality of building America and how so much of the productivity was driven at the plantation level. How did you feel when I explained, especially the part that whipping was a big part of overseer work? How did you feel about that?Jim: Well, you know, you don't really know what you don't know until you find out. And that's when you learn about it, you know, 'cause you don't, you think of, um, overseeing, uh, like a agricultural operation today, you wouldn't have that 'cause you have machines, you know? So, um, but yeah, that was pretty, pretty shocking to find out about that, but it's also the reality of what, the way the world was at that time, you know. [music starts]My mind went back to that interview with my Uncle Ike in 1991, when he told us about Grandma Charity. He told us that when he was a kid working on his father, Isaac Pugh Senior's farm, she would beat the kids if she felt they weren't being productive enough. This, from a woman who was enslaved by Jesse Pugh, a cousin of John Boyd Pugh. It's almost as if, once she became emancipated and the family got its own farm, she became the overseer, and her grandchildren, the free labor. Lee: I've been always fascinated by the way, when we built our country, just how deeply rooted it was, not just in slavery, but also in the establishment of the land, how people got their land, you know, um, particularly from, from the Indigenous people.And I think that the problem, just in my opinion, is that everything is so controversial that people have decided they don't even want to even begin to study this work. And there, of course, are many, many academics who write powerfully beautiful detailed accounts of all of this history. Um, Doug Blackmon, Slavery by Another Name, um, Edward Baptist, The Half Has Never Been Told.And in a lot of this stuff, they give really detailed accounts of the economy of slavery and also the Civil War, and the way all of the different range of realities that were at stake as our country was starting to form itself into what we now know today. Um, when you study the Civil War and the Confederate side of it, what, how do you relate to that history in terms of your un– do you know anything about John Boyd Pugh or was the, the oral history lost?Lloyd: I knew absolutely nothing. No one in the family shared anything, ever shared anything with me. And what was learned, learned through my research. Clearly, family secrets are preserved on the white sides of the family, too. Dark secrets like the violent role of overseers, the fact that land was stolen, and the identity of white men who fathered Black children, were not often openly discussed. And those lies of omission make it harder for future generations of whites to acknowledge the causes of generational disparities and trauma – through ignorance or cognitive dissonance. But this work – especially the DNA testing – exposes the lies, and people doing it have to prepare themselves for unsettling discoveries. This work isn't about agreeing on everything. It's about opening up the family bibles and records to access information that neither side would have without the other. So it requires a rare form of tolerance, and a spirit of unity as opposed to division on the issue of genealogy. The truth is that I feel like I was blessed. I was fortunate to stumble on a white guy who I'd known for 30 years, and we discovered we were cousins. We already had trust between us, and he opened up the door for me to meet Lloyd. And the timing was perfect. Lee: I think for me, and especially the fact that, that you're basically a Republican dude [laughs] who, uh, you know, really like, and deeply rooted in the Republican party, um, and, and that you're a Republican dude who took me through to make this introduction so I could meet Lloyd so that we could study this together, to me, defies all of the conventional wisdom, which is that we're all divided and we're all, um, to be, you know, enemies on the other side of the issue.Jim: Well, Lee messaged me. I had posted about the, the trip where we did, we followed Lee's retreat back to Battle of White Oak Road. I think that was our last stop, and then we came home. And Lee, he said, ‘I, I see your, I think we're related.' And I said, I messaged him back and, and I'm thinking, ‘I don't want to put a bunch of this stuff in writing,' right? 'Cause I'm being like, it's not, this is sensitive stuff. I mean, we're dealing with race, and this is a war –Lee: You knew the political, the political – Jim: Yeah, I'm working in operatives, and he was working for the Wall Street Journal! And I'm thinking, ‘This is gonna be, this is not, this is gonna end bad,' right? So I, I said, “Lee…” He's like, “I think we're related.” He goes, ‘I've been doing family research. There's Willoughby and Spotsworth –.' And I said, ‘Oh, whoa, whoa, whoa, whoa. That sounds about right.' He said, ‘Can we do a call?' 'Cause I'm thinking, I want to, I want to turn off the typewriter. There's nothing good that's gonna come [Lee laughs] from this if it's typed forever and ever.And we did a call, and he's like, ‘Yeah.' And I said, ‘Well, how do you know?' He said, ‘I did 23andMe. And my DNA goes back to Wales,' and I said, ‘Well, you know, welcome to the family.' [laughter]Lee: And then I said, ‘I want my reparation.' Jim: Yeah.[laughter]And as the conversation continued, we drilled down deeper into the undeniable proof of our ancestors being enslavers, and Lloyd plainly stated the facts: Lloyd: Okay, let me, let me confirm that. I'm looking at the will of John Pugh in December 1827. His will, one negro hired by the name of Harry, worth $300. One woman, Judy, worth $200. One young man named Abram, $400. This is actually in the will, so that goes directly in our line, so there's, I mean, that's the proof of our line owning slaves.Lee: Do you feel guilty about it? Lloyd: No. Lee: Tell me what you think about it.Lloyd: It was a, it was a time. It's just like the Confederate statues in Richmond. It was history in a time, and you can't destroy it. Even though they've taken them down, they're still there in the minds of people, and they are people who are gonna keep them alive.Jim: But we're not white supremacists. Lloyd: No. Jim: We're not white supremacists, and that's the thing people need to understand. It's so easy to just shortcut from, ‘You're a conservative Republican or you're a libertarian or whatever' to, ‘You're a white supremacist,' and that's just not the case. I don't hold white people of today responsible for slavery and the actions of their ancestors. We're not responsible for the sins of our forefathers. But we should take responsibility for the present and the future by being transparent and honest about history. I know I joked with Jim about reparations, but that discussion isn't just between the white and Black families tied to slavery; it's between Black American descendants of slavery and the U.S. government, which includes states that enforced racist laws. Contrary to what many assume or imply, reparations wouldn't be about individual white citizens personally compensating Black people; it would be government obligation, funded by taxpayers like any other public expense – infrastructure, education, or foreign aid. Taxpayers don't get to opt out of funding highways they don't use, just as those from families who didn't own slaves can't opt out either. Slavery fueled America's economic rise – on the backs of Black people, largely on stolen land – a legacy from which today's Americans still benefit, no matter when they came here. [music starts]All in all, I spent two days with Lloyd, his daughters, and Jim. We had dinner and we talked a lot. He told me more about his life, like how he spent most of his career as an educator and superintendent, even helping oversee the desegregation of schools. I realized our families share many common values despite all our differences.Lee: When you hold all these documents and all the binders you've made, thinking of all the Pugh history, what do you feel?Lloyd: First of all, I feel thankful that I'm the result of all of that, that I'm able to carry on the family line. I just look at the Pugh family across the years as just good, sound, solid business people who did what they were supposed to do, and stayed out of jail, and paid their taxes, and didn't beat their families, and just good old southern Christian families is the way I look at it. The information I received from Lloyd deepened my understanding of why so many slavery-era customs appeared in my childhood. It helped me with my quest to begin to trace the whip back to the very plantation where it started. For me, that's part of where the healing comes from – not from any kind of validation I'd seek from Lloyd and Jim, but from the information that's allowed me to draw my own conclusions and undertake my own healing work. The Pugh family history is intertwined with America's story, from the Revolutionary War through the Civil War and into the Jim Crow era. Lloyd and I come from the same family, but our experiences reflect opposite sides of the American history it's rooted in. Meeting Lloyd helped me piece together our family history. It also triggered a need in me to uncover the story of how the white Pughs in America treated the most disenfranchised and exploited person in this saga, my great-great-grandmother, Charity, the matriarch of my family.That's on the next What Happened In Alabama.[outro music]CREDITSWhat Happened In Alabama is a production of American Public Media. It's written, produced and hosted by me, Lee Hawkins.Our executive producer is Erica Kraus. Our senior producer is Kyana Moghadam.Our story editor is Martina Abrahams Ilunga. Our lead writer is Jessica Kariisa.Our producers are Marcel Malekebu and Jessica Kariisa. This episode was sound designed and mixed by Marcel Malekebu. Our technical director is Derek Ramirez. Our soundtrack was composed by Ronen Lando. Our fact checker is Erika Janik.And Nick Ryan is our director of operations.Special thanks to the O'Brien Fellowship for Public Service Journalism at Marquette University; Dave Umhoefer, John Leuzzi, Andrew Amouzou and Ziyang Fu. And also thanks to our producer in Alabama, Cody Short. The executives in charge at APM are Joanne Griffith and Chandra Kavati.You can follow us on our website, whathappenedinalabama.org or on Instagram at APM Studios.Thank you for listening.

Building Texas Business
Ep073: The Heart of Leadership with Amanda Hanks Bayles

Building Texas Business

Play Episode Listen Later May 29, 2024 33:55


In this episode of Building Texas Business, I sit down with Amanda Hanks Bayles, the 100th president of the Junior League of Houston. Amanda shares her remarkable journey within this organization, which is dedicated to empowering women and bettering local communities. She reflects on 11 years of involvement, emphasizing the value of mentorship and smooth leadership transitions. Amanda provides keen insight into balancing leadership roles as a volunteer and professional. She discusses integrating volunteer experiences into her career at Plains All-American Pipeline and the support of employers. Wrapping up, Amanda offers practical advice on embracing change and maintaining balance. Through this insightful conversation, examples from her path illuminate strategies for cultivating leadership abilities with heart wherever one's journey may lead. SHOW HIGHLIGHTS Amanda Hanks Bayles, as the 100th president of the Junior League of Houston, emphasizes the organization's commitment to promoting voluntarism and developing the leadership skills of women. We explore the structure of the Junior League of Houston, highlighting the executive committee and board of directors, as well as the 4,500 total members, including 1,400 active volunteers. Amanda discusses her 11-year journey within the Junior League, focusing on the importance of saying yes to opportunities and the value of annual leadership transitions for continuous personal development. We touch on the challenges of balancing leadership roles in volunteer organizations with professional careers, and the supportive role played by employers like Plains All-American. Amanda shares insights into leadership development, particularly the importance of owning mistakes and learning to communicate effectively within a large organization. The conversation includes how the Junior League's Leadership Institute Training Program and the Outside Board Representative Program prepare members for impactful roles on nonprofit boards. We discuss the impact of the COVID-19 pandemic on the Junior League, noting how virtual meetings have enhanced inclusivity and the organization's ability to address mental health issues in the community. Amanda offers practical advice for business leaders and aspiring entrepreneurs, emphasizing the need to embrace change and balance professional and personal commitments. The episode touches on Amanda's personal journey, from her first job to her educational path, and her love for Tex-Mex cuisine and the Houston Livestock Show and Rodeo. Amanda's story serves as an inspiration for women leaders, showcasing the potential for growth through volunteerism and community service. LINKSShow Notes Previous Episodes About BoyarMiller About Junior League Of Houston GUESTS Amanda Hanks BaylesAbout Amanda TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Amanda Hanks-Bales, President of the Junior League of Houston. Amanda shares insights on how the Junior League works to build a better community by being grounded in gratitude. Okay, Amanda, welcome to Building Texas Business. I want to thank you for coming on the podcast. Amanda: Thank you for having me. It's great to be here. Chris: So you are currently, among other things, you're the 100th president of the Junior League of Houston, and so I want to kind of focus a little bit around that organization, tell us what the Junior League is and what it does. Amanda: Absolutely. The Junior League of Houston is a nonprofit organization. We are dedicated to promoting voluntarism through developing women and then unleashing our trained volunteers into the Houston community through effective action and leadership, and that's really our bread and butter. We focus on training generation after generation of outstanding women to then go out and tackle our community's greatest issues and hurdles, and we've done a great job at overcoming some of those things. Chris: When was the Junior League of Houston founded it? Amanda: was founded in 1925. So we are vastly approaching our centennial celebration, which we are very excited about and, in true Junior League form, we've been planning it for about five years. So we're ready to stop the planning process and to start executing. Chris: That's great. So what inspired you? To get involved in the beginning. Amanda: Yeah, I joined about 11 years ago. I really was just looking for a way to give back. I had a really great job and had some spare time and was trying to find what my passion projects would be with that spare time. And the Houston Junior League really gave me an opportunity to one meet a ton of women both in my relative age range and then other generations, and then it also really gave me a great introduction to the nonprofit landscape here in Houston, and so through my years of membership I've been introduced to. I think we partner with 32 community agencies that we send volunteers to, but we also award what we call our community assistance grants to, you know, 15-ish nonprofits every year, and it's a great introduction to all of the really incredible things that are happening here in Houston. Chris: That's great. So then you know, so you get involved as a member. 11 years ago, Then what was the inspiration? To kind of make the bigger commitment and get into leadership. Amanda: Yeah, that's. I wish I knew the specific event. You kind of just get called and asked to step up, and it's learning to say yes instead of no is probably what launched my trajectory in the Junior League of Houston. I'm going back through all of the roles I've had. I like to call the Junior League life on steroids, because we do an annual turnover, the junior league life on steroids because we do an annual turnover. So it's you get new co-workers every year, you get a new league boss every year and you can completely change what you're doing in a matter of months, and so it's just a really cool way to develop yourself and especially your leadership skills. Chris: Well, that sounds challenging in and of itself, that kind of annual turnover. So what, I guess? What has your experience been and what have you tried to do in your term as president to make that as smooth of transition over time for the benefit of the organization? Amanda: Yeah, well, we again, in true junior league form. We have lots of. We have a sheet of paper that we call our chronological and it is your job duties for whatever leadership role you take on, and those get updated annually and passed on. So there's definitely a process there for us to document. I like to say the best day on a league job is when you get your successor, because you're then not I no longer felt alone. It was then someone I could loop into something to then say like, hey, what do you think about this? Or I'm leaning towards us doing one event instead of two. Give me your thoughts and it's. It actually becomes a really great mentorship or friendship bond between your predecessors and successors, because I think we all remember feeling like, oh gee, what did I get myself into? And then having the women around us support us and prove that we can handle whatever role we take on. Chris: Very good. So how many in the leadership team then at the junior league? Amanda: So hard question. We have an executive committee that's comprised of about seven members total, including myself, and they oversee kind of each of our bigger areas within the league. And then our board of directors is 23 members strong. That includes some of the executive committee and as well as some other directors in charge of some other key areas that we do. But beyond that, you know, we have a head active role, which are the actives in a community placement or a tea room placement who are really working with our first year members and making sure they have a good year. And I honestly think in some ways I learned more as my time as a head active with that one-on-one interaction than I have in some of my higher level with finger quotation roles. So I would say we have close to 250 total leadership roles. Those obviously span the gamut of what type of leadership you're interested in. Chris: So you said 250, maybe total leadership. What's the total membership? Amanda: Total membership, we have about 4,500 members. Of those 4,500, we have about 1,400 who are active members, and those are the ladies who are signing up to volunteer at least 60 hours a year in our community or here at the Junior League of Houston. So the remainder of our membership are what we call our sustainer members of Houston. So the remainder of our membership are what we call our sustainer members and they are the women who have served their time as active members and choose to stay a part of our organization to continue to build the next generation. Chris: Yeah so that's a sizable organization by anybody's definition. Tell me a little bit about, I guess, what you have done in those senior leadership roles and as president to effectively lead the organization. What are some of the skills or things that you have learned along the way that you've implemented to make sure that everything is running smoothly and efficiently? Amanda: Geez, the list is long, so I would say Top two or three maybe. Back to the list of or the league being lifelong steroids. Moving up the ranks to get to president, I really got to work with some incredible women and pick what I liked about each of them that made them a fantastic leader, and so I really went into this year saying you know, so-and-so was a great motivator. She always knew how to start a meeting and make us feel valued, and so I really focused on expressing gratitude, because the other challenge with being a president of the Junior League of Houston is you are not. We have eliminated salaries, right, so everyone is there out of the goodness of their hearts, and trying to figure out how to motivate people when a paycheck is not in the equation is an interesting formula to come up with, and so I really have always focused on understanding people, what makes them tick, what drives them, and trying to individualize that on whichever leader or member I'm talking to, to get them to either create the results we're wanting in a fundraising event or, to, you know, make sure that they feel like they're supported in a way that can continue to help them feel like they can move up in the organization. Chris: So I think you kind of referenced something that's very important for any leader or an aspiring leader, and that is be aware of your surroundings and learn from others. Like you said, you kind of saw others and what they did. Like you said, you kind of saw others and what they did and you get to pick and choose what you think might work or might fit for you and mold yourself from a number of different sources, and I think any smart leader should be aware of that and should try to emulate that. Amanda: Absolutely, and that's been the true blessing of my time at the Junior League is having the annual turnover. I think it's our blessing, and our curse is the ability to work with so many women so quickly and to really use that chance to hone my own skills as to the type of leader I wanted to be. Chris: So you mentioned. It's a great segue because you said how you're not getting a paycheck, nor are any of the other members or leaders at the junior league, but you do have a day job where you do get a paycheck. Amanda: I do. Chris: Right, so you're an in-house lawyer at Plains All-American right, I am. So let's talk about first. There's a couple of things we can, I think, cover. But just how do you maintain that balance of making sure you're doing and meeting your commitments for All-American while also meeting your commitments to the Junior League? Amanda: Yes, and that is a huge balance to try to manage. Try to manage. I am very blessed to work at a place that, when I told them about this opportunity that was given to me at the Junior League, they immediately saw the experience I would receive and the skill set I would be able to develop and they saw immense value in that, and so for that I am immensely grateful to Plains for their support and my direct supervisors for understanding, like some days there are random days I need to take a vacation because I have a long list of junior league things to do, and they have accommodated that beyond my expectations. The balance I just I don't know, I don't like the phrase work-life balance because I think if it's important to you, you find a way to integrate it into your life. Chris: I couldn't agree more. Amanda: So there have been weeks that have been work-heavy and I've had to put Junior League on hold, and then there have been weeks that have been league-heavy and I've had to ask for grace at my office and my co-workers have all been very cooperative of it or supportive of it. So it's been a really great experience on all ends. Chris: Well, I think it was beneficial for you, but also wise of Plains All-American, to see the value in some skills that you could develop, that they maybe couldn't provide that same opportunity but would receive the benefit because you take what you learn in the leadership roles of junior league and apply them in your day job. Amanda: Right. Chris: And, I'm sure, in all aspects of your life. Amanda: Oh, yes, absolutely. But to your point, I have been for several years now intrinsically involved in managing, you know, close to $40 million budget for the junior league, and really not just administering it but having to be responsible and report out to various stakeholders about that budget, and that's something that that gate hasn't opened at my professional career yet. And so there's just been a really great way to supplement and enhance some of the skills that I know I will need at some point in the future at work, and then the Junior League has been a really great resource for that. Chris: Yeah, how has it translated into the rest of balancing or lessons you've learned? That kind of make you better in all aspects of your life. Amanda: Yeah, I will say I reached a point where a mentor of mine at the Junior League told me as soon as you realize that the job's a lot less about the to-do list and a lot more about the people, the better you'll do. And from that I realized that I was extending grace to a lot of people on my teams or volunteers I was talking with who were struggling, and you know the work-life balance we all try to find, and I realized that I wasn't necessarily extending the same grace to myself. And so I will say being having to act on all capacities for a year plus, both professionally and with the junior league, has been a masterclass in how to be graceful with yourself and be proud of what you're done, what you're doing and not focus on what you haven't done. Chris: That's a very astute observation and something that I think everyone could benefit from keeping in mind, because it doesn't come natural to us. Amanda: No, no, we're our worst critics, unfortunately. Chris: Now I also understand that Junior League, in addition to doing great work in the community, also, I guess, has some training available to your members to help them develop the skills to be in leadership positions and serve on boards. Tell us about that. Amanda: Yeah, we do. We have. We call it our Leadership Institute Training Program and it's a comprehensive program for our up-and-coming league leaders to introduce them to all the facets of the operations of the junior league and help them get better on board for future league experience. And then we have a program called our Outside Board Representative Program and those are agencies, nonprofits that we work with, where we place a junior league member as a non-voting member on their board, with where we place a Junior League member as a non-voting member on their board, and some are very well established nonprofits are up and coming. We have about 35 of them and the terms for our outside board representatives run from, I think, two to three years. And what's really great about that is we let the nonprofit tell us what they need. Do they need help with with governance? Do they want someone that you know was trained heavily in robert's rules of order? We will try to place a member there that can help them with that. And sometimes they say we need a lawyer, or sometimes they say we need someone who can help us with communications, and so it's a really cool. It's ended up being a really cool network of just nonprofits out in the Houston community that then all of our members come back and tell us about. And then we started having some meetings with the executive directors of all of those nonprofits and just to have the conversation of what's fundraising doing this year. How are you motivating your people, those types of conversations? So it's a really awesome way to get the junior league experience and kind of launch you into what I call the next phase of finding your passion and making a difference. ADVERT: Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Chris: That's great. So you know. Obviously you've developed along the way. I want to ask you about, and whether it's in your professional career, as you've grown and moved up the ranks, or at the junior league, think about some challenges or setbacks that you've encountered. Maybe a mistake, but did you overcame it and learn from it, and it made you a better leader today because of that. Amanda: Oh, I mean absolutely, and I think that's another thing. That's what's great about spending time. The time I've spent at the Junior League is it taught me how to handle a mistake right To own it right up front and say I think I screwed something up, I missed this, and then say here are my steps to fix it. And I think you have to live through that a couple times to realize you need to say and here's my plan to fix it. Chris: Right. Amanda: And then owning up to the mistake isn't quite as bad as you think it will be. So, yes, I mean, there were times I remember I mailed a donor packet to the wrong donor and that poor vice president that was in charge for me was not happy. I apologized profusely and got to write a thank you slash, I'm sorry. Note to the donor and it ended up being perfectly fine. I think everyone understands mistakes happen, but it's certainly again a training ground to give you a chance to figure out how you want to respond when a situation like that comes up. Chris: I think you're so right Mistakes are going to happen. I think it's what you do when they do occur. That is kind of the test right, and owning up and not turning away or running from it or leaving it to someone else to fix but be a part of the fix shows determination to just own up to it. Right, absolutely. And those are all important skills because the odd chance that was your first mistake, we know won't be the last, right, it's very true. So that's good. Thanks for sharing that. I know some people don't like sharing the mistakes and challenges, but I think there's so much learning in that, absolutely. It's going back just to kind of the ins and outs of the role as president with this large organization. What I mean? I have to believe communication is key. So what are some of the things that you do to make sure that communication is not only clear but consistent, so that people stay on the same page? Amanda: Yes, and we actually have a person on our board whose sole responsibility is communication, so she helps me immensely in the messaging and it's one of those things you think you only need to say it once and you realize you need to say it three or seven times and all it takes is one email response where someone interpreted what you were saying differently to go oh, I really messed that message up. I think I have lived in a world of trying to be transparent and wanting people to understand my logic and my reasoning when something's changing or a decision's being made, and then just being open to the why of whatever is being communicated and also including that in my communications, especially to our board members. Chris: And I think that, at least for that group, has fostered a really great collaborative environment for us. That's great. I think you know transparency, clear communication, is so important. I also know that if you're communicating things out to that many people, there's going to be a few that just don't get it or don't read it the way you intended right. Amanda: So it's just, it's inevitable, absolutely. Let's talk a little bit, I mean any organization has a culture. Chris: Right, You've got one at Plains All-American and the Junior League has a culture. How would you describe the culture at the Junior League as a organization and what have you done to try to continue to foster and build upon that? Amanda: Yeah, that's a great question. I have always found our culture is rich in traditions. We have almost 100 years of trying to build a better community. That's our tagline, and what I have found to be most impactful in that culture is when we take a moment to express gratitude, and so each president's given the opportunity to develop an annual theme, and my theme this year was grounded in gratitude, and I quoted it was a Warren Buffett quote that and I'm going to butcher it on the spot, but it is essentially those who plant the acorn aren't intending to sit in the shade of the tree that grows, and so I really think what the Junior League has done really good at is we've created women who are not afraid to plant an acorn and then know that they're not going to reap the benefits of it. Someone who comes behind them 20, 30, 100 years later are the ones that will reap that reward. Chris: Kind of that attitude of pay it forward. Yes, that's very inspiring and noble. So what so sounds like a very collaborative and supportive culture? Absolutely, I want to talk a little bit. Maybe you know, outside of culture, just in the ins and outs of running this organization. What is a junior league doing with technology to help serve the mission, further the mission or anything innovative that the organization's trying to do to keep the organization current and move it into the next generation? Amanda: Yeah, gosh, that's a question we try to answer all the time. Covid forced us to change a lot of things from a member experience perspective and we've shifted some of our meetings to the virtual space, which I really think created an inclusive environment. Because if someone's being asked to attend a one-hour meeting and they were being asked to drive to and from our building, you're looking at a two, two-and-a-half three-hour commitment right there. And then I at one point realized the number of women who were having to line up child care so that they can make that meeting. So then the added burden of expense and just making your day-to-day work right. Sure that our leadership after COVID, when we realized that we really could communicate some of our meetings and our trainings in that capacity in a virtual manner, embraced it. Our trainings in that capacity in a virtual manner, embraced it. And so our approach has really been like, if you are in a situation where you need to line up childcare and you need to, you know, take three hours off of work to make a time with the junior league work. We wanted them to be spending their time in the Houston community, and so I really think that's been a pivotal shift for us where, like. Yes, our meetings and our, our trainings are important, but what's more important is us getting our volunteers out in the community yeah and so it's. It's been in. A change is interesting, right. People react to change in various ways. It's challenging right. Chris: So I mean a lot of what I hear you saying is you're there's been a focus, at least two things. One how do we use technology to increase our member engagement? But what I'm interpreting what I've heard you say is that's been grounded in a focus on how does this help further our mission and help our members further the mission and that is your guiding light Absolutely, and that's true, it should be true for any organization. Right, when you're making these tough decisions or navigating through difficult times. Right, any other examples of technology or innovation where you think things that you're trying to implement. Amanda: Things that we're trying to implement. We always try to be at the forefront of issues as they come out in the community. I love talking to some of our sustaining members who were part of our organization in the 80s and 90s, because they will talk about what the Junior League of Houston did to start helping and assist children with HIV, which was a very taboo topic back then, and so our membership is really focused on mental health and what we can do to support those struggling with mental health in our community, and so we are continuing to find new ways to either train our own volunteers to spot mental health issues and the appropriate steps to move that forward, and then we're continuing to try to find places. It's a tricky placement, right, because you borderline healthcare and need someone with certain certifications, but to find a way to interweave our members so that we feel like we're giving appropriate energy and resources to a really important topic. Chris: Yeah, to find that intersection of what those organizations may need and then where you can help. So obviously you've talked a couple times about the annual transition of leadership. Let's talk a little bit about, maybe, what has been your experience and what are you trying to do as you're about to transition out to kind of prepare the organization for that change in leadership again, so that to keep it as smooth as possible yeah, I always say you need mentors and sponsors, right, and you need people who are supporting you, who are the phone of friends, that you come and you say like I don't know how to do this, please help me. Amanda: And then there are the people behind the scenes who are saying you need to do this, you can do this, and I think I really have tried to one do that to all of the people on my team and then encourage them to do that for their teams, because I think once you realize you have women speaking up for you saying like, oh, amanda, she's great, she can do this, your confidence level increases and then you're not afraid to ask the questions, because what happens in the annual turnover is you go. Oh, no one told me about that one thing right that wasn't an issue last year, but it's suddenly an issue this year, and how do I address it? So I really think, creating the environment of there's no dumb question. How can we support you? Tell me how I can help. What can I do for you to make your job easier? Or what can I do to you to help get you the clarity you need to feel like you can move forward? And to your point earlier, that's a culture thing. Right like that goes back to that supportive culture right, it's a safe place. Chris: Right, that's got to be key to one. Furthering an organization for as long as it's been around right, but continuing that flow of solid leadership, right, um, I think that's. I think that's important for any business to try to create that environment where people feel safe in asking questions, asking for help and not feeling like they're going to be criticized for doing so. Amanda: Absolutely. Chris: You're basically running, would you say, a $40 million business. You obviously have an important role at Plains All-American Plains All-American. What is some advice you might offer to someone that is a business owner leading a business now or maybe an aspiring entrepreneur about? You know from your experience what you've learned, to just pass on a couple of key things that might help them in their journey. Amanda: Yeah, I mean first I would say yes, when someone calls you with a wonky idea and you don't always feel like you need to say no, embrace change, embrace different. And then I would say and this is probably me looking in hindsight, since I'm coming up on the end of my term as president is set expectations and it's, I think that's, I mean, it's universal and can apply to anyone, right, your team, your staff, but then also, like yourself and your family, and you know, I tried to make a commitment to my husband that I would try to not do Junior League on Sundays, and that would be the day where I wasn't answering emails or on the phone. And so to really, as you're taking on something new, to create the boundaries for everything that's gonna be impacted by a decision. And then I succeeded and I didn't succeed at the same time. Chris: Well, that's okay, right, I mean, I think it's really. I mean you're so spot-on, set expectations of yourself, of your team, hold people accountable right, set boundaries, but know that no one's perfect. And I think it's about awareness. So, just as you said, you weren't perfect at it, but you were aware when you didn't. And then you're like okay. Amanda: And to be able to have the follow-up conversation when something isn't right with someone on your team. Like I thought, our goal was this we seem to be straying from it. What's going on? And that goes back to what my mentor told me it's normally there's something with the person and not the job. Right, there's something underlying that's causing a shift in that expectation. So to circle back or, you know, confront those expectations months in or years in, it's definitely something's worth it. Chris: Yeah, I agree. So what about you as a leader? How would you describe your leadership style? Amanda: I would describe my leadership style as what is it? I would say I love rolling my sleeves up and getting into the trenches. I just I don't. I think we I preached on this to my board servant leadership, Like I will never ask someone to do something that I'm not willing to do myself. And if you need help, say you need help and I will be there right alongside you helping. If it's stuffing envelopes, if it's planting trees, whatever it is, and it's just that's. I think that's just who I am as a person and that's who I've seen some of my favorite leaders be over time, or the people who are there who focus on. We're here for a greater cause, we're here for the common good, and let's find a way to accomplish it together. Chris: Very good Anything that you would point to over the last few years that you've done to help grow and develop as a leader Books, mentors, conferences, anything like that. Amanda: Yeah. So we had a time management coach come and speak to us at our board this year and I I would tell you I before talked her name is Anna dearman Cornick. She is fantastic and before I would tell you, I thought time management was a bunch of hooey and like who has time for time management, essentially. But some of the tidbits she gave were eye-opening and it again, I mean, probably goes back to the expectation she was big on you schedule time for the important stuff you can't miss, whether it's, you know, personal relationship, your health, your faith, whatever that is, and then you find a way to make the other stuff happen around the really important matters. And it was a good perspective check for me hearing it. So it's, I do like time management now that I've been won over to the side of time management. Chris: She won you over to change your perspective and your mindset. Very good. So just kind of wrapping things up, I mean, give you a chance. If someone out there listened to this and was interested in joining the Junior League, what should they do? Amanda: Yeah, you can go to our website. It is JLH for Junior League of Houston, jlh.org. There is a join how to join section which you can look at, and then there are links to take you. We have a admissions process that runs once a year. It opens up September ish and runs through January, so it's fall to winter time, and then we can help you with all of the steps of filling out your application and getting you on board. It's a really great way to enhance your network and find all of the fantastic things that are happening in the Houston community and be a part of it. Chris: Great. Well, Amanda, let's turn away from the business side of things and tell us what was your first job. Amanda: My first job, gosh, it was. I worked at the Gap and I was I don't even know what my title was I would fold jeans. Chris: Everyone came in and messed them up, even know what my title was I would fold jeans. Amanda: Everyone that came in and messed them up. I never realized how people, how messy. People were in dressing rooms until I was the one having to fold it all after. It changes your behavior now right, Absolutely. Chris: So okay, native Houstonian right. Amanda: I am a native Houstonian, grew up in the Klein Champions area. I moved away for college, which was at the University of Texas at Austin, and then I did my law school and MBA at Texas Tech. So the move from Austin to Lubbock was an interesting one. I didn't know that tumbleweeds were real until I lived in Lubbock and then I quickly came home. I miss the great Houston community so much, so happy to call it home now. Chris: Very good. So do you prefer Tex-Mex or barbecue? Amanda: Oh, tex-mex, all right. Chris: And tell us one of your favorite hobbies or pastimes when you're not working at Plains All-American or volunteering with the Junior League. Amanda: I truly love the Houston livestock show and rodeo and luckily my husband is from Louisiana and I onboarded him into loving the rodeo, but we can go every night and just watch the rodeo itself or the exhibits. That's a fun time of year here in Houston. We're big fans of it. Chris: That's a good one. No, it's a true Houston treasure. Amanda: Absolutely. Chris: Well, Amanda, I want to thank you again for coming on the show and taking time to be with us today and share your story and that of the Junior League. So congratulations to all y'all are doing for our community. Amanda: Thank you so much and thank you for having me. Special Guest: Amanda Hanks Bayles.

Building Texas Business
Ep072: Balancing Human Values and Business Growth with Jen Sudduth

Building Texas Business

Play Episode Listen Later May 15, 2024 39:23


In this episode of Building Texas Business, I welcomed Jen Sudduth, CEO of Sudduth Search, for an insightful discussion on her journey in the executive search industry. Jen shared her story of transitioning from Taylor Winfield to launching her boutique firm focused on transformative growth companies. I learned how Sudduth Search crafts a supportive work culture that prioritizes both productivity and well-being. Our dialogue also uncovered nuances around balancing work responsibilities with life's pleasures. As we wrapped up, Jen reflected on life lessons from mentorship to her commitment to the Special Olympics community SHOW HIGHLIGHTS Jen Sudduth shares her transition from Taylor Winfield to founding Sudduth Search, focusing on middle market private equity and emphasizing the need for leaders who can drive change. We explore the importance of having a business and marketing strategy before starting a venture, as well as considering when to hire based on company growth and values alignment. Strategies for maintaining work-life balance in recruitment are discussed, including setting boundaries and fostering a culture that supports employee well-being alongside business success. The episode delves into the comprehensive selection process for executive search, particularly for pivotal roles such as CFOs, and the role of retained search firms in this process. Jen reflects on the role of empathy in leadership and the importance of mentorship, drawing from her own experiences and her involvement with the Special Olympics. Personal joys, such as a preference for Tex-Mex cuisine and planning for sabbatical destinations like Maine and Santa Fe, are shared as part of achieving a joyful living. The conversation covers the initial opportunistic hiring during COVID and the shift towards a more strategic hiring approach to raise the team's overall expertise. Chris and Jen discuss the benefits of leaving a company the right way, honoring agreements, and how transparency can lead to unexpected opportunities. Jen advises on the importance of planning for success, not just the startup phase, by having operational projections and growth strategies in place. The episode also touches on Jen's past experience as Director of Talent at a consultancy, highlighting how internal hiring insights can improve external recruitment advice. LINKSShow Notes Previous Episodes About BoyarMiller About Sudduth search GUESTS Jen SudduthAbout Jen TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In today's episode, you will meet Jen Sudduth, co-founder and CEO of Sudduth Search, a boutique executive search firm. Jen's advice to aspiring entrepreneurs is to be intentional and purposeful in your business planning, and don't forget to plan for success. Okay, jen, first off, welcome to Building Texas Business. Thanks for being here. Jen: Thank you. Chris: So I'm excited to have this conversation with you today. I want to start by just allowing you to introduce yourself and tell us what your company, Sudduth Search, is known for. Jen: Sure. So we are a seven-person boutique executive search firm, but I think what we do is a little bit unique. We work with the middle market private equity. Probably 75% of our clients are private equity backed. The other are public, private you name it individually owned, it doesn't matter. I think the common denominator with all of them is that all of the companies are going through some sort of transformation, and most of the time that's growth. It could have been that they raised capital. That's a trigger to bring us in and go and replace some of your leadership team. Could be some of our bigger companies going through some sort of culture change. We did 10 positions for a Blackstone-backed company and basically they wanted to pull from outside of their industry and they didn't know how to do that, and so we helped them come up with a concept of how to do that completely, you know, changed their recruiting processes from how they were doing them before, and then they brought in a whole new culture and that's what they wanted. They wanted a different culture than they had before. So it's just, it doesn't matter what the trigger is, but it's usually some sort of change, transformation. You need a leader that can drive that change right. You need someone that is fearless. A lot of times that can come in, and they're you. You know they can make things happen. Right and that's where we play most of the time. Chris: Well, what I find interesting about that is how laser focused it is what inspired you to kind of start a search firm that was so focused on that kind of niche industry. Jen: So I've actually done it for over 20 years and the firm I was with before was called Taylor Winfield. I only bring that up because a lot of people know Taylor Winfield. I started with Taylor Winfield and kind of worked my way up and that's what they focused on. They were more. You know that was 2000, so there was a lot of venture money out there, there was Silicon Valley and they worked a lot in California we did. I was just a lowly junior recruiter back then and that's where I learned the business and that's where I kind of learned that world. And it's not for everyone, both as a candidate and as a recruiter, because sometimes candidates will go well, what are they going to sell? Am I going to still have a job? I'm like, well, you're really not, you're not right for this, because that's not the mentality that we look for in a candidate. But so that's how I got my start and that's how I learned it. And then when I started this up my practice five years ago, I kind of I don't do a whole lot of venture. I have a few here and there. Usually they're a little bit more mature as a company. I think. As I've aged I'm not as patient with the venture. I think they've got a great thing going. But it's just a different world and I think sometimes those, the people that are willing to go and do something really earlier stage, are not the same people that I'm looking for the middle market series, b series, c type folks. So so that's how I had got into. It was really that's kind of what I've done my whole career. Chris: Gotcha. Well, I know that you started this company Suddeth Search around five years ago. Jen: Exactly. Chris: So you had to make some decision to leave and just start fresh on your own. Let's talk about that a little bit. What drove that decision? Jen: So the company that I worked for was actually owned by and I don't usually say this, so you're getting new information here by my stepmother, connie Adair, and I bring that up because she's fully retired now. She's been retired for about two years. But she brought me into the business, not as a multi-generational business. I had to earn my keep, earn my way Right, just like everyone else. She was very big on treating me like everyone else. Chris: The benefit for you that she did that. Jen: Absolutely and I learned from the best. She was really known as one of the best in the industry so I kind of got to see that world and that process. But she sold to private equity and it was a private equity roll up. Like some of them, it didn't go really well. The integration piece was a little rough. Chris: Not unique in that regard, right and I got no benefit from it. Jen: To be quite honest. I stuck around to try to support her and she did well. And then she got another bite of the apple and I tried for two years. I wasn't a big company person and I realized if I can make this kind of money for someone else, I should be doing it for myself. And so I kind of did it because I could, and she fully supported me. She knew that retirement was on the horizon and so when I told her she said you know, I think you should go for it. So that's what I did. Chris: That's great. Well, I mean good to have that encouragement for someone that you were close with but considered to be a trusted mentor Absolutely. So got to be a little bit trepidatious to just start out on your own, even though you know what you're doing and you, I think you can't do that unless you have confidence that it's going to work and confidence that it will work isn't a guarantee that it will Absolutely. But you know what were some of the things you did to kind of set yourself up in those early days of starting your own company, to try to pave the path towards success. Jen: So I will start with the fact that I had a very strict non-compete. I did not get any clients from the company or from her, and I am a devout follower of non-competes. Chris: Well, it's funny, you say that you bring that, yeah, you know, now we devise people, I mean literally every day, on both sides of those, and right because because they exist and obviously you know there's a lot of buzz recently because the ftc came out with the rule to ban them, uh, which is, you know, probably not going to take effect because lawsuits have already been filed to challenge it. Jen: But it's going to be interesting to see how that plays out yeah in the next, over the next few years, I think yeah, and not to say I don't think some non-competes go overboard. I have heard some ludicrous non-competes as I'm interviewing, so sure, I do think a lot of them go overboard. I think the fdc is in the is moving in the right direction with some of them, because I think they're a little too restrictive. Chris: But that's not your question yeah, and even as the rule's written, it doesn't apply to executives, so it wouldn't change your world. Jen: It wouldn't, and I'd been there a long time. Everything I got was under their umbrella. So what I did do was I planned for a long time. I've owned businesses before and so I had a business plan, I had a marketing plan, I had a strategy. The other advantage I had was that I had been I've been asked to be on the board of ACG and so that was a. I knew that was going to be great PR. It's gonna be great relationships there. That's how I met Steve Kasten here at the Boyer Miller and a few others, and so I knew that was coming. But it was pretty far out. You know my tenure had just started. Didn't know I was gonna be president, but I knew that was gonna be on the. I'd have a lot of visibility. So that helped quite a bit. I think that was one factor. Fun story unrelated to your question the day before I quit, the day before my last day, I gave like four months notice and they knew I was leaving. I was unwinding. I had some really big searches, so I was unwinding those and finishing those up for clients, kind of on the bench, but just doing that. So the day of the last day of employment I get a call from that client that I just mentioned wanted to change their culture Blackstone Back Company. He said I got 10 searches for you, jim. I said, well, I can't do them, I'm leaving, today is my last day. And he's well, I'm not doing it without you. And so I called the company and I said here's what's happening. Would you, would we, can we do a fee split? Didn't know that was coming, but that was really great cash flow. And they said yes, and so we worked out a fee split. I continued I worked with that client and then they brought in their team, but it was great cash flow right out of the gates. And and then they brought in their team, but it was great cash flow right out of the gates. And then I developed brand new clients from that point on. But I knew the industry. I think the industry knew me. Chris: So even if it wasn't somebody, I'd worked before, I had a plan and I went after those people. That's a really cool story to hear and there's a lesson. There's probably many lessons, but one that just struck me right between the eyes is the lesson in leaving the right way, when you leave a company versus leaving the wrong way and you just laid out a roadmap for the listeners. If you're thinking about leaving, you left the right way, honoring your agreements, and then, with the transparency to get the slug of business for your new business, for your new company, because you went to them and said here's the deal, because you've done everything else right. It's good to hear that. I guess they could have not honored that, but they did the right thing in my mind too, yeah, by saying yeah, it'd be fair to share this and, by the way, we should. Customer comes first. That's what they want. Let's make them happy. Jen: So customer comes first. That's what they want. Let's make them happy. So, yeah, and I completely agree and I try to tell people and I know there's exceptions, I know there's bosses that are just difficult and if they know you're even looking there, you're gone. I know that happens, but I think majority of the time people are reasonable and if you come to them and sometimes I'll have friends come to me and say I'm thinking about making a change- Grass is greener Right and I'm like I know they're in a great situation. I'm like have you had a really difficult conversation with your boss before you leave, before you start thinking about? Have you told them that you're unhappy You've been there? Chris: 14 years or you've been there seven years. Jen: Have you talked about it? And usually the answer is no, and so I try to encourage them to say go talk to them first and then if it's still you know, in a month you still feel like it's just not fulfilling then talk about leaving. Yeah, but you need to give them a chance. Chris: It's great advice. People unfortunately right. It's kind of human nature to avoid the difficult, uncomfortable conversation, or at least I'll say this, the ones we perceive have it that they're going to be difficult or uncomfortable. And to your point, I think, a lot of times if you actually have the courage to go have it, they usually aren't as difficult or uncomfortable as you work them up in your mind to be. Jen: Absolutely. Chris: And you know I can speak. You know as well as you can. If you give your employer, where you've been otherwise happy for a while, the chance to have that conversation most people if there's a tweak or two that would keep you there, it's probably going to save the company a ton of money. To consider that. Jen: And it might benefit the company. Talk to them about. You know I'd really like to do more sales. You know I'd really like to take on bigger projects. You know what We've been looking for someone that wants to take on bigger projects. You just never know what the company needs. Chris: So we can go back. You mentioned, and just for the listeners ACG Association of Corporate Growth. Jen: Yes. Chris: Indice Group industry in the kind of M&A, a lot of private equity. So sounds like part of that marketing plan was to plug yourself in to the right kind of networking system where you would meet people and build relationships. Jen: That's correct. Yeah, yeah, and I eventually was asked to be president I don't know if you know that and so it was a lot of it was a lot of visibility as well. That's half the battle. Chris: Yes. Jen: Because there's a lot of top of mind search firms out there. Yeah, getting top of mind and helping them see that. I understand private equity, I understand what their challenges are. I understand what they're trying to achieve. I understand how capital's raised. You know I've got the knowledge base to be able to convey that to candidates and to help find the right one that's going to fit that. So I think that helped a lot and it's it was educational for me. You know, going to conferences, hearing panels speak. I know a lot about a lot or a little about a lot. Chris: Let me rephrase that I shouldn't admit that, but it's true, but it does. Jen: It's real educational to hear those conversations and to hear what's happening in the market. You know from your peers that are in the organization. Chris: A couple other takeaways from what you said. That I hope people listening caught is that you had a plan before you did this right, absolutely. You sat down and put it to paper a business plan, a marketing plan, a strategy. Look, I think those are so important and can be overlooked. When people say, look, I'm just going to go chase this dream, that's great because you need the inspiration, but you also need some substance behind it, because if you eventually do go to and most will go to a bank or an investor or something, they're going to be asking about that. So you better be prepared. Jen: Absolutely. Chris: So one of the things and you and I were talking about this, I guess before we got the recording going, and that is you know about this, I guess before we got the recording going, and that is you know, you now have seven employees. Let's talk a little bit about you know. I think there's a few conversations. One is what was it that triggered you each time to make the decision Now it's time to take on an employee or another employee, because those are big investments and then how did you go about making sure they were the right fit? Jen: Yeah. So it was growth that predicated the need. That was the part I didn't plan was when am I going to hire what? You know what? At what point do we need to bring on another person? At what point do we need to bring on a junior person, et cetera, et cetera. I didn't plan that piece of it and I probably should have, but it was really just my bandwidth and being able to do what I needed to do. You know, we were super busy during COVID, which sounds really strange, but I had some. I had that one big client that was still going. I had just so, if you think about I had been in business for about a year and so that year I had been really busy doing marketing and business development and getting out there and making relationships, and so it just it paid off and I think a lot of those people one of my biggest clients I don't know if you know Dave Marchese, he'd be a good guest. Let's do it. He called me out of the blue in the middle of COVID and we had met like five years prior, but he had seen my posts and my marketing and my emails and so he said I can't go out. I'm not going to go out and interview five interview candidates, but we're in the or excuse me search firms because we're in the middle of COVID. So what you got Jen, and so I took it on, and we've probably done 15 different positions over three or four years. Wow, so he's one of our biggest clients. So there that, I think the prior relationships definitely helped us make it. You asked about employees, though. Chris: Yes, well, before we go there. Yeah, one of the things you so interesting. You said I didn't plan for growth. Yeah, probably should have. Jen: Yeah. Chris: So, looking back, what do you think you could have done in that regard that you might offer as advice to someone that you know is maybe about to do something similar that you did five years ago? You know, what have you learned? Looking back, to say I would have, if I was going to do it again, I would plan for growth in this way. Jen: Plan for success. I think I was so focused on how am I going to get there that I didn't say if, when I get there, if when I get there, how am I going to get to the next level? I never did that. I never said, okay, I can handle 12 searches, or whatever it is, at different in different phases. So if I get 14, what do I do? At what point do I, you know? Do I need to start hiring when I get to 9 searches, whatever it? So maybe it was a revenue. I think I should have projected and said, because I've been in the business a while, I know how many searches I can do by myself or with a team, and so I think that would have been very helpful to do kind of like an FB&A analysis, but on the operational side. Chris: Right, Very helpful, that's very helpful. Okay, so now let's go back to kind of set a search. You starting to decide I've hit the point, I can't do this all, I've got to bring someone on. Yeah, you know how did you go about sourcing. I know obviously you've probably had a lot of contacts, but you know just the whole process of how you interviewed to make sure they were going to be a good fit for your company. Jen: So my first hire, I got really lucky because she was a neighbor, a friend who got laid off during COVID and so we brought her on just to do some of this data pushing type stuff. She made phone calls, cold calls, she's fearless, and then she grew into being a really good recruiter. After that first hire it was, oh my God, I can't handle this. I just need a body that can help do, a professional person that can do all this. After that hire I was much more purposeful. After that it was we want experience. We want, you know, degree Now she was degreed. But we want degreed individuals that understand the business world, that understand you know degree Now she was degreed. But we want degreed individuals that understand the business world, that understand, you know. I think every time I made another hire I kind of elevated my expectations. Chris: Right. Jen: And not to say the first hire was. She was a phenomenal employee, but I think every time after that I was much more purposeful about how I, who I wanted to hire and what my expectations of them were. Chris: Yeah, that makes sense to me and you're right, it's not a condemnation of the earlier hires. It's if you're doing things right, I believe you're always learning and your processes can always get better, and it doesn't mean you didn't make bad hires before, but you can get more intentionality around the decisions you're making and I think that's part of growth and when you're a one person show or two because my husband did join me about six months in it's harder to attract talent you know, Now we're about to make an offer to a pretty senior person and we had a really good slate of people that were interested, that were like, yeah, I want to join a boutique firm, I want to do what you're doing. Jen: So it changes too. Advert: Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Well, that's validating. So you've gone through this process of sourcing people for your company, right, and what have you? What has that process and the learning? Jen: through that done to help you better advise your clients or vet candidates for them. What else about that I'm actually gonna go back to. So I took about five years. I left the executive search world and went to a consultancy and they I was director of talent. We tripled in size in about five years time and then they sold to Accenture about two years after I left. When I left, I think oil and gas was zero. The barrel, the barrel. Chris: I remember that yeah. Jen: So they made a strong comeback and then eventually sold. But being on the inside like that was the best education I could get, because it was. This is what happens when you make a really bad hire. This is what happens to the entire company when you make a really good hire. And we weren't huge I think we ended up being about a hundred but but it was really helpful to me to see. I also learned you know really short tenures on people's resume. There's a reason you know, I know there's reasons that people have to leave jobs absolutely there's good reasons, but when it's over and over and over, and then you hire that person because you're desperate for a data manager or whatever it is. You're desperate for that skill. You're going to find out why they can't stay in a job longer. I learned a lot being on the inside, you know, and I think that job is really what taught me kind of the hard knocks of making a mishire. Chris: Right. Well, I think you're to your point, right, it's if you look there are red flags, pay attention to them, and I know from our we're not perfect either in this business that I have, and you know sometimes you can convince yourself to overlook a red flag here or there, and more times than not you shouldn't. Right, there's exceptions to every rule, but we don't want to run a business based on exceptions necessarily You've got to be purposeful about those hires is really what it taught me. Jen: You know very purposeful. Chris: So just to kind of come back to Sutter's search a little bit so you have seven, about to have eight, and you talked about doing a search for a client where it was a culture change. Let's talk about culture at Sutter Search. What are you, as the kind of co-founder and CEO, doing to try to cultivate a culture? How would you describe it? And what are you doing to kind of, you know, foster it and breathe life into it? Jen: Yeah, it's hard with seven people, eight people, you know, to kind of create that, because you're like oh, we're just eight people, but they need it. Employees need training, they need to be developed, they need to evolve, they need to expand and grow, and so we actually started EOS at the beginning of this year. Are you familiar with entrepreneurial operating system? Chris: Yes. Jen: I think I don't know if Allie was the one that told me about it, but you know I've heard a lot of business owners that have done it, and so we actually started it and I think it's been evolutionary and I'm not selling it, I don't sell anything they do but it has really helped us be very purposeful about what we're doing for our employees, and so my one of our other managing directors is. She's in charge of kind of the HR and training, and so we have a weekly training every single week and it's sometimes it's heavier than others, but we have a weekly training every week and one of the employees actually gives it, so they have to go out and learn themselves and then they come and teach the rest of us. I try to. I'm a big advocate in the old school headhunting world is just dog eat, dog work, and so when I started my firm I was like I don't want to be that way. We're not working 12-hour days, we're not working both coasts, we're going to have a great and I hate to use the words work-life balance because I know it's overused. Chris: That's right. Jen: But we are, we're going to edit that part out. I'm kidding it is overused, but I think in some aspects it's important because you're a better employee if you take your vacation, if you didn't have to work until 9 pm the night before, if your managing director isn't calling you at 6 in the morning because she happens to be on the East Coast that is not the culture that we have. I'm always telling them you're going on vacation. Who's taking your emails? You're going on vacation. Who's taking your emails? You're going on vacation. Who's taking your calls? Did you put your out of? We require out of office messages to be turned on and I'm just, I'm always preaching that. I really think it's important to separate yourself and give your brain a break, because what we do is very, it's very repetitive, it's very. You know you may, if you have ten searches, that you have four candidates at least on what we usually have a hundred, but you have four finalists going through to offer yeah you think about the ups and downs every single day. Chris: It's a lot well, I mean, to your point, what you're doing, I mean, has to be stressful because you're affecting people's lives. Absolutely right, you got four candidates and or maybe see this as a great opportunity and are very hopeful, and you got a, a client, that needs to fill a hole and every day they don't have that whole field, they're losing money. So I can get that yeah to your point, the work-life balance and we could do a whole podcast on that. But I think what my experience has shown, or at least what I feel like I've learned through that, is our work-life balance is different at different times of our career. So it's hard to institutionalize that when everyone's at different stages. We try to use the term more like professional development. Developing our people to be great professionals means you tend to your business, but you tend to you have a life as well and you got to figure out how to manage both in a healthy way, knowing that the way it works for me now is totally different than it was 15 years ago right and that's okay because everything changes and we have new employees here that are going through totally different life stuff than I go through now. but how do we help give them the tools, the training to manage that and still be successful both in the office and in their personal life? Jen: Yeah, and we do we have different? Everybody kind of has a different work methodology. I shouldn't say hours, it's more like hours, you know a 20-something. They like to kind of work late in the day and have their workouts in the morning or whatever. Like everybody's kind of different. And then Hazel and I are about the same age and we like to not be disturbed until 8.30 or something. You know, like we like to go do our thing in the morning and work out and whatever. Read the paper and everybody's a little different, but we are very understanding of each other's different lifestyles. Right To your point. Chris: The key there comes to communication right. Yeah absolutely Absolutely, and so do you have. What is it that you're using as such to make sure those conversations are happening? Yeah, so that people understand how each other works differently, but together you can work for success. Jen: Yeah, we talk about it when they're hired. I say I'm not going to track your hours unless your productivity is not working Right, and then we're going to talk about it. Do you have too of a workload? Or, let's be honest, are you not working enough? You know, because last week you didn't have very many searches. This week you've got a lot. So if I need you to work till six, you gotta admit that last week you didn't have to. And they're very honest with me. A lot of times they'll say, hey, not going to be online until 10 or so, but I'm going to be working late or whatever. Or I stayed up for four hours last night sourcing. So you know I'll be available on phone but I'm not online. Perfectly okay, and we're very flexible that way. It's a little hard sometimes. You know, I'm always like are you working? I'm on the back of my brain and then I have to call myself and go. Of course they are, it's not producing. Chris: So that comes down to two fundamentals no matter what industry, communication, yeah, and what you're willing to do is have what some people might feel like is the harder conversation or uncomfortable conversation, but you approach it with kind of support and transparency. Jen: Yeah. Chris: The other thing. It comes down to productivity. Jen: Yeah, right. Chris: Absolutely. If we're running a business, we're running a for-profit business. We have to be productive to make the business go. So you can't lose sight of that. Some people, I fear at times the extracurriculars overweigh what we do to make our money and what is our. You go into the. This is what fuels our economic engine. We can't lose sight of that. It won't matter how many out-of policies or things we do, we won't have a business to support it. Jen: So it's finding a balance there, right? Yeah, I'd say the common denominator with all my employees is they thrive on success. They thrive on accomplishing things. They're not going to just shut things off if they're not done and they haven't accomplished what they set out to accomplish. They're very driven that way. That's a common denominator. Chris: Very good. So a little bit about your business. So you were saying you know, middle market focused, we're kind of approaching mid-year 2024, which is like just blows my mind that we're, you know, that far into the year already. But you know there are businesses out there that either use services like yourself or maybe contemplating that, and I know, at least in your world there's at least two different ways to go about it Retain, searches or kind of the contingency model. Can you just share maybe a little bit about what each is, the differences, pros and cons, and maybe flow into what a company should consider going one versus the other? Jen: Yeah. So I want to make it clear that I am not pro or con. Either way, I think there's a contingency, there's absolutely a place for it. I have several friends that are in the contingency recruiting world and they say I will never be in the retained world. So there is a place for it and I think if you have a large number of hires, you have a position or a company that is attractive to candidates and you want to get all the resumes you can get and then choose because they want to come to you, that's great. You can use contingency. What we do is a consultancy. So if you're a middle market working with a middle market firm right now, it's a downhole tool. Cfo position this position is critical that they get it right because they have big plans. I'm not going to tell you what those big plans are. They're private equity backed and they have big plans and it's going to happen, but if they don't have a financial expert that can devote time and devote, then it's not going to happen. And so it's critical, and in that situation you absolutely need to find the best person that you can find, and you need to interview a lot of people to make sure that you are choosing the right person, and so that's what we're doing. That's where we come in, and it doesn't have to be a CFO role. We can do. We do VPs and we do directors sure directors but we're going to look at 150 people that we know could do this job, and then we're going to reach out to every one of them and then we're going to interview 20 or 30. I'm going to interview half of those and then I'm going to present and rank the top. So it's not like we're going out and finding five people that are qualified and handing them to you. We're going out and finding 10 times that many maybe not 10 times, but a lot more than that and then finding you the best and ranking those for you to interview. So if it's a critical hire for your company to succeed, I would absolutely recommend retained, because they should be a retained firm, should be a consultancy, they should help you find that person. Chris: So that's really helpful, and hearing you describe it makes the difference very clear for me. I hope for the listeners and what I hear is you're doing a lot more upfront work on the retained side and I guess, as a consumer of these services, you should expect that your retained firm will do a lot more upfront work and vetting the best clients to bring to you. Jen: Yeah, absolutely. And the other thing I think that's important for my clients to know is our database is completely open. Our kimono is open. Is that a bad thing to say? Chris: No, we don't have video, so we're good. Jen: They can see everything we're doing, when we're doing, how we're doing. It's not a we'll talk to you in a month or two and we'll give you three great people. There's no magic thing that happens like that. It's a database they can go in. They can be like ooh, I know that guy and not going to work. Chris: Right, whatever reason, work right, whatever reason. So through, I guess, an online portal that you give them access to. Jen: okay and so it's a process to get to the fine. We meet once a week and I say here's why we chose, here's why we interview these people. What do you think? And a lot of times I'll say you know what? That company doesn't hire well, or they might be an acquisition on the horizon with that company. We can't talk to their people, so we have weekly conversations that get us closer and closer to the best person. And so it's a process, it's a very thorough process that gets us there. But that's 15, 30 minutes a week from our client, that's it. Chris: Okay, Well, they have to be invested, especially in these that are so critical. The positions to fill the client has to be invested. That's right and I like the somewhat. Maybe it's not. It sounds innovative to me that you are creating that opportunity for them to vet and see what's going on whenever they want. Right, but have those weekly check-ins. You know, it sounds like a kind of a white glove service, if you will. Jen: Yeah, and I think a lot of times people are scared, overtained. They're like what if it doesn't? What if you don't find someone? I'm like never happened in the history of 23 years, because we're talking to you and if we're not finding the right people, we're going to pivot, we're going to merge, we're going to figure out why is that happening. Is it the company reputation? Is it our pitch? Is it the way we're describing it? I mean, we're going after the wrong people. We will figure it out. We always fill the positions. Chris: Right Always, because you're invested in it. Right, right, it's not which. Jen: Because it's and it's not a. Here's three resumes, let me know. Chris: Right. Jen: That's not how it works. I got it. Chris: That makes sense. So a little bit, I just want to ask you're obviously, you know, leading this company. What, what would you or how would you describe your leadership style and how would you say that maybe has evolved over time based on your experience? Jen: So I would describe my leadership style as real. It's too real. I like to be pretty open with my employees and I have weekly calls with almost all of them I shouldn't say almost all of them. My fellow managing director we talk almost every day, so I don't have a weekly calls with almost all of them, I shouldn't say almost all of them. My fellow managing director we talk almost every day, so I don't have a weekly call with her. But the others, who I may not speak with, I have weekly calls. We talk about what's happening, what's going well, what is their workload like? I ask them what was the most challenging? Because we all work remote, so that's the other thing. We don't see each other every day right and I'll say what was the most challenging thing and what are you most proud of. And sometimes I had no idea. They're like oh well, I met that candidate at that event. I went to one of my. One of my employees told me that I'm like, I had no idea. Like you went to this networking event and happened to meet the right guy. So you know, just things like that. I try to have the communication very open yeah and they can tell me listen, I'm just not feeling well today or I'm mentally having some issues with home. I'm not going to tell you what it is, but I just need to sit back and I'm like, take the time, whatever you need to do. So I like to think I'm a pretty real manager. Chris: Yeah Well, it sounds like there's a lot of empathy that comes across in those calls, so they feel safe. Yeah, empathy, that comes across in those calls so they feel safe, and I think that's an important thing for a leader to be able to show empathy so that people will be more open and responsive, at whatever level your leadership is in the organization, is an important quality. It's interesting too, I think, that you asked about challenges, because I find it to be helpful to if you're kind of forced to reflect on what was really good about the last week and maybe what was a challenge, because we learn from both. Right, well, that's really good. Anything that you mentioned your stepmother earlier as a mentor, any learning from her that you kind of feel like you're implementing today and kind of carrying on some of the things you learned along the way from her Well, she is my free consultant, so you know, so I call her all the time. Jen: I'm like, okay, more free. Chris: Don't let her listen, she might start charging. Jen: She's fully retired, so she's like no problem. No, I think, being a peer to your clients and telling them no, sometimes you know she's not a yes man and I think I learned that, that you know you've got to push back. When you know, because of your 20 years experience, that something's wrong, you have to call the elephant in the room yeah and you have to say you, you may not skip this recruiting. You know, a lot of times my clients will get very excited about a candidate and they're like, well, can you just come see me tomorrow? And I'm like, no, he cannot because that's too fast for the candidate. They need time to process. You look too eager. I had one client that said it. He said I'm not coming to the first date with a diamond ring. You cannot come to the first date with a diamond ring, you have to let the process happen. But she was always very good about not being a yes man and I've learned that works and it pays off to help your clients be successful. Chris: It's funny that works and it pays off for to help your clients be successful. It's funny that reminds me there's an analogy that applies in all kinds of situations. But it's the cake right. So, just like you were saying, don't be too fast. Yeah, you can have all the right ingredients, mix it up, put it in the oven. If you pull it out too quick, it's going to flop yeah right. So you got to let the process, trust the process, let the process play out, and that applies in so many different aspects of business yeah, and these are humans that we're dealing with. Jen: These are people and they weren't thinking about a job change most likely. Chris: So you've got to let that change management process happen in their head, you know, let them go through that as well so good point to make and we'll repeat it that for what you're doing with these targeted executive searches, most likely the right person was not looking. The ones that are looking there could be one of those red flags there, Not always right, not always, but yeah. So, jen, this has been a fun conversation. Congratulations on your success, thank you. I want to ask you just a few things to wrap up. Yep, so obviously you've been in the search world, or executive search world, for you said 20 plus years. What was your first job? Jen: I remember you asked somebody else this, so I actually worked at a daycare for intellectually disabled kids and adults. Not that fun story that you wanted to hear, but it was fun. I absolutely loved it. I worked every summer. 0:36:20 - Chris: There had to be a lot of life lessons learned in that. Jen: Very challenging. These were kids that were not accepted at other daycares, even for special needs kids. And so I made $4.25 an hour. I was just telling this story because now I'm the chairman of the board for Special Olympics. Chris: Are you really? Jen: I am, and so they asked me my why, and I was like well, I did this for about five years, six years, all through college. I did summer camps and stuff, and so that population has a very soft spot in my heart. Chris: I love how that's come full circle in your life to be able to be doing what you're doing with Special Olympics. As an aside and maybe a plug, isn't Houston hosting the Special Olympics? Jen: next year, next year, I did not tell you that you didn't, but I just know we are right at rice, and is it 2025? Yeah, so that's a big deal, so huge those. Chris: Any listeners in houston, be on the lookout to go support that, what a great cause thank you, appreciate that all right. So my favorite question tex-mex or barbecue? Jen: tex-mex. I'm not a barbecue fan. My husband loves it, but I don't. Chris: Well, you know, you had no problem answering that question. Jen: Some people struggle so I love that In Texas only probably Right. Chris: So another question I get travel ideas from. So if you could do a 30-day sabbatical, where would you go and what would you do? Jen: Maine. Chris: Maine. Jen: We. If you could do a 30-day sabbatical, where would you go and what would you do? Maine, maine. We went to Maine last year. Oh my God, it's beautiful. We're empty nesters and so we're doing two-week working vacations. We just got back from Santa Fe and then we're hoping the next spring we're going to do Maine. Chris: Good for you. Yeah, I like that, kenny. Jen: Bunk or somewhere around there. Chris: Okay Well, you didn't let me finish a sentence, oh sorry, no, so I know you meant it right. Some people have to think about it. Jen: Oh, I knew. Yeah. Well, we're thinking about where we want to go now, so we've got a whole list. Chris: That's a fun process to go through. Yeah, it is so well, jen. Thanks again for coming. Special Guest: Jen Sudduth.

Building Texas Business
Ep071: Crafting Industrial Success with Jason Hayes

Building Texas Business

Play Episode Listen Later May 1, 2024 37:11


In this episode of Building Texas Business, we delve into the remarkable journey of Jason Hayes and his family's business, Top Coat Fabrication. Despite the tumultuous nature of the markets, they managed to emerge as an industrial leader, a testament to their resilience and adaptability. He shares Top Coat's blueprint for navigating change while excelling in oil, gas, and petrochemicals. Intentional culture-building through staff gatherings and challenges instilled trust and community, cornerstones of Top Coat's prosperity. In conclusion, his journey to company president wove together personal learning, workplace achievements, nurturing customer bonds, and proactive growth to create the powerhouse that Top Coat is today. SHOW HIGHLIGHTS Jason Hayes discusses the transformation of Top Coat Fabrication from its sandblasting roots to becoming an influential player in the oil, gas, and petrochemical industries. We explore Jason's early involvement with the family business, starting straight out of high school and eventually becoming president, as he emphasizes the value of hands-on experience. Jason shares how Top Coat navigated the challenges of the oil industry's downturns and how strategic diversification into fabrication opened new opportunities in the petrochemical sector. Jason and I delve into the pivotal moment in 2010 when Jason embraced intentional leadership and continuous learning, transforming his personal and professional outlook. Jason highlights the cultural shift within Top Coat, illustrating how he cultivates a positive work environment through team-building exercises and weekly staff meetings. We discuss the significance of building strong customer relationships, with Jason explaining his personal approach to post-project follow-ups and the search for honest feedback. Jason reflects on the importance of networking and trusted advisors, detailing how open communication within the leadership team is essential for resolving conflicts and fostering growth. We delve into Jason's leadership style, his efforts to understand team members' goals, and his commitment to maintaining a balance between work and family life. Jason explains the importance of hiring for culture fit, noting that while skills are necessary, alignment with the company's ethos is crucial for long-term success. Personal anecdotes are shared, including Jason's love for Tex-Mex, his first job experiences, and his aspirations to travel more with his family. LINKSShow Notes Previous Episodes About BoyarMiller About Top Coat Fabrication GUESTS Jason HayesAbout Jason TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Jason Hayes, president of Top Coat Fabrication. Jason is the second generation of leadership in a family-owned business and tells how he went from hope to learning to be more intentional about growth. Jason I want to welcome you to. Building Texas Business. Thanks for taking time to come on the show. Absolutely Glad to be here. So I think the best place to start is just tell us a little bit about Topcoat. What is the business and what? Jason: does it do? Okay, we're an industrial fabricator, so we fabricate oil and gas and petrochemical equipment, a lot of welding, piping, structural steel, pressure vessels pretty much anything you see when you drive by chemical plants. That's the type of stuff that we fabricate. Chris: Okay, and y'all been in business. Now for what? 40 plus years, 40 plus years. Jason: This is our 44th year. I think it started in 1980. Okay, yes, it started as a sandblasting and painting company, and that's how they got the name Top Coat. Chris: Oh, okay, that makes sense. And so started by your father, I believe. Mom and dad, okay, still 100% owners. Very good, so what was the I guess, the inspiration that had them start Top Coat to begin with? Jason: I think honestly, if I remember the story right, my dad was working for a contractor down in Freeport and I don't remember the whole story but he didn't get treated right so he got let go or whatever happened. So he decided he was going to start his own thing. So he did they and they started this blasting and painting and it just kind of took off. His work ethic combined with everything else and industry in our area, so there was a lot of oil and gas in our area at that time. Mobile had a big shore base down there, so his contacts led to him doing some blasting painting for mobile and then they asked him if he could do some work offshore on their platforms, because they have platforms out there. So that that led to that part of the business and it just kind of started growing a little bit from there so it's interesting. Chris: So many people that I've talked to have you know unique stories, but there's a there, there's some that have a common theme that it's kind of, out of that hardship or disappointment or something, they decide to go on their own and do it their own way. It sounds like that was the case for your dad. Jason: Yeah, absolutely. I don't know exactly what drove it, you know, but yeah, that's what led to it. Chris: Tell us a little bit then you know how did that lead to. You know what the company is today as it relates to you know the focus and the mission and the purpose of the company. How has those early days influenced where you are today, some 44 years later? Jason: Well, let me give you a little bit of history about that. So when he started working offshore for Mobile at some point, he was just doing sandblasting and painting, well, on a project. They had asked him if he had any welders or knew any welders, because they needed some welding done out there. So he said yes, as a matter of fact, I do so. Welders because they needed some welding done out there. So he said, yes, matter of fact, I do so that he started hiring welders and doing construction on the platforms as well. So the offshore oil and gas was our bread and butter for many years, 20 plus years at least. So that even when I came on board in 98, that was our biggest business was oil and gas offshore construction. We'd send crews to the platforms and do maintenance and platform installations, platform removals, kind of everything in between. So that was great. The downside was, you know, when oil and gas is great, it's great, but it's dead, very cyclical too, right Big time. So we had a lot of struggles and I didn't see any other struggles that they saw. My mom and dad went through so many downturns that it was everything they could do to survive, but they did Well. Then, after the BP spill, macondo incident. Then the government really cracked down on offshore industry. So pretty much all the platforms we used to work on started coming out of the water. So all the stuff that we used to do existed no more. So that's when we really had to decide and make a big pivot in the business and say you know what we've been doing? A little bit of fabrication that supports the oil and gas, the offshore let's, let's focus on that. We have the knowledge base, we had some experience in it. Let's let's focus on that. So we literally changed the name to top coat fabrication and we didn't do anything off-site anymore. We focused strictly on fabrication and we would ship our stuff, you know, kind of all over. So it opened another big door to us for the petrochemical industry, because down in our area, you know, we've had Dow Chemical, all these chemical plants right in our back door. But it was almost like we swore we'll never work for the plants, we'll never work in the plants, just because it has that stigma of okay, once you get in, you know your foot in Dow, you know it's, it can be great. But then they people say they own you or you know whatever, and so we never did. Well then now with just the fabrication, that's when we started reaching out to these chemical plants and started really digging in and started doing a lot of work for them. So, and then, another big blessing was not too long after that, we got approached by a big company that had property next to us, had a, a facility, and then they wanted to buy our facility for an expansion. So we were on the water, we were on the intercoastal canal because we had crew boats coming in and out. We did a lot of dock services, so none of that existed anymore. So this was just a huge place that we didn't need, so that we used that to actually buy a piece of property, built a brand new shop where we're at now, a brand new facility. We built it the way we wanted. That was, you know, based on fabrication. So that's where we still are. Chris: Okay, that's great. So you know, I guess, a good lesson in the adage of don't put all your eggs in one basket. Yeah, y'all learned to diversify pretty quickly, right? Yes, yeah, exactly. Jason: So now you know we still do oil and gas work, but it's fabrication. We do a lot of stuff for West Texas oil and gas and we ship our stuff out there. We do a ton for the petrochemical industry right in our back door. We're getting into commercial building fabrication now not the buildings themselves but the structural components that go into them. We're looking into the offshore wind generation, solar, anywhere. We can do our fabrication in different industries for that exact reason to diversify. Chris: It's a good lesson right for people out there that you know. Start a business, maybe with that one big customer, that focus. It can be good when times are good, but you got to think about you know what. If this goes away, what else do we have? That is a compliment to it. It's a big liability yeah, if you don't, yeah, it ain't no different than what you were saying if, if you got too far in with someone like Dow, that'd be no different than you know, kind of that singular focus. So let's talk a little bit. How did you get involved and kind of come up through the business? Because you're now the president, I definitely want to talk a little bit once I hear kind of the back story about at some point there was a transition in leadership, so I definitely want to dive into that. Sure. Jason: So right out of high school I worked for Topcoat for the summer between high school and college and I went off to college that next semester. I went to Texas A&M. I was in mechanical engineering program. I wasn't ready for college, so I was there for two semesters and then they suggested that I leave. So I left. After that I came home and started working in 98 at some point and started at the bottom, started as a helper. The summer before college I was just a weed eater. We had this huge facility on the shore basin. I literally just weeded it all summer pretty much. So then when I came back I was a helper, just doing whatever you know in the shop around the facility. At one point we also made a realization or my dad did, because I had nothing to do with management then, but he made a realization that we needed somebody that would take care of the safety. We always had good safety records and good practices, but we needed somebody that could take charge of the program. Right? So I got volunteered to be the safety man. There you go. So I did that for a few years. They call that voluntold. Chris: Yes. Jason: I was being polite, you're exactly right. So I did that for a couple years and then I don't remember how the transition it was kind of a slow transition into just kind of taking more of the reins of the management. So at some point I can't tell you when, but he named me as the general manager. Okay, so he was the president, I was the general manager and then so I had, you know, a couple of people that kind of reported directly to me and then all the work happened underneath them. So that, and that was the case for a pretty good while. And I mean I'll be brutally honest that I was not into leadership back then. I wanted to be the top dog, right, I wanted to be the guy in charge, but leadership as I understand it now was not in my repertoire. Chris: Yeah, well, I mean, it's easy to want to be the guy, yeah, but there's a lot that goes with it that not everyone understands. Right To do it, the right way To do it right? Yeah, I knew nothing about leading people. Well, what have you done to try to help educate yourself, get some experience to become a better leader? Jason: I think it started with a desire wanting to be better. When you hit that point in 2010, I hit a really low point in my life. That's when I turned my life over to God and became a Christian. It just really changed the way I was thinking. So that kind of led me into leading my family and at some point, you know, I started reading books, I started learning more, listening to podcasts, and that just literally flowed into work. Okay, there's a realization. Okay, now I need to be a better leader at work. And what does that look like? So I started going to conferences, reading books, listening, just consuming as much content as I could, yeah, and then just slowly started putting things into practice at work, which was awkward, you know, at times when you try to bring some new thought processes and stuff to the team where it's never been before. You know, this is the way we've always done it type of mentality, and I was the same way. Chris: So it's a struggle, it's a beautiful story. It's an easy trap to fall into, right For people. Well, we were just doing it this way, because we've always done it that way. That is a eventually that becomes a death sentence for a company because no one will. Eventually that becomes a death sentence for a company because no one will innovate or think differently. And so I definitely applaud you for coming to that point. And you know, and as you know, now it's a, it's an everyday. You know you got to keep learning and keep growing, yeah for sure. So let's go back to the kind of the transition, because at some point you become president I don't know what your dad's title is now, but you kind of take over the reins. Let's talk about how did that decision kind of come about? And then how did y'all manage through the transition where you became kind of the. Jason: It was gradually happening already, so my dad is still the CEO now and he was like saying he was the president back then and it was just I, I probably just. It was a combination of me taking more and taking more initiative and him being able to release more right. So there wasn't anything set like, okay, I'm going to give you more, I need you to take more. Chris: It was just kind of I started pulling and he started giving well the given parts, probably the hardest of those two, oh, I'm sure'm sure, allowing himself to let go and trust. How did y'all manage the communication within the company? Did you just let it happen by kind of osmosis? The actual? Jason: leadership just happened. So I've worked really closely with most of my leadership team for gosh I guess 16 or 17 years now several of them and so it just happened. We started really clicking together, growing. A lot of us have the same kind of mentality we want to get better personally, we want to get better in the business. We're, all you know, looking at the big picture type of thing. But the actual transition from me to GM to president, I didn't even know about it. So we have a staff meeting every Monday with the entire company. We have breakfast and I typically show some type of motivational video, tell the whole staff a few things that might be going on within the business. And in one of those meetings my mom shows up. And my mom, she just doesn't. She's never been involved in the business since I've been there. She's part owner but never been involved in it, and so she's. So you know, I said hi to her before I'm going to the meeting and I didn't think anything about it. Well, during that meeting my dad gets up and says okay, I want to announce that jason is now the president of the business and I'm he. I don't think he said this, but he was stepping up to the ceo. So it was like a we both kind of moved up okay. But he mentioned, you know, that he just that he just wanted to. He knew I was passionate about it, I was passionate about the business, passionate about the people, and he knew I wanted to take it to new places. So he named me president. So nobody knew, not me, not anybody else, it just happened one day oh, we don't. So it was a cool honor and you know it didn't change much. It didn't change much because the structure was already there. Yeah, it was just a matter of a title really then. But I think I started taking it even more serious then. Chris: Makes sense. So I guess we talk about as it exists today. Then you're still working with your dad, but more the responsibility for the day-to-day falls on you, Right? Yes, definitely. Jason: He's there almost every day. I mean he's there every day that he's around. If he's not, you know, gone out of town or something, he's there. He's typically in his shorts and flip flops or you know shorts and shoes and fishing shirt. But he is there, which is great to have him. I'm honored to be able to work with him. He still lets me pretty much do what I want. I mean trusts me. Chris: So one of the things I noticed in getting ready to meet you today was on your website, the company's website. You're very big on your people and your culture, so let's talk a little bit about how you would describe the culture at Top Coat and what are some of the things you think you've done to help kind of build to get to that type of culture. Jason: The culture is amazing at Top Coat and that's my passion. My passion is the culture. That's one of the biggest things I think spend most time thinking about. One of the first things I did was start having a just a like a weekly meeting with my, the leadership team. We started doing that, I would bet, six or eight years ago, Just a weekly meeting. We didn't really have any structure, I just wanted us to meet, put our heads together and talk about things going on. So that was the first thing I started. And then, after that, we started the full staff meetings. After we moved to our new place, we actually had a place we could meet, but we started having our full staff meetings once a week too, and we kind of used that as a transition. I don't remember how it came about, but we started doing a type of physical challenge where every Monday after our staff meeting, we'd have some kind of challenge where it would be, we'd do push-ups, we'd do dead hangs. We've done just about everything you could imagine. Some of them are physical, some of them are not, but we do that and it's we literally make the people pay. If you want to play five bucks, Everybody puts in five bucks and wants to do it. Winner takes all, unless it's a team sport. You know, we've done tug of war, We've done dodgeball tournaments and little things like that. It just creates like maybe 15, 20 minutes of fun and there's trash talking from all the you know, the audience and everything else. But it's that's just a tiny layer that just it just adds a little bit of fun into the workday. It makes it a little more human, right? Yes, and that's one of the biggest things my dad fought me on at the very beginning was doing these. You know his mentality was you know, think about what that's costing the company. You know you have this entire crew shut down for 30 minutes additional. What do you think that's costing us? And I wrapped my head around it and I thought about it and I understood. But at the same time I tried to make him understand. I think it's way more valuable to spend that time and spend that money on this time, because I think overall it's going to be well worth it. Chris: Yeah, kudos to you for that, because it's easy to look at the black and white and ensure there's a cost to that. But I think you're right when you evaluate it holistically. If you're creating engagement and fostering that environment where everyone kind of knows each other better and feels more like a team, I think the returns are exponential. Right, you can't necessarily put dollars on it, but you probably can't look at lack of turnover, maybe better productivity once they're back at work. So I think to your point it was it's a wise investment to making your people yeah, I agree, and I mean to this day. Jason: If you look on our LinkedIn page or Facebook, when I put up videos of the challenge that we do, that's even on LinkedIn. Those are the posts that get so many comments, so many shares. It's people connect with it and so many people say, man, I wish we did that at our place, or I wish my company would do stuff like that. And it's like it's those little things that people I don't know if they don't think about them or they just don't think it's worth it, but for us it's been kind of a game changer. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Chris: So one of the things you mentioned kind of as the company's evolved is, you know this diversification into fabrication and doing other lines of business. What are some of the things you do as the president of the company to kind of create those relationships with the new customers, new vendors, and maintain those strong relationships? Jason: We have a sales team that does a lot of the actual interaction. But most of our customers I'll know their name, I'll know their contact information and I'm the one that reaches out to them personally. For if we're going to do it, then let's say we sponsor a lot of golf tournaments, you know skeet shooting teams for fundraisers and that sort of thing, and I'm the one that normally reaches out to the people and ask them if they want to you know, participate with us. We had an industry night a couple of weeks ago and I call all the what the customers that I know and have the contact information. I'm the one that calls them and I also do customer follow-ups. With every project that we do that ships out, I do a customer follow-up call with everyone. I call them personally, just as me, thanking them, number one for their business and then number two just seeing if there's anything we can do to improve that I love. Chris: And I'll tell you we tried here and we're not consistent with it. Love, and I'll tell you we tried here and we were not consistent with it, but that kind of what I would call customer survey, satisfaction survey. So you've got it baked into your routine to do it on every order. Jason: That's amazing, I learned that from Mattress Mac. Okay, we bought some furniture from him and I think twice now, and every time sometime afterwards he calls personally and just thanks us for his business. Oh we darn. Chris: Yeah, Well, I think it's a great lesson for people you know that are listening to this and have their own business. That personal touch and that follow-up can go so far in creating that customer loyalty Right. So that's amazing. I guess you report back to your people on what you learned from that so that's amazing. Jason: I guess you report back to your people what you learned from that. Yeah, so we have a Teams, our Teams folder that we open up every day or every week in our leadership meeting and I keep the spreadsheets in there so we review it every week. Any ones that I call, you know, I'll be honest, I'll let them build up, because our project coordinator sends me. Every time we ship one out, he sends me the contact, you know, until I know what the project was, who the contact name is and so forth. And I will, all honesty, I let them build up because sometimes I'll procrastinate doing it, you know, because I'm like, oh, it's one more thing I gotta do, right, right. But then after I do, let's say, just the day before yesterday I called six, six clients and every time I do it I'm so glad that I did because I feel better, I'm sure you know, I feel better because I let them know, number one I that I them. Number two we're trying to ask them if there's anything that we can do to improve and be better. We want to know and I don't think. I think it's so uncommon that people don't people say they want feedback. But I think they want the five-star rating Right. They don't want the honesty, they just want okay, how many five stars can we get? Chris: Yeah, they want the high google rating, right right which it feels good to get that. Jason: But we're not going to get any better if, especially if there's a client that's not happy about something, some most of them aren't going to come and just out and tell us, hey, so and so went wrong. But if I ask, is there anything we could do to better, that's when they're going to say, as a matter of fact, there is. Yeah, I haven't got that yet, but we will sure you will. I mean, that's the point, that's what I want. Chris: I think that's great. You know, sitting here thinking I need to do more of that. You know that, as I told you before we came on, I learned from all the guests and I've at least learned that from you today. I think that's wise advice. Jason: And it has to come from the top. If my project coordinator is talking to the clients, you know 24 seven7. It's not going to be the same Right. Chris: That's right. So let's talk a little bit. I mean, it's been up and down in the economy the last few years. What have you experienced at Top Coat kind of as it relates to the last four or five years and kind of the you know turbulent environment, and what are some of the things you've done to kind of manage through? Jason: that We've stayed pretty steady the last several years. Now. Last year ended up being our best year in history revenue-wise. Revenue and profit-wise. Several stars aligned for that, some great projects from some longtime customers. But the few years before that we were okay, we were steady, right, and that's. I think that's one thing that Vistage taught me is to be proactive. I'd sit back for years and say, man, I hope this company grows, I hope this company grows. And then, with you know, the Vistage group and just everything that I've been involved in so far with that has just really taught me that you have to be intentional, you have to, we have to make it happen. So we going to grow, how are we going to make this happen? So that's where the big focus is now. I mean we since I've been there, you know, 26 years we've had some horrible years. I mean when we first take great story, when we first built our new facility beautiful shop, beautiful, everything we had no work, zero. We got down, I believe seven people in the company completely, and I remember just like it was. Yesterday we're having my staff meeting, so it's a small group, but I'm kind of telling them look, we literally had 75 grand in the bank and we said this is all the money we had left. We had all this money from selling our property, but we'd spent on this new facility and we had some money, but it had just dwindled down to nothing because the work had died, and so that was in 16, I think 2016, 2017. Okay, so I'm telling the whole team look, guys, I don't know what we're going to do. We're going to figure this out, but I really don't know what I do, what we're going to do. And then, literally during that meeting, our phone, our office phone, rang. There was nobody in the office, so I turned around and I answered the phone. Quick, five-minute conversation. It was a guy driving by our facility. He was an inspector for Chevron, phillips and Sweeney and he said I'm leaving the shop and I'm the inspector and I can't stand Something along the lines of I can't stand working with these guys. They keep lying to me, I need to find another shop and I've just been driving by your place. I want to see if I can come talk to you about doing some fabrication work for us. That led to us doing $2 million to $3 million a year for them almost every year since. Oh, wow, and so that was. It was like that was. Since I've been in the business, that was the lowest point that I felt, because I was really feeling that pressure of what am I going to do? What am I going to do? And there was no strategy to this. It was like it was a God moment of having him drive by all this stuff at the same time by having a new facility help? yes, absolutely if we had not been there, he never would have driven by our place, because where we were before nobody drove by right, so nobody knew so so that's it. Chris: I mean well, that's an incredible deal. So 2016 is seven employees, $75,000 in the bank. How did you end 2023? How many employees and what was your revenue? Jason: 2023,. We had $22 million in revenue and for most of the year we were probably around close to 100 employees. Wow. Chris: That's an amazing turnaround, congratulations. Appreciate it yeah, congratulations, appreciate it. So, yeah, I like what you said earlier, when it was you were hoping to grow and you've learned to go think about how to grow and be intentional, because that otherwise you hear there's another cliche hope's not a strategy, right? So sounds like you mentioned vistage, so you're a vistage member, that sounds like, and other vistage members, including myself. I know how valuable it can be to grow as a leader, but then how you think about your business. Jason: Sure, absolutely yeah. And, like I was telling you earlier, the network that you meet the people, the different people in every area of business yourself for legal, whether it's taxes, insurance, whatever has to do with business. There's people that I'm connected with, literally one-on-one, that I can call, I can sit down with. Most of them will just meet me for lunch. If I need to bounce an idea off of them. That's the biggest thing. Chris: Something I tell people that have businesses all the time is you've got to build a solid network of trusted advisors that you can reach out to, whether it's a banker, insurance person, accountant, lawyer, another entrepreneur or business owner right, that you can just reach out to, because even when you're having a bad day and maybe they can you know, hey, I've been there before, so you'll feel, because a lot of times you feel alone. What are some of the things I guess, as you've evolved as a leader that you've found to kind of whether it's a particular book or conference you go to that have really been valuable to you to kind of grow as a leader? Jason: I can't think of a specific book, but I think, the mentality of giving your people the tools that they need to do what they have inside their head. You know, I think so many times I've learned that even our leadership team at work they have so many ideas and great ways to do different things, but they don't always let them out. So I think creating number one, creating a safe place, like our leadership meetings that we have every Wednesday morning, that's a safe place. Whether it's a conflict that we have, whether it's an issue that they've been holding in, whatever it may be, that is the place where we draw those things out and we squash them or whatever we need to do. To me, that's probably been the biggest thing. Chris: It's a hard thing to do, but you're so right that safe place where people feel like they can share without being judged or criticized is unique, I think, but so important. Jason: And it's so simple, but we're all humans, especially at work. Yeah, and it's so simple, but we're all humans, especially at work. I'm sure we all swallow a whole lot more at work than we do anywhere else, because maybe we're afraid of our job, we're afraid of whatever. But I think it's been really good for us. We've solved so many issues just because we've created the structure for it. Chris: So one of the things I like to ask folks that come on is can you tell us a setback you've encountered in your professional life? Maybe it's your personal life, but something that sets you back. But you learned so much and you grew from it that you're better off because of it today. Man. Jason: I know there's plenty of them. Chris: That's what most people say. Jason: Yeah, there's plenty of them. Chris: I'm just trying to think what would come to mind, maybe something right after you kind of took over being either general manager or president at Topco, maybe something in those early days. Jason: I think one of the real struggles is it's not a moment but learning the business finances. You know I struggle a lot with okay, we need this piece of equipment to get better, we should just go buy it. Well, my dad has the finances and the history of the accounting behind it and I've struggled because he and I butted heads quite a bit on things I think would be a good investment and things he thinks wouldn't be a good investment. So that's become something we both had to work on. Really, I mean, I lean on him a lot for his knowledge and different things when we're purchasing, making big purchases or expanding our facility, whatever we're doing. But I think having those conversations was probably some of the toughest things we've had to do. Gotcha, and it's just like anything else, it's just like with the leadership team. It's creating a space that we can have those. I mean, he and I have worked together for literally 26 years, so we work well together and we communicate fine together. But it's me getting up the courage to ask those questions too. That's been a struggle. Chris: So what I hear you saying in that and I think it's a natural struggle for people in leadership because, like you said, from day one, you wanted to be the top dog. Sure, it's having the humility to ask your father or mentor someone that you don't know or don't know enough, right. Sure, so that takes a lot of humility, yeah, for you, and I think it's also a blessing that you have the courage to use it. Jason: Is you have a built-in, you know, advisor, mentor, right there, you know, letting you grow and being there to kind of guide you along the way yeah, and I don't utilize them as much as I should, but every time we have a conversation like this, it reminds me how much I should I, how much I do and should you know, put more value in that another thing that you mentioned was mentioned was y'all can butt heads. Chris: So what have y'all done? Because I guarantee I've had other people that have done what you've done on the show, that have taken over a family business. I guarantee there's people who are going to listen to this, that are doing that or see that in their future when you get to that place of how will you and your dad communicate on big issues. If you all kind of got it agreed upon, let's do this in private and really hash it out and not let other people see what's going on. I mean, is that something that's one that you all kind of have a practice of doing? If so, how does that work? Jason: Yeah, definitely. I mean, he's in our leadership meeting. He sits in our leadership meetings pretty much every week. He's pretty quiet, you know, off to the side, he's just mainly listening, but there's plenty of times where I'll you know if I have an issue with something he said, or vice versa. He'll either come to my office and shut the. I always, I constantly, have to remind myself that this is his baby. This whole company is. I've had a lot to do with the growth and where we're at in you know the current state, but at the end of the day, this is his and he. He created it and I'm just a part of it. Yeah, so I have to constantly remind myself of that. And then he I mean, he tells me multiple times that you know I'm doing a good job of running it. So he's constantly having to remind himself that he gave me the authority and the power to run it. But it's definitely a team effort. Chris: I think it would have to be. The other thing that comes to mind again, kind of unique to family-owned business and second generation of leadership of that family-owned business is how well do you and your dad do at leaving the issues at the office versus trickling over to the Thanksgiving table or anything like that? Jason: Yeah, he's probably better at that than I am, but even I don't know. From the time I was born, he and I have had an absolutely solid relationship always. He was gone a lot when I was growing up for many years because he was doing a lot of offshore work. So he was gone a lot when I was growing up for many years because he was doing a lot of offshore work. So he was gone a lot, but we always had just a top-notch relationship. Yeah, so I think without that it would have been a hundred times worse. Yeah, but I don't think I can't remember a single time where any tension between me and him ever stayed very long period, but certainly much less made it out the door. Yeah, yeah, we could have this tough discussion and then say, all right, let's go get some lunch yeah, you know that's good here and you know. Chris: The other thing is, I think when you're an entrepreneur and you own this business, you live and breathe it, so you you're going to be thinking about it when you're at home and those conversations could come up versus, just as natural, when they happen at the office right it. Jason: It always has. Yeah, I mean, whether we're at my house, his house, it's typically something with work is going to come up and we're going to talk about it. Chris: It just happens. So let me ask you this just about your own personal leadership style. How would you describe your leadership style today? How do you think it's evolved or developed over the last several years? Jason: I would say my style is to. This is just off the cuff, but I would say my style is to help anybody that I'm leading, make sure they have the tools to do what they need to do. You know I'm really passionate about I haven't been extremely proactive about mentoring all of my leadership team, but I want to know their goals, not just professionally but personally too, and I think a lot about like, what can I do to help them succeed? If the person is going after what they were put on this earth to do and I can be a part of that and help guide them to that, I think that is the ultimate definition of success when it comes to leadership. Yeah, so that's kind of my passion. I haven't been as good at the mentoring side and maybe the personal side. We talk about business roles and stuff quite a bit but I really want to be more involved with their goals in life overall. Sure, Not involved in them, but what can I do to help? How can I help? Chris: Well, at least understand them, so you know how you can be a resource. Jason: Yeah, and again, I want all my resources to be their resources too. Chris: So that brings up kind of a good subject. When you think about that, and maybe I'm going to ask you about yourself, what do you do to try to maintain some type of balance in your life right between work and family, knowing that you're always thinking about the business, right? Jason: I've done pretty good with that for the most part. I've never been a workaholic, just not me. I've been a huge family guy always. I have four kids, ages 15 down to 7, so we stay busy, sounds like it, but that's another. Passion of mine, too is just the kids and the family. I've never had a struggle with staying at work when I should be at home. Chris: Now having the leadership team that I have is what makes that possible. I was going to say you got to have some tools in place to help facilitate that. So hiring good leaders to work with you, Anything that you look for, or when you do interview or interview someone for a leadership position and or think about promoting them to one. Jason: Culture is the number one thing. That's what I always start with. Will this person be a fit for our culture? And that's typically if we're going to hire not just leadership team, but maybe even the level right. You know, underneath that, most of the time I'll. I want to know the person. I want to have a one-on-meeting. You know, I've met several people for coffee that we were interviewing for a project manager position, just because I want to just get to know the person. The resume says what they've done. The resume says everything that they've accomplished. But I want to know are they going to fit with us? And if they don't, then that's an immediate no. So I think that hiring for the culture is the number one thing. Chris: So many people, including myself, believe that right. Lots of people have skills that could fit with what you do, but are they a type of person that fits with who you are and who you want your people to be? Right, and I believe the people that are culture fit. Jason: You never know where they might end up, even with the company. We've hired a couple of people that were a great fit for us and they were doing one thing. Well then, as soon as we get, they get in and they're a great fit, and then we start seeing all the stuff that they're capable of. Then they start getting snagged by this person and next thing you know they're just keep moving up because everybody's starting to see. Chris: You know they're capable of yeah, but it started with the fit right. That's great. Well, jason, I love the story and the family transition. I think it's a beautiful story when they're done right. They're not always are. I want to always wrap up on a few off-topic personal things. Okay, what was your first job? Was it something at Top Coat or something other than that? Jason: Yeah, it was Top Coat, the one right after high school, so weed eating, yeah, it was great. Chris: So great. All right, what's your preference? Tex-mex or barbecue Tex-Mex? I could eat it every day. I mean, I didn't even finish the sentence. Jason: I know you jumped on that one, I know. Chris: No question. Jason: So I always ask people if you could take a sabbat Ooh 30 days, oh man, for at least a week I'd take my wife and we'd just sit on a beach somewhere. Yeah, without a doubt. Yeah, and then I would just do some traveling, a lot of traveling. I want to do a lot more traveling. The only place out of the states I've been is to Mexico, for me and my wife on our honeymoon. Okay, so I've got so many places I want to see, but I just don't make the time or make the plans to do it. Chris: Well with the four kids as you described, you got your hands full right. Yeah, well again. Jason, thanks for taking the time to come on the show. Really enjoyed getting to get to know you better and meet you. Jason: I appreciate the opportunity man. Special Guest: Jason Hayes.

The End of Tourism
S5 #5 | Fortress Conservation in the Congo w/ Martin Lena & Linda Poppe (Survival International)

The End of Tourism

Play Episode Listen Later Apr 26, 2024 50:51


On this episode, my guests are Martin Lena and Linda Poppe of Survival International. They join me to discuss “fortress conservation” in the Congo, the issues facing Kahuzi-Biega National Park, and the recent victories of Survival International there. Linda is a political scientist and director of the Berlin office of Survival International, the global movement for Indigenous peoples' rights. She is also part of Survival's campaign to Decolonize Conservation, which supports Indigenous peoples, who continue to suffer land theft and human rights abuses in the name of conservation.Martin is an advocacy officer for Survival International. He primarily works on Survival's campaign to Decolonize Conservation and has collected testimonies directly from communities facing violations of their rights in the name of conservation. Show Notes:What Conservation Looks like in the Democratic Republic of the CongoThe Evictions of the BatwaSafari Tourism in DRC ConflictThe Militarization of Conservation in Kahuzi-Biega National ParkLand Guards vs Land GuardiansOrganizing Victory! Scrapping French Involvement in Kahuze-BiegaThe German Government Continues to Fund the ParkSolidarity: How to Respond / Act in ConcertHomework:Survival International: French government scraps funding plan for Kahuzi-Biega National Park, citing human rights concernsSurvival International Decolonize Conservation CampaignBalancing Act: The Imperative of Social and Ecological Justice in Kahuzi-BiegaTranscript:Chris: [00:00:00] Welcome to the End of Tourism Podcast, Martin and Linda. I'd love it if I could start by asking you two to explain to our listeners where you two find yourselves today and what the world looks like there for you. Linda: Well, hi everyone. My name is Linda. I work for Survival International and I'm in Berlin. I'm at home, actually, and I look forward to talking to you and chatting with you.It's dark outside already, but, well, that's, I guess, the time of the year. Martin: And I'm based in Paris, also at home, but I work at Survival's French office. And how does the world feel right now? It feels a bit too warm for October, but other than that. Chris: Well, thank you both for for joining me today. I'd like to begin by reminiscing on the season three interview that I had with your colleague Fiore Longo, entitled "Decolonizing Conservation in Africa and Beyond."And in that interview, we discussed the history [00:01:00] of conservation as colonization in the context of Tanzania and the national parks that were built there and the indigenous lands that were stolen in order to do so. I'm curious if you two could offer a bit of background for our listeners in terms of the history of conservation in the Democratic Republic of the Congo and especially in regards to the Batwa people and the Kahuzi Biega National Park.Linda: We were quite you know, astonished of the colonial history that, we find in the park where we're here to discuss today. Well, the Congo, obviously, you know, was a colony. And I think in this context, we also need to look at the conservation that is happening in the DRC today.And a lot of the things that you have discussed with our colleague, feel very true for the DRC as well. And the, the park that we're going to look at today, I think it's probably [00:02:00] also the best example to start to explain a little bit what conservation looks like in DRC. It's an older park, so it was created a longer time ago, and it was always regarded as something that is there to protect precious nature for people to look at and not for people to go and live in.And this is exactly what the problem is today, which we see continues, that the people that used to live on this land are being pushed outside violently, separated from the land which they call home, which is everything for them, the supermarket, the church, the school, just in the name of conserving supposed nature.And unfortunately, this is something that we see all over the DRC and different protected areas that exist there, that we still follow this colonial idea of mostly European [00:03:00] conservationists in history and also currently that claim that they're protecting nature, often in tandem with international conservation NGOs.In the park we look at today, it's the Wildlife Conservation Society, and they're, yeah, trying to get rid of the original inhabitants that have guarded these spaces for such a long time. Martin: To build on that, in our campaign to decolonize conservation and survival, we often say that fortress conservation has deep colonial roots and you can definitely see that with the the actual history of the of Kahuzi Biega National Park because it started as a reserve that was created by the Belgian colonial government in 1937 and It was transformed into a national park after independence.So in the 70s, but it was still designated as such following the lobbying of a Belgian conservationist. So it's really the continuation the Western and the European will to keep controlling the, [00:04:00] the independent territories. And that in Africa oftentimes was done through conservation.Linda: And it also has this idea of, I think a lot of the conservation projects that we see, Martin just said it, there was also this post independence push on creating national parks, which was obviously related to the idea that Europeans might lose hold of control in certain areas, so they were pushing for the creation of national parks like the Kahuzi Biega National Park.And that is the setting that we're talking about, basically, something that has very colonial roots and has been pushed into the post colonial era, but in a way which is actually very colonial. Chris: Thank you both for that brief, brief history and introduction into what we'll be speaking about today, Linda, you mentioned that so many of the circumstances around the creation of these national parks includes the exclusion and [00:05:00] displacement of the original inhabitants.And in this case, among others, this includes the Batwa people. And so I'd like to just give our listeners a little bit of a context for what's happened to the Batwa in the Democratic Republic of the Congo. And so the statistics tell us that "over 90 percent of the 87, 000 indigenous Batwa people in the park have lost legal access to their native territory, turned into conservation areas, and who are desperately poor," according to a 2009 United Nations report.Now, in a recent Reuters article, it's written that, quote, "Local human rights and environmental experts say that the authorities failure to fulfill promises to the Batwa has undermined efforts to protect the forest and its endangered species, including some of the last populations of eastern lowland gorilla.Some of the Batwa around the [00:06:00] park participate in the illegal poaching, mining, and logging that are destroying the gorilla's globally significant habitat. As a result, the conservation outlook for the park is critical, according to the International Union for Conservation of Nature." The article goes further and says that "the Batwa have no choice because they are poverty stricken, according to Josue Aruna, president of the province's environmental civil society group, who does community outreach for the Batwa." It seems in this way that the land rights and traditional lifestyles of the Batwa are intimately tied to the health and survival of the ecosystems within the national park, which they've been excluded from, and that their poverty is a consequence of their displacement. Do you think that the issue is as simple as that? Martin: It's always interesting to read these reports from the conservationists, whether it's the IUCN or the NGOs, because the problem is always "the local people. So they are poor and they [00:07:00] have no choice. They participate in poaching." and it's always their fault.Like you were saying, if they end up being poor it's because they were evicted from the land. And as Linda was saying earlier, the forest and the land more generally is everything to them or was everything to them. So it's not only the place where they get food, it's also the whole basis of their identity and their way of life.So once they lose that, they end up in our world, capitalist system, but at the lowest possible level. So, that's why they end up in poverty. But it's a problem that was created by the conservationists themselves. And even when you read Their discourse or their position about trying to improve the situation for the Batwa, it's always about generating revenue ,lifting them out of poverty, developing alternative livelihoods. But what we are campaigning for is not some alternative to the loss of their rights. It's Their land rights themselves. And to go to your other question [00:08:00] about the fact that the loss of their land rights has led to a degrading in the health of the ecosystem.I think, yes, for sure. That has been the case, and it's what we're seeing all around the world in these protected areas that are supposed to protect nature. But actually, once you evict the best conservationists and the people that were taking care of the land for decades, then there is room for all kinds of exploitation whether it be mass tourism or luxury safaris or even mining and logging concessions.So it's not a coincidence if 80 percent of the biodiversity on the planet is located in indigenous territories. It's because they have lived in the land. It's not wild nature. They have lived there for generations. They have protected it and they have shaped it through their practices. So, to us, the best way to protect this ecosystem is to ensure that their land rights are respected and blaming them for poaching or putting that on the fact that they are poor, it's just [00:09:00] dishonest and ignoring the basis of the problem.Linda: Yeah. I agree. And when you just read out these sentences, I noted down like the way it was formulated, as a result, the park is threatened. It's again, just focusing on the local people as being the problem. Like the protected areas, they are to protect an area from the local people, which I think becomes very clear in the way you explained it. And also, like, Martin, I'm quite struck by the idea that they talk about poor people, but ignoring that, you know, their actions that of the Batwa have also caused this poverty. So it's, in a way, you know, first you make people poor and then you kind of insult them almost for being poor and then, you know, acting accordingly.I think that is quite, you know, ignoring what has happened. And I think it's the same with [00:10:00] the general model of conservation. Like the sentences you read, I mean, there is some sympathy in it, you know, it sounds like, "oh, these poor people," you know, "in a way we regret what has happened and that they were evicted."But it's like "those poor people," they don't really look at, you know, why were they evicted and what are the consequences for our kind of conservation today? Like the consequence could be that the Batwa can return to their land because they are the best guardians and because it would give them a base to, to live, not in poverty.So that consequence, they don't see it's because they ignore all the things that have caused the supposed poverty and have caused this kind of conservation that we see. So, don't think about what we've done in the past, we'll just go on, but that is a problem because they don't learn any lessons from what has happened and that land rights should be so important.Chris: Yeah, I think that it definitely points towards this notion that I think a lot of people are becoming apt to in our [00:11:00] times in these days, which is the general kind of approach to the dilemmas in these contexts are to look at the symptoms of the dilemma and not the causes.And in the context of the eviction and exile, displacement of the Batwa people, one of the articles mentions that "one of the consequences of the induced poverty includes the endangering and further endangering of the eastern lowland gorilla." And I mention this because in my research leading up to this interview, this conversation, I looked into the tourism offerings in Kahuzi Biega, in the National Park, and I found the following.I'm just gonna read off a list of what I did find. " Gorilla safaris, or trekking. Chimpanzee Rehabilitation Center tours. Camping safaris. Cultural tours. Bird [00:12:00] watching. Hiking. Climbing and boat cruises." And so my next question is this. To what extent does the safari tourism in the national park play a part in this conflict?Linda: Oh, that's a super interesting question. I mean, it obviously depends on the specific park that you look at. But I think I would say in almost any national park that we look at in Survival, there is some kind of idea that this park needs to have tourists. Tourists need to come and go and see the beauty of nature, ideally Western tourists, so that they become involved in conservation and donate money, and also in a way that tourism would be a way to pay for services that are related to maintaining the park.So it's something that usually always pops up. It's kind of, it's like twins a little bit. And, you know, I, I work on, on [00:13:00] mostly German politics and how they relate to this conservation. And it's something that you can't really separate where you read about conservation projects that the German government funds, you will always also read about tourism.So they're very interlinked. In some parks, you know, there isn't a lot of tourism because the situation is not very attractive to western tourists, but the idea is always there. And then the extent to which tourism actually happens obviously differs and then has different effects. In some parks that we work on, There's a lot of tourism, there's a lot of creation of infrastructure for tourists, hotels, for roads, for tourist vehicles to go places.Then it obviously has a much stronger impact on the area and also on the people that live there. If there are less tourists, then the actual effect of tourism is, of course, a little bit less than it might sound in these proposals to have tourists there at all.Chris: In the [00:14:00] context of conflict zones, which from what I understand this particular park in the Congo is a conflict zone, or at least parts of it, that tourism can act as a kind of barrier between local populations or local ecologies and the consequences of those conflict zones, right? But it doesn't necessarily stop the conflict. It just turns it underground, it turns a kind of blind eye to it, waiting, in most instances that I know of, until the organized crime in the area ends up getting, you know, their hands into the economy of, of the tourism itself.Martin: Yeah, I mean, I agree with Linda that it's always there and it's always under the discourse and it's never only about conservation, there's always tourism. And often the national parks are created for this purpose. If you read the UNESCO definition or the IUCN definition of what a national park is, it says it's also for [00:15:00] recreation.So these places are built for tourists. against the locals. So, yeah, it's always there and it's even in the definition.Linda: So yeah, when you said tourism is a barrier in some cases tourism can amplify the problems that are there because there is more eviction or there's more interest of, for example, governments to evict people, to create this great picture of nature, which is so attractive to tourists.So I think, I would find it as something that can really worsen the situation. I think from what I've seen, you know. We sometimes talk about sustainable tourism or respectful tourism, but in the terms of conservation projects, my impression really is that it's been harmful.And the indigenous populations that work in tourism, which is one of the things that funders of conservation projects often [00:16:00] say, that they can find jobs in tourism. A lot of these jobs are not very good. And I would argue that a lot of times people need to take these jobs because they have lost the choice to not take a job and live from the forest.Chris: Yeah, it's an interesting thing to wonder about in the little research that I did around what's happening in this particular park in the Congo, that there are rebel groups. It is a conflict zone, and yet there are these tourism offerings, right? And that surely, the champions of the National Park and conservation and in many areas would say, "well, you know, the more, the more tourism we can get in here the more we can undermine at least the economic causes if not the political ones that are contributing to the violence," when in fact, from what I can understand from Survival's work, that this is just deepens the causes that produced that conflict and that exile in the first place.Linda: Yeah. And I think there's also [00:17:00] perception of injustice, which we shouldn't underestimate. I mean, if you're an indigenous person that has been violently evicted or whose family has been violently evicted from a certain area, and then you see, Western tourists mostly, which are rich, you know, pay a lot of money for these trips, are allowed to go in and use that area in a way. I think that also creates, yeah, a sense of injustice, which is also, yeah, it's quite, quite sad. Chris: Mm hmm. Definitely. And then that's certainly what we see in over touristed places around the world and in places that are just starting to become over touristed, this kind of deep resentment amongst locals for the inequalities, the growing inequalities and yeah, as well, the injustices that these industries bring.And so on that point of conflict zones, especially in and around Kahuzi Biega. I wanted to ask you both a question around the militarization of conservation. So, [00:18:00] some people believe that militarized park police, which is what exists in this park, are a necessary evil.Officially, at least, "the guards protect the park from armed militias or rebel groups in the area, ensuring that they stay out of the park." Of course, those who they confront and sometimes attack also include the indigenous people, the Batwa in this case, who are trying to retake and reclaim their ancestral lands.And the argument is that without the guards, the land would fall into the hands of much more malevolent groups or forces. And so how do you think the presence of armed conflict as well as militarized conservation guards complicates the issue? Linda: That's a tough question. Well, maybe I can just give like a little anecdote.It was actually about this park, the [00:19:00] Kahuzi Biega National Park, and we were talking to German politicians and government officials about the problem of conflict and about the problem that these park rangers you know, are trained and have a lot of weapons, which seems very militant. And they, they were seeing the problem.They were seeing that this is probably not the best thing they should do, support security forces in an area which is already so problematic. But their thinking was, if we don't give them the money, now we have created this this force, basically. We have hired people, we have trained them.Now, if we stop supporting them, what are they going to do? You know, they're gonna maybe take the training and their weapons and make it even worse. So in a way, I mean, this was off record, right? They were just kind of thinking out loud. But in a way, they were seeing that the projects that they have supported have created structures which [00:20:00] very likely will increase conflict.And it seems quite obvious also because you see all these conflicts with indigenous peoples. So, I'm not going to say that it's a very peaceful area and there is not a need maybe for people to defend themselves. But in a way, the structures that we have in militarized conservation are not the solution.You know, they make the situation much more complicated than it initially was. And now, like, in this park, we're in a situation where we witness terrible human rights abuses, and everyone's scared to act and do something because it could get even worse. And it's, yeah, it doesn't seem like a very good solution.I think we need another way. We can't just stick our head, and say, oh, you know, we just go on, we'll just go on and then let someone else deal with it in a few years. I don't think that's a very good solution. Very good example.Martin: And it's questionable also to what extent do these these guards, these armed [00:21:00] rangers actually protect the, the parks and the species because they are here supposedly to fight against illegal wildlife trade and poaching and everything.But what studies have shown is that the root cause of of poaching and of the, of the illegal wildlife trade is mostly the demand for such products that comes from industrialized countries or at least other parts of the world and the system is made for the guards to take action against the local population and not against the actual criminal networks that lead to illegal wildlife trade and poaching.They get money for people they arrest and the easiest people to find are the locals that are trying to get to their ancestral lands. And there's also sometimes the park management involved in these criminal networks. So, you pretend to put in place a system to fight against illegal wildlife trade, but there ends up being no choice but [00:22:00] for the guards to, to take on the local people. Linda: Maybe we should also think about the indigenous populations as guards, or maybe guardians is the better word, of this area. And if we zoom out of the DRC and look at South America, where we have much stronger land rights... it's not perfect, but of course, better for indigenous people.They often act as guardians or guards of these territories, even though they're also confronted with illegal logging, quite brutal illegal logging, for example. But in a way, they are there and they, of course, are supported by authorities ideally, in defending these territories, but you see a less violent or militarized conflict because you have the indigenous guardians, as opposed to starting out with their protected [00:23:00] areas and armed guards, which are not just there to defend themselves, but have extensive rights of use of violence, and they don't have to fear any repercussions if something goes wrong and they kill, for example, an indigenous person.I mean, that's what we've seen in this park, that they can basically act with impunity. Chris: And thank you, Linda, for offering that example of the difference or the contrast between places like the Kahuzi Biega National Park and the DRC and other places in South America, for example, where there is this inherited intergenerational understanding of guardianship and while there's only maybe a half a century of conservation industry in these places, of course, they're an extension of the colonial project or projects that were undertaken much further back in time in places like Africa and places like the DRC before it was known as such.And then what happens, you know, after X amount of [00:24:00] generations after this kind of exile and displacement, that there is no lived memory anymore of what it means to be a guardian of your place. And I don't just mean as a title, but in terms of how you guard that place, as an indigenous person.We might be able to say that the Western world or the modern world that that's very much what we've become is people who are unable to remember or have a lived memory of what it's like to adequately stand as guardians for a place. You know, I think with the work that you two in Survival International are doing, there's a path forward towards that.And I'd like to remind our listeners that we're also here speaking today in part because there was a victory that was won by Survival International on behalf of the Batwa people and activists like yourself. And so I'd like to just read very briefly from [00:25:00] July 2023 press release from Survival International, in which it is said that, quote, "in a landmark decision, the French government has scrapped its plan to fund the controversial Kahuzi Biega National Park in the Democratic Republic of the Congo."France's Minister of State for Development, francophonie and International Partnerships, Chrysoula Zacharopoulou, confirmed that the plan to begin financing the Kahuzi Biega National Park has been scrapped. Ms. Zacharopoulou said, quote, "It has been abandoned, in line with our requirement for the respect of human rights."So first of all, I'd like to say congratulations to you both and to your teams at Survival for for getting this this victory and for doing the work you need to do in order to get there. And I'd like to [00:26:00] ask about the strategies that were employed in order to revoke French support for the park. You know, so many of these efforts and victories are either ignored in the context of the endless dilemmas or they're celebrated kind of superficially without considering the work it took to organize such campaigns.And so my question is, how has this campaign been organized by Survival International? Martin: Well, to give a bit of context the first time we heard about the French Development Agency planning on funding Kahuzi Biega, it was in the exact same time period as the publication of a report by Minority Rights Group International detailing brutal waves of violence in 2019 and until 2020 of appalling human rights abuses. So, atrocities that including murder, torture, rape [00:27:00] the burning alive of children, the burning of villages. So, we are, in this context, where we are reading the minority rights group report and understanding the scale of these waves of violence against the Batwa.And around the same period, we see that the French Development Agency has been a delegation, including the director, has been to the park and plans on funding it. So, of course we are appalled and and decide to write to the French Development Agency, but also to the to the ministry that has oversight.So, one of them is the Ministry for Foreign Affairs. And then we wait. And then we also got the support of a senator who also sent a letter and asked a question in Parliament to the government about their plan to fund this park in the context of these human rights violations.And so in July 2022, so last year, they decided to suspend temporarily the project. It was also in the context of an internal scandal because there was an expert[00:28:00] in the field and contracted by the French development agency to carry out a feasibility study. And he was basically saying around, and it can be heard in recordings saying that basically the study is just a formality and that the decision to fund the park has already been made.So there's both scandals. An internal scandal about the due diligence apparently being considered a formality on the field and the scandal of the very detailed report that had just gone out about the atrocities. So, that led to a temporary suspension. And they said that they would conclude the study and look into the abuses into social aspects.And then a year passed and we kept sending letters, of course, and doing some public campaigning about it on social media, et cetera. And then the senator asked again a question in July this year, and that's when we learned that the project was cancelled. So, of course, it's a victory, and it shows that sometimes the government actually does have the oversight[00:29:00] on the development agencies and takes the right decisions.But, of course, it's just the whole model still needs to be challenged and the park still has many international backers, even in the context of the atrocities that we that we know about. Chris: Mm. So the senator that asked about the status of the funding and found out that it was in fact scrapped, the scrapping of the funding was never made public until that point?Or there was never any press release saying so? Martin: No, they made it public, In the answer to the question, orally, in, in commission in Parliament. Chris: Mm. And would there be no way that the French public, for example, would be able to find out about this otherwise?Martin: I don't think so. And to be honest, I'm not even sure the decision had been taken before. I think they looked into it again because the senator asked a question again, but that's just speculation. Chris: And you spoke about writing letters, obviously to politicians and to the ministries [00:30:00] and also social media campaigns. Do you think there was more of an effect on the scrapping of the funding because of the public campaign, the social media campaign? Martin: Yeah, I think and that's basically the whole premise on which our campaigns are based is that an efficient mobilization of the public opinion will lead and the fact that the public cares and is informed will lead to a more efficient lobbying and advocacy of the governments and, and other government agencies. So yeah, I think one can't go without the other. And I don't know what would have happened if only the Senator had asked the questions or if only the Senator had asked a question or if we had only sent a letter and no public campaigning at all, or no press release, or no social media, I don't know. So I think, yeah, both go hand in hand.Chris: Mm hmm.So do you think that without the report from the Minority Rights Group, that the funding would have gone ahead, regardless of what was actually happening there? Martin: It's possible because we know that the funders were aware for years and [00:31:00] years of the human rights violations. And even before the waves of violence that are described in the report, we know that they were aware of that risk of violence at that time and of the human rights violation in the whole context of the militarized park.So, I think it could have very well gone ahead, because the other funders knew and kept funding it. And yeah, it's very important to get that kind of report with very detailed testimonies and information from the ground, and really documenting these atrocities. Otherwise, it's just business as usual.Chris: And the original proposal for the funding at least by the French government or the ministries involved, they were basically just promoting conservation in the way that it typically is. That's what the funding was for? Martin: Well, it's hard to know because they never published anything and actually, they never actually started funding it.It was just, just a project. Like I said, they went on a visit there and started making [00:32:00] promise to the local conservation agencies and to the local authorities. It's not clear to this day what exactly they were planning on funding, but it was clearly stated that there were planning on supporting the park itself, but I don't know for which kind of activities, but still, funding the same structure that that has been responsible for these abuses is still unacceptable.Chris: Mm hmm sounds "sketchy," as we say in English. And and so for our listeners, just a little bit of further context while France simply abandoned plans, the country had not yet made, or the government had not yet made, Germany continues to finance the park despite France's, however, subtle acknowledgment of human rights violations.And so, Linda, my question for you is, first of all, why is Germany funding a national park in the DRC to begin with? And, if you know, [00:33:00] how does that money get spent? Linda: Well, I guess the, the German interest in this park is pretty old, so the German government started funding the park already in the 80s.And there were some other projects even before that, supposedly. But it's considered to be a very, well, it obviously is a very long running project financed by the German government. And some local people call it the German park, because they assume that without the German funding, it wouldn't even exist. Like the kind of money that has been given over decades and the kind of things that have been funded, the infrastructure, the Congolese conservation authorities, the park rangers, you know, all the things that were funded basically crucial for the park to function. So yeah, it is a very German funded project. And also the German government has for very, a very long time looked at it as being a prestigious [00:34:00] project.You know, it was this great park, the gorillas, you already mentioned it, you know, and the Germans been funding it, which when you know a bit about German history, post World War II, there was a lot of interest in biodiversity and conservation funding because it was a good thing to do, which gave Germany a little bit of a different international picture than it had after the war.So there was a lot of interest in funding projects, and they were perceived as being fantastic, and they were shown to be these great projects that Germany is supporting internationally. And then, obviously, it isn't, but the German government has been very, very good at denying that there are these problems, and the role that it has had in facilitating these horrific human rights abuses. Mm. Chris: And how, if at all, has the German government responded to the [00:35:00] scrapping of the French funding? Linda: Very good timing, because I just got a response today, actually from the German government. Mm. 'cause we did point out to them that the French government has decided to not fund the park because of the violations of indigenous people's rights and because of human rights concerns. So we pointed this out to the ministry again, just in case, they would not have learned about this themselves. But the reply basically doesn't address this at all. You know, this was what we wrote the letter about and the replies about all the great things that the German government keeps funding and the improvements it is supposedly seeing on the ground and these improvements justifying their continued support.So it's just a letter explaining why they continue funding it and not addressing why maybe partners like the French government have decided not to fund it. And it's something that we have seen over the years. I think [00:36:00] survival first raised human rights violations in the Kahuzi Biega National Park in actually 2017, so that's quite a few years ago.There was a Batwa family. A father with his son, a teenage son. They were going into the park to collect herbs for medicine because another son of the family was sick. They encountered park rangers who killed the teenager and hurt wounded the father. So it was quite a terrible incident.And the father wrote to the German government, to the funders, and he complained about these human rights violations and the fact that the Batwa had lost access to the park and to their livelihood because of the German funding. The German government just said, "well, you know, there's not much we can do about it, basically."They tried to pay some money, but then really nothing, nothing else happened. And over the years, the situation hasn't improved. It has [00:37:00] gotten worse. But the German government keeps saying that they have faith in the Congolese conservation authorities and they do not see grounds to stop the funding or the project.They keep saying that they see progress. And things will get better. And we know it hasn't gone better. Chris: I'd like to return anyways to this this question around tactics and strategies and organizing. It seems that activists and those not directly involved in social movements struggle with the weight of our times.I mean, it's you know, kind of hard to ignore these days. And so, given that the German government, I imagine, is the obvious next target in the campaign to defund Kahuzi Biega, or at least the conservation authorities and programs there, what tactics, what strategies are being employed by Survival in your campaigns, [00:38:00] and how might our listeners in Germany, France, Europe, and, and beyond, how might they participate?Linda: That's a very good question, because, as I said, you know, Survival has been working on this for a few years, and there's a little bit of frustration, of course, that not much is happening in the terms of acknowledging the problem of funding this park. I think what Survival, what we're thinking is, quite important in this issue of conservation is making sure that donors in the West understand that this is a very symptomatic problem.So, a lot of conservation projects function like this and it is because there is this underlying problem with them, that they do not acknowledge land rights. But they continue to say that certain government authorities or certain conservation organizations are best put to run these places. It's the same with the [00:39:00] Kahuzi Biega National Park.The German government now says, "well, we know there are problems, so we pull in the WCS. They're the conservation organization and everything will be better. But it won't because they also have a record of not respecting indigenous people's rights. So, we need to make them understand that there is this underlying issue of not acknowledging indigenous people's land rights.And we try to do this by pointing out that this is a problem which is happening in a lot of national parks. So, protected areas that Survival has looked at in Africa and Asia, almost all of them, even the ones that we were told were good examples, have these problems. And we try to show that to the donors that have such big impact on these conservation projects and make them rethink what they're doing.It's a very difficult process, of course, because they've always done it in a different way. And now it's hard for them to think [00:40:00] about, you know, giving control and power to local people, which until now they've always said is a threat to conservation. It's like a total turn of what they assumed so far.But for us, it seems like that's the thing that we have to do for them to actually acknowledge the problem, because otherwise all the solutions that they come up with are not real solutions. They put people like the WCS in power, which is also not going to respect the Batwas' rights. Chris: Yeah, I think one of the critiques around development is in the context of these industries, especially things like conservation, volunteerism is another one that as industries, you would imagine that they would have in their mission statement, or vision, or ten-year plan, the slow and intentional disappearance of their own industry, right? Because if what they were [00:41:00] doing was working, we would need less of them. And there would be less of them, but here we are, right? And it's just, of course, a massively growing industry, both conservation and volunteerism. Martin: Yeah, it's true that our key targets are the donors, because like many of the issues that indigenous peoples are facing across the world, the root of the problem and the funding for these problems come from the West and our societies. So that's going to remain one of our targets and key part of the strategy. I think we are starting to see a shift in the discourse, in France, at least. And when we talk to the politicians, we also see that shift, that shift in the discourse of the conservation NGOs, but it's still as harmful. So instead of saying that these places are wild and empty and that the local artists are destroying it or encroaching, well, they still say it, but they also say that what we were saying before about the poverty issue and that [00:42:00] they will generate new projects and new activities and development basically.So, I think that they are starting to acknowledge the presence of these people. They couldn't be further from recognizing their land rights because, like you said, otherwise it means their own disappearance, and they're not built for that. Linda: Yeah, so it's a difficult, it's a difficult thing. I mean, I think we try to talk to people that are more inclined to understand the importance of indigenous people's rights so that we can have a base of people that support our campaigning, which is very important for us.And then we select our targets and try to engage the people that support us in convincing these targets to change projects or change their minds. And sometimes, you know, that can just be it a tweet that texts someone who we know makes decisions about certain [00:43:00] projects, try to raise awareness that there is concern about this project, that some people disagree, that this doesn't comply with human rights, that this doesn't comply with, agreements or treaties they're supporting for indigenous people's rights.And sometimes it's a more complex lobbying strategy. So there are different things we try to do and sometimes, like we saw with the example of the French government, sometimes it works because there's timing, there's different things coming together. But obviously, even though we have a lot of strategies, it's always difficult to know what will work in the end.So we try different things and try to engage with people that will help us spread the word about the need to decolonize conservation and do it differently and acknowledge land rights. And sometimes it's little things that really change a lot. Sometimes we work on something for a long time and it wasn't the right strategy and we need to change.[00:44:00] Chris: Well, speaking of how might our listeners find out more about Survival International and the decolonize conservation campaigns and especially around the work that you two are doing. Martin: Well, I strongly encourage people to read more of our campaigns on the website, on social media, also to subscribe to our newsletter, because that's where we mostly share our urgent actions.So which are one of our tools to put pressure on the targets. So, mass emails basically sent by our supporters to the targets about specific projects. And we also publish some video, direct video testimonies in our tribal voice projects, as we call it.So if they want to listen to, to the victims explaining the problems they are facing, but also the way of life that they have lost or sometimes more inspiring things about the resistance and and the fight. I think it's also very interesting to hear directly from the people affected.But yeah, I strongly encourage people to join the movement by [00:45:00] any means possible. And sometimes as Linda said, just small actions like a tweet or sending an email through these campaigns can be can really make an impact and and it does help ensure that the advocacy and the lobbying is effective.Linda: Yeah, and I think it's also a nice way to picture that you're showing solidarity with, for example, the Batwa, who often perceive the Western donors as being the cause of their problem. And I think for them, it's nice to see that there are also people in the countries that, where the problems originate that are standing up for their rights and supporting them.And I think it's probably the least we can do also, because we're so obsessed with African nature that I think it would be a very good step for us to think about the people that live in these places.Chris: Yeah, absolutely. And maybe not immediately or superficially in part because of the inundations and the dilemmas in our times, but that kind of [00:46:00] solidarity can begin to break down as well, the largely like unconscious nationalist tendencies we have when we think of other people in other countries, we always associate those people with their governments, right?Which is just like, absolutely ridiculous when anyone thinks of themselves in relation to their own government, right? But these are two faces, two voices of the resistance that are working on behalf of many others.And so I just wanted to reiterate that we're here today just to have the chance to be able to speak about a little bit about this this small victory that all willing will lead to many more to much bigger ones in regards to the Decolonize Conservation campaign of Survival International.It takes work and I'm grateful to be able to speak with you both today and to have you share some of your work and your dedication with our listeners and I will make sure that all of those links that you mentioned, Martin, will be on the End of Tourism website and available for our [00:47:00] listeners to sign up to the newsletter and follow on social media and of course participate if they so wish.Thank you both. Linda: Thanks. Martin: Thank you.​ Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

Building Texas Business
Ep070: Navigating the Tech Industry's Evolution with Wes Cummins

Building Texas Business

Play Episode Listen Later Apr 10, 2024 35:26


In this episode of Building Texas Business, I sit down with Wes Cummins, CEO of Applied Digital, for an inside look at the company's revolutionary trajectory. Wes takes us behind the scenes of Applied Digital's evolution from Bitcoin mining infrastructure to leading the charge in specialized cloud and high-performance computing. Our discussion also tackles the grit of entrepreneurship. Wes reflects on Applied Digital's resilience amid regulatory shifts, sharing lessons from his upbringing on perseverance and hard work. As the company grows, so does its specialized workforce, prompting insights on fostering talent retention and aligning culture with business goals. Overall, Wes offers a compelling narrative of continuous innovation through adversity, partnership and calculated risk-taking. SHOW HIGHLIGHTS Wes Cummins discusses the origin of Applied Digital, beginning with infrastructure for Bitcoin mining and pivoting to high-performance computing and specialized cloud services. We examine the company's strategic response to China's crackdown on Bitcoin mining and how this external challenge spurred a significant shift in Applied Digital's business model. I reflect on my own experiences with business pivots and emphasize the importance of seeking opportunities amidst market disruptions and regulatory changes. Wes shares insights from his upbringing on a family farm, including the values of hard work and resilience, and how these qualities have influenced his entrepreneurial journey. We talk about the rapid growth of Applied Digital, expanding from three to approximately 200 employees, and the operational challenges associated with scaling up. Wes outlines the importance of building a specialized team with the right skills, highlighting the role of strong human resources and recruiting in managing rapid company growth. The conversation delves into the significance of company culture in driving employee motivation, retention, and the cultivation of a spirit of empowerment and ownership. We discuss the energy challenges in powering AI technology, the use of renewable energy sources, and the potential of nuclear power to meet the increasing demand for data center capacity. Wes considers the future of Texas businesses within the energy grid, including the financial and infrastructural challenges of meeting the needs of hyperscalers. Finally, Wes and I touch on personal leadership styles, the evolution from micromanagement to autonomy, and the value of mentorship in fostering a productive work environment. LINKSShow Notes Previous Episodes About BoyarMiller About Applied Digital GUESTS Wes CumminsAbout Wes TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Wes Cummins, ceo of Applied Digital. Wes's company is building the next generation of digital infrastructure in the United States. He shares his thoughts on how building a strong company culture starts by providing opportunities for growth to your employees. All right, wes, I want to welcome you to Building Texas Business and thanks for taking time to come on the show. Wes: Chris, thanks for having me. I'm happy to be here. Chris: So let's start by just you introducing yourself. I'll at least say I know you're the CEO and founder of Applied Digital. Tell us a little bit about Applied Digital. What is that company and what is it known for? Wes: Sure. So. Applied Digital is a company that is building next generation digital infrastructure, and the company started by building infrastructure for Bitcoin mining back in 2021. Crypto mining, where a lot of the hash rate about 70% of the hash rate was in China at the time had to go elsewhere in the world. A lot of that came to the US. We assembled a team that had experience in the sector which there wasn't a lot of people in the US that had experience, given. I think it was sub 5% of the hash rate was actually in the US at the time Assembled a team, secured power sites because it takes a large amount of electricity and built data centers, which is the digital infrastructure for Bitcoin. We don't mine Bitcoin ourselves. We never have. We provide a data center service for Bitcoin miners, and the original business idea around that was anyone can be a Bitcoin miner if they come to us, so you need to have money to buy the miners, the servers, and you come to us and sign a contract. We put it in our facility, we run it for you and Bitcoin just starts hitting your wallet and you're a Bitcoin miner. So that was the original business idea. What it ended up being was we signed a few industrial scale Bitcoin miners that filled up all of our facilities Our largest customer being Marathon Digital, which I believe is the largest Bitcoin miner in the world and so that we built about 500 megawatts of data center capacity in about 24 months for Bitcoin mining. And then, in 2022, we started looking at what other products or services can we offer on our sites and with our assets, and what we landed on was high-performance computing, and at the time, high-performance computing was more of a niche market. That went after, like geotech analysis for oil and gas, aerospace design, automotive design, drug discovery, graphics rendering, and high-performance computing is typically GPU-based, typically requires significantly more power in a single rack, so much, much higher power density than traditional data centers. So we designed that in 22, started building it at the end of 22, our first facility, and then, in October of 22, we put a software layer in place to run a cloud service out of our facility, and we started running that cloud service in December of 22. Out of our facility and we started running that cloud service in December of 22. And the customers were initially small, mostly universities that were doing research, machine learning, deep learning out of that facility, and we put the cloud service in place to be our own first customer and our new style of data center, to show the data center work, and then we could lease out the data center capacity. And then, as everyone knows, the world has changed since December 22,. Really, it was when ChatGPT hit the scene, so everyone got their first taste of generative AI at a wide scale and what it does. And then, in March of 23, nvidia introduced the H100 GPU, which was their next big data center GPU upgrade from the A100. And it turned out that the data center we were building was kind of a perfect fit for the new NVIDIA gear and we were out marketing that and we landed our first actually cloud service customer in May of 20 character AI. And so we've leaned. Now we've done two things. We've leaned into the cloud services business and signed more contracts and more customers. There we're basically we own the compute and we provide a very specialized cloud service that's GPU based. And then the other thing we're doing is we went back and initially we were going to build five or 10 megawatt facilities on these sites and now we're back to building hundreds of megawatts of high performance computing, high power, density, data center capacity, mostly right now in North Dakota. But we, you know, this is a new kind of a new world on digital infrastructure and we can talk about that a lot more, but that's really what our company does is next generation digital infrastructure. Chris: That's an incredible story. Let me just kind of back up to the beginning. What was the inspiration for you to even start the business back when you did yeah, so? Wes: it's a little bit interesting. So the business model changed quickly after we started. So the initial business model was actually deploying you know kind of industrial scale GPU capacity to do altcoin mining. And that goes back a lot more to my background, which you know. I've been a tech investor for 25 years now and really what I saw was an opportunity in that market. So altcoins are anything but Bitcoin, basically, and the largest being Ethereum, and the idea was we were going to deploy a lot of GPUs and there were many different proof of work networks that require GPU capacity to run for different altcoins Again Ethereum being the largest when it was proof of work, before transitioning to proof of stake. And the idea was, as an investor, instead of putting money into these different altcoins, you could actually just aim the compute power at different networks depending on which one was most profitable. And so we were going to be a large scale GPU operator doing Ethereum and other altcoins, and we signed an agreement with a company called Sparkpool that was the largest Ethereum pool in the world I think it had roughly 25% of the entire hash for Ethereum at the time and we were going to deploy a lot of GPUs in China actually, and so we raised money for that in April of 21. And then, at the end of May of 2020, was when China cracked down on Bitcoin mining and our business model changed because the opportunity to build all this infrastructure in the US was basically presented to us. I'd already started to assemble the team that could go out and do that, and then we just accelerated that. So that was really the genesis of the company. But you know, when the world changes, you have to be accommodative to that, and so we have been. Chris: That's a great point to make and let's kind of stay on that for a minute. You start out with an idea and a plan and that was going to be in China. China, you know, without any control, you have changes, the laws and things, and you're forced to pivot. Walk us through, maybe, how that played out for you, the decision-making. Other entrepreneurs face that all the time, I think, and some successfully and, as you know, some unsuccessfully. So what are some of the things maybe you could share to help someone navigate through when market dynamics beyond your control change and force you to just totally pivot your business model? Wes: Yeah, it's an interesting position and, you're right, sometimes it's hard to make it through those. So what we did? We stepped back, because when the news first hit I remember it was I think it was the last Friday in May I was sick to my stomach. It was just like the entire business model we were going after has just been closed for us. But we spent some time over the weekend thinking about what opportunities does this create? And it became very clear the opportunity it created very quickly. The thing that was fortunate for us is I had already been in discussions about building sites for our GPUs in the US. We were looking at power sites. We were looking the US, we were looking at power sites. We were looking at, you know, construction, we were looking at that, and so there was a pretty clear path. And you know, our partners in China were looking for capacity outside of China very quickly and so we kind of had a natural customer base and we already had kind of the start of looking at these sites and what we could do there. So it was very helpful to have that. But you know, at the start it was a big gut punch when we found that out and it took us. You know, really over the weekend it became clear for us, but then it took us a couple of weeks to really change and take action on the new business opportunity and take action on the new business opportunity. But what I would say in general is typically if there's a big change, it definitely can wreak havoc with current businesses, but it's going to create some new opportunity. Chris: I think that's the idea. Wes: That's the idea of the opportunity, yeah. Chris: Yeah, I think that's the. The lesson I see consistent in talking to entrepreneurs is, you know, gut punch moments cause you to rethink the business model or where the weaknesses are, but it's about looking for the opportunity, because with every roadblock then I said, if you really take a close analysis of the situation, you can find opportunity, and then you just try to figure out how to pursue that. Wes: Yep, that's what we did, and, like I said, we were fortunate in that we'd already started putting some of these puzzle pieces in place prior to that news coming out, and so it was a little bit of an easier transition, but it wasn't an easy transition by any means. Chris: So you know it may be too a little bit of your makeup and I know I think a little bit about you. You grew up on a farm, I think in Idaho, and there have to be some lessons learned in growing up in a rural environment that teaches you that you just keep your head down and keep plugging away. Wes: Yeah, you know there's many lessons from farming and I was in kind of the last generation at least in Idaho of family farms where you know all the family members worked on the farm before it was much more commercial and so you know, generally around five to six years old we started working on the farm. I'm sure at that age we were zero help, but you know you have to get trained into it. But we, you know we did in Idaho. You do a lot of irrigating. You get up at 430 in the morning and go stand in a wet, cold potato field and move irrigation equipment around for about an hour and a half. Then you get to do it again in the middle of the day and again at night. So there was a lot of lessons. But our dad taught us being self-starters right. So self-starter was a big part of what else do I need to do, not just the task he gave me and then I have to wait for him to give me another task. Obviously hard work, but I always make the joke. The biggest thing that growing up on a potato farm taught me is that I did not want to be a farmer. That was probably the biggest takeaway for me, but it did instill, you know, very strong work ethic and that's. You know farming is a hard business. Just because you know, like many businesses or maybe it's the worst out of any business the predictability is just. It's just not there right, it's not predictable at all. You know, I always tell people when we used to do stock investments. You know, let me tell you how farming works is. Let's say that you're going to invest in a company that trades publicly. You give me all your money now, and let's call now being it's April, but let's say it was March, and then in October I'll tell you how many shares of stock you purchased, right, which would be your yield of your crop, and then you have, you know, five months to sell all those shares, no matter what the price, and that that's how farming works. You put all your money in up front. You have no idea what you have until your yield comes out, and then you don't know what the market's going to be after that, and maybe you're going to get zero shares because a hailstorm comes through or something. So you know there's a certain resiliency that it teaches you as well, because there's very lean years and there's very fat years. Chris: Yeah, interesting perspective and very true. So you know that's kind of turning back to kind of apply digital. So you know, kind of turning back to kind of apply digital, how has the company grown from a kind of a workforce and facility location in the last couple of years? Wes: So we went from three employees at the start to we're about 200 employees now. Our headquarters in Dallas, texas, and we have the second headquarters here where we run a 24-7 network operations center. And then we have sites, two sites in North Dakota. We recently divested a site in West Texas, so now we're down to two sites in North Dakota and we're really focused on those sites right now. Hyper-scale size data center deployments it is specifically our Ellendale North Dakota site. Data center deployments, specifically our Ellendale North Dakota site, where we have a significant amount of power contracted, so expect to continue to grow pretty significantly over the next few years just because of the market opportunity we see in front of us, it's a lot of growth in a short period of time. Chris: What are some of the things that you've done, kind of as a CEO, to help manage that growth, so that you know you're building a strong team to kind of execute on the company strategy? Wes: So one of the things I've done and I'm, you know, I've been an entrepreneur and investor for a long time, but as I've just, I guess the wisdom I've gained with age is making sure I put the you know the people around me that have the skills that I'm lacking. So I, you know, really focusing on the things that I do really well and putting the other you know other people in the seats around me that do things that I don't do well, extremely well. And so you know, as you grow, I would say the kind of the bigger one for me or for us growing this quickly is, you know, having strong human resources, having strong recruiting, so that we get the right people in the right positions and they're managed the right way and we put the right type of structure in place for all of our employees to be successful. And then so, so we have that. That's been a big one. And then you know, our financing team we're in a capital intensive business, and then so we have that's been a big one. And then you know, our financing team we're in a capital intensive business, and then so we have a great finance team, and then, you know, we have a tech team, so we're kind of a blend between a real estate and a technology business and we're on the leading edge of this new high power density. You know, really, ai workload technology, and so we've had to attract the right talent for that, because, similar when we were building the Bitcoin facilities, you know it was a really shallow talent pool in the US. And it's the same with, you know, large GPU deployments that, like I said earlier, that was a niche market going back to you know 22. And now it's just exploded. But finding the people that know what they're doing, managing these and you know deploying, operating, managing large scale GPU deployments is was difficult. We were early and we were able to attract you know good, really good talent in that space. But you had to go to, you know, national labs and universities to find people that had experience with really large GPU deployments, and so we've done a good job. But that goes back again to recruiting and HR and having a really strong team there to find the people that we need. But there's definitely growing pains, right, as you grow up as a company and you know putting the appropriate structures in place, because when you're, you know a three to five person startup, right, everyone's doing everything and as you grow, the people that were there originally doing everything need to become more specialized. You know, in a group of the company, so that's a that's kind of a harder transition as well. But if you, you know you find the right people and you, you know the team all works together, you're able to achieve that. But there's a in three years there've been a lot of changes at the company, a lot of new faces, and then you know, specializing people. That started, you know, doing everything. When we built our first facility, I think it was eight or nine of us at the company, right, and we're all doing everything to make that happen. And now it's gotten bigger and larger scale and we've added a lot of specialty inside the company. AD: Hello friends. This is Chris Hanslick. You're building Texas business host. Did you know that Boyer Miller, the producer of this podcast is a business law firm that works with entrepreneurs, corporations, and business leaders. Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the at BoyerMiller. com. And thanks for listening to the show Chris: That's great. So you talk about kind of the importance in the recruiting process and, I think, equally important, in the kind of onboarding, integration process, anything that y'all have implemented that you believe that's innovative in that regard to kind of help customize and streamline that process. Wes: You know, I don't think there's anything particularly innovative about what we've done. It's what I will say about our company is, you know you it's kind of recruiting from two different pools. So you have nationwide recruiting for you know people that will come and sit in, you know whether it's exec or you know SVP type roles at the company, and then we have to do a lot of local recruiting. That's another one is you know, our sites are managed locally. We have the 24-7 NOC that sits here in Dallas, but there's been a big push because our sites are typically in rural areas and so that's probably one of the biggest challenges is recruiting and training all of the people and the talent that goes directly to the sites. So it's a unique mix for our company in that instance is that you know it's kind of two different styles of workforce but we have two different recruiters that manage that. Chris: How do you then bring it back together, as you mentioned, two different workforces and obviously two different geographic locations, different states. What are some of the things that you are doing as a CEO and maybe with your senior management, to build and nurture a culture at the company that everyone gets behind, to kind of further the mission? Wes: So I think one of the biggest things that I promote a lot at our company and a lot of the other management promotes is what you would expect at a small, fast growing company. There's a lot of upward mobility opportunities at a company like this and I love to highlight those success stories within our company and really encourage people with the upward mobility. That, I think, is just a big motivator and a big part of our culture. Chris: I think it's been my experience. If people don't see opportunity in your organization, then they're going to start looking somewhere else. Wes: Look we have Our site manager in Ellendale. He was. He was like the I don't know if he was the night manager or but he was. You know he was. He was working at Walmart at night in Jamestown, north Dakota, when he started as an operator at our site in Jamestown jobs that you could do for our company and a year later he was managing the site in Ellendale and he just you know his work ethic and he just shined through and he was able to move up very quickly and, you know, moved his family to Ellendale, north Dakota, and is running the site there for us now. And it's just, you know that we have many of those stories inside of the company, but we do. I think we're unique in that we do hire locally, we offer training for these technical jobs and you know they pay typically very well versus other jobs that are available in these locations and again, there's a lot of room for advancement inside the company and it creates a really nice culture for us. Chris: So you were talking about where the business, I guess is pivoted to in large part, is providing energy and power to fuel the AI movement. There's been a lot written and discussed about the idea that one of the limiting factors of the power of AI is the lack of power to run the centers or the computers needed to run the machines to do the learning and have that advance. What's your take on that? Because where do you see the industry from the power supply and how do you see that improving over time to try to keep up with the technology? Wes: Yeah. So it's a big issue issue now and it's going to become an even bigger issue as we go through this year and into next year. Just the power capacity in the US. So the ring in Virginia basically out of power. That's the most popular data center market in the US. Santa Clara, maybe the second most popular data center market out of power. Chris: If you want new power there, it's seven to 10 years and a lot of the other Wait a minute, say those two things again because I don't think people have an appreciation for that issue and the magnitude of what you just said. So in Virginia and the nation's capital-. Wes: Yep Santa Clara. Chris: And so. Wes: California, yes, silicon Valley, two big data center markets. They're effectively out of power. Chris: If you want new power there, it's a really long wait time seven to 10. Wes: Because you have to build the infrastructure right. You need power generation and you need transmission right, and generation can be built much faster than transmission can be built. It depends on where you are right. Some states are much friendlier to new power generation than others are. So what we have done to solve that is we focus on stranded power, which stranded power means there's a lot of power generation and maybe not enough transmission to move that power out of the location where it's being generated. And the way we solve for that is we take our product, our infrastructure, to the point of generation. And so there's some other things that you have to do. You have to make sure that there's a good fiber grid for fiber optic communications at the site as well. So not every site works for this, but there's a significant amount of stranded power around the globe, but we're focused mostly here in the US. And how do you get stranded power around the globe? But we're focused mostly here in the US. And how do you get stranded power? There's really two ways that I've seen that you end up with stranded power in the US, and one is renewables are a big source of that solar and wind and typically everything we have done has been located with wind farms and there's an incentive to build where the wind blows a lot for wind farms and land is cheap, and it's, you know, there's an incentive to build where the wind blows a lot for wind farms and, you know, land is cheap. And so North Dakota, I believe, is the sixth largest wind producing state in the country and they're 48th or 49th in population. That state generates over double the amount of power that they use inside the state, and so we, you know, at our Ellendale facility, I believe, it's about two gigawatts of wind that feeds into that substation, and that's where we are located. So finding strain of power that way the other way strain of power happens in the US and, I would assume, around the world too is a very power hungry. Industry goes out of business, company goes out of business or closes a plant or something in a certain area, and there's this massive amount of power infrastructure that's left behind. So, like Alcoa smelter plants, for example, that have been shut down, those have become Bitcoin mining sites and probably sites that are attractive for high power density data centers as well. So we focus on that. Now that can be a short and kind of medium termterm solution. Longer term, you know, it becomes a bigger issue and I've heard you know any kind of. There's been so many numbers thrown around. One of the hyperscaler CEOs last week, at a conference I believe, said that a hundred gigawatts of data center capacity would need to be built between now and 20, just to supply the hyperscale. And so to put that in perspective, the entire US market for data center capacity is like 22, 23 gigawatts right now built over the last 30 years, and you're saying there needs to be a hundred in the next six years. That's going to be pretty hard One to find the power and two permitting building all of the other things that go along with it. Maybe the number's not that high, but it's still going to be a very big number. And in the meantime, for electricity, you have competing priorities, right. So you have this new data center application, you have EVs becoming a bigger percentage of cars being driven, you have new things like green hydrogen generation, which requires a lot of electricity as well. So there's definitely competing priorities and it's going to be a bigger and bigger issue. And for me I've thought a lot about this that the only solution that I see the longer term for this. If we want to do it in an environmentally friendly way, which I think everyone's focused on is there needs to be a lot more nuclear generation for baseload. Chris: Okay, that's interesting. Baseload, okay, that's interesting. Not dissimilar from what I've heard and the other things that get talked about is a lot of power is generated through water, right, and then we have competing issues on the need for water. Is it going to be to power these centers or for human life? So we're going to be struggling with those over the years to come. Let's talk a little bit about, I guess, from where you sit. Where do you see this AI and power generation issue and what are the opportunities and or risks for the Texas business ecosystem, if you will? What are the opportunities where Texas and Texas businesses might thrive and what are some risks? Wes: So there's I think there's a lot of Texas businesses that will thrive. We actually source a lot of our components and equipment out of many local Texas businesses here. So there's that ecosystem and that includes, you know, transformers, switchgear a lot of the electric gear that's going into our facilities we source out of Texas. So there's a big opportunity there for Texas at large. Outside of us, you know one of the largest, you know, energy grids in the country here with ERCOT, and so there's a lot of opportunity there. You know there's a lot of there is stranded power opportunities specifically in West Texas that could feed into this. It needs a little bit better. You know fiber network. It depends on where you are in West Texas. So some of those work. But there's a large opportunity for infrastructure in Texas for certain, and it's a very attractive market for that. But there's a lot of other businesses in Texas that are feeding into this entire supply chain. You know it goes down, it's pretty, it's a pretty deep supply chain for this business. And if you think about so, let's say, a meg of data center capacity, we have our own costs, that we do. But if you're building tier three style data centers for this type of power application you $1.2 billion for a gigawatt. You're spending $12 billion on construction and equipment and so we're saying $12 billion for a gigawatt and, like I said, on the high end of the numbers I've seen out there, we need 100 gigawatts over six years. That's a lot of business to be done. A lot of investment by the way, chris, that doesn't include the compute gear inside of the data center. So yeah, so that the cost does not include, you know, the gpus or servers and networking gear to go inside the data center and you should think about that being kind of. You know two and a half to three x what the cost of the data center is, so it's just staggering numbers. Chris: You're talking 30 to 40 million per gigawatt per megawatt. Wes: And then times that by a thousand for a gigawatt, and then the number I gave early was again this is a number that was not provided by me, but 100 gigawatts over six or seven years. Yeah, it's a really big number. Chris: Wow, well, it's coming off of that. I want to turn back kind of towards you a little bit and I always like to kind of talk about leadership styles. I think that's helpful for business owners to kind of reflect on themselves about how you show up as a leader, knowing that can evolve over time. So how would you describe your leadership style today? How do you think that's evolved over time? Wes: Yeah. So my leadership style is, you know I mentor some people. I like to, you know, keep people constantly involved in what I'm doing so they see what I'm doing day to day. And you know again, as the company has grown right, that I don't interface with every employee on a regular basis. You know I have a leadership style, that is, I'm not a micromanager. I want people to be successful in their roles. I want them to take, you know, the authority in their roles and manage their part of the business for them. And I think that's how you know, over time, how you build a much more efficient. You know big company versus a small company. You know, when we were first starting out, I definitely was, you know, had to be more of a micromanager because I was involved in every single task of the business. But as you get the right people in places and I give them a lot of autonomy to run their groups, I think that fosters a good culture and company over time is, you know, people feeling empowered and then feeling like they have you know, the destiny of at least their group. And then what I really still like about being a small company, even though we're much bigger than we were is everyone can see their own direct impact on the company. Right, you can still make a big difference as one individual inside of the company and I really I foster that culture inside the company a lot and again, I always push on this upward mobility and the fact that you're at a place where there's a lot of opportunity. Here at this place, you don't need to look outside of it to find opportunity, and I think it creates a lot of excitement inside the company and we all kind of with a small business, you kind of all ride the roller coaster together because you constantly have setbacks and you constantly have victories Then and you know we've had stretches where we have, you know, setback after setback and that maybe comes on the heels of a lot of victories in a row too. So you know, riding that roller coaster is something that everyone has to get used to, but I think we do it really effectively. But hopefully that answers the question of kind of a leadership style. Chris: Yeah, no, definitely. And you alluded to something that's part of my next question and that is because it's just part of life Can you think of and share with us kind of a challenge or setback that you've encountered could be in your personal life, but or in business that you learned from? That made you better? Wes: Yeah. Chris: And those are always, I think, some of the best learning moments. Wes: I've. You know, in my career I've had many of those and those are, you know, those are definitely learning moments and it's been, you know, either investments or in other businesses, and this is where I was talking about earlier that. You know, one of the biggest lessons I've learned is surrounding myself with people that have the skill set I don't have right. That's probably the biggest one, but I would say the biggest as far as running this company. You know, as you run a company that's growing fast and you're doing a lot of different things, you know you have to be a problem solver, right. A lot of people get really down about issues that happen inside the company. You know we had some setbacks recently where we had some. You had some equipment issues on one of our sites that went down and then, while that was happening our Texas site we were notified by the power provider that they were taking it down, for I don't remember if it was 10 or 14 days, for improvements on their grid had nothing to do with us, and so you have all of this kind of hit at the same time and if you're the CEO or another executive company, you have to be a leader. Through that. You have to solve those problems. I'm not a person who goes and screams and yells at people because I don't find it productive, but that's been the biggest is, if you're starting a company, you're going to have so many challenges. You have to be a problem solver for those challenges and especially if you have employees around you, you have to be the problem solver. And I say this about most. We're kind of an interesting blend between real estate and tech as a business, but if you're like a tech entrepreneur, you have to be a perpetual optimist. Right, you just have to be, otherwise you won't last. So you have a lot of setbacks and you have to fix those and grow and become stronger from them. But, yeah, I would say that's probably the number one is being a problem solver. Chris: I like that. So many people I've talked to. The word I would use is as an entrepreneur, you have to have grit, and it's not as easy as you think it's going to be and expect the unexpected right. Wes: Definitely expect the unexpected. Chris: Kind of like when China shut your business model down. Exactly so you know, Wes, this has been a really great conversation. I think we could go on forever, but I want to just turn to a little kind of fun personal side before we wrap up that. You know, I think we've already answered this question, because I usually ask my guests what their first job was, and I think it sounds like yours was on a potato farm in Idaho. Wes: So yeah, my first job was working on the family farm and then my second job when I was in college was I was a service station auto mechanic from skills I had learned on the farm. And then I was finally able to get out of that with an internship institutional money management firm. I think it was my junior year in college I was able to do that. But and then I went to an investment bank in New York out of college and then it's kind of been you know some of those through that to here. But yeah, the I would say my first real job outside of working for my dad on his farm was auto mechanic at a service station. Chris: That's impressive. So how long have you been in Texas? I moved to Texas in 2013. Okay, so you've been here long enough to answer my next question, which is do you prefer Tex-Mex or barbecue? Wes: If the Tex-Mex is right, I prefer Tex-Mex. Chris: Okay, I like that qualification, so we'll wrap up with this one. If you could take the Tex-Mex is right, I prefer Tex-Mex. Okay, I like that qualification, so we'll wrap up with this one. If you could take a 30-day sabbatical, where would you go and what would you do? Wes: Wow, that's a good question. It's never even crossed my mind that I would have the ability to do that 30-day sabbatical somewhere that is not a population center, probably has a beach, doesn't have to be anything specific and people can't find me on my cell phone. That would be the requirements. Chris: Those are good ones. I like those. Well, I do like the question, because most entrepreneurs never take the time to think about that right. Wes: Or have the liberty to. I have not thought about that one. Chris: Well, good, now you at least have a framework for it if it ever happens. So, wes, thanks so much for taking the time. I really appreciate getting to know you and hearing your story. It's fascinating stuff what you and your team at Applied are doing and have done already. Wes: Thanks for having me. I always love talking about our company.

Giant Robots Smashing Into Other Giant Robots
518 - The Standard of Self-Care: Unlocking Personal Growth with Chris Pallatroni

Giant Robots Smashing Into Other Giant Robots

Play Episode Listen Later Mar 28, 2024 41:20


In this episode, host Victoria Guido interviews Chris Pallatroni, creator of The Standard, a platform dedicated to sharing self-care stories. Chris shares how his interests in gardening and mental wellness fueled the inception of The Standard, which was initially intended to be a landscaping venture. He delves into the hurdles faced while developing the platform, highlighting the struggle for product-market fit and the critical role of integrating technology with human connection to enable meaningful support and interactions. Chris underscores storytelling's pivotal role in enhancing mental health, advocating for the sharing of personal triumphs over adversity to motivate and assist others facing similar challenges. He envisions The Standard as a vast collection of genuine, relatable self-care narratives aimed at reducing the feeling of isolation among individuals. Through inviting users to share their experiences, Chris seeks to leverage human connections to cultivate a community supportive of mental health and personal development. The Standard (https://thestandardapp.com/) Follow The Standard on LinkedIn (https://www.linkedin.com/company/thestandardapp/), YouTube (https://www.youtube.com/@__thestandard__), or Instagram (https://www.instagram.com/__thestandard__/). Follow Chris Pallatroni on LinkedIn (https://www.linkedin.com/in/chris-pallatroni-9bba3b22/). Follow thoughtbot on X (https://twitter.com/thoughtbot) or LinkedIn (https://www.linkedin.com/company/150727/). Become a Sponsor (https://thoughtbot.com/sponsorship) of Giant Robots! Transcript:  VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. And with me today is Chris Pallatroni, Founder of The Standard, a storytelling platform where people share stories about self-care. Chris, thank you for joining me. CHRIS: Yeah. Thanks for having me on. It's a pleasure. VICTORIA: Wonderful. So, before we dive into all about The Standard, why don't you just tell me a little bit about what's going on in your world outside of work? Anything fun? Anything exciting? CHRIS: Yeah. Well, first of all, I've got two boys, so for anybody that's listening that has kids, I mean, let's be honest, your life is completely chaotic. So, I've got two boys, one's almost 12, one's almost 10, so all boy, all the time. That's just another way of saying our house is really loud, and there's just tons of stuff happening, sports, whatnot. I also have a wife, a beautiful wife. She's my better half. I've been with her for 24 years. So, between that, I got three cats, not that they take a lot of energy, but there's just a lot of love in our household. So, that's sort of, like, the family side of things. And then I'm an avid gardener. I'm really big into mental health and wellness, which, as we start to talk about The Standard, will become really evident. So, I'm all about just doing the things that you need to do to take care of yourself, so lots of running, lots of working out, lots of just being in nature. I know you're a surfer, so, I mean, let's be honest, water is amazing. So yeah, anything I can do to, like, duck out into nature and spend time with my family. Honestly, there's just not enough time in the day. VICTORIA: What is growing in your garden that you're the most proud of? CHRIS: You don't want to get me started on gardening. So, before I started The Standard, honestly, I thought I was going to be a landscaper, and the name of The Standard actually was going to be applied to a landscaping company. So, I am a professional landscaper. I took all the classes: soil, science, irrigation. I got the degree in design and maintenance. I have a tiny, little property, but I have about 700 plants on my property. So, I know everything on the roses, and grass, and camellias. I mean, I'm that guy that, like, likes to see...nature is just amazing, first of all. And it also has very therapeutic qualities when we start to talk about mental health and well-being, birdsong, water, greenery, sunsets, sunrises. I'm also developing a piece of land. We have a house we're building, and it's three acres. So, I'm in the process of building out, like, what I'm going to just describe as the most amazing garden anybody's ever seen. I really take a lot of pride in gardening. I'm very disciplined and very specific on how things grow. And so, I've got a property that's about an acre and a half I'm planting, which will probably have, like, 20,000 plants on it when it's all said and done. VICTORIA: So, you have 700 plants now, and you plan to have 20,000, so you don't want to choose favorites. There's nothing...you got to, like, spread the love around. CHRIS: God, it's like saying, which child do you love more? I mean, right now on my property the ones that currently stand out is I've got a couple of these Eden Rose bushes that I've trained to climb up. I've got three of them. The one in the front of my house is about 20 feet tall at this point. So, I've trained it to grow up the entire side of my house. In full bloom, it will have about 300 roses on it in full bloom. And so, an Eden Rose has about a 220 petal count. So, it's a very dense rose. They are a pain in the butt to prune, but they're pretty spectacular in full bloom. VICTORIA: That sounds really beautiful. And I hope you send me some pictures [laughs] after the show. Send them to me in an email because I want to see...I love growing, but I do not have a green thumb. I usually try to pick what is most likely to survive [laughs]. CHRIS: That's my wife's strategy. She's like, what can I not kill? And, surprisingly, even with, like, cactuses, she still finds a way to kill some of them, so...[laughs] VICTORIA: Some people have it, some people don't. I do agree on the therapeutic side. And I'm curious, too, having this background, how did you go from landscape and this interest in growing things to starting businesses? CHRIS: Yeah, you know, the landscaping actually picked up at a much later stage. So, if I rewind my entrepreneurial journey, it started in 2004. I got mixed up with some guys as I was finishing up my degree in economics and finance. I was like, look, I don't have, like, a 4.9 GPA, so I'll probably need some sort of internship that starts to separate me. Anyways, got mixed up with some guys that were running a franchise painting company, took part in that, really loved the idea of seeing something grow. Did really well on that internship. You really ran, like, a mini-painting division of this larger company, so knocking on doors, producing painting jobs, so forth, and so on. At the end of that, which was a really intense about a year internship, they said, "Hey, we're going to build this marketing company. Do you want in?" And I was like, "Let's do it." And so, what I really wanted...and that was, like, my first major let's start a business. And I loved the idea of taking something from an idea to...the idea was, could we sell it for a hundred million dollars? So, the money was attributed to it, but I wanted to see something grow. And so, we went at it for, like, 15 years. We did end up selling, not at a hundred. We sold it for, like, 70 million. But we did really well. It was a bootstrapped company. We built this massive national marketing company. It's sort of like match.com for contracting. You can take a consumer that's interested in remodeling their house and connect them to a local contractor. And we built that all from, like, a bedroom with plyboard and literally rotary phones all the way to a national brand that's...I think we became the second largest in the space. It's still the company I still work for. As I build this other business, I'm still working at that. We're pushing 250 million now. But the concept of building something and selling it I thought was really intriguing. Landscaping was just a hobby that came in much later in my life. Thought that was going to be my next venture. I decided to pivot after getting all of the education, mainly because I wanted to build something that had application for everybody. And what I started to realize in landscaping is the average consumer doesn't have $50,000 to dump on their backyard. And what I didn't want to do is work for rich people and wineries. I really wanted to build a magical, little space for the average person. But I also started to realize most people don't have that type of income, which then pivoted me to The Standard, which I thought had more universal application. VICTORIA: That's really interesting. So, I love that because there's, like, a common phrase you hear about tech where every company is also a tech company now. So, it's really interesting to hear and, like, to hear about you think about growth and how it applies to businesses and that care that you put into it as well. CHRIS: Yeah. I mean, I think everything is tech-related in a lot of different ways. I don't know, I think at least with The Standard, like, there's such a human element, and I still need to figure out so much about it. But as tech-driven as we get, we're still a social species. We still want human connection. And maybe at one point far off in the future, like, a robot can replace some of that, but the human connection, the human story, the ability to feel connected and not isolated or alone has very profound impacts on people's mental health and well-being. And so, as much as I still have to figure out, I try not to over-index on too much tech and try to keep things very authentic and organic. Because I think when you do that right and you can do the matching of a consumer that's interested in a specific story with someone that has gone through that experience who can share that story, that connection is very profound. So, I do think it is a blend of tech, but I try not to dive too deep into the tech side of things. VICTORIA: Right. It's more that you need technology as a tool to solve the problems of the people that you're trying to work for or trying to, like, provide services for. So, it sounds like, to recap a little bit, you were part of growing this company. You were able to build it and sell it for 70 million. And then, you decided to, like, keep doing it. You're like, that was fun. Let's do another one [laughs]. CHRIS: Well, I mean, in all honesty, I think some of the challenges become when you're starting a company, which is incredibly invigorating. But if you're starting a company in an area that you don't have expertise...so, although I know a lot about mental health and wellness, I've read hundreds of books. I interviewed lots of people. I hired you guys to do some market research for me. So, I'm not naive, but I've never built a platform that does what I'm trying to do. And in all my research, I haven't exactly even seen a platform that does exactly what I do. So, it's hard to have that perfect measuring stick. And so, you know, what I've realized along the journey is it's really easy to spend money, and it's really hard to find product-market fit. And so, what I've chosen to do, and maybe it takes a little bit longer to get there, is rather than, like, go all in, quit my day job, and really just financially stress the crap out of myself and my wife, I still have a day job. I get paid exceptionally well. I'm very senior in my company. It's not overly stressful, but it also pays the bills. And so, I think one of the things I've learned about being an entrepreneur is you've got to enjoy the journey. And so, I do enjoy what I still do, and it serves a very valuable purpose. And it gives me still the freedom to play around with The Standard, to still do the things that I want to do. Sure, I can't burn as many hours on it, but at the same time, if I quit this job, my runway would highly compress, and maybe that's good for some people, but there's still just so much I have to figure out. So, I need the runway. VICTORIA: I can relate to that, and I think that's a really common story for people who have a great idea, and they need the time and space to find the right product-market fit to move forward and then make the big investment with your time and all the, like, other financial investments you would need. So, maybe to go back to the beginning a little bit, what led you to think of starting The Standard in the first place? CHRIS: So, I'll try to say this as succinctly as possible. Life is really hard for a lot of people, you know, and you can dice it up in a lot of different ways, whether we're talking about, like, you know, global events that happen, be it war, be it COVID, you know, anything on a very large level. But even on an individual level, like, we lose people. People are dealing with weight issues, how to eat healthy, stress. There's a lot. When we start to think about the concept of mental health and well-being, it is overwhelming. And I'm built for discipline. I've always been that way. I'm incredibly disciplined as a person. Some things may feel like they come a little easier to me, but I also look at like, oh my God, I got to worry about like, how do I sleep right? And how do I eat right? And then, how do I exercise? And then you got to be grateful for stuff, and then have social friends, and then be with your family. Like, I mean, adulting is tough; let's just be honest. And so, a lot of the concept behind The Standard was I have the freedom to explore a lot of this stuff. I've had the luxury to read hundreds of books and, meet so many people, and really invest a lot as to educating myself about these various topics that I think are important. I also have the luxury to deploy a lot of these strategies in my personal life, and it's a privilege to be able to do that. And a lot of people don't have that. They're struggling. They're working multiple jobs. They don't have a lot of time in the day. Maybe they're commuting. They don't have the luxury to take care of themselves. And that's just the Western world. Do you want to, like, dive into the Global South or start to look at, like, Ukraine or stuff like that? Like, there's just people, like, literally just trying to make it through the day, let alone be grateful about something or eat healthy. And so, I started to realize, like, God, if I think this is even remotely challenging, what does somebody else feel about their mental health and well-being? And so, that was sort of the jump off of, like, it is tough to maintain your sanity. It is tough to do all of those things. Is there a way that I can make that process easier for people? And so, that just led to a rabbit hole that started about six months before COVID hit, so late 2019. I spent a lot of time researching. I read several hundred books on habit formation and neuroscience and all these different topics. And, I mean, to the point where I was reading every morning, typing notes of these books, mind mapping this out, looking for the connection of all these topics. And what I was trying to figure out is what is the least amount of information somebody needs to know to have the most profound effect on their life? And what I came to as a conclusion was most people will not read a book or listen to a podcast. Some will, but the average person won't. They don't have the time, the desire. But everybody's got a problem they're trying to solve, whatever that problem may be, and if you could take somebody that has a problem and you could find a way to connect them to somebody who had that problem but is a little farther down the road. So, let's pick something pretty simple, like weight loss. I've interviewed a lot of people on my podcast this year that have lost 100 pounds, which is a really big number. And even if it's not a hundred pounds, you want to lose 20 pounds. The point being is that weight is a big issue for a lot of people. It affects their self-esteem, their body image. There's a number of things that, like, impact that. But if you could connect somebody who's really struggling to lose weight with somebody who has lost that weight and could share their story, how they felt, the habits they've deployed, and most importantly, they could talk about that experience, what would happen is the person that's been through that issue, if you will, would use a set of language that would be very specific and would resonate with the person that hasn't overcome the challenge yet. And this is what's so unique about it is: I don't know what that particular challenge is like. I've never had that particular issue. I won't know the language to use. But if you've ever talked to somebody who has lost a significant amount of weight, they will use words, and they will give examples that only somebody who's struggling with it would resonate with. I remember doing an interview, and a lady was like, "God, you know," she's like, "I was so overweight. I would be very thoughtful of getting on the ground because I wasn't sure if I could get back up. Or I'd be very thoughtful of the chair I sat on in case it broke." I mean, these are the things I'm like, unless you're overweight, you don't think about that. And so, my idea was like, could I take somebody who's overcome some of these problems, get them to share some of those self-care stories that they used to solve whatever that problem was, and then create a mechanism in which somebody who was struggling with, in this case, weight loss, that they could type in, "How do you deal with weight loss?" and they could connect to other people that have developed the habits and the mindsets that helped them through that? And weight loss is just an example, but you could pick anything from racism to depression to domestic violence and so forth and so on. The caveat there is you need a mechanism to connect the person that's overcome the challenge with the person that's still going through it. So, you got to get a lot of people on the other side of the tunnel to share their story and to know that they're doing it maybe not to monetize it but to do it for the benefit of other people who were like them at one point. VICTORIA: Yeah, if I can try to summarize what you meant when you said, like, what's the least amount of information to have the most profound realization on how to impact your life? It sounds like what you discovered was that it's human connection to other humans who have had the same experience and survived it and overcome those challenges. CHRIS: Yeah, without a doubt, because I think when you're struggling with an issue, you tend to think you're alone. You tend to think the way you're thinking about your addiction to something, or your weight loss, or your body image; you tend to think, oh, this is just me. And what motivates somebody who's in that mindset is to hear somebody else who can use a certain set of language that helps them realize, wow, I'm not alone. There is other people that have gone through this particular issue. And what that does is it starts to open up the door, open up their mind in a way of, wow, change can happen. Now, you can't copy other people's habits. It doesn't exactly work that way. But what it can do is at least give you a starting place to say, "Here's somebody who I feel is like me in some ways, and they've made it to the other side. Here's some of the habits, and the mindsets, routines that they specifically have that have helped them get through this. Maybe I can try some of those on, at least as a starting place, and then I can modify them as time..." So, it really starts with the mindset and the clarity of I'm not alone and maybe there is some hope. And I think that's a really big thing when you're talking about some of these very large issues that people run into on a day-to-day basis. MID-ROLL AD: Are your engineers spending too much time on DevOps and maintenance issues when you need them on new features? We know maintaining your own servers can be costly and that it's easy for spending creep to sneak in when your team isn't looking. By delegating server management, maintenance, and security to thoughtbot and our network of service partners, you can get 24x7 support from our team of experts, all for less than the cost of one in-house engineer. Save time and money with our DevOps and Maintenance service. Find out more at: tbot.io/devops. VICTORIA: So, what lessons did you learn from your previous experience in starting a business are you taking into what you're doing now with The Standard? CHRIS: Oh my God, so many lessons. Well, I mean, here's the brutal reality is: I've chosen to go in an industry that doesn't exactly have carryover effects. I was in marketing, dealing with homeowners and contractors, and now I'm diving into mental health. So, I, unfortunately, don't get to, like, flex my black book and, you know, voilà myself into, like, success here. I've also chosen to go from marketing and generating leads to now I'm trying to build a platform, which apparently is one of the hardest things you could possibly do. But here's one that I really do take away, and it's probably not in the way that you actually intended that I would answer, but here's the biggest lesson I've taken away. When I built the first company, Jason Polka was our CEO, and Gabe Luna...it was three of us that really started it. So much of that entire journey...especially after the first five years of building the infrastructure, and you started to move out of the basement, and you had a corporate office, and, you know, you felt a little bit more legit. You started generating 10, 20 million dollars a year in revenue. I'd say from year, like, five through the time we sold it, I just wanted to sell the company. So much of the conversation became around, when is this going to happen? And it was always a grind. I mean, building a company is just tough. I mean, maybe some people, it works out, and everything's great, but it's really tough. A lot of businesses don't succeed, and we were very lucky that we did. But so much of it was me just trying to check off that final box of, like, I just want them to say, "We did it." It wasn't even really the payout. It was, just, I want to know that we were capable of doing it. And what happened is there was so much of that ten years where I wasn't enjoying the journey. I mean, don't get me wrong, like, I love the people I worked with, some great friendships. But it was so much of like, how do we fast forward this a little bit? And so, once the day happened that it was sold, and especially as I started to embark on this other side, I said, look, I'm now in my, like, early 40s. Like, that can't happen again. I mean, maybe I never sell the next company. Maybe I'm working on this for a decade or two decades. I need to enjoy the journey. Like, my kids are young once. Like, I've got this wife. I've got this life. Like, selling a company is great, but it is not the defining thing of your life. Like, you still need to live your life. And so, the big lesson I took away from it is how do I enjoy the journey as I go through this process? And I'll be honest, that is a big mind f, if you will, like, it's not an easy thing to do because as entrepreneurs, you're very much like, well, what metrics, and what's the next milestone? And dah, dah, dah, dah. And, like, dude, it's brutal. So, I'm really trying to, like, enjoy the process, even if the process is a struggle. VICTORIA: What are your top strategies for enjoying the process or making it fun? CHRIS: Well, one, take care of your mental health and your well-being [laughs], whatever that is for you. I do a lot of weekly planning. And so, when I do my weekly planning, it literally will come down to I look at my schedule, and I make sure I get my runs in there. I get my gardening in there. I get my time at my kids' events, my time with my wife. I get my workouts. I make sure I eat healthy. I do everything that I can to take as good of care of Chris as I possibly can. You know, a cliché is to say, but you can't pour from an empty cup. So, if you want to give your best to your company, your family, your friends, your community, whatever, like, you really do need to prioritize yourself. Self-care is not selfish. So, that's the number one thing I do. I'd say the other thing, too, is how do you deal with anxiety? How do you deal with this constant...and anxiety is one of the most pronounced mental health issues on our planet. 350 million people deal with this annually. It's easy to start to think about the future and to fill in the gap with the worst-case scenario, to get anxiety of, like, oh my God, I didn't do this, or I shouldn't be doing that. And so, learning to just take a deep breath, do the best job you can. Let your intuition carry you, and not be so judgmental when it doesn't turn out the way you want it. Like, I wish I had much more success at this stage of the business than I do. But I'm still making forward progress, and I'm enjoying the process, and I'm learning stuff. And could I be faster? Yeah, probably. So, I try not to over-index on what I'm not doing, and I try to just take the best next step possible and just trust it will all work out but be okay if it didn't. That's easier said than done sometimes, especially if you've never had success. I think part of it is the fact that I've been successful in selling a company. I mean, in a lot of ways, like, hey, I know I could. Maybe I can do it again. Maybe I can't. And I'm okay either way that that pans out. VICTORIA: I think that part about being okay if it doesn't is so important. And tying that together to what you mentioned earlier about being financially stable enough to invest in what you want to invest in, like, it's a really big, important thing for founders. And I think if you're constantly worried about how am I going to pay myself? How am I going to pay my bills? You're not really going to be focused on building the best product, or actually solving the problem, or being willing to pivot in a way you need to to create something that is going to last and be really impactful for people. I think that's really interesting. In climbing, there's some...it teaches me that because I have some projects that probably I might never complete them [laughs]. They're really hard. The people who actually create videos of themselves climbing it are, like, six feet tall, and I'm never going to be six feet tall, but I just try to enjoy the hike up to the climb. I enjoy going up to this little boulder and just, like, touching it and feeling it. So, I'm curious if you could say more about how are you thinking The Standard will solve that problem and, like, create that connection for you and, like, solve your anxieties as, like, a founder about, is this company working well enough? Do you connect people in that same way as well? CHRIS: There's a famous quote that says, "It takes seven years to become an overnight success." I mean, maybe in some ways, it even takes longer, depending on what you're trying to build here. And, I don't know, success is somewhat arbitrary. You know, like, I remember when I got the call that we sold our first company, which was the moment I was waiting for, I remember getting the call. I was driving home. "Hey, we did this. Here's your payout." I did not feel any more successful in that moment. Like, it wasn't like that checked off the box. I'm like, well, there I go. I'm super successful now. It was like, now what? You know, my kids didn't, like, hug me and be like, "Oh, successful dad sold companies," you know, it wasn't. It was like, you know, life continued. And it was just such a powerful reminder of so much of the significance that we put on things is like, it's us. Like, I don't want to say nobody else cares because, you know, a lot of entrepreneurs are trying to build products that, you know, change the world, make a meaningful difference to people's lives. And we do put a disproportionate burden on ourselves of, like, God, if I don't do this, maybe it just doesn't get done. I think, for me, when I'm building The Standard, I try to, one, I always try to think of like, enjoy the journey. Am I doing things that I enjoy doing? So, we started a podcast last year. I mean, The Standard, like, so just a quick on timeframe, I mean, I spent a year building it. So, I did all this research for about two years, including hiring you guys. I got to the place where I'm like, okay, I think I got a concept, not product-market fit. I just got a concept, and I want to start to build that out into reality. Hired a designer, really great designer. Found him, you know, cold-called him, got him involved. Took us six months to build literally, like, a wireframe of like, it could look like this. And then I was like, okay, great. Now I'm going to go sell that to a VC and, like, convince him to give me millions of dollars. And I was like, and then I quickly realized, like, you absolutely have nothing at the moment, Chris. Like, there's nothing here. There's, like, you think you got something, like, you've got nothing. Like, there's no users. I mean, you got literally nothing here. And I was like, okay, great, so nobody's going to give me any money for this. Where do I go from here? And then I was like, well, I need to build something to see how people interact with it. So, then I decided to go through a no-code platform when I spent ten months teaching myself how to build something using no-code. So, I used bubble.io, which was a really great product. Now, that was a big mind cluster right there because I'm not a coder. I'm sort of the visionary of a product. That's, like, I'm not the technical expertise. But I didn't have a CTO. So, I was like, I need to solve for this problem. So, I taught myself how to use this. That was incredibly painful but incredibly rewarding because I know how to build something. So, then I built this, and then we beta test the launch, but now I'm like, okay, [inaudible 24:46] I built this, but I don't even know if it's a product-market fit. I don't even know if I built the right thing yet. Now, I got to see people who will interact with it. And then I was like, well, then how do you even get this thing to be exposed to the world? Like, it is just every step along the way; there's some mountain that seems insurmountable. You find a way to get to the peak, and then you realize there's a larger mountain that's [laughs] right behind it. And so, then it led down to, like, how do I get people to be aware of what I built? Played around with that for six months. And then, I was like, I got to start a podcast, like, now I'll interview people. And so, it's just a constant iteration of, like, toying around with some stuff. And look, there's plenty of things I do that I'm like, that clearly fails. And I think the question I ask myself a lot with the things that don't work is, did you give them enough time to be successful? Did you go about them in the right way and then decide to pivot? And, like, you won't always know all the answers to that. So, I think the point in giving sort of that timeline right there is it's a constant evolution, and you just do the best job you can and be okay with how the sort of the cards fall. VICTORIA: Yeah. And if you fail or it doesn't work how you expect it, it's like, well, did I learn something? And did I have fun doing it? [laughs] CHRIS: And if you take care of yourself along the way and you haven't sacrificed your own mental health and your well-being, your relationships with your kids, your partner, whoever it is, then at least you, like, if you fail, you're not like, and now I'm 30 pounds overweight. I'm miserable. My mental health is suffering. Like, you've got to balance that out. And so, I think that's going back to enjoying the journey as like, don't lose sight of the things that are really important. Building a company, yes, important, and for some people, it is really important. But at the end of the day, your health, your sanity are the most important things that you have. And so, I see all too often that a lot of entrepreneurs and just people in general are willing to literally kick that to the curb to chase some prestige, some recognition, some financial gain. And look, man, like, you know, there's plenty of rich people out there that are completely miserable, that are unhappy. I always think of Steve Jobs a lot. He had really lot of good...he did a commencement speech at Stanford when he was diagnosed with cancer. And, I mean, this is one of the most successful business people on our planet. Apple is the most successful company today at three trillion dollars or so market cap. And here's the visionary of the company. And when he was diagnosed with cancer, all he wanted was more time. It wasn't like, oh, I need more time to build another product. It's like the dude just wanted to be around longer. It didn't matter how many billions of dollars he had or products. Those were things that sort of fell to the wayside. It was all about his health. So, point being is like, just over-indexing on success and not really looking at what is success; success is your mental health, your well-being. That is real success. VICTORIA: Yeah. Wow. I can relate to that, too. I had, like, at a very young age, decided, oh, I'm going to be, like, an IT project manager. And then I got my PMP certification and I was like, oh, well, what do I do now? [laughs] What's the next thing? And it's just like, keep going and going and going. So, enjoy the moment, you know, love the journey, and prioritize that above those things. And that includes, like, learning, learning all these different parts of, like, how to build a business and how to build product. It reminds me of a journey that we hear where you could have a great idea and you're like, oh, I need to design it, and then I need to build it. And then, like, a year later, you're like, wow, I haven't talked to any users yet [laughs]. It's like, I don't actually know anything about what people want. And that's a really difficult thing to do. And it's a very emotional journey as well to go out and talk to people and try to ask questions in a way that doesn't give you false positives or false negatives and being able to leave your ego to the side and actually connect with people and hear about their problems. So, how has that been for you? Has there been anything in your discovery process that has surprised you and caused you to pivot in direction? CHRIS: And although you didn't ask the question in this way, a recommendation I would have for a lot of people and, you know, if you read The Lean Startup, it's a good book. It's one worth reading. I read a lot of product books and stuff. I would say, like, imagine you have no money. How will you test your concept? Like, so, like, I came into building this with some capital behind me, my own capital. And it's just easy to spend money, and not that I was naive to think spending money you do need to invest in some things, but I wish I had a lot less money than I did coming into it because I would have spent a lot less money. And I think you don't need a tremendous amount of money to start to get that user feedback that you're suggesting. I think there's some very organic ways that you could do it. And you really got to imagine, like, you have nothing. Like, how will you test this with $100? I was listening to a podcast episode the other day on the founder of Boston Dynamics. He was being interviewed, and it was a really cool one. Boston Dynamics is one of the leading robotic companies out there. And this guy had, you know, started the company 30 years ago, and he was walking through some of his early days. And he's like, he was talking about building the pogo stick robot and how he only had, like, I think it was, like, it was either a hundred or a thousand dollars to, like, build this robot, or maybe it was 3,000. It was a really, really low amount. And he basically was trying to build a robot that, like, jumped up and down on, like, a benign budget himself. It was a complete failure, but he learned some things through it. But he had enough success in that that when he then pitched that concept to the next person, I think it was, like, some congressional person, they gave him, like, a $250,000 budget, which was, like, back in 1980. But the point being is like, he had so little to start with, but he was still able to get some success. Versus if he had had 250,000, I don't know that he would have figured it out at that moment. He would have spent a lot more money. And so, I think for entrepreneurs that are starting something out, you're so right: the product-market fit is huge. It's hard not to get false positives. It's hard not to just hear what you want to hear. And so, what I've learned is that, like, there's a difference between what people say and what people do. And what you need to be doing is paying attention to what people actually do, not what people say. I interviewed lots of coaches across the planet. I'd share this idea. And, I mean, I had a phenomenal, like, 90% of them were like, "Chris, this is amazing." They would share some of their personal videos with me. And I'm like, wow, God, like, everybody thinks this is a great idea. And then, I started to realize like, it's probably because I'm decently looking. I can talk to people well. Like, there's a little bit of a me factor. I was like, well, what happens when I take me out of the equation? Will still 90% of people still think it's a good idea? And the answer was like, no. It completely changes. If I'm not there to navigate or provide the narrative, which, as entrepreneurs and founders, we're typically the storyteller, but if you remove me and I just show you it, you'll be like, "Ah, it's cool." But, I don't have enough of the expertise in product design and the sticky factor. I haven't found the right combination for somebody just to interact with and be like, "This is pretty sweet. I want to use it." So, going back to your original question, is like, you need to do more of that, and you need to learn how to do that stuff. I am still like you at surfing. I'm a novice at this. Like, I'm out there trying, but I am crashing all the time. And I am constantly trying to get back up and figure out how can I do this better and not provide an illusion that I'm getting it right, really paying attention to what do users actually like and not like? I am far from figuring that out. I'm still dedicated to doing it, but by no means have I hit a home run here. VICTORIA: What keeps you motivated? What keeps you going and trying to solve that question? CHRIS: You know, it goes back to an original statement I made with you is like, life is so hard for so many people. I jokingly will tell people, I said this a lot when I was interviewing coaches, is like, look, I'm very aware of my privilege. I'm a white, male who lives in Northern California in the U.S. I was born in the '80s. Like, I did not grow up with, like, this insurmountable, you know, adversity that I had to overcome. Like, there's a lot that was easier for me to obtain in my life. And look, I work really hard. I am incredibly focused. I put in a lot of work. I'm very focused in that way. But I also just recognize, like, it might have been different if I was born somewhere else, if I looked a different way, if I didn't have access to the resources that I did. And so, my point with that statement is that I am a massive believer that whatever excess currencies you have, time, capital, energy, whatever it is, it is our obligation to help as many people on this planet in whatever way we think we can help them. There are 800 million people on our planet that don't have clean drinking water, which is mind-boggling to me, considering the age we live in. I mean, we take it for granted you turn on the faucet and water comes out. That is a luxury that we have in living in the United States and in the Western Hemisphere. I mean, when you think about 800 million, that's almost 1 out of 8 people that don't have clean drinking water. And that's just drinking water, let alone access to vaccines or whatever you may choose. And so, the point that I'm making is that for those of us that have excess of anything, and maybe it's just time, or maybe it is you have a lot of money, we should be doing the best job we can to help other people in the ways that we think would help them. For me, I'm focused on mental health and well-being. For somebody else, that might be providing good food, or medicine, or whatever it may be, and that's okay. We just need more people contributing to, hopefully, you know, lift as many people up to the point that we all have good lives. That's what keeps me going is the fact that, like, I don't take for granted for one second how easy my life is. VICTORIA: I love that. And I like that you're trying to build technology that helps people and isn't just trying to, like, make the most money you can, or try to, like [laughs], flip it around or just share something that, you know, is really personal to you and, like, really is meaningful to you. So, I really appreciate you sharing that with me. What does success look like six months from now or even five years from now? CHRIS: Look, success for me is pretty much what I've stated this whole episode is, like, I'm taking good care of myself. I'm very present in my life with my wife, my kids, my friends doing things that make Chris happy. That's what success looks like. Now, clearly, we're here talking about The Standard and growing, and so I'd love to see more progress being made. I'd love to see more users on the platform. I'd like to be learning and figuring out, how do I help people share their story in a way that empowers them to share that story? How do I get people to want to share their story that don't feel like they have to be paid to do so? You know, what I find so interesting when I talk to so many people and, you know, I ran 45 episodes of our podcast this year. So, I talked to a lot of people that have gone through some adversity, and they'll all say the same thing, "Dude, I will help anybody that is going through what I've..." Like, nobody wants to see somebody struggle, especially when you know how hard adversity is, whatever that may be for you. You don't want to see other people struggle because you know how painful that is. I want to see people who are willing to quote, unquote, "give back" and say, "Look, if I can share a few things about how I've navigated my adversity, whatever that adversity is, because it will benefit other people going through this, I don't need to be paid for that. I just want to share it because it's sort of the right thing to do. It's sort of a pay it forward." I think in today's age, like, in the creator economy, like, everybody's like, "Well, I'm not going to help out unless I get paid." And, like, look, that might be a very privileged statement that I'm making, that I have the luxury. But when I build The Standard, right or wrong, and some people would argue, "This is, like, the dumbest business model ever, Chris," is like, I don't think about monetization. Like, I'm not like, how do I get paid on this? Is it ads? Do I charge people? Like, I'm just trying to build something that I think actually will help people, and I'm trying to do it for the right reason. So, it's people before profit. But, at one point, there has to be money involved to some extent. But I don't put the money part first. I put the people. How do I get that right? So, my hope would be, in 5, 3 years, whatever the time would be, is that more people buy into the message and they're like, look, if all it takes is me to spend 20, 30 minutes to create a couple of videos on my habits and share a little bit of my story, and there's a way to memorialize some of the things that I've learned for the benefit of other people going through it, that's great. That's a drop in the bucket of my time. That if enough people started to do that, it would send a signal to a wider swatch of our community, or people, or species that it's okay to share some of the things that make you who you are. And if you did that, it lets somebody else do that. And if you get enough people doing that, you build a phenomenal habit bank, if you will, of just stories that other people can leverage for their own benefit. That would be success from my perspective. I try not to attach a certain amount of users. It's really just like, can I start to convince more and more people that you probably already have some information that would be really valuable to other people? I'm just trying to organize it in a way that someone can find it, but I need people to share their story because the platform is not about me. Although I'm on it, it's not about Chris Pallatroni. It's about you. I mean, I'm sure you've gone through things in your life that you've learned, and you've navigated that. If you could share that in a way that was authentic and easily organized, other people would hear your story and be like, God damn, that's me too. I'm just trying to get more people to do that. That would be success in my mind. VICTORIA: Well, it reminds me of a program I'm involved with. You might have heard of Big Sister, Little Sister, or Big Brother, Little Brother. It's a mentorship program. So, you have a one-on-one relationship with someone who's...like, the little sister I have really reminds me of myself when I was that age, like, you know, early high school awkwardness, trying to figure out how to navigate friendships and family life and getting a lot of pressure on, like, what are you going to do with your career? Even though you're still, like, really young. So, it's interesting to think about how could you scale that and, like, have more content, like, take some of the little bits of conversations we have and, like, share that with other people who are going through the same thing. CHRIS: Yeah, it's exactly that. And there's lots of stuff out there. I mean, you think of, like, you know, Alcoholics Anonymous like, in a lot of ways, that is it. Or people that have gone through school shootings, like, they find a lot of comfort in talking to other people that have navigated that. Like, there is no topic that does not touch mental health and well-being. Like, there's none. Like, I mean, I've read them all. And so, it's just about taking people...and this is the beauty of it, like, sure, there are experts out there, Mel Robbins, Tony Robbins, you know, they've read. Their whole life is about self-development and empowerment. But if you take an average person somewhere in the world and maybe they have read notebooks on self-development or any of that, and you just start to dissect their experience as a human, what I know to be true is that they'll say, "I went through this," whatever this may be. And if you start to unravel the, how'd you cope with it? What did you learn? What habits did you develop? What mindsets did you develop? There is profound wisdom. It may not be textbook. They may not understand the science behind it, but what they will share is something that is very real and that it's said in a very authentic way. And the words they use are incredibly powerful that if you could just capture that in a very authentic way and store it, and most importantly, find a way to organize it so it's easy for somebody to find, that's what this is about. And so, there's lots of this that exist out there. There's just no central mechanism that tries to tie this all together. And so, that's sort of what I'm attempting to do. VICTORIA: That's really cool. Thank you so much for coming on and sharing your story and talking about what you've been building. Is there anything else that you would like to promote? CHRIS: No, not at all. I mean, I would just say, like, if anybody's interested, like, the platform that we have is thestandardapp.com. It's not an app; that's just the URL for it. Or you can find us on pretty much any social channel. It's just The Standard. We do run a podcast, which is The Standard Podcast, where we interview a lot of the coaches. But any one of those things will give you a really good idea of what we're trying to do. And if you feel like you've got something of value, we'd always love for more people to come on and just share their story in a way that's authentic to them. And that's really what we're about. VICTORIA: Awesome. Thank you so much. You can subscribe to the show and find notes along with a complete transcript for the episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on X @victori_ousg. This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time. AD: Did you know thoughtbot has a referral program? If you introduce us to someone looking for a design or development partner, we will compensate you if they decide to work with us. More info on our website at: tbot.io/referral. Or you can email us at referrals@thoughtbot.com with any questions.

The End of Tourism
S5 #4 | Hillwalking & Homecoming in the Highlands w/ Christos Galanis

The End of Tourism

Play Episode Listen Later Mar 28, 2024 62:33


On this episode, my guest is , a friend and scholar who recently completed his PhD in Cultural Geography from The University of Edinburgh where his research centered on themes of displacement and memorial walking practices in the Highlands of Scotland. A child of Greek political refugees on both sides of his family, Christos' work looks at ways in which ceremony and ritual might afford us the capacity to integrate disconnection from place and ancestry. Further, his research into pre-modern Gaelic Highland culture reveals animistic relationship with mountains which disrupt easy definitions of colonialism and indigeneity.Show Notes:Summoning and Summiting a DoctorateThe British Empire & EverestThe Three Roots of FreedomHillwalkers and HomecomingThe Consequences of Staying and LeavingThe Romans Make a Desert and Call it PeaceFarming EmptinessLandscapes as MediumsRitualized Acts of WalkingHomework:Christos Galanis' Official WebsiteTranscript:Chris: [00:00:00] Welcome, Christos, to the End of Tourism podcast. Christos: Thank you, Chris. Chris: Thank you for joining me today. Would you be willing to let us know where you're dialing in from today? Christos: Yeah, I'm calling in from home, which at the moment is Santa Fe, New Mexico in the United States. Yeah, I moved out here for my master's in 2010 and fell in love with it, and and then returned two years ago.So it's actually a place that does remind me of the Mediterranean and Greece, even though there's no water, but the kind of mountain desert. So there's a familiarity somehow in my body. Chris: Sounds beautiful. Well I'm delighted to speak with you today about your PhD dissertation entitled "A Mountain Threnody: Hill Walking and Homecoming in the Scottish Highlands." And I know you're working on the finishing touches of the dissertation, but I'd like to pronounce a dear congratulations on that huge feat. I imagine after a decade of research and [00:01:00] writing, that you can finally share this gift, at least for now, in this manner, in terms of our conversation together.Christos: Thank you. It was probably the hardest thing I've done in my life in terms of a project. Yeah. Nine years.Chris: And so, you and I met at Stephen Jenkinson's Orphan Wisdom School many years ago. But beyond that from what I understand that you were born and raised in Toronto and Scarborough to Greek immigrants, traveled often to see family in Greece and also traveled widely yourself, and of course now living in New Mexico for some time. I'm curious why focus on Scotland for your thesis? Christos: It was the last place I thought I would be going to. Didn't have a connection there. So I did my master's down here in Albuquerque at UNM and was actually doing a lot of work on the border with Mexico and kind of Southwest Spanish history.I actually thought I was going to go to UC San Diego, partly because of the weather and had some connections [00:02:00] there. And two things happened. One was that you have to write your GRE, whatever the standardized test is you need to do for grad school here in the US, you don't have to do in the UK. So that appealed to me.And it's also, there's no coursework in the UK. So you just, from day one, you're just doing your own research project. And then I wanted to actually work with what Was and probably still is my favorite academic writer is Tim Ingold, who was based in Aberdeen up in the north of Scotland and is kind of that thing where I was like, "well if I'm gonna do a PhD What if I just literally worked with like the most amazing academic I can imagine working with" and so I contacted him. He was open to meeting and possibly working together and so I was gonna fly to Scotland.I was actually spending the winter in Thailand at the time, so I was like, if I'm gonna go all the way to Scotland, maybe I should check out a couple more universities. So, I looked at St. Andrews, which is a little bit north of Edinburgh, and then Edinburgh, then visited all [00:03:00] three schools, and actually just really fell in love with Edinburgh, and then in the end got full funding from them. And that took me to Scotland. And I didn't know what was in store for me. I didn't even follow through on my original research project, which had nothing to do with Scotland. The sites that I was actually proposed to work with was on the Dine reservation out here in Arizona. There's a tradition, long tradition of sheep herding and there's a lot of, some friends of mine have a volunteer program where volunteers go and help the Diné elders and herd their sheep for them and what's happening is they're trying to hold on to their land and Peabody Coal, a coal mining company, has been trying to take the land forever and so by keeping on herding sheep, it allows them to stay there.So I was actually kind of looking at walking as forms of resistance and at that time, most undocumented migrants trying to enter Europe were walking from Turkey through Macedonia. So I was actually going to go there. And yeah, once I kind of hit the ground, I realized that that's way too ambitious.And I [00:04:00] decided to focus on this really strange phenomenon called Monroe Bagging in the Highlands of Scotland, where people work all week in their office, Monday to Friday, and then spend their weekends checking off a task list of 282 mountains that they summit. There's 282 of them and they're categorized that way because they're all over 3, 000 feet, which for us in North America, isn't that high, but for the Scottish Highlands, because they're very ancient, ancient, worn down mountains is pretty high.And also the weather and the climate and the terrain make it pretty treacherous out there. So it's, it's not an easy thing. Yeah. And I just thought this is a really weird, strange way to relate to mountains and to land. And it seems like a very British thing to do. And I kind of just got curious to figure out what was going on and why people would actually do this.And it came from a very, actually, critical perspective, to begin with. As things unfolded, that changed a fair amount in terms of getting to know people. But, yeah, that was Scotland. And, I think looking back, I think [00:05:00] I was called there by the mountains. I can give the bigger context maybe later on, but essentially one of the main mountain called Ben Cruachan, in Argyle that I ended up most working with and kind of going in and doing ceremony for, and with. I ended up later meeting my what would become my wife and married into her family and on one side of her family, they are literally the Macintyres who are from that mountain. So yeah ended up kind of going there and marrying into a lineage of a mountain that was the center of my my dissertation.So in the end I think I was called there. I think I was called to apprentice those mountains. And then I feel like my time ended. And I think this dissertation is kind of the story of that relationship with that courtship.Chris: Beautiful. Well, thank you so much for that beautifully winding answer and introduction. So, you know, a lot of your dissertation speaks to kind of different notions of mountain climbing, summiting, hiking but you also write about [00:06:00] how our cultural or collective understandings of mountains have defined our ability to undertake these activities.And I'm curious, based on your research and personal experience, how do you think mountains are understood within the dominant paradigm of people who undertake these practices. Christos: Yeah, good question. I would say, I know I don't like to speak in universals, but I could say that one universal is that, as far as I can tell, all cultures around the world tend to not only revere mountains, but tend to relate to mountain peaks as sacred.And so in most cultures, at least pre modern culture, you will always find a taboo around ever actually climbing to the top of a mountain, especially a significant mountain. So ways that you might worship a sacred mountain, for example, you know, in Tibet is to circumnavigate. So hiking, walking around a mountain three times or walking the perimeter of a mountain, kind of circling [00:07:00] around and around the summit.But it would be absolutely abhorrent to actually ever climb to the top. So one thing I was interested in is what happened, what shifted, where in the past people would never think of climbing a mountain summit to that becoming almost the only thing that people were focused on. And I didn't know this, but out of all countries, the country that most intensely kind of pursued that practice was, was England, was Britain, actually.So it's really fascinating. There's this period, the Victorian era, where basically Britain is invading other countries such as Nepal, India, into China, into Kenya, parts of Africa, South America certainly here in North America and the Americas and of course mountain ranges serve as pretty natural and intense frontiers and barriers, especially back then before. You know, industrial machinery and airplanes and things [00:08:00] like that, you're going over land. And so to be able to get through a mountain range was a pretty intense thing. Really only became possible with kind of Victorian era technology and because they were able to penetrate these places that people really couldn't have before it was a way of kind of proving modern supremacy or the supremacy of kind of modern secularism.Because even in places like Sutherland and the Alps, the indigenous Swiss also considered like the Alps sacred, the mountain peaks and wouldn't climb them. And so as the British kind of came up into these mountain ranges. They had the idea of proving that essentially there were no gods on these mountaintops.There was nothing sacred about them. It's just a pile of rock and anybody can climb up and nothing's going to happen to them. And so they really started setting out to start summiting these mountains. And it was mostly military engineers. There's a big overlap between kind of military engineering and surveying and [00:09:00] map making and this kind of outdoor kind of Victorian kind of proving your manhood against nature kind of thing.And so it's a strangely poetic and very grief soaked proposition where increasingly humans had the technology to penetrate anywhere on the planet, you know, more and more. And maybe I'll just go into the story of Everest because it was perceived that the, the earth had three poles.So the North pole, the South pole, and Everest is the highest peak on the whole planet. So there was this race to set foot on the North Pole on the South Pole and on Everest. I don't know much about the North and South Pole expeditions I think they were first but Everest was kind of like yeah I think Everest was the last literally the last place on earth that humans weren't able yet to physically step foot on. And so the British set out to be the ones to do it after World War one. And there's another overlap where most of the men that were obsessed with mountain summiting after World War I had [00:10:00] been through the horrors of World War I and had a lot of PTSD and shell shock and kind of couldn't reintegrate back to civilian life.They kind of needed that rush of risking your life for some kind of larger goal, which warfare can provide. And, slowly they kind of got better technology and eventually by, I think it was maybe 1952, 1953, they finally conquered Everest. And it's almost like the moment that they penetrated this last place of wilderness that was holding out the British Empire started collapsing, which the timing is quite fascinating. You know, they lost India and Pakistan. And as soon as you kind of are able to dominate everything, there comes this nostalgia immediately for wild places. And this is where Scotland comes back in. Where, Scotland, the Highlands have been inhabited for tens of thousands of years.There's nothing wild about them. There were villages everywhere. But what happened through the [00:11:00] 16, 1700s was the Gaelic population, the indigenous population were ethnically cleansed. And then kind of the lands that follow for maybe 100 years. And then when the English started coming in, they were like, "Oh, this is wilderness.These mountains have never been climbed before. We're going to be the ones to conquer them because we're the superior race." And they did so, and when I chose the the title of my thesis used this little known word, Threnody, which is actually from Greek, Threnodia, which translates something as like a song of grief or a song of lament.And I think for me, this incessant kind of like summiting of mountains and risking and sometimes losing your life to penetrate these places where you actually don't retain control, or it's very hard to retain control, right, because of like storms in the weather, that it's almost like a kind of mourning for the loss of the very things that this technology has kind of erased or has compromised.So it's almost, I can't even put into words the feeling around it, but it's almost like, [00:12:00] You're doing the thing that's destroying something, but you have the impulse to keep doing it as a way of connecting to the thing that's being lost, if that makes sense. And I can imagine, you know, maybe all the work that you've done around tourism might have a similar quality to it.There's, I don't know, there's like a melancholy that I experience interviewing and going out with these people that I don't think they would ever be conscious of or even name, but there's a longing for something that's missing. And so that's where also this kind of song of lament theme comes into my, into my dissertation.Chris: Yeah, it's definitely something that shows up over and over again in these conversations and thank you for putting it into such eloquent words is that. I think it really succinctly speaks to the, the condition or conditions at hand. And I guess I'm curious you know, in regards to what you just said about notions of freedom [00:13:00] that are often experienced in touristic experiences or contexts and some of your dissertation centers around the freedom that your friends and hill walking acquaintances experienced there in the Highlands and freedom can often seem like a kind of recurrent trope sometimes in describing the tourist's reasons for travel.And surely outside of a trope for many people's reasons for travel you know, especially in the context of migration. Beyond the surface, we can wonder about the inheritance of ancestrally or ancestral indentured servitude, the commons and the lack thereof in our time and also like a kind of communion or relationship with what you refer to as other than human worlds. And I'm curious what kind of contradictions or insights came up for you in regards to the supposed freedom that was either found or sought after by the Hillwalkers you encountered.[00:14:00] Christos: Thank you. Yeah, I think before I started going deep into this, I probably, I probably shared most people's notion of freedom, which most of us don't ever really sit and wonder that deeply about.But there's a section of my dissertation where I go deep into freedom and I actually look at three different cultural and kind of etymological or linguistic lenses through which to understand freedom. And there's two that the people I interviewed, I think, were most practicing. So the word freedom itself comes from the Germanic, and it's two words.It's broke frei, which is "free," "to be free." And dom, translates kind of as "a judgment." So if you know like doomsday or the doomsday book. What the doomsday and judgment day actually mean the same thing It's just doom is like the older Germanic word for judgment. Okay, and so freedom can kind of translate as like freedom from judgment freedom from constraint and it has this quality of like spatially removing [00:15:00] yourself or getting distance from something that might constrain you, so you mentioned indentured servitude and slavery, which are as old as human civilization across the world.And all these different things that, basically, we are more or less constrained by, whether it's, family, the state, our living conditions, poverty, excess wealth, you know, all these things that might, or the expression of our true life force. And so for a lot of the people that I was working with, that was certainly what they would describe, you know, like I work in an office as a manager Monday through Friday in Edinburgh, and then it's only on the weekends that I get out into the hills and I truly feel alive and free, right? Because I'm in this vast expanse and, I mean, It's not my climate. I'm Greek by both sides. Wet, soggy moss and mold and endless rain and drizzle and cold and dark is not my thing, but it is visually stunningly beautiful. And you know, [00:16:00] and I'm sure we all know the experience of getting up to a peak of something and that sense of kind of almost being removed from the everyday and that sense of like maybe connecting to something higher or bigger.So that sense of freedom is obvious. The other, another lens is through Latin liberty or libertas, which comes from ancient Roman society, which was a heavily hierarchied society where up to 60 percent of people were actually slaves. So, there's a big distinction between those who are free and those who are slaves.And so the idea of liberty, and this also came up with my informants is the idea that you have to compare yourself to another and the more freedom you have compared to someone else, the better it feels. And I think of that as all the mechanics of like air airports and you know, first class lines and first class seating.I had the experience once flying because flying from New York through back to [00:17:00] London to get back to Edinburgh. And for the first and only time in my life I was bumped up to first class for some reason, I don't know why. But it was on, I don't know, one of the newer kind of jumbo jets, and the difference between economy class and first class in many ways is pretty profound.At the same time, it's ridiculous because you're all sitting in the same tube. But I remember the feeling that happened once we took off and they drew the curtain between the first class and everyone in the back. And it was this experience where everyone back there just disappeared.It's just kind of like, you can't see them, they're out of sight, out of mind, and you're just up front. You can lay down completely horizontally in these chairs, you have real glass, glassware and real cutlery, you know, and people treat you super, super nice. But like, in order to enjoy that, you need other people to not be enjoying that, right?So the idea of liberty kind of requires another, or it's almost a zero sum game where someone else has to be losing for you to be winning. And you know, I think of that with tourism, the idea that those of us from the North, you know, are stuck [00:18:00] at home in the winter while those with money, you know, can fly off to Mexico or Costa Rica and stuff like that.So that difference that like your experience is enhanced by other people's discomfort or suffering. And then I came across another lens, which comes from the Greek. So the Greek word for freedom is Eleftheria. And I didn't know the etymology, but one of my office mates in Edinburgh was from Greece, and we sat down with like a Greek etymological dictionary and I discovered that the Greek notion of freedom is completely different.It's almost counterintuitive, and it translates as something close to " loving the thing you were meant to love" or like "being the thing you were meant to be." And even more distinctly, the rios part in Eleftheria would translate into something like "returning to your home harbor after like a long voyage," and it's that, it's literally the experience of coming home, [00:19:00] which in a way is the freedom of not wanting to be anywhere else or to be anyone else, which is in some ways, I think to me, the most true freedom, because you don't want for anything, you actually love everything you are and everywhere you are, and you don't want to go anywhere else.So in that way, I think for me, cultivating a connection to place as an animist, you know, and I think that's a lot of what you and I I imagine experienced, you know, listening to Steven Jenkinson's many stories that keep circling around this idea of, you know, belonging is cultivating that place in you or that muscle in you that doesn't want to be anywhere else, doesn't want to be anybody else, but is actually satisfied and fulfilled by what is, which it's probably at the heart of most spiritual traditions at the end of the day, but to think of that as freedom, I think for me, really, really changed my perspective from, the idea of going around the world as I have and certainly in the past to experience all these different things and to [00:20:00] feel free and to be a nomad versus I would say the freedom I have here of loving Santa Fe and not imagining myself being anywhere else right now.Chris: Well, the theme of homecoming is definitely woven into this work, this dissertation, alongside hill walking.They seem, generally speaking, superficially very disparate or distinct activities, homecoming and hill walking. One is going and then it's coming. And I'm curious if you could elaborate for our listeners a little bit of what those terms mean, and where or how they come together in your work.Christos: Yeah. So the title of my dissertation, you know, is a "A Mountain Threnody: Hillwalkers and Homecomers in the Highlands of Scotland."So I set out to study hill walkers, which is basically a British term for going out for a walk or a hike where the focus is summiting some kind of peak, you know, whether a hill or a mountain, but that's what most people do there. When you set out on a walk, it's just assumed that you're going to end up going to the top of something and then [00:21:00] back down.What ended up happening is actually through Stephen Jenkinson's Orphan Wisdom School, I met several other Canadians of Scottish descent who had already or were planning on going quote "back" to Scotland to connect with their ancestral lands and their ancestors which is a lot of the work with Stephen's school and that, you know, that idea of connecting with your ancestry and with your roots and with your bones.And I kind of just started following along and interviewing people and talking with people that became friends just out of curiosity, because, you know, that's a lot of my background with being first generation Canadian and growing up in a huge Greek diaspora in Toronto and speaking Greek and going back to Greece multiple times and this idea of kind of being Canadian, but really home is in Europe and Greece, even though I've never lived there.So, there's a lot there, personal interest and eventually against my supervisor's advice, I was like, this might be an interesting [00:22:00] conversation to put these two groups together, these people who are spending their weekends summiting mountains in the Highlands and then these other people coming from Canada and the US and New Zealand and Australia who are going to the same mountains to connect with their ancestral, you know, lands and and people. And these two groups are probably the two biggest sources of tourism, like, in the Highlands, which is fascinating. Wow. Except that the one group, the Hillwalkers tend to imagine that they're in a pristine wilderness and that there's never been anybody there. And the homecomers like to imagine that the hills used to be covered in villages and their own people that were there for thousands of years and that they're reconnecting.So it's interesting how the same landscape is both imagined as being repopulated and also emptied. And that both groups are kind of searching again for this kind of belonging, right? This belonging through freedom, for this belonging through ancestry. The other piece that gets, [00:23:00] well, you know, we're interviewing this, we're doing this interview November 21st and we're, I think most people these days are pretty aware of what's going on in Israel and Palestine and this idea of home because to have a homecoming means there has to be somewhere out there that you consider your home.And that's such a loaded, loaded, loaded concept, right? Like many wars are fought over this idea of who a land belongs to, right? I mean, I know you and I have talked about both our families being from the borderlands with Greece, Macedonia, Albania, and those borders just change over and over and where you belong to what is home keeps changing depending on which war has happened, which outcome and things like that.And I think for those of us, I'll say in the Americas, who don't have deep roots here this idea of home being somewhere else other than where you live, is a very complex prospect because certainly when I go to Greece, people don't recognize me as being home, you know, they, they consider me a Canadian tourist. And at the same time growing up in Canada, I certainly never felt [00:24:00] like, "Oh, Canada is like my ancestral home. You know, it's, it's skin deep. My parents came over in the sixties. Right." So this idea of homecoming and, you know, maybe we can just riff on this for a bit. Cause I know you've explored this a lot. It's like, is it tourism or is it something else? Because a lot of people in Scotland, including people I interviewed, just laugh at these Canadians who come over and just start crying, standing over some rocks in the Highlands and who will buy some shitty whiskey at a tourist shop and feel that they're connecting with their roots and buy bagpipes and by kilts and all this stuff, whereas like most Scottish people don't wear kilts and don't blow bagpipes and don't necessarily drink whiskey all day, so there's these kind of stereotypes that have often been just kind of produced by the media, but it's almost like, other than that, how do people actually connect with the homeland, right?Like, what does it even mean to connect with a homeland? And one thing that I found that I think is one of the most powerful things is the idea of walking. So [00:25:00] this is why the comparison and the contrast with hill walking and homecoming is most people, when you go back to your homeland, there's something really central about walking in the footsteps of your ancestors, right?So walking around in the same village, walking the same streets, going to the same house, maybe even if it's not there anymore, going to... I remember going to my mom's elementary school in the little village that she grew up in the mountains of Greece and walking down the same hallways with her, and we went to the auditorium, and she, showed me the little stage where she would literally be putting on little plays when they were, like, in third grade and there's something about standing and stepping in the same place that is so fundamental. And so I'm kind of looking at homecoming through these kind of memorial or commemorative practices of walking. So it's not just walking, but walking and activating a landscape or activating the memories that are kind of enfolded in a landscape. And I've come to believe and understand that walking is a kind of almost magic technology that I [00:26:00] almost see it as really like opening up portals to other times and other places when done in a ceremonial kind of ritualized manner.So a lot of my work again, as an animist and kind of being as far as I know, the first in my field was just cultural geography, to kind of bring an animist lens to the field and kind of look at how, doing ceremony on a mountain, going into these glands and doing ceremony is more than just the material kind of walking, but is actually kind of connecting with these memories and these people in these places.In a way that's, I think, deeper than tourism and that's maybe the distinction between tourism and let's say homecoming on the surface that you might actually be doing almost the same thing, but I think there is this kind of animist lens to understand homecoming through where you let's say you bring a stone from home or you take a stone and bring it back home you know, like these kinds of Ritualize little practices that we do to connect with the place that I don't think tourists do in the same way, [00:27:00] you know?Because in tourism, you're often just trying to get away from where you live and experience something different, where this is trying to reconnect with something that's been lost or something that's in the past. Chris: Yeah, definitely. This leads me into a lot of different directions, but one of them is this question of animism that I'd like to come back to in just a moment but before we do, I want to ask you about. These heritage trips sometimes they're referred to as within the tourism industry, homeland returns which in most cases is a paradox or an oxymoron because most people are not returning to the places that they either were born in or lived in.They, typically, like myself, had never actually been there before. I'll just pull a little quote from your dissertation because I think it precedes this question in a good way. You write that quote, "the commissioner of Sutherland advocated for a state administered program of colonization in the Scottish Highlands, similarly arguing that the [00:28:00] Gaelic race and its inferior temperament presented an obstacle to the onward march of civilization. Locke set out a vision for the colonization, displacement, and reeducation of Gaelic Highlanders, where eventually, quote, 'the children of those removed from the hills will lose all recollection of the habits and customs of their fathers.'Locke's vision has broadly come true," end quote. And so, within the context of the wider spectrum and calendars and geographies that we've kind of been discussing, but more specifically in the context of Scotland, I'm curious if the people that you met there, either locals or visitors and especially in the case of those coming for a homecoming or heritage trip had an understanding of these things, of this history.Christos: No, that's what I found out. [00:29:00] What I've found in my lifetime, cause this isn't the only kind of project around this kind of theme that I've done. Maybe we'll get, I did another project with Mexican friends going back to Spain and kind of repatriating or reconnecting back through the kind of the displacement of the Spanish civil war.But what I've found is those of us of the colonies, that's kind of what I consider myself in ourselves, like people of the colonies. I'm not sure if it's better or worse that we're the ones that hold on to the stories and the memories and the people back quote "home" or in the "homeland" for the large part have moved on and don't really give much thought to these histories of displacement.It's almost, oh my God, it was strange to be in this country where most of the place names in the Highlands are Gaelic, and 98 percent of Scottish citizens cannot read or understand Gaelic, so partly it was this strangeness of being in a country where only two out of every hundred people could even understand the names of the places where they lived, even [00:30:00] though they had never left there and their people had never left there.And you know, if you let that sink in, it's like, let's say you and I being of Greek descent, imagine if 90 percent of Greeks couldn't understand Greek, you know what I mean? And couldn't understand the name of their own village. And well, there's, here's another angle to this in Scotland.When you want to learn traditional Gaelic fiddle, you go to Cape Breton in Nova Scotia in Canada because that's where the Highlanders who immigrated to Nova Scotia in the past kept the tradition pure and kept fiddle playing what it had always been. Whereas, you know in Scotland now, they're into hip hop and trap and drum and bass and stuff like this.And so if you're Scottish and you've never left Scotland in order to connect with the music of your ancestors you have to go to Canada, so most people that I interviewed and I think this is fair, you know to assume of most people Don't [00:31:00] think much about the ethnic cleansing that went on whichever side that they were on And it's kind of left to us in the colonies either to also let it go and move on and try to settle into these new lands or you kind of keep holding on to this memory of a place you've actually never lived, you know, and it's almost like both propositions are grief soaked.Both are kind of almost an impossible poem to hold because obviously there were people here before our European ancestors came. Obviously, we don't have these deep roots or memories or connections to this place. We don't have ceremonies or songs or much that's derived from this land, at least not yet.And yet many of us lose the language and the ceremonies and the traditions of the places where our ancestors came. It's almost like at least we still know where we've come from. Whereas to be in Europe, or at least in Scotland, and to have never left, but to nevertheless have also lost the connection with [00:32:00] your own ancestors and your own language and those places it's almost like a parallel process where there are people that get on the boats and leave, but there are people that are left behind. But it's almost like, regardless whether you leave or whether you stay, the fabric of that culture just gets completely rendered and torn apart by that displacement. And somehow, even though you never leave having so many of your people leave actually kind of compromises the ability to stay where you are, and to be connected to where you are. ⌘ Chris Christou ⌘ is a reader-supported publication. To receive new posts and support my work, consider becoming a subscriber!I interviewed one woman who had an ancestor who in Scotland, they call like psychic abilities, the second sight.So the idea of having kind of psychic premonitions or all of a sudden knowing that like your brother has died, even though he's in Australia, you know, that kind of thing. That people had that when I lived in Scotland and when they moved to Canada, they actually lost that ability. You know, so it's this idea that it's not that you carry almost these knowledges or abilities just in you, but it's actually comes from the connection [00:33:00] to the place.And once that connection becomes severed, you lose those capacities. And I've actually never said this out loud, but I wonder how much the people that stayed behind actually lost because of all the people that left, if that made sense. It's almost like, how does a culture stay resilient when almost everyone between the ages of like 20 and 40 leaves and never comes back.I think you could consider that this is all just stuff to wonder about. But like, for those of us that come from these kind of like largely settler countries like Canada and the U. S, we're still living through these questions. We're still living through these implications of like, how long do you hold on to the past? And at what point do you just kind of let go and move forward? And If you do so, how do you move forward in a place that you don't have any roots?Chris: You know. I remember going to see, going to my father's village in northern Greece for the first time some eight years ago, and knowing that I had [00:34:00] one baba or grandmother left there, and after searching for a few hours, she was hard of hearing at the time, finally found her, finally found the house and shared a delicious meal and traded photographs.I had no Greek or Macedonian language ability at the time. And then I was I called a taxi later on some, you know, at the end of the day to go back to the city, to the hotel, and standing in her garden there, she began to weep, right, without having said anything, even with the language barrier, I could understand what she was saying, and she was, she was mourning the migration of my family or my side of the family, or my father's side of the family to Canada, and then, her son and his family to Germany.And so, there's this question of what comes upon the people that quote unquote "stay." that's so often lost in the discourses [00:35:00] around migration, kind of always focusing on the individual, the migrant themselves, or the places that they arrive in.But do we just let it go? And how do we do that? I have this other quote from your dissertation that lands really strangely in this moment, in this conversation and it has to do a little bit with the kind of what I think you refer to as a national geographic imaginary.And so this is the response of the people in Scotland, in the Highlands embedded and engaged and indebted to these hill walking and homecoming industries. And so in your dissertation, it's written that "in February of 2017, an uproar on all sides erupted when, in a rare sign of bipartisan solidarity, both Mountaineering Scotland and the Scottish Gamekeepers Association attempted to pressure the Scottish government to abandon a [00:36:00] proposal to increase woodland cover, trees, from 17 percent to 25%. by 2050. The commitment to plant 10, 000 extra hectares of trees between now and 2022 was made in the government's draft climate plan. The protesting organizations argued that there had not been enough consultation and consideration given to the changes to the highland landscape that would come about by this tree planting initiative.And they were voicing their concern on whether, quote, 'adequate weight is being given to the significant changes this will have on the landscape of Scotland, and in particular, the dramatic open views and vistas which have come to signify to the outside world that which is unique about our country.'" End quote.And so this seems to be, to some degree, and please correct me if I'm wrong, but a manner of contending [00:37:00] with that past in a way that is, you know, perhaps ignorant of it. Or that is perhaps also faithfully serving the needs, the economic needs of the people, of the place.Christos: There's a lot there. I'm, what's coming to me, do you know this quote? It's from ancient Rome. It's a bit convoluted, but this is a Roman text talking about the colonization of Britain, so of the Romans conquering the Gaelic people in the Picts, but it's In a speech written by this Roman historian that he's attributing to like the Gaelic king, basically. So it's not, this wasn't actually said by a Gaelic king, it's just a Roman kind of putting these words in his mouth to kind of create like a battle scene, but but a lot of people quote this and it's from the Gaelic perspective referring to the Romans saying "the Romans make a desert and call it peace."[00:38:00] And that's kind of what's happened in Scotland is the villages were cleansed, literally. You know, the houses were burned down and knocked down. The people were forcibly, sometimes violently, thrown out of their homes into the cold. Many of them just had no prospects to be able to stay and move to Glasgow.And many of them, you know, came to Toronto and Saskatchewan and North Carolina and all this. And so after they left, these highlands kind of became empty, like this vast emptiness. And then once the Victorian English came into that landscape and started painting it and writing Victorian poems about it, this aesthetic of this, treeless, vast expanse became kind of that National Geographic kind of aesthetic of the mountain peak and the colorful heather and then the loch or the lake, kind of [00:39:00] reflecting the mountain.You can just imagine the scene, right? Of like the mountain peak being reflected in inverse in the lake, you know, kind of thing. It's just that perfect kind of symmetrical perspective photograph or painting. And then that kind of became the symbol of freedom and tranquility which is basically like a site of ethnic cleansing becomes a symbol of beauty.And then what happens is you keep managing the landscape to maintain that aesthetic, which is why you find the strangeness of, like, environmental groups arguing that planting trees is ecological vandalism, that you're ruining the ecology of a place because your trees are gonna get away in the way of these vast expanses.So it's it's this weird wondering on, like, how certain aesthetics become symbolic of something. And then you manage the land, to maintain that aesthetic. Even though it's [00:40:00] absolute death for the wild, the wildlife and even the people in that landscape, to maintain it in that way. The thing that might not be obvious to most people which wasn't I didn't know about this whole world before I moved there, but Scotland's one of the few if not only place in all of Europe where you can still be a feudal lord like they call it a laird, l-a-i-r-d, but it's like a lord where all you need to do to be a lord is you just buy land and if you have enough land you're you claim title of Lord Wow.And most people that are lords in Scotland these days are not even British. You have people from Saudi Arabia, from all over that have bought up the highlands in many ways. And they have these estates and you know, Balmoral estate, which is like the Queens, or I guess she's dead now. Now it's King Charles's estate.And what you do is maybe once a year you and all your rich friends from all over the world fly in [00:41:00] and do this traditional game hunt where you might be hunting deer, but more often you're actually hunting wild birds. You know, so grouse especially. If anyone's seen, I find it fascinating watching Downton Abbey, that TV series, because it's kind of, it covers a lot of the kind of that, that time in Britain.And there's an episode or two where they go into the Scottish countryside to go, you know, go hunting. So it's this weird aesthetic where you dress up in a certain way, kind of like an old time Scottish lord, and you go out on the land with dogs and you shoot down birds, and in order for the birds to live there you need the landscape to basically be wide open, because that's actually what they prefer.And so, this is why, again, for the context of that quote, you have an environmental group, and basically, rich, elite gamekeepers working together to keep the government from planting trees in this landscape because it's in both their interest to maintain [00:42:00] this landscape as an ecological wasteland, essentially that people can't sustain themselves off of or people can't live in So you're kind of farming emptiness if that makes sense in a way you're like cultivating emptiness. Yeah. For tourism. Which again I mean, you've been talking to so many people about this subject. To me, it's fascinating what tourism can be or what it can mean, you know, or like what need is trying to be fulfilled in these, in these landscapes that often get kind of territorialized as touristic, you know, because most people, when they travel, they don't go to walk around the suburbs of a city. There's only certain places that tourists are drawn to, right? Hmm. And so I'm always curious about why and what tourists are drawn to, you know, what is like almost like the resource there that is being extracted. In Chris: the context of your work, you know, largely in regards to, to landscapes and we've spoken a fair amount today about [00:43:00] landscapes as, as objects at the very least.But in, in your dissertation, you know, there was a line that struck me certainly I think coming from your animist tendencies and sentiments where you say that "landscapes are mediums and landscapes are a process," and I'm curious, as we kind of wind ourselves towards the end of our time together, if you could elaborate on this for our listeners a little bit, this, this idea of landscapes as mediums or as processes.Christos: Yeah, so I've done my, my PhD in the field of cultural geography, or sometimes called human geography, which is kind of like anthropology except kind of rooted in place, I'd say that's the big difference. It's not as popular here in North America, but in the UK it's much more popular. And probably the primary focus in that field is landscape, which I think most people might be familiar with that term in terms of like, maybe landscape [00:44:00] gardening or landscape painting.But when you get deep into it, which is kind of what grad school is, is you're like a big weirdo and you just get so deep into something so friggin specific that, you know, most people think you might think about once in your lifetime, but you end up spending nine years thinking about and writing about.It's almost like you can't perceive a place without some kind of filter, if that makes sense. It's almost like there's no such thing as just like a place or land that's just objectively out there. Like, I spent most of a winter, you know, down where you are in Oaxaca, but you having lived there for this long, like if you and I walk around in the streets of Ciudad Oaxaca, you're going to perceive so much more than I am, or at least many different things than I am, right?I'm going to be purely a tourist, I'm going to be reading on a surface level where you might have dozens of memories come up from your time living there and different things that have happened. And [00:45:00] so, in that way, like a landscape is almost, is always like a medium, meaning like our own perceptions, our own projections, our own memories are always affecting the way that we perceive a place.And so cultural geography, the field that I'm in, kind of looks at that. It looks, literally at the kind of the, the collision of culture and geography and like the politics of a place. You know, I was talking about like earlier about landscape management. You know, there are people that are choosing how to manage the landscape in the highlands, where to allocate money and where to cut money from.And all of those decisions are based on preferences of aesthetics and land use, in terms of landscape. So for anyone that's interested, it's a fascinating field to start looking at what we perceive in a place or in places [00:46:00] and how, what we perceive or what we wish to be there affects, you know, the politics of a place.And again, the contemporary crisis right now, Israel Palestine, this question of like, who belongs there? Whose land is it? What do you see in that landscape? For some people, they see an ancient Jewish homeland that these persecuted people are trying to return to and reclaim and for other people, they see, you know, an indigenous Arab people that are being displaced by outside colonizers and, you know, both in their way are right and wrong.I'm not going to wade into the politics of it, but the way that landscape is used as a medium, politically, economically, culturally, is a really fascinating subject, at least for me.Chris: Well, thank you for that, and to finish up with a question around pilgrimage, which Jerusalem being the quote unquote, "holy land" and where so many pilgrimages landed in in previous times and of course in contemporary ones as [00:47:00] well. I'm curious about what you could describe as ritualized memorial acts of walking. And I'd like to finish by asking what have been the most achieved and enduring acts of ritual that you've encountered? What lessons might they have to teach us in a time of hypermobility?Christos: Again, that's like a huge question. Okay, I'll try to be succinct if I can. I don't know why I'm drawn to these kinds of histories, but anywhere I go in the world, I tend to be drawn to, yeah, histories of displacement, I would say.It's a strange thing to be interested in for most people, but it probably speaks to the fact that I am the fourth generation of men to leave the country that I was born. You know, that's between both sides of the family, it's not all one lineage. But being of Greek descent, Greece has long been a country where people leave, you know?Like, right now, the [00:48:00] United States is a country where people come to, but to be claimed by a place where for hundreds of years now, so many people, whether by choice or circumstance, leave their home probably does something to you, you know? And so Anywhere I've traveled in the world, I tend to either seek out or be sought out by these kinds of histories, and so I referred a bit earlier to this project I did years ago where I was spending a lot of time in Mexico and ended up meeting what became a friend is an artist from Mexico City, Javier Arellán, and he was second generation Mexican.His grandfather was from Barcelona in Spain and was a fighter pilot for the Spanish Republic, so like the legitimate democratically elected government of Spain. And when Franco and the fascists kind of staged a coup and the Spanish Civil War broke out you know, he was on the side [00:49:00] of the government, the Republican army.And Barcelona was basically the last stand of the Republicans as the fascist kind of came up from the from the south and when Barcelona fell everyone that could literally just fled on foot to try to cross into France, nearby to try to escape, because knowing that if they were captured they would be imprisoned or killed by the fascists who had basically taken over the country now.But the French didn't want tens of thousands of socialists pouring into their country because they were right wing. And so rather than letting people escape they actually put all the Spanish refugees in concentration camps on the French border. And that's where my friend's grandfather was interred for like six months in a place called Argilet sur Mer, just over the French border.And then from there, Algeria took a bunch of refugees and he was sent to Algeria. And then from there, the only countries in the whole world that would [00:50:00] accept these left wing Spanish refugees was Mexico and Russia. And so about 50, 000 Spanish Republican refugees relocated to Mexico City. They had a huge influence on Mexican culture.They started UNAM, like the national university in Mexico City. And my friend Javier Grew up in Mexico city, going to a Spanish Republican elementary school, singing the Spanish Republican National Anthem and considering themselves Spaniards, you know, who happened to be living in Mexico. And so when I met him, with my interests, we, you know, overlapped and I found out that him and his wife were soon setting out to go back to that same beach in France where his grandfather was interred, in the concentration camp and then to walk from there back to Barcelona because his grandfather had died in Mexico before Franco died, so he never got to return home. You know, maybe like a lot of Greeks that left and [00:51:00] never did get to go back home, certainly never moved back home.And so we went to France and we started on this beach, which is a really kind of trashy touristy kind of beach, today. And we thought you know, that's what it is today, but we then found out talking to people that that's actually what it was back in the 1930s, 1940s was this touristy beach and what the French did was literally put a fence around and put these refugees on the beach in the middle of like a tourism beach literally as prisoners while people on the fence were like swimming and eating ice cream and, you know, and being on vacation.So even that site itself is pretty fucked up. A lot of people died there on that beach. And it was 15 days walking the entire coast from the French border back to Barcelona. And whereas Javier's community in Mexico city actually raised [00:52:00] funds for us and we're really excited about this idea of homecoming and going back home to Spain.We quickly discovered when we started talking to locals about what we were doing, they would stop talking to us and walk away and they didn't want anything to do with us. They did not want to know these histories. They didn't want to touch it. And what we found out is like Spain has never really dealt with this history.And it's such a trauma and nobody wants to talk about it. So again, it's this strange thing where it's like us from the Americas, you know, my friend from Mexico was wanting to return home and it was a strange trip for him because he thought of himself as a Spaniard returning home and these Spaniards were like, "you're a Mexican tourist and I don't want to talk to you about the civil war, you know?"And I think that really hurt him in a lot of ways because he almost kept trying to prove that he wasn't a tourist, whereas for me, I knew that I was a tourist because, you know, I have no history there.[00:53:00] In terms of pilgrimage, I've done other pilgrimages, other walks I won't get into now, but there's something about walking a landscape or walking a land as opposed to driving, obviously, or flying that the pace of walking, I think, allows you to interact with people and with places at a rhythm that is maybe more organic, maybe more holistic. I did do the Camino de Santiago, the pilgrimage in Spain, like I did that another 15 days as well. And for me there's nothing like walking. You know, there's, there's something that happens. To your mind, to your body, to your spirit when you're moving that I've never experienced through any kind of other travel.And unfortunately there are only so many places in the world where you can walk for days or weeks on end that have the infrastructure set up to do so. And I know that here in the Americas other than walking on busy roads, it's pretty hard to get long distances through walking.And so I think another thing that tourism has done is kind of cut off the transitional kind of walking and you just kind of fly off and just kind of plop yourself [00:54:00] down and then get extracted out through an airplane, but you don't have the experience of seeing the landscape change day by day, footstep by footstep, and experiencing the place at that speed, at that pace, which is, you know, a very slow pace compared to an airplane, obviously.Chris: Mm hmm. Perhaps, perhaps very needed in our time. Christos: I hope so. I think there's something about it. I think there's something humanizing about it. About walking. Chris: Well, I've asked a lot of you today, my friend. And we've managed to court and conjure all of the questions that I've, that I had prepared for you.Which I thought was impossible. So, on behalf of our listeners and perhaps all those who might come to this in some way, your dissertation at some point down the road, I'd like to thank you for your time and certainly your dedication.And I imagine a PhD, nine year PhD [00:55:00] research process can be extremely grueling. That said, I imagine it's not the only thing that you have on your plate. I know that you're also an artist a teacher, writer, and Kairotic facilitator. I'm saying that right. To finish off, maybe you'd be willing to share a little bit of what that entails and how our listeners might be able to get in touch and follow your work.Christos: Yeah, first I'll just say thanks for reaching out, Chris, and inviting me to do this. I've listened to your podcast and love these kinds of conversations around these topics of place and belonging. It's obviously deep in my heart and I said this to you earlier, other than my supervisors and my examiners, I think you're the first person to read my dissertation, so I appreciate that you took the time to read it and to draw quotes and to discuss it with me because, I think most people that have done a PhD know that it can be a pretty solitary process to go so deep into such a tiny little corner of like knowledge that for most people is not what they're interested in every day and to [00:56:00] share these stories. Thank you. So yeah, my website is ChristosGolanis. com. And part of what I do is working with this Greek term, kairos. So in Greek there are at least three words for time. One is chronos, which is like linear time. One is aeon, which is like kind of eternal time.And one is kairos, gets translated as kairos, which is like almost the appropriate time or ceremonial time. And my best definition of that is you know, there are some things that are scheduled, like you and I for months ago planned this particular time and this particular day to do this interview.But deciding, let's say, when to get married with your partner doesn't follow any kind of rational, linear timeline. That's more of a feeling. And so the feeling of like when some, when it's appropriate for something is what Greeks consider to be keros, like, you know, keros for something like it's, it's the appropriate time for something.So. What I do is I kind of counsel people to craft [00:57:00] ceremonies or rituals for big transitions in their lives to mark things in their life through ritual or ceremony. Like I said, for like a homecoming two weeks of walking the coast of Spain can be a ceremony, right, of kind of walking your dead grandfather back home. I think there's something about the impulse to go out into the world, to find something, to integrate something, to process something, right versus staying right where you are and kind of with community, with others. It's kind of ritually marking it, integrating it, and you know, it's cheaper, it's easier on the environment, and sometimes can, can go a lot deeper than going away and coming back, and maybe not much has changed.But it can be dealing with the transition of someone from life into death or a birth or a career change. And so basically using ceremony and ritual to really mark and integrate these significant moments in our lives so that we can be fully with them as they're happening or as they've happened in the past, but haven't been able to be integrated.So that's some of the kind of [00:58:00] work that people can do with me if you want to reach out through my website. Chris: Well I very much look forward to seeing and hearing your dissertation in the world outside of these small groups of podcast interviewers and academics. So, hopefully one day that's the case if there's any editors or publishers out there who enjoyed what you heard today and want to, want to hear more, please get in touch with me or Christos and we can, we can get that into the world in a good way.Christos, thank you so much brother. It's been a pleasure and I hope to have you on the pod again soon. Christos: All right. Thank you. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

The End of Tourism
S5 #3 | We Are Not Americans w/ Healani Sonoda-Pale (Ka Lahui Hawai'i)

The End of Tourism

Play Episode Listen Later Mar 5, 2024 45:12


My guest on this episode is Healani Sonoda-Pale, a Kanaka Maoli Human Rights advocate for Self-Determination and a Water Protector who has been organizing at the intersection of the indigenous struggle for liberation and environmental protection in Hawai'i. She is a member of the Red Hill Community Representation Initiative and the spokesperson of the Ka Lahui Hawaii Political Action Committee. Healani was born and raised on the island of O'ahu where she resides with her family.Show Notes:The Beauty of the Pandemic Shutdown in Hawai'iThe Fallout of the Lahaina Fires in West MauiNo ControlsManufacturing the AuthenticReopening for Tourism in the Midst of CatastropheLocal Schism: Those in Favour and Those AgainstThe Tourism at the Heart of the Housing CrisisKa Lahui Hawai'i Political Action CommitteeThe Water Crisis in OahuDecolonizing Tourism is an OxymoronSolidarity with Kanaka MaoliHomework:Healani Sonoda-Pale InstagramKa Lahui Hawai'i | TwitterOahu Water Protectors | Red Hill Community Representation InitiativeTranscript:Chris: [00:00:00] In the first season of the podcast I spoke to Hokulani Aikau and Vernadette Gonzalez about the attempts to decolonize tourism in the Hawaiian islands. And following that Kaleo Patterson. Who offered a deeper historical and cultural background into the ongoing us occupation of Hawaii. The military industrial tourism complex, and some of the traditional forms of hospitality that Hawaiians have engaged in. Since then, and especially because of the wildfires that spread through west Maui this past summer. Listeners have asked again and again, to return to the islands, to host the voices of those. They're now struggling with another catastrophe. Who are offering resilience and resistance. In the face of these enduring consequences. And as such, I welcome.Healani Sonoda-Pale to the pod. Thank you for joining me today, Healani.Healani: It's my pleasure to be joining this podcast and to help [00:01:00] spread the message about tourism in Hawai'i. Chris: Healani, could you do us the favor of elaborating a bit on where you're speaking from today and how the world looks like for you?Healani: Okay. So I'm a Kanaka Maoli woman, born and raised in Hawai'i on the island of O'ahu. I have been in the Hawaiian movement for liberation and self determination for nearly 30 years. I am a student of Dr. Haunani-Kay Trask, and I am on the front lines of many, many issues. The issues that we face today are, many of them are a consequence of tourism.The desecration of cultural sites. The degradation of our beautiful beaches pollution, traffic, overcrowding, the high cost of living in Hawai'i, the extremely high cost of housing in Hawai'i. These are all because of tourism. This is happening to Hawai'i. [00:02:00] As a result, direct result of the tourist industry, which Hawaii relies on.And in Hawaii, we have two businesses. We have the military industrial complex and the tourist industry. Those are the two worst industries to rely on, number one. And they are the most exploitive and extractive industries to have. They do not enhance our way of life here on, on these islands in Hawaii.They do the opposite. They have brought many of us to the brink where we are now, most of us living paycheck to paycheck. The average cost of a house in Hawaii is a million dollars.I believe Honolulu is the number one or at least the top three most expensive cities in the United States to live in. So tourism is a plague in Hawaii. It is a plague upon this place and it has caused us to [00:03:00] struggle on a daily basis, not just financially and not just socially, mentally as well. Having to deal with tourists on a daily basis in Hawaii is frustrating, so that's kind of like the space I'm coming from. I am involved with the water issue, protecting our water, which is now something that is a huge issue. I'm very much involved in the Red Hill issue. I'm involved with protecting Iwi Kūpuna, which is our traditional Hawaiian burials. I'm involved with the repatriation of our land. Again, another big issue. It never ends because the, the economic, social pressure to take and take and take until there's nothing left is relentless. So that's the space we're coming from. So you talked about COVID, right? You started this podcast in the beginning of COVID and COVID was an eye opener for a lot of people in Hawai'i. When COVID happened, [00:04:00] the state of Hawai'i shut down and tourists weren't allowed here during our shutdown.I believe it was like a year and a half. It was beautiful. Even though we were living in the middle of a pandemic, our beaches were empty. There were no lines at the stores. There was no traffic. Even the air we breathed seemed cleaner. The water we swam in, in the ocean, didn't have this sliminess on it, from tourists with suntan lotion swimming in it all day, right?So the fish came back. Even the plants and the land was happy. I mean, it was a beautiful time. Even though it was sad because we were living through a pandemic, it was a beautiful time for us as Kanaka because we got to see Hawai'i without tourists. And that really opened the eyes for people who usually are not as [00:05:00] critical of tourism, as many of us have been so more people in Hawaii started saying, especially Kanaka Mali, well, how do we move forward without tourism?But when the state opened up again, tourism came back and it came back with a vengeance.When you look at what was happening on social media and, you know, what people were posting and across all the islands, we saw some frustration. We saw people posting about interactions they were having with tourists at sacred sites and beaches. People were more aware that tourists were there after COVID because we were able to enjoy our beaches, enjoy our islands without them.And then when they came back, it was not only dangerous because we live 2, 000 miles away from the nearest continent. So, they were bringing in the COVID. I mean, from the time of [00:06:00] Captain Cook, tourists, visitors, explorers, missionaries, they have been bringing in diseases when, when Captain Coke arrived in 1778. We didn't have any immunity to these diseases, and so now, I think for a lot of residents here in Hawai'i, our eyes have been opened on what we have to give up for tourism.We have to sacrifice not only our beautiful island life, but a way forward that doesn't include commodifying who we are as a people, our culture, everything. The state's been talking about diversifying the industry here in Hawai'i, right? They wanted to look into agriculture was one. They've never seriously taken that up. And they always fall back on tourism.Chris: And why do you think that is? Because it's just so easy.Healani: Because they've invested. It's a multi billion dollar business. There's hotels. Waikiki [00:07:00] is loaded with hotels. It's business interests. It's those that have been in control of the tourist industry, wanting to keep control of that and wanting to keep their financial interests protected and keep going.So that is, that has been a problem. And of course we have strong lobbyists here in Hawai'i for the tourist industry. It is an industry that is supported by taxpayer dollars. It's one of the few industries we give millions of dollars of our money. It's a private industry supported by taxpayer dollars.So it's a private industry that we support that exploits not just our resources, our culture, but they have really degraded our way of life here. They've made everything so expensive that most of our people, most of the indigenous people of Hawai'i have moved away because they can't afford to live here.Chris: And you know, I'm curious [00:08:00] in this regard, to what extent do you think that this Government money and government decisions played a part in these wildfires that passed through West Maui in August, you know, like reading and researching for this interview and seeing what's been shared online and social media, the term management and mismanagement continues to arise in and among social movement activists.And I'm curious to what extent you think that either government action or inaction or the tourism industry had a part to play in what happened this past summer.Healani: The Lahaina Fires. was so tragic and the tragedy continues months after. The suicide rates are on the rise in Lahaina. Families are still displaced, thousands of them. They were just [00:09:00] a few days ago, I had posted about it. They were just given again, eviction letters. The last time I was in Maui was there.The first set of eviction letters that went out. So they're being housed in hotels, 7,00-8,000 of them; families that have lost everything, in hotels. And now they're being told to leave to make way for tourism, to make way for tourists. That's the enormity of the pressure that tourists, tourism brings with it. The pressure to a piece and to serve and to put tourism first.Just going back to my childhood in school. We were basically brainwashed into thinking we need tourism. Without tourism, we wouldn't have jobs. There would be no money, you know? So it's been kind of ingrained in us. And that's why I think COVID was super important because it was an eye opener for a lot of us.Because they saw really [00:10:00] what was possible, a world without tourism. And so the pressure to support, to push tourism, to... "they always say, we want to support small businesses," but it's really not about small businesses. It's about those huge, multinational corporations that have invested millions.into this industry and have supported and lobbied for their industry, for the tourist industry. That's what it's really about, to a point where they really don't care about the people, the residents of Lahaina. They're literally traumatizing these families again and pushing them around to make room for an industry that we all pay to support.And the Lahaina fires is a result of corporations, land grabbing by corporations of [00:11:00] tourism gone wild, literally. The whole culture of Hawaii is about making sure tourism is going to be okay in the future. We're one big resort. That's what we are.Hawaii is one big resort. Everything is catered for tourists first. It's always tourists first, residents last. And kanaka maoli not even considered, like we're not even in the equation, except when they want us to dance hula, and when they want us to chant, and when they want us to teach tourists how to make leis. So the whole Lahaina situation is very complicated.Tragic, and it continues to be tragic. Over a hundred people died in those fires. And Lahaina is like a real big hub for tourists, and has been. It's like the Waikiki of Maui. So having that burned down, I think, was a big loss for the tourist industry on Maui. [00:12:00] So they are trying every which way to bring that back. In fact, today they're going to unveil the strategic plan for the next few years for Maui, which again, is just a slap in the face. It's insulting to the people of Lahaina. They're actually having it in West Maui. It's insulting to the people of Lahaina to have now a discussion about how to move forward with tourism while they're still displaced. There's thousands of families that don't know where they're going to be next month.There are thousands more that don't have access to clean water, don't have jobs, that have multiple families living in their homes and they're going to have a big presentation on tourism today. That's what we have to deal with.There is a mythology that's been built around the tourist industry that basically tells us, you know, [00:13:00] we need tourism. We need tourism. For some reason, we won't be able to survive without tourism. So that's the culture of Hawaii. And that's what I've grown up in. One of the things that is concerning about tourism is the fact that there's never been an environmental assessment or environmental impact study done on the effects tourism has on Hawaii .There are no controls. There's no control of how many people will be allowed in, how many people will be allowed at a certain beach, how many people will be allowed to swim and hike up to a sacred pond.There's nothing like that. It's like a free for all here in Hawaii when it comes to tourism.With tourism comes a thriving sex trade. So we have a number of brothels that, of course, are illegal, here in O'ahu. And a real epidemic with a [00:14:00] high number of missing and murdered Native Hawaiian women and girls. Hmm. This is the average characteristics of a victim of a missing girl is 15 years old native Hawaiian.And that's you know, that's the reality here in in Hawaii. So tourism is one of those industries that has a lot of low paying jobs. People have to work two to three, sometimes four jobs to survive here in Hawaii because Hawaii has the highest cost of living and one of the highest in the United States and it's really a struggle to make a living off of the tourist industry.Once tourism gets a foothold in your community, then it's very difficult to get tourism out. And right now, I'm in the midst of a struggle with keeping tourism out of East Maui.[00:15:00] They're expanding tourism into rural areas because they want to make these real authentic experiences for tourists.And they want to provide cultural experiences for tourists now. And the last couple years, the Hawaii Tourism Authority has done something called destination management, which is where they give money to non profits to host tourists in these real authentic settings, where they get to work in the taro patch or they get real cultural experience hiking or storytelling or something like that and in exchange these non profits get paid.The reality of this Destination Management Program that they always give Hawaiian names to -Aloha Aina, Kahu Aina -the reality of these programs [00:16:00] is that they're actually community bribes.Residents are less tolerant of tourism these days, especially post COVID. And so these programs, like the Destination Management Programs that they're now doing, and have been doing for a couple years are community bribes that help residents swallow the bitter pill of tourism. And that is pretty much how this whole thing kind of plays out.Whatever financial benefits we get out of tourism, they're short lived and they aren't sustainable. And in fact, they threaten a sustainable and livable future for residents here, especially Kanaka Maoli.Chris: Do you see any parallels between the quote return of tourism following the COVID-19 lockdowns and later after the fires? Was anything learned by the inundation of [00:17:00] COVID carrying tourists?Healani: Yeah, so I see parallels between what's happening with tourism post COVID and what's happening with tourism post-Lahaina fires. And what's very clear with the government here, the local government has made very clear is that tourism, no matter the cost, in terms of our health and safety, comes first.And that has been shown over and over. While, when they opened up tourism, the COVID numbers went up. And because, of course, people are bringing COVID in. And that put the numbers of people in the emergency rooms and in our hospitals that went way up. We don't have the capacity and we still don't have the capacity to serve thousands and thousands of residents and tourists at the same time.In terms [00:18:00] of medical health care. And so we, you know, we're in a really tight spot for that, you know. So we were really struggling because our hospital and our medical system was overrun.We had sick tourists and we had sick residents. And when you look at the numbers, it was the Native Hawaiians and the Pacific Islanders who were not just catching COVID more, but also dying from COVID more often than others. And with Lahaina, same thing. Instead of waiting, holding off on reopening Lahaina and Maui for tourists, they opened it up super early.In fact, they opened it up a month ago, for tourism. They opened up line up for tourism and families are still suffering. Families don't know what's going to happen next month, where they're going to be living next week. There's [00:19:00] thousands of displaced families still in Lahaina, yet the pressure to open up to tourism is so immense that they did it anyway. So what happened with COVID and the Lahaina fires is that they really show that what they're prioritizing.They're not prioritizing the health and safety of, of the residents, let alone Kanaka Maoli residents. They're prioritizing business interest.Chris: Mm. Hmm. Really just showing the true face, the true nature of the industry. Right. And then not in any way surprising why locals, both residents and Kanaka Maoli would be so upset and so angry, not just with the industry, but with tourists as well when they arrive having no understanding of this. Right. And so my next question kind of centers around locals there, workers, especially. And in this particular article, It says that, "as tourists returned to the [00:20:00] island, displaced residents are still in need of long-term solutions for their future, most notably in terms of long-term affordable housing. Currently. Quote, "a coalition of 28 community groups have staged what's being called a 'fish-in' on Kaanapali beach to help raise awareness of the ongoing impacts of the Malai wildfires. Wearing bright red and yellow shirts, the protesters have pledged to fish along kind of poly beach. An area usually crowded with sunbathers in swimmers, around the clock 24 7, in order to bring awareness to these issues. And so in terms of strategy and solidarity, How have local people and organizations responded in the context of these last few months.Healani: Yeah. Many locals work in tourism. So a lot of people in Hawaii felt that the reopening was too fast, too early. There were other ways they could have dealt with. They always use the term 'affordable housing,' they always use that to [00:21:00] develop. Here they use small businesses to justify prioritizing tourism. So, their whole justification for opening up to tourism early, in Lahaina, was to support small businesses. But there are other solutions. We all know that. They give billions of dollars to Israel and to Ukraine for a war that has nothing to do with us, to other countries who are doing whatever they want with it. But when it comes to this whole issue of tourism and the displaced families, they could have supported these families and for at least a year supported these small businesses like they did during the pandemic, but they chose not to.There's other solutions they could've used, but for them, opening it up was more important than making sure families were okay.So, there is a split between some residents who feel they need tourism and some [00:22:00] who don't. And it's usually, again, business owners who rely on tourists for their livelihood. And like I said before, any kind of benefit we get from tourism is really short lived and the effects of tourism, not just on our environment, but on our society and on our economic system is more detrimental than beneficial.I'll give you an example tourism fuels people from other places wanting to buy a second home here. Tourists come to Hawaii, they see how beautiful it is, they love the beaches, of course. We have like really good weather on a daily basis. So when they come here to visit, they wanna buy a second home here.⌘ Chris Christou ⌘ is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.Right now we have a housing crisis in Hawaii, and the reason for this housing crisis is because we have [00:23:00] tens of thousands of empty homes. In fact, we could put all the houseless people that are in Hawaii right now into these empty homes. And we would still have thousands of homes left over. And that is one of the reasons why number one, we have one of the, like the highest housing costs. The average house right now sells for a million dollars.It could literally be a shack on a piece of land. It'll sell for a million dollars in Hawaii. It's because of the demand for housing here in Hawaii. And it's because of the fact that a lot of the housing that we do have are usually second homes. And lots of times they use it for short term housing rentals as well. And I just want to clarify the numbers for the short term housing rentals. There's about 30, 000 residential housing units that are being rented to tourists, instead of residents, instead of locals, instead [00:24:00] of Kanaka Maoli, so that's part of the problem here. We don't have a housing shortage.We have a shortage of housing rentals or landlords that want to rent to residents.So, what we gain from tourism doesn't even come close to what we are losing from tourism, from the tourist industry.Chris: Uh, Wow. . It's just a. It's incredible. How so much of this, this desire to vacation, escape, have fun, rest, make money "passive income" lead so much to the detriment of neighbors, of what might otherwise be neighbors in our midst. And I know that, I think I've read the other day that there's this group Lahaina Strong, that was asking for government intervention. Is that right? Healani: Yeah. So they've asked. Yeah, that's a, that's a good point. [00:25:00] Lahaina Strong, one of the lead groups in Lahaina, have asked for the mayor and the governor to intervene and to ask short term housing rental owners to provide long term housing solutions for those, the displaced families. And that hasn't happened yet.It's been months. It's been September, October, November, over three months. And these families, their future is still up in the air. They don't even have reliable housing. So again, it just tells you what the priorities of the state is. Honestly, I don't think they're going to get what they want.Chris: Thank you, Healani and for being a witness to all this and proceeding accordingly. I'd like to, if I can ask you a little bit more about your political work. If I'm not mistaken you're a spokesperson for Ka Lahui Hawai'i Political Action Committee. Could you explain a little bit about [00:26:00] this organization? What the name means, how it was formed its principles, goals, and actions, perhaps. Healani: Okay, so yes, I am the spokesperson for Ka Lahui Hawai'i, and I am part of the Komike Kalai'aina Political Action Committee, which is a national committee of Ka Lahui Hawai'i, which means the Hawaiian Nation.We are a native initiative for self determination and self governance. We were formed in 1987 by Kanaka Maoli, Indigenous Peoples of Hawaii, as a response to the illegal overthrow of the Hawaiian Kingdom, and as a way forward for our people to seek out justice and to create our own way forward by creating our own nation.I have been with Kalahui Hawaii since 1993. And I [00:27:00] joined after watching Dr. Haulani-Kay Trask do her speech on the grounds of Iolani Palace, where she proclaimed that we are not American. And that was an eye opener to me. And I joined Ka Lahui and I transferred to the University of Hawaii at Mānoa, became her student. A lot of the work that we've done has been nation building. We are a nation in exile, literally. We take stances on issues a lot of times. And the issues we've been doing has been from water issues to intellectual property rights, to land rights, to tourism. The issues we cover is literally anything that affects us as a, as a people and as a nation. So we cover a wide [00:28:00] spread of issues. Most recently it's been the water issue that we've been really focused on. And when you look at the water issue, again, you see the disparity there. We are in a water crisis on the island of Oahu. We are encouraged to practice conservation measures. However, the tourist industry, hotels with pools and fountains and large golf courses, which have to be watered daily, are not being told the same thing. They are the exception. They continue to waste water while on O ahu are concerned about the future.Of our children and grandchildren because we're not sure if number one, there will be clean water and number two, if there is clean water, there'll be enough clean water for everyone in the future, but the hotels in the tourist industry, they don't care. They have swimming pools and[00:29:00] golf courses.Tourists are not told to come here and conserve water. You know, in fact, they waste water in the tourist industry and you can see it. Are you seeing how they waste it? It's pretty visual and obvious. So Ka Lahui Hawaii has been active On the front lines with Mauna Kea issue, and we have treaties with other Native American nations. We've gone to the U. N., our past Keaāina, our governor, Merilani Trask helped to draft UNDRIP, which is the U. N. Declaration on the Rights of Indigenous Peoples, which is one of the most important documents that have come out from the U. N. for Indigenous Peoples and has reasserted all of our rights to self determination.There's about 400 million indigenous peoples around the world, and UNDRIP [00:30:00] is important to every single one of us.Chris: Well, thank you for, for that and the work that you do with Ka Lahui, Healani. I'll make sure that the requisite websites and links are up on the homework section and the end of tourism podcasts for our listeners. Now, in my interview withHokulani Aikau and Vernadette Gonzalez, they spoke of various projects within the tourism sector, undertaken by indigenous Hawaiians to uncover and share with tourists or visitors, the histories of the people and place so often ignored by the industry. Now in order to do this, to educate, many people work within the confines of the structures and the systems we already have, that is to decolonize tourism, for example. Now if we weren't limited by those current structures and systems. How would you personally want to proceed hosting the other, the foreigner? How would you want them [00:31:00] to proceed towards you and your people? How might you imagine such relationship to unfold? Healani: Yeah. Yeah. Decolonize tourism. That's an oxymoron. I don't believe in decolonizing tourism. The nature of tourism, it's like colonization. The nature of tourism is to exploit, is to extract everything it can from a place and from a people and it commodifies, things that to us are spiritual, to us are sacred, tourism commodifies it all. To decolonize something that was not created from indigenous peoples is impossible.We can decolonize our world. But we cannot decolonize systems of [00:32:00] oppression because they're set up to oppress us. And so that is, I don't know what to say. It's like I said before. You know, they keep changing the name, you know, Hawai'i Tourism Authority even though they have leadership that is Kanaka and they're trying to be culturally sensitive and they are doing, you know, destination management practices kind of thing and working with nonprofits and cultural groups.It's still tourism. It's still a business that wants to benefit from our land, from our water, from our culture, from our people. And when we talk about decolonization, when we talk about working against systems of oppression, it's really about us rebuilding our own systems that counter their systems.So it's all systemic, right? It's like a system of power that benefits one group [00:33:00] over the other. It stems from colonization, which is a system of power that is working against us. So to counter that, we have to create our own systems. We actually have to reconnect and recreate our old systems. So Franz Fanon talks about this. When colonization happens, what they do is they compartmentalize our world.So, you know, where we see the world as living, as where we see ourselves as part of nature, and part of this living system where there's balance. We give and take from the land. We take care of the land, the land takes care of us. In our cosmogonic genealogies as Kanaka, it tells us basically our universal perspective on all life, which is basically we are related to all the animals and plants and to the islands itself, because what it does is it recites the birth of every [00:34:00] living thing in Hawaii that was here during the time we were here, before Captain Cook arrived, but it connects us to this world and it tells us our place in it. And when colonization came, what they did was they ripped our world apart.And they separated us from nature. They separated us from our ancient beliefs. They separated us even from our belief in ourself. And many Native people, I'm sure can relate to this, but it's like living in two worlds. We live in a Hawaiian world, and we live in the Western world. We act a certain way in the Western world because of the way it's organized. And in our world, it's different. So, it's important to understand that we cannot infiltrate a system. Without the system infiltrating us. We're going to change before the system changes because these systems have been in place [00:35:00] for centuries.So I don't even want to answer the question about hosting foreigners or others because that's not even something that's on my radar. I don't imagine tourism in my future or in the future of our Lāhui, or in the future of our people. Kalahui, Hawai'i has taken stances against tourists and tourism. It's not worth what we have to give up to host foreigners. And I could go on for hours with stories of our people, putting themselves at risk, saving tourists in the ocean, and not even getting a word of thanks. Having tourists pee on our sacred sites, having tourists throw rubbish on our beaches. It never ends. So I think it's cute that they want to decolonize tourism. It's a multi billion dollar business. You cannot decolonize tourism unless you take [00:36:00] the aspect of capitalism out of it. It's like decolonizing money. How are you going to do that? It's like you need to build systems where you can sustain yourself and your people outside of these capitalist and outside of these corporate systems of power. Healani: Yeah, so what I would want to say to those who want to stand in solidarity with Kanaka Maoli, with the Native people of Hawai'i, I would say stay home. Help us spread the message that we do not want or need visitors to come to our islands. As the Native people of Hawai'i we're building our own food systems, we're bartering. We're trying to move forward as a people away from these other systems, away from tourism, away and out from under military occupation.It's a struggle that we're in. I think for those that are listening, it's important for you to[00:37:00] spread the word about the struggle that Native Hawaiians are going through in our own homeland and our struggle for liberation and to support us in whatever way you can. So I think it's important to support us from afar, I would say.And if you're here anyway, like if you end up coming anyway, then support. Don't just come here. Give back. Help out a Hawaiian organization. Help out a Hawaiian on the street. 40 percent of all houseless in Hawaii are Indigenous Hawaiians. And we only make up 20 percent of the population in our own homeland. 50 percent of the population in Hawaii's prisons and jails are Hawaiians.We have low educational attainment. We die from diseases that other people usually don't die from. We have probably the highest suicide rates in Hawaii. High infant mortality rates. So this isn't our paradise. But we have to make it a paradise for tourists. And that's something we can't continue to do.The reality of the [00:38:00] situation is that it's destroying our future right now. And you look at what happened to Lahaina, and that's all because of unsustainable development, high cost of living, corporations running amok, diverting the rivers, water being diverted to hotels and golf courses, instead of letting water just flow freely from the ocean, from the mountains to the sea.So that's what we're dealing with, and if you are thinking about coming to Hawaii, please, please think again and just support a Hawaiian organization in their struggle to reclaim what we lost. We did something around tourism. It's a survey that we gave to tourists who are here anyway, right? So that is our pledge for tourists if they are gonna come here. And we've had it out for a few years. We've tried to get like the airlines to push it out and stuff like that to raise awareness. Now they're doing more of that, which is good. [00:39:00] And I appreciate that. But ultimately, we don't want people to come here.Healani: That would be the end goal because Hawai'ians are displaced on our own land.This is our mutual aid that we set up to help families of Red Hill who still don't have clean drinking water, which is nuts. And this is two years after, right? So if they want to help with that, we appreciate that. Chris: I'll make sure that our listeners have all of those available to them when the episode launches.Healani: Because we're basically providing services to the residents, but Yeah, that's pretty much it. I can't believe people think they can decolonize tourism. It's freaking nuts.Chris: Yeah. I keep coming back to this notion that, you know, [00:40:00] part of colonization of our minds and the wars against us tend to stem from a war against the imagination and a war against us being able to imagine other worlds and just things completely differently. And I also think that when people don't have examples to follow of what that might be like to, to imagine things differently, and then also to not have the time to do that.You know, people tend to fall back on kind of simple alternatives, I guess.Healani: I think it could be useful for a little while, but it's like, we've got to work towards not sustaining it, but dismantling it, somehow getting rid of it.I mean, look at what everything that's happened to Hawaii, COVID, Lahaina fires. Our wildfires are like happening more and more. We have more on this island now than we've had before. It's just a matter of time before we have our own huge fire that's going to be devastating on this island.Chris: [00:41:00] I'm very grateful for your time, and I can tell very clearly that you're one of those people that's offering an example for younger people on how things might be different. So, I'd like to thank you for your time, your consideration. And I'll make sure, as I said, that all of these links are up on the End of Tourism website when the episode launches and and on social media as well.Healani: Awesome. Thank you so much. You have a good day. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

Building Texas Business
Ep067: Navigating the AI Revolution in Business with Devlin Liles

Building Texas Business

Play Episode Listen Later Feb 21, 2024 42:58


In today's episode of Building Texas Business, we have a discussion with Devlin Lyles, President of Improving, about AI's evolving role in business. With his extensive tech leadership background, Devlin offers insightful perspectives on strategically integrating AI and shifting workforce mindsets. He explains how AI enhances personal productivity and compels a transition from manual tasks to advanced system management. Other notable topics include vendor resiliency, learning cultures, and personal growth's influence on business innovation. Wrapping up, Devlin shares his views on AI's future impact through emerging tools and personal assistants that boost productivity. Join us for this enriching exchange at the intersection of technology, leadership experience, and work-life harmony. SHOW HIGHLIGHTS Devlin discusses his transition from a young programmer to a leader in technology, emphasizing the role of AI in changing business strategies and operations. We explore the psychological aspect of AI adoption in businesses, addressing how the workforce adapts to the enhanced productivity and evolving roles that AI tools bring. Devlin makes an analogy between the historical rise of ATMs and their impact on bank tellers, to the current transition from manual task execution to strategic AI system management. We dissect common misconceptions in AI implementation, such as the belief that data must be perfectly curated and the pitfalls of building bespoke AI solutions from scratch. Devlin highlights the importance of focusing on problem-solving over the technology itself, encouraging companies to differentiate between truly valuable AI applications and those simply following trends. The conversation delves into vendor resiliency, with a focus on the legal protection offered by large companies like Microsoft for their AI services. We discuss the cultivation of a learning culture within Improving and the impact personal development has on managing technology and fostering business innovation. Devlin shares insights on the future of AI, such as the potential of a "cloud of things" and personal AI tools that can enhance daily productivity and support memory. We examine the transformative effect of AI on mundane tasks and its potential for significant impact on industries like logistics, supply chain, and manufacturing. Devlin and I reflect on the importance of hobbies and personal interests, such as golf and video games, for maintaining a balanced life while engaging with technological advancements. LINKSShow Notes Previous Episodes About BoyarMiller About Improving GUESTS Devlin LilesAbout Devlin TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Devlin Liles, President of Improving. Devlin is a leading expert in the application and use of AI for businesses. Devlin shares several helpful ideas relating to AI for businesses and believes that a business's readiness for AI is mostly psychological. Devlin, I want to thank you for taking time to join us today. Why don't we start by just telling us a little bit about yourself and your background and your role with improving Sure. Devlin: So Devlin Lyles. That seems like an odd thing to say. So I'm a technologist by kind of trade and training, so I started writing software when I was very young. I was 8 when I started programming. Chris: My dad got me into it. Devlin: I started my first software company when I was 16 in high school, building used car websites and that kind of thing Right at the kind of dot-com bubble expansion, and so decided I was going to not do that as a career. I was going to become a professional soccer player. That didn't work, so I kind of fell back into it as a hobby and kind of continued on that. Chris: Most programmers think of a professional soccer player as a dream, right yeah absolutely. Devlin: And so I ended up kind of falling back into my hobby as a career and then came up through kind of corporate IT at Tys Foods and then got into IT consulting and been doing that for the last 15 years. So that's a bit about me. Chris: Okay, and let's talk a little bit about improving where you serve as president. Tell us a little bit about what improving does in your role there, and then you know one of the things I really want to focus on, as you know, is things on most people's minds over the last 12-18 months is AI, so it's kind of couched in that context. Devlin: Sure. So my role with improving has kind of evolved over the years. So I actually started as a consultant delivering to our clients and I came in kind of two and a half three years in and so we have an equity share model. So I grew an equity share at improving and then took over as president here in Houston in 2017. My global role for improving is chief consulting officer, so I own client delivery, thought leadership, go-to-market and employee growth kind of that space, and so AI has been a big part of that conversation. Now the interesting thing is I get to live in a time machine somewhat in this space of AI has been a big part of that story for us for five to seven years. The world with chatGPT, kind of making it a part of the zeitgeist, is really catching up, and so it's cool to have these conversations and really talk about it, because a lot of our excitement and like oh, it's going to be utopia from 2017-2018, when there were some big strides being made forward and we get to kind of relive with everybody else. Chris: Interesting. Yeah, so you're living it for the second time. Devlin: Yeah, and it's. The thing is that, going through at the second time, you get somewhat of the hindsight in real time, which is interesting. Yeah, because we ended up helping a lot of customers apply some of these technologies, and technology always has this kind of pull to off the shelf right Systems. We used to pay tens of millions of dollars to build custom right. Think about CRM, a client contact management system, right Almost everybody has today. Chris: Yeah. Devlin: In the 1990s that was a multi tens of millions of dollar project for only the biggest companies to really have a unified customer relationship management system. And today I can go, put in a credit card and sign up for HubSpot or Salesforce or Dynamics right off the shelf. There's this pull to off the shelf that happens in technology, which leads to the middle market and small businesses being able to take advantage of what used to be incredibly expensive technology and that's actually what we're seeing in the AI space is it's driving from. I no longer need 100 million to approach this problem. I can actually apply this for 20 bucks a month, yeah. Chris: It's a great observation and yeah it's so true that it becomes, I guess better, efficient and more economical right Each time, I guess, as technology is with us and develops longer. That's a great kind of segue. I want to just kind of start with what are some of the key factors a business should consider when evaluating their readiness for adopting AI into the business. Devlin: Interesting For adopting AI into the business. Readiness is mostly psychological, because there are pieces in the business today that you can do better. We break this into kind of three parts when we talk to business leaders about this. One is how do you do your job much more effectively, right? What's the superhuman version of Chris? Right, there's AI tools to make that happen. Like, I'm a very well augmented human, I have tools that analyze my notes and make sure that I don't forget things. I've got tools that keep reminders and stuff on my personal network. Now, they're not spamming my friends with, like text messages to buy things, but it's going. Hey, you haven't talked to Bob In two months. Here's what you talked about the last time, so I can reach out to Bob. Hey, man, we haven't caught up. How's your wife doing? How's your son doing? Like those kind of things. That's the superhuman version of me, because I want to stay connected with my friends Just bad at it and so it covers that gap for me. So that's the first part is like that personal productivity side, which is mainly just a resistance to change. That you'd see in any technology adoption. It's psychological, organizational. People have tied their identity to the work they do and so changing that means like an existential crisis sometimes, right? Sure, think about a bank teller when the ATM came out. Right Now, we still employ a lot of bank tellers, but their jobs drastically changed. It's that moment where we're not going to get rid of a bunch of humans and have robots doing those jobs. What we're going to do is change the job of the human to guiding them, controlling and managing the robots. Chris: I think that's an important point to kind of reemphasize for the listeners, because I think so much that's out there. You see these news headlines and articles. I think people think robots are going to take over the world and I think the point you just made that that's not the case. But the role the human will play will adapt and change and while that sounds scary in a vacuum, if you actually take a moment and look back, that's what's happened throughout our evolution, especially in the industrial world and the business world in the United States. Right, jobs have evolved and changed over time, and I've heard you say this before, so this is nothing different. I want you to dig in a little deeper on that to help the listeners understand and maybe some historical points to compare to. So it makes it a little more tangible. Devlin: Absolutely so. Think about the way we did accounting before the PC was invented, right? So before the Apple II, we're talking in the 1970s, right Before computing devices were in everybody's office on everybody's desk, right? The way we did accounting was we managed the book and you wrote entries in and you had somebody checking the math and you had the you know 10 keys sitting there with the stream of numbers coming out of it. Right, and your accounting department was massively larger than it is today. To be able to accomplish that, it had to be right, which was a big overhead for a business to bear. Right, and you had these big accounting firms who would help with economies of scale or whatever. But like, that was really the ballgame, right, and it took a long time to like, close out the books and do tax audits and those kind of things. Now fast forward to the introduction of broad computing power. That sped up that process. We still have accountants, we still have bookkeepers. In most businesses you can close the books on a month in 10 days, 30 days if you've got a lot of moving parts. It's not. Hey, we just closed January. In June, a crude accounting became far more prevalent. We had less financial fraud overall, the stories about it happen more often, but we have less by volume and we're actually getting more insights out of that, because it's no longer just tracking all the pieces but going hey, did you notice last month you had increased expenditures in this area without the increased revenue tied to them? And so we get business insights on top of what we used to get was just transactions. We not only have lower accounting costs, but we then have better outcomes from it. Ai is going to do something similar From a business perspective. It's going to allow us to get. It's going to allow us to get better outcomes or lower our costs, to give us pricing power in the market. Because all technology is labor compression right, what a welder by hand used to take hours to do on the original factory floors and structural integrity of the original cars that we were rolling across an assembly line right. Think 1930s, 1940s. We now have robotic welders who can do in 15 or 30 seconds with far more precision, with less human injury. Right Now, the quality checking, the x-ray and all that is still reviewed by a human to make sure that weld is solid, and even that we're automating some of. But like that, evolution allowed us to produce stronger, faster, cheaper, safer cars. I think we're in that space where AI is largely going to be applied to the problems that are on the edges of humans do a lot of it, but we're not very good at it because, like our bookkeepers, there's that whole notion of human error. Chris: Yeah, not that there won't be computer error as well. Oh, yeah, and so you kind of that's where the check and balance comes in. Devlin: And the idea of technology is just going to solve everything. Hopefully, as a civilization we've moved past right the 1970s to today. I used the 1970s because that was kind of the broad evolution of available computing right To today. Every new technology has created new problems. A joke with our team that yesterday's solutions caused today's problems. And that's a good thing, because, one, we always have problem to solve and, two, we don't have yesterday's problems. So AI being introduced is going to create things like we now need to manage bias, the computer error, right. That's not something we do today very well. When we talk about humans, right, like how do you manage bias at scale? In a thousand person company is like all right, hr and an army of training, but with a computer you can actually try to start tilting at some of these things. Now, does that mean we're going to do it Well, we're going to do it better than we do today. Probably we're going to do it wrong and have to create tomorrow's problems. Chris: Yeah, I love that perspective. So what are some of the obstacles or pitfalls that you've seen that businesses encounter when they're trying to implement technology, and maybe even specifically, obviously specific to AI technology? Devlin: So there are two. One of them is perfectly valid and it's going to be some learning that we have to overcome, and I'm going to start with that one the belief that I have to spend a ton of time and money to correct my data right. Because, traditionally over the last 20 years you've had data engineering and data warehousing and data lakes and, like you, had to clean it and curate it and do all this work. That belief is a little antiquated, right. You can bring in raw data and then actually use a lot of these automated systems AI systems to clean it up with you so that the labor of that is way less scary. Now that's the pitfall most people fall into is all I got to get my data cleaned up before I get any value. And so that ends up raising the price tag of going after these technologies and ultimately keeps companies from getting some of that benefit because they don't want to pay that cost. And then the second pitfall is building your own. And what I mean by building your own is every business has unique challenges and they have their particular flavors, right? It's why, where SAP works for one, but you know, acumatica would be better for somebody else as an ERP system. But you don't have to reinvent the wheel and we keep doing that, right? I was just talking to a friend of mine, houston based company yesterday. 500 million in revenue and we're like talking about one of their AI initiatives. It wasted $6 million, didn't get anything out of it Wow. And we're talking about them like. You can do that with almost off the shelf tools everything you guys were trying to accomplish in about four months for about half a million and the difference is that they try to reinvent all the wheels. We don't need to do that, just like you're not going to build your own email system, right? You don't need to build your own baseline architecture for a large language model. Use one of the foundational ones that's off the shelf and you don't waste a lot of that time and effort. Chris: And that gets you that good way to get started. Devlin: Yeah, it may evolve from there, may evolve from there you may hit a problem where you do need to build your own. Chris: I kind of the rule of thumb I use is if your IT budget doesn't start with a, b, you're probably not building your own machine learning models, so that raises a good question, and that would be how can companies distinguish between an AI solution that actually is going to offer value real value versus just a company following the hype right and being misguided by the solution. Maybe they choose. Devlin: Fall in love with solving the problem, not the tools. So if let's take my company right, we spend a lot of time trying to solve one big problem. That big problem was knowledge. We grow the acquisition We've done 14 acquisitions in 14 years and we always create knowledge silos. And so when we bring in somebody, our current team doesn't know their stories for, like, selling their skill sets, what they're good at, those kind of things, and they don't know all of our stories. And so we had this big knowledge silo gap problem right Right Now. Ultimately, what that means is when a customer goes, hey, do you do X, regardless of what X is, they're going to say no because they don't know the stories. Now, how do I overcome this? I could do training, all right, but then I got to do that training every time we acquire a company and we're doing like we're aiming for two to four acquisitions a year, which means that's not a sustainable thing because of the labor cost. Right, it's like, okay, well, maybe I allow the silos to continue and just accept that's part and parcel of the business. It's possible. Chris: Possible, but you're a miss out on a ton of opportunity. Exactly. Devlin: Or we take all their stories, their case studies, their customer testimonials. We loaded them into what we call echo, which is a AI enabled chatbot, and it literally reads SharePoint. Right, it's not like it's not parsing data. There's no big data engineering effort. It's loading Word documents, PDFs, all this off SharePoint and they just chat with it and they go hey, have we done a deal with a major energy company? And it goes yes, here are the three, they're most relevant to you. And then it embeds the PDF and goes and here's where you find more details, so that the sales team on a sales call can have echo up on another window. Like, hey, have we ever done that? And it goes yes, in this office, here's the people to reach out to that level of knowledge. Access would have cost us thousands of hours of training, Right, and so it's that type of thing. Focus on the problem. Where do you have pain and where are you wasting hours? You don't actually care as a business owner unless you're selling AI as a product, Right. You don't actually care if it's an AI solution, an automation solution or just really clever software. You just want the problem solved, and by not falling in love with the tool, but falling in love with solving the problem. You focus on the right thing Because the value add, the ROI, is all about the problem, not about the tool. Chris: Look, that makes sense. It's easy to remember, for sure, and I mean I think you're right. Devlin: I think most business owners agree. Chris: I just need this problem solved effectively and efficiently. Devlin: By the way, you find these problems by going. What would it take for me to 5x my business today? The things that immediately popped to mind? You're like, oh well, this would break and this would break, and this would break and this would break. That's your list. For me, it's like well, I need five times as many account managers and my accounting staff's got to grow and I'd need better hiring. That's my list. Do I need five times as many account managers or do I need to help automate a lot of the account management and administrator to make them more effective? How do I upskill and get my recruiters leveraging AI, sorting and those kind of things to pull more people into the pipeline? That's my list. By simply going. What would it take to get bigger? Buy a big number. If 5x isn't scary enough, tack a zero on there. Chris: That definitely would be scary. Devlin: So let's, talk about. Chris: There's a lot that's been written and it's something we're doing here ourselves and that's with AI out there. What are best practices that businesses should be considering around policies for using, evaluating, adapting AI technology in the business, ai technology in the business. There's a lot that I think it's probably best practice. There should one. Yes, you should have a policy, but anything you can kind of guide the listeners on on those issues around a competent and well thought out AI policy. Devlin: So it's got a few pieces. Number one data privacy needs to be forefront in that conversation, primarily to protect your business and to protect your competitive advantage. So if your AI usage or acceptable usage policy doesn't include something about how data privacy should be evaluated, that's a big gap. Now your opinions about data privacy are gonna be your company's opinions, but those tools that are cheap and freely available today are largely cheap and freely available so that they can use your data to train a better tool. Is that okay with you? Some people will like yeah, it doesn't matter, and some people are like no, I absolutely can never allow this data out of my control, at which point you gotta choose different tools. So data privacy is number one. Chris: To that point. You may be aware of this and I recently wrote a little, brought it on it, but you had the New. York Times lawsuit saying that all trained on copyrighted material. Trained on copyrighted material, so that's kind of to me somewhat akin to data security and privacy, and that's a whole other issue about copywriting and licensing around information. So we haven't talked with that in a minute. Let's keep on the data or AI kind of policies. And so you said, most important thing, data privacy. What's next? Devlin: Second is vendor resiliency. Now, this is gonna sound a little tough to like the indie developers who are trying to launch their product, but last year in the US there were 6,000 plus tools launched on the AI Hype Wave. Now the punchline to that story is over 4,000 have already failed Already, had to either pivot or gone out of business. Vendor resiliency if you're gonna start pulling these into your business, evaluate the vendor. Are they gonna survive long enough to be valuable to you, or do you now have a broken tool that's no longer being accessible that you've woven into your business? That is gonna drive you towards some of the bigger vendors, the ones that have been around for a while, and, as it kind of should. If you're weaving it into your ops Now for experimentation, use the little players, Like that makes sense to me, but when you're talking about a broad policy, vendor resiliency is gonna be a big thing. The other side of vendor resiliency is how are they going to indemnify you from the inevitable lawsuits in this space? Right? Microsoft, Google, Amazon have all said if you're using our tools inside the license agreement, there's indemnity. Right, that's a pretty big shield, right? Microsoft actually said that they would. If you're using their AI services. They would protect you and defend and pay a settlement if one ends up happening for copyright infringement. So, like the Times article thing won't hit the consumers of those AI tools. Microsoft has stood in front of it and said we're good, that's a big shield. Now if you're a small to mid-market software player, can you put up a shield right Right To your customers? As a customer, I need to start caring about this. And then, lastly, in that policy, some centralized knowledge repository, some centralized store, Because what we found is everybody's play. Everybody's trying, experimenting using these tools. They're wiring in their favorite one. I do this almost on a daily basis. I kick out unapproved tools from meetings that somebody like wired up like a meeting transcriber, listener, bot, and I kick them out of meetings and send a note to whoever did it. I'm like just to be clear not approved. Chris: Right. Devlin: Here's the approved one. Don't use that one and everybody's just so. Expense control and some kind of central review. It doesn't have to be heavy handed. Ours is literally just a let us know when you're experimenting so we can check in on the experiment because it might be something we want to share. Yeah, right, but some kind of central right. Yeah, because a lot of these are SaaS based. A lot of them are out, kind of in the ethos of like knowledge tools, like note taking tools that I use. There would be no way for improving to know that its IP is in that tool if I didn't tell them. And so you've got to. You've got to have kind of a reporting and honor system for the employees to tell you where your data and vendors live. Chris: So one of the things that I know that improving and the leadership and improving which includes you. You've done a great job of building a culture and a company that embraces technology, embraces innovation. What can you share about that experience and that journey at improving to maybe help others understand, you know how they may be able to do the same thing. Devlin: Absolutely so. I have the oddity of looking at this kind of if I look back down the mountain, it seems like it's a long way, but all I can see is looking up the mountain and it still seems insurmountable. So I guess first would be the journey doesn't end. Don't let the size of the mountain scare you, Just take a step Right. For us we have a lot of like growth and planning kind of baked into our employee management model. We call it PATH, that's our employee growth systems, and part of that is maintaining your marketable job skills, literally what we call hard skills right, the marketability of a person to maintain. Because there's this kind of natural degradation If I stop learning, I become less and less valuable because the market moves ahead of me. Right, and so, recognizing that truth and going okay, what are you doing this quarter to grow with technologies? Then we go okay, what new tech are you learning or playing with or experimenting with this quarter? What we have found is, as long as there's a vehicle for them to share that back to the company and make an impact, people are highly engaged If it is just playing over here and then they have to come back over here and do the same thing that they've been doing for 15 years less engagement, and so creating the vehicle in which their experiments can have a long lasting impact on the business created a lot of engagement. And then the other side of it is we recognized a while ago that if you're not growing, you're dying as a business, and that's true for all of our people. It's what we call the plateau of slow death. Like you've just decided to coast that will have an accelerating decline in your value to the business. How do we help people stay on a plateau of slow growth where they're still incrementally investing? Sure, Now for us that's five hours a week because we're a technology company, it moves quick. Right, that might not need to be five hours a week for somebody in manufacturing, distribution etc. But probably an hour a week just reading. Like there's the Wall Street Journal podcast, there's this podcast that's phenomenal for staying abreast of what's happening. Like consume an hour a week of new information for you and your team, and you'd be amazed at what doing that week after week will do to the business. Like it just accelerates. And it sounds very simple. It was one of the first steps we took. Chris: You know that the dedication to being intentional about the learning and self improvement on a weekly basis, I think is amazing that any business right I believe so I am amazed how many business owners and friends I have that work in businesses and they're so busy that they're too busy to survive. I've said here in this firm before and you have to repeat it, and we're all can be victim of it and guilty of it, but busy can't be an excuse. I'm too busy to do X when X is strategic work on how to improve the company or yourself. Busy can't be an excuse, Because if it is, then nothing will ever get done because you always feel too busy right, and so I pay for a lot of tools. Devlin: I'm a well augmented human right. One of those tools is summaries of like business articles and books and all that. And so while I was sitting here waiting for this conversation, I was reading one of those. And it's that overarching approach of like how am I getting value out of those moments, like when a meeting wraps up early, do you sigh in relief and like, walk out and waste 10 minutes? Maybe that's good recovery and you need that for emotional balance. Okay, but is it intentional? Did you go hey, you know what I need emotional balance and chose that. Or did you go? I got 10 minutes. I'm going to read that book summary, or I'm going to read an article, or I'm going to check out what's on HPJ innovation stuff, like those questions. Right, just making the consumption of data an option mentally for all this. This is why I say like, a lot of our barriers are psychological, because the technology is actually not scary Once you start exploring it. It's only scary when it's like Skynet and Terminator from the movies, and so then it's scary and that makes sense. Chris: But let's get this right, let's bring this full circle from the beginning of the conversation. Right what you're talking about and recommending people. Be intentional about that. Self learning, that discipline around self learning and improvement, is really going to be essential as new technologies come online, because we you said earlier right Technology is going to force the worker to adapt and the only way you can adapt is by continuing to learn. So, to be successful alongside technology like AI, it's going to be essential. Devlin: This is actually. I'm a future optimist, and what I mean by that is I think that technology elevates humanity right, Very similar to capitalism. Elevating humanity it has made life better. It's increased longevity, it's done a lot of things. Now, that's not to say technology is perfect and we live in utopia Like, but it is. Technology elevates us, but it makes us do the harder version of life right. Technology allows us to play life on hard mode. So, like social media, I can doom scroll forever, which means I have to own the choice. Right Before that, technology enabled me to stay connected with all my friends. I didn't have to make that choice Right. Right, ai, by taking a lot of the complexity, a lot of the time consuming tasks off my plate, means that all that's left are the difficult tasks, it's the hard mode tasks, and getting really good at the hard mode tasks is the value creation in the future. It's hey, I got to go write this software. The writing of the software, the actual typing, is going to get much easier, just like accounting, just like bookkeeping, just like going through and like automatic scanning of discovery documents in the legal space. Sure, used to be very time consuming Now is being accelerated by AI and automation. So now then, the hard part is understanding what software I need to write and why, understanding what those transactions mean to the business and why, understanding what, in that discovery, is pertinent, important and relevant to the story I'm telling. Right, like all the hard tasks, get left the difficult task, because those are the ones AI is really bad at Right. Chris: Basically for now. So before we wrap this up, I definitely want to ask you your thoughts on regulation and what you think Congress should or shouldn't do around putting some regulations in the AI space. Devlin: So AI regulation is coming, like that's going to be the case. Any sufficiently developed technology ends up getting regulated at some point. Should do. Transparency to empower a educated consumer is phenomenal Like stating if you've baked an ethical bias or a political or religious bias into a model so that the people who are using it can choose, right, that makes sense. Chris: Realize that the output is tilted in some way. Devlin: Right, that's great to know as a consumer. Right, and luckily that's where a lot of the early regulations in this space are tilting. The shouldn't do side of it is dangerously close to that, which is then publish how you built the model to prove that statement, which is a lot like saying give everybody your proprietary trade secrets. Right, there's a reason that open AI stopped publishing a lot of their and here's exactly how we built it, and that's because a whole bunch of other companies took that research that they poured tens of billions of dollars into and created additional models that were almost identical in performance. Right Now they're different and they were developed by different teams and all that. But, like, there's a reason it went from we have one major version of this to we now have 15 publicly available commercial models. Right, that gets dangerous when you start regulating people to destroying their business, and so that's the line I'm hoping we walk the stifled innovation that happens on that second one we're seeing in the EU when they passed the and here's all the restrictions of AI you have to publish your training set and your methodology and all this stuff. It's like awesome, and there was a mass exodus of AI companies from that area. Like yeah, they're like nope, we are not going to, not going to participate if you require us to kill ourselves. Chris: Right. And so we're going to invest time and money in something that they can't then have a return on. Devlin: I mean, if you look at the open AI side of it, this is tens of billions of dollars in decades of research and development and work to make this happen. Imagine if you then had a law that said and you have to enable your competitor, who doesn't have that cost, to then rapidly get to the same point for a 10th Right, and so there's a balance between you want to democratize some of it, you've got to balance the investment side of it, and if you go too far which I believe personal belief that the EU did it just causes a significant drop in investment. Chris: So you know, kind of with that in mind, where do you kind of foresee the evolution of AI over the next five to 10 years? Devlin: We have largely looked at AI as the Jetsons robot or terminator, where it's this one thing that is omnipowerful, omnikable, right, omnipresent. I don't believe that's where we're going. The best minds in this space, of which I get to talk to I am not one of, I beg the difference. Go ahead. They would tell you that it will be a cloud of things like imagine that you're surrounded by Chris's swarm of empowering bots. You've got a bot that helps you manage your schedule. You've got a bot that helps you take notes from a meeting without having to like jot them down, and all of these save you 10, 15, 20 minutes an hour and a half a day. That means somehow Chris is doing 50 hours of work in a eight hour day because you've got this super human capability that's empowered by all of these things. That's where we're headed. I just saw I was playing around with a toolkit that there's been a lot of hype over the last few weeks is the video generator, pica. It's like mid journey or Dolly or stable diffusion for images, but does videos. Chris: Okay. Devlin: Like cinematographic grade quality. The problem is you have to also get really good at understanding camera movements and placement and blocking and all these things that directors have known for decades, and so it's not built for this average consumer. It's built for making folks with that knowledge massively more successful. Right, being able to go and here's a rough of my movie idea. Right. Here's a short of my movie idea for $1,000, not 70. Chris: Right. Devlin: Right, that will accelerate the creative space in movie making, but it's not going to get rid of a need for that knowledge base. Same thing's true with geophysics and well-planning and the energy space. How do we conceptualize all of this and make a human significantly more powerful? So this team that includes a drilling engineer, a geophysicist and all this can plan wells and make financial analysis, and all that in days, not years. Right, that acceleration is where we're going to see it. We're going to see it through these kind of micro enhancements. I carry several of them with me. I've got a note-taking system that maps all of the connected topics that I've been researching and digging into and it's wicked, fun and crazy. But I built a chat system on it that runs on my laptop and so I can ask questions on my notes. I'm like, hey, in my last Vistage meeting there was a speaker who talked about this what were the key takeaways? And it goes. Here's the notes. Here are the key takeaways. It's that kind of empowerment, because human memory is fallible, and so how many of us have wished like I wish I had a better memory. Chris: It doesn't have to live in my head. Yeah, Kind of like what it. There was something five minutes ago I said I needed to do and now I can't remember what it is. How often does that happen? Devlin: I carry around to do this and to do this integrates with it, and so at the end of the day, right before I typically leave the office, I get a reminder set from the automation I hooked up to it. Now it looks at my calendar and goes where's the right point to remind a Devlin to do those things before the end of the day. So like folks literally like I don't know how you do this, I'm like I don't, I'm very well augmented that yeah, you said that more than once. Chris: I know you mean it very well augmented. So I was going to ask you what some of your favorite AI tools are. I think you've shared them just now, but maybe just a quick summary of maybe three or four of your favorite tools for the listeners who were trying to frantically take notes. Devlin: So I for network management. So my personal network management I use clayearth. You literally go to. Clayearth is the URL. I think it's phenomenal and I use that to manage my network. It does not spam or reach out to, it just helps me reach out and stay connected the kind of in my business version of that one is dynamics. We use sales copilot for dynamics. Einstein in Salesforce does the same thing. Chris: So in the business. Devlin: We use a different one because different needs, right? Sure For note taking, I use obsidian. You can use ever note or one note in this same thing and it'll do a lot of the same AI enablement through plug ins and those kinds of things. Chris: And then you mentioned one about just the main of the reminder. Devlin: So I use to do is and power automate. I've combined those two tools. So if you're in the Microsoft stack right, you use office 365 or Microsoft 365, you have access to this one already I didn't know it and so you can go to makepowercom. It's a Microsoft tool. You'll log in with your Microsoft thing and you can describe what you want it to do. I did this yesterday. I was presenting to a group of CEOs on this topic and I was like take the notes, my handwritten notes that I emailed a picture of myself. Take the notes I emailed a picture of to myself, parse them, put the text in my notebook, scan it for action items and put those action items into do list. Literally, that's all I described. And it goes okay, and it's got this massive library of these tiny little tasks and it pulls them all together and goes. Here's the automation that will do that and it writes the rough draft, the prototype of the automation for you and you just click all right, create. And it goes. This is the permissions I'm going to need. Are you good with that? Yep, go. And it's there and it's running. I had to write no code, I had to wire nothing together, it just did it and so we're using this for, like, back office automation all the time. Like, hey, take this output of our financial system, slice it, dice it in this way and it writes the pivot table creation and all that in Excel. Like that's might be half an hour or 45 minutes that I just saved our business partner in accounting, and so it's a lot of these tiny little bots. Chris: Wow. So when you think about AI and how it could be disruptive to industry, what are maybe one of the top two industries you think it's going to be the most disruptive to? Devlin: So oddly, I think logistics, supply chain and manufacturing are probably those two. One, they've typically been under invested in technology and so there's a lot of low hanging fruit. But two, it gives pricing power. Like, imagine that I can compress the labor to accomplish a task. I can now out price my competitors who aren't doing that, and in those two spaces where they're very commoditized prices can't. If you can be 3% cheaper while maintaining your margins, that's the ballgame and you can just put people out of business. So I think those two are going to have massive kind of immediate six to 18 month impact. If you look slightly beyond that, the construction space is huge in this AP great Houston story here has a robot called Dusty that they helped to develop. It takes the construction documents for a high rise and it prints the lay down onto the concrete. It uses basically a Roomba guided by AI. It parses the construction documents and, in color coded paint, prints the lay down. And it reduces the labor of manual labor, construction labor, of building out that building, because they don't have to snap chalk lines and measure everything and everything else, they just follow the color coded thing, which also means I need lower scale labor, which is the labor savings. And so these things are changing the game and changing the pricing power on a lot of these fixed bid contracts. And so you see some interesting spaces where traditionally non technology based business has a lot of low hanging fruit, like fintech and financial services has been heavily invested in technology. Less low hanging fruit there, sure. So the disruptive stuff I think is going to be in those three over the next few years. Chris: Okay, Devlin, this has been such an interesting and fun conversations. Thank you for doing that. I want to just turn just to a little bit of the fun side of things when I have a guest in, and what was your first job, I guess you told us today you were programming, but was that where you get paid to do it? Devlin: No. So my first job there was a pool near our house and I love like there was a cherry seven up, like you got the bottle cap thing and you could earn points and order stuff. Like that moment in time and I my parents like I didn't have enough allowance to like as much cherry seven up as I wanted, right, and so I talked to the owner of the pool that we were a member of near our house into letting me like, do the chlorine and the cleanup and scrub the pool for cash when I was 12. Like this was definitely not legal. And then so like I'm moving buckets of chlorine and doing all this stuff while my friends are playing at the pool, because I was earning $5 a day that I could spend on cherry seven up. Chris: I grew up from an early age right. I love it. Devlin: So hopefully I don't get anybody in trouble. I'm not giving you names of pools, okay. Chris: So what do you prefer Tex-Mex or barbecue? Devlin: Oh, barbecue Hands down. Yeah, I have a massive pit smoker in my backyard Like oh, for real Okay. So we throw a barbecue in Dallas every year for fourth of July, feed like 400 people. We throw one here at our office for Labor Day, memorial Day, which one's at the end of the summer. Chris: Labor Day, labor Day. Devlin: For Labor Day feed like 250 folks. Chris: Like I'm bigger than barbecue. You're serious? All right, I love it. And what do you like to do for fun when you're not out speaking? Devlin: on AI. So I play a lot of golf with my wife and she kicks my butt, or I like video games and stuff like that, and so my brother and I play a lot of video games Very good. Chris: Well, like I said, Dylan, I love the conversations we've had in the past. What you shared today was so enlightening and I know we'll be valuable to those listening, and I said that they probably, like me, took a lot of notes that they'll try to implement into their daily life. So thanks again for being here. Thank you, thank you.

TILT Parenting: Raising Differently Wired Kids
TPP 362: Dr. Chris Wells Explains the Theory of Positive Disintegration

TILT Parenting: Raising Differently Wired Kids

Play Episode Listen Later Feb 20, 2024 38:41


I have such a fascinating conversation for you today. A few months ago, I heard about something called the Theory of Positive Disintegration — a theory created by K. Dabrowski, whose name I was familiar with because of his bringing attention to the idea that gifted children have inborn traits known as overexcitabilities – and I was instantly curious. Positive Disintegration – what does that mean exactly? It sounded complicated, and good, but also messy. So I wanted to know more. That's when I learned of the work of Dr. Chris Wells, who is the founding president of the Dąbrowski Center and who is dedicated to sharing knowledge and resources about this profound theory and the psychology of giftedness. I invited Chris on the show to explore the Theory of Positive Disintegration with us, and fortunately for all of us, they said yes. And I will just say upfront — there is a lot that goes into understanding this theory and the implications it has for our differently wired children. So in today's episode, we are only scratching the surface of this theory. But I am so excited for the opportunity to share this conversation because I believe this fascinating framework has the potential to offer a new perspective on neurodivergence and mental health that is important for families in our community to explore. One last thing, this episode includes mention of suicidality and suicide attempts, so if those are trigger topics for you, please take care of yourself while listening.   About Chris Wells Chris Wells, PhD, LSW, is a neurodivergent writer, social worker, and Dąbrowski scholar with a passion for studying and applying the theory of positive disintegration. As the founding president of the Dąbrowski Center and co-host of the Positive Disintegration Podcast, Chris is dedicated to sharing knowledge and resources about this profound theory and the psychology of giftedness.Chris provides specialized consulting services to clinicians and educators internationally, delivering deep insights into positive disintegration and its practical applications. They also offer their unique blend of lived experience and professional expertise as an advocate and speaker for mental health awareness and suicide prevention. Chris lives with their partner and teenage son in Highlands Ranch, Colorado.   Things you'll learn: What the Theory of Positive Disintegration is and how it offers an alternative perspective on mental health struggles What the five domains of Dabrowski's Overexcitabilities How the connection between overexcitabilities and the autonomic nervous system can provide insights into nervous system regulation How the Theory of Positive Disintegration fits in with traditional therapeutic modalities How anxiety and depression might be signs of growth and development   Resources mentioned: Chris Well's substack Positive Integration The Dabrowski Center The Positive Disintegration Podcast Dabrowski's Overexcitabilities “Mellow Out,” They Say. If I Only Could: Intensities and Sensitivities of the Young and Bright by Michael Piechowski Michael Piechowski Adults with Overexciteabilities Facebook Group Living With Intensity: Understanding the Sensitivity, Excitability, and the Emotional Development of Gifted Children, Adolescents, and Adults edited by Dr. Susan Daniels and Dr. Michael Piechowski Welcome to Positive Disintegration (Positive Disintegration Podcast) Depression and Anxiety in Development (Positive Disintegration Podcast) Positive Disintegration in Children and Adolescents (Positive Disintegration Podcast) Disintegration and Neurodivergence (Positive Disintegration Podcast) Learn more about your ad choices. Visit megaphone.fm/adchoices

The End of Tourism
S5 E2 | Composting Cultures of Disposability w/ Clementine Morrigan & Jay LeSoleil (F*****g Cancelled)

The End of Tourism

Play Episode Listen Later Feb 13, 2024 76:24


On this episode, my guests are and of the Podcast.Clementine Morrigan is a writer and public intellectual based in Montréal, Canada. She writes popular and controversial essays about culture, politics, ethics, relationships, sexuality, and trauma. A passionate believer in independent media, she's been making zines since the year 2000 and is the author of several books. She's known for her iconic white-text-on-a-black-background mini-essays on Instagram. One of the leading voices on the Canadian Left and one half of the F*****g Cancelled podcast, Clementine is an outspoken critic of cancel culture and a proponent of building solidarity across difference. She is a socialist, a feminist, and a vegan for the animals and the earth.Jay is a writer, artist and designer from Montreal and is the author of the Substack jaylesoleil.com and the zine series What Else Is There to Live For. Jay is also the co-host of F*****g Cancelled.Show Notes:Clementine & Jay's TravelsThe NexusIdentitarianism and Identity PoliticsGentrification & SolidarityHow Nationalism Leaks into the LeftThe Contradictions of IdentitarianismFreedom, Limits and GuesthoodBorders and BiomesThe Quest for Offline CommunitiesRadical & Reciprocal HospitalityAuthenticityHomework:Clementine's SubstackJay's Substack (including Dumplings & Domination)Clementine's ShopJay's StoreF*****g Cancelled ShopF*****g Cancelled PodcastTranscriptChris: [00:00:00] Welcome to the pod, Clementine and Jay. It's an honor to have you both here today. Each of your work both individually and together has been a great influence on mine and definitely eye-opening and if I can say so much needed in our time. So thank you for joining me. Jay: Thank you, man. Thanks for having us.Clementine: Thanks for having us.Chris: So, I'd like to start, if we can, by asking you both where you find yourselves today and what the world looks like for you through each of your eyes.Jay: Well, we both find ourselves in Montreal which is where we live. I was working in homeless shelters for years and then I got let go cause I tried to unionize the one I was working at. Actually I succeeded in unionizing the one I was working at. And they mysteriously did not have any money to renew my contract after that.And yeah, so I'm writing and I just launched a new solo podcast about like world history outside of the West. And so I've been working on that. It's called [00:01:00] dumplings and domination, which are two things that human beings love. And Yeah, so that's, that's what I'm up to. Clementine: Yeah, so I'm also, yeah, I find myself in Montreal, in the snow, and I guess, relevant to the topics of this podcast one of the things I'm grappling with now is my perpetual existence as a unilingual anglophone in the city of Montreal, which is a bilingual city, but it's a French city, like.Actually. And I'm planning on having a child and I'm planning to have this child here. And so I'm facing the dilemma of being like an English speaker whose child is not going to just be an English speaker. And so I really need to learn French, basically. So this is my struggle, because being 37 and only speaking one language my entire life, it's like super hard to learn another language.And I've really, really struggled. A couple times I've made an attempt to learn French, and it's like really [00:02:00] frustrating, but that is one of the things I'm grappling with. I feel like it's relevant to the podcast, because in many ways, even though I've lived in Montreal for like almost seven years, there's a way in which I still am kind of like a tourist here, because I haven't learned the language.So, will I complete my transition into becoming Quebecois? Chris: Yeah, maybe so. Jay: Only time will tell. Chris: I was just reading this biography of Ivan Illich, who's like was an Austrian philosopher and he said that like trying to learn a new language, especially if you're immersed in the place is the greatest measure or degree of poverty that one can undertake because of the degree of dependence that they have on other people and not just dependence, but like dependence on their hospitality, assuming it exists in order to, you know, be able to understand what you're saying and communicate in that way. Clementine: Like Montreal is interesting because at least in the neighborhood that I live and in many places in [00:03:00] Montreal, it's functionally bilingual. So it's not like learning in an immersive environment as if you went somewhere and everybody's speaking that language.So you kind of just have to or you won't be able to communicate. Like you have to learn here. You know, when I'm fumbling around trying to speak French, people just start speaking English to me because even if they're a francophone, like, at least in the neighborhoods where I live, most people are bilingual, and they speak better English than I do French, so they will accommodate me, which is polite of them, and also, It does not help me learn, you know?Jay: Whereas the government of Quebec will not accommodate you. Clementine: No, the government will not accommodate you at all. And so, like, it's only in circumstances where, like, I desperately need to understand where, like, there's no, there's absolutely no accommodation. So. Chris: And that kind of touches on my next question, which is, you know, in terms of the travels that you two have.Has there been that degree of poverty elsewhere? I mean, I imagine you might have traveled to other places maybe in Canada, maybe elsewhere. [00:04:00] What have your travels taught you each, if anything, about the world, about your lives, about culture? Jay: Yeah. I had kind of an unusual relationship with travel.Because as a kid, I moved to a different country every like three or four years cause of my parents work. And so, yeah, I grew up like in Asia and not just like dipping into a place and then like leaving right away but spending years of my life in each country. Right. And like learning the languages and stuff.And so, yeah, I think that was a quite an unusual way to kind of experience travel as a kid. And I think that it did definitely have a lot of impact on me. Because I think that travel in general, I think is a wonderful and amazing thing, you know, which is why people like to do it. And it can be really profound for your mind and your understanding of the world and of other people, you know but obviously there's travel and then there's [00:05:00] travel.I feel really grateful that I was able to see so much of the world by living there, you know and I think that it was really important for me in my kind of embodied understanding that other people and other parts of the world are, you know, just as real and just as important and just as embedded in history as I am and as like the people are in my passport country, which happens to be Canada, you know?Clementine: Yeah. I've traveled a little bit, but I think for me, like, When I was young, I was too crazy to travel, you know, and I truly mean that, like I have complex PTSD and like as much as my life was so chaotic and like really, like, you know, on F*****g Cancelled, Jay and I talk about how we're both alcoholics in recovery, like, When I was drinking, I always wanted to be someone who traveled, and my life was very, like, chaotic and full of violence and danger and all those types of things, but the PTSD made it really hard to do [00:06:00] anything because I was always scared, you know and being a woman traveling... like, in recovery, I've wanted to try to travel more, but the combination of one being a woman traveling alone, it does come with certain risks to it.You're more vulnerable in certain ways and then add that to the PTSD. It's like... it's super anxiety producing, you know, so it's something that I've done a little bit but not as much as I would have liked to and I guess we'll see like what the future holds with that. One thing is is that like I learned to drive pretty late.I learned to drive in my 30s and once I learned to drive going on road trips was actually a way that really opened up travel for me because having my car with me gave me this sense of like safety, basically, that I could leave a situation like I was there with my car. So I had like the independence to like not be dependent on like strangers because I was afraid of them basically.But we went on a podcast tour last [00:07:00] year and drove like all across the United States in like a month and like drove down to like Arizona and like back up the West coast. And like, that was really, really cool. Chris: Beautiful. Thank you both. And so, you know, it might seem a little strange for you two to be invited on a podcast about tourism, migration, hospitality given that, you know, perhaps on the surface of things, your work doesn't appear to center around such things, but I've asked you both to speak with me today, in part, because I see a lot of parallels between what you've both referred to as the nexus in your work and what I refer to as the, a touristic worldview. And so to start, I'm wondering if you two could explain for our listeners, what the nexus is and its three main pillars.Clementine: So, in shorthand, or in, like, common language, you might call it social justice culture. There's a lot of different ways that this culture has been talked about but it's a particular [00:08:00] way of doing politics on the left, or left of center. And. Like, Jay and I come from inside this culture, so we are coming from inside social justice culture, being, like, leftists and being queer people and having existed in, like, progressive social justicey spaces for our entire adult lives, basically.And basically, we're noticing that there wasn't really language to talk about some of the phenomenons that were happening inside social justice culture or even, you know, social justice culture itself doesn't really give itself a name. Like we can call it social justice culture or we could call it something else, but it doesn't really have a name that it like claims for itself.It basically describes itself as like just doing politics or like being morally correct, you know, right? Yeah, being right. So we just started using the nexus as kind of like a placeholder for talking about a phenomenon that like doesn't really have a name. And we were trying to describe like this social phenomenon that we were totally [00:09:00] immersed in that there wasn't really language to describe. And we pulled out like three components that we saw interacting with each other to produce this phenomenon that we were calling the Nexus. And those pillars or components would be cancel culture, social media, and identitarianism. So, you maybe want to say more. Jay: Yeah, and we were just noticing how like when those three components were interacting on the left, you know they were producing a kind of like fourth thing that we were calling the Nexus and it's just like cancel culture was kind of this, you know, this culture of disposability and very sort of like intense acrimony functioned to sort of like boundary the whole thing and to keep, you know, certain views out and keep certain views in and sort of like establish the boundaries of what was thinkable or not.And the identitarianism provided the sort of ideological underpinning of the whole thing, like a way of making sense of the world, a [00:10:00] way of thinking about any problem and any issue, you know? And then social media was kind of the medium in which it was all taking place. And that was providing a lot of the kind of like the scaffolding of what it ended up looking like.Yeah. Does that make sense? Chris: Yeah. Yeah. Yeah. Yeah. Thank you. Thank you both. And so I like to start then if I can with with identitarianism and you know as it pertains to, I guess, the end of tourism podcast and the way I've come to understand it is that to be a tourist isn't just to be a foreigner, but a stranger to the place one inhabits.And so in this sense, I feel that people can be tourists in their own homes and to a large degree the housing crisis, among many others seems to enable and ennoble this, you know, people know that they won't be able to afford a rent increase. And so they don't bother getting to know their neighbors or participating in the community.And beyond that community is often described in demographic terms, you know, the black community, the queer community, et cetera. But rarely [00:11:00] anymore in terms of the diverse people that you actually live beside or near. And so, for me, this is where tourism not only hits home, but is kind of unveiled as maybe beginning at home.You know, it's not just an industry, but something akin to a lifestyle or culture, as you said, Jay, of disposability. And so in this context, what I understand is identitarianism seems to enable this kind of touristic mentality of not needing to think of myself as a person of consequence in my building or in my neighborhood because I'll be out of here in another year or two anyway, right?And so I'm curious what you think of this idea and whether you think that identitarianism is a consequence of these crises that exist today, like the housing crisis, like landlordism, for example. Jay: Yeah, I definitely think it's all connected.And I think that I think that a huge part of all of this, right, is accelerating alienation that people are experiencing under the [00:12:00] dominant form of neoliberal capitalism. And alienation just describes this deep embodied sense of disconnection from oneself, from one's work and from one's fellows.And this is a concept that goes all the way back to Marx and before him even, you know, but Marx, I think correctly identified that capitalism had a mechanism within it that amplified this, this sense and created more of it. And I think that as we hurdle down the path of neoliberal apocalypse, we're sort of like more and more exposed to the sense of alienation.And so what does that mean? It means that we end up feeling like we don't know who we are. We don't know where we are. We don't know who the people around us are. We're just sort of floating, we're atomized, you know. We don't have roots or the connections that we do have feel fleeting and shallow.You know, and it produces obviously a deep sense of like misery in a lot of people, [00:13:00] whether they know it or not, I would say. But it also produces a longing for connections that feel real and that feel authentic. And I think that the turn towards identitarianism that has become more and more apparent over the last like decade or so both on the left and the right because I think that the rise of like the alt right, for example, was very much an identitarian movement as well. Yeah, it's that, that pivot towards identitarianism is a consequence of people feeling like they have no connections and they really want connections. They want to feel embedded in something, you know and so they're looking for other forms of community that they can belong to other than the communities that they actually live in, you know, because those communities that they actually live in have started to feel so disconnected and illusory, right?I do have more to say about the concept of like authenticity and all of this, which I think is like really foundational to tourism. But I will pass the mic. Well, I feel like we're probably going to get [00:14:00] into it later. Clementine: Okay. Well, yeah. So I mean, I think when talking about identitarianism, it's useful to make the distinction between identitarianism and identity politics.And we make that distinction on the podcast, but in case listeners aren't really familiar with the term identitarianism, I think it's useful for us to be a little bit clear about what we mean. And basically, identitarianism is distinct from identity politics. So, identity politics is just basically saying that identity matters when we're thinking about what is affecting people's lives, right?And when we're organizing politics, when we're trying to think of solutions where we can make the world better, identity is going to play a role. And that just means we're acknowledging that things like racism exists, homophobia exists, like, sexism exists, that the ways that our lives are shaped are impacted by identity.And like, we agree with that, we're not against that, as a framework. But identitarianism takes identity politics to a new place, where it basically does two main things to it. One, it [00:15:00] acts as if identity groups are homogenous, or share, like, very intense essential qualities, you know? So, when you make a statement, like, the BIPOC community thinks this.You're being identitarian and you're also being essentialist because you're actually making a statement in which you're saying that billions of people share a view, which is incorrect and also, like, very disrespectful to the vast diversity of thought that exists within any identity group, right? So it's actually like, it's an expression of essentialism and this belief that, like identity groups share essential qualities.And it erases, like, the vast political differences and personal differences that don't exist always within any identity group. And then secondly, Identitarianism acts as if identity is the primary or only way that power functions. So when we're trying to understand, like, what is wrong with the world, and what is going on, and why are we all suffering?Identitarianism [00:16:00] encourages us to look first, and maybe only, at identity as the way in which power is divided and organized. And so, in this way, you know, we have people, like basically collecting identity points. And what I mean by that is, like, adding up their various identities to try to understand their lives and their access to power.So people will be like, okay, I have these identities that are considered marginalized identities, and then I have these identities that are considered privileged identities. And so if I do some math, I'll be able to figure out where I stand in terms of power, right? And this is a total oversimplification of the way that power works.Identity is probably impacting your life in various ways. and may have a role in like your access to power, but it is not the only thing, and it's not as simple as just adding and subtracting to try to figure this out, and many, many things are lost when we are only using identity as the way to understand power, and so like when you're talking about, I just want to say that like that what you said [00:17:00] about people moving, I think is really fascinating because I moved like every year or two years.My entire, like actually I kind of haven't stopped because I've only lived where I currently live for like just about two years. So, I've basically been doing that since I was 16. I'm 37. Wow. Chris: Wow. Wow. Clementine: You know, and like, I don't mean cities, but I mean neighborhoods and at least apartments, you know, and actually my current neighborhood I've lived in probably the longest that I've ever lived anywhere but I've still moved several times and I've managed to stay in the same neighborhood, but like over the course of my teenage years, all my entire twenties and into my thirties, like, I was just constantly moving.And, you know, I, I had a sense of place in terms of the city I lived in. Like, I was living in Toronto for most of for my twenties. But I lived all over that f*****g city. Like, all over that city. You know, I didn't live in any particular neighborhood. And so because of that, like, I didn't really have that sense of like place and like there wasn't really a point in knowing my neighbors because it's true. I was going to [00:18:00] be moving and I knew that and so that is like a material reality that is being structured by capitalism and by landlords and rent and not having enough money and not having housing security.And identitarianism isn't really helping me to understand that, right? Like I can't really make sense of that experience if my only lens that I'm looking at the situation with is identity. And that's just like one example, but there's many, many things that, identity as if it's our only frame is not going to help us to understand.Jay: Or like it, it might help you feel like you understand it, but it's probably not going to give you a very good explanation, you know clear picture. Yeah, it's like there's this word that I stumbled across recently. I think it's like "monocausotaxophilia" I'm pretty sure is what it is and it's like the it's like the obsessive belief that like one there's like one answer for everything or like one thing can help you explain everything and it's it's like a common like logical fallacy that humans fall into, where like we just we discover something that really seems like it's right and then we're [00:19:00] like this can explain everything we can just apply this to everything, you know, and I think that identitarianism is like a an excellent example of this tendency that humans have Chris: Yeah.Wow. Kind of monotheism for politics, I guess. It's fascinating for me because I see a lot of these identitarianist dynamics play out in the context of tourist cities and the one that I lived in, still live around, just not in anymore.And then of course the people that I interview who deal with over tourism and of course all the crises that come with it. And so You know, like in the early pandemic, for example, in places like Oaxaca or Medellin in Colombia, for example, they suddenly became hotspots for digital nomads and other tourist escapees.And the consequences of over tourism in these places already existed, but once travel restrictions had [00:20:00] dropped and vaccines were doled out, places like this, and maybe the more obvious ones like Bali or Hawaii or Barcelona those consequences exploded and, you know, the number of visitors skyrocketed. And so both local people and foreigners opened Airbnb after Airbnb, and this is kind of what ended up happening in a lot of places in the, in the course of, you know, a couple of years essentially deepening the economic and social divisions in those places. And so what we've seen is that people simply tend to point their finger at the tourists, at the foreigner, ignoring the economic and political issues that affect these things.And so, what's arisen on the internet at least have been faceless social media accounts basically cancelling tourists or foreigners for you know anything you can think of for being cheap, people complaining about prices on their YouTube video or whatever, and others criticizing local cultures for X Y Z Zed pardon me and some Some who [00:21:00] refuse to, like, to speak the local language, for example, all of which, you know, constitutes bad behavior.And even still, like, other people, foreigners who become landlords in their new homes, right, who move to another country and just, you know, rent a nice place and then put it on Airbnb or something. And so, I'm curious about the individual? And why do you think, in so many of these cases, especially in regards to people who claim to be leftists or anarchists or radicals, that the focus is squarely put on individuals or individual behavior as opposed to the conditions or systems that created that behavior?Jay: Oh yeah, I mean, we've become like ludicrously unable to actually look at structural causes of anything in a way that allows us to formulate policy and work towards policy. Like, I think that like one of the major like failings of the left currently is that it is, especially in like the Anglo world, like completely f*****g unmoored from policy.I think in the US there's like a really [00:22:00] obvious reason for that, which is that there is, you know, no political party that's even remotely. So the idea that you could, that you could have policy that you like is sort of like nonsense to people in the first place. Right.So everything then becomes about either it would become either about individual behavior or about some sort of like more radical revolutionary option, you know but the radical revolutionary option doesn't exist. So it's all about the individual behavior. And a comparable situation is going on elsewhere in the Anglosphere as well where the sort of like political avenues for policymaking are severely lacking.So I think that there's this like strong, strong emphasis on the individual, on individual behavior, on moralizing on sort of angrily saying what should be true rather than working with like, you know, like reality. Yeah. Clementine: Yeah, I think that people, like, we haven't seen an effective left in our lifetime, like, you know, like we haven't seen the left making gains, like, for [00:23:00] millennials, like basically for our entire lives, you know?We haven't seen movements be successful, and so we feel very powerless. Like, there's a deep, deep sense of powerlessness in the face of capitalism and in the face of climate change and in the face of so many of the horrible conditions that we're living under, and we don't have a lot of evidence of things working, but we know we have the power to take down some individual person and publicly humiliate them and destroy their life.And so I think people get very addicted to that sense of power because it is like a balm to the abject helplessness that we feel under capitalism where we don't have a lot of power to really make the changes that we want to make, you know, but one of the things we're always talking about on the podcast is how cancel culture, while it provides this like temporary relief and this feeling like we're doing something like we have power.In fact, it erodes the very conditions that would allow us to have real power and the conditions that would allow us to have real power are solidarity. Right. Like, the one thing that the working class of the world [00:24:00] has that the capitalists don't is our numbers, right?Like, they have all the money and the use of force, you know? But we, there's just lots of us, and also we are the ones who make all their s**t. Like, or like, run their little online companies or whatever it is that they're doing now. Yeah, exactly. So, it's like literally the workers of the world are the ones who actually make capitalism run and there are no profits if the workers of the world organized and f*****g withdrew their labor, right? But currently, we don't have any conditions of like an organized working class movement that could actually threaten to do something like that. And so, there's no real avenue. Like unions have been like totally f*****g eroded there's no solidarity.There's no, like Workers movement that is being effective. I mean there are attempts at it like there was I don't know what happened with it because I'm off social media now, and I haven't been checking the news, but there was a gigantic like uprising of Bangladeshi textile workers who were like going on strike and like the police were trying to totally shut them down.I don't know what ended up happening kind of disappeared off my radar, but I think any movement for solidarity, you [00:25:00] know, cancel culture b******t aside, because honestly, it is such a distraction. Like it's annoying and it's a distraction would have to move towards like international solidarity.And I think that this is something that... we don't even have, like, solidarity, like, where we live, let alone solidarity, like, across the globe with workers in different places, you know? But under global capitalism, I think we're going to have to start looking with an internationalist lens and thinking about what would it look like to have the workers of the world actually uniting.Jay: Yeah. It reminds me of gentrification, you know? It's like, individual gentrifiers are sure like annoying, right? You know, people who sort of like don't belong there and are bringing their like annoying habits into the neighborhood or whatever, you know, and driving up prices and all this.But at the end of the day, this is like a structural issue that can only be solved by policy, right? You can't, you can't just sort of like be hostile towards gentrifiers and expect that to sort of like end up with anything other than you being angry and other people perhaps being frightened for like a couple of years until the [00:26:00] process of gentrification is complete.And I think that you know, there's like a similar thing with tourism, you know, I mean, tourism is just kind of like gentrification on like a, an international scale in a certain sense. Yeah. Chris: Yeah. Yeah. I mean here in Oaxaca, tourism is like 85 90 percent of the economy in the center of the city. And so it's all changing really quickly, wherein, people are sometimes hearing more English than Spanish in the streets, right? Not just in Oaxaca, but in other places as well. So there's this relative and understandable kind of resentment against the foreigner, but then when we have these gatherings and, you know, people ask me, well, like, "what should we do?" And I say, "well, go talk to the tourist, like, you can build solidarity with that person, even if it's by them understanding what's going on here, and maybe not coming back. As an extreme example, right. But what's also happened as a result, not just this waving or wagging the finger at the individual, but also in the context of identitarianism, reconvening the nation state.[00:27:00] And so my next question.. It kind of feeds off of the first and has to do with the effects or consequences of this kind of pseudo cancel culture that arises from tourism crises in places like Oaxaca and others. And so what you tend to see are locals identifying tourists or foreigners based on skin color.In Latin America, you know, the tourist is by and large the gringo, or the gringa, basically a white American. And what's happening as a result, especially among people who consider themselves, again, leftist or anarchist, is that they end up self identifying in opposition to the foreigner. And so what we see is an over identification, or what I will call anyways an over identification, with one's own skin color, class, and especially, especially now, nationality.And so, understanding the other as American means I'm Mexican or Colombian, or whatever, right? And I'm curious whether or not either of you consider [00:28:00] identitarianism to be a child of nationalism or how nationalism fits into these contemporary understandings of identitarianism.Jay: Right, right. Well, okay, I definitely have some thoughts about that for sure. I would say that like, nationalism is certainly one of the kind of original modern identities, right?And it was very much like crafted on purpose to be that, which I think that a lot of people don't know, unless they've like, you know, done like a sociology degree or something, but nationalism and the nation itself was like a modern invention created a couple of hundred years ago for specific political purposes, namely to unite quite disparate populations within at that time, mainly like European countries and to try to get the children of those people to think of themselves as like French instead of Breton, you know and to get them to speak French instead of Breton, right? As an example. And there is similar cases all over Europe. Anyways, that being aside, yes, like [00:29:00] nationalism certainly is like a form of identity and one of the most important forms of modern identity. I think that when we talk about identitarianism, often we end up not talking about nationalism very much because on the left, nationalism tends to be sort of like not the most important identity.It's one that you kind of downplay, especially if your nationality is one of the privileged Western rich nationalities, right? However, obviously if your nationality might you know get you points in, in whatever sort of like game you're playing, then you might, you might play it up.Clementine: Yeah, I have a couple things to say about this. I mean, one, the nexus or social justice culture, that we talk about on F*****g Cancelled, comes out of the United States of America. And the United States of America, they don't know that they're in the United States of America. So, Jay: This might be surprising to people because of the number of flags that are everywhere in America, but they don't know that they're in america.Clementine: They think they're just in the world. They think that that is the world, you know? And so, [00:30:00] there is this like, this lack of awareness or like basically they're not contextualizing what they're thinking and doing in an American context, even though it is, and then they're exporting that to the rest of the world, especially like English speaking places.But then it like leaks out from there. But it is an American way of understanding things based in an American context and an American history, right? And so you see this a lot with identitarianism where the popular framings and understandings around race, for example, that are going around social justice culture right now are specifically coming out of an American context and American constructions around race, and they don't map on perfectly to other contexts, but because it's being exported, because Americans are exporting their culture all over the world, we, in other places, are expected to just take it on and to start using that framework. And people do, but it doesn't really work properly. It doesn't really make sense in a different context. So that is a way in which like nation kind of disappears even though it is operating [00:31:00] in the way that identity is actually being shaped. Another thing that happens, and Jay and I were just talking about this for an upcoming episode. Another thing that happens is that because in North America anyway, like we don't really use nation as a category in identitarian thought, what ends up happening is that people actually racialize their national identity in a weird way to make it make sense in identitarianism. And so one of the ways that this can happen is that people from South America who are white, in a Northern American context, are sometimes racialized and considered people of color because they are not speaking like English as a first language, for example, or because there's cultural markers that are showing them as not North American, and so therefore they are impacted by various types of discrimination and so on and so forth, but in their context, they are actually racialized as white, but then in North [00:32:00] America, they may be racialized as non-white. And so this actually comes through like a I mean, first of all, it shows that race is like a made up category that can shift and be expressed in different ways.But also it is partially like the narcissism of North America that can't conceptualize difference, basically, and understand that, like, a person can actually be white and from South America and speak Spanish, for example. Jay: Which, like, this can also sometimes, we were joking about this, too, because it's true, like, this can also sometimes extend to people not being sure about, for example, like Portuguese people, and sort of like racializing Portuguese people on the basis of their sort of supposed affinity with like Latin America.⌘ Chris Christou ⌘ is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.Yeah. Yeah. And I don't know, one thing that I want to mention too, you're just reminding me of this because of my research that you, that you mentioned is that like racialism, which is the idea that race is important and, and as a major identity category that people should care about a lot, let's put it that way, has often existed very [00:33:00] uneasily with nationalism.And so for a lot of like neo Nazis, they're not necessarily like opposed to nationalism, but they would, they would treat racial affinity with much more importance than they would a national affinity, especially when the national affinity is seen to have been kind of polluted by like foreign elements, for example, you know, and a big part of the national project has been to say that, like, we are all members of this national identity, sort of like, no matter who we are, blah, blah, blah. Right. And obviously some of us are more than others, right, is usually is how it's gone, but it tries to integrate like many different groups of people, including, you know, in the United States, for example, including like black Americans.Right. And, you know, the project of the integrated military, for example, has been a big part of the American national imaginary but if you're a white racist, you're not interested in a sort of national identity that, that includes black Americans as [00:34:00] well.Right. And this is also somewhat true on the left in different ways. But yeah, I'll just put that out there. Yeah. And then I guess the only other last thing I would like to say about this is that when we are anti essentialist and anti identitarian on the left, one of the things that, that like an anti racism that is rooted in an opposition to essentialism will argue and put forth is that race is a constructed and made up concept, right, which is something that I believe: race is not a real thing.It is like racism is real, but racism is based on the invention of this way of dividing up people based on race. And so there's a lot of anti essentialist leftists who are arguing this, but one thing that is important is to not confuse race, which is a made up category, with culture and ethnicity, which are real things, right?And one of the things, like, Jay and I have been talking about, and we're going to do an episode about this, or, like, related to these ideas, is, like, we actually care a lot about things, like, language protection, [00:35:00] culture protection, like the importance of people being able to keep and protect their cultural identities is like, it's a very important thing in respecting people's like human dignity.And in Canada, where colonialism has so thoroughly attacked indigenous Canadian people's cultures. They don't have their languages anymore. And like, Protecting language is, like, hugely important for people's mental health and well being, right? So, dividing those two things, that being, like saying race isn't real doesn't mean that we're not in favor of protecting culture and language.Yeah. Chris: Right, right, right. Of course. What's interesting about the, I guess, the reactions to overtourism here, it's not just that, Oh, the gringo is an American, so I'm a Mexican, but it's also racialized. It's also, okay. So who I see on the street, white people, and because I'm dark skinned, it reinforces those dualities, binaries, et cetera but it re-racializes local people, and in the context of Mexico [00:36:00] anyways the roots of their understandings of their racializedness, if I can say that comes from the imposition of race, of races, by the Spaniards, onto them, and saying this is who you are now, 400 years ago.Right? And so the new invasion, the tourism, right, is recapitulating that dynamic in ways in which people internalize the racial impositions that were put on them 400 years ago. Or their ancestors, right, I should say. So it's just mind boggling.Clementine: Yeah, I think, I think it's interesting though, right? Because how do we hold, like, the importance of culture and language and ethnicity while also acknowledging that those things were always shifting, changing, like, were never a static, constant thing, you know?That always included diversity, and within it, language is always changing and evolving. Culture is always changing and evolving, but also those things are real things that you can speak about and point to, and definitely notice when they'restolen from you or when you're no longer allowed to speak your language.Right. So yeah, like, I think we tend to go [00:37:00] to extremes. It's either like it doesn't exist or it's not important, or it's like a very essential, like static thing that has always only been one thing. Chris: Yeah, and also for a lack of history, right? I've been doing this investigation into Macedonian culture, ethnicity, history, etc, in part because my father is a first generation immigrant to Toronto, but from Agaean Macedonia and, you know, the Ottoman Empire was there controlling those lands for four or 500 years.And so the Ottomans were Muslim and the Macedonians weren't Macedonians to them, they were Christians. They were a Christian race, Mm-Hmm regardless of their language. And then when the Ottoman Empire fell, the Greeks and the Bulgarians ended up fighting over that territory, that land, that a lot of people considered to be Macedonian.And so the Greeks and the Bulgarians referred [00:38:00] to the Macedonians as the Macedonian race, no longer the Christian race, but the Macedonian race. So anyways, beyond that, once you get into the 20th century and start speaking in a global context, it's like, no, no, no, they're not the Macedonian race, they're a white race from Macedonia.And so, just this idea that race is inherently tied to skin color is very contemporary and it depends, of course, where it's coming from and who it's coming from, right? This idea of what race is becomes very fluid. I wanted to ask you two about escapism. I was just listening to your episode on freedom as a principle. Mm hmm. One of your most recent episodes and in it, you two speak of carceral institutions, jails, obviously, and I don't think it's very difficult to imagine how a touristic worldview, one built around escapism arises so fervently among people who feel powerless [00:39:00] to change the conditions in the culture that are oppressive and domineering.At the same time the glorification and commodification of that escapism through tourism creates a kind of a culture of abandonment and disposability, in the sense that you're leaving behind all your people and then once you get to this place, well, you're actually not responsible for anything you do there because it's not my, it's not my people, not my home.And so I'm curious, do you think that the freedom, that is usually couched in the freedom of movement has limits? And what do you make of the the inability to stay still in the context of all this?Jay: Man. Yeah, I mean it just makes me think about my own sort of like internal struggles that I have where like, basically like whenever I'm not doing very well, I have this part of me that wants nothing more than to just f**k off and travel sort of like indefinitely. It's like one of my strongest like internal urges, you know.I [00:40:00] don't know. I just keep thinking about that. But yeah, I mean, another thing that comes to mind for me, that is not, not a direct answer to your question, but it's just something that's coming up for me is that like, I think for like so many people in the wealthy West, you know they live in places that are comfortable because they're in the wealthy West, but they're like psychologically so destructive because it's just like these like vistas of like parking lots and like box stores and like depressing nothing places that no one could ever love and I think that like for a lot of people, and I hate to say this because it sounds like snobbish, you know, but it's like, whether or not they know it they are being psychologically attacked by the f*****g places that they live, you know, and there's a part of them that is like, I want nothing more than to get out of here, you know, and see something beautiful, and my question is sort of like, why can't we live in beautiful places? You know, and, and I actually like do live in a beautiful place and I love where I live, you know, [00:41:00] and the neighborhood in Montreal where I live is like gorgeous, you know it's a beautiful place to just walk around and look at stuff.It's very f*****g pretty. And there's a reason why I live here, you know, and I lived in other parts of the city and, and I gave up. You know, bigger, cheaper apartments to live here because I like how it looks and I like how it makes me feel to sort of like leave my house and f*****g walk around. And other people like it too.Millions of people come to Montreal as tourists. We actually have tourists in this neighborhood. And, and like when I leave my house and like walk around the corner, there's like lineups of tourists, you know that I have to sort of like navigate to like get to the gym.Because they're flocking around because it's f*****g nice here. But like a lot of places in North America are really not nice. They're not nice places to look at. They're not nice places to live. You can't f*****g walk anywhere, even if you wanted to you know, everything basically looks the same as everything else, you know?And yeah, it's not surprising to me that people would want to get out of there. Right. Also though, as I say this, it's not just North America that people [00:42:00] come from when they're tourists, right. Right. We're seeing like a gigantic increase in tourism from countries like China. Japan has always produced a lot of tourists, you know? So I think like part of it is just that like, as people get wealthier the desire to just see different things and whatever is always present in people and if they can do it, like there's no particular reason why they wouldn't but I think that it's, it's definitely worth trying to imagine what travel could look like and what like guesthood could look like, you know outside of a context where it's all just like this very commodified process that is not necessarily very great for the people who are on the kind of like hosting end of it.But yeah, again, like I live in a heavily touristed city, but apart from the tourists being quite annoying to have to walk around, like when there's like snow everywhere and they're taking up the whole sidewalk apart from that, and the fact that like Airbnb is a big problem in Montreal they don't bother me much here and I think that like a big part of that is just the, like, you know, Montreal is a very wealthy city, you know, so like an influx of like wealthy [00:43:00] foreigners doesn't like impact it that much other than to sort of like inject cash into the economy, which is not such a bad thing, right? And I do think that like part of the answer to all this is that we need to be like taking seriously internationalist solidarity and like the development of places that are not as developed.And it reminds me of like sort of debates about immigration to the West, you know, and it's like immigration, is a complicated topic and people have lots of different opinions about it, but like a lot of people on the liberal left will, will, will act like immigration is all by itself, like an amazing, awesome thing, always. And then people on the right will act like it's this terrible thing always. And I'm like, I don't know, it's kind of a neutral thing, you know, like there are good and bad things about it. Obviously people being able to travel is like a nice thing. I'll just say this, like, I think that like immigration is a good thing when the places that people are coming from are not so undeveloped or so poor that it's like forcing people out. Right. You know what I mean? And yeah, I dunno, , that was, that was like five [00:44:00] different tensions, so That's great. Chris: Love it. Clementine: So what, what is coming up for me is I saw this drawing that was like of whales swimming in the ocean.And it was like, basically saying something like, borders aren't real, because like, there's no borders in the ocean for whales or whatever. And this is part of this, like, thing on the left, and it's kind of related to what Jay was just saying, that, like, on the left, we do have this, this big like, belief in things like open borders or just free movement, free travel as, like, this positive and, kind of obviously good thing that we should support and I understand it, but at the same time, the fantasy that there aren't different areas in the natural world is false.There might not be borders, but there are biomes. And one of the things about travel that I don't think gets talked about a lot, and that is a big issue with, like, environmental destruction, is actually the reality of biomes and the fact that the movement of people across the world at the rapid way that we do it now [00:45:00] is moving plants, microbes, fungus from biome to biome and in different biomes the way that evolution works is that, like, those ecosystems were totally separate for all of this time, and then when some new, plant, animal, microbe, fungus gets into this new ecosystem, it may be that the other beings that live there have no defense against it, right? And then it causes massive problems, such as what goes on with invasive species.But like, just as a random example, like one of the major things that's causing extinction of bats is the introduction of this fungus into North America that comes from Europe or something and it comes on like tourists. They come and they don't know that they have it on them because it's just like little fungus and then they go and they visit bat caves and then they accidentally infect the bats and the bats are all getting sick and dying, you know, and so I just bring up this random example because the question of like what does it mean to be responsible when we go somewhere [00:46:00] when Even us just going there can cause problems that we didn't intend, you know?And it is a really complicated question. I'm not saying I necessarily have the answer. But especially from an environmental perspective, even if we get climate change under control, even if we deal with, you know fossil fuels, which we're not even close to dealing with, but even if we deal with that, we would still have this big question of, if we are going to continue to travel, say we get rid of planes, and then we have like airships and we're able to fly in a way that's not killing the climate, we still have this big question about what it means when we're bringing things on our clothes by accident.And I'm kind of like, instead of like security at airports, like I wonder if there could be like these places where we go in and we basically have to like leave our things. And like, when we arrive, we get like a special clothes that we wear. I don't know what it would look like because we're carrying fungus on our clothes.Jay: So. It would be really interesting to think about borders in a better world, you know and what that might look like, because I can imagine something like where it's like a supra national kind of like agreement between [00:47:00] different countries and stuff. And like the border is the border of the biome, not the border between the countries, you know?Clementine: Yeah, and I was just talking about it on like an environmental level, which I do think is very important and doesn't really get talked about enough. But I also think we can look at this on a human level where, you know, if we're thinking about like invasive species and like a plant coming in and just growing and taking over, we can also think about how when we bring.You know, for example, English, we can think about English as an invasive species, you know, like English is a species that's going to go there and because it's the language that if people speak more than one language, one of the languages that they speak might be English because it's kind of like taken over the world, then it means more and more people are going to be speaking English and then other languages are going to start dying out.And so this is like literally what an invasive plant species does, you know? And so I think, We need to think about that when we're bringing English into a space. Like, what are we doing in that space? How are we changing that space by bringing English into it? And I say that very self consciously as a unilingual English speaker, but [00:48:00] it is, you know, like.So, like, this idea of what it means to be a responsible guest, what it means to be somewhere, to visit somewhere, we need to think about, not even just the more obvious things, like throwing our garbage around, or being totally disrespectful, or using a place as a party spot, and then leaving, like, all of those things, I think, are very obviously disrespectful, and we need to be more considerate, but there's even more subtle ways, where just our very presence and the way that we bring ourselves can have an impact that we don't intend. That I think is part of the conversation about what it can mean to, to travel in a more ethical and responsible way. Chris: Amen. Amen. Yeah, I'm reminded of, and I don't know how relevant it is for the conversation, but I'm reminded of Terrence McKenna, the great psychedelic bard. He had a hypothesis that the main vehicle of evolutionary change or growth wasn't human beings or mammals, for example, but language.And we were just vehicles for language's evolution and spreading. And that languages are just fighting this secret battle, this secret [00:49:00] war. But, anyways. To speak to what both of you are saying, I interviewed, a man named Daniel Pardo in the first season of the pod, this activist from Barcelona, and he said, you know, "in no way can tourism be sustainable because we can't extend it to everyone on the planet. Like, it's actually impossible to ensure that seven or eight billion people can go on vacation once a year or fly. Right? He said, "there's no right to fly." And, so it's important to ensure that people have these freedoms, but then to what extent can they actually be applied? And I remember being back in Toronto last summer for a few months, and there were whole families and communities of migrants sleeping in front of churches on the street because from what I understand, the Canadian government the year previous had let in something like a million migrants and maybe half of them went to Toronto because it's the financial hub of the country. And there was [00:50:00] simply nothing for them there. There was no plan for them, by the government, there was no jobs, no social support, nothing, right?And so they ended up on the street, sleeping on the street in front of churches, en masse. In terms of the people that I knew who grew up there, and myself, we had never seen that before. And so you can create the freedom to migrate and things like that but what is at the end of that movement, right? So there are definitely these dynamics and nuances that need to be spoken of in terms of travel and the way people travel and the borders and, and biomes that affect the way we move. Yeah, and of course, I could go on and on. I have two more questions for you two, if that's alright? Sure. Okay. So on some of the f*****g canceled podcast episodes you have subtitled the theme of the quest for the offline left. And, you know, I think [00:51:00] largely emphasizing the word offline. And so, you know, what do you think being together offline and organizing offline can do to people whose lives have been shaped around online and social media mentalities?I mean, the three of us are more or less of the age that we still have a lived memory of life before the internet, but what about those who don't? Clementine: Yeah, absolutely horrifying. I mean, I think we are social animals who evolved to be together, looking at each other's faces, like, talking and being in the same space together.Like the alienation that Jay was talking about before, like both leads to our compulsive social media use and our desperate attempt to find community through that, and also completely contributes and worsens the problem, making it a million times worse where we are staring at our phones when we are literally, actually, physically together and could be having a conversation.And that is really like sad and depressing. And I [00:52:00] think that in terms of organizing across difference building solidarity with people... like on the Internet, we can believe that a community is people who share either like an interest or an identity category with us. And that is a community online whereas in real life, community is going to be full of people who are not necessarily like ourselves, who we might not share interests in common with, and we might not share identities in common with, but they actually are the people who are in our spaces in real life, and we actually share many things in common with them that we might not realize because we share a place together, we share a world together and being able to build relationships with people who are different from ourselves is, first of all absolutely necessary as a political strategy if we want to get anything done on the left.But also, it's deeply enriching for our human lives, you know, to be able to meet and talk to people who are not exactly the same, not the same age, not sharing the same politics, like, who are just different from ourselves. So I think it's very important. The other thing is like, the absolute erosion of our [00:53:00] attention span due to social media.I have recently not been on Instagram for, like, a month, and I feel like my brain is, like, damaged, and I'm, like, recovering from a severe damage to my attention span, you know? Like, I wasn't able to read books for years, because I just didn't have an attention span to, like, really keep up with it.It was, like, way harder for me than it used to be when I was younger, you know? Because I have been on the feed that is giving me just five second blips of information and then giving me something else and getting my brain hooked on this, like, dopamine response cycle, which is absolutely horrifying.So, I think it's also really bad for us, like, mentally in terms of our ability to think critically and at length and to, like, pay attention to what we're thinking about. Yeah, Jay: I think that the internet gives people the illusion that things are happening that are not actually happening You know like I don't know you make a a really good post and 2, 000 people like it Wow.Okay. They're all scattered across the f*****g planet. [00:54:00] You know what I mean? It doesn't, you don't know them. It doesn't translate into anything, right? It feels good. And you feel like maybe you're influencing the discourse or something like that, you know but it doesn't translate into anything.And it can give you It can give you the idea that like to be politically active and to be politically successful is to get more people liking your f*****g posts or whatever, you know, but it's not true, right? It also gives people the illusion and Clementine was gesturing at this that a group of people, it's not even really group, it's like a category of people that are like you, is a meaningful sort of group to be in. But let's say like, take like queer people, like LGBTQ community. Okay. And then you extrapolate that to like the whole world, or you can even just extrapolate it to like North America. You know, that's like a scattering of people that are spread out over this enormous geographic area.You couldn't possibly meet them all. Not only because there's so many of them, but also because they're so scattered, right? And you couldn't possibly organize them all and like, and so [00:55:00] on. And, and it's not a community. It's not a community. It is. It's like there's a word I'm looking for and I was, I've been trying to think of it for the past, like five minutes, but I'm just going to say it's like an electorate or something rather than like rather than like a community, you know it's like this, it's this like demographic group that like marketers might market to you or that politicians might try to get to vote for them or something like that. But that's not, that's not what a community is. That's not what a real group is like a real group automatically encompasses difference.Like a, a sort of like authentic human group, like always has differences of like age and occupation and often ethnicity and all these sorts of internal differences that, you know, human groups have always had. Right. And when we try to sort of like make these groups based on identity, which the internet makes very, very, very easy.We like miss. The people that were actually around, like, yeah, but yeah, as for the offline left, I mean, we desperately need to be organizing and in the real world, and I think that[00:56:00] that's not to say that like you can't do anything on the internet.Like the internet obviously has massive advantages for many, many reasons, you know. F**k, there's this like, there's this like image in my head. I'm a very like visual person. I get these like pictures in my head and then I'm like, I have to explain this picture. But it's like the, the thing about like the, the, the groups being this, these kind of like electorates, it's like, if you are this electorate, then you're only choice is to sort of petition your leaders to do something for you. You know what I mean? But like if you are a real and authentic community, you can organize your community to enact something in the real world, you know? And I don't want us to always be in the position of petitioning our leaders, because it presupposes the leaders, it presupposes that we accept their authority, you know, it presupposes that we don't have another option other than to allow a tiny class of parasitical, like rich people to rule everything for us, you know but I would like us to move away from that.Clementine: Yeah. Like just one other thing about that is you'll [00:57:00] see, you know, this gesturing towards actual organizing but through posting, but it's missing the actual organizing piece, which involves building relationships, right? And building trust. And so one of the things you'll, you'll see, like in the last couple of years, I've seen it a few times with different political things that are going on where people will just randomly call for like a mass strike and they'll make a post about it.And they'll be like, on this day, we are calling for people to strike for like this political issue. I saw it for like abortion rights in the United States and I recently saw it for solidarity with Palestine. But it's like, people can't just walk out of their jobs randomly because they will be fired.Like, the point of unions and the point of organized labor is that you have this guarantee where all of these people are taking this risk together in an organized and strategic way and they are trusting each other that they are doing it together and it is their numbers that makes it so that the boss can't just fire them all.And they have strike fund. There's a lot of them and they're [00:58:00] supporting each other to do this and it's organized and they've actually built enough relationship to be like, okay, I trust that my fellow workers are going to do this with me. So, like when I take this risk, it's like the risk is mitigated by the numbers and I know I'm not alone in it.Right. But a social media post cannot produce that. It is not relationship. And so random people reading that, like they're like, "should I just walk out of my job tomorrow?" Like, probably if they do that, they're going to be the only person at their job who's doing that, and they're just going to be fired or reprimanded, best case scenario. And that is not organized at all. And, and so then people are like, "Why aren't you guys walking out of your job? This is not solidarity." And it's like, "you're right. It's not solidarity. Because the solidarity hasn't been built." Like, you have to actually build trust with people to get them to take risks. And if you don't build that trust, and you don't have those actual real relationships, it's not a good idea for people to take those risks because they'll be by themselves taking those risks. Chris: Yeah, begs the question if in order to have solidarity with people elsewhere, does it [00:59:00] have to exist at home first?Clementine: I would say yeah. Absolutely. Jay: And solidarity is kind of meaningless if it's just you. Like it kind of has to be organized, you know, like in some meaningful fashion and that can take place in a small scale or a large scale. But if it was just you feeling solidaristic, like it doesn't, yeah, Clementine: like for example, with the Bangladeshi textile workers, you know. If there was organized labor in North America and say, for example, that like the H&M's were unionized, which I do not think that they are, but if the H& Ms were unionized because, like, the clothing at H&M all comes from Bangladesh, the workers could choose to do a solidarity strike, to strike alongside the Bangladeshi workers, so that the retailers were striking alongside the textile workers, right?And that would be very effective and very cool if that was happening, but in order for that to happen, the retail workers first have to be organized, and they have to have unions, and they actually have to have like an organized labor force here in order to do any kind of meaningful action in [01:00:00] solidarity with the workers in Bangladesh.Chris: Food for thought. Yeah. Thank you both. So my final question. Of the main themes of the pod, one is radical hospitality, which, to me at least, stands as a kind of antidote to industrial hospitality. You know, the systems, the

Building Texas Business
Ep065: Sailing the Waves of Business Expansion with Mike Vellano

Building Texas Business

Play Episode Listen Later Jan 24, 2024 35:19


In today's episode of Building Texas Business, Mike Vellano joins us to share the things he has learned from building his company, Vortex. As the CEO who has steered Vortex's innovative growth, Mike offers a look inside deal-making - including acquiring their significant European branch. Beyond mechanics, it's a celebration of relationships that drive success. We explore personal connections too - from Mike's early job to his passion for Tex-Mex. Plans for an Italian sabbatical link work ambitions with heritage. Mike's gratitude for support systems and understanding of sacrifice offers a holistic view of leading an expanding company. Join us for stories of commitment, strategy and groundedness through change. Mike's experience navigating Vortex's eventful voyage provides actionable insights for any enterprise. SHOW HIGHLIGHTS Mike shares his journey of strategic acquisitions and company growth, emphasizing the significance of people, process, and technology in building a successful enterprise. We explore the legacy of Mike's family in the water infrastructure industry and how this history has influenced his professional path and the founding of Vortex Companies. Chris discusses the challenges and motivations behind starting Vortex in 2015, drawing parallels with the entrepreneurial spirit exemplified by figures like Kobe Bryant. Mike reflects on the transformation from a hands-on CEO to a leader who empowers his team and how he leverages team strengths through delegation. We touch on the importance of maintaining a company's core values, with a focus on the "win as a team" philosophy and the role it plays in Vortex's culture. Mike provides insights on the integration process of new companies and people into Vortex's culture, emphasizing the value of internal sourcing for successful expansion. We discuss the recent acquisition of a foundational manufacturing company and the strategic considerations behind taking calculated risks in business. Mike expresses his personal love for Tex-Mex cuisine and his anticipation for a sabbatical in Italy, highlighting the balance between professional aspirations and personal heritage. Chris and Mike explore the intuitive and emotional aspects of business negotiations and the importance of emotional intelligence in steering deals to success. Mike details the complex nature of legal matters in international deals and the reliance on expert legal counsel to navigate antitrust issues and other legal challenges. LINKSShow Notes Previous Episodes About BoyarMiller About Vortex Companies GUESTS Mike VellanoAbout Mike TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Mike Vellano, founder and CEO of Vortex companies. Mike and his team have built Vortex through a series of strategic acquisitions since 2015, 17 in total by focusing on people, process and technology. Mike, I want to welcome you to building Texas business. Thanks for taking the time to join me. Mike: You got it, man. Great to be here. Chris: Yeah, let's kind of just dive right in. You're the CEO of Vortex companies. Let's start by just telling the audience you know what that company is and what it's known for. Mike: Vortex is a comprehensive and full portfolio of products and services that serve to repair wastewater and storm water assets, pipes, structures, anything that you, anything that lives in a municipal or a commercial industrial application, and we do it all non-intrusively and through what's called trenchless technology Okay yeah. So find a pipe without excavating. Chris: Okay. Mike: So we get to save the environment a little bit every day. Chris: That's good, I like that. So tell us like this how did you find your way into this industry? Mike: So I'm a, my background, I got a. I have a picture of my great grandfather, paul Villano, laying a water main. In 1925, Italian immigrant came to this country installing a water main and I mean just connected to New York. My family actually fixed that same water main years later. I'm not a finance guy or I don't have an MBA. I'm a. I founded Vortex and I've spent my entire career in this industry, other than you know, cooking in a restaurant and college or bagging a few groceries. I've been married to this trade and and moving that forward, my family was in. My family had a pipe supply business and a and it was in trench shoring and open excavation. My father was one of the pioneers in this industry. In 1994, brought a technology here with my family. The business was actually called trenchless technology and and I left the family business to go to go at a quick stop at a trenchless services business. And then you know the vision to get this thing going. Chris: Wow, so so in. I guess there's a lot of ways. It's kind of a continuation of the family business. Mike: Yeah, I mean, if you look at, my grandfather was using an old steam cable machine to lay a water main to. You know my family delivering and supplying, you know, frames and covers and fire hydrants One of the first water work suppliers in the country to my, my, my father and his brothers and my own goals, who are all entrepreneurs, watching them expand it and bring new technology to, and all of them you know, sort of systematically advancing with the industry, with water infrastructure and buried assets and now vortex is. You know we're an innovative, we're an, we do a lot of R&D and technology development and we and we get to do some really great things with in some pretty, some pretty tough areas. Chris: So it's interesting you mentioned innovation and and R&D. What are some of the things that that you do to kind of instill the innovative side or innovative spirit within the company? Mike: You know, I think, if I think about you know our core values, we have this, our most. Our core values are centered around this, this statement or mantra, called. You know we win big together and then, as we drive down into our culture, we have that. You know we actually have that trademark. It's a big part of what we do. We sign off emails on it and we rally around it if you go into an office, but winning big is thinking big. You know that's a big part of our marketing strategy and you know what we have, the way we think about products that work in infrastructure. You know they don't always come from the lab to the field. They come from the field and they're perfected in a lab and and we have a lot of great people that are that have dedicated their career to this industry, that we've worked with for a long time, and I think everybody at Port Texas is an innovator and I think our culture drives that. Chris: That's great, yeah, so it sounds like you kind of encourage it at all levels, not just some one department that's responsible for things. But are there any things that you do to kind of allow a you know a process for the ideas from the field to bubble up? How do you create that I guess in engagement or pride for people to speak up? Mike: You know, I think having, I think having what what you know Tretches technology is innovative in itself. I mean we're taking liners and pregnant with resin and going through a manhole and we're essentially performing angioplasty in a sewer application. You know we're. When we're coding a large, you know 16 foot diameter culvert with a geopolymer, I mean there's, those solutions don't aren't solved with a material only, it's a system. So it's people, process and technology. I think the way that we innovate and encourage innovation is really, is really through. You know, it can be reactive, it can be proactive. And we started our geopolymer business. We really focused on how the field you know the material led to really, you know, try a ton of innovation and perfection in the field. That was driven by most of our superintendents and most of our group people. So, you know, I think it's, I think it's a combination and it's a, it's chemistry. It's, it's, you know, some of it's organic chemistry, but there is engineering and there is some real science behind it. But there is an art form to what we do. You know there is. You cannot perfect this technology in a closed environment. You need to be able to deal with a lot. You know pipes are pipes of all kinds of construction and diameters, and and condition. Chris: Gotcha, Let me take you back down to the building. You said the beginning. You mentioned that you kind of, you know, broke off and started this. What year was that? Mike: So that would have been 2015. Chris: 15. So you know, that's, you know, the one of the questions I like to ask. You know, guys like you is okay, you had to take, get, I guess, the intestinal fortitude to be ready to kind of take that step, say, okay, I'm actually going to do this on my own. What? How did you know you were ready? What were some of the things looking back that you know, you thought, you know you go, man, that was really tough and had I known it would have been this tough, I may not have done it. Mike: Yeah, I think you know I read it when you're in, when you're in YPO or you're in some of the organizations that are involved. You get some really great case study. And you know there was an article about Kobe Bryant and somebody asked Kobe Bryant how you know how he thought, if he thought he would ever play in the NBA. He's like well, my dad played in the NBA. You know my dad was an entrepreneur, was a CEO. You know I saw that, I saw that spirit and all with all my uncles and my family and my grandfather was in great uncle brought products to this country and innovated waterworks supply and we're one of the first in the country to do something like that. So my risk profile was kind of set out at birth. I mean, I don't, seeing it being around it, seeing your name and the pride of having that on the side of a truck or the side of a building was always something that I wanted to either stay in the business or grow it or, you know, have something that I could, you know, not only make my family proud of but also build on my own and I think, the real working for my family and you know, working for my family, you know we always say we're. You know I would never change that experience. But working around entrepreneurs, and then the stop that I made before I started Vortex, you know, allowed me to get to, you know, the MBA I never wanted you know working around private equity and doing some things that allowed me to recognize, you know, the principles of business that some family businesses don't always fully capture, like HR or fleet management or things that are, or how you know how you manage a P and L and things that are typically, you know, you know, managed at a page in my Italian family, a patriarchal level or you know, however that comes to bear. So I think I always, you know well, my wife, I remember coming home and she had 12, you know Ford envelopes and was like, what are these? And you know I was like, well, we finance some trucks, it's gonna be okay. You know, we had no money in our bank account. So I think some of that stuff is easier for me just because I, you know, back to the like, I had somebody that modeled that risk profile and that ability to say, hey, just go take some chances and you create your own lock and you work. Chris: That's a great story. I mean, it's unique. You're right, cause it sounds like you almost didn't have a choice in it. Right, you were just brought up through from birth to understanding how entrepreneurs work, the risk about it. But yeah, as you were talking, and that has to put a whole another level of pressure on you to say, yeah, this is what I, this is what we do in the Vellano family, I better make sure it works, cause everyone else looking back uncles, grandfathers, and they've all made it work. I better make this work. Mike: That has to be a whole another level of pressure 100%, and I think that's, I think that's, I think that is a driving principle, right, you know people, you can harness pressure and use it, use it effectively. I mean, sometimes I probably run myself a little too hard, but I still am afraid to be late to work. Chris: You know it's just. I love that, yeah, Especially in today's world right that the CEO is afraid to be late and there's that level of kind of accountability that, as a leader, you want to instill in everybody in the organization. Mike: What are some of the? Chris: things you do to kind of to do that to demonstrate that. I mean, obviously it starts with you know your actions, but how do you try to show up as a leader to make sure that those values that you grew up with get infiltrated throughout the organization? Mike: Yeah, I remember going to the first management meeting with my family and and you know we it was you know if you've been around Italians, you, there's always a big dinner. There's always, you know, more appetizers than entrees on the table, good wine, or you know definitely a few cocktails, and you know you sit there and you go and you run and you come in town for a meeting and I remember one of our branch managers. I remember one of our branch managers showing up late and my dad locking the door and just saying you know it's like that, it's two minutes late, it's like, well, we, this meeting started at seven o'clock. Chris: And. Mike: I've done that a couple of times. I'm mellowing out a little bit, but when I first started this business, I mean as a 30 year old guy, you know you're trying to prove a point and you realize that there's better way. You know that's not always the way to do it, but that left a left an impression on me. I think you know there are definitely times where I get overextended and I got to move calls around and I'm not. I want to be, I want to be more, but this is. It's a big job with a lot of responsibility and you got to prioritize differently. But I think you know our core values are you know we are a driven business and I think them seeing drive and our organization, not only by me but our team I mean our team is our team is a very close group, you know. I think, like when we went through our core values, we talked about how teams win. You know families fight, you know, so I don't know he's, I don't. You know we think like a family, but we work like a team, we are a team and I think them knowing that we are going to win as a team, I think that, look, they know that we're all going to get up, that nobody's, that nobody's fallen behind. And I think in a dynamic organization where that's a driven organization and you know they see every time they walk into a vortex office, they see that core value, that we are driven and core values are for all. You know some people. We stand behind ours and I think some of them have become a little cliche, but I think that's how we keep people. I think that's how we, I think that's a model that comes from our entire executive team down to the organization. Chris: Yeah, I would say you know we talk about core values. In my experience, if you identify them right, then their behavioral characteristics for the behavior that you, as the organization, want to see, expect to see and, almost you know, demand to see for those that are going to be successful in your organization. So you talk a lot about I love the win as a team and I thought it was. I love that family's fight, tim's win, that's a good one. I'm going to use that again. But so culture is definitely important to any organization. It sounds like it is. You know, obviously, the years with that. The win is a team mantra. To me, that, then, means that the hiring and onboarding process is critical to making sure you're getting the right people during the interview process as you're bringing them on and building the team. So what are some of the things that you do at Vortex to try to make sure you've got the right processes in place in the interview and integration process to add successful members to the team? Mike: I think that onboarding is we have a great HR person that our onboarding process when we first started was where are we going to grab a steak and or where are we going to where's a fun place to do an interview? And we've created some. We Brooke has really helped us to kind of formalize some things, and our head of shared services that to make that first day you know that first day at Vortex their most exciting day. I mean that's it's got to be. You know whether it's the type of swag they get or their waybook or whatever those things are, and what their introduction is to an organ, to a high performing organization. I mean they got to feel like they're. They got to feel that fire and that encouragement day one. You know when you I think that if you build your team right and you build your people, you know we have we've acquired seven companies now and our executive team has leadership across our. The leadership across our organization has come from those, has come from those transactions and those folks have moved into pretty dynamic roles in the industry and high level leadership roles. So we've brought some of their core values along. But we've also elevated several members of you know an acquisition we did in Maine. We have three people running different parts of the business. Our COO has mentored several you know of our younger project managers and sales people into roles that they're going to be leaders in our business and we have the same role, you know, for me as sort of a sales support role that you know young men that started around 22,. One of those guys is is our is our senior VP of services now and he's been with us for 12 or 14 years through through other places. So I think we focus on you know it is and it's a sink or swim Sometimes. We're, sometimes, you know we do, we do sort of police, our crew and we in our drive gets in the way of really understanding, you know, and wanting everybody to be more than maybe they should be in some cases. But yeah, I think that was a bit of a ramble but hopefully I answered your question. Chris: Oh yeah, you did. I think it's great. So I think in that answer that you hit on a couple of things. I want to follow up on 17 acquisitions in that sense 25. Yeah, that's small to large. Mike: I know that we've got. Chris: Yeah, I know that you recently just closed a new transaction, so it sounds like there's been a lot of growth through acquisition. You know entrepreneurs or people that started a company. I mean, they're faced with right. You know, how do I grow? Do I grow organically? Do I grow by acquisition? Do I do both When's it right? So what are some of the things I guess that you could share from your kind of strategic thinking about? When you felt it was right to make those acquisitions, how did you vet that to go Okay, this is a good fit, knowing, I guess, there's no sure bet. Mike: Yeah, we're acquiring businesses from $1 million to $15 million, $20 million in revenue. So a few of these businesses have been smaller tuck-ins or technologies or somebody would call them an asset deal. So we have, and in all of those we've never hired a banker. We source them internally because we either have a customer or a vendor relationship and we have some, you know, we have some. We have a little bit of a matrix that we use, you know, in the sense of do they have personnel, do they have technologies? Do they support the things that we do? Are there people innovative enough to expand? And, if we can, we add value. We're not going to buy a business that we can't grow organically or turn into something that is truly going to make that business better and make our business better. Sometimes it's technology and sometimes it's, but there is always an organic element to everything that we do. We start, we add crews every day, we implement our technology developments into our own service businesses or into others, and a true differentiator in how we go to market, like how we go to market up until, you know, up until this recent transaction, which is a products company, a subsidiary that I can get into that in a few minutes, but this is the biggest, the largest acquisition we've made and most of our product product's business was developed and grown organically through some smaller, what I would call partnering opportunities with. You know our we're so proud of our business out in Utah. You know we grew we've grown that business, by you know, 20 times from when we acquired it in 2019 with because we had a partner that understood the chemistry, we understood the operation and commercial side and together, you know, great products and a great strategy work. So that's been our that's been a big part of our strategy. And the product side and the services side. We've bought, we've acquired some mature businesses. We just bought a business in the UK that we're really excited about. It's got an excellent market opportunity. It's a service business but they fit our DNA. They're not afraid to do, they're not afraid to go out and work with difficult customers or on difficult projects or take on emergency jobs. You know we live in a municipal world and we really do focus on selling. We go after negotiated work. We don't just go and low bid work like a lot of, like a lot of municipal contractors do or have to do because they don't have the resources or you know, or some of the, I think, some of the talent that we have to go utilize procurement networks or emergency contracts. So it's a steady diet of acquiring to build on or just doing it. Crash roots organic. Chris: Gotcha. So then the next question comes. You do all these acquisitions. Acquisitions sound great and sexy and you go close a deal, but it will only be successful if you are successful in the integration process. You've done 17 of different sizes. It sounds like you've gotten pretty good at the integration process, so I want to talk to you about something about that. It's clearly not happening by accident if you're good at it. So what are some of the tips that you could share about what you all have done there? Processes you've you've developed I'm sure they haven't all been successful. You've learned from some failures, so talk to us about that, tell us kind of you know how that's evolved and vortex for you and your team to make sure you get the integration piece right. Mike: I think we start integrating a deal before it's close and I think that's important and I don't think that's a strategy that can be. I don't know if you can hear that thing. No. I don't know, and I don't know if that's a. I don't think that's a strategy that everyone has a luxury to support. But part of our story is we you know we've never hired as never hiring a banker. We are very familiar with the acquisitions that we're going in to make, both from a personnel perspective, the technologies that they support and how they think about the world. You know we want, we want these acquisitions to be as excited to join vortex as we are to acquire them. The other thing that we don't do is buy 100% of anything. We're typically partnering with a seller that is going to come into the business and continue on and you know we and we do a really good job of I think of, of, you know creating the right level of support. I'm understanding what their skill sets are. At a seller come to me after we bought his company and say you know what? I always wanted to own a business but I never wanted to run it and I'm like, ok, I can see that, but let's put you in a row Like you're. We're here because you were doing something right. Let's figure out what you're, what you're good at, and I think you know our team collectively took a step back and was like this is what he's going to be good at. And he's been and he's one of our best in that role now and still a shareholder and had enough, you know, hasn't had enough. You know really believed in what we're doing and we believed in him as a in this role. And you know, some of a big part of integration is understanding what everyone's thinking and being transparent and saying, hey, you know, you really think of this. We need to get you a better finance person, like, yeah, your finance person can go do this. We were not here to. I think our real focus is finding people and the other thing that we don't do and we buy cash flowing businesses that have good roots and have good people and we don't buy distress businesses. We're not. That's just not who we are and that's understanding what your capabilities are. We don't we want to manage. We want to manage a business, to grow it and build it and make it better. Like I said before, and I think when you really look at, hey, this is we. As you grow up, you know you you'll learn to deal with those, with those situations. We just had a business in Colorado. We kind of took a step back and said, hey, we're breaking even here. This is a distraction. Maybe we can move these assets somewhere else and focus somewhere else, and this is how we can do it in a way that will be more productive for everybody involved. So I think a big part of integration is really understanding our deals and having that luxury by being part of the diligence and really, I think, starting integration almost before we close an acquisition. Chris: Yeah Well, and what I hear you saying is look, we're very thoughtful about and transparent about, the process, and those are two key elements, I think, to anything being successful, so that you're going to have clear communication. It also sounds like you take a little page out to Jim Collins. Good to grade and get the right people on the bus, but in the right seat. Yeah, so your example of I want to always want to be an owner but didn't want to run it. I mean, that's someone that probably should be on the bus, obviously, but he just sure on the right seat for him. Mike: Yeah, I think that you know it's the my father would call it the Holy Trinity. It's sales, operations and finance. But you know, good to grade is that's one of the one of the big takeaways of our best businesses have just really a really great balance across all three of those, all three of those areas. I mean anything R&D, anything project level, any good strategy you have to have. You have to hit all three of those areas. Chris: Yeah for sure. So you talked about a lot of these acquisitions being either vendors or partners that you have interacted with over time, so that, in first to me, you do a really good job at Vortex of creating some really strong relationships with your vendors and your business partners, you know. So let's talk about that a little bit. What are some of the things you do to create in your people, I guess, to foster those strong relationships that sometimes lead to these add-on acquisitions and then become part of the team? Any tricks or things there you really encourage? Mike: You know, like you made the comment about innovation before, I mean, I think everybody, you know we have 800 employees now I think we have, you know, 700 of them want to be investment bankers. I get calls all the time hey, you know someone's supposed to say, hey, you know this, hey, I bet you that guy would be really interesting in this. You know, in this role, or we should look at this company, you know, I think, and some of those have come to fruition and look, you know, when you do that many deals in that time frame which seems like a lot more than it is, but you know, we did four deals in COVID which was crazy, but we all. But you know, I think a big part of that is, yeah, I think a big part of that is like we look at hundreds of deals. I mean we still we can turn. You know we're not going to get into early diligence, like there's some things I can look at with our team and our team is in the higher, you know, the more involved, the more involved we get with a company. You know we might say you know, man, these guys don't even know how to order material, like they're unorganized. You know, I know they want to put like, this is going to be a lot to fix. You know, maybe we can work together and there's been times where we've worked with companies for years three, three, four years talking to them about a deal why we work parallel as a vendor or them as a sub, and then they become an acquisition and I think we both got better together. You know, I think that some of that stuff is, but there's that's also a luxury in our strategy, but that makes our strategy sound. You know, we don't have, we don't have. You know you look at these deals and, hey, if half of them went well with our organic growth which is in the, you know just, you know, high teens to 20s and archaegers in the mid 20s, you know it's, it's, it's a great story. I think that was like as you should be. Chris: So let's talk a little bit. You know more about you and your evolution as a leader. You talked about it a minute ago, just referencing how you're probably a little bit harder, maybe from the lessons you saw from your dad, and you've evolved. Let's dig in a little bit there. I mean, how would you describe your leadership style and how do you think that's changed and evolved? You know, over the year since you started, you know this company and and grown into where it is today. Mike: You know, I think I know what. I know what I'm not, and I know that I have to surround myself with people, that that you know you backfill by weakness, I think. But at the same time, you know our CFO has been my partner for 15 years. You know we've had, we have, people in our team that we've worked with for all of that and even before and even going back 20 years in some cases. You know, I think leadership, I think leadership to me has evolved as I've really understood what I'm truly. You know what I'm really good at, and having enough and sort of having, I think, being intentional and having some humility and being able to say, hey, I'm not. You know, I believe in the one minute manager. I don't need a ton of detail, I just need to know what the issue is, and I've gotten better at really understanding why that detail is important. But, you know, as a leader, I think I think gaining perspective and, you know, and listening, I think YPO has helped me in a lot of ways. You know, being around, I think peer development is something that I never, you know that was not. That's not something. When you grow up in an Italian family in upstate New York. You know, therapy isn't something I don't know. That's something I don't know if I knew the meaning of that word until I was married, but those aren't things you don't. You don't share family business, you don't share problems, you fix problems, and I think that I think in some ways, that's good. Like you know, you, I know I want to run into I think I wanted to run into every birding building until about five years ago, and I've started to realize that there's people on my team that are better at things, that I am and can execute on that. So you know, I think it's a combination of a lot of things, but I do enjoy leading, I do love my team and I, like I love seeing them be successful. Chris: That's good. Now I think it like I said, I think it starts with drive right. You have to have the drive and the want to and a little bit of that risk profile to take the risk and then I think over time you learn maybe humility and empathy and you can let others do some things, backfill where you're not as strong or you want to provide the opportunity. Mike: But yeah, don't get me wrong, the New York Italian does come out. Chris: It's a, it's a, it's real, so Well let's, we'll test that a little bit then on, say, because I like to ask people you know I'm a big believer in I think we learned from failure right and so you know, is there a situation or decision or circumstance you can think of? You know there was a failure right when you got it wrong but you were able to recover, or what you learned from that moving forward that made you better, stronger, you know, leader person, whatever that might be. Mike: I think I, you know, I probably learned from the. You know we always say when we're hiring somebody from a competitor, you know, try to be a good leaver. I think the way I left my family business was probably not. You know it was. It's never perfect. If I could go back, I'd probably. I would probably do that differently. You know there's been technologies that I have died on a hill for and you take a step back and you go. God, why did I think that would work? You know, and I think now I'm having conversations that people had with me 15 years ago where they're going, hey, what do we should buy this company? I'm like, yeah, you know, I'm like that's not the right company for us. And I think there's times where I know I need to explain myself better. But yeah, I think there's been some. We've had. I've had some bad partners that we had to buy out and that I separated with. And you know, when you're going through that, you realize like, hey, this is this guy you know you want to. It's all there fall in your point, in the finger and then, as you get past it, you go you know, I didn't. I perspective in time or time changes perspective, right? So, yeah, I think there's certainly no shortage of things that I failed at. Chris: Gotcha. Well, the other thing I kind of like to ask people as we start to wrap things up is if you think about one or two things you would impart to an aspiring entrepreneur that if you're going to, if you're going to go chase that dream, you know here, here are a thing or two that I think you should keep in mind. Or you know, maybe it's a do this and don't do that type of thing. What would be that from you to kind of that generation, next generation of entrepreneurs, man? Mike: I love move fast and break stuff. Like and you know what, like when I did at first, I felt like we're breaking more. I feel like we've got a point where we move, really we move. It seems like we're moving at the speed of light. But, you know, something like this deal we just closed, which is, you know, sort of a dream deal for us. It's a company that is a founding, founding manufacturer business. It's applied, they're one of the largest producers of liners in our space and have go back to Eric Wood, who's really a, you know, a founding father of our business, who started a company called in situ forum. And you know, we've been working on this deal for two and a half years. I mean, this isn't like 90 days. We got the book and we hired a big New York law firm and our banker, you know, handled all the conversation and we walked in the door. You know, and and here are the changes we're going to make Like we have a foundational, innovative, pioneering you know industry giant that we want to, that we want to take to what we want to take into into its next evolution. And, you know, I think about moving fast. I think move fast breaks, but maybe we're not moving as fast as you think, but at the same time, you know, I do think that's a big you know. Don't be afraid to risk. Focus on what you're good at, because in the minute don't get distracted from that. And and don't be afraid to partner with. You know you're going to have some bad partners, but you'll. You'll if you can find the right ones. That means all the difference. Chris: That's really good. You know the point to that. Similar with employees. Right, you're going to make some bad decisions, whether it's a partner or personnel. But once you realize that move fast, right to cut, because a bad employee can be kind of road culture or a bad partner obviously can run a business down. But once you know that definitely want to move fast. Mike: Yeah, I mean, if it seems like it's, if it seems like you know, bring a raincoat. If it's raining every day, you know we're sitting here having these calls, like this business every month is having the same challenges. Okay, you know, you know, and we've gotten the point of my partners and the key leadership on our team where we look each other in the eye and we go all right, it's, yeah, we need to make a change, and then you know that that leads to some quick and real thoughtful action. So, yeah, I totally agree. Chris: Well, let's appreciate all that. I mean, I think, your success at more taxing your teams I know it takes more than just you in seven acquisitions since 2015 and the growth up to 800 employees is is anything. It's very impressive. So congrats on all that and the new acquisition. I want to ask a few personal questions Just before as we wrap up. What was your first? Mike: job. That was actually my icebreaker at my integration meeting today. My first job was was that Vellano brothers? Chris: Okay, doing what? Mike: I was I think it was counting T bolts because I wasn't old enough to drive a forklift or picking up paper. I remember my father told me hey, I want you to go pick up paper on the. I'll give you a dollar for every piece of paper you pick up on the warehouse floor. And I went out and I had like a grocery bag. I'm like gotta be $1,000. I think you gave me here's five bucks. Go buy a soda. That's right. That was my first job. Chris: Okay, I know you're from New York. You've been in Texas a while, so I ask all my guests do you prefer Tex max or barbecue? Mike: I prefer Tex max. Okay, I like a margarita. I like some good, proper cheats, texas cheese enchiladas and a good margarita. Chris: That's right. So last question is if you could take a 30 day sabbatical, where would you go? What would you do? Italy, no hesitation there. Mike: Anywhere in Italy would be okay. Chris: Very good, very good. Well, that's a popular answer, by the way, but I guess you have family ties that would make it your answer to you. Mike: So some family ties, and I like one that makes both of us. Chris: So, mike, thanks again for taking the time to come on the podcast. Really enjoyed getting to know you and hear your story and wish you nothing but the best of success in 2024. Mike: Awesome. Thank you for your time. I appreciate it. Chris: All right, we're going to end the recording there. Special Guest: Mike Vellano.

Giant Robots Smashing Into Other Giant Robots
thoughtbot's Incubator Program Mini Session 3: Episode 08: Goodz with Mike Rosenthal and Chris Cerrito

Giant Robots Smashing Into Other Giant Robots

Play Episode Listen Later Jan 23, 2024 28:35


If you missed the other episodes with thoughtbot Incubator Program partcipants and founders Mike Rosenthal and Chris Cerrito of Goodz, you can listen to the first episode (https://podcast.thoughtbot.com/s3e2incubatorgoodz) and the second episode (https://podcast.thoughtbot.com/s3e4incubatorgoodz), and the third episode (https://podcast.thoughtbot.com/s3e6incubatorgoodz) to catch up! Lindsey Christensen and Jordyn Bonds catch up with the co-founders of Goodz, Chris Cerrito and Mike Rosenthal, where they share insights from their journey during the Incubator program, including the usefulness of the application process in aligning their vision and the challenges and benefits of user interviews and the importance of not overreacting to single user feedback and finding a balance in responding to diverse opinions. They reveal the varied reactions of users to Goodz's product, highlighting the different market segments interested in it. As the Incubator program nears its end for Goodz, Chris and Mike reflect on their achievements and future plans. They've made significant progress, such as setting up an e-commerce site and conducting successful user interviews. The co-founders discuss their excitement about the potential of their product and the validation they received from users. Mike mentions the importance of focusing on B2B sales and the possibility of upcoming events like South by Southwest and Record Store Day. Transcript: LINDSEY: Thanks for being here. My name's Lindsey. I head up marketing at thoughtbot. If you haven't joined one of these before, we are checking in with two of the founders who are going through the thoughtbot Startup Incubator to learn how it's going, what's new, what challenges they're hitting, and what they're learning along the way. If you're not familiar with thoughtbot, we're a product design and development consultancy, and we hope your team and your product become a success. And one way we do that is through our startup incubator. So, today, we are joined by our co-founders, Mike Rosenthal and Chris Cerrito, Co-Founders of the startup Goodz. And we also have another special guest today, Danny Kim, from the thoughtbot side, Senior Product Manager at thoughtbot. So, I think, to start off, we'll head over to the new face, the new voice that we've got with us today. Danny, tell us a little bit about your role at thoughtbot and, specifically, the incubator. DANNY: Yeah, sure. First of all, thanks for having me on, and thanks for letting me join in on all the fun. I'm one of the product managers at thoughtbot. I typically work for the Lift-Off team. We usually work with companies that are looking to, like, go into market with their first version MVP. They might have a product that exists and that they're already kind of doing well with, and they kind of want to jump into a new segment. We'll typically work with companies like that to kind of get them kicked off the ground. But it's been really awesome being part of the incubator program. It's my first time in helping with the market validation side. Definitely also, like, learning a lot from this experience [laughs] for myself. Coming at it specifically from a PM perspective, there's, like, so much variation usually in product management across the industry, depending on, like, what stage of the product that you're working in. And so, I'm definitely feeling my fair share of impostor syndrome here. But it's been really fun to stretch my brand and, like, approach problems from, like, a completely different perspective and also using different tools. But, you know, working with Mike and Chris makes it so much easier because they really make it feel like you're part of their team, and so that definitely goes a long way. LINDSEY: It just goes to show everyone gets impostor syndrome sometimes [laughter], even senior product managers at thoughtbot [laughter]. Thanks for that intro. It's, you know, the thoughtbot team learns along the way, too, you know, especially if usually you're focused on a different stage of product development. Mike, it's been only three weeks or a very long three weeks since last we checked in with you, kind of forever in startup time. So, I think the last time, we were just getting to know you two. And you were walking us through the concept, this merging of the digital and physical world of music, and how we interact with music keepsakes or merchandise. How's my pitch? MIKE: Good. Great. You're killing it. [laughter] LINDSEY: And has anything major changed to that concept in the last three weeks? MIKE: No. I mean, I can't believe it's only been three weeks. It feels like it's been a long time since we last talked. It's been an intense three weeks, for sure. No, it's been going really well. I mean, we launched all sorts of stuff. I'm trying to think of anything that's sort of fundamentally changed in terms of the plan itself or kind of our, yeah, what we've been working on. And I think we've pretty much stayed the course to sort of get to where we are now. But it's been really intensive. I think also having sort of Thanksgiving in there, and we were kind of pushing to get something live right before the Thanksgiving break. And so, that week just felt, I mean, I was just dead by, you know, like, Thursday of Thanksgiving. I think we all were. So, it's been intense, I would say, is the short answer. And I'm happy, yeah, to get into kind of where things are at. But big picture, it's been an intense three weeks. LINDSEY: That's cool. And when we talked, you were, you know, definitely getting into research and user interviews. Have those influenced any, you know, changes along the way in the plan? MIKE: Yeah. They've been really helpful. You know, we'd never really done that before in any of the sort of past projects that we've worked on together. And so, I think just being able to, you know, read through some of those scripts and then sit through some of the interviews and just kind of hearing people's honest assessment of some things has been really interesting. I'm trying to think if it's materially affected anything. I guess, you know, at first, we were, like, we kind of had some assumptions around, okay, let's try to find, like...adult gift-givers sounds like the wrong thing, adults who give gifts as, like, a persona. The idea that, like, you know, maybe you gift your siblings gifts, and then maybe this could be a good gift idea. And I think, you know, we had a hard time kind of finding people to talk in an interesting way about that. And I think we've kind of realized it's kind of a hard persona to kind of chop up and talk about, right, Chris? I don't know [crosstalk 04:55] CHRIS: Well, it also seemed to, from my understanding of it, it seemed to, like, genuinely stress out the people who were being interviewed... MIKE: [laughs] CHRIS: Because it's kind of about a stressful topic [inaudible 05:03], you know, and, like, especially -- LINDSEY: Why? [laughs] CHRIS: Well, I think, I don't know, now I'm making assumptions. Maybe because we're close to the holiday season, and that's a topic in the back of everybody's mind. But yeah, Danny, would you disagree with that? Those folks, from what we heard, seemed like they were the most difficult to kind of extract answers from. But then, if the subject changed and we treated them as a different persona, several of those interviews proved to be quite fruitful. So, it's just really interesting. DANNY: Yeah. It really started, like, you kind of try to get some answers out of people, and there's, like, some level of people trying to please you to some extent. That's just, like, naturally, how it starts. And you just, like, keep trying to drill into the answers. And you just keep asking people like, "So, what kind of gifts do you give?" And they're just like, "Oh my goodness, like, I haven't thought about buying gifts for my sister in [laughs], like, you know, in forever. And now, like [laughs], I don't know where to go." And they get, like, pretty stressed out about it. But then we just kind of started shifting into like, "All right, cool, never mind about that. Like, do you like listening to music?" And they're like, "Yes." And then it just kind of explodes from there. And they're like, "This last concert that I went to..." and all of this stuff. And it was much more fruitful kind of leaning more towards that, actually, yeah. LINDSEY: That's fascinating. I guess that speaks to, especially at this stage and the speed and the amount of interviews you're doing, the need for being, like, really agile in those interviews, and then, like, really quickly applying what you're learning to making the next one even more valuable. MIKE: Yeah. And I think, you know, like, we launched just a little sort of website experiment or, like, an e-commerce experiment right before Thanksgiving. And I think now, you know, we're able to sort of take some of those learnings from those interviews and apply them to both sort of our ad copy itself but also just different landing pages in different language on the different kind of versions of the site and see if we can find some resonance with some of these audience groups. So, it's been interesting. LINDSEY: Are you still trying to figure out who that early adopter audience is, who that niche persona is? MIKE: I think we -- CHRIS: Yes, we are. I think we have a good idea of who it is. And I think right now we're just trying to figure out really how to reach those people. That, I think, is the biggest challenge right now for us. MIKE: Yeah. With the e-commerce experiment it was sort of a very specific niche thing that is a little bit adjacent to what I think we want to be doing longer term with Goodz. And so, it's weird. It's like, we're in a place we're like, oh, we really want to find the people that want this thing. But also, this thing isn't necessarily the thing that we think we're going to make longer term, so let's not worry too hard about finding them. You know what I mean? It's been an interesting sort of back and forth with that. CHRIS: From the interviews that we conducted, you know, we identified three key personas. Most of them have come up, but I'll just relist them. There's the sibling gift giver. There was the merch buyers; these are people who go to concerts and buy merchandise, you know, T-shirts, albums, records, things along those lines to support the artists that they love. And then the final one that was identified we gave the title of the 'Proud Playlister'. And these are people who are really into their digital media platforms, love making playlists, and love sharing those playlists with their friends. And that, I would say, the proud playlister is really the one that we have focused on in terms of the storefront that we launched, like, the product is pretty much specifically for them. But the lessons that we're learning while making this product and trying to get this into the hands of the proud playlisters will feed into kind of the merch buyers. MIKE: Yeah. And I think that, you know, it's funny, like, this week is kind of a poignant week for this, right? Because it's the week that Spotify Wrapped launched, right? So, it's like, in the course of any given year, it's probably, like, the one week of the year that lots and lots and lots of people are thinking about playlists all of a sudden, so trying a little bit to see if we can ride that wave or just kind of dovetail with that a bit, too. LINDSEY: Absolutely. And do you want to give just, like, the really quick reminder of what the product experience is like? MIKE: Oh yeah [laughs], good call. CHRIS: This is a prototype of it. It's called the Goodz Mixtape. Basically, the idea is that you purchase one of these from us. You give us a playlist URL. We program that URL onto the NFC chip that's embedded in the Good itself. And then when you scan this Good, that playlist will come up. So, it's a really great way of you make a playlist for somebody, and you want to gift it to them; this is a great way to do that. You have a special playlist, maybe between you and a friend or you and a partner. This is a good way to commemorate that playlist, turn it into a physical thing, give that digital file value and presence in the physical world. LINDSEY: Great. Okay, so you casually mentioned this launch of an e-commerce store that happened last week. MIKE: It didn't feel casual. LINDSEY: Yeah. Why [laughter]...[inaudible 09:45] real casual. Why did you launch it? How's it going? MIKE: I don't know. Why did we launch it? I mean, well, we wanted to be able to test some assumptions. I think, you know, we wanted to get the brand out there a little bit, get our website out there, kind of introduce the concept. You know, this is a very...not that we've invented this product category, but it is a pretty obscure product category, right? And so, there's a lot of sort of consumer education that I think that has to go on for people to wrap their heads around this and why they'd want this. So, I think we wanted to start that process a little bit correctly, sort of in advance of a larger launch next year, and see if we could find some early community around this. You know, if we can find those core people who just absolutely love this, and connect with it, and go wild around it, then those are the people that we're going to be able to get a ton of information from and build for that persona, right? It's like, cool, these are the people who love this. Let's build more for them and go find other people like this. So, I think, for us, it was that. And then, honestly, it was also just, you know, let's test our manufacturing and fulfillment and logistics capabilities, right? I mean, this is...as much as we are a B2B, you know, SaaS platform or that's what we envision the future of Goodz being, there is a physical component of this. And, you know, we do have that part basically done at this point. But we just, you know, what is it like to order 1,000 of these? What is it like to put these in the mail to people and, you know, actually take orders? And just some of that processing because we do envision a more wholesale future where we're doing, you know, thousands or tens of thousands of this at a time. And so, I think we just want to button up and do some dry runs before we get to those kinds of numbers. CHRIS: I think it also it's important to remember that we are talking in startup time. And while this last week seems like an eternity, it's been a week [laughs] that we've had this in place. So, we're just starting to learn these things, and we plan on continuing to do so. MIKE: Yeah. But I think we thought that getting a website up would be a good way to just start kind of testing everything more. LINDSEY: Great. Danny, what went into deciding what would be in this first version of the site and the e-commerce offering? DANNY: I mean, a lot of it was kind of mostly driven by Chris and Mike. They kind of had a vision and an idea of what they wanted to sell. Obviously, from the user interviews, we were starting to hone in a little bit more and, like, we had some assumptions going into it. I think we ultimately did kind of feel like, yeah, I think, like, the playlisters seem to be, like, the target market. But just hearing it more and hearing more excitement from them was definitely just kind of like, yeah, I think we can double down on this piece. But, ultimately, like, in terms of launching the e-commerce platform, and the storefront, and the website, like, just literally looking at the user journey and being like, how does a user get from getting onto a site, like, as soon as they land there to, like, finishing a purchase? And what points do they need? What are the key things that they need to think through and typically will run into? And a lot of it is just kind of reflecting on our own personal buyer behavior. And, also, as we were getting closer to the launch, starting to work through some of those assumptions about buyer behavior. As we got there, we obviously had some prototypes. We had some screenshots that we were already working with. Like, the design team was already starting to build out some of the site. And so, we would just kind of show it to them, show it to our users, and just be like, hey, like, how do you expect to purchase this? Like, what's the next step that you expect to take? And we'd just kind of, like, continue to iterate on that piece. And so... LINDSEY: Okay. So you were, before launching, even showing some of those mockups and starting to incorporate them in the user interviews. DANNY: Yeah, yeah. I mean, we tried to get it in there in front of them as early as possible, partially because, like, at some point in the user interviews, like, you're mostly just trying to first understand, like, who are our target customers? Who are these people? And we have an assumption of or an idea of who we think they are. But really, like, once you start talking to people, you kind of are, like, okay, like, this thing that I thought maybe it wasn't so accurate, or, like, the way that they're kind of talking about these products doesn't 100% match what I originally walked into this, you know, experiment with. And so, we, like, start to hone in on that. But after a certain point, you kind of get that idea and now you're just like, okay, you seem to be, like, the right person to talk to. And so, if I were to show you this thing, do you get it, right? Like, do you understand what's happening? Like, how to use this thing, what this product even does. And then also, like, does the checkout experience feel intuitive for you? Is it as simple as, like, I just want to buy a T-shirt? So, like, I'm just going to go by the T-shirt, pick a size, and, you know, move on with my life. Can we make it as seamless as that? LINDSEY: And so, you mentioned it's only been a week since it's been live. Have you been able to learn anything from it yet? And how are you trying to drive people to it today? MIKE: Yeah, I think we learned that sales is hard [laughs] and slow, and it takes some time. But it's good, and we're learning a lot. I mean, it's been a while since I've really dug deep in, like, the analytics and marketing kind of metrics. And so, we've got all the Google Tag Manager stuff, you know, hooked up and just, you know, connecting with just exploring, honestly, like the TikTok advertising platform, and the YouTube Pre-Rolls, and Shorts. And, like, a lot of stuff that I actually, since the last time I was heavily involved in this stuff, is just totally new and different. And so, it's been super interesting to see the funnel and sort of see where people are getting in the site, where people are dropping off. You know, we had an interesting conversation in our thoughtbot sync yesterday or the day before, where we were seeing how, you know, we're getting lots of people to the front page and, actually, a good number of people to the product page, and, actually, like, you know, not the worst number of people to the cart. But then you were seeing really high cart abandonment rates. And then, you know, when you start Googling, and you're like, oh, actually, everybody sees very high cart abandonment rates; that's just a thing. But we were seeing, like, the people were viewing their cart seven or eight times, and they were on there sort of five times as long as they were on any other page. And it's this problem that I think Danny is talking about where, you know, we need to actually get a playlist URL. This gets into the minutiae of what we're building, but basically like, we need to get them to give us a playlist URL in order to check out, right? And so, you sort of have to, like, put yourself back in the mind of someone who's scrolling on Instagram, and they see this as an ad, and they click it, and they're like, oh, that thing was cool. Sure, I will buy one of those. And then it's like, no, actually, you need to, you know, leave this, go into a different app, find a play...like, it suddenly just puts a lot of the mental strain. But it's a lot. It's a cognitive load, greater than, as you said, just buying a T-shirt and telling what size you want. So, thinking through ways to really trim that down, shore up the amount of time people are spending on a cart. All that stuff has been fascinating. And then just, like, the different demographic kind of work that we're using, all the social ads platforms to kind of identify has been really interesting. It's still early. But, actually, like, Chris and I were just noticing...we were just talking right before this call. Like, we're actually starting to get, just in the last 12 hours, a bunch more, a bunch, but more people signing up to our email newsletter, probably in the last 12 hours that we have in the whole of last week. Yeah, I don't know, just even that sort of learning, it's like, oh, do people just need time with a thing, or they come back and they think about it? CHRIS: Yeah. Could these people be working on their playlists? That's a question that I have. MIKE: [chuckles] Yeah, me too. CHRIS: It's like, you know, I'm making a playlist to drop into this product. It's really interesting. And I think it gives insight to kind of, you know, how personal this product could be, that this is something that takes effort on the part of the consumer because they're making something to give or to keep for themselves, which is, I think, really interesting but definitely hard, too. DANNY: Yeah. And I also want to also clarify, like, Chris just kind of said it, like, especially for viewers and listeners, like, that's something that we've been hearing a lot from user interviews, too, right? Like, the language that they're using is, like, this is a thing that I care about. Like it's a representation of who I am. It's a representation of, like, the relationship that I have with this person that I'm going to be giving, you know, this gift to or this playlist to, specifically, like, people who feel, like, really passionate about these things. And, I mean, like, I did, too. Like, when I was first trying to, like, date, my wife, like, I spent, like, hours, hours trying to pick the coolest songs that I thought, you know, were like, oh, like, she's going to think I'm so cool because, like, I listen to these, like, super low-key indie rock bands, and, like, you know, so many more hours than she probably spent listening to it. But that's [laughs] kind of, like, honestly, what we heard a lot in a lot of these interviews, so... LINDSEY: Yeah, same. No, totally resonates. And I also went to the site this week, and I was like, oh damn, this is cool. Like, and immediately it was like, oh, you know, I've got these three, you know, music friends that we go to shows together. I'm like, oh, this would be so cool to get them, you know, playlists of, like, music we've seen together. So, you might see me in the cart. I won't abandon it. MIKE: Please. I would love that. CHRIS: Don't think about it too long if you could -- [laughter]. LINDSEY: I won't. I won't. CHRIS: I mean, I would say I'm really excited about having the site not only as a vehicle for selling some of these things but also as a vehicle for just honing our message. It's like another tool that we have in our arsenal. During the user interviews themselves, we were talking in abstract terms, and now we have something concrete that we can bounce off people, which is, I think, going to be a huge boon to our toolset as we continue to refine and define this product. MIKE: Yeah, that's a good point. LINDSEY: Yeah. You mentioned that they're signing up for, like, email updates. Do you have something you're sending out? Or are you kind of just creating a list? Totally fine, just building a list. MIKE: [laughs] No. CHRIS: It's a picture of Mike and I giving a big thumbs up. That's, yeah. [laughter] MIKE: No. But maybe...that was the thing; I was like, oh great, they're signing up. And I was like, gosh, they're signing up. Okay [laughter], now we got to write something. But we will. LINDSEY: Tips to making your playlist [crosstalk 19:11] playing your playlist -- MIKE: Yeah [crosstalk 19:13]. CHRIS: Right. And then also...tips to making your playlists. Also, we're advancing on the collectible side of things, too. We are, hopefully, going to have two pilot programs in place, one with a major label and one with a major artist. And we're really excited about that. LINDSEY: Okay. That's cool. I assume you can't tell us very much. What can you tell us? MIKE: Yeah. We won't mention names [chuckles] in case it just goes away, as these things sometimes do. But yeah, there's a great band who's super excited about these, been around for a long time, some good name recognition, and a very loyal fan base. They want to do sort of a collection of these. I think maybe we showed the little...I can't remember if we showed the little crates that we make or not, but basically, [inaudible 19:52] LINDSEY: The last time, yeah. MIKE: So, they want to sell online a package that's, you know, five or six Goodz in a crate, which I think will be cool and a great sort of sales experiment. And then there's a couple of artists that we're going to do an experiment with that's through their label that's more about tour...basically, giving things away on tour. So, they're going to do some giveaway fan club street team-style experiments with some of these on the road. So, first, it's ideal, provided both those things happen, because we definitely want to be exploring on the road and online stuff. And so, this kind of lets us do both at once and get some real learnings as to kind of how people...because we still don't know. We haven't really put these in people's hands yet. And it's just, like, are people scanning these a lot? Are they not? Is this sort of an object that's sitting on their shelf? Is it...yeah, it's just, like, there's so much we're going to learn once we get these into people's hands. LINDSEY: Do you have the infrastructure to sort of see how many times the cards are scanned? CHRIS: Mm-hmm. Yep, we do. MIKE: Yeah. So, we can see how many times each one is scanned, where they're scanned, that sort of thing. CHRIS: Kind of our next step, and something we were just talking about today with the thoughtbot team, is building out kind of what the backend will be for this, both for users and also for labels and artists. That it will allow them to go in and post updates to the Goodz, to allow them to use these for promotion as people, you know, scan into them to give them links to other sites related to the artists that they might be interested in before they move on to the actual musical playlist. So, that's kind of the next step for us. And knowing how users use these collectibles, both the kind of consumer Good and the artist collectibles that we were just talking about, will help inform how we build that platform. LINDSEY: Very cool. And right now, the online store itself that's built in Shopify? MIKE: Yeah. The homepage is Webflow that Kevin from the thoughtbot team really spearheaded in building for us. And then, yeah, the e-commerce is Shopify. LINDSEY: Y'all have been busy. MIKE: [laughs] LINDSEY: Is there anything else maybe that I haven't asked about yet that we should touch on in terms of updates or things going on with the product? MIKE: I don't know. I don't think so. I think, like Chris said, I mean, we're just...like, now that the site has kind of stood up and we're really switched over to kind of marketing and advertising on that, definitely digging into the backend of this kind of SaaS platform that's going to probably be a big focus for the rest of the, you know, the program, to be honest. Yeah, just some other things we can do on the next front that could eventually build into the backend that I think can be interesting. No, I guess [laughs] the short answer is no, nothing, like, substantial. Those are the big [crosstalk 22:26] LINDSEY: Yeah. Well, that was my next question, too, which is kind of like, what's next, or what's the next chunk of work? So, it's obviously lots more optimization and learning on the e-commerce platform, and then this other mega area, which is, you know, what does this look like as a SaaS solution? What's the vision? But also, where do we start? Which I'm sure, Danny, is a lot of work that you specialize in as far as, like, scoping how to approach these kinds of projects. DANNY: Yeah. And it's interesting because, I mean, we were just talking about this today. Like, part of it is, like, we can, like, really dig into, like, the e-commerce site and, like, really nailing it down to get it to the place where it's like, we're driving tons more traffic and also getting as low of a, like, cart abandonment rate as possible, right? But also, considering the fact that this is in the future, like, large-scale vision. And there's, like, also, like, we're starting to, I think, now iron out a lot of those, like, milestones where we're kind of like, okay, like, we got, like, a short-term vision, which is, like, the e-commerce site. We got a mid-term vision and a potential long-term vision. How do we validate this long-term vision while also still like, keeping this short-term vision moving forward? And, like, this mid-term vision is also going to, like, help potentially, either, like, steer us towards that long-term or maybe even, like, pivot us, like, into a completely different direction. So, like, where do you put your card, right? Like, how much energy and time do we put into, like, each of these areas? And that's kind of, like, the interesting part of this is starting to talk through that, starting to kind of prioritize, like, how we can maximize on our effort, like, our development and design effort so that things just kind of line up more naturally and organically for our future visioning, so... MIKE: Yeah. A lot of different things to juggle. I saw there was a question. Somebody asked what the URL is, but I don't seem to be able to [crosstalk 24:10]. LINDSEY: The same question as me. We got to drop the link for this thing. MIKE: Yeah, getthegoodz.com. CHRIS: That's G-O-O-D-Z. LINDSEY: Get in there, folks MIKE: Yeah, get [crosstalk 24:23]. LINDSEY: And let us know how it goes. MIKE: Yeah, please [laughs]. Any bugs? Let us know. Yeah. I think that those...yeah, I mean, it's a good point, Danny, in terms of juggling kind of the near-term and longer-term stuff. You know, it's a good kind of reminder our big focus, you know, in the new year is going to be fundraising, right? We're already talking to some investors and things like that. So, it's like, okay, yes, as you said, we could tweak the cart. We could tweak the e-commerce. Or, like, can we paint the big picture of what the longer-term version of this company is going to be in a way that makes it compelling for investment to come in so that there can be a long-term version of this company? And then we can build those things. So yeah, it's definitely a balance between the two. LINDSEY: Oh, also, just casual fundraising as well. [crosstalk 25:06] MIKE: Yeah, yeah. LINDSEY: [laughs] MIKE: But it's hard. It's like, you wake up in the morning. It's like, do I want to, like, write cold emails to investors? Or do I want to, like, look at Google Analytics and, like, tweak ad copy? That's actually more fun. So, yes. LINDSEY: Yeah, life of the founder, for sure. All right. So, that's getthegoodz (Goodz with a z) .com. Check it out. We'll tune in and see what happens with the e-commerce site, what happens with the SaaS planning the next time that we check in. But Chris, Mike, Danny, thank you so much for joining today and sharing what's been going on over the last few weeks: the good, the bad, the challenge, the cart abandonment. And, you know, best of luck to you over the next few weeks, and we'll be sure to check in and see how it's going. AD: Did you know thoughtbot has a referral program? If you introduce us to someone looking for a design or development partner, we will compensate you if they decide to work with us. More info on our website at: tbot.io/referral. Or you can email us at referrals@thoughtbot.com with any questions. Transcript:  LINDSEY: Thank you to our viewers and listeners. We are catching up once again with one of the startups going through the thoughtbot Incubator. My name is Lindsey Christensen. I'm joined today by Jordyn Bonds, who heads up the thoughtbot incubator, as well as our Co-Founders of Goodz, Chris Cerrito and Mike Rosenthal. Welcome, everybody. MIKE: Thanks, Lindsey. LINDSEY: Before we get started, before we put Chris and Mike back in the hot seat, at the top here, Jordyn, we have a special announcement for our viewers and listeners. JORDYN: Application window is open for session 1 of 2024, folks. You can go to thoughtbot.com/incubator and apply. And Chris and Mike can tell you how easy or hard applying was. MIKE: It was easy. It was totally easy. It's a very straightforward process. CHRIS: Yeah, it was way more straightforward than a lot of applications that we've dealt with in the past, for sure. JORDYN: Ha-ha. And if you've got a business idea that involves software but you haven't gotten anything out there yet, come talk to us. We will help you make sure that it's a good idea and that there are people who might buy it, and maybe get you even a little further than that. MIKE: We actually have a friend who's considering applying. I'll tell him applications are open. He's worried his idea is not big enough to actually be a business idea, so we'll see. CHRIS: Even the process of doing the application was really helpful for us because it helped us get aligned on exactly what we were doing, yeah. JORDYN: I love that. And I found that to be true when I was a founder applying to some of these things, in particular, applying for an SBIR grant was one of the most challenging things that we did, but it was so productive. I was so annoyed by it at the time, and then I cribbed from that thing. It actually sort of forced us to make a business plan [laughs], and then, basically, we ran it, and it was great [laughs]. CHRIS: Yeah. I think that was, for us, that was our point where we were like, "Is this idea fleshed out enough to move forward?" And we were like, "Yes, it is. Let's go. Let's do this." JORDYN: So, use the application as a forcing function, everybody. It will help you clarify your thinking. LINDSEY: Yeah. Jordyn, what would you say to Mike's friend who's questioning if their idea is big enough? How do you respond to that sentiment? JORDYN: That is a fascinating sentiment because I feel like so much more often, I am trying to help founders with the opposite problem where they think this thing is so big that they are not thinking about what step 1 is going to look like. They're just, like, in 10 years, we're going to be the next Amazon, and I'm like, "Maybe [laughter]. Let me help you figure out how to get to that giant vision." So, I don't come across the "Is this big enough to be a business?" question as often. And, I don't know, what would I say? I guess I need the details. LINDSEY: It could be a perfect fit MIKE: It could be. JORDYN: It could be a perfect fit. LINDSEY: In a way, that's what you're answering, right? MIKE: Right. LINDSEY: In some of this work. MIKE: That is true. So, yeah, you guys would certainly...just thinking through the process we've gone through the last two months, it would definitely help them flesh that out. LINDSEY: Which is a great segue. MIKE: Great segue. LINDSEY: Chris and Mike, we're actually coming up to the end of your incubator time. CHRIS: It's so sad. LINDSEY: Can you believe it? MIKE: It's gone by really fast. I mean, eight weeks is not a long time, but it has gone by very, very fast. CHRIS: It felt like a very long time in the middle of it. MIKE: [laughs] CHRIS: But now that it's over, it feels like a blink that it's coming to a close. MIKE: I don't know. It's funny. I think we had some note in our retro today that was like, maybe the very end of the year is not the best time to do an accelerator just because you have, like, the holidays kind of jumping in here in the end. So, that might have helped make it feel like a... I feel like the end of the year always feels like a rush anyway. So, I think just life gets a little bit busier this time of year, too, but yeah. CHRIS: Yeah, my gingerbread man decorating game is, like, really down this season because we've been so busy. Tragic. LINDSEY: Chris, can you remind our viewers and listeners who might not be familiar what was the idea that you and Mike have been exploring with the incubator or, like, what did you come in with? CHRIS: So, with Goodz, what we're trying to do is make little, physical collectibles objects that connect back to the digital content that a user loves. The idea being that today, we are awash in these digital files, links, so many things on our desktops, on our phones, on our devices, and it's really hard to tell which part of those are really, really important to us. So, by giving them a presence in the physical world, that denotes that's something that's really important, worth keeping, worth sharing, and showing off to your friends and family. And to start this off, mostly because Mike and I are both kind of music nerds, we're starting off with a music focus, but at some point, we're hoping to move into other realms, too. LINDSEY: And a lot of the incubator, as repeat listeners will know, is focused on really kind of evolving user interviews all the way through and narrowing in on, you know, a core audience, a core market. Mike, how has that evolution been? I think the last time we chatted was around three weeks ago. What has the latest iteration of user interviews looked like in terms of the people you're talking to and even what you're asking them? MIKE: It's been a really fascinating process. I mean, I'm trying to think of where we were exactly the last time we talked to you, but I think we'd probably just launched the e-commerce site that we had been experimenting with putting up. LINDSEY: Yeah, exactly. MIKE: And so, and we really then started cranking on user interviews kind of once that was live. And so, moving away from the conceptual and more into like, "Okay, share your screen. Here's the link. Like, tell me what you think is going on here," and really sort of getting users who had never, you know, never heard our pitch, never been involved with us to sort of try to wrap their heads around what we are and what we're doing just based on that website and trying to sort of make iterative changes based on that. You know, for me, because I had not done user interviews very much in the past, like, it's very tempting, like, you get sort of 1 note from 1 person in 1 interview, and you're like, oh, we need to change this word. That word didn't make any sense to them, or this thing needs to be blue instead of pink. I think, for me, it was like, all right, how do we kind of synthesize this data in a responsible way? And it emerged naturally, which, I mean, Jordyn and all thoughtbot folks said that it would, but you sort of started hearing the same things again and again. And we never really got to a place where, like, you heard the exact same things from everyone. But there were enough buckets, I feel like, where we're like, okay, like, this part really isn't making that much sense to people, or, like, we do really need to, you know, structure this differently to convey. So, it was a bunch of that kind of work over the last three weeks or so and sort of just getting a sense of like, are we conveying our message? It's hard. I mean, it's a new, like, we're not the only people making physical products with NFC chips in them, but it is not the most common, like, product. Like, it is kind of a new category out there. And so, really trying to understand just right off the bat, do people get it? And you get wildly different answers [laughs] as to whether they get it or they don't, which has been fascinating, too. JORDYN: Yeah. [crosstalk 7:12] LINDSEY: Chris or Jordyn, anything to add there? JORDYN: Yeah. You get the best, like, bootcamp in the don't overreact to a single user interview experience in some ways because we [laughs]...it would literally be like, interview in the morning someone says this thing. Interview in the afternoon, someone says the exact opposite thing [laughter]. And you're like, okay [laughs], like, which one of these things are we going to respond to, if either of them? CHRIS: Yeah. It's hard. As somebody with, like, a strong desire to please, it's hard to reign yourself in and want to change things immediately, but it definitely makes sense to do so in the long run. MIKE: But yeah, but, I mean, like I said, I do feel like it kind of came down to buckets. It's like, okay, you're that. I can, like, categorize you with all those other people and you with all those other people. And yeah, I hear you. I'm like, yeah, it's tempting to want to please them all. But I think with this one, we're fighting hard to be like...or we sort of have a philosophy that this product is emphatically not for everyone because, at the end of the day, you get a lot of people who are like, "Wait, you're just putting a link to a streaming playlist on a physical object? Why don't I just text someone the link?" And sometimes that breaks down by age group, like, 18-year-olds being like, "What are you talking about, old man? LINDSEY: [laughs] MIKE: Like, why the hell would I do that? It makes no sense." But it sort of skews all over the age ranges. But then there'll be other people who are 18 or 20 years old who are like, "Wow, I never had cassettes when I was growing up," or "I never got to make, you know, mixtapes or CD-Rs for people." And like, you know, so it's, yeah, it's about finding the people who are the early adopters. As Jordyn has said a lot, it's like, we need to find those early adopters and, like, make them love us, and then other people will come later. CHRIS: I mean, some of the most gratifying moments, I think, are there's been some interviews where people have been so excited that after the interview, they've gone and purchased our products, which is just, like, the coolest feeling ever. LINDSEY: Wow. MIKE: Yeah, it's pretty cool. LINDSEY: Are you open to sharing a little bit more about what those buckets or what those segments look like? CHRIS: I mean, I think there's folks who outright just get it almost immediately, and I think those people tend to be hardcore music collectors, hardcore music fans, Jordyn and Mike, please feel free to jump in if you disagree with any of this. They just get it right off the bat. Then I think there's, in my experience, there's another bucket of people who are a little more hesitant, and maybe they wouldn't buy it, but they seemed really excited about the idea of getting one as a gift, which is really interesting. They're like, "I don't know if I'd buy this, but I'd really like to have one." And then there is another segment, like, which Mike just mentioned, of folks who just don't see the value in this whatsoever, which is totally fair. MIKE: Yeah, totally. I think it's also...I see it almost as, like, a matrix. There's, like, desirability, and, like, technical understanding because people were like, "I technically understand what this is, and I do not want it in my life." Or like, "I get what this is and, oh my God, I have to have that," or like, "I don't really understand what you're talking about, but, man, I love physical stuff. Like, sure I want..." you know, it's like, it goes across those two planes, I think. JORDYN: I will say that it, I think you alluded to this before, Mike, but, like, we're going to run a whole analysis of...because we did a ton of interviews, and we haven't actually done that, like, sort of data-driven thing of like, are there trends in the demographics somewhere that we're not getting? Because the pattern has not been there. Like, someone will talk to an 18-year-old, you know, at 1:00 p.m. who is just, like, "Why on earth would I ever want this?" And then I, like, you know, will talk to a 21-year-old who is like, "I love this." And it's like, why? Like, this is the answer. The thing we're trying to get out now is, like, what is the difference between those two people? It's not a demographic thing that we can see from the outside, so what is it instead? But with consumer stuff like this, often, you don't necessarily...you don't need that in such great detail when you're starting. You just kind of, like, throw it out there and see who grabs it, and then you start to build sort of cohorts around that. And that is kind of what these interviews have shown us is that there are people who will grab it, and that was part of what we were trying to validate. Are there people who Mike and Chris do not know personally who will, like, get this and be psyched about it immediately? And that is, you know, check unequivocally true. Like Chris said, there are people that we were, you know, that we had recruited on this user interviews platform [chuckles] who then just turned around and bought the product because they were so psyched about it. One of the guys I interviewed was like, "Can I invest in your company right now?" Like, during the interview, and I was like, "Maybe?" [laughs] CHRIS: There was, like, another person who wanted to work for us immediately... JORDYN: Yes, great. CHRIS: Which was really interesting and kind of awesome. JORDYN: Yeah, they're like, "Are you hiring?" You're just like, okay. So, it's validating that there are people all over that spectrum. Like, where those trends lie, though, which is, I think, what you were asking, Lindsey, not as straightforward and in a fascinating way. So, we still have a little more, like, number crunching to do on that, and we may have an answer for you later. LINDSEY: That's exciting. Exactly. I'm curious: what are the connecting dots between the folks who are really into it, and how might that impact how you approach the business? MIKE: Yeah, it's hard. It's definitely going to be a niche to start. And so, we got to figure out kind of got to crack the code on how we find those people. LINDSEY: And, Mike, I think you had also mentioned last time that, you know, you or both of you have a network kind of in the music industry, and you've been floating the idea past some people there. Have you been having more of those conversations over the last few weeks, too? MIKE: We have, yeah. Well, so yeah, we've had a couple more just kind of straight-up pitch calls versus like, "Hey, there's this cool thing we're doing," and having those people be like, "Cool. Let's do a pilot." And so, they're ordering, you know, 500 or 1,000 units at a time, which is rad. LINDSEY: Whoa. MIKE: For the first...yeah. LINDSEY: Okay, very cool. MIKE: Yeah. The first two or three of those should happen in January or maybe early February, but yeah, those are done and in production and arriving soon. So, that's really exciting with some cool bands. We won't say the names in case it doesn't [laughs] work out, but it does look like it's going to work out. LINDSEY: And so, it's specific bands that are creating merch for their fans. MIKE: Yeah, yeah. So, we're working with one artist manager on a band that he manages, and then we're working with a record label. And they're going to try with a couple of smaller artists. And so, yeah, it's actually really good for us. One is going to be straight-up sales, most likely, and it's, like, selling these things. And the other ones will be given away as kind of promo items on tour artists, which is also a really interesting use case for us, too, that we're excited about and using them as a way to sort of get email addresses and, like, fans engaged and stuff, so... And then yeah, then I had another conversation, and they want to talk about doing some pilots. So far, like, that side of things is going great. We're sort of 3 for 4 in terms of initial calls leading to pilots right off the bat, which is kind of unheard of from [laughs] my experience. LINDSEY: Yeah, I'd say so. No, a lot of very good signals. MIKE: Really good signals. But then we were able to turn some of those into user interview conversations, actually, as well over the course of the last couple of weeks, which has been really helpful, like, talking to manager and label-type people about what they might want out of a software product that is associated with this because we're not just thinking about making physical products but sort of coupling that with an online toolset. And that part, we haven't gotten as far along as we did with the direct-to-consumer e-commerce, but it's been fascinating. LINDSEY: So, what has been happening with the online shop? As you noted the last time we talked, it was just a baby less than a week-old Shopify site getting, you know, some first hits of people going around maybe putting things in their basket. I'm sure a lot has happened over the last few weeks. What kind of work, what kind of insights have you seen around the site? CHRIS: We've been, I mean, we've been selling stuff at a slow but steady pace. It's been great because it's enough to, you know, because our product really straddles the line between physical and digital; there's a lot of physical aspects to this that we need to figure out and kind of the level of orders that we've been getting have been really...it's, like, the perfect number to think about fulfillment issues, things like what kind of package does this go in? How do we mail this out? Things along those lines, just very basic, practical questions that needed to be answered. But yeah, it's been great. We actually, I mean, we hit our goal for the amount of these that we wanted to get in people's hands before Christmas, which is pretty awesome. And we continue now with the lessons learned. I think our plan is to try and make a push for Valentine's Day because these seem like they would be a great Valentine's Day present: make a playlist; share it with your loved one; share it with a friend; share it with somebody you don't like at all. Who knows? LINDSEY: [laughs] CHRIS: But yeah, that's kind of our next sales push, we think. LINDSEY: The hate playlist. CHRIS: [inaudible 15:40] hate playlist. MIKE: Yeah, perfect. Real passive-aggressive. CHRIS: Just Blue Monday, like, by New Order, like, 14 times. LINDSEY: [laughs] Yeah, every song is just like a sub-tweet... MIKE: [laughs] LINDSEY: About something they've done and [inaudible 15:53] Have you updated the site? Like, how do you decide what gets updated on the site? [laughter] Everyone laughed. MIKE: It was a little haphazard, I would say, there for a minute. But -- CHRIS: We got the site up very, very quickly. And from my perspective, I've been dealing a lot with the physical side of things, just getting great product photos up there, which is, like, something that thoughtbot has actually been super helpful with. You know, everybody on the team is starting to submit photos of their Goodz in the real world and using their Goodz, which is great. And we continued to update the site with that but also making sure our text made sense, refining copy in response to things that people said during user interviews. The checkout process, the process of adding the URL that we point the Good to that, we did a bunch of experimentation there based on what people were saying during user interviews. So, it has been a little haphazard, but we have made a bunch of changes. LINDSEY: Jordyn, has there been any experiment, like, structured experimentation around the site or how you're getting people to the site? JORDYN: Mike actually did a little bit of ad funnel work that I don't think we've, like, even remotely scratched the surface of. So, I wish I could say that was conclusive, but I think we've found a little bit more...here are plenty of sales that are from people that nobody here knows. MIKE: True. JORDYN: So, people are finding out about this somehow [laughs]. But I think it's a little bit, like, word-of-mouth sort of chain of events is our sense so far. I wanted to say, though, about the site, we did get what Chris was saying about, like, this experiment was, in part, about fulfillment and figuring out how fulfillment would work and packaging, and not just messaging and not just closing the sale with consumers, but also, just, like, how do you fulfill these? But one of the really fun things we've managed to do in the last, since we talked last time, which I can't even believe...I feel like this wasn't even a gleam in our eyes for this project, but we managed to get out, like, stood up and out the door, and working in production in the last few weeks is a way for folks to actually assign the URL to their mixtape themselves. Previously, the plan had just been for Chris and Mike to do that, which is fine but a little bit unscalable, right? CHRIS: That was a huge dream or, like, that was high on our wish list. And we didn't think we'd get to it. And it's been pretty amazing that we have, yeah. JORDYN: Yeah, so that was one thing that is an update to the site. So, then we had to do a little bit of, like, micro iterating, on, like, the messaging around that. Like, how do you communicate to people? This is, like, a little bit of an abstract challenge, right? Like, here's this object. It's going to point to a digital thing. How do you tell the physical object which digital thing it's pointing to [laughs]? So, a lot of our recent interviewing has been to sort of get inside the mind of the consumer about how they're thinking about that and how we can best communicate that to them. So that's been a lot of the, like, recent iteration is getting that mechanism stood up and then the messaging around it. CHRIS: It's also really cool because it adds to the utility of the object itself in the sense that now our Goodz, when a user gets one, they can add a URL to their Good themselves, but they can also change that URL. So, it's much more malleable. JORDYN: Which is something that in one of our early user interviews was, like, a hot request [laughs], and we were like, "Someday, someday." And it's, you know, I should actually go back to her and be like, "Someday is today." [laughter] MIKE: Well, yeah, and just as Chris was saying, it just makes it so much easier to ship these out without having to manually load them, and you could sell them, and yeah, retail outlets, like, it just opens up a lot of opportunities for us for them. LINDSEY: And Mike mentioned that some of the, like, kind of future looking aspirations for the solution are, you know, how might you figure out the B2B, like, SaaS aspect of it? Jordyn, is that something that's been explored at all at this point, or is it early? JORDYN: That experiment I just described is actually sort of the link between the two projects. It sort of proves the concept and proves the value in some ways, and it has given us a little bit more visibility into sort of how we're going to execute some of this technical stuff. Like, how easy, how difficult is it going to be? These little experiments all build your confidence around your ability to do those things and what it's going to look like. And so, this experiment absolutely feeds into that question. But I would say it was really this week where we got to have a really fun brainstorming sort of blue sky conversation about that that I don't think would have been nearly as both creative and blue sky or rooted in reality as it was if we hadn't done these experiments and hadn't talked to so many...we had so much work...we could participate in a conversation like that so much more confidently and creatively because all of us had a lot more shared context. So, we really got to dream big, like, what is a SaaS platform built around these physical objects? And I don't want to, you know, I'm not going to give it away at this moment because we had a lot of, like, really cool ideas. It's one part talking to the B2B customer, which, you know, you mentioned earlier, getting what their pain points are, and what they're looking for, what they need, but then also dreaming big about now we understand the technology a little bit more and how it feels to use it. What does that unlock in our brains? The analogy I used in that conversation and that I use all the time is like, the users of Twitter invented hashtags, right? Twitter did not invent hashtags. And so, hey, everybody out there, newsflash: users invented hashtags, not Twitter or something else, if you didn't realize that Twitter was where those things kind of emerged. But there was just a user behavior that was happening in the wild, and Twitter was just very good at making that easier for them, looking at that and being like, "Oh, hey, is this a thing you all want to do? Here, we'll make that even more useful for you." And it was part of Twitter's early success that they were able to do that. And so, that was the kind of thinking we were trying to employ here is, like, now that we have these objects and we understand a little bit more how it feels to use them, you get these second order effects. What does that then make us think of? What is then possible to us that we wouldn't have been able to dream of previously because we didn't quite get it? So, that was really happening this week. LINDSEY: So, as the incubator time wraps up, what are the kind of final activities or deliverables, one, that Goodz wants and you know that they're going to get? What are the parting gifts as we send you out into the next phase? MIKE: Yeah, well, loads of stuff. I mean, we're getting all that code that [SP] Guillermo and the guys worked on to let people set their own playlist settings. And we've got that up in a GitHub repository now. And we've got a bunch of great design work that's all being handed over, like Chris was saying, product shots that a bunch of the team members were taking, synthesizing all the user interviews. We're actually sort of making some kind of final reports on those, so it's kind of more usable, actionable data for us. The whole website, you know, that didn't exist before. And that will sort of continue to grow as the entire website for Goodz moving forward. I don't know. That's a lot. What else was there, Chris? CHRIS: As a result of all that, I mean, one of the things I'm most excited about is now we have a small user base who actually has the physical products that, hopefully, we can get them to answer questions. That's huge for what's coming next. Starting the path towards the SaaS platform, too, it's really helped narrow our scope and think about, you know, how to make that successful or if it will be successful. LINDSEY: Yeah, that sounded like a big discussion this week that I know has been on your minds from the beginning. Wait, the last time, also, you said you were starting to get emails, too. Have you emailed anyone yet, or are you still holding on to them? MIKE: Oh. No, I still haven't sent a newsletter out [laughs], actually, but we have Mailchimp set up. Yeah, no, we've got a good kind of core of our, yeah, early folks on there. We'll start getting a newsletter out with some sort of regularity. We're building up the socials very slowly just focusing on Instagram mostly right now and trying to get back into that game. It's been a long time since I've had to do kind of social marketing stuff. And so, it's a lot of work, as it turns out, but we'll get all that cooking. I think this was just such a sprint, working with the thoughtbot folks and trying to get all this stuff done. Before the end of the year, now we can sort of take a breath and start engaging folks in the new year. LINDSEY: Yeah. Well, so, do you know what you want to do next or what the next phase looks like? Are you going to do fundraising? MIKE: We're certainly going to continue to have some fundraising conversations. We've had some conversations emerge over the last, you know, since we've been in thoughtbot, again, not the greatest time of year to try to be raising a round. But we're also not, like, desperately, urgently needing to do that right this second. I think, you know, part of it is the fundraising landscape, you know, doesn't look amazing. And we're still sort of building out a lot of traction, and sort of every week, there's some new, exciting thing, or we've got some new, big artists who wants to do something. So, I think, in some ways, to the extent that we can bootstrap for a little while, I think we will, yeah. So, we will focus on...I'd like to get back to focusing on, like, B2B sales. I'd like to hit the ground in January and just start talking to a bunch of music industry folks. And thinking ahead a little bit, sort of Q1 and Q2, like, what are the big tentpole events? You know, you got South by Southwest coming up in March. You got Record Store Day in April, or whenever it is. But, you know, there's, like, a bunch of those sorts of things that it's like, oh, let's not let those things suddenly be tomorrow. Like, right now, they're all still two or three/four months out. Like, let's make sure we're queued up for those things and see what happens. And Jordyn has been giving really good advice on the fundraising side where it's just like, just keep getting cool stuff like that and just do almost like little drip campaigns with funders who aren't maybe giving you the time of day or think it's too early, and just kind of keep going back to them. Like, the best excuse to go back to funders is like, "Hey, we just closed this new thing. We just launched this new thing. We just got this thing working. Hey, we're launching with this major band," Like, enough of those happen, and I think the fundraising will happen more organically. It's a strategy. CHRIS: I think we're really lucky in the fact that, you know, now, at this point, we're not talking about vapourware, you know, like, these are actual things that actually exist that, like, anybody could go onto our site right now and buy, which is awesome. And because of that, the product's going to continue to evolve, and, hopefully, our sales record will continue to evolve, too. LINDSEY: Amazing. Well, that feels like a good place to wrap up, maybe. Are you going to hang around in our incubator Slack, the thoughtbot incubator Slack for all our past founders? MIKE: Yes. Emphatically, yes. LINDSEY: Okay. We're holding you to it then [laughs]. CHRIS: I'm excited about that. We met with the other founders yesterday for the first time, and it was a really great and interesting conversation. It was cool seeing how diverse all these projects are and how folks are working on things that we had no idea about and how we're working on stuff that they have no idea about, and it was really great. It felt like a good cross-pollination. MIKE: Agreed. LINDSEY: That's awesome to hear. Jordyn, any final thoughts? JORDYN: [inaudible 26:58] out there listening and watching and want to join this community of founders [laughs], don't you want to have office hours with Chris and Mike? LINDSEY: All right, thoughtbot.com/incubator. You can apply for session 1 of the 2024 incubator program. And yeah, you two, if you have more recommendations, referrals, definitely send them our way. Chris, Mike, Jordyn, thank you so much once again for joining and catching us up on all the exciting developments for Goodz. MIKE: Thank you. LINDSEY: A lot of really cool milestones. JORDYN: I got to say, so much good stuff. And like, you know, just wrapping it all up almost diminishes the impact of any single one of those things that we just talked about, but it's, like, pretty amazing. People out there, apply to the incubator but also go buy yourself a Goodz mixtape. It's cool with playlists on it. MIKE: It's a good point. JORDYN: Give it to your BFF. Come on. LINDSEY: Getthegoodz.com. MIKE: Getthegoodz.com. Awesome. LINDSEY: All right. Thanks, Chris and Mike. AD: Did you know thoughtbot has a referral program? If you introduce us to someone looking for a design or development partner, we will compensate you if they decide to work with us. More info on our website at: tbot.io/referral. Or you can email us at referrals@thoughtbot.com with any questions. Special Guests: Chris Cerrito, Jordyn Bonds, and Mike Rosenthal.

Your Anxiety Toolkit
5 Most Common Recovery Roadblocks (with Chris Tronsdon) | Ep. 370

Your Anxiety Toolkit

Play Episode Listen Later Jan 19, 2024 42:53


If you want to know the 5 Most Common Recovery Roadblocks with Chris Tronsdon (an incredible anxiety and OCD therapist), you are in the right place. Today Chris and I will go over the 5 Most common anxiety, depression, & OCD roadblocks and give you 6 highly effective treatment strategies you can use today.  Kimberley: Welcome everybody. We have the amazing Chris Trondsen here with us today. Thank you for coming, Chris. Chris: Yes, Kim, thanks for having me. I'm super excited about being here today and just about this topic. Kimberley: Yes. So, for those of you who haven't attended one of the IOCDF Southern California conferences, we had them in Southern California. We have presented on this exact topic, and it was so well received that we wanted to make sure that we were spreading it out to all the folks that couldn't come.  You and I spoke about the five most common anxiety & OCD treatment roadblocks, and then we gave six strategic solutions. But today, we're actually broadening it because it applies to so many people. We're talking about the five most common anxiety treatment roadblocks, with still six solutions and six strategies they can use. Thank you for coming on because it was such a powerful presentation. Chris: No, I agree. I mean, we had standing room only, and people really came up to us afterwards and just said how impactful it was. And then we actually redid it at the International OCD Foundation, and it was one of the best-attended talks at the event. And then we got a lot of good feedback, and people kept messaging me like, “I want to hear it. I couldn't go to the conference.” I'd play clips for my group, and they're like, “When is it going to be a podcast?” I was like, “I'll ask Kim.” I'm glad you said yes because I do believe for anybody going through any mental health condition, this list is bound, and I think the solutions will really be something that can be a game changer in their recovery. Kimberley: Absolutely, absolutely. I love it mostly because, and we're going to get straight into these five roadblocks, they're really about mindset and going into recovery. I think it's something we're not talking about a lot. We're talking about a lot of treatment, a lot of skills, and tools, but the strategies and understanding those roadblocks can be so important. Chris: Yeah. I did a talk for a support group. They had asked me to come and speak, and I just got this idea to talk about mindset. I did this presentation on mindset, and people were like, “Nobody's talking about it.” In the back of my head, I'm like, “Kim and I did.” But we're the only ones. Because I do think so many people get the tools, right? The CBT tools, they get the ERP tools, the mindfulness edition, and people really find the tools that work for them. But when I really think of my own personal recovery with multiple mental health diagnoses, it was always about mindset. And that's what I like about our talk today. It's universal for anyone going through any mental health condition, anxiety base, and it's that mindset that I think leads to recovery. It shouldn't be the other way around. The tools are great, but the mindset needs to be there. Kimberley: Yeah. We are specifically speaking to the folks who are burnt out, feeling overwhelmed, feeling a lack of hope of recovery. They really need a kickstart, because that was actually the big title of the presentation. It was really addressing those who are just exhausted with the process and need a little bit of a strategy and mindset shift. Chris: Yeah. I don't want to compare, but I broke my ankle when I was hiking in Hawaii, and I have two autoimmune diseases. Although those ailments have caused problems, especially the autoimmune, when I think back to my mental health journey, that always wore me out more because it's with you all the time, 24/7. It's your mental health. When my autoimmune diseases act up, I'm exhausted, I'm burnt out, but it's temporary. Or my ankle, when it acts up, I have heating pads, I have things I can do, but your brain is with you 24/7. I do believe that's why a lot of people resonate with this messaging—they are exhausted. They're busting their butt in treatment, but they're tired and hitting roadblocks. And that's why this talk really came about. Kimberley: Yeah, exactly. All right, let's get into it here in a second. I just want to give one metaphor with that. I once had a client many years ago give the metaphor. She said, “I feel like I'm running a marathon and my whole family are standing on the out, like on the sidelines, and they're all clapping, but I'm just like faceplant down in the middle of the road.” She's like, “I'm trying to get up, I'm trying to get up, and everyone's telling me, ‘Come on, you can do it.' It's so hard because you're so exhausted and you've already run a whole bunch of miles.” And so I really think about that kind of metaphor for today. If people are feeling that way, hopefully they can take away some amazing nuggets of information.  Chris: Absolutely. That's a good visual. Faceplant. Kimberley: It was such a great and powerful visual because then I understood this client's experience. Like, “Oh, okay. You're really tired. You're really exhausted.” ROADBLOCK #1: YOU BEAT YOURSELF UP! Okay, let's get into it. So, I'm going to go first because the number one roadblock we talked about, not that these are in any particular order, but the one we came up first was that you beat yourself up. This is a major roadblock to recovery for so many disorders. You beat yourself up for having the disorder. You beat yourself up for not coping with it as well as you could. You beat yourself up if you have OCD for having these intrusive thoughts that you would never want to have. Or you're beating yourself up because you don't have motivation because you have, let's say, some coexisting depression.  The important thing to know there is, while beating yourself up feels productive, it might feel like you're motivating yourself, or you may feel like you deserve it. It actually only makes it harder. It only makes it feel like you've got this additional thing. Again, a lot of my patients—let's use the marathon example—might yell at themselves the whole way through the marathon, but it's not a really great experience if you're doing that, and it takes a lot of energy.  SOLUTION #1: SELF-COMPASSION So what we offered here as a strategic solution is self-compassion—trying to motivate and encourage yourself using kindness. If you're going through a hard day, maybe, just if you've never tried this before, trial what it would be like to encourage yourself with kind words or asking for support, asking for help so that you're not burning all that extra energy, making it so much harder on yourself, increasing your suffering. Because I often say to patients, the more you suffer, the more you actually deserve self-compassion. It's not the other way around. It's not that the more you suffer, the less you deserve it. Do you have any thoughts on that, Chris? Chris: Oh yeah. I would say I see that across the board with my clients, this harshness, and there's this good intention behind it, this idea that if I can just bully myself into recovery. I always try to remind clients that anxiety-based disorders, it's a part of our bodies as well. Our brain is a part of our body, just like our arm, our tibia, our leg, all these other bones, but there's a lack of self-empathy that we have for ourselves, as if it's something that we're choosing to do. Someone with a broken leg doesn't wake up in the morning and get mad at themselves that their leg is still broken. They have understanding, and they're working on their exercises to heal. It's the same with these disorders.  So, the reason I love self-compassion is when we go and step in to help one of our friends, we use a certain tone, we use certain words, we tap into their strengths, we use encouragement because we know that method is going to be what boosts them up and helps them get through that rough patch. But for some reason, when it's ourselves, we completely abandon everything we know that's supportive, and we talk to ourselves in a way that I almost picture like a really negative boot camp instructor, like in the military, just yelling and screaming into submission. The other thing is when we're beating ourselves up like that, we're more likely to tap into our unhelpful habits. We're more likely to shut down and isolate, which we see a lot in BDD, social anxiety, et cetera. But that self-compassion isn't like a fake pop culture support. It's really tapping into meeting yourself where you're at, giving yourself some understanding, and tapping into the strategies that have worked in the past when you're in a low moment.  I know sometimes people are like, “I don't know how to do that,” but you're doing it to everybody else in your life. Now it's time to give yourself that same self-compassion that you've been giving to everybody important to you. Kimberley: Yeah, and we actually have a few episodes on Your Anxiety Toolkit on exactly how to embrace self-compassion, like how that might actually look. So, if people are really needing more information there, I can add in the show notes some links to some resources there as well.  ROADBLOCK #2: THERE WILL BE HARD DAYS  Okay. Now, Chris, can you tell us about the second most common or another common anxiety roadblock around this idea that there will be hard days? Chris: There's always these great images if you Google about what people think recovery will look like versus what recovery looks like. I love those images because there is this idea. We see a lot of perfectionism in anxiety disorders. In OCD, we see perfectionism. So, this idea of, like, I should be here and I should easily scoot to the end. It's not going to be like that; it's bumpy, it's ups and downs. We know so much factors into or impact how our mental health disorder shows up. We can't always control our triggers. Sometimes if we haven't slept well or there's a lot of change in our life, we could have more anxiety. So, it's going to ebb and flow.  So, when we have this fixed mindset of like, it has to be perfect, there has to be absolutely no bumps on the road, no turbulence, we're going to set ourselves up for failure because the day we have a hard day, we want to completely shut down. So I really believe, in this case, the solution is thinking bigger. If you're thinking day to day, sometimes if you're too in it, you're dealing with depression, you're really feeling bad, you skipped school because you have a presentation, social anxiety is acting up. You think bigger picture. Why am I here? Why am I doing this? Why have I sought out treatment? Listen to this podcast. What am I trying to accomplish?  SOLUTION #2: KNOW YOUR WHY I know for me in my own recovery, knowing my why was so important. There were certain things in my life that I found important to achieve, and I kept that as the figurative carrot in front of the mule to get me to go. So, that way, if I had a rough day, I thought bigger picture. What do I need to do today to make sure that I meet my goals? And so, I believe everybody needs to know their why.  Now, it doesn't have to be grandiose. Some people want to build a school and teach kids in underprivileged countries. Amazing why. But other people are sometimes like, “I just want to be able to make my own choices today and not feel like I base them out of anxiety.” There's no right or wrong why, but if you can know what beacon you're going to, it really helps you get through those hard days.  What about for you? When we talk about this, what comes up for you? Kimberley: Well, I think that for me personally, the why is a really important mindset shift because often I can get to this sort of, like you said, perfectionistic why. Like, the goal is to have no anxiety, or the goal is to have no bad days. We see on social media these very relaxed people who just seem to go with the flow, and that's your goal. But I have to often with myself do a little reality check and go, “Okay, are you doing recovery to get there? Because that goal might be setting you up for constant disappointment and failure. That mightn't be your genetic makeup.”  I'm never going to be like the go-with-the-flow Kimberley. That's just not who I am. But if I can instead shift it to the why of like, what do I value? What are the things I want to be able to do despite having anxiety in my life? Or, despite having a hard day, like you said, how do I want that to look? And once I can get to that imagery, then I have a really clear picture. So, when I do have a bad day, it doesn't feel so defeating, like what's the point I give up, because the goal was realistic. Chris: For me, a big part of my why in recovery, once I started getting into a place where I was managing the disorders I was dealing with—OCD, body dysmorphic disorder, I had a lot of generalized anxiety, and major depressive disorder—I was like, “I need to give back. There's not people my age talking about this. There's not enough treatment providers.” There was somewhere, like in the middle of my treatment, that I was like, “I don't know how I'm going to advocate. I don't know what that's going to look like, but I have to give back.” And so, on those hard days when I would normally want to just like, “Well, I don't care that it's noon, I'm shutting it down, I'm going into my bed, I'm just going to sleep the rest of the day,” reminding myself like there's people out there suffering that can't find providers, that can't find treatment, may not even know they have these disorders. I have to be one of the voices in the community that really advocates and gets people education and resources. And so, I didn't let myself get in bed. I looked at the day as quarters. Okay, the morning and the afternoon's a little rough, but I still have evening and night. Let me turn it around. I have to go because I have this big goal, this ambitious dream. I really want to do it. So that bigger why kept me just on track to push through hard days. ROADBLOCK #3: YOU RUN OUT OF STAMINA Kimberley: Amazing. I love that so much. All right. The third roadblock that we see is that people run out of stamina. I actually think this is one that really ties into what we were just talking about. Imagine we're running a marathon. If you're sprinting for the first 20 miles, you probably won't finish the race. Or even if you sprint the first two miles, you probably won't finish the marathon.  One of the things is—and actually, I'll go straight to the strategy and the thing we want you to practice—we have to learn to pace ourselves throughout recovery. As I said, if you sprint the first few miles, you will fall flat on your face. You're already dealing with so much. As you said, having a mental health struggle is the most exhausting thing that I've ever been through. It requires such of your attention. It requires such restraint from not engaging in it and doing the treatment and using the tools. It's a lot of work, and I encourage and congratulate anyone who's trying. The fact that you're trying and you're experimenting with what works and what doesn't, and you're following your homework of your clinician or the workbook that you've used—that's huge. But pacing yourself is so important. So, what might that look like? Often, people, students of mine from CBT School, will say, “I go all out. I do a whole day of exposures and I practice response prevention, and I just go so hard that the next day I am wiped. I can't get out of bed. I don't want to do it anymore. It was way too much. I flooded myself with anxiety.” So, that's one way I think that it shows up. I'll often say, “Okay, let's not beat yourself up for that.” We'll just use that as data that that pace didn't work. We want to find a rhythm and a pace that allow you to recover. It's sort of like this teeter-totter. We call it in Australia a seesaw. You want to do the work, but not to the degree where you faceplant down on the concrete. We want to find that balance.  I know for me, when I was recovering from postural orthostatic tachycardic syndrome, which is a chronic illness that I had, it was so hard because the steps to recovery was exercise, but it was like literally walking to the corner and back first, and then walking half a block, and then walking three-quarters of a block, and then having my husband pick me up, then walking one block. And that's all I was able to do without completely faceplanting the next day, literally and figuratively.  My mind kept saying to me, “You should be able to go faster. Everybody else is going faster. Everyone else can walk a mile or a block. So you should be able to.” And so, I would push myself too hard, and then I'd have to start all over again because I was comparing myself to someone who was not in my position.  SOLUTION #3: PACE YOURSELF So, try to find a pace that works for you, and do not compare your pace with me or Chris or someone in your support group, or someone you see on social media. You have to find and test a pace that works for you. Do you have any thoughts, Chris? Chris: Yeah. I would say in this one, and you alluded to it, that comparison, that is going to get you in this roadblock because you're going to be looking to your left and your right. Why is that person my age working and I'm not? It's not always comparing yourself. Sometimes, like you said, it is people in your support group. It's people that you see advocating for the disorder you may have. But sometimes people even look at celebrities or they'll look at friends from college, and can I do that? The comparison never motivates you, it never boosts you; it just makes you feel less than. That's why one of my favorite quotes is, “Chase the dream, not the competition.” It's really finding a timeline that works best for you.  I get why people have this roadblock. As somebody who's lived through multiple mental health disorder diagnoses, it's like, once we find the treatment, we want to escalate to the finish line, and we'll push ourselves in treatment sometimes too much. And then we have one of those days where we can't even get out of bed because we're just beat up, we're exhausted, and it's counterproductive.  I wanted to add one thing too. The recovery part may not even be what you're doing with your clinician in a session that you are not pacing yourself with. My biggest pacing problem was after recovery, not that the disorders magically went away, they were in remission, I was working on doing great, but it was like, I went to martial arts, tennis, learned Spanish, started volunteering at an animal shelter, went back to school, got a job, started dating. It was so much. Because I felt like I was behind, I needed to push myself.  The problem that started to happen was I was focusing less on the enjoyable process of dating or getting a job, or going back to school. I was so fixated on the finish line. “I need to be there, I need to be there. What's next? What's next?” I got burnt out from that, and I was not enjoying anything I was doing.  So, I would say even after you're managing your disorder, be careful about not pacing yourself, even in that recovery process of getting back into the lifestyle that you want. Kimberley: Yeah, absolutely. I would add too, just as a side point, anyone who is managing a mental health issue or an anxiety disorder, we do also have to fill our cup with the things that fill our hearts. I know that sounds very cliche and silly, but in order to pace ourselves and to have the motivation and to use the skills, we do have to find a balance of not just doing all the hard things, but making sure you schedule time to rest and eat and drink and see friends if that fills your cup, or read if that fills your cup. So, I think it's also finding a rhythm and a balance of the things that fill your cup and identifying that, yes, recovery is hard. It will deplete your stores of energy. So, finding things that fill that cup for you is important.   Chris: Well, you just made a good point too. In my recovery, all those things you mentioned, I thought of those as like weakness, like I just wasted an hour reading. Sometimes even with friends. That one, not as much, because I saw value in friendship. But if I just watched a movie or relaxed, or even just hung out with friends, it felt like a waste. I'm like, “How dare I am behind everybody else? I should be working. I should be this. I should move up.” A lot of should statements, a lot of perfectionist expectations of myself.  So, the goal for me or the treatment for me wasn't to then go to the other extreme and just give up everything; it was really to ask myself, like you said, how can I fill my cup in ways that are important and see value and getting a breakfast burrito with a friend and talking for three hours and not thinking like, “Oh, I should have been this because I got to get my degree.” I'm glad that you brought that up. I always think of like we're overflowing our cup with mental health conditions. We have to be able to have those offsets that drain the cup so we have a healthy balance. So, a great point. ROADBLOCK #4: NOT OWNING YOUR RECOVERY Kimberley: I agree. So important. Would you tell us about owning your recovery? Because you have a really great story with this. Chris: Yeah. People ask me all the time how I got better. A lot of people with body dysmorphic disorder struggle to get better. Obviously, we know that with obsessive-compulsive disorder, major depressive disorder, et cetera. So, a lot of people will ask sometimes, and I always say to them, if I had to come up with one thing, it was because I made my mental health recovery number one. I felt that it was like the platform that I was building my whole life on. I'm so bad with the-- what is it? The house, the-- I'm not a builder.  Kimberley: Like the foundation. Chris: Thank you. Clearly, I'm not going to be making tools tomorrow or making things with tools. But yeah, like a house has to have a nice foundation. You would never build a house on a rocky side of the mountain. And so, I had to give up a lot, like most of us do, as we start to get worse. I became housebound and I dropped out of college, and I gave up a job. I was working in the entertainment industry, and I really enjoyed it. I was going to film school, and I was happy. I had to give all that up because I couldn't even leave my house because of the disorder.  SOLUTION #5: MAKE YOUR RECOVERY THE MOST IMPORTANT THING So, when I was going to treatment and I was really starting to see it work, I was clear to that finish line of what I needed to do. So I made it the most important thing. It wasn't just me; it was my support system. My treatment was about a four-hour round trip from my house, so my mom and I would meet up every day. We drive up to LA. I go to my OCD therapist, and I'd go to my psychiatrist and then my BDD therapist and support group, and then come home. There's times I was exhausted, I wanted to give up, I was over it, but I never ever, ever put it to number two or three. I almost had this top three list in my head, and number one was always my recovery. My mom too, I mean, when she talks, she'll always say it's the most important thing. If my job was going to fire me because I couldn't come in because I had to take my kid on Wednesdays to treatment, I was going to get fired and find a new job. We just had to make this important.   As I was getting better, there were certain opportunities that came back to me from my jobs or from school. My therapist and I and my mom just decided, “Let's hold off on this. Let's really, really put effort into the treatment. You're doing so well.” One of the things that I see all the time, my mom and I run a very successful family and loved ones group. A lot of times, the parents aren't really making it the priority for their kids or the kids, or the people with the disorders aren't really making it a priority. It's totally understandable if there's things like finances and things, barriers. But that's not what I'm talking about. I'm talking about when people have access to those things, they're just not owning it. Sometimes they're not owning it because they're not taking it seriously or not making it important. Or other times, people are expecting someone else to get them better.  I loved having a team. I didn't have a big team. I came from nothing. It was a very small team. I probably needed residential or something bigger. I only really had my mom's support, but we all leaned on each other. But I always knew it was me in the driver's seat. At the end of the day, my therapist couldn't save me, my mom couldn't save me, they couldn't come to my house and pull me out of bed or do an exposure for me, or have me go out in public during the daytime because of BDD. I had to be the one to do it. I could lean on them as support systems and therapists are there for, but at the end of the day, it was my choice. I had to do it. When my head hit the pillow, I had to make sure that I did everything I possibly could that day to recover.  When I took ownership, it actually gave me freedom. I wasn't waiting for someone to come along. I wasn't focusing on other things. I made it priority number one. I truly believe that that was the thing that got me better. Once again, didn't have a lot of resources, leaned a lot on self-help books and stuff because I needed a higher level of care, but there was none and we couldn't afford it. I don't want anyone to hear this podcast and think, “Well, I can't find treatment in my area.” That's not what I'm saying. I'm just saying, whatever you have access to, own it, make it a priority, and definitely be in that leader's seat because that's going to be what's going to get you better. Kimberley: Yeah, for sure. I think too when I used to work as a personal trainer, I would say to them, “You can come to training once a week, but that once a week isn't going to be what crosses you across that finish line.” You know what I mean? It is the work you do in the other 23 hours of that day and the other seven days of the week. I think that is true. If you're doing and you're dabbling in treatment, but it's not the main priority, that is a big reason that can hold you back. I think it's hard because it's not fair that you have to make it priority number one, but it's so necessary that you do.  I really want to be compassionate and empathize with how unfair it is that you have to make this thing a priority when you see other people, again, making their social life their priority or their hobby their priority. It sucks. But this mindset shift, this recalibration of this has to be at the top. When it gets to being at the top, I do notice, as a clinician, that's when people really soar in their recovery. Chris: Yeah. We had a very honest conversation with my BDD therapist, my OCD therapist, and my psychiatrist, and they're like, “You need a higher level of care. We understand you can't afford it. There's also a lot of waiting lists.” They're like, “You're really going to have to put in the work in between sessions. You're supposed to be in therapy every day.” We just couldn't. All we can afford is once a week. They said, “Look, when you're not in our session, you need to be the one.”  So, for instance, with depression, my psychiatrist is like, “Okay, you're obviously taking the medication, but you need to get up at the same time every day. Open up all your blinds, go upstairs, eat breakfast on the balcony, get ready, leave the house from nine to five.” I didn't have a job. “But you need to be out of the house. You need to be in nature. You need to do all these things.” I never wanted to, but I did it. Or with my OCD and BDD recovery, I didn't want to go out in public. I felt like it looked horrendous. I felt like people were judging me, but I did. Instead of going to the grocery store at 2:00 in the morning, I was going at noon. When everyone's there for OCD, it was like, I didn't want to sit in public places. I didn't want to be around people that I felt I could potentially harm.  My point is like every single day, I was doing work, I was tracking it, I was keeping track, and I had to do that because I needed to do that in order to get better based on the setup that I had.  I do want to also say a caveat. I always have the biggest empathy for people or sympathy for people that are a CEO of a company or like a parent and have a lot of children, or it's like you're busy working all day and you're trying to balance stuff. I mean, the only good thing that came from being housebound is I didn't have a lot of responsibilities. I didn't have a family. I wasn't running a company. I wasn't working. So, I did have the free time to do the treatment. So, I have such sympathy for people that are parents or working at a company, or trying to start their own small business and trying to do treatment too. But I promise you, you don't have to put your recovery first forever. Really dive into it, get to that place where you're really, really stable. It'll still be a priority, but then you will be a better parent, a better employee, a better friend once you've really got your mental health to a level that you can start to support others. You may need to support yourself first, like the analogy with a mask on the plane. ROADBLOCK #5: YOU HAVE A FIXED MINDSET Kimberley: Agreed. That's such an important point. All right, we're moving on to roadblock number five. This is yours again, Chris. Tell us about the importance of specific mindsets, particularly a fixed mindset being the biggest roadblock. Chris: One of the things that makes me the most sad about people having a mental health condition because of how insidious they are is it starts to have people lose their sense of identity. It has them start to almost re-identify who they are, and it becomes a very fixed mindset. So, if you have social anxiety or social phobia, it's like, “Oh, I'm somebody that's not good around people. I say embarrassing things. I never know what kind of conversation to lead with. I should probably just not be around people.” Or, let's say generalized anxiety. “Deadlines really caused me too much strain. I can't really go back to school.” BDD. “I'm an unattractive person. Nobody wants to date me. I'm unlovable.”   We get into these fixed mindsets and we start to identify with them, and inevitably, that person's life becomes smaller and smaller and smaller. So, the more they identify with it, the more that they become isolated from others, and they have this very fixed mindset. I think of like OCD, for instance, isn't really about guidelines; it's all about rules. This is how things are supposed to be. What happens is when I work with a client specifically, somebody that's pretty severe, it's trying to get them to see the value in treatment and to even tap into their own personal values is really difficult. It's like, “Treatment doesn't work. I've tried all the medications. I don't know what I'm going to do. I'm just not somebody that can get better.” SOLUTION #5: GROWTH MINDSET What I tell clients instead is, “Let's be open. Let's be curious. Let's move into a growth mindset. Let's focus on learning, obtaining education, being open to new concepts. Look, when you were younger and the OCD didn't really attack you, or when you were younger and you didn't deal with social anxiety, you were having friends, you had birthday parties, you were going to school, and everything. Maybe that's the real you, and it's not that you lost it. You just have this disorder that's blocked you from it.” And so, when clients become open and curious and willing to learn, willing to try new things, and to get out of their comfort zone, that's where the growth really happens.  If you're listening to this podcast or watching it right now and you're determined like, “This isn't working; nothing can help me,” that fixed mindset is never something that's going to get you from where you are to where you want to be. You have to have that growth, that learning, that trying new things, expanding.  I always tell clients, “If you try something with your therapist and it doesn't work, awesome. That's one other thing that doesn't work. Move on to something else.” That openness. What I always love after treatment is people are like, “I am social. I do love to be around people. I am somebody who likes animals. I just was avoiding animals because of harm thoughts.” People start to get back into who they really are as soon as they start to be more open to recovery. Kimberley: Yeah, for sure. The biggest fixed mindset thought that I hear is, “I can't handle it.” That thought alone gets in the way of recovery so many times. We go to do an exposure, “I can't handle this.” Or, “What if I have a panic attack? I cannot handle panic attacks.” It's so fixed. So I often agree with you. I will often say, this work, this mental health work, or this human work that we do is shifting the way we see ourselves and life as an experiment. We always have these black-and-white beliefs like “I can't handle this” or “I can't do this. I can't get in an elevator. I can't speak public speaking,” or whatever it might be. But let's be curious. Like you said, let's use it as an experiment. Let's try, and we'll see. Maybe it doesn't go great. That's okay, like you said, but then we know we have data, and then we have information on what got in the way, and we have some information.  I think that even just being able to identify when you're in a fixed mindset can be all you need just to be like, “Oh, okay, I'm having a very black-and-white fixed mindset.” Learning how to laugh and giggle at the way our brain just gets so determined and black-and-white, like you can't do this, as you said, I think is so important because, like you said, once you get to recovery, then you go on to live your life and actually do the things that you dream, the dream that you're talking about. It might be you want to get a master's degree or you might want to go for a job, or you want to go on a date. You're going to be able to use that strong mindset for any situation in life. It applies to anything that you're going to conquer.  I always say to clients, if you've done treatment for mental health, you are so much more prepared than every student in college because they haven't gone through, they haven't had to learn those skills. Chris: Yeah, no, exactly. I remember like my open mindset was one of the assets I had in recovery. I remember going to therapy and being like, “I'm just going to listen. These people clearly know what they're doing. They've helped people like me. Why would it be any different?” And I was open. I can see the difference with clients that have a more growth mindset. They come in, they're scared. They're worried. They've been doing something for 10, 15, 16 years, and they're like, “Why is this guy going to tell me to try to do different things or to think different or have different thinking patterns?” But they're open. I always see those people hit that finish line first. It's the clients that come and shut down. The family system has been supporting this like learned helplessness. Nobody really wants to rock the boat. Everything shut down and closed. It's like prying it open, as most of the work. And then we finally get to the work, but we could have gotten there quicker. Everybody's at their own pace, but I really hope that people hear this, though, are focused on that openness. You were talking about like people thinking they can't handle it. The other thing I hear sometimes is people just don't think they deserve it. “I just don't even deserve to get better.” You do. You do. That's what I love about my job the most. Everybody that comes into my office, and I'm like, “You deserve a better life than you're living. Whatever it is you want to do. You want to be a vet. How many animals are you going to save just by getting into being a vet? You got to do it.” My heart breaks a little bit when people have been dealing with mental health for long enough that they start to believe they don't even deserve to get better.  SOLUTION #6: IT'S A BEAUTIFUL DAY TO DO HARD THINGS Kimberley: I love that. So, we had five roadblocks, and we've covered it, but we promised six strategies. I want to be the one to deliver the last one, which everyone who listens already knows what I'm going to say, but I'm going to say it for the sake that it's so important for your recovery, which is, it's a beautiful day to do hard things. It is so important that you shift, as we talked about in the roadblock number one, you shift your mindset away from “I can't do hard things” to “It's okay to do hard things.” It doesn't mean you've failed. Life can be hard.  I say to all my patients, life is 50/50 for everybody. It's 50% easy and 50% hard. I think some people have it harder than others. But the ones who seem to do really well and have that grit and that survivor's mindset are the ones who aren't destroyed by the day when it is hard. They're willing to do the hard thing. They're okay to march into uncertainty. They're willing to do the hard thing for the payoff. They're willing to take a short-term discomfort for the long-term relief or the long-term payout. I think that mindset can change the game for people, particularly if you think of it like a marathon. Like, I just have to be able to finish this marathon, I'm going to do the hard thing, and think of it that way. There'll be hills, there'll be valleys, there'll be times where you want to give up, but can I just do one hard thing and then the next hard thing, and then the next hard thing? Do you have any thoughts on that? Chris: I'm glad that this is the message that you put out there. I'd say, obviously, when I think of Kim Quinlan as a friend, I think of other things and all the fun we've had together. But as a colleague, I always think of both. Obviously, self-compassion. But this idea of it's a beautiful day to do hard things, I like it because we've always talked about doing hard things as this negative thing before you came along, and by adding this idea of it's a beautiful day. When I look at all the hard things I did in my own recovery, or I see clients do hard things, there's this feeling of accomplishment, there's this feeling of growth, there's this feeling of greatness that we get. Just like you were saying, beyond the mental health conditions that I dealt with, when I start getting into real life after the mental health conditions now are more in recovery, every time I choose to do hard things, there's always such a good payoff. I was convinced I would never be able to get through school and get a degree and become a licensed therapist because I struggled with school with my perfectionism. It was difficult for me to get back in there and to humble myself and say, “Hey, you may flop and fail.” But now I'm a licensed therapist because of that willingness to do hard things.  I could give a plethora of examples, but I want people to hear that doing hard things is your way of saying, “I believe in myself. I trust myself that I can accomplish things, and I'm going to tap into my support system if I need to, but I am determined, determined, determined to push myself to a level that I may not think I can.” I love when clients do that, and they always come in, they're like, “I'm so proud of myself, I can't wait to tell you what I did this weekend.” I love that. So, always remember hard things come with beautiful, beautiful, beautiful outcomes and accomplishments. Kimberley: Yeah. I think the empowerment piece, when clients do scary, hard things, or they feel their hard feelings, or they do an exposure, they'll often come in and be like, “I felt like I could do anything. I had no idea about the empowerment that comes from doing hard things.” I think we've been trained to think that if we just avoid it, we then will feel confident and strong, but it's actually the opposite. The most empowered you'll ever feel is right after you've done a really, really hard thing, even if it doesn't go perfectly. Chris: Yeah, and so much learning comes out of it. That's why I always tell clients too, going back to one of our first roadblocks, beating yourself up prevents the learning. Let's say you try something and it doesn't go well. I was talking to a colleague of ours who I really, really like. She was telling me how her first treatment center failed. Now she's doing really well for herself down in San Diego. She's like, “I just didn't know things, and I just did things wrong, and I learned from it, and now I'm doing well.”  It's like, whenever we look at something not going the way we'd like as an opportunity to learn and collect data, it just makes us that much better when we try it the other time. A lot of times these anxiety disorders were originally before treatment, hopefully trying to find ways to avoid our way through life—tough words—and trying to figure out, like, how can I always be small and avoid and still get to where I want to be? When people hear this from your podcast—it's a beautiful day to do hard things—I hope that they recognize that you don't have to live an avoidant lifestyle, an isolated lifestyle anymore. Really challenging yourself and doing hard things is actually going to be so rewarding. It's incredible what outcomes come with it. Kimberley: Amazing. Well, Chris, thank you so much for doing this with me again. We finally stamped it into the podcast, which makes me so happy. Tell us where people can hear about you, get in contact with you, and learn more about what you do. Chris: I am really active in the International OCD Foundation. I'm one of their board members. I also am one of their lead advocates, just meeting as somebody with the disorder. I speak on it. Then I lead some of their special interest groups. The Body Dysmorphic Disorder Special Interest Group is one of them, but I lead about four of them. One of their affiliates, OCD Southern California, I am Vice President of OCD SoCal and a board member. We do a lot of events here locally that Kim is part of, but also some virtual events that you could be a part of. And then, as a clinician, I'm a licensed clinician in Costa Mesa, California. I currently work at The Gateway Institute. You can find me either by email at my name, which is never easy to spell. So, ChrisTrondsen@GatewayOCD.com, or the best thing is on social media, whether it's Instagram, Facebook, or X, I guess we're calling it now. Just @christrondsen. You could DM me. I always like to hear from people and get people's support, and anything I can do to support people. I always love it. Kimberley: Oh my gosh, you're such a light in the community, truly. A light of hope and a light of wisdom and knowledge. I want to say, because I don't tell you this enough as your friend and as your colleague, thank you, thank you for the hope that you put out there and the information you put out there. It is so incredibly helpful for people. So, thank you. Chris: I appreciate that. I forgot to say one thing real quick. Every first, third, and fourth Wednesday of the month at 9 a.m. Pacific Standard Time on the IOCDF, all of their platforms, including iocdf.org/live, I do a free live stream with Dr. Liz McIngvale from Texas, and we have great guests like Kim Quinlan on, so please listen. But thank you for saying that. I always try to put as much of myself in the community, and you never know if people are receiving it well. I want to throw the same thing to you. I mean, this podcast has been incredible for so many. I always play some of this stuff for my clients. A lot of clients are looking for podcasts. So, thanks for all that you do. I'm really excited about this episode because I think it's something that we touch so many people. So, now to share it on a bigger scale, I'm excited about it. But thank you for your kind words. You're amazing. It's all mutual. Kimberley: Thank you. You're welcome back anytime. Chris: And we're going to get Greek food soon. It's funny [inaudible] I'm telling you. It's life-changing. Thanks, Kim. Listen to other episodes. Kimberley: Thank you.

Building Texas Business
Ep064: Crafting a Winning Small Business Hiring Strategy with Corey Harlock

Building Texas Business

Play Episode Listen Later Jan 10, 2024 41:44


In today's episode of Building Texas Business, join me as I welcome Corey Harlock of Key Hire Solutions to discuss his transformational journey transitioning from hospitality management to revolutionizing small business recruitment strategies. We explore Corey's grassroots experience and how reflecting on skills and networking empowered changes benefiting businesses, employees, and communities. From precision management to respectful rejection, Corey shares recruitment nuances and emphasizes reputation's role in success over time. As remote options demand adaptation, Corey relates relatable career anecdotes and perspective-shaping reads. His insights illuminate relationship-building, timing, and vision for seizing opportunities in fluctuating job markets. SHOW HIGHLIGHTS Corey discusses his transition from the hospitality industry to recruitment, highlighting the impact of hiring on small business owners' lives and the broader community. We explore the importance of reflecting on skills and the value of networking in Corey's journey to founding Key Hire Solutions. I emphasize the significance of managing the entire recruitment process to improve hiring success rates for small businesses. Corey explains the importance of treating candidates with respect throughout the recruitment process, including providing clear communication in cases of rejection. We examine the current job market trends, including the scarcity of candidates and the rise of remote and hybrid work arrangements. Corey advises on the critical nature of timely decision-making in the hiring process to secure top talent. We discuss how to hire for future growth, highlighting the need to find candidates who can scale with the company and align with its values and culture. Corey shares personal anecdotes about his early career, his move to Texas, and his reading preferences, such as "The Energy Bus." I recount the importance of meaningful connections in business and how books like "Barbarians at the Gate" await on Corey's reading list for inspiration. Corey offers advice to business owners on upgrading their hiring standards to attract professionals with the capacity to significantly grow their business. LINKSShow Notes Previous Episodes About BoyarMiller About Keyhire.solutions GUESTS Corey HarlockAbout Corey TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In today's episode you will meet Corey Harlock, founder of Key Hire Solutions. Corey's goal at Key Hire is to improve the lives of business owners by improving the talent they hire, so they can focus on what is important to them. Corey, I want to thank you for taking time to join me here on Building Texas Business. Corey: Oh, great to be here. Yeah, good, good. Chris: So you're the founder of Key Hire Solutions. Tell us a little bit about what Key Hire is and what it's known for. Corey: Key Hire is. It's a business solution for small business owners. So we really target those small business owners five to twenty five million dollars and the reason we kind of the goal and mission of Key Hire is to make the lives of the business owners better by improving the talent and the capacity and the experience inside their business so they have time to focus on the things they want to focus on Whether that's getting a better night's sleep, spending more time with their family, going out and getting more sales, improving their business. And we can improve the lives of the business owners. They can be more focused and more happy at their business. It in turn improves the lives of their people in their business who then can go out and be more successful in their personal and professional lives and in turn that reflects on the community. So we really do see a holistic hesitate to use the word global because it's really community focus. But if we can do right by the business owner, they can do right by their people who can then go out and do right by their community and their families and their surroundings. Chris: It kind of builds each segment, kind of builds on the other right, correct. And when you tell a story that way, it emphasizes how connected it all is. Corey: Has to be yeah. Chris: So how did you get started with this, or what was a little bit about your background led you through your journey to get to Key High? Corey: Sure, yeah, I'm a recovering hospitality guy. I worked in restaurants for years and years. I did high-end, fine dining in boutique hotels out in Banff, alberta, canada, in the Rocky Mountains for years and years. That's where I met my wife and one day I came to the conclusion I was. I didn't want to be in that game anymore, and so I went through this kind of reflection process and said what skills do I have? And I kind of came out with three areas, three things I thought I could, that would could transition from the hospitality world into other worlds, and one of them was marketing, one of them was sales and one of them was recruiting. And at that time I was working six days a week and I had one day off a week and I made a promise to myself I would have coffee with anyone on that one day off a week and for about three, three months I just had coffee with. You know, you send out a help notice to your network, right? I'm looking at making a change. Here's what I think I can do. Does anyone know anyone I should talk to? And people get back to you. So I started having coffee and I ended up with this guy named Bob Scott who was a partner in a company called Questus recruitment in Calgary, alberta, and told him about my hospitality experience and in hospitality, a large part of what you do because of high turnover you do a lot of hiring. So I thought I was pretty good I thought I was good at it and he told me about how they had this great hospitality program at recruitment. He then also went on to tell me that none of us know anything about hospitality. So they hired me to build at this hospitality program and so that was my foray into recruiting and that was agency recruiting and I was with them for a number of years and it progressed that the main owner was a guy named Morgan Art and so eventually I created a company within a company called Questus hospitality recruitment and then Morgan and I partnered in that and then I bought him out, went out on my own and changed the name of the company of the hospitality recruitment network and did that for a couple years and then we got transferred to Houston. So I closed the doors and came down here. But I never liked the agency model. I mean it works for some people, but for me it just didn't, because it was so transactional and oftentimes you would work with business owners or corporations and you could see the problem they had or the disconnects or how they could be better. But as a transactional agency recruiter they just find you people right and don't bore me with that, just give me some. Chris: Yeah, I don't want to be better. Corey: I just need people. So you know, oftentimes you're putting people into a situation where you kind of didn't know how it was gonna work out and there's a lot of big failure rate in that type of recruiting and key hire. I wanted to create it to work with those little guys on a long way around. But I wanted to create it to work with the small business owners to really help them and impact them and work side by side with them and allow them to leverage that experience and improve their experience and their business and then their lives of their people and their lives of the community people in the community yeah. Chris: So I mean, I think one of the things that employers maybe don't realize on the front end, but certainly at some point come to realize how expensive recruiting can be for your business, from not just dollars out the pocket for a recruiting fee but you spend time away from your business doing the recruiting, sure, you have the onboarding, you have all these things until someone can be highly productive and, quite frankly, from the the hiring side, you know the transactional agency model. Sometimes you don't think they really care, like said, they just want to place them once they get a fee. Corey: So there's this bad taste about even having to engage in the process and I think where I never aligned with that is when my motivation is to get paid and your motivation as a business owner is to make your business better. Those don't line up in the big picture right. There's a big disconnect in there and what do you do then, I guess? Chris: or what have you done? Key hire to you know. Bring that right in the line yeah, that and that's the question. Corey: So when I built the business, the three kind of core values I wanted to that I thought were important were the value of the time of the small business owner, because, exactly what you said, I don't think anyone starts a small business or starts a business because they love to hire people. They have a passion and something they love to do and part of growing a business is hiring right. Chris:Well, I can promise you everyone that's come on this podcast, as a business owner has said, how important it is to have good people, and right means hiring good people, not missing. So, to your point, though, they think about the passion, the idea that's the core to the business, but they all acknowledge down the road that hiring good people is the key to success yeah, and so I agree with that. Corey: And you golf, I do so. I haven't golfed in a while, but I used to golf quite a bit. I was never very good and I've probably hit tens of thousands of golf balls. Could I be an instructor, golf instructor? no, because I probably hit 10,000 golf balls wrong yeah right, and just because we hire every day doesn't mean we are experts at hiring. It means we've hired because we've had to and so we wanted to honor people's time. We wanted to impact their business through kind of experience and talent. But we also wanted to create a pricing model that was fair and equitable for both sides. And that was the biggest key for me was, you know, not having huge fees, not have a business owner feel like man, I paid up a lot or I've invested a lot in trying to get someone and the results were me yeah so we, the model of key hire is, you know, we get paid for the work we do, but we guarantee the hire and the work we do is a lot more exhaustive than what a traditional agency might do. And so, if I break down those three criteria, on average our clients pay less than 15% per hire, if you wanted to compare it to the agency model. Right, sometimes they're less than 10% and I think that's great because I want them to get value and we show up as a fixed cost on the P&L. There's no surprises, there's no gotchas, it is what it is. You can budget for what we do and we have monthly fees that are very affordable for the business. But the second piece of that is, you know, making sure that we're valuing their time. We dive into the business and we spend, you know, 8, 10, 12 hours inside a business before we do anything. We want to create an action plan for that business owner. You know we're an in-sourced solution, so we become their fractional department of talent. So we want to make sure we understand the business almost as well as they do before we go to work for them, so we can tell their story in the marketplace, right? Chris: Correct and be looking for the right fit from a cultural standpoint, mindset standpoint for that company right. Corey: Exactly. And then the you just touched on something really important, right? There's the kind of three things we want to break down. We want to break down the experience they need in their business. We want to break down the culture fit, because that is super important. If you have a small business, if you have 20 employees and we're bringing someone in, that's 5% of your culture. And if that's not aligned or we always like to say, if we're going to put someone on your bus, we want to put them at the front so all the people behind you are saying, wow, that's a really great, they're really good at what they do and they're a really good fit. I need to raise my game right. Rising tide raises all boats, so we want to make sure we're doing that. The third and most important and overlooked element is capacity. So many people hire for their current needs because they're in this kind of fire drill. I just need someone and they look good enough, right, reactionary, correct. So we want to get in there and build capacity in the business. One of our favorite phrases is we're not hiring someone to run your $10 million business. We're hiring someone to run your $50 million business, currently doing 10. So we want someone who can bring the experience and the capacity to build process and procedure and has leadership capabilities to scale. Chris: Well, I, you know, full disclosure for everyone out there. I can speak from experience. Have them work with you now for the better part of 2023. It's a totally different experience, in a good way and dealing with the hiring and recruiting and acquisition of talent, Love the investments you made in learning our firm and our business, and how can't imagine how much time I didn't see you put in behind the scenes to make sure you were bringing us the right candidates and cutting out the first two rounds of interviews, just to you know. It is a huge time savings, you know, for us. Corey: Yeah, well, I think we put two people in here, and, if my memory serves me, you guys have conducted a total of four interviews to hire those two people. Chris: Yeah. Corey: And I bet you the total man hours on that would be two, four, probably in the neighborhood of 12 total man hours to make those two hires from Boyer Miller. Yeah, I would say max. Chris: Yeah, so it does seem like. Well, obviously there's a model that I think has value you know talk about. Maybe. I guess you know what led you to that. Because in my mind, what you're doing in the hiring process is innovative. I don't know anyone else that really does this. What? Corey: was it. Chris: I guess, based on your experience, that kind of led you to this. What feedback did you get? You know, would you draw upon? Corey: The agency model is kind of go out, hunt, kill, throw it over the fence and then turn it over to a company who may or may not have a really effective interview hiring process. So, selfishly, I thought if I can control everything from beginning to end and understand the needs of the business and the needs of the candidate and manage those expectations, you would have a bit of better success rate and you can learn from what's happening. You know, a lot of times we'll go through the process with someone, like we did with you for the first role, and we didn't get it right the first time. But because I was there and managing the process and a part of it, I could hear the feedback, I could learn about your company more so that I could be better at going into the market, telling your story and identifying who's right for your business. So I think what's different is if we're going to work with you, it's required that we manage the whole process. We will never when people say well, look, you just bring us the people and we'll take it from there. That's a hard no for me, because for me to do all that work you know you talked about stuff behind the scenes For us to do the 10, 12, 15 hours of work behind the scenes before you give us an hour of your time. It doesn't make sense, right To just say here, I've done all this work, here's what it is Now, give it to you and then be blind about why didn't it work? Why was it a fit? Why was it a fit? Chris: Right. I guess it prevents you from learning and adapting and getting to that success point, because you said you earlier, you guaranteed the hire. Corey: Yeah, and I can't guarantee someone I was an involved with from the beginning to the end. And the other thing is we keep people on time. Yeah, because timing is a big issue in terms of getting people on board in this marketplace. So if we're driving that process and kind of, you know, tapping our clients saying, hey, I need to hear from you, we need to get this done, and they expect that right, if that wasn't part of the agreement and I'm just this pushy guy who don't worry about it, you've done your part, we'll let us handle the rest, it doesn't make sense. So we just want to control the process, because this is all key hire dots. We just do talent strategy acquisition and develop processes for hiring. This is what we're expert in. So in our process, the data says the process works pretty good. Right, we have a 90% success rate in terms of putting people into companies and getting them to their six months and beyond. We have some people that have been working. I have a client the second client I ever signed seven years ago, the person I put in one of the first people I ever put in a business as operations manager, is now the VP of operations seven years later and the owner is still aesthetic with that person. Chris: That's awesome, so it brings up a good point. You clearly have built your business off of key relationships, partnerships with companies and others. What's some advice you can give to other business hours out there about how to go about building those relationships so that they're sustainable and help kind of grow your business from them? Corey: And when you say relationships, you're meaning just within their own markets. Chris: We're both, I think, within your own market and maybe beyond. You've done that to kind of grow your business off of relationships, so what? Are some of the things that you would say you found to be successful in helping you do that. Corey: Well doing. Whatever your product or service is, you have to deliver it well. Right, and I think that's the goal of every business that gets set up. But I think one of the more overlooked things is reputation is one of your biggest recruiting tools. Your reputation in the market, your reputation amongst your peers, reputation cross market who other people might interact with you but the big one is the reputation you have with people who have applied to your company and whether they were hired, interviewed or not. And let me give you an example of what I'm talking about. We don't post jobs, but I know a lot of business owners do, and that's kind of what you have to do as a business owner to try to attract people. So you post a job and 50 people apply to that job and 49 of them don't hear anything ever from you in return for that application. Those 49 people are three or four times more likely to never reapply to your company, even if you get successful and become a big company, they have a bad taste in their mouth and they will not apply to your company and they will tell people I mean, I applied to those guys and they never even come back to me. That's reputation in a really important market, the candidate market. Now, if you were to create a template that just said hey, thank you for your application, your experience looks really good. Unfortunately, I don't think it aligns with the job we have right now and I wouldn't want to put you in a situation where you weren't going to be successful. But I would love to keep your information here on file and reach out. If something more suitable does come open in our company, all the best. What's that person going to say now? Chris: You're definitely going to feel like you cared enough to reach back out. Corey: And you'll be one of the one in a hundred that took the time to reach back out. I can tell you this I've interviewed people and I believe in the good, the bad and the ugly. So throughout the interview process I might come to the conclusion they're not the right fit, and I'll have a conversation with them at the conclusion of our conversation and say here's where I land on this. I don't think this one's a fit, and here's why. You're obviously very good at what you do and I get that, but what we're looking for is really specific and I don't doubt you could figure it out. My challenge is we don't have time for you to figure it out and I would not want you to start a new role where the expectations are super high and you're disappointed and we're disappointed. I don't want to do that too. And man, I bet you 99% of people say you know, corey, that makes a lot of sense. Thank you for being honest with me. Then some of them and I might say 10% or less will follow up with this. I get it. I'm not right for me, but I have someone you should talk to. I've just told them they're not getting the job, but because I took the time to be honest and respectful and clear about why they say you sound like a good guy. Let me help you. Chris: That's amazing yeah. I can see how that would be right. So let's, talk a little bit about just what you're seeing out there in the job market. I mean, you know. Corey: I was talking a minute ago, you know, here we are, and you know, kind of starting a new year. Chris: What are some of the things you think employers should be looking for? And then maybe the other as a candidate, you know what kind of things. What should the expectations be Right, because I think a lot has changed even in the last 12 months about you know those two topics. Corey: Sure, a couple of things. The unemployment claims are going up slowly and they've been talking. I think we're supposed to be going into recession what for about 18, 24 months now. So if it's going to happen or not, it's still unknown. It feels like we're dipping a bit, but what's important to remember is, even in our current market, which feels a little softer than it was, there are still fewer people available than there are jobs open. And I think that number sits around like 0.7, 0.8 people per open job, really Okay. So we're going to be the thick of it and now that the people coming up in the system, there are fewer of them, right, Like we're past the baby boomers and there are just fewer people and there are more open jobs. So even if we get into a bit of a recession, there's never going to be that well, there's going to be so many people apply for this role that we'll just pick right. We are, for now, an imperfectity in a situation where it's a candidate driven market and they can be choosy. So that's something worth knowing. Chris: And just to kind of tag on that, I would have to believe that some of the flexibility and work remote has contributed to that as well. Correct? Corey: Yeah, so I'll touch on that in just a second. So we understand we have fewer people that are going to apply or we're going to be competing for people. If you're excited, I always tell my clients if we're excited about someone, I can promise you someone else's too, because they didn't just apply here. But that's one of the advantages using like a key hire, because we kind of go out and get people, even if they're not looking, and we can kind of get in the rear and have a conversation and engage with them. Chris: That makes sense. I mean it's a competitive. Corey: But if someone has decided to make a move, they're not just talking to you, and if they're good, more companies than yours will be excited about them. So speed matters right. It's the, I think, the stat is. Most candidates, when they start looking for or interviewing for jobs, are off the market in two weeks. So you have 10 business days to get it done. Chris: That's not a lot of time. Corey: But it can be done, right, when we do. That's part of the process that we have, because that's one of those key elements and landing that, those people you want. So then you touched on so we have fewer people and now we have these classifications of schedule that didn't exist what three years ago? Right, we have remote, we have hybrid and we have in-office schedules. Now, they always existed, but they were never prominent and they're the remote. People were told they weren't able. We can't afford to have you working at home, we're not set up for that. Then overnight was like hey, go work at home, we were set up for that. So, people, you we hear this right like, well, I've always wanted to do this and I was told I couldn't. And now the big companies are calling people back, they're starting to. So there's a movement back to the office. But there's also a movement amongst individuals and people out there saying, well, I don't need to go back to the office because I know there are other jobs out there that will let me work in the office, and so this is a conversation we have with our clients a lot. I think I had this with you guys. Chris: Thanks. Corey: It was about the. So if we have an in-office role, we need to target people that are, if argument's safe, in a 10 10 mile diameter from our office for make the commute, have the commute make sense. Now, if there are a hundred people in that diameter or radius or a diameter, right, that's the whole. So there are 100 people that can do our job in that diameter 10 10 mile diameter. There's only about 20 of them, 20% that are willing to come to the office. So we've taken our candidate pool and chiseled it at down to 20 out of 100. Now we have to have those 20 people. We have to a find them, be, make sure they have the skills we need and See, make sure they're even open to a new role. Right, 10 of those people are probably gonna say, no, I'm not even interested. Right now we're down to 10 people. If we move to a hybrid and I think I need to practice by saying there are two types of roles there's flexible and inflexible roles. So if I'm at a machine Turning a metal part, I can't do that remotely. That's not a flexible role, sure. But if I am in in accounting or an administrative function or sales, those are flexible and we can allow people to have that flexibility. So if we move to a hybrid role, we can expand that diameter a little bit, say to 20 miles, because if people only have to come to the office Two or three times a week, they might drive a little longer. But we also might increase our talent pool by 3x. Now we maybe have 300 people and we have 80% of 300 to draw from, because there's 20% of those are like I only want remote. But the people that are in office and the people that want hybrid will look at increases. Yeah, right, the interest correct. So now we're at 80% of 300. We're at 240 people versus the 20. Now if we go remote within the city say look at, I want someone remote, but I need them here in Houston because I want to bring him into the office once a month or twice a month to do whatever. Now we have, you know, 10x. Now we have a thousand people and the people that like being in the office won't be interested. So we have 80% of a thousand people. Yeah, so it's just a. For me it's working, the probabilities of it and whatever you choose to do is fine, man, I think what I'm hearing a lot about hybrid is. People are saying things to me like this a lot more. I'm happy to go in the office, but I want the flexibility if I have a doctor's appointment, just to work from home that day, so I can go to the doctor and come back and I don't have to drive all the way in the office and all the way back. So people are looking for Hybrid is starting to take on a bit of a different. If I could get a like one day or two days from home, or have the option like, if I have stuff going on, if my son has an early game on Thursday, if I could just work from home that day so I can just like get my work done, not be stuck in traffic, and then go see my child's game or performance or whatever. Chris: Up to 30 minutes for game time instead of hour and a half. Corey: Right, because they can you. So I think Hybrid, the definition of hybrid, is shifting and changing a bit. I am hearing more people saying yeah, man, I just want to. I'd really like to be back in an office. I like being around people. This remote thing just doesn't work for me. It's not going to go back to the way it was, but I think it's going to normalize here a bit. Chris: So let me ask you this from a company standpoint. I think from what I've experienced talking to friends, you know, read it in Wall Street Journal or whatever the companies are saying. Look at this, the fully remote Maybe or hybrid, that bias towards remote is a roadie. Our company culture because our people aren't too bad, there is much. What are you hearing from employees and the candidates about their view of Building culture or fostering culture and the need to either be any office some versus Really think it can be done fully remote. What's the kind of the censure getting in the candidate pool on that topic? Corey: I think it's easier to do in a smaller company. You know, I have a client now. They're 20 people, but every morning they have. They're all remote, but every morning they have a video call and they talk about who's working on one and what, who needs to interact with who and so. So they do it that way. In a larger company, I see it being harder. Chris: Yeah, it's just yeah, and there's just. Corey: There's more moving pieces and more departments and more people that have to get connected. And trying to get 500 people on a video call every morning would be hard, sure, but I do think and it might boil down to the person, chris, you know, some people are at home and they just do what they do and those I always say these employees, the people that just want to go work in a in their office and close their door and say, yeah, please don't bother me, I don't want to talk to anyone. They're super valuable people. If you have them in the right role and if they're working remotely, that might be just fine. But then there are some more Dynamic roles in the company where you do need that interaction and I think that's where that hybrid piece is Important to say, hey, we do need you in the office and I know your company culture here is really built around human interaction and keeping people close together. And, yeah, it's important to be able to walk down the hall and knock on someone's door. So I think that's where the hybrid model if you can pull someone in instead of a fully remote to a hybrid and kind of transition them there, you're gonna get that kind of dynamic Interaction and you're gonna foster culture more and people get to know each other and kind of on a personal level as well as a professional level. But it's, I don't know that there's a One answer, because every company needs to figure out Every company's per. I always say every role is perfect for someone. We just need to be honest and really define what that role is and what the company is and what the culture is, and then find the Person who's looking and craving that Right, and so I think a lot of what a lot of people will do is Find people and tell them what they want to hear and then when they get in the door they kind of think well, maybe I don't know if they told me the truth here. Yeah and then they start that relationship off a little bumpy. But if you're clear, like you guys are, about what you are and who you are and how you, you see the people interacting. People are either gonna love that or they're not. But that's all you want, right? The bet getting a hell yeah or a hell no, that's, that's a gift. There's value in both, right. I mean hell knows as valuable as a hell yeah, because you're not gonna waste any more time if you put it up front, say this is who we are and what we do, and if that excites you, let's talk more. If that doesn't sound exciting to you, probably not, for you. Chris: There's another place. It's right for you. Corey: Yeah, for sure there is. That's what I told you all the time. That make you bad person. Chris: There's just no different places they're gonna fit yeah that's exactly it. Corey: I think we do get a little people get a little hurt or whatever when they get rejected by someone, but sometimes that's Best thing that could to get happen. Chris: Yeah, any. You just thinking about the business owner out there, make you know, with the pressure of making some hires or filling some roles, trends, that you're seeing any pointers you might add you know, provide, say you know if you're gonna, if you find yourself in the need, you know hiring. Here's some things to focus on to make sure you get it right. Corey: Yeah, so what? The business owners I deal with? And I love working with business owners as they're always passionate, smart, driven people and they're all different personalities and I love speaking with them and learning from them. That's kind of that the secret behind why I started key hire to? Because Hang out with business owners is a really Awesome experience, just to hear how they think and what they do and why they do it. I love hearing the stories and I love be able to take those stories out and tell people about them, the if I could give them a piece of advice and I'm speaking to small business owners here right. But so we're always looking to bring people in with capacity. So don't hire for current needs. Hire for what you need five years from now. That's number one, right? Remember the phrase we're not hiring you to run our business currently. We're looking for you to run our business 5x Currently doing with our current revenues. So if you do that, you'll redefine what good looks like. And I have a client in Birmingham. His name is Edgar and he runs one of the coolest food manufacturing businesses in Birmingham. I worked with him four years ago and he wanted he had a role within his business that he thought he needed and after we did our diligence and spending time, I flew it to Birmingham, spent two days with them. I said I think you're too small on this. You know, we got a dream bigger and so we redefined the role. We found an amazing guy and put him in there and Edgar loves him and he's now his director of operations. Right, he wanted him to do this kind of smaller role, but I said no, we need to hire someone with the capacity to take over your whole operation. So I'm working with Edgar again, but I asked them this question. I said when we talked four years ago, you thought you had a really great team and then we put this new person in there, a professional, someone who had more experience than you needed today and was a true professional at what they do. Did that change your definition of what a good employee looks like? And he didn't even hesitate. He said absolutely, and I could see it in them. The way he viewed his hiring was different. The people he had hired since we worked together were Different. They were. They were just bigger, better, more capacity. They had that level of professionalism. And I guess what I want to stress is you have to grow your business a certain way, right. You hire your friends, your relatives, your neighbors your relatives are your neighbors and you hire a team that you hope can get it done. And if you're successful here's the paradox if you're successful, your business will outgrow the ability of all the people how who helped you get where you want to go. That sucks, because now you want to grow and all the people that helped you get to this level of success Don't have the jam, they don't have the capacity, they don't have the experience, the draw upon To help you get to the next level. And it's a horrible position for a business owner to be in it. And I've said to them all. I said the hardest. I don't care how long you've had your business and what you've gone through. The hardest decision you will ever have to make is looking across the table from someone who helped you get where you are today and telling them Thank you for everything you've done, but I don't think you can get me where I want to go from here. Chris: Yeah, it's. I've seen it happen time and time again Company out grows their capacity. Corey: Yeah, they just, and they're not. They're great people doing the best job they can. They just don't have. You know, the busiest business They've ever worked in is your business today. The business business they will ever work in is your business tomorrow, and they don't have anything beyond that to say, oh, this process is broken, or here's where our constraints are, or here's what we need to change. When your only input becomes ours, you've run into that wall where you think, okay, we need to upgrade process procedure, we need to include automation if people don't understand how to do. That's kind of your real limiting factor, that's your biggest constraint. So if I were to give business owners advice, it's that right, understand what 2.0 looks like in terms of your talent and capacity and experience. And I never advocate for like abandoning those people who got you where you are. You have to treat them well, but there will become a point where they could turn into a constraint to your growth and I've had lots and lots. I mean that's the other part of what we do, right, we sit with business owners and we walk them through these, like how to have these conversations with someone, and we can help them leave the company gracefully. We can reposition them within the company. There's lots of things we can do, but we always want to make sure we're treating them with respect, because they've probably given you blood, sweat and tears to get where you are and you just don't want to. I don't think I've ever come across a business owner who's like yeah, I just need to get them out of here. They're like it tears them up. It's a hard decision to make. Chris: Yeah, no, I can see that. That is great advice, though, for anyone that's out there running a business about to start one that you got to you know. There's another analogy and you're a hockey guy, I'm not, but I've told us before it's kind of the same to business. Is you look to where the keep your eyes on, where the pucks going not? Corey: where it is right. Chris: That's it, yeah, so they're always looking forward and what do you need to be doing to drive forward? And talent, your talent's the key to that. Corey: Well, I don't know how much time we have, but I can give you a kind of a quick walk through in terms of the kind of growth through a business that we've identified. Let's do that and then we'll wrap it up. Okay, so we've identified kind of five stages of growth through a business owner, and so the first one we've identified is what we call the paralyzed business owner. Right, it's a fire drill. They need instant relief. If you use a car analogy, the wheels have fallen off the machine. Right they're. If you look at their org chart, they're sitting in five, six, seven different seats because everyone's trying to do everything and they're at this. My only input is time, right. And so their mindset is I just need help. And they often think if I can just hire the right person, my life will be better. But obviously that's not how it works. But if you can hire the right person, you can take a little pressure out of the tire. Right, give them back a little time. You know, maybe they can have one dinner at home with the family versus zero, and then from there, from this kind of paralyzed state, they move. Then they move into the unsure state. So you put a really good professional person in the business, whether it's operations or in the administration or in the sales department, and they go oh, that's what good looks like, this person's really helping me. So they transition into this unsure and they start thinking, well, what else could I do? I know I have other problems in the business, but I don't know what they are right. So we call this the wobbly wheel. Now the car is kind of it's. They're on the road but they're wobbling down the road right. And so they know they have some constraints in their business, but they're not at the point yet where they can put their finger on and say that's a problem. So then you put kind of another professional in there to kind of take a little more pressure out of their tire, and they go oh, now they have a little more time to focus on important things. They have some professionals, some transformational talent in key places. So now they transition and this is a big transition where they go into the curious owner where else can I make upgrades in my business? And this is where they start looking. Now they can say I think this leader is a problem. You know, I've expected. I've asked them to, told them here are some deliverables. I need them done by this timeline. They're missing them. I think that is a problem there. So they're starting to now understand where the problems are. And this is where we say you know, you have a flat tire right. You just need to put some air in that tire and you can get back up on the road. And then they transition into a growing company. So now we're kind of putting professional, transformational talent in key roles and now they're at the point where they move to a growing company where you know, before they were paralyzed, then they were kind of walking, and now they're kind of in a growing like. They're moving forward, they're confident in their team. And growing company is now we're adding new talent. I need new layers, new levels, new roles we never thought about. So we're creating a lot of new roles and we're really kind of bolstering the company with the talent and the capacity and experience they need to continue growth. And then the final transition is they become strategic. That's just like we know exactly what we need, just start filling in the spots and let's roll right. So that's kind of the progression we take our people through and that how we identify where people are and that kind of okay. Chris: Yeah, I love it. Yeah, it's a great, almost visual, as you, you know, describe it and walk through it right. Corey: And so if you do the wheels right, so the curious person has the flat tire, so you go from wheels off the machine to a wobbly wheel to a maybe a flat tire. And then the growing guys like we just upgraded the wheels, gave them low profile, new rims, the whole deal right. And then it's strategic, is like we're adding wheels on the car, on the machine, because it's just flying down the road. Chris: Awesome, yeah well, court, thank you for coming on and sharing this. Let's let's talk a little bit on the personal side, sure? What was your first job? My? Corey: first job was a dishwasher at a restaurant called Casey's Roadhouse in Oshawa, ontario all right. Yeah, I started literally in hospitality that was probably why I stayed with it, because when I was 14 I was washing dishes. The unintended consequences of that job is I met two guys that I went to school with. That I didn't really know very well actually, I didn't go to school with them at that time. I was, I think I was, maybe I did. I didn't know them very well, but you know, fast forward 40 years later and one of them still a good friend of mine and I was able to hang it with them last summer and so made some lasting friendships out of that very. I mean, it was a horrible job, right the right of all the service coming in, all the cool people like you're 14 and there's all these 18, 19, 20, 21 year old cool kids coming in, throwing slop at you and yelling at you and making your life miserable. But yeah, built character. Chris: I guess yeah, okay, so you know from Canada, newer to Texas, but do you prefer Tex-Mex or barbecue? Oh man, that's tough okay, tex-mex yeah any books you read you or read recently you recommend. Corey: I just listened to the energy bus that was recommended by Bart Pitcock in my Vistage group. Okay, it's kind of a fable that's along the lines of the home man who sold his Ferrari oh, mongu sold his Ferrari by Robin Sharma. It's just kind of this fable about kind of changing your mindset, which is cool, and I have barbarians at the gate sitting on my desk right now, which I'm about to get into. Chris: Okay, a little holiday reading well again, corey, I really appreciate your time. I think what you're doing at Keiher is great. I certainly appreciate the relationship and the friendship yeah, I mean thanks for having me on. Corey: I think you guys are doing a great job too. I love this company and can't say enough nice things about the way you run your business. You guys are clear on what you do, you're in a great organization and I'm super happy to be helping you. Oh, thank you. We appreciate it. Take care, thank you.

Giant Robots Smashing Into Other Giant Robots
thoughtbot's Incubator Program Mini Season 3 - Episode 06: Goodz with Mike Rosenthal and Chris Cerrito

Giant Robots Smashing Into Other Giant Robots

Play Episode Listen Later Jan 9, 2024 26:27


If you missed the first and second episodes with thoughtbot Incubator Program partcipants and founders Mike Rosenthal and Chris Cerrito of Goodz, you can listen to the first episode (https://podcast.thoughtbot.com/s3e2incubatorgoodz) and the second episode (https://podcast.thoughtbot.com/s3e4incubatorgoodz) to catch up! Lindsey Christensen, head of marketing at thoughtbot is joined by Mike Rosenthal and Chris Cerrito, co-founders of the startup Goodz, and Danny Kim, Senior Product Manager at thoughtbot. Mike and Chris discuss the progress of Goodz, focusing on the recent intense weeks they've had. Goodz, a startup merging the digital and physical worlds of music, has stayed on course with its initial concept. Mike details their approach to Thanksgiving and the launch of their e-commerce experiment. He shares insights from recent user interviews, which have influenced their approach and understanding of their target audience. When the discussion turns to the challenges of launching and maintaining their e-commerce platform, Mike and Chris talk about learning from analytics, marketing strategies, and the importance of understanding consumer behavior. They discuss the challenges in balancing short-term and long-term goals, and the upcoming fundraising efforts. Transcript: LINDSEY: Thanks for being here. My name's Lindsey. I head up marketing at thoughtbot. If you haven't joined one of these before, we are checking in with two of the founders who are going through the thoughtbot Startup Incubator to learn how it's going, what's new, what challenges they're hitting, and what they're learning along the way. If you're not familiar with thoughtbot, we're a product design and development consultancy, and we hope your team and your product become a success. And one way we do that is through our startup incubator. So, today, we are joined by our co-founders, Mike Rosenthal and Chris Cerrito, Co-Founders of the startup Goodz. And we also have another special guest today, Danny Kim, from the thoughtbot side, Senior Product Manager at thoughtbot. So, I think, to start off, we'll head over to the new face, the new voice that we've got with us today. Danny, tell us a little bit about your role at thoughtbot and, specifically, the incubator. DANNY: Yeah, sure. First of all, thanks for having me on, and thanks for letting me join in on all the fun. I'm one of the product managers at thoughtbot. I typically work for the Lift-Off team. We usually work with companies that are looking to, like, go into market with their first version MVP. They might have a product that exists and that they're already kind of doing well with, and they kind of want to jump into a new segment. We'll typically work with companies like that to kind of get them kicked off the ground. But it's been really awesome being part of the incubator program. It's my first time in helping with the market validation side. Definitely also, like, learning a lot from this experience [laughs] for myself. Coming at it specifically from a PM perspective, there's, like, so much variation usually in product management across the industry, depending on, like, what stage of the product that you're working in. And so, I'm definitely feeling my fair share of impostor syndrome here. But it's been really fun to stretch my brand and, like, approach problems from, like, a completely different perspective and also using different tools. But, you know, working with Mike and Chris makes it so much easier because they really make it feel like you're part of their team, and so that definitely goes a long way. LINDSEY: It just goes to show everyone gets impostor syndrome sometimes [laughter], even senior product managers at thoughtbot [laughter]. Thanks for that intro. It's, you know, the thoughtbot team learns along the way, too, you know, especially if usually you're focused on a different stage of product development. Mike, it's been only three weeks or a very long three weeks since last we checked in with you, kind of forever in startup time. So, I think the last time, we were just getting to know you two. And you were walking us through the concept, this merging of the digital and physical world of music, and how we interact with music keepsakes or merchandise. How's my pitch? MIKE: Good. Great. You're killing it. [laughter] LINDSEY: And has anything major changed to that concept in the last three weeks? MIKE: No. I mean, I can't believe it's only been three weeks. It feels like it's been a long time since we last talked. It's been an intense three weeks, for sure. No, it's been going really well. I mean, we launched all sorts of stuff. I'm trying to think of anything that's sort of fundamentally changed in terms of the plan itself or kind of our, yeah, what we've been working on. And I think we've pretty much stayed the course to sort of get to where we are now. But it's been really intensive. I think also having sort of Thanksgiving in there, and we were kind of pushing to get something live right before the Thanksgiving break. And so, that week just felt, I mean, I was just dead by, you know, like, Thursday of Thanksgiving. I think we all were. So, it's been intense, I would say, is the short answer. And I'm happy, yeah, to get into kind of where things are at. But big picture, it's been an intense three weeks. LINDSEY: That's cool. And when we talked, you were, you know, definitely getting into research and user interviews. Have those influenced any, you know, changes along the way in the plan? MIKE: Yeah. They've been really helpful. You know, we'd never really done that before in any of the sort of past projects that we've worked on together. And so, I think just being able to, you know, read through some of those scripts and then sit through some of the interviews and just kind of hearing people's honest assessment of some things has been really interesting. I'm trying to think if it's materially affected anything. I guess, you know, at first, we were, like, we kind of had some assumptions around, okay, let's try to find, like...adult gift-givers sounds like the wrong thing, adults who give gifts as, like, a persona. The idea that, like, you know, maybe you gift your siblings gifts, and then maybe this could be a good gift idea. And I think, you know, we had a hard time kind of finding people to talk in an interesting way about that. And I think we've kind of realized it's kind of a hard persona to kind of chop up and talk about, right, Chris? I don't know [crosstalk 04:55] CHRIS: Well, it also seemed to, from my understanding of it, it seemed to, like, genuinely stress out the people who were being interviewed... MIKE: [laughs] CHRIS: Because it's kind of about a stressful topic [inaudible 05:03], you know, and, like, especially -- LINDSEY: Why? [laughs] CHRIS: Well, I think, I don't know, now I'm making assumptions. Maybe because we're close to the holiday season, and that's a topic in the back of everybody's mind. But yeah, Danny, would you disagree with that? Those folks, from what we heard, seemed like they were the most difficult to kind of extract answers from. But then, if the subject changed and we treated them as a different persona, several of those interviews proved to be quite fruitful. So, it's just really interesting. DANNY: Yeah. It really started, like, you kind of try to get some answers out of people, and there's, like, some level of people trying to please you to some extent. That's just, like, naturally, how it starts. And you just, like, keep trying to drill into the answers. And you just keep asking people like, "So, what kind of gifts do you give?" And they're just like, "Oh my goodness, like, I haven't thought about buying gifts for my sister in [laughs], like, you know, in forever. And now, like [laughs], I don't know where to go." And they get, like, pretty stressed out about it. But then we just kind of started shifting into like, "All right, cool, never mind about that. Like, do you like listening to music?" And they're like, "Yes." And then it just kind of explodes from there. And they're like, "This last concert that I went to..." and all of this stuff. And it was much more fruitful kind of leaning more towards that, actually, yeah. LINDSEY: That's fascinating. I guess that speaks to, especially at this stage and the speed and the amount of interviews you're doing, the need for being, like, really agile in those interviews, and then, like, really quickly applying what you're learning to making the next one even more valuable. MIKE: Yeah. And I think, you know, like, we launched just a little sort of website experiment or, like, an e-commerce experiment right before Thanksgiving. And I think now, you know, we're able to sort of take some of those learnings from those interviews and apply them to both sort of our ad copy itself but also just different landing pages in different language on the different kind of versions of the site and see if we can find some resonance with some of these audience groups. So, it's been interesting. LINDSEY: Are you still trying to figure out who that early adopter audience is, who that niche persona is? MIKE: I think we -- CHRIS: Yes, we are. I think we have a good idea of who it is. And I think right now we're just trying to figure out really how to reach those people. That, I think, is the biggest challenge right now for us. MIKE: Yeah. With the e-commerce experiment it was sort of a very specific niche thing that is a little bit adjacent to what I think we want to be doing longer term with Goodz. And so, it's weird. It's like, we're in a place we're like, oh, we really want to find the people that want this thing. But also, this thing isn't necessarily the thing that we think we're going to make longer term, so let's not worry too hard about finding them. You know what I mean? It's been an interesting sort of back and forth with that. CHRIS: From the interviews that we conducted, you know, we identified three key personas. Most of them have come up, but I'll just relist them. There's the sibling gift giver. There was the merch buyers; these are people who go to concerts and buy merchandise, you know, T-shirts, albums, records, things along those lines to support the artists that they love. And then the final one that was identified we gave the title of the 'Proud Playlister'. And these are people who are really into their digital media platforms, love making playlists, and love sharing those playlists with their friends. And that, I would say, the proud playlister is really the one that we have focused on in terms of the storefront that we launched, like, the product is pretty much specifically for them. But the lessons that we're learning while making this product and trying to get this into the hands of the proud playlisters will feed into kind of the merch buyers. MIKE: Yeah. And I think that, you know, it's funny, like, this week is kind of a poignant week for this, right? Because it's the week that Spotify Wrapped launched, right? So, it's like, in the course of any given year, it's probably, like, the one week of the year that lots and lots and lots of people are thinking about playlists all of a sudden, so trying a little bit to see if we can ride that wave or just kind of dovetail with that a bit, too. LINDSEY: Absolutely. And do you want to give just, like, the really quick reminder of what the product experience is like? MIKE: Oh yeah [laughs], good call. CHRIS: This is a prototype of it. It's called the Goodz Mixtape. Basically, the idea is that you purchase one of these from us. You give us a playlist URL. We program that URL onto the NFC chip that's embedded in the Good itself. And then when you scan this Good, that playlist will come up. So, it's a really great way of you make a playlist for somebody, and you want to gift it to them; this is a great way to do that. You have a special playlist, maybe between you and a friend or you and a partner. This is a good way to commemorate that playlist, turn it into a physical thing, give that digital file value and presence in the physical world. LINDSEY: Great. Okay, so you casually mentioned this launch of an e-commerce store that happened last week. MIKE: It didn't feel casual. LINDSEY: Yeah. Why [laughter]...[inaudible 09:45] real casual. Why did you launch it? How's it going? MIKE: I don't know. Why did we launch it? I mean, well, we wanted to be able to test some assumptions. I think, you know, we wanted to get the brand out there a little bit, get our website out there, kind of introduce the concept. You know, this is a very...not that we've invented this product category, but it is a pretty obscure product category, right? And so, there's a lot of sort of consumer education that I think that has to go on for people to wrap their heads around this and why they'd want this. So, I think we wanted to start that process a little bit correctly, sort of in advance of a larger launch next year, and see if we could find some early community around this. You know, if we can find those core people who just absolutely love this, and connect with it, and go wild around it, then those are the people that we're going to be able to get a ton of information from and build for that persona, right? It's like, cool, these are the people who love this. Let's build more for them and go find other people like this. So, I think, for us, it was that. And then, honestly, it was also just, you know, let's test our manufacturing and fulfillment and logistics capabilities, right? I mean, this is...as much as we are a B2B, you know, SaaS platform or that's what we envision the future of Goodz being, there is a physical component of this. And, you know, we do have that part basically done at this point. But we just, you know, what is it like to order 1,000 of these? What is it like to put these in the mail to people and, you know, actually take orders? And just some of that processing because we do envision a more wholesale future where we're doing, you know, thousands or tens of thousands of this at a time. And so, I think we just want to button up and do some dry runs before we get to those kinds of numbers. CHRIS: I think it also it's important to remember that we are talking in startup time. And while this last week seems like an eternity, it's been a week [laughs] that we've had this in place. So, we're just starting to learn these things, and we plan on continuing to do so. MIKE: Yeah. But I think we thought that getting a website up would be a good way to just start kind of testing everything more. LINDSEY: Great. Danny, what went into deciding what would be in this first version of the site and the e-commerce offering? DANNY: I mean, a lot of it was kind of mostly driven by Chris and Mike. They kind of had a vision and an idea of what they wanted to sell. Obviously, from the user interviews, we were starting to hone in a little bit more and, like, we had some assumptions going into it. I think we ultimately did kind of feel like, yeah, I think, like, the playlisters seem to be, like, the target market. But just hearing it more and hearing more excitement from them was definitely just kind of like, yeah, I think we can double down on this piece. But, ultimately, like, in terms of launching the e-commerce platform, and the storefront, and the website, like, just literally looking at the user journey and being like, how does a user get from getting onto a site, like, as soon as they land there to, like, finishing a purchase? And what points do they need? What are the key things that they need to think through and typically will run into? And a lot of it is just kind of reflecting on our own personal buyer behavior. And, also, as we were getting closer to the launch, starting to work through some of those assumptions about buyer behavior. As we got there, we obviously had some prototypes. We had some screenshots that we were already working with. Like, the design team was already starting to build out some of the site. And so, we would just kind of show it to them, show it to our users, and just be like, hey, like, how do you expect to purchase this? Like, what's the next step that you expect to take? And we'd just kind of, like, continue to iterate on that piece. And so... LINDSEY: Okay. So you were, before launching, even showing some of those mockups and starting to incorporate them in the user interviews. DANNY: Yeah, yeah. I mean, we tried to get it in there in front of them as early as possible, partially because, like, at some point in the user interviews, like, you're mostly just trying to first understand, like, who are our target customers? Who are these people? And we have an assumption of or an idea of who we think they are. But really, like, once you start talking to people, you kind of are, like, okay, like, this thing that I thought maybe it wasn't so accurate, or, like, the way that they're kind of talking about these products doesn't 100% match what I originally walked into this, you know, experiment with. And so, we, like, start to hone in on that. But after a certain point, you kind of get that idea and now you're just like, okay, you seem to be, like, the right person to talk to. And so, if I were to show you this thing, do you get it, right? Like, do you understand what's happening? Like, how to use this thing, what this product even does. And then also, like, does the checkout experience feel intuitive for you? Is it as simple as, like, I just want to buy a T-shirt? So, like, I'm just going to go by the T-shirt, pick a size, and, you know, move on with my life. Can we make it as seamless as that? LINDSEY: And so, you mentioned it's only been a week since it's been live. Have you been able to learn anything from it yet? And how are you trying to drive people to it today? MIKE: Yeah, I think we learned that sales is hard [laughs] and slow, and it takes some time. But it's good, and we're learning a lot. I mean, it's been a while since I've really dug deep in, like, the analytics and marketing kind of metrics. And so, we've got all the Google Tag Manager stuff, you know, hooked up and just, you know, connecting with just exploring, honestly, like the TikTok advertising platform, and the YouTube Pre-Rolls, and Shorts. And, like, a lot of stuff that I actually, since the last time I was heavily involved in this stuff, is just totally new and different. And so, it's been super interesting to see the funnel and sort of see where people are getting in the site, where people are dropping off. You know, we had an interesting conversation in our thoughtbot sync yesterday or the day before, where we were seeing how, you know, we're getting lots of people to the front page and, actually, a good number of people to the product page, and, actually, like, you know, not the worst number of people to the cart. But then you were seeing really high cart abandonment rates. And then, you know, when you start Googling, and you're like, oh, actually, everybody sees very high cart abandonment rates; that's just a thing. But we were seeing, like, the people were viewing their cart seven or eight times, and they were on there sort of five times as long as they were on any other page. And it's this problem that I think Danny is talking about where, you know, we need to actually get a playlist URL. This gets into the minutiae of what we're building, but basically like, we need to get them to give us a playlist URL in order to check out, right? And so, you sort of have to, like, put yourself back in the mind of someone who's scrolling on Instagram, and they see this as an ad, and they click it, and they're like, oh, that thing was cool. Sure, I will buy one of those. And then it's like, no, actually, you need to, you know, leave this, go into a different app, find a play...like, it suddenly just puts a lot of the mental strain. But it's a lot. It's a cognitive load, greater than, as you said, just buying a T-shirt and telling what size you want. So, thinking through ways to really trim that down, shore up the amount of time people are spending on a cart. All that stuff has been fascinating. And then just, like, the different demographic kind of work that we're using, all the social ads platforms to kind of identify has been really interesting. It's still early. But, actually, like, Chris and I were just noticing...we were just talking right before this call. Like, we're actually starting to get, just in the last 12 hours, a bunch more, a bunch, but more people signing up to our email newsletter, probably in the last 12 hours that we have in the whole of last week. Yeah, I don't know, just even that sort of learning, it's like, oh, do people just need time with a thing, or they come back and they think about it? CHRIS: Yeah. Could these people be working on their playlists? That's a question that I have. MIKE: [chuckles] Yeah, me too. CHRIS: It's like, you know, I'm making a playlist to drop into this product. It's really interesting. And I think it gives insight to kind of, you know, how personal this product could be, that this is something that takes effort on the part of the consumer because they're making something to give or to keep for themselves, which is, I think, really interesting but definitely hard, too. DANNY: Yeah. And I also want to also clarify, like, Chris just kind of said it, like, especially for viewers and listeners, like, that's something that we've been hearing a lot from user interviews, too, right? Like, the language that they're using is, like, this is a thing that I care about. Like it's a representation of who I am. It's a representation of, like, the relationship that I have with this person that I'm going to be giving, you know, this gift to or this playlist to, specifically, like, people who feel, like, really passionate about these things. And, I mean, like, I did, too. Like, when I was first trying to, like, date, my wife, like, I spent, like, hours, hours trying to pick the coolest songs that I thought, you know, were like, oh, like, she's going to think I'm so cool because, like, I listen to these, like, super low-key indie rock bands, and, like, you know, so many more hours than she probably spent listening to it. But that's [laughs] kind of, like, honestly, what we heard a lot in a lot of these interviews, so... LINDSEY: Yeah, same. No, totally resonates. And I also went to the site this week, and I was like, oh damn, this is cool. Like, and immediately it was like, oh, you know, I've got these three, you know, music friends that we go to shows together. I'm like, oh, this would be so cool to get them, you know, playlists of, like, music we've seen together. So, you might see me in the cart. I won't abandon it. MIKE: Please. I would love that. CHRIS: Don't think about it too long if you could -- [laughter]. LINDSEY: I won't. I won't. CHRIS: I mean, I would say I'm really excited about having the site not only as a vehicle for selling some of these things but also as a vehicle for just honing our message. It's like another tool that we have in our arsenal. During the user interviews themselves, we were talking in abstract terms, and now we have something concrete that we can bounce off people, which is, I think, going to be a huge boon to our toolset as we continue to refine and define this product. MIKE: Yeah, that's a good point. LINDSEY: Yeah. You mentioned that they're signing up for, like, email updates. Do you have something you're sending out? Or are you kind of just creating a list? Totally fine, just building a list. MIKE: [laughs] No. CHRIS: It's a picture of Mike and I giving a big thumbs up. That's, yeah. [laughter] MIKE: No. But maybe...that was the thing; I was like, oh great, they're signing up. And I was like, gosh, they're signing up. Okay [laughter], now we got to write something. But we will. LINDSEY: Tips to making your playlist [crosstalk 19:11] playing your playlist -- MIKE: Yeah [crosstalk 19:13]. CHRIS: Right. And then also...tips to making your playlists. Also, we're advancing on the collectible side of things, too. We are, hopefully, going to have two pilot programs in place, one with a major label and one with a major artist. And we're really excited about that. LINDSEY: Okay. That's cool. I assume you can't tell us very much. What can you tell us? MIKE: Yeah. We won't mention names [chuckles] in case it just goes away, as these things sometimes do. But yeah, there's a great band who's super excited about these, been around for a long time, some good name recognition, and a very loyal fan base. They want to do sort of a collection of these. I think maybe we showed the little...I can't remember if we showed the little crates that we make or not, but basically, [inaudible 19:52] LINDSEY: The last time, yeah. MIKE: So, they want to sell online a package that's, you know, five or six Goodz in a crate, which I think will be cool and a great sort of sales experiment. And then there's a couple of artists that we're going to do an experiment with that's through their label that's more about tour...basically, giving things away on tour. So, they're going to do some giveaway fan club street team-style experiments with some of these on the road. So, first, it's ideal, provided both those things happen, because we definitely want to be exploring on the road and online stuff. And so, this kind of lets us do both at once and get some real learnings as to kind of how people...because we still don't know. We haven't really put these in people's hands yet. And it's just, like, are people scanning these a lot? Are they not? Is this sort of an object that's sitting on their shelf? Is it...yeah, it's just, like, there's so much we're going to learn once we get these into people's hands. LINDSEY: Do you have the infrastructure to sort of see how many times the cards are scanned? CHRIS: Mm-hmm. Yep, we do. MIKE: Yeah. So, we can see how many times each one is scanned, where they're scanned, that sort of thing. CHRIS: Kind of our next step, and something we were just talking about today with the thoughtbot team, is building out kind of what the backend will be for this, both for users and also for labels and artists. That it will allow them to go in and post updates to the Goodz, to allow them to use these for promotion as people, you know, scan into them to give them links to other sites related to the artists that they might be interested in before they move on to the actual musical playlist. So, that's kind of the next step for us. And knowing how users use these collectibles, both the kind of consumer Good and the artist collectibles that we were just talking about, will help inform how we build that platform. LINDSEY: Very cool. And right now, the online store itself that's built in Shopify? MIKE: Yeah. The homepage is Webflow that Kevin from the thoughtbot team really spearheaded in building for us. And then, yeah, the e-commerce is Shopify. LINDSEY: Y'all have been busy. MIKE: [laughs] LINDSEY: Is there anything else maybe that I haven't asked about yet that we should touch on in terms of updates or things going on with the product? MIKE: I don't know. I don't think so. I think, like Chris said, I mean, we're just...like, now that the site has kind of stood up and we're really switched over to kind of marketing and advertising on that, definitely digging into the backend of this kind of SaaS platform that's going to probably be a big focus for the rest of the, you know, the program, to be honest. Yeah, just some other things we can do on the next front that could eventually build into the backend that I think can be interesting. No, I guess [laughs] the short answer is no, nothing, like, substantial. Those are the big [crosstalk 22:26] LINDSEY: Yeah. Well, that was my next question, too, which is kind of like, what's next, or what's the next chunk of work? So, it's obviously lots more optimization and learning on the e-commerce platform, and then this other mega area, which is, you know, what does this look like as a SaaS solution? What's the vision? But also, where do we start? Which I'm sure, Danny, is a lot of work that you specialize in as far as, like, scoping how to approach these kinds of projects. DANNY: Yeah. And it's interesting because, I mean, we were just talking about this today. Like, part of it is, like, we can, like, really dig into, like, the e-commerce site and, like, really nailing it down to get it to the place where it's like, we're driving tons more traffic and also getting as low of a, like, cart abandonment rate as possible, right? But also, considering the fact that this is in the future, like, large-scale vision. And there's, like, also, like, we're starting to, I think, now iron out a lot of those, like, milestones where we're kind of like, okay, like, we got, like, a short-term vision, which is, like, the e-commerce site. We got a mid-term vision and a potential long-term vision. How do we validate this long-term vision while also still like, keeping this short-term vision moving forward? And, like, this mid-term vision is also going to, like, help potentially, either, like, steer us towards that long-term or maybe even, like, pivot us, like, into a completely different direction. So, like, where do you put your card, right? Like, how much energy and time do we put into, like, each of these areas? And that's kind of, like, the interesting part of this is starting to talk through that, starting to kind of prioritize, like, how we can maximize on our effort, like, our development and design effort so that things just kind of line up more naturally and organically for our future visioning, so... MIKE: Yeah. A lot of different things to juggle. I saw there was a question. Somebody asked what the URL is, but I don't seem to be able to [crosstalk 24:10]. LINDSEY: The same question as me. We got to drop the link for this thing. MIKE: Yeah, getthegoodz.com. CHRIS: That's G-O-O-D-Z. LINDSEY: Get in there, folks MIKE: Yeah, get [crosstalk 24:23]. LINDSEY: And let us know how it goes. MIKE: Yeah, please [laughs]. Any bugs? Let us know. Yeah. I think that those...yeah, I mean, it's a good point, Danny, in terms of juggling kind of the near-term and longer-term stuff. You know, it's a good kind of reminder our big focus, you know, in the new year is going to be fundraising, right? We're already talking to some investors and things like that. So, it's like, okay, yes, as you said, we could tweak the cart. We could tweak the e-commerce. Or, like, can we paint the big picture of what the longer-term version of this company is going to be in a way that makes it compelling for investment to come in so that there can be a long-term version of this company? And then we can build those things. So yeah, it's definitely a balance between the two. LINDSEY: Oh, also, just casual fundraising as well. [crosstalk 25:06] MIKE: Yeah, yeah. LINDSEY: [laughs] MIKE: But it's hard. It's like, you wake up in the morning. It's like, do I want to, like, write cold emails to investors? Or do I want to, like, look at Google Analytics and, like, tweak ad copy? That's actually more fun. So, yes. LINDSEY: Yeah, life of the founder, for sure. All right. So, that's getthegoodz (Goodz with a z) .com. Check it out. We'll tune in and see what happens with the e-commerce site, what happens with the SaaS planning the next time that we check in. But Chris, Mike, Danny, thank you so much for joining today and sharing what's been going on over the last few weeks: the good, the bad, the challenge, the cart abandonment. And, you know, best of luck to you over the next few weeks, and we'll be sure to check in and see how it's going. AD: Did you know thoughtbot has a referral program? If you introduce us to someone looking for a design or development partner, we will compensate you if they decide to work with us. More info on our website at: tbot.io/referral. Or you can email us at referrals@thoughtbot.com with any questions. Special Guests: Chris Cerrito and Mike Rosenthal.

Building Texas Business
Ep063: Decoding the Sports Industry with David Fletcher

Building Texas Business

Play Episode Listen Later Dec 20, 2023 31:05


In today's episode of Building Texas Business, join us for a fascinating discussion with our guest David Fletcher, General Manager of Lone Star Sports and Entertainment. David gives us exclusive insights into the sports business industry, highlighting the economic impact of major sporting events on Houston. We learn about LSSE's role in the city's sports landscape and the excitement for the upcoming Tax Act Texas Bowl. David also enlightens us on why Houston is a major sports hub, touching on upcoming events like the college football championship and the 2026 FIFA World Cup. Tune in for a thrilling exploration of the fast-paced world of sports business. SHOW HIGHLIGHTS Chris talks with David Fletcher, the General Manager of Longstar Sports and Entertainment, about the intricacies and realities of the sports business world. David describes the significant economic impact of major sporting events on the business community, highlighting their ability to draw in substantial revenue and tourism. We discuss the role of LSSE in the Houston sports scene and its involvement in exciting upcoming events like the Tax Act Texas Bowl. David addresses some common misconceptions about the sports industry, revealing the hard work, long hours, and sacrifices behind the scenes. We delve into what it means to be a good teammate in the sports industry, focusing on traits such as being coachable, ready, and positive. David shares insights on why Houston has become a hotspot for sports business, citing its prime location, diverse population, and robust infrastructure. We discuss the upcoming national college football playoff championship and the anticipation it's generating in Houston. David gives a preview of the 2026 FIFA World Cup, expressing his enthusiasm for the global event to be hosted in Houston. I explore personal topics with David, such as his first job experience, his preference for Tex-Mex over barbecue, and his dream 30-day sabbatical destination. David shares his passion for skiing in Park City, Utah, expressing gratitude for the support and involvement of the Houston community in their work. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS David Fletcher About David TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet David Fletcher, general manager of Longstar Sports and Entertainment. David shares his insights into the business of sports, as well as the economic impact major sporting events can have on the business community. David, I wanna welcome you to Building Texas Business. Thanks for coming today. David: It's great to be here, Chris. Appreciate the opportunity. Chris: So let everybody know, you're the general manager of what's called Longstar Sports and Entertainment here at Houston. Tell the audience a little bit about what that company is and kind of how it fits into the sports landscape here in Houston. David: Yeah, longstar Sports and Entertainment, or LSSE, as we try to call it with such a long name, is really the events production and management company at Houston, texans. So we are a primary outlet for event production, promotion and really a focus to our efforts to date around filling event dates at NRG Stadium. Most of what we do, chris, is in the sports space, although we have certainly done fair share of shows in the entertainment side, but college football, international soccer, rugby are all really big parts of what we do and inside of that we can do anything and everything that we need to do to make an event successful. We've promoted and negotiated and done our own events. We work with partners like ESPN or the Major League Soccer to host events at our building for them. We work with global brands like Manchester United, real Madrid or even Taylor Swift to bring events to our place in a variety of different ways. So really our focus is on bringing people together in Houston and we've done some other things over the years some investments and some events outside of NRG Stadium. But at our core we are a major part of making NRG Stadium one of the world class destinations for events and we're very proud of what we've been able to do over the last 21 years. Chris: That's what I love about kind of the focus at LSSC and the Texans for that matter is really a focus on doing things for the benefit and betterment of Houstonians. It seems to be kind of maybe a core focus. David: No question. I mean, look, at the end of the day, our organization is only focus on three things it's creating experiences, it's delivering incredible vowed partners and it's about doing great things for Houston. So, in that core capacity, major events, whether it be bringing Leon O Messi to play at NRG Stadium in an event like Copa America a few years ago I mentioned Taylor Swift we had a chance to host her in 2018, or Keddie Chesney or George Straits or Tim McGraw done shows with all of them over the years to the big time college football, like the Tax Act Texas Bowl that we host each and every year. Our focus is on really those three initiatives and I think they play into exactly what you said, which our organization has been all about, and the family the McNair family has been all about since day one. Chris: So, speaking of the Tax Act Texas Bowl, where we've got a match up right around the corner with Oklahoma State and Texas A&M excited about that and I would think that there is some excitement from those fan bases about being here at Houston. David: No question, our 18th year of hosting that college football postseason spectacular that happens each and every year at NRG Stadium. Last 10 years we've had the Big 12 in SEC and you mentioned it Texas A&M, who's obviously one of, if not, the biggest collegiate brand in this part of the world, going and taking on Oklahoma State, an old rival there from the Big 12 days and 20th ranked Oklahoma State Cowboys, I might add, who made it all the way to the Big 12 championship game this year and have the nation's best running back in Oli Gordon. A lot of things to be excited about on both fan bases. Texas A&M obviously a great brand, but had their struggles on the field relative to their expectations this year. A lot of transition, including bringing in a really exciting new coach and Mike Elko, and this is an opportunity for both of these teams, but particularly Texas A&M, to start their 2024 March to the championship this December 27th. Chris: Very good. So let's talk a little bit just about you and kind of how you got into the sports industry and you've been general manager now at LSE like 10 years. That's crazy because I can remember when you first took over the role. So 10 years goes by fast. David: It goes by real fast, chris. Look, for me sports has been an incredible part of my life, like many, since my early days of youth, I know as a kid. For me there wasn't a day that didn't go by literally a day that I didn't have to go to some practice or didn't get to go to some practice of some kind, played a lot of sports really important to my family growing up and ultimately developed a very strong passion for sport itself. As I got a little older I was in school at the University of Texas I realized that you could make a business out of it. You could create a life around the, not just playing on the field, and for me my playing days they definitely ended in high school, which is okay. I still get to this day, get to go out there and try and hack it with the best of them every once in a while, but I do it vicariously most of the time in working with my kids and coaching them and watching them grow. So for me, like I said, I knew sport was a big part of what I had a passion for when I graduated from UT. I had an opportunity to be to work for an NFL team in my hometown right here in Houston Texas. They didn't even have a name until a few weeks into my job, but that was the Houston Texans, and so coming out of UT and having the opportunity to be a part of building a professional team no less an NFL team from the ground up was something that I thought was really cool and I thought would be something that would help fuel that passion further, and it has. There's no question, of course, as a graduate coming out of college, many of us, myself included had bills to pay, and working as an intern at any sports team is not a great way to pay off those bills very quickly. But you know, I knew I had. I knew I had a goal in mind. I knew that I could make a business out of this if I really focused on making the most of the opportunities I had about keeping a positive attitude and really just taking every opportunity I could to grow, and I did that. I worked at the Texans during that first season, had an opportunity after that to get into a sales side where I did start making money working in media sales after leaving the team, spent a few years doing that for the University of Texas Athletics and then with the Houston Rockets, but I had a chance to return back to the team in 2010 and have been with the Texans in some way or shape or form ever since and that's been a lot of fun to really get to be in my hometown to work for the NFL team ups and downs included along the way, right, as we've had some great years and some not so great years. But going back to what I talked about earlier about being able to make an impact, particularly in my hometown, it's been an amazing opportunity for me and I still wake up every day and I know this is gonna sound really silly and I've grown a lot in my career, but we office at NRG Stadium and there are a lot of days where I walk in I'll hear the voice guy, david Brady, in my head going welcome to NRG Stadium. Chris: And it's just for me as I walk in the office. David: You know, it's a subtle reminder in my head that you know what. This is something pretty cool and this is something really special and been fortunate enough to be a part of a lot of things that have helped grow this community as a sports destination and then hopefully a lot more going forward. Chris: That's great. I mean it's a very unique position, unique opportunity. It relates to working for an NFL franchise. Right, there's only 32 franchises that you can work for, so let's talk again. So you work your way up and then you get this opportunity to move into leadership and I like to talk to guests, entrepreneurs, about leadership. So let's talk about that with you, kind of give us a little idea of your journey. Who were some of your mentors that you kind of molded your leadership style after? David: Well, I think mentors are so important, chris. They're so important to provide you you know reality, to provide you guidance, to provide you you know somebody who can ultimately be a resource, good and bad, in any situation. You know, for me it started with a good friend of ours and I still think about him all the time as Jamie Roots, you know, arguably one of the best in the business, president of the Texans for 20 plus years and spent spent really so much time, energy and effort in creating and ultimately growing the Texans brand, and so getting a chance to watch him and be a part of his team for almost a decade myself was something that you know, I've taken so much from. You know, the things that we focused on were about relationships, and that's really where it starts in any of these businesses is, you know, whether you're working with clients, teammates or employees and just trying to find ways to connect. You've got to be able to connect at all levels and build relationships with people, no matter what role they're playing in your business. So it's starting with relationships first. You know, I think, looking at how Lone Star has been approached I talked to Jamie about this a lot over the years Texans, so important and ingrained in the business of, or the fabric of, the Houston community. But what Lone Star has really helped do is expand the reach beyond just football and reach into what is already arguably the most diverse community in the country and bring them in to a place that they could celebrate, that the passions they have can create memories that last a lifetime and ultimately, yes, do business. You know, and so you know, lone Star helps us reach in. We've done, you know, 21 Mexican national team soccer events at our stadium. We've hosted Beyonce. We've had, you know, lsu take on Wisconsin or, you know, coming up, the national championship game for college football. Yes, there's some core elements that are consistent across every sport, every entertainment property, every football event that I just mentioned, but each of those tie people back to our business, they tie people into, or they bring people into, our community and they ultimately, you know, give us an opportunity to create even more momentum for the team and for Houston going forward. So, when I look at how we've approached that from a leadership perspective, you know it's really been thinking about how our business, my business, can impact people outside of what we do in the Texans. And with that, you know, like I said from the beginning, it starts with relationships. Chris: Hey, you hit the nail on the head because I think that's true. No matter what business you're in, if you're a one man shop or you're growing it to be bigger, it's all about relationships, like you said, with your external partners but more importantly with your internal teammates. So, talking on that subject a little bit, let's talk a little bit. I know you know you've built a team around you at LSSC to help put on and promote these events. What are some of the things you look for when you're going through that process? One maybe identify whether it's through the recruiting process or onboarding or, as they're there, in kind of the training to make sure you're making the best decision you can in building that team. And then maybe we'll talk about the other side is when you know maybe this wasn't the right fit, the harder decisions to make. David: Well, I think it starts. You know I mentioned it earlier, but to me there's really three core elements of being a good teammate, and I think these matter whether you're the intern or you're the leader of the organization. One be coachable right. Nobody that I have ever met, even the best in the business, know everything right, so be able to take advice, take criticism, learn from your mistakes, and that's something I think's really important. Two be ready, right. Be when opportunities exist, don't be afraid to raise your hand, don't be afraid to speak up, don't be afraid to go all in. You never know when an opportunity could be the best opportunity for you if you don't ask. So be coachable, be ready and then, from my perspective, just be positive, right. The attitude is the only thing that any of us can control, and my experience and my life has taught me that if you focus on the good, you have a lot better chance of getting there than if you focus on the bad. And that speaks to communication internally. That speaks to the way you approach how you position your business. It speaks to how you approach your competition right. Ultimately, at the end of the day, if you focus on the good, there's a better chance you're gonna get good. Chris: Like I couldn't agree more on that positive mindset, kind of staying positive, focus on the positive, learn from the bad and the negative maybe, but your primary focus has got to be on improvement in a positive way. Yeah, again, there's books written about it all over, but mindset makes a big difference. David: No question, no question. Ultimately, if you're a teammate for us and you've got those qualities, we feel like that's a great start to being a positive contributor to our group. Chris: Well, no just from being around the organization as much as I have. Y'all are known the Texans and LSSE. You're known within the sports industry of training people to be great and I guess that's a blessing and a curse. You get really good people but then people come and take them. David: Well, I've always had the mentality, chris. I know it's one that may fly in the face of common thought, but look, if anybody's being approached or anybody's being seen as having an opportunity coming from where we have brought them to, then we've done our jobs the other day and so we wanna keep as many of those on our team as we can, no question, but many times, for a variety of reasons, you have to accept that maybe reality, and so do the best of what you've got, be ready for the next opportunity, keep moving forward. Chris: So, working in the world of sports, what's one of the things you think is maybe the biggest misperception that most have about what you do? Cause it sounds pretty glamorous. David: Well, that's probably the biggest misperception. I think that, and that I have access to every ticket for every event all the time. My wife still sometimes even has that misperception, but I love her for it. No, look, I think the reality is that. I think that people do think that. Well, let me back up. I think there can be a perception that it is all glamorous all the time. Right, there's a lot of very visible and very talented people that are in the media all the time, that are compensated well, that are creating brands of their own. There certainly is an element to that, but I think that more often than not, it's a job that, if you don't have a passion for what you're doing, what you're doing, it's gonna be hard, because the hours are long, holidays are not really holidays. The players have negotiated a very significant salary, and that's not always the case for everybody else. And on the business side, and there are so many facets of what working in sports can be, and I think that's also, at the same time, an opportunity A lot of people look at. Well, you work for a team so that you're working in sports. Working in sports can be working for an agency that's working with a brand that is creating a partnership with a team. It could be working on the media side, bringing the events to life through social, digital and television content. It could be being a lawyer that negotiates contracts. It could be taking tickets and welcoming people to NRG Stadium, and so there's just so many different ways. There are over 7,000 people that work on a major event day at NRG Stadium. Just on the day, just on the day itself, right Between part-time staff, texans, employees, police fire, you name it. That's crazy. So it's such a big it becomes its own little city. So ultimately, there's a lot of different ways that sports can touch somebody. Most often, people just think of the players and what happens on the field. Chris: Well, it's nothing. You said when you started that, and I think it's true and it transcends all industries Passion To be really good at what you do, you have to have a passion for it, because it's long hours and putting in real hard time to learn and advance and grow your expertise at whatever it is, and so it has to start and stop a passion. David: No question, and if I look towards my life personally, it's been the fuel that's put me on the path to the successes that I've had. I mentioned it from the beginning. I mean, I started out as an intern with the Texans. I'm very proud of the fact that I'm the only intern or the only member of the executive team at Texans that actually started out as an intern with the team itself and that wasn't by accident. I mean, certainly there's a lot of good fortune along the way and I was able to produce results when needed. But I look at that as a testament to. Without the passion that I had, I wouldn't have been able to go through the 120 hour weeks as an intern, making minimum wage, I might add. You know working on, you know lifting heavy equipment or organizing, you know volunteer groups or you know putting together hours of copy that may not even be used, right. I mean, it's just those things that are just little steps along the way that, personally, I had to do, but I think they apply to anybody who has felt success in their business is that it starts with that passion. Chris: Yeah. So let's turn the conversation a little bit and talk about something that I don't think gets talked about enough, certainly at least here in Houston. We, when you step back and look at it, we, being Houston, which means you and others have done an amazing job of making Houston a true, like sports event destination. So we can talk about that a little bit, but what I want to do is connect that to how that the impact that has on the business community in Houston, because it's significant. David: It's massive, you know. So I'll start with a couple of things. One, you know, I think Houston's success as a destination for sport really points to. You can point to a lot of things that have been contributing factors, and they all have been geography center of the country, center of the continent, certainly a very, a very easy to get to market with all the infrastructure here from the great airports, obviously our traffic and our freeways. But the port you know, the infrastructure itself is fantastic, have served us well over the last 20 plus years with this latest renaissance, and we'll going forward. You've got a Some may need some tweaking, right? Chris: No question about it. David: I mean NRG is certainly, you know, a fantastic, world-class facility throughout its history. But that definition certainly has changed over the years and there's opportunities to continue to be the biggest and the best that we're working towards getting in the future. But the market seven plus million people in the DMA it's the most diverse market in the United States. All of that creates a lot of reasons why Houston has been a major destination. But I think the most important element is the leadership and the people and when I say people I mean the people at all levels that help contribute to the experience that's created when major events. Stakeholders are looking for a place to go and they come into Houston and they get to see it. We've got a number of groups that have worked together very successfully over the years the Texans and Lone Star, nrg Park, houston Livestock Show and Rodeo, all the major professional teams, harris County, houston Sports Authority, houston First Mayor's Office, city and Fire, the Texas Medical Center. All of those groups and many others have created a winning formula with how we approach the event experience, whether it's a festival, a conference or the Super Bowl. You throw in the hospitality community, which Houston First is certainly a driver of, but the thousands of unbelievable hotels, restaurants and entertainment options that are here in this community and how they collaborate and work together around these major events. And you see, no other market in the country can offer what we have as a collective package, and that's why you've seen Houston be awarded more major sporting events than any other market in the country over the last 15 years. That's impressive. Chris: I mean, people don't know that. They don't, it doesn't get talked about. David: They don't, they don't. There's certainly a lot of energy around. You get the first one right and then it just kind of dominos and we've been very aggressive as a community in pursuing those options. We've been very successful and when we get those options here to put our best foot forward, there are great resources at state level that certainly help with that and a spirit of collaboration with the governor's office to try and generate as many major events in the state of Texas as possible. So those are all winning points in the formula for success. But it really starts with the people and as we look at the future of the sporting event business, the major event business in Houston, there's a reason why we keep going after this and a big part of it is what you talked about the economic impact. Pick any number of these. These events Final four, college football, playoff, national championship game, fifa World Cup, super Bowl, taksac, texas Bowl, copa America I'm missing thousands of events that happen and are the Major League Baseball All-Star game, nba All-Star game, mls Cup. All these events that you see have really generated billions of dollars collectively for our community and economic impact. That's people coming to Houston and staying in our hotels. They're going and having a great time down in Galveston. They are eating at some of the world's best restaurants and that fuels our economy. We don't have the typical transient business that a vacation destination like a Miami or New Orleans may have, where entertainment in the community can spark a lot of travel. We are very much focused on conference events and entertainment opportunities and we do it better than just about anybody else out there. Chris: So let's kind of try to, you know, put some context around that. You mentioned, and obviously I'm well aware of the Texas Bowl, Taksac, Texas Bowl economic impact of that event to the greater Houston area. David: Annual basis over the last 10 years has been over $30 million on average. Every single year, we'll have anywhere between 25 and 30,000 people traveling in, staying in our hotels, restaurants, for three or four days ahead of the event. You've got people they're even driving in, too right, people that are coming in from the outer areas getting to celebrate that event. So that's meaningful, especially when that event specifically happens every year. It's right, it's a re-accuracy. End of the year, end of the year, when a lot of people are traveling for the holidays or maybe not doing as much, we've got an event that brings people into our community. That brings people here that may not be from a drivable distance. They may be coming from, you know, south Carolina, or Louisiana, or Florida, or Colorado Now that the Big 12 has expanded or Arizona, so you know, it really is something that fuels those businesses and gives our community as a whole an opportunity to celebrate around a major event, and we're proud of what that particular event has done, as well as, obviously, many others. Chris: Then we've got a couple of big events on the horizon. I want to talk about some of that. So let's talk about the first one, and that's the national title football college football playoff championship on January 8. It's a huge deal. It's the last one, I guess, of the 14 format, but you know what can we look forward to as Houstonians, with that game right around the corner? David: Well, it's a true celebration of college football, a week-long celebration. So you know, from a community perspective, you know the impact has already started. The Houston Love Teachers campaign that the Harris County, houston Sports Authority and the College Football Playoff local organizing committee has put together is has already generated millions of dollars in support for and recognition of teachers in our community, excuse me and that's an impact that will obviously pay dividends well beyond the game itself on January 8. When you look to event week itself, got four teams and four big brands that are hoping to descend upon Houston right after the New Year's. Chris: Yeah, yeah, so we've got what I mean. I think, any way you slice it, there's four or two teams that show up here are going to have big followings. David: Well, they are, and so you know what that means. It's not just about the 70,000 people that will fill up NRG Stadium. You know, again, the week long of activities, with free concerts every night during the weekend leading up fan fest down at Georgia Brown, which will have all kinds of interactive opportunities for fans to celebrate and enjoy the game of college football. You've got a number of initiatives around the industry itself that you know just further fuel Houston as a destination for business around the sport conferences and events and media opportunities, literally billions, if not trillions, of impressions showcasing our city. Chris: So you're gonna have the eyes of the world really on Houston for that kind of that weekend leading up and, I think, encourage the Houstonians right to get out and enjoy it yeah, no question, I mean it is. David: Houston is one of the best college football markets in the country the, the tax act, texas Bowl and many other events that we hosted. Our place and throughout the city. You've age rice, you know hcu tsu, prairie view. There's so much around college football that really Houston should be part of this destination, going forward on a consistent basis, and I think we'll show that as we bring everybody together here next month very good, yeah, david. Chris: So I think there's a lot to be excited about having the national title game be in our backyard, and I hope Houstonians will show up and take advantage of all the the events that are being planned yeah, it's gonna be an incredible week. David: We've earned the opportunity and I know, just like we did with Super Bowl a few years ago, with Final Four earlier this year, sonians love their sport. They will be out and enjoying another great celebration, and that's something that we should be excited about, and it's not the only one. You look down the road. We've got the world's biggest event coming just two years from now. Chris: As well, and that's the World Cup that's right. David: Yeah, fifa World Cup returns to Houston in 2020, or returns to Houston, comes to Houston in 2026. Houston, one of the venues in North America that was selected and you know just when you think about the opportunity to host five, six, seven, eight events in NRG Stadium with an average audience of a billion people and names like Messi and Neymar and Mbappe, who probably mean a lot to many people in this community but are treated as icons around the globe, and for Houston to have its name among the great markets of the world, at a truly global market which we know from a business perspective and from a from a population perspective. It is but to have that that verification on that type of stage is something that you know. As a community we also be very proud of and Chris Canetti in the World Cup office and Janice Burke and everybody over at NRG Park that ourselves included that helped to be part of making that a reality. We know we got a lot of work ahead to live up those expectations that's great. Chris: Well, david, I appreciate you, you know coming on and sharing some of these specifics. I want to ask you just a few more questions about you personally. What was your first job before days? You know the years before you were the intern of Houston Texas so I my first job I'm gonna go with. David: I've got a 1, 1a, all right. So my first job really was I worked at a Kroger in Kingwood as a checker or, sorry, as a bagger. But my my first quote real job I didn't have that one very long was I. I ended up being a server at Kingwood Country Club and the reason I say that was my first real job is that I worked in the service industry throughout my career. I mean, I still do today, obviously, but I worked in the service industry for 10 years, all the way through my time in Austin, going to school at UT, and I will tell you that nothing will teach you more about the world good and bad, than working in the service industry and I am so appreciative of the opportunities that I got to again. Start with something simple as that. But as a funny story, chris, I will say my crowning achievement as a server is I did serve as Don Johnson, the actor, don Johnson's waiter for the 10 cup rap party, because Tim Cup was hosting. That's right and so I do have that up by resume. Chris: So there you go see one of the benefits of living in Kingwood that's right. Yeah, one of the many I'll add okay, so since you work so much in, I guess, service hospitality, this will be easy for you. All right, you prefer Tex-Mex or barbecue? Tex-mex all day long all right, and this one's gonna be hard for you to answer okay maybe not. If you could do a 30-day sabbatical, where would you go? What? David: would you do? That is a great question. I don't think it's very. I don't think it's very hard for me at all. I am an avid skier and my family and I have been fortunate enough to spend a lot of time in Park City, utah, and I try and get the 30 days even now it's not possible to do in our work, but I love Park City probably more than any place else in this planet, and so I'd love to be able to go up my family for three days and just ski our behinds off got you. Chris: Well, that's great. That's a good one. David, thanks again for taking the time. Congratulations to you and the rest of the team back at Energy Park, the Texans LSSE, for all you do for Houston well. David: Thank you, chris, and we appreciate your support and involvement as well. Special Guest: David Fletcher.

Building Texas Business
Ep062: Living Good and Dreaming Big with Tram Nguyen

Building Texas Business

Play Episode Listen Later Nov 29, 2023 32:22


In today's episode of Building Texas Business, we have an inspiring discussion with Tram Nguyen, the passionate founder of Living Good Candle Company. She shares her journey of launching a natural candle company and the power of her dedicated team. Tram describes the challenges of breaking into retailers like Amazon and Walmart and her three-month struggle that led to reinstating her Amazon account. We discuss her unique empathy-driven leadership approach and strategies for understanding the market. In wrapping up, Tram shares advice for aspiring entrepreneurs and her future plans. Additionally, we hear about her growth habits, first job at Chick-fil-A, and love of Texas barbecue. SHOW HIGHLIGHTS We discuss the entrepreneurial journey of Tram Nguyen, the founder of Living Good Candle Company, and her commitment to using natural ingredients in her products. Tram shares her experiences of getting her products featured on major platforms like Amazon and Walmart and the challenges that come with it. We delve into Tram's unique approach to leadership which emphasizes empathy, understanding, and active listening, contributing to her company's growth. Tram talks about the importance of a dedicated team and thorough market understanding for any budding entrepreneur. We touch upon Tram's strategies for budgeting and the difficulties she faces in accessing capital for her business. Tram offers advice for aspiring entrepreneurs, stressing the importance of hard work and life balance. We discuss Tram's personal habits for growth, including her love for reading and participating in a book club. She also shares her first job experience at Chick-fil-A. Tram shares her future plans for Living Good Candle Company, including product line expansion and increasing automation. We discuss the process of building relationships with big-name retailers like Amazon and Walmart and the importance of constant and timely communication. Tram talks about the setbacks she faced, including losing her Amazon account and her efforts to recover it, emphasizing the importance of resilience in entrepreneurship. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS Tram Nguyen About Tram TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you'll meet Tram Nguyen, founder of Living Good Candle Company. Tram talks about the importance of understanding your market before starting a company and how the power of a team can help you realize your goals. Tram, I want to welcome you on to Building Texas Business. Thanks for being here today. Tram: Thank you, Chris. Thank you for giving me the opportunity to be in this podcast. It's a really great to be here today. Chris: So tell us, you started a company on your own and it's a candle company. Tell us about Living Good Candle. Tram: Is that it? Yes, tell us about that. So I'm actually starting out my career as a chemical engineer. So I'm making many difficult products for lives, from plastic to car material, and now I'm making composite for airplane. So I've been making, producing so many useful products, and then suddenly, when I am a person that's really into candles I've burned a lot of candles throughout my whole life and then I got really bad headache from it and then I have to take a stop from burning any candle completely, and during that time I take a step back doing more research about what's going on in the candle industry and find out a lot of misconception or misunderstanding about different time material going to candles. And that's the reason why I decided to start a candle company that only make candles with be wires and only, and we make our own oil too. So we control everything into a product and we transparent about that to our customer, because I wanted the customer, when they burn the candle, not only feel good, but they know that they're not putting their health at risk. Chris: So your passion for candles is what kind of led you to start the company? Tram: Yeah, exactly. Chris: So you mentioned that. So what are the things that got you to? I guess you sound like you control the product mix so that it's more natural than having, I guess, bad chemicals in there. Tram: Yeah, it's 100% natural. Everything you make with be wires and we have the lab in Houston that make our custom oil. So I will come to the lab, I test all of them, reading or I smell them, go, improve all of the things going through with it and then approve them before we, you know, with them in the candle. So we also send our candle to the lab to test them to make sure no suit, no emission, no elegance, and because I have really bad allergy too. So that's the reason why I want a product that you know would my my at peace, knowing that it's not bringing bad chemical to my house. Chris: That's impressive. So when did you start the company? Tram: I started in last year. It took me a while to figure out the recipe. Seeing be wise a little bit difficult to handle, so I spent a lot of time testing it and work with a lot of vendor. So now all of our be was up from not Carolina and we have built trust with our vendor. And then you know, yeah, we've been around for a year and a half now. Chris: Okay, so your candles are all beeswax, and so what did you do to get the company started? Is it self funded? Tram: Yeah, it's actually self funded. So I spent all of my money from my night to five job with them all into the business. I work day and night, like weekend, no day off, and then, you know, put some of my seven on it. But as my plan for next year, we're working on some fund it. We're working towards some bank try to get the business fund it so we can spend them, because right now we focus on Amazon and Walmart, but my next year will be roll into the retail, so we will need a little bit more fun for that. Chris: Okay, so right now, the products excuse me are on. You find them at Walmart or Amazon yeah. What has that been like, dealing with those two to try to get into their system, and you know the logistics of having to be a vendor for Amazon and Walmart. Tram: You know what funny actually use the world for Amazon report. I use the world for Amazon. I used to be their operation manager, so I managed their warehouse and logistics, so I understand how it's work. That's why when I start the company, the first thing I do is I want my company as e-commerce because you know, I don't want to ship our product by myself, and the process again to Amazon is a hustle. You have to. You have to do everything right from day one with Amazon and we improve out the year, a year and a half. We get a lot of customers from all over the country. We do have some customers even from outside the country, but just our candle on Amazon and our Amazon sell it from 87% of previous customers. That's mean we build really big, you know, portfolio on our Amazon and then from there, when we're getting the profit from Amazon, we come back and talk to Walmart. Walmart will be a little bit harder to get in because they will require you to be at a certain revenue. So we come back, talk to them, convince them and now we like Walmart. Yeah, it's a lot of challenge dealing with, you know, those two big e-commerce website, because you have to do everything right and make sure that you know you don't get your company suspended and stuff. Chris: Very good. So let's kind of go back to this. Last year, or maybe even before you started business, you were doing a bunch of research. You said Talk to us about you know if there's entrepreneurs out there maybe that have just started what you're doing or thinking about it. What are some of the lessons that you learned? Maybe some bumps in the road that you encountered and how you got past those in starting this company. Tram: I think I make a lot of mistakes. I do think like that. The first thing I make mistake about is, you know, the lack of understanding of the market research Like even though I'm really good at production testing product but you know the lack of understanding of why people are looking forward. First Challenge Gina. For like three, four months we wasn't able to really push the sale up to where I wanted to be when I get started. So you know, if any intravenous want to start a side business or a business, the first thing to do we understand the market, understand your customer, and then the second thing will be understand your. You know the power of being in a team. I used to do everything by myself. I used to do candle pouring, production, packing, marketing, everything and then at one point I got burned out and that's the reason why I always say you cannot start a business by yourself. It's always needs help, you know from your teammate. And that's when we started bringing in more people, because my sale, my family and even my boyfriend got burned out. Everybody got burned out from helping me and that's why I'm like, okay, this is time for me to hire more people, and then I take in time, interview people and bring in some people to the team. Chris: So that's a great segue, so it does take a good team right at any company. So let's now talk about what were some of the things you did through, say, the interview process, to make sure you were hiring the right people to join your team. Tram: That's a hard question. Actually, I make a lot of bad hire at first because of the rushing feeling you know you got burned out and then I'm like, oh my god, I need help, I need help, and then we just take whatever. But then it's actually creating more problems down the line because I don't understand who I work with. And since I have my night to fight, I do looking for somebody that independent and can be at a warehouse by themselves. So in the interview I have conversation with them, I'm making sure that they okay. Working with the warehouse setting you know where it can hit can be a little bit of problem and it's you just have to look around for until you find a right one. So I, when I'm making so many bad hire, I take a step back. I say I'm not hiring more people. I try to do it by myself. I'm taking my time looking for a right person and then from there you know you just have to take your time talking to people, try to understand the goal. And one of my thing is I love hiring students because you know I used to be a student and working part-time, so I hiring them at part-time and right now we only have part-time worker. We didn't have anybody full-time yet. But you know I start with students because I like the curiosity of them and you know they want, they want to do the best. Chris: The young energy. Tram: I think so too. Chris: Well, I think you mentioned something that's true, I think, when you, when you're hiring out of what I'll call desperation, right, yeah you tend to overlook some things, and that yeah tends to lead to maybe bad hiring decisions as opposed to taking your time yeah and and really digging in to get to know someone and make sure they fit. You know the fundamental priorities of your company yeah, it's important it's very important. You only, you only figure that out if you slow down. Tram: I think so too. Yeah, you need to slow down to go far. This is what I take. Yeah, you need to slow down, take one step at a time so you can go for it. Chris: So let's talk a little bit about your process, I guess, and making your product. Do you, do you feel like what you're doing? It kind of in the candle manufacturing space is somewhat innovative. Tram: When I first started, it's actually was really manual. I actually took it out, like you know wasn't really innovative or efficient, and I'd good love it to be. But you know, of course, that I have to do everything by hand so I can figure out where I can twist stuff around. And the thing is I really listen to my teammate. So I talk to my candle maker almost every day and we ask you know, how was the process? Anything we can make them better. And then you know, from there I start looking more into automation stuff and my goal for next year is so right now we're working on the design not a machine, but a machine. But this can help us to pull the candles, so it can help us to minimize the mistake. But you know, when I first started it wasn't really innovative. It's really manual hand pull everything. But you know, one step at a time, and I always say we look into the process, talk to our people and see what we can improve. Chris: Well, I think at some level, just the fact that you're making such a clean candle is somewhat innovative as well like different than what your competition is. Tram: Of course, yeah, but it costs a lot of problem too because when they so natural, you cannot, you cannot control a lot of them. But then we, I always tell my customer, you know there will be some. The candle can cracking. So that's the biggest issue of BWAS. It cracked really bad and we have to do everything to control our temperature, but it still happened. And I always tell my, I tried to educate my customer that this is a clean product. We didn't put anything else. So there may be some imperfection, but you know it put you at peace. Chris: Yeah, what would have been some of the challenges on that kind of marketing this new product? Yeah, what are some of those challenges and how are you trying to overcome them? Tram: That's the tough question. Yeah, it is. It's a lot of maybe a lot of education for customers because you know you can just go to Walmart and buy some candle that I can never commit with them, you know, but I always tell people you know breathing is so important. You breathe in your air every day, so make sure you rent something clean to your house and it takes a lot of time for customers to get used to the product, understand some of the issues that might happen to be what and accept it. And the thing we do is, whenever a customer feel like you know the candle wasn't looked at, it's a. When it reached out to me, I addressed the issue immediately and tried to explain to them what's going on, and also some media is the same thing we post about our behind the scenes, some of the challenging that we encounter when we're making be what candle and you know, because of all of those issues, it actually make it unique. So we really stand out because we were looking at a product and say it's so natural. I have a customer about our candle on Amazon for a year and a half came to a farmer market to see me in person. Chris: Really. Tram: Just because she told me she's so impressed with the product she had to come all the way to the farmer market to see me. Chris: Well, that that had to make you feel good. Yeah, so you're dealing with two of the biggest companies in the world. What are some of the things that you do to try to foster and grow those relationships with the people you're dealing with at Amazon and Walmart? Tram: I think the first thing we do, we, we I don't always say like when you start out with them, you have to do right from the beginning, we from from even our account, you know reservation. We make sure everything is correct, no mistake, or you know, and we have actually have two people dedicated to just handling Amazon and Walmart. It's just because that this is a really bulky system from them and you need to have certain understanding and I feel like sometimes I'm in and out so much. That's why I'm dedicated to people. Don't do anything, spend four hours a day taking care of Amazon and Walmart for me and you make sure that you follow the rules. They have a lot of policy and rule. You make sure you understand it. You make sure that you you know update about the news because it changed up around a lot. So the thing is, you keep your communication with them. When something pop up, something doesn't, you know, sound right to you, you reach out to them immediately and they're actually very helpful when you calmly reach out to them, you know, and they will definitely get to you. I love working with Amazon and Walmart. Chris: Well, I think you hit on something. I mean that the key is communicating right yeah uh constantly and and timely uh yeah so let's talk about you. There's always learning and setbacks. What's what's a setback that you've encountered kind of along this journey that you know you maybe didn't think you could overcome, but but you did and it's made you stronger and better. Uh, can you, can you think of anything to share? Tram: yeah. So, um, we actually lost our Amazon account beginning of the year. Oh, we thought, we thought, we thought it for three months. It's, it's a. It's a disappointing feeling. You know, I just wake up. I just went too bad. Wake up in the morning, my account gone completely, amazon couldn't look, fired and there were so many people involved. Um, I was thinking that, all right, you know, maybe Amazon, you're not right for me. I have to be out Amazon, grow outside of Amazon. I was so I was really negative, you know, at that time, because you're losing a really big part of three months beginning of year. Sure, that's really hard for me. And we still have candle and a way hand needs to be sell. So, you know, I need to think about what do I want to do with it. So what we do is I reach out to so many people. I reach out to Amazon, prove multiple way. I send them a letter, I reach out from Twitter. I do everything I can make sure I'm in contact with a right person and then, when I'm in contact with them, we try to bring in an Amazon lawyer to just have some help from them, you know, to speed up the process and I really fight for it to get my account back. It's a three month. It's a long three month in my whole life, every day. You know we didn't get the answer we need. They say we cannot be an Amazon again. And then suddenly you know they, we just have to keep trying, send them more email, send them more message. Um, try to be kind with them. Even we be frustrated, but we need them help, they help. So we keep reaching out for three months and then finally they say, all right, we let we. They have to allow me to open a new account, so they allow me to open a new account, transfer everything, but the thing that you have to restart. We love all of our customers. Um, I thought that I would be out Amazon completely because of frustration that I have with Amazon. But, taking a look back now, we have so many great customers, like we have so many customers that reach out to me personally and send another message because just how much they love the candles and you know the fact that the people go out their way to go to the final market to see us, making me feel like Amazon, bring my product closer to more customers, and we actually have some wholesale order from customers on Amazon. So we roll really big on Amazon. Chris: That's right. So your persistence paid off, right. Tram: Yeah. Chris: But I have to imagine that was a pretty trying time for you as a young entrepreneur to lose an account like that. Tram: Yeah, and the thing is you cannot over new account. The moment you over new account, you shut it out completely. So you have to do the right thing. Chris: How did the rest of your team respond during this time? Tram: They actually work in hard with me. So at that time you know my Amazon team working hard every day with me. Sometimes I have to be at work so I wasn't being on the phone with them, so they help me to take on a call with Amazon, follow up with them every day. And the thing is, I'm really grateful for the people that I work with. We have awesome team. I have to tell you that we cheer every single wins, like, let's say, we have really great read, like Friday during this weekend, and it's when it's so great. So you know, that's the thing. You just have to put trust in your team and then know that they will do the best for the business and I just have them like hey, I don't care what you do, what long we, you know, can come back and run again. It should be good. Chris: Yeah. So that kind of leads me to the subject of talking. Maybe you as a leader of this team. How do you try to show up as a leader for your team? Tram: I think the thing is I show that I care in understanding and listening because, you know so we have one of my teammates recently have some of the things happen outside of work which you know affect the candle, because he dropped so many candles on the floor because of, you know, his mind was so busy. But instead of me yelling or upsetting what I tried to do, I tried to be calm and learn from it and ask hey, what's the issue, you know, do you have any problem that you want to share with me? So the thing for me is you'll be there for them when something happened, talk to them, listen to them, text them, like every day. Even I am not at the warehouse, I'm still calling. You know my people has, hey, are you doing good? Or I'm making sure they drink water, and you know we could text them hitting no joke for me. So I'm making sure that I'm taking care of them in everything I can Like. If they need a day off, you know I can cover for them. Or that's the reason why, you know, when I need help, when I need long hours, they will be there for me, because I'm be there for them and I listen to them and I go out of my way to help them, you know. Chris: That's right so it sounds, you know, someone likes servant leadership right, yeah. To make sure that they're taken care of when? How would you describe your leadership style? Where have you learned over the years in your other career maybe to develop these leadership skills? Tram: That's a hard thing, because I think that I see this improvement on my leadership. Chris: It's an evolving process. Tram: Yeah, it's a lot, but when I went to work, graduated walking I've been through it with so many it worked with so many bars, worked with so many managers and throughout the year I worked with them, I figured out what do I lie from them and what I don't lie from them. And now when I have my business, I try to do whatever I like from the manager. I have a boss that used to be there for me. He's so nice, he was helping me so much he could send me a card for Christmas or Thanksgiving and that's really something that, beyond our manager and work, a relationship he goes out of his way to help me when I need. And that's what I want to do for my people too. I want to be a type leader that if something happened at work, the people can feel okay to tell me what's going on, like there will be no upset or no being too aggressive. I want to be a good listener to them too, and I'm still working on that. Chris: Sure, so you're somewhat of an empathetic leader where they yeah. And have you seen that kind of take hold with your employees? The culture is forming where everyone feels safe to share if something's going on. Tram: Yeah, we have a worker just dropped like 20 candles on the floor the other day. If it's won't be before I have a business, I will be really aggressive, really angry. But with me dealing with my so many people, I try to become and try to clean up and I really don't mind to go to clean up their mess. That's what I normally say if I have to. So I really go out of my way to help people and that's actually make people want to work with me and stay longer. And we see that too. We see that even. You know we're small business, we're not big cooperation, so sometimes it's hard for us to keep people. But all of the people are working with us until this point in two years and I can see that they still want to work with me. Chris: Yeah, so you've talked several times at least referenced, kind of plans you have for the next year. So what are kind of, when you look to the next year or next three to five, what are the plans and strategies that you are putting in place and what you hope to accomplish and where do you see this company in the near future? Tram: So every year, like so, right now, I'm doing my six month plan. So I'm working better when I plan everything out and I would encourage all intravenous. You know, do nothing about it, write them down in the paper, do the chart, do everything you can you have. I think, like you can only achieve your goal when your mind is all about it. So right now, everywhere, I could sit everywhere and I could write down. You know how much revenue I want for every single platform. So so my year for next, go for next five years. You know I want that we will become the candle brand, that when customers want a clean candle they will say living, good candle code. So we want we, of course, that we want to become, you know, the goalie. Everybody wants to become a multi-million company, right, but for me, the goalie. You know, when you want something clean, you think about us and that's and that's something that I work hard every day and we and we have to do. You know, be what is so expensive. That's why so many brand cannot make a profit with them. And every day I have to continue, improve, to make, to make sure that a product is profitable. And another thing is you know, you just have to keep you know, thinking about what you want to do in your, what's your end goal of everything, all the hard work, and one of our next year I want to roll out a very, very new product on the market. We we don't want to disclose yet. Chris: That's fine you don't have to tell your secrets. Tram: Yeah, we, you know we will be rolling them out on January, but I think it's really right around the corner. Yeah, so it's really big hit for the market. Chris: So everyone should be looking out. It'll be on Amazon. Tram: Yeah, we Amazon and Walmart and our website Enough, we will be at a farmer market too. So if you locally to Houston, you know, stop by saying hi to us. Chris: Which farmers market. You mentioned that a couple times, so which farmers market are you at? Tram: We are the market for maker. Okay, so they in the highs. That's either only market I'm doing right now, but next year I would love to do, you know, more family market. I love the feeling of going there, going out there, talking to a customer and have them smell. I can't know. Yeah, but back to the question. We have a lot of go for next year. We want it to be more automation. We don't want people to manually apply every single label or every single jar. So we're working with a company, you know, to try to automate our process. We would love to hiring one or two person full-time with us, and that's something I'm working on. And we would love to increase our capital too. And it's really you know when, when you want to go, big capital can be a problem. So I try to get it ready for that. Chris: Yeah, let's talk a little bit about that. What? What are some of the the things that you're doing to put in place to Access? Yeah additional capital. Tram: That's a hard question. So right now we still small and I, you know, and I mentioned I invest everything I make from nine to five into my psychic, like my kind of business all the money, all the serving. Another thing that I do a you know we sometimes we will ask help from friends and family and that's the only way that pretty much I'm doing right now to keep the company running. But of course it's still about us hustling. So we try to go to more farmer market, we try to do different things, expanding them on Amazon, like on tick tock we now have tick tock shop and Instagram. So we try to run, you know, expand them out to make a little bit money. But I'm very strict on how I spend it, so I'm budgeting everything. So right now I'm looking at the how much money I need for 2024 and that's helped me. That you know. Try to see where can I get all the old fun? Do I have to get it from the bank? Or you know, like it's a heart, I still try to figure out a capital part. Chris: Yeah, yeah. Well, I mean, it's a very important part of the new business right. I think what you mentioned a minute ago to budget very consciously and thoughtfully so you manage your expenses well. Yeah and that's gonna be important. When you go out for capital whether it's a bank or you know investor one wants to know you actually run in a good business. Tram: Yeah, of course I try to talk to some bank right now to to hopefully get a funded. Hopefully that will be, you know, something I can achieve next year. That's one of my goal. Chris: Okay, have you had any mentors kind of along the way in your career that have kind of Help, guide you or inspire you to do what you're doing now? Tram: I actually have a lot of mentor. I know so many people that I learned so much from them, and you know some people that they probably don't know me, but I learned them from their podcast. I listen some of your podcast to you, by the way. I try to know that, whatever the people do that I'm really enjoying. Like you, talk a lot about innovation and that is something that I really want us to be better at. I want us to be more. You know Concepts about how we can improve thing. So I guess one of my biggest mentor I have a mentor that meant to me how to sail on Amazon and he actually was the one that get me started. So I wish out to him, you know, talk to him about my desire, why I want to have this brain and why I want to start on Amazon, and he actually will help me from day one. So he guided me throughout the way and then I met some other mentor. You know, like we, I learned a lot from people more than most of me. More of the thing I learned is cell top. You know from YouTube. Chris: Well, you, I think, what you Find along the ways, you can kind of learn from everybody, right, I mean some more than others where there's a lot of you, if you're Observing enough and willing to pay attention, that there's always yeah sometimes learning is learning what not to do. Tram: Yeah, yeah, that's true, yeah, it's. We learn from our customers. We have customer that angry right, you know, because on Amazon, so people can just buy our product and change them up there by the next day. So we learn so much about our customer and the thing might go it to review our return rate to almost zero and, to be honest, we don't have a lot of return in the big market like that, but we still have some. And Every time that I have a customer return, I accept it, I reach out to them, I want them to tell me what's happened or what can I make them better, and I do think that dough feedback is something that you know make us better every day. Chris: That's good, I agree. So any One or two things you might tell an aspiring entrepreneur to to think about as they're About to step off and start a company, like you did a couple years ago. Any pointers? Tram: I did so. If I have, I would love to Tell this to all intrapreneur. I think having the business and actually running a business at two different things is a lot of hard work. You have to read yourself out there. I used to be so shy, you know, but I have to go out there hustling, selling stuff at family market, ringing my product out there for people to judging is, but the thing is, when you want to do great in your intrapreneur, you have to make sure that you, you know you just keep pushing, don't care about anybody else, just think about yourself and be in it. And the second one a do not ever think that you can do everything by yourself. It's impossible. They have to be balanced between your life, your work life and your family. And you want to make sure that you know when you at your high point in your career, you still feel happy because your family happy with you. So that's it. Two things that I would love people to think about when I started their internship. Chris: Those are two great things to share, so thank you for that. Listeners out there, well, thank you. Tram: So let's, let me ask you this what was your first job? My first job. I used to work in Chick-fil-A before. Okay, you know, so I can't learn a lot about value. Customer week my in my mind. Customer in my number one, my priority. Everything I do to make sure they happy. Chris: So if you, if you work there, you must have eaten the food a lot. Are you like, done with Chick-fil-A now? They get me every time yeah, yeah, what's not the like about it. So, keeping with the theme of food, do you prefer Tex-Mex or barbecue? Tram: You. Chris: Very good. Who doesn't like good barbecue? Tram: and Texas yeah. Chris: So are there any things that you do to kind of keep yourself up, like reading or you mentioned podcasts any business related books or podcasts you like to listen to that you share? Tram: I listen to. I read a lot of books, so I actually attend to a book club, so we wake up at 5am in the morning picking the book that we read. So right now I'm reading a book called the Messy Truth from Alie Wab. So that's a really new book. Chris: The Messy Truth. Tram: Yeah, the Messy Truth. So she talks about the behind the scene of intravenous and every new intravenous will find themselves in there. She talks about lots of dark side of the business the busy, the doubt about your business yourself. So if anybody wants to start intravenous, I think that's a good book to start with, Because it will help you to see that everybody out there having a small business dealing with the same thing that you're dealing with. Chris: It takes hard work, it takes courage and a little bit of you know willing to take a risk, right yeah. So that's great, I'm going to have to go check that book out. Tram: Yeah, they actually just released. Yeah, they actually just released, like last week, I think. Okay, yeah, so just now yeah, they just out. Chris: Well, tramp, thank you so much for being on the show. Enjoy hearing your story. Best of luck as you continue to grow, living in good camel company. Tram: Thank you. Thank you, Chris. I really appreciate the opportunity and, you know, really appreciate that you helping me here. Let me share my story and hopefully it can inspire many small business out there. Chris: No doubt it will Take care. Tram: Thank you. Special Guest: Tram Nguyen.

Giant Robots Smashing Into Other Giant Robots
500: Giant Robots Smashing Into Other Giant Robots 500th Episode!

Giant Robots Smashing Into Other Giant Robots

Play Episode Listen Later Nov 16, 2023 72:17


We released episode one of this podcast on June 11, 2012. Now, more than a decade later, we're celebrating the 500th episode of our show. In honor of this milestone, Victoria, Will, and Chad caught up with each of the past hosts of the show: Ben Orenstein, Chris Toomey, and Lindsey Christensen. We chatted about what they're up to now, what they liked and learned from hosting the show, their time at thoughtbot, and more! Follow thoughtbot on X (https://twitter.com/thoughtbot) or LinkedIn (https://www.linkedin.com/company/150727/). Become a Sponsor (https://thoughtbot.com/sponsorship) of Giant Robots! Transcript: VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. WILL: And I'm your other host, Will Larry. CHAD: And I'm your other host, Chad Pytel. We released episode one of this podcast on June 11, 2012. Now more than a decade later, were celebrating this: the 500th episode of our show. In honor of this milestone, Victoria, Will, and I caught up with each of the past hosts of the show: Ben Orenstein, Chris Toomey, and Lindsey Christensen. We chatted about what they're up to now, what they liked and learned from hosting the show and their time at thoughtbot, and more. First up: Ben Orenstein. Ben was the very first host of the show back in 2012 when he was a developer at thoughtbot. He is now the co-founder and Head of Product at Tuple, a remote pair programming tool for designers and developers. Ben, it's great to talk to you again. It's been a while since you and I talked. How have you been? BEN: I've been decent, yeah. It's fun to be back to my roots a little bit. I told some folks that I work with that I was coming back to the pod for the 500th Episode, and they were stoked. So, it's kind of a treat to get to be on these airwaves again. CHAD: What have you been up to since you left this show and thoughtbot? BEN: Well, I started a company. So, I was at thoughtbot for a while; I think it was seven years. And I eventually sort of struck out to start my own thing–had a false start or two here and there. And then, I ended up starting a company called Tuple, and we still exist today, fortunately. Tuple is a tool for doing remote pair programming. We started off on macOS and then wrote a Linux client. And we're launching a Windows client now. But it's sort of, like, screen sharing with remote control for developers who are actually writing code and want to have great, low latency remote control and who care about screen share quality and that sort of thing. I started that about five years ago with two co-founders. Today, we are a team of 11, I think it is. And it's been going well. Our timing was really great, it turned out. We launched a little bit before COVID. So, remote work turned into a lot more of a thing, and we were already in the market. So, that helped us a ton. It was quite a wild ride there for a bit. But things have calmed down a little lately, but it's still fun. I'm, like, really enjoying being a co-founder of a software company. It was what I've always sort of wanted to do. And it turns out it actually is pretty fun and pretty great. Although there are, of course, the ups and downs of business ownership. It is never quite as calm or relaxing as being an employee somewhere else. CHAD: You started Tuple instigated by...full disclosure: thoughtbot's an early customer of Tuple. We're still a customer. We use it a lot. BEN: Woo-hoo. I appreciate that. Thank you. CHAD: If I remember right, you started and were sort of instigated to create Tuple because there was a prior product that then Slack bought, and then it started to degrade. And now, it no longer exists in the same way that it did before. BEN: Yeah. So, there was this tool called Screenhero, which I actually started using -- CHAD: [inaudible 02:14] BEN: Yeah, first at thoughtbot. Some other thoughtboter introduced me to it, and we would use it for pair programming. And I was like, oh, this is nice. And then yeah, Slack kind of acqui-hired it and more or less ended up shutting the product down. And so, there was this gap in the market. And I would ask my friends, I would ask thoughtboters and other developers, like, "What are you using now that Screenhero is gone?" And no one had a good answer. And so, after a while of this thing sort of staring me in the face, I was like, we have to try to solve this need. There's clearly a hole in the market. Yeah, so we were heavily inspired by them in the early days. Hopefully, we've charted our own path now. But they were definitely...the initial seed was, you know, let's do Screenhero but try to not get bought early or something. CHAD: [laughs] How did you or did you feel like you captured a lot of the Screenhero customers and reached them in those early days? BEN: I think so. The pitch for it was sort of shockingly easy because Screenhero had kind of blazed this trail. Like, I would often just be like, "Oh, we're making a thing. Do you remember Screenhero?" And they'd go, "Oh yeah, I loved Screenhero". I'd be like, "Yeah, we're going to try to do that." And they'd be like, "Nice. Sign me up." So, it for sure helped a ton. I have no idea what percentage of customers we converted. And they were a pretty large success, so probably a small fraction, but it definitely, like, made the initial days much easier. CHAD: Yeah. And then, like you said, COVID happened. BEN: COVID happened, yeah. I think we had been around for about a year when COVID hit. So, we were getting our feet underneath us. And we were already, like, the company was already growing at a pretty good rate, and we were feeling pretty good about it. I don't think we had quite hit ramen profitable, but we were probably pretty close or, like, flirting with it. Yeah, the business, like, I don't know, tripled or quadrupled in a matter of months. We had a few big customers that, like, just told everyone to start using Tuple. So, we had, like, thousands and thousands of new users kind of immediately. So, it was a crazy time. Everything melted, of course. We hadn't quite engineered for that much scale. We had a really rough day or so as we scrambled, but fortunately, we got things under control. And then had this, like, very nice tailwind. Because we started the company assuming that remote work would grow. We assumed that there would be more remote developers every year. And, you know, it's probably maybe 5% of dev jobs are remote or maybe even less, but we expect to see this number creeping up. We don't think that trend will reverse. And so, COVID just, like, it just yanked it, you know, a decade in the future. CHAD: You haven't tripled or quadrupled your team size, have you? BEN: No. Well, I mean, I guess, I mean, we started as 3, and now we're 11, so kind of. CHAD: [laughs] Yeah, that's true. BEN: Expenses have not grown as fast as revenue, fortunately. CHAD: That's good. That's basically what I was asking [laughs]. BEN: Yeah, yeah. We're still a pretty small team, actually. We have only, like, four or five full-time engineers on the team at the moment, which is kind of wild because we are now, you know, we have three platforms to support: Linux, Windows, and Mac. It's a pretty complicated app doing, like, real-time streaming of audio, webcams, desktops, caring about OS-level intricacies. So, I think we will be hiring more people soon, although we haven't said that for a long time. We sort of have always had a bit of a hire-slow mentality to try to get the right team members and, like, feel a real pain before we hire someone into it. But we have been getting a bit more aggressive with hiring lately. VICTORIA: Well, I really appreciate Tuple. I installed it when I first started working here at thoughtbot. And we have random pairings with everyone across the company. So, I'll randomly get to meet someone halfway across the world who's working on similar projects. And I think they really enjoy that I have a tool they like working to share what they're working on. So, I want to thank you for that. And I'm curious about when you really started to scale during COVID, what were some of the technology architecture trade-offs you came across, and where did you land with it? BEN: Well, we got fairly...I don't know if it was lucky, but we...for a long time, for years, even through COVID, maybe the first four years of the company, all Tuple calls were purely peer-to-peer. And there was no server that we owned intermediating things. This was, like, kind of one of the keys of, like, not having expenses. The scale of revenue was we could have lots more calls happen. And it wouldn't cost us bandwidth or server capacity. To this day, still, for any calls with three or fewer participants, they're purely peer-to-peer. And this is nice for latency purposes because it just...we can find the most direct path to the internet between two people. It's also nice from our cost perspective because we don't need to pay to send that data. And that was hugely useful as call volume went up immensely. Didn't have to worry too much about server load and didn't have to worry too much about bandwidth costs. CHAD: Today, is there a central service that makes the initial connection for people? BEN: Yes, yeah, yeah. So, there is a signaling server. So, when you launch the app, you sign in, and you see, like, oh, which of my co-workers are online? So, there is actually a Rails app that handles that, actually, increasingly less the Rails app. We have now...I think it's a Go service that actually manages all those. I'm further and further from the code every year. Some of the technical questions might be a little bit beyond me, or I might have slightly out-of-date info. But back to the architecture question for a second, we did a pretty big refactor when we decided to go from just being a Mac client to supporting other platforms, where we split out a cross-platform real-time communication engine written in C++ so that we could use that for all of the heavy lifting, all the managing of the connections, and the tricky bandwidth estimation, and all this stuff, and use that across different platforms. And so, today, you have the cross-platform engine, and then on top of that is a, like, a less specific layer for each of the operating systems that we support. CHAD: So, you mentioned you're less and less in the code these days. So, what do you spend your time doing then? BEN: It's a mix of things. These days, it's basically mostly -- CHAD: Just cocktails on the beach, right? BEN: Cocktails, yes [laughs], cocktails on the beach, appearing on podcasts trying to sound important and impressive, yeah. Mostly product work. So, right before this, I just got off a call with some folks from The Browser Company. They are some of our first alpha users for our new Windows clients. So, I hopped on the call with them and, like, watched three of them install the product and inevitably run into some bugs. And, you know, chatted through those with the engineer that was working on it, prioritized some stuff, made some decisions about what's coming up next, and what we're going to ignore. So, mostly product work these days. For the first five years of the company, I was CEO, so I was doing kind of everything: marketing, and also hiring, and also product. About two months ago, I stepped down as CEO, and one of my other co-founders, Spencer, stepped up. And so, now my focus has narrowed to be mostly just product stuff and much less on the marketing or hiring side. VICTORIA: Yeah, you mentioned that it was a little more comfortable to be an employee than to be a founder. I don't know if you could say more about that because, certainly, a lot of engineers are smart enough and capable enough to run their own company. But what really informed your choice there, and do you regret it? [laughs] BEN: I definitely don't regret it. thoughtbot was a close second in terms of wonderful professional experiences. But running my own thing has been the most interesting professional thing I've done by a big margin. It has also been more stressful. And, Chad, I don't know if you remember, I think, like, maybe eight years ago, you tweeted something like, if you want to sleep well at night, and, like, value that, like, peace of mind, like, don't start a company or something. I have experienced that. CHAD: [laughs] BEN: A lot more, yeah, like waking up in the middle of the night worrying about things. It feels a little bit like the highs are higher; the lows are lower. Being an employee somewhere, it's like, if this company fails, I know I can go get another job, right? Like, you're a developer. You're extremely employable. But as the owner of the company, if the company fails, like, a huge chunk of your net worth is gone. Like, this thing you poured your life into is gone. It's way more stressful and traumatic to have that happen, or have that threatened to be happening, or just imagine that happening. So, overall, I have found the trade-off to be totally worth it. It's awesome to make your own decisions and chart your own path. And when it works, it can work in a way that being a salaried employee can't. So, I'm happy with those trade-offs. But I think that is a good question for people to ask themselves as they consider doing something like this is, like: is that the kind of trade-off that you want to make? Because it has significant downsides for sure. WILL: I am a big fan of Tuple also. I love it. It [inaudible 10:08] easy, especially with remote work. You hit the jackpot with COVID and remote work, so kudos for that [laughs]. Was there anything...because I know from our previous companies, about over...hopefully a lot more of the good stuff than the bad stuff. But was there anything that you learned? Because you were at thoughtbot for seven years. Was there anything that you're like, oh my gosh, I learned that, and it's helped me till this day while I'm running my company? BEN: Yeah, quite a bit, actually. I think it'd be hard to tease apart exactly which lessons, but I do...so I ran Upcase for thoughtbot and also FormKeep. So, I got a chance to kind of run a small division of the company, while still being a normal employee and, like, having not much of that risk. And I think that was a really wonderful opportunity for me to, like, practice the skills that I was interested in. Just, like, how do you market a thing? How do you design a product and have it be good? How do you prioritize user feedback? There were a ton of lessons from those days that I feel like made me better at running our company when we actually took a shot at it. So, there were, like, the specific things that I learned by the work I was doing there. But then just, like, I mean, I think I am the programmer I am today because of, like, the weekly dev discussions that happened. Like, spending so much time with Joe Ferris and, like, trying to copy as much of his brain as possible, like, really, like, imprinted on me as, like, a programmer. And also, just, like, a lot of the sort of cultural things from my time at thoughtbot of, like, you should be sharing the things you're learning. Like, writing blog posts is a great use of time. Like, doing open-source work is a great use of time. And maybe you can't directly trace how doing, like, working in public or sharing information benefits the company. It's hard to, like, attribute it from a marketing sense. But if you sort of have faith that in the large, it's going to work out, it probably will. That feels like a thoughtbot lesson to me, and I think it has served us really well; where I recorded a weekly podcast for a long time called The Art of Product. I'm recording a new podcast called Hackers Incorporated with Adam Wathan of Tailwind fame. And I don't ever think, like, hmm, how many new leads do we think we get per episode, and how many hours has that taken? What's the ROI? I just have this sort of reflex that I developed from thoughtbot time of, like, you should be putting stuff out there, or you should be giving back. You should help other people. And that will probably help your business and make it work in the long term. CHAD: That's a good lesson [laughs]. One of the other things, you know, while you were a host of Giant Robots, you were the first host. I remember, you know, encouraging you to be the first host, and I think we talked about that in one of the episodes along the way. But we also transitioned the format a little bit, especially as you started to work on products here; you know, it was more about the building of those products and following along with those. And one of the things that sort of half-jokingly defined, I think, your impact on a lot of products was pricing, experimenting with pricing, learning about pricing, increasing prices more than people were maybe comfortable doing so. How has that worked out with Tuple, pricing in particular? BEN: It's really hard to say. It's hard to know what, like, the other path would have been through the world-. We sort of decided from, like, the early days that we wanted to have, like, a fairly premium price. Like, we wanted to be the product that was really good and was, like, a little bit annoyingly expensive, but you still paid for it because it felt worth it. And I think people could debate in both directions whether we nailed that or not. We have had a price increase that we ended up rolling back. We went, like, a little too far one time and said, "You know what? I think we're a little bit over," and we reverted that. But I would say even today, we are still a fairly pricey product. I mean, I'm pretty happy with how the company has done. I can't prove to you that, like, if the price were half what it is, we would have, you know, better success or not. CHAD: I think it'd be very hard to make the argument that if it was half that, you would have double the number of customers. BEN: Yeah, that's probably not true. CHAD: Not with the customers that you have, who are companies that will pay for products that they use as much as Tuple. BEN: Yeah, I'm happy serving the kind of companies, and they end up being mostly tech companies that really value developer happiness. When their developers come to them and they say, "We don't want to pair over Zoom. We like this thing. It's better. It feels nicer to use," they say, "Okay," and they buy the tool for them. There are places where that's not the case. And they say, "We already have a thing that does screen sharing. You're not allowed to buy this." We don't invest a lot of time trying to sell to those people or convince them that they're wrong. And I'm pretty happy serving sort of the first group. CHAD: So, you've mentioned that you've still been podcasting. To be honest, I didn't realize you were starting something new. Is it live now? BEN: It is live now, yeah. CHAD: Awesome. Where can people find that? BEN: hackersincorporated.com. It's about the transition from developer to founder, which is kind of what we've been touching on here. Yeah, hopefully, the audience is developers who want to start something or have started something who are maybe a little bit further behind progression-wise. And it's kind of, like, I have some lessons, and Adam has some lessons, and, you know, we don't think that we're experts. But sometimes it's useful to just hear, like, two people's story and sort of see, like, what seemingly has worked for them. So, we've been trying to share things there. And I think people will find it useful. VICTORIA: I was going to ask you for a lesson, maybe give us a little sample about how would you advise someone who's built a product and wants to market it, and it's targeted towards developers since you mentioned that previously as well. BEN: Yeah, in a way, the question already contains a problem. It's like, oh, I built the product; now how do I market it? It's a little bit indicative of a very common failure mode for developers, which is that. They sort of assume, okay, after you make the product, you then figure out how you're going to market it. And marketing is sort of a thing you layer on later on when you realize that just, like, throwing it on Twitter or Product Hunt didn't really work. When we started building Tuple, I was out there marketing it already. So, I had two co-founders, so this is a luxury I had. My two co-founders were writing code, and I was out doing stuff. I was recording podcasts. I was tweeting about things. I was making videos. I was giving conference talks. And I was getting people to hear about our product well before it was done. In fact, I was even selling it. I was taking pre-orders for annual subscriptions to the app while it was still vaporware. So, I would say, like, you basically can't start marketing too early. If you start marketing early and no one really cares, well, then you don't really have to build it probably. I would actually even go a little further and say, like, I started marketing Tuple before we had a product available. But in reality, I started marketing Tuple seven or so years before that when I started publishing things through thoughtbot. It's like when I was traveling around giving talks about Ruby, and when I was making screencasts about Vim, and when I was running Upcase, I was, over time, building an audience. And that audience was useful for thoughtbot, and it also was useful for me so that when I left, I had something like 10,000 Twitter followers or something, a few thousand people on our mailing list. But there were a lot of developers that already sort of knew me and trusted me to make fairly good things. And so, when I said, "Hey, I've made a new thing, and it's for you," I really benefited from those years of making useful content and trying to be useful on the internet. And in the early days, we had people sign up, and they would say, "I don't even really think I'm going to use this. But I've learned so much from you over the years that I want to support you, so I'm going to pay for a subscription." VICTORIA: I like your answer because I think the same thing when people ask me, like, because I am an organizer for Women Who Code, and I know all these great people from showing up for years in person months over months. And so, then people will ask, "Oh, how do I recruit more women in my company?" I'm like, "Well, you got to start showing up [laughs] now and do that for a couple of years, and then maybe people will trust you," right? So, I really like that answer. WILL: How has your relationship with Chad continued to grow since you left? Because seven years at the company is a lot. And it seems like you're still on really, really good terms, and you're still friends. And I know that doesn't happen at every company. BEN: I mean, it was tough deciding to leave. I think, like, both of us felt pretty sad about it. That was the longest I'd ever worked anywhere, and I really enjoyed the experience. So, I think it was tough on both sides, honestly. But we haven't kept in that much touch since then. I think we've emailed a handful of times here and there. We're both sociable people, and we sort of get each other. And there's a long history there. So, I think it's just easy for us to kind of drop back into a friendly vibe is sort of how I feel about it. CHAD: Yeah. And the way I explain it to people, you know, when you're leading a company, which Ben and I both are, you put a lot of energy into that and to the people who are on that team. If you're doing things right, there's not really hard feelings when someone leaves. But you need to put in a lot of effort to keep in touch with people outside of the company and a lot of energy. And, to be honest, I don't necessarily do as good a job with that as I would like because it's a little bit higher priority to maintain relationships with them, the people who are still at thoughtbot and who are joining. BEN: What you're saying is I'm dead to you [laughter]. That's CEO, for you're dead to me. CHAD: No. It's just...no hard feelings. BEN: Totally. CHAD: I think one of the things that has been great about the show over the years is that we haven't been afraid to change the format, which I think has been important to keeping it going. So, there is sort of; in fact, the website now is organized into seasons. And I went back and re-categorized all the episodes into seasons. And when the seasons were made up of, like, sort of the format of the show or particular hosts...when we started, it was just an interview show, and it was largely technical topics. And then we started The Bike Shed, and the technical topics sort of moved over there. But it also went with your interests more under the product and business side. Then you started working on products at thoughtbot, so it started to go even more in that. And I think Chris joined you on the show, and that was sort of all about those topics. BEN: Yeah, that makes sense. I think if you don't let the hosts kind of follow their interests, they're going to probably burn out on the thing. It's not fun to force yourself, I think, to record a podcast. CHAD: Yeah. And then when you left, you know, I took over hosting and hosted by myself for a while, went back to the interview format, but then was joined by Lindsey for a little while. We experimented with a few different things: one, interviews, but then we did a whole, just under a year, where we followed along with three companies. And each month, we would have an interview episode where we talked to them, all three companies, about the same topic. And then, we also did an episode with just Lindsey and I talking about that topic and about what we learned from the startup companies that we were following along with for the year. And now we're back to interview freeform, different guests, different topics. It seems like we're going to stick with that for a little while. But, obviously, as Will and Victoria have said, like, we'll probably change it again in some way, you know, a year, two years, three years from now. VICTORIA: Yeah, and I'm definitely bringing my interest around DevOps and platform engineering, so you'll see more guests who have that focus in their background. And with that, sometimes my interview style is more; how do I ask a question that I can't read from your developer docs and that I might not understand the answer to? [laughs] That's kind of where I like to go with it. So yeah, I'm really excited about...it's probably one of my favorite parts of my job here at thoughtbot because I get to meet so many interesting people. And, hopefully, that's interesting to everyone else [laughs] and our guests, yeah. BEN: Totally. Well, I dramatically underestimated how awesome it would be to meet all kinds of cool people in the industry when I started the podcast. I didn't truly connect in my head, like, wait a second, if I have a 45-minute conversation with, like, a lot of prominent, awesome people in our field, that's going to be really interesting and useful for me. So, I think, yeah, it's nice to be in the hosting seat. VICTORIA: And it's so surprising how I'll meet someone at a conference, and I'll invite them onto the podcast. And the way it winds up is that whatever we're talking about on the show is directly relevant to what I'm working on or a problem that I have. It's been incredible. And I really appreciate you for coming back for our 500th Episode here. CHAD: Ben, thanks very much again for joining us, and congratulations on all the success with Tuple. And I wish you the best. BEN: Thank you so much. Thanks for being a continuing customer. I really appreciate it. CHAD: Next, we caught up with Chris Toomey, who had a run as co-host of the show with Ben throughout 2016. CHRIS: Hi there. Thanks for having me. So, we're talking with all of the past hosts. I know you joined the show, and you were on it with Ben. And then you moved over to The Bike Shed, right? CHRIS: Yeah. So, I had co-hosted with Ben for about six months. And then I think I was transitioning off of Upcase, and so that ended sort of the Giant Robots “let's talk about business” podcast tour for me. And then, I went back to consulting for a while. And, at some point, after Derek Prior had left, I took over as the host of The Bike Shed. So, I think there was probably, like, a year and a half, two-year gap in between the various hostings. CHAD: Are you doing any podcasting now? CHRIS: I'm not, and I miss it. It was a lot of fun. It was, I think, an ideal medium for me. I'm not as good at writing. I tend to over-edit and overthink. But when you get me on a podcast, I just start to say what's in my head, and I tend to not hate it after the fact. So [chuckles], that combination I found to be somewhat perfect for me. But yeah, lacking that in my current day-to-day. CHAD: Well, what's been taking up your time since you left? CHRIS: I had decided it was time to sort of go exploring, try and maybe join a startup, that sort of thing. I was sort of called in that direction. So, just after I left thoughtbot, I did a little bit of freelancing, but that was mostly to sort of keep the lights on and start to connect with folks and see if there might be an opportunity out there. I was able to connect with a former thoughtbot client, Sam Zimmerman, who was looking to start something as well. And so, we put our act together and formed a company called Sagewell, which was trying to build a digital financial platform for seniors, which is a whole bunch of different complicated things to try and string together. So, that was a wonderful experience. I was CTO of that organization. And I think that ran for about two and a half years. Unfortunately, Sagewell couldn't quite find the right sort of sticking point and, unfortunately, shut down a little bit earlier in this year. But that was, I would say, the lion's share of what I have done since leaving thoughtbot, really wonderful experience, got to learn a ton about all of the different aspects of building a startup. And I think somewhat pointedly learned that, like, it's messy, but I think I do like this startup world. So, since leaving Sagewell, I've now joined a company called August Health, which has a couple of ex-thoughtboters there as well. And August is post their Series A. They're a little bit further along in their journey. So, it was sort of a nice continuation of the startup experience, getting to see a company a little bit further on but still with lots of the good type of problems, lots of code to write, lots of product to build. So, excited to be joining them. And yeah, that's mostly what's taking up my time these days. CHAD: So, I know at Sagewell, you made a lot of technical architecture, team decisions. It was Rails in the backend, Svelte in the frontend, if I'm not mistaken. CHRIS: Yep, that's correct. CHAD: You know, hindsight is always 2020. Is there anything you learned along the way, or given how things ended up, that you would do differently? CHRIS: Sure. I was really happy with the tech stack that we were able to put together. Svelte was probably the most out there of the choices, I would say, but even that, it was sort of relegated to the frontend. And so, it was a little bit novel for folks coming into the codebase. Most folks had worked in React before but didn't know Svelte. They were able to pick it up pretty quickly. But Inertia.js was actually the core sort of architecture of the app, sort of connected the frontend and the backend, and really allowed us to move incredibly quickly. And I was very, very happy with that decision. We even ended up building our mobile applications, both for iOS and Android. So, we had native apps in both of the stores, but the apps were basically wrappers around the Rails application with a technology similar to Turbolinks native–if folks are familiar with that so, sort of a WebView layer but with some native interactions where you want. And so, like, we introduced a native login screen on both platforms so that we could do biometric login and that sort of thing. But at the end of the day, most of the screens in the app didn't need to be differentiated between a truly native mobile app and what like, mobile WebView would look like. So, we leaned into that. And it was incredible just how much we were able to do with that stack and how quickly we were able to move, and also how confidently we were able to move, which was really a nice thing. Having the deep integration between the backend and the frontend really allowed a very small team to get a lot done in a short time. CHAD: Does that code live on in any capacity? CHRIS: No. CHAD: Oh. How does that make you feel? [chuckles] CHRIS: It makes me feel very sad, I will say. That said, I mean, at the end of the day, code is in service of a business. And so, like, the code...there are, I think, probably a couple of things that we might be able to extract and share. There were some interesting...we did some weird stuff with the serializers and some, like, TypeScript type generation on the frontend that was somewhat novel. But at the end of the day, you know, code is in service of a business, and, unfortunately, the business is not continuing on. So, the code in the abstract is...it's more, you know, the journey that we had along the way and the friends we made and whatnot. But I think, for me, sort of the learnings of I really appreciate this architecture and will absolutely bring it to any new projects that I'm building from, you know, greenfield moving forward. VICTORIA: I'm curious what it was like to go from being a consultant to being a big player in a startup and being responsible for the business and the technology. How did that feel for you? CHRIS: I would say somewhat natural. I think the consulting experience really lent well to trying to think about not just the technical ramifications but, you know, what's the business impact? How do we structure a backlog and communicate about what features we want to build in what order? How do we, you know, scope a minimal MVP? All those sorts of things were, I think, really useful in allowing me to sort of help shape the direction of the company and be as productive of an engineering team as we could be. CHAD: A lot of the projects you worked on at thoughtbot were if not for startups, helping to launch new products. And then, a lot of the work you did at thoughtbot, too, was on Upcase, which was very much building a business. CHRIS: Yes. I definitely find myself drawn in that direction, and part of like, as I mentioned, I seem to be inclined towards this startup world. And I think it's that, like, the intersection between tech and business is sort of my sweet spot. I work with a lot of developers who are really interested in getting sort of deeper into the technical layers, or Docker and Kubernetes and orchestration. And I always find myself a little bit resistant to those. I'm like, I mean, whatever. Let's just...let's get something out there so that we can get users on it. And I am so drawn to that side, you know, you need both types of developers critically. I definitely find myself drawn to that business side a little bit more than many of the folks that I work with, and helping to bridge that gap and communicate about requirements and all those sort of things. So, definitely, the experience as a consultant really informed that and helped me have sort of a vocabulary and a comfort in those sort of conversations. WILL: How did Upcase come about? Because I know I've talked to numerous people who have gone through Upcase. I actually went through it, and I learned a ton. So, how did that come about? CHRIS: I think that was a dream in Ben Orenstein's eye. It started as thoughtbot Learn many, many years ago. There was a handful of workshops that had been recorded. And so, there were the video recordings of those workshops that thoughtbot used to provide in person. Ben collected those together and made them sort of an offering on the internet. I think Chad, you, and I were on some podcast episode where you sort of talked about the pricing models over time and how that went from, like, a high dollar one-time download to, like, $99 a month to $29 a month, and now Upcase is free. And so, it sort of went on this long journey. But it was an interesting exploration of building a content business of sort of really leaning into the thoughtbot ideal of sharing as much information as possible, and took a couple of different shapes over time. There was the weekly iterations of the video series that would come out each week, as well as the, like, longer format trails, and eventually some exercises and whatnot, but very much an organic sort of evolving thing that started as just a handful of videos and then became much more of a complete platform. I think I hit the high points there. But, Chad, does that all sound accurate to you? CHAD: Yeah, I led the transition from our workshops to Learn, which brought everything together. And then, I stepped away as product manager, and Ben took it the next step to Upcase and really productized it into a SaaS sort of monthly recurring billing model and took it over from there. But it still exists, and a lot of the stuff there is still really good [laughs]. CHRIS: Yeah, I remain deeply proud of lots of the videos on that platform. And I'm very glad that they are still out there, and I can point folks at them. VICTORIA: I love that idea that you said about trying to get as much content out there as possible or, like, really overcommunicate. I'm curious if that's also stayed with you as you've moved on to startups, about just trying to get that influence over, like, what you're doing and how you're promoting your work continues. CHRIS: I will say one of the experiences that really sticks with me is I had followed thoughtbot for a while before I actually joined. So, I was reading the blog, and I was listening to the podcasts and was really informing a lot of how I thought about building software. And I was so excited when I joined thoughtbot to, like, finally see behind the curtain and see, like, okay, so, what are the insider secrets? And I was equal parts let down...actually, not equal parts. I was a little bit let down but then also sort of invigorated to see, like, no, no, it's all out there. It's like, the blog and the open-source repos and those sort of...that really is the documentation of how thoughtbot thinks about and builds software. So, that was really foundational for me. But at the same time, I also saw sort of the complexity of it and how much effort goes into it, you know, investment time Fridays, and those sort of things. Like, a thoughtbot blog post is not a trivial thing to put up into the world. So many different people were collaborating and working on it. And so, I've simultaneously loved the sharing, and where sharing makes sense, I've tried to do that. But I also recognize the deep cost. And I think for thoughtbot, it's always made sense because it's been such a great mechanism for getting the thoughtbot name out there and for getting clients and for hiring developers. At startups, it becomes a really interesting trade-off of, should we be allocating time to building up sort of a brand in the name and getting ourselves, you know, getting information out there? Versus, should we be just focusing on the work at hand? And most organizations that I've worked with have bias towards certainly less sharing than thoughtbot, but just not much at all. Often, I'll see folks like, "Hey, maybe we should start a blog." And I'm like, "Okay, let's just talk about how much effort that [laughs] actually looks like." And I wonder if I'm actually overcorrected on that, having seen, you know, the high bar that thoughtbot set. CHAD: I think it's a struggle. This is one of my [laughs] hot topics or spiels that I can go on. You know, in most other companies, that kind of thing only helps...it only helps in hiring or the people being fulfilled in the work. But at most companies, your product is not about that; that's not what your business is. So, having a more fulfilled engineering team who is easier to hire—don't get me wrong, there are advantages to that—but it doesn't also help with your sales. CHRIS: Yes. CHAD: And at thoughtbot, our business is totally aligned with the people and what we do as designers and developers. And so, when we improve one, we improve the other, and that's why we can make it work. That is marketing for the product that we actually sell, and that's not the case at a SaaS software company. CHRIS: Yes, yeah, definitely. That resonates strongly. I will say, though, on the hiring side, hiring at thoughtbot was always...there was...I won't say a cheat code, but just if someone were to come into the hiring process and they're like, "Oh yeah, I've read the blog. I listen to the podcast," this and that, immediately, you were able to skip so much further into the conversation and be like, "Okay, what do you agree with? What do you disagree with? Like, let's talk." But there's so much. Because thoughtbot put so much out there, it was easy to say, like, "Hey, this is who we are. Do you like that? Is that your vibe?" Whereas most engineering organizations don't have that. And so, you have to try and, like, build that in the context of, you know, a couple of hour conversations in an interview, and it's just so much harder to do. So, again, I've leaned in the direction of not going anywhere near thoughtbot's level of sharing. But the downside when you are hiring, you're like, oh, this is going to be trickier. CHAD: Yeah. One of the moments that stands out in my mind, and maybe I've told this story before on the podcast, but I'll tell it again. When we opened the New York studio, it was really fast growing and was doing a lot of hiring. And one of the people who had just joined the company a couple of weeks before was doing an interview and rejected the person was able to write an articulate reason why. But it all boiled down to this person is, you know, not a fit for thoughtbot. Based on what they were able to describe, I felt very confident with the ability or with the fact that they were able to make that call, even though they had been here only a couple of weeks, because they joined knowing who we were, and what we stand for, and what our culture and our values are, and the way that we do things, and all that kind of thing. And so, yeah, that's definitely a huge benefit to us. VICTORIA: I've certainly enjoyed that as well, as someone who hires developers here and also in meeting new companies and organizations when they already know thoughtbot. That's really nice to have that reputation there, coming from my background—some really more scrappier startup kind of consulting agencies. But, you know, I wanted to talk a little bit more about your podcasting experience while you're here. So, I know you were on both The Bike Shed and Giant Robots. Which is the better podcast? [laughter] So, what's your...do you have, like, a favorite episode or favorite moment, or maybe, like, a little anecdote you can share from hosting? CHRIS: Well, I guess there's, like, three different eras for me in the podcasting. So, there's Giant Robots with Ben talking more about business stuff, and I think that was really useful. I think it was more of a forcing function on me because I sort of...Both Ben and I were coming on; we were giving honest, transparent summaries of our, like, MRR and stats and how things were growing, and acted as sort of an accountability backstop, which was super useful but also just kind of nerve-wracking. Then, when I joined the Bike Shed, the interviewing sequence that I did each week was just a new person that I was chatting with. And I sort of had to ramp them up on, hey, here's a quick summary on how to think about podcasting. Don't worry, it'll be great. Everybody have fun. But I was finding each of the guests. I was sort of finding a topic to talk about with them. So, that ended up being a lot more work. And then, the last three years chatting with Steph that was by far my favorite. There was just such a natural back-and-forth. It really was just capturing the conversations of two developers at thoughtbot and the questions we would ask each other as we hit something complicated in a piece of code or, "Oh, I saw this, you know, article about a new open-source repository. What do you think about that?" It was so much easier, so much more natural, and, frankly, a lot of fun to do that. And, two, I actually do have an answer to the favorite podcast episode, which is the first episode that Steph was ever on. It was before she actually joined as a co-host. But it was called “What I Believe About Software.” And it was just this really great, deep conversation about how we think about software. And a lot of it is very much, like, thoughtbot ideals, I would say. But yeah, Steph came in and just brought the heat in that first episode, and I remember just how enjoyable that experience was. And I was like, all right, let's see if I can get her to hang out a little bit more, and, thankfully, she was happy to join. WILL: What was your favorite position, I guess you can call it? Because you say you like the mixture of business and, you know, development. So, you've been in leadership as development director, CTO. You've been a web developer. You've been over content, like, with Upcase. What was your favorite position [inaudible 16:43] you were doing, and why was it your favorite? CHRIS: The development director role feels like sort of a cheating answer, but I think that would be my answer because it contained a handful of things within it. Like, as development director, I was still working on client projects three days a week. And then, one day a week was sort of allocated to the manager-type tasks, or having one-on-ones with my team sort of helping to think about strategy and whatnot. And then, ideally, still getting some amount of investment time, although the relative amounts of those always flexed a little bit. Because that one sort of encompassed different facets, I think that's going to be my answer. And I think, like, some of what drew me to consulting in the first place and kept me in that line of work for seven years was the variety, you know, different clients, as well as, even within thoughtbot, different modes of working in podcasts or video. Or there was a bootcamp that I taught, a session of Metis, which that was a whole other experience. And so, getting that variety was really interesting. And I think as sort of a tricky answer to your question, the development director role as a singular thing contained a multitude, and so I think that was the one that would stand out to me. It's also the most, you know, the one that I ended on, so [laughs] it might just be recency bias, but yeah. VICTORIA: Oh, I love that. Is there anything else that you would like to promote on the podcast today? CHRIS: No, although as you ask the question, I feel like I should, I don't know, make some things to promote, get back into some, I don't know, content generation or something like that. But for now, no. I'm, you know, diving into the startup life, and it's a wonderful and engrossing way to do work, but it does definitely take up a lot of my headspace. So, it's an interesting trade-off. But right now, I don't know; if folks are online and they want to say hi, most of my contact information is readily available. So, I would love to say hi to folks, anyone that listened in the past or, you know, has any thoughts in the now. Would love to connect with folks. But otherwise, yeah, thank you so much for having me on. CHAD: In 2017, I took over from Ben as solo host of the show but was joined by Lindsey Christainson as cohost in 2019. After some time away from thoughtbot, Lindsey is back with us and we sat down to catch up with her. VICTORIA: Why don't you tell me about your current role with thoughtbot? LINDSEY: I am currently supporting marketing and business development at thoughtbot, as well as working as a marketing consultant for thoughtbot clients. VICTORIA: Great. And I understand that you had worked with thoughtbot many years ago, and that's when you also came on as a co-host of Giant Robots. Is that right? LINDSEY: Yeah, a couple of years ago. I left thoughtbot in spring of 2021. And I forget how long my stint was as a co-host of Giant Robots, but over a year, maybe a year and a half, two years? CHAD: Yeah, I think that's right. I think you started in 2019. LINDSEY: Yeah. Yeah, that sounds right. And Chad and I were co-hosts, I think, similar to the setup today in which sometimes we hosted together, and sometimes we were conducting interviews separately. CHAD: And then we sort of introduced a second season, where we followed along with a batch of companies over the course of the entire season. And that was fun, and we learned a lot. And it was nice to have consistent guests. LINDSEY: Yeah, that was a lot of fun. I really liked that format. I don't know; they almost were, like, more than guests at that point. They were just like other co-hosts [laughs] that we could rely on week in, week out to check in with them as they're working on early-stage companies. So, every time we checked in with them, they usually had some new, exciting developments. WILL: I really like that idea. How did y'all come up with that? CHAD: I'm not sure. I think a few years before I had taken over hosting of the show, and I forget...my memory maybe is that I went to Lindsey and said, "You know, let's do something different." But I'm not sure. Does that match your memory, Lindsey? LINDSEY: Yeah, I think there were two main drivers; one was I think you were feeling like you were having similar conversations in the interviews every time. Like, you couldn't get to a certain depth because every time you were interviewing someone, you were doing, like, the, "Well, tell me your founding story." And, you know, how did you raise funding? It kind of got a little bit repetitive. And then, on the side, the few we had done together, I think we both really enjoyed. So, we were thinking, like, what's the format in which the two of us could co-host together more regularly? Because I'm a pleasure to talk to [laughter]. I think you were like, I need to talk to Lindsey more. [inaudible 3:13] VICTORIA: What is your hosting style? How would you describe your approach to hosting a podcast? LINDSEY: I mean, obviously, it's a podcast about products and business. I think as a marketer, I am, you know, drawn a lot to the marketing side, so tending to ask questions around go-to-market audience, users. That's always just, like, a particular interest of mine. But then also, like, the feelings. I love asking about the feelings of things, you know, how did it feel when you started? How did it feel when you made this tough decision? So, that's another thing I think I noticed in my interviews is asking about some of the emotions behind business decisions. VICTORIA: And I like hearing about how people felt at the time and then how they felt afterwards [laughs]. And, like, how people around them supported each other and that type of thing. That's really fun. I'm curious, too, from your marketing background and having to do with podcasts like; some founders, I think, get the advice to just start a podcast to start building a community. But I'm curious on your thoughts about, like, how does podcasting really play into, like, business and marketing development for products? LINDSEY: Oh yeah. It's become definitely, like, a standard channel in B2B these days. I feel like that it's pretty typical for a company to have a podcast as one way that they engage their audience and their users. In marketing, you're really vying for people's attention, and people's attention span is getting shorter and shorter. So, like, if you have an ad or a blog, you're getting, like, seconds, maybe minutes of someone's attention. And whereas something like a podcast offers a unique channel to have someone's undivided attention for, you know, 30 minutes, an hour, and if you're lucky, you know, checking back in week over week. So, it became a really popular method. That said, I think you're probably also seeing the market get saturated [laughs] with podcasts now, so some diminishing returns. And, you know, as always, kind of looking for, you know, what's the next way? What's the next thing that people are interested in in ways to capture their attention? CHAD: What is the next thing? LINDSEY: I don't know, back to micro-content? TikTok videos -- CHAD: Yeah, I was going to say TikTok, yeah. LINDSEY: Yeah, you know, 10-30 seconds, what can you communicate? VICTORIA: I see people live streaming on Twitch a lot for coding and developer products. LINDSEY: Yeah, I think we've seen some of that, too. We've been experimenting more at thoughtbot with live streaming as well. It's another interesting mechanism. But yeah, I don't know, it's interesting. It's another form of, like, community and how people engage with their communities. So, it's always evolving. It's always evolving, and sometimes it's not. Sometimes, people just do want to get in a room together, too, which is always interesting. WILL: What has been, in your experience, the good the bad? Like, how do you feel about the way that it has shifted? Because I think you started in, like, 2000, like, kind of earlier 2000, 2005, something around there. And it was totally different than now like you're saying. Because I feel like, you know, Channel 5 30-second ad, you know, with some of the marketing depending on what you're doing, to now to where you're, like, you're paying influencers to advertise your product, or you're doing an ad. Or it's more social media-driven and tech-driven. What has been your opinion and feelings on the way that it has grown and evolved? LINDSEY: Marketing, in general, yeah, I graduated college in 2005 and started my marketing career. And yeah, you could, like, actually get people to click on banner ads back then, which was pretty [inaudible 07:14] [laughs]. WILL: I forgot about banner ads [laughs]. LINDSEY: I don't know, yeah. I don't know. In order for myself to not just get too frustrated, I think I've got to, like, view it as a game kind of. What new things are we going to try? You know, what do we see work? But it can really depend. And I've always been in B2B side of things. And consumer, I'm sure, has its own kind of evolution around how people engage and how they consume content and byproducts. But in B2B, you know, it can really depend on industry too. You know, I'm working with a client right now in the senior living space, and they're really big in in-person conferences. So, that's how people consume, get a lot of their information and, make connections, and learn about new products. So, it's been interesting to work in an industry that what might be considered, like, a little bit more old-school channels are still effective. And then just thinking about how you weave in the new channels with the existing ones without ignoring them. They might get information in conferences, but they're still a modern human who will then, you know, search online to learn more, for example. VICTORIA: It reminds me of a phrase I like to say, which is that, like, technology never dies; you just have more of it. There's just more different options and more different ways to do things. And some people are always, you know, sometimes you have to be flexible and do everything. CHAD: So, tell us more about what you did in between...after you left thoughtbot, what did you do? LINDSEY: I was heading up B2B marketing for a company called Flywire, which is headquartered in Boston but is a global company now. And they were just kind of starting their B2B business unit, which, as I mentioned, B2B is my personal specialty. I had been connected to their CMO through the Boston startup community. And yeah, I was helping them kind of launch their go-to-market for B2B. The industries they were in before...they got their start in higher education and then expanded in healthcare and found a niche in luxury travel, and then we were figuring out the B2B piece. But yeah, I was there for about a year and a half. They actually went public the second week I was there, which was an interesting [laughs] experience. I knew they were, like, on that journey, but it was kind of funny to be there the second week, and people were, like, "Congrats." And I was like, "Well, I definitely didn't have anything to do with it because I just finished my onboarding, but thank you," [laughs]. CHAD: One of the things that really impressed me when you joined thoughtbot was the way in which you learned about who we were and really internalized that in a way where you were then able to pretty meaningfully understand our market, our positioning in the market, and come up with new strategies for us. I assume that's something you're good at in general [laughs]. How do you approach it? How did you approach it when you joined Flywire, for example? And how was it the same or different than how you approached thoughtbot? LINDSEY: Ooh, yeah, that's a good question. And I appreciate that comment because it's difficult. But I think, yeah, with any new organization that I'm joining, you know, I think starting out with your kind of mini-listening tour of your key stakeholders across, you know, the different departmental focuses to get a sense of, what are the challenges? What are the opportunities? It's actually like, you know, it's the SWOT analysis, kind of trying to fill in your own mind map of a SWOT analysis of where the company is. What are the major hurdles you're facing? Where are people trying to go? What have they tried that's worked? What have they tried that's failed? But then, like, I think for the culture component, I think a part of that maybe is, like, feel, and maybe something that I do have a knack for. Again, maybe this is, like, you know, emotional intelligence quotient, where it's like, you know, but it's the company, you know, who is this company? What is important to them? How do they work and go about things? I know thoughtbot is certainly very unique, I think, in that arena in terms of being, like, a really value-driven company, and one where especially, like, marketing and business work is, like, distributed across teams in a really interesting way. You know, I'm sure the fact that it fascinated me and was something I could get passionate and get behind was something that also helped me understand it quickly. CHAD: I was excited that...or it was sort of a coincidence because I had reached out to you and without realizing that you had left Flywire. And Kelly, who had been doing a combined sales and marketing role, was going on parental leave. And so, it was fortuitous [laughs] that you were able to come back and help us and provide coverage, like, Kelly was out. LINDSEY: Yeah, it definitely felt like stars aligned moment, which, you know, I'm pretty woo-woo, so I believe in [laughter]...I believe in that kind of thing. You know, yeah, it was wild. It really did feel like your email came out of nowhere. And, you know, I mentioned it, obviously, to my partner and my friends. And they were like, "Oh, he definitely knows, like, that you left your last company." And I'm like, "I actually don't think he does [laughter]. I actually don't think he does." Yeah, and then we started chatting about me coming back to help. And it was great. thoughtbot makes it hard to work anywhere else [laughs]. So, I was happy to come back. I missed the team. CHAD: And one of the exciting things, and you've mentioned it, is you're not just doing marketing for thoughtbot now. We have started to offer your services to our clients. LINDSEY: Yeah, I'm super excited about this. And it's something I'd started thinking about. I had decided to take some time off between Flywire and my next thing and had started thinking about doing marketing, consulting. And as I'm doing that, I'm thinking a lot about how thoughtbot does consulting and, you know, wanting to emulate something like that. So, I started back up at thoughtbot. That wasn't part of the plan. I was just going to, you know, fill in for Kelly and help with marketing things. But then, you know, a good opportunity arose to work on a client, and I was really excited. When, you know, Chad, you and I chatted through it, we came to the conclusion that this was something worth exploring under the, you know, thoughtbot umbrella. And it's been a really great experience so far. And we now have brought on another client now. And if you're listening and need early-stage B2B marketing support, reach out to lindsey@thoughtbot.com. CHAD: Definitely. And Lindsey is pretty good, so you're going to like it [laughs]. LINDSEY: Yeah, you're going to like the way you look. WILL: Yeah, definitely. Because I can even feel your presence here, you know, coming back. Because even like, you know, the market where it's at now and some of the suggestions that, you know, you've been helping us. For example, like, I do a lot of React Native, and you're like, "Hey, you know, blog posts have done a lot of traction, you know, let's get some more blog posts out in the market to help with the traffic and everything." So, the question I have with that is, like, thank you for even suggesting that because it's, like, those little things that you don't even think about. It's like, oh yeah, blog posts, that's an easy transition to help the market, clients, things like that. But with the market the way it is, what has been your experience working during this time with the market? I don't know if you want to call it struggling, but whatever you want to call it that, it's doing [laughs]. LINDSEY: Yeah, I mean, the economy is difficult now. We also went through a really tough spot when I was here last time. During COVID, you know, we faced a major company challenge. And, I mean, I'll let Chad speak to it, but I would imagine it's probably one of the bigger, like, economic inflection points that you faced. Would you say that? CHAD: Yeah, definitely. The thing about it that made it worse was how quickly it happened. You know, it was something that you didn't see coming, and then, you know, about 40% of our business went away in a single month. That's the kind of thing that was a real shock to the system. I think the thing that made it difficult, too, was then the aspects of COVID, where we were no longer able to go into our studios. We were all working remotely. We were isolated from each other. And so, that made executing on what needed to be done in order to make the company survive additionally challenging. LINDSEY: Yeah, so I think, like, going through that experience, also, and seeing how the team and the leadership team rallied together to get through it. And then, you know, ultimately, I think 2021 and 2022 have, like, really good years. That was a really positive experience. And something I'll definitely take with me for a while is just, like, keeping a cool head and just knowing you have, like, really smart, talented folks with you working on it and that you can get through it. And just, like, doing some, I mean, we relied on what we did best, which was, like, design thinking, using design exercise to think about, like, how we might re-organize the company, or what other services we might try launching, or how might we re-package, you know, larger services into smaller more palatable services when people have, like, kind of tighter purse strings. So, that was, like, a great educational experience, and I think something we just continue to do now: be open to change, be open to changing how we package services, what clients we go after, and coming at it with, like, an agile, experimental mindset and try to find out what works. VICTORIA: I really appreciate that. And it aligns now with the new service we've developed around you and the marketing that you provide. And I'm curious because I've had founders come up to me who say they need help with marketing or they need to, like, figure out their marketing plans. So, say you've met a founder who has this question, like, what questions do you ask them to kind of narrow down what it is they really need and really want to get out of a marketing plan? LINDSEY: I've been thinking about this a lot recently. And, like, obviously, I see other marketing leaders in the market. Marketers like to talk about what they do on LinkedIn [laughs], so I get to...I read a lot about different people's approaches to this. And some people kind of go in and are like, okay, this is what you need. This is how we're going to do it, and they start executing on it. And I really do take a very collaborative approach with founders. I think they're, especially in early stage, they're your most important asset in a way, and a lot of their intuition around the market and the business, you know, it's gotten them to where they're at. And so, I think starting from the point of, like, taking what they view as priorities or challenges, and then helping them better explore them or understand them with my own marketing experience and expertise, to

Building Texas Business
Ep061: Navigating the Entrepreneurial Landscape with Chuck Leblo

Building Texas Business

Play Episode Listen Later Nov 15, 2023 38:29


In today's episode of Building Texas Business, I speak with Chuck Leblo, founder of Interact One. Chuck shares his entrepreneurial journey from working in the corporate world, where he was overwhelmed by paperwork, to starting his own business. He offers valuable lessons learned from launching a side business while employed and the critical decisions that helped him succeed. Chuck leaves us with wisdom on building effective teams and maintaining a balanced lifestyle as an entrepreneur. SHOW HIGHLIGHTS Chuck Leblo, the founder of Interact One, shares his journey from corporate America to entrepreneurship, detailing the reasons behind his transition, such as the overbearing workload in his corporate job. We highlight the importance of having a side gig while starting a business to ensure financial stability. He explains how his unique problem-solving skills were instrumental in the exponential growth of his business from a modest $14,000 to a whopping $140,000 a month. Chuck details his process of tackling a telecom company's issue of short duration calls and building a team of diverse fractionals to aid in problem-solving. He talks about the various challenges he faced as an entrepreneur, including the need to make decisions and pivot the business when necessary. We discuss the impact that COVID-19 had on his business and how he successfully managed to meet the new market needs. He emphasizes the importance of building a successful team of partners and fractionals and shares his experience in helping businesses navigate the remote working world. Chuck shares his experience of managing a large-scale door-to-door team in the deregulated electricity market in Texas and the challenges of the project. He emphasizes the importance of maintaining a healthy work-life balance, sharing his personal experience and strategies. Chuck advises entrepreneurs to treat everyone with respect, earn people's trust, and widen their network to succeed in business. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS Chuck LebloAbout Chuck TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you will meet Chuck Leblo, founder of Interact One. Through Interact One, chuck helps business owners solve problems and stresses the importance of building trust with clients as the foundation to successfully growing your company. All right, chuck, I want to thank you for joining me here on Building Texas Business. It's great to have you on the show. Now it's a pleasure to be here. So I know you've got a business or two you're involved with now and maybe others you've had before. But let's just kind of start by you telling the listeners kind of a little bit about yourself and the company that you've got and what it's known for. Chuck: Well, I'm pretty boring story, but so Interact One. Really, we're known for being problem solvers right, and not the type of problem solvers like I need a guy whacked right. Chris: Yeah, we have to stop the recording right now. Chuck: Right, right right, so I can say use the money, you can be my legal counsel, right. So, but now we solve problems for businesses right, and we've been doing that for about 17, 18 years now. I've always been known as a natural problem solver, from the time of a kid all the way through the military, through my corporate days and into my business. So it was a natural, natural evolution for me to just basically start a company that solves problems. Chris: All right. So I guess you mentioned a lot of, I guess, background going back from your childhood and military service. What was the real inspiration for you to kind of becoming an entrepreneur and actually starting a business? Chuck: Well, so 20 years in corporate America I was. I started out as a problem solver on an engineering basis right In telecom and then I got into the business side and I solved business problems which were more to do with like profitability right. And one day I was sitting there and I looked around my office and I just saw stacks in the business 20 years ago, right, everything wasn't digitized then. So stacks and stacks of invoices and contracts and lease cost, routing guides and all of this kind of stuff and I realized I was wasting my life away just doing that, just spending all my time. I was heavily compensated for what I did. Most people would die to have the job, but I was just like I'm not spending time with my family, I'm working 20 hours, sometimes 20 hours a day, right, and I said enough is enough. So I started my. At that point, you know, I had the funds available and I started my own company. Now, unfortunately in retrospect, I started a company doing basically exactly the same thing that I was doing for the telecom companies. I was controlling profitability for helping other telecom companies do that and then helping fortune 1000 clients and government agencies do it. So so that was like my little step in entrepreneurship, because I was really doing the same thing, but just doing it on my own. Then, about five years later six years later is when I really said no, we got to go full tilt into just solving problems. I want to solve them for all types of businesses. So really it was just sitting there looking at all the boxes and just to press the heck out of me. Chris: Yeah, the guy sounds like you're in a situation where you lost your motivation and you had to kind of look introspectively to go. How can I regain the motivation and inspiration I had about what it is I did? Chuck: Yeah. Chris: I wasn't excited about it anymore. Yeah, so. So you step out on your own, whether it was kind of that in that first venture or the five year later, let's talk about that. I mean, what were some of the, the lessons you learned that you were like, oh, I wish I to someone would have told me this. Right, it's like I gotta imagine some things kind of hit you in the face and you had to learn to adapt really quick to now you know, owning your own show. Chuck: Yeah, so the first thing I learned was when I took that first step, right where I owned the company, doing exactly what I was doing before, and what I learned was one it's feast or famine out there, right, as a consultant. It was a. It was feast or famine. The second thing I learned was it's okay to keep your toe in the corporate pond, right. So what I would do is, during those types of famine, I would go get a little gig you know, part time gig help a company out to pay the bills. One of the examples is we did an analysis for state government where we looked at five years of their telecom bills going back. We got them about five million bucks back, okay. So we renegotiated all their contracts, saved them about three million dollars a year going forward. Wow, it took us two years to do that analysis and to start getting that money back and we were paid on a contingency basis. We got a percentage of what we got them back. So two years without money. So if I hadn't known at the time that it's okay, it's okay to be, it's okay to be a part time entrepreneur, and in most cases it's better to get your side gig going before you take a full time side, before you take that side gig full time yeah. Chris: Yeah, that's interesting perspective because I don't know that. I've heard people use that term before, but I think there's some truth to it about that. Okay to be a part time entrepreneur, to kind of get your legs underneath yeah. Chuck: Now most people think that they have a side gig and then that side gig becomes their new job. I looked at it as that, that my business was my job, that I looked at the corporate America side as the side gig. Chris: Yeah, okay. So so you get you kind of learn that lesson and you move forward. What were some of the things, when you look back, that you feel like were the decisions you made that kind of set the foundation for your future success Because anything right, you can use any analogy you want, but also you got to have a strong foundation to be able to build from Anything that comes to mind that you really look back on and are kind of proud of the early decisions you made, in the way you set things up. Chuck: I think that you have to choose your clients wisely, right? There's an old saying out there that if everyone's your potential customer, no one's a customer. Right, you have to and I'm listening up, because I'm not perfect in any means. When I first started, I started going just after telecom companies, and that because that was what I knew. I'd spent 20 years in telecom and I had to learn all other aspects if I wanted to do this. So, you know, I became an expert at digital marketing. I already knew operations from telecom. I already knew finance from telecom. Right technology, of course I knew that one. I really know a whole lot about HR or legal, but what I didn't know was marketing and sales. So I had to become an expert in that Right. And that was really the catalyst is when I went from just being a just knowing, just doing telecom companies to now specializing in really all types of businesses, but only particular size businesses. So I learned that I didn't want to do business with those big fortune 1000s anymore. The big electric providers right, those were our clients. Telecom companies, those were the state agencies, government agencies and things like that. I didn't want to deal in that arena anymore because I can impact a small business much more. Right, if I save a small business you know $100,000 a year or fix a problem that solves, that's worth $100,000 or $200,000, that's much more impactful than getting a state agency back $5 million because it's not real money to them anyway. Right, it's just taxpayer money. It's not like they're going to give it back to the taxpayers. They're going to find someplace else to spend it. Chris: Right, right. Well, I think there's some truth to what you're saying is, as you're starting out with the new business, it's very important to be really laser focused about who your customer is and stay kind of within those bounds and not start to chase every little thing that may come your way because it may not fit your skill set, it may not fit your purpose and it can be distracting. Chuck: It can be distracting and it'll give you, you know, doubt as to what you're doing, whether or not you're competent, right, and that'll kill you as an entrepreneur. When you start doubting yourself and doubting your abilities than others will. Chris: So we've talked a little bit about kind of getting started as you were kind of moving through the process. You've talked about kind of focusing in, I guess after about five years on really just being a problem solver. Let's talk maybe a little more detail about what are some of the things you're talking about when you say you know we solve problems. I know they can vary, but I'm just curious about some kind of specifics, to the extent you can share some specifics on that. Chuck: Sure. First of all, I always tell people is your problem worth at least $2,000? Don't be gonna do me with a problem, right? That's not worth something. I'm not doing it for free, so let me give you an example. So about a year and a half ago I got called by a customer of mine, a roofer, and he goes hey, I've got this company that I want to outsource my back office to and I need you to vet them. So that's a problem. I said, okay, fine, let me vet them for you. So I did that and they were a good company, right. And about six months later after that, I get a call from that company and as owner of the company, and she held up a little sticky note and it said hire Chuck. And I said what's that? She goes. When we had our conversation I know that I knew that I needed a Chuck and I said, okay, so how can I help you? And she goes listen, I've been in business for almost a year now. We're an outsourced VA virtual assistance company and we're just not really making. We're not growing fast enough. We're going to get about $14,000 a month in revenue. And I said okay, and I took a look into our organization and we started making some changes and first thing we did was we rebranded her as a business process outsourcing company instead of a virtual assistance company. Then we made some operational changes with her personnel, helped her grow and hire the right people, got all of her people certified in the softwares that they were using so they could truly be viewed as an expert instead of just a virtual assistant. In less than a year they went from $14,000 a month revenue to $140,000 a month in revenue. Okay, just changes that. We did Another company, a telecom company, swiss telecom, a telecom company right, they were getting a lot of short duration calls that they were being billed for and they didn't know what the problem was. So we've got a problem. So we did an analysis of tens of millions of TCAP messages which are getting technical here in SS7. It's like a phone record, but it's the digital version of it, right and we found that what was happening was, down the line, one of the providers that they were connecting to, because, remember, you go through several switches. You call them the US, it might go here. Anyway, one of those switches was given back what's called false answer supervision, before the call was ever answered. So that's why they're having short duration calls. People would call, it would ring nine, 10 times, no one would answer and they'd hang up but it was showing it's answered. So we fixed that problem. So really, it's any type of problem. It's like I want to open a new location, okay, so one of the things that we do in our LinkedIn reach out, that we do how we find clients is we just ask people what their problem is and we tell them everyone. We tell them how we would solve the problem. One is what's the true problem and what's the real problem? Because a true problem or their problem might be I need more revenue. Okay, so what's the real problem? Or is the real problem you need more revenue because your costs are too high, because if your costs are too high and we bring in more revenue, we put you out of business because you're selling low cost, right? Is it because you're marketing? Is it because you just don't have the right staff in place? So we do that analysis and take them through that and either fix it for them and hand it back to them or, once it's corrected, we can monitor on an ongoing basis. Chris: So when you do these projects, you assume you're not just a one man show. You've got a team working with you, and how have you gone about, I guess, building that team around you to make sure you have the right people? Chuck: So what I? Did is listen. So experience is important, diversity is important right, and diversity from the sense of people with different backgrounds are going to have different ways that they interpret a problem and the corrective action that they would find for that right. So although I'm the chief strategist for the company, I don't really go by the title CEO, but I'm CEO and chief strategist. I'm more of a strategy kind of guy, so I do handle a lot of the problems. Chris: When you know, name of the companies interact one. Chuck: You're going to interact with me, right? In most cases, but what we did is we wanted to find people like me, because I don't know everything that lets surround yourself with people smarter than you, right? So we go out and we find fractional people just like me, right? Possibly someone that's got a full-time job, they are a CEO of a company or they're an entrepreneur that own their own company or they're an accountant, right? So we have a lot of people that are working with us for finance issues, it professionals, right, and we've built a network of these people to where we hold all of their information so that when a problem comes in, we have three or four or five in some cases, 10 people that we can send that problem to and see what their thoughts are on it and then engage that person the one that we want to engage with to help us solve that. And then we do the program management or the program project management of that and we have a lot of employees, but we have a lot of fractionals working for us. Chris: Okay, that's an interesting model. I mean it makes sense, given what you're doing, and then you can kind of pick the right person for the issue at hand, Absolutely. So we were talking a little bit earlier and I know you know we talked about challenges you faced and being an entrepreneur and I just want you know, maybe share, some of the challenges you've gone through and how that's impacted the business or changed what you've done. From you know, from a, I guess, a business strategy. Chuck: Well, I mean, if you're in business, you're always going to have challenges, right. So you know, starting from the very beginning, just being able to redirect yourself. You know don't beat a dead horse, redirect, you know, make a decision one way or the other lead, follow. Get out of the way all those little sayings they say is you know, do that? Make decisions. Some of the you know. The first one was switching from being just strictly telecom to really handling smaller businesses. That was one. Then we diversified into where we had our own public relations firm because a lot of companies, what they were, what we found is a lot of companies have an issue with actually people knowing who they were right. So we created that company and being able to to in the economy, be able to utilize, you know, both companies right. Listen when very small businesses, they can't afford a lot sometimes but they can afford a little bit and that's like the PR company. One of the challenges that we had with that diversification is when COVID hit. Right, we were leading up into COVID. We were spending probably 90% well, 70% of our business was from a revenue perspective, was coming from the PR firm and these are small clients paying $395, $500 a month, right, for our PR services. And the Interact One, the more consulting, the high dollar ones, was really just me at that time, okay, and when COVID hit, basically all those customers call me hey, we don't know what's going on. We've got to stop and we've let everyone out of their contracts, for sure, but we lost about 90% of that business, and at the time I really didn't know what I was. Yeah, it was a very big hit and they really know what to do. But then I started thinking well, people really have problems now. Right, they've got problems that need solved. A lot of problems were, you know, during COVID is. You know, how do we maintain a remote workforce? How do we keep our store open but just have deliveries? How do we keep our employees engaged out? You know, how do we give our customers engaged? How do we transfer our shop from totally brick and mortar to an online right? So it was a godsend for me as far as building back up or getting more involved in the Interact One business. But because if I didn't have that, I don't know where I'd be today. I'd probably be dipping my toe back in the corporate pond again, right, right, but you've got to be able to. Chris: Yeah, the ability to, I guess you know, kind of pivot when necessary and kind of keep going is critical, yeah, For an entrepreneur especially small business owner Yep. What other? I guess, excuse me, what other advice when you think about how you interact with your? You know your partners, your kind of your, these, maybe these what I would call maybe alliances you have with other fractionals. But maybe there are other type of partners you used to keep your business successful, whether that's you know banking relationships, you know accounting, legal. What are some advice you have on that, on you know best practices to make sure you kind of surround yourself with that kind of strong team that you need to kind of have a stable business. Chuck: Yeah. So, listen, a lot of small businesses out there, right, they try to do it all themselves, right and don't. Right, there are professionals out there that can help you and even if you want to build everything in house, you know, make sure that you know, like you said, have a strong relationship with a banker, a financial person, you know, some sort of business coach maybe to help you do things. What I do is I just try to treat everyone with respect and, as a consultant, sometimes we especially when we're solving problems, right, I can't, someone can't say something to me and me go well, crap, how stupid are you? Right, you got to treat that business owner with respect and sometimes, if they're making boneheaded decisions, there's a little bit of dance involved in it. Right, so be respectful and earn people's trust and with, whether it's your business partners like me, you know all the other C level professionals that I work with, right, because most of the people that we bring on as our partner or our hybrid or partner or fractional whatever you want to call it consultants that we lean on in areas that we don't have the expertise, they're all C level, okay, so you've got to be respectful of them and trust their decision. Now we have a leave at them. First, right, trust just isn't given. But you know, be respectful and widen your network. Right, you're only as good as the people that you're surrounded by. Chris: Yeah, no, that's for sure. And they're a reflection of you, right? If you're bringing them in, whether that's an employee and you're putting them on a project or a consultant, and you're bringing them in, whoever that client is sees them as a reflection of you. So it's important to make sure they align, you know, with your fundamental values, absolutely, absolutely so in what I think you referred to this a minute ago, when you're talking about certain problems, you've been helping people solve anything you've seen in the last couple of years where you've been involved and maybe in certain projects and develop some. I don't know if there are best practices, but I'm thinking about work, the work remote world we're in and helping companies kind of navigate to a place that can work for the business, to remain profitable but also allow for some of that flexibility. Anything you can share on that regard. Trust Right. Chuck: So one of the biggest problems Just in case. Chris: I didn't hear that clearly. I want to make sure the audio is clear. You said trust. Chuck: That's what I'm talking about Trust, right, that's my text is coming out Trust. So what happens? And it's instilled a sin from the very beginning? Oh, 40 hours a week, and this is your rate, right? And how do I know that my people are working if they're not here? And I can see what's going on behind the desk? And my answer to them is the work being done. Right, is the work being done? And you, as a manager this is what I tell the business owner you, as a manager, need to make sure that you're giving them the work that can be done in the time period that you want it done in, right? You know, if you give someone three things to do and they can do it in four hours instead of eight hours, well, those are the things you needed them to do and they did it. So why shouldn't they get paid what you would have paid them, which was eight hours, okay, but then again, if you don't have your finger on it to where you know how long it takes them to do something, then that's on you, that's not on them. And if you give them too much and they're not getting it all done, then that's when you've got to start looking into it. Am I giving them too much Right. Chris: So the main thing with work remote. Chuck: That I tell, like I said I tell people is trust your people Trust, trust yourself that you made the right decision when you hired them, right, or it's your fault anyway, and then trust the fact that they're working. I've seen businesses that are like well, they've got to log into this system and stay logged in. Okay, well, they could be logging in while they're taking a nap. That doesn't mean that they're doing the work. Well, you know, we make them have a zoom open so that at any time we can look and see if they're working. I said you know I would quit. I don't, I'm going to do the work, but if you're insisting on having a camera on me making sure that I'm doing work all the time, then it's not a right fit. Right, there has to be trust. Chris: Yeah, you're right. I mean I think you know, in addition to trust, I think what I've seen and I think you're saying this as well is you got to communicate clearly what the expectations are Right. So when you talk about these assignments, I mean you know not only is the word getting done, is it getting done timely and efficiently and correctly Right, and if so, then you know you're on to something. And if not, then you got to correct that from a work performance standpoint and be able to say look, this is what the assignment was, this is what the deadline was, and if it didn't meet the standards, be able to explain why. And then figure out what's the right corrective action from there. Chuck: Yeah, expectations are everything and then being able to you know, another thing you do is get buy in from that remote worker you know how, what can you do, how much can you do it? You know, it's like my telecom days, the old telecom days. You had what was called an occupancy rate, so you had a call center where people are answering the call and then, oh, I want 100% occupancy, which that meant that 100% of the time that people were on the phone. And it's not possible, right, even the best call centers run at 60 to 65% occupancy, right, and you got to realize the way your people are too. If you're paying them for eight hours, you know what you'll be good, you're doing really good if you're getting six hours of real work out of them. Because you got to stop and think sometimes, as, as American culture, we really, I guess we really think that our employee employees owe us when really we owe them. Chris: Yeah, that's a good point. So let's talk a little bit just about you know, maybe on your personal leadership style. How would you describe your leadership style? And first there, and then you know how do you work with some of your clients. Maybe help them with their leadership style when those opportunities present themselves. Chuck: Well, I think that in the business that I'm in, I have to be collaborative, right, you can't make all the decisions and do everything yourself, and really that's what business owners have to do all the time telling them that you're, you know, you're micromanaging your people, you know. Give them some room to breathe, let them have some creativity, let them help make decisions. Don't just tell them what to do, ask them what needs to be done, and that's kind of my leadership style, right. But then I always go back to problem solving. So I want to know what the real problem is, what, not just the problem, the problem, you think the perceived problem, but what is the real problem and how can we correct this with any decision that's made? Chris: Yeah, so kind of we talked a little bit about this maybe. But I want to ask you a maybe different way when you think about yourself and your career, any kind of setbacks that you've encountered, that you look back and go man, that was a tough time, or I made a boneheaded decision or whatever, but what I learned from it benefited me so much that I can look back and be grateful for that experience. Anything come to mind for there that you can share? Chuck: Yeah, Back when I kind of first started the Interact One on the marketing side, when I was learning marketing, I had a company come to me and it was like we want you to help us acquire more customers. You remember back when deregulation happened on electricity in Texas. Chris:So we started working. Chuck: The problem and the problem that we gave them was you need to have a door-to-door team that needs to be trained this way and done this way and do all this kind of stuff. And they said, okay, great, do it for us. And 286 people later right, five locations across the state of Texas, a lot of money, Thank you, but it wasn't worth it and it almost made me to where I didn't want to even continue. Right, it was so stressful having that many people that are working on a commission-only basis right, Selling electricity, training them, looking at Perf and all of that kind of stuff. So it was very profitable and it's one of the things that, if I had my if I go back in time, that's maybe one thing that I would have changed is I wouldn't have went down that path that took so much energy and took three years of my life to do that. I could have done much greater things. Chris: I believe, interesting. So that kind of segues well into the next question I want to ask you and that is how do you go about maintaining you know there's all the. You know the typical word is work-life balance, and I'm kind of a believer and I had some other guests on the podcast and I agree with this is more about work-life integration than how do you manage both, because you have work and you have your personal life and how do you integrate those so you can show up effectively in both? What are some of the things that you do to try to make that happen in your life? Chuck: I take naps. Chris: I love it. Chuck: I'm a big proponent of taking naps, but really OK. So I've got, maybe, a different viewpoint, because I did the corporate America gig for 20 years and I had my business, grew it very big, then pulled it back small again and I work because I want to work. There is no work-life balance. I have life and I work when I want to work. And if I want to work five hours this week, that's what I work this week. If I want to take a week off, I take a week, and I know it's different for a lot of entrepreneurs, you know. But I'm entering the, the, the twilight state. I don't look at that. I'm pretty dang old, right, and I think that for the younger people starting out, or you know, mid-mid-age, right it's important, right? Don't do what I did in the first 20 years of my career, where all I did was work and I saw my kids on weekends, which initially eventually led to a divorce, which meant that I only saw them every other weekend, right? Yeah, 14 years ago I started over again. Wonderful woman, she keeps me grounded and she is my life, makes me want to be a better man, and we started a new family, so that helps out too. So I've got an eight year old son now, right, and I've got an eight year old granddaughter and I've got an eight year old grandson right. Oh, wow, yeah. So it gives you the. It's allowing me to have a second chance with that and I'm not going to fail it. So, yeah, I don't necessarily know how you do it, whether it's working out or yoga. This is the one of the one of the people in the podcast. They were doing yoga and all this kind of stuff. I know that you have to have something that stimulates your brain at all points in time. I've got an eight year old that does that I've got. You've got to have something that exercises your body. I've got an eight year old that does that. I help coaches lacrosse team and the day after practices I can barely walk. So I don't know if I have a great answer for it. I know it's important, but I'm not there anymore. I just I work because I want to work. Chris: Yeah, no, I work great hours. I think what I love there. Everyone has a little different take on it because, look, everyone's situation is different and so you've got to get to figure out what works in your ecosystem and your environment, and that includes, right, the family and the business and the career and all those things, and those things can change over time. Chuck: There's another camp. Chris: All right. So yeah, I appreciate all this has been really good stuff. I'm going to turn it a little bit to the lighter side and ask you what was your first job? Like real job or entrepreneurial job? No, that real job, I mean I don't know, like in junior high you had to pay for route, or yeah. No, I didn't, I didn't do the paper route. Chuck: So my for my, as I was raised by a single mom, right, we didn't have anything. She was a waitress. So I went into the family business and I bust tables and lost dishes at a restaurant. Chris: That will humble you really quick right, make you hungry, and not just hungry to say I want something different. Chuck: Yeah, I know that I want. I always knew that I wanted to have something more than what I had growing up. Chris: I know you said you listened to some of the prior podcast episodes, so I know you're ready for this one Tex-Mex or barbecue. Chuck: Well, it depends where right Sure, you know. So I do my own barbecue. Okay, so if I'm eating out someplace, I don't necessarily do Tex-Mex very well, except for guacamole I'm a great guacamole. But so I would say, if I'm eating out, it's a text. I eat more Tex-Mex than barbecue, but I enjoy barbecue. Chris: Ma'am, I may have to see if you can ship me some of yours and I bet it's pretty good. Yeah, I make some pretty good barbecue. I love. The honest answer there was. It depends where, because so many of us have. Well, if it's, you know, if it's this that I'm hungry for, then it might be this barbecue joint or this different Tex-Mex place. So I have to share. I just saw and I share with my girls, you know the L L L L Roya in Austin in their signs. There, there was, I saw a picture of this. One says Texan a person who chooses a restaurant based on their chips and salsa. Chuck: You know that's very true, Isn't that true? Chris: What we need is a. Chuck: Tex-Mex barbecue. Chris: Yeah, but we have some of that here in Houston. We have some places that are using like brisket in their tacos and things, so it is. Chuck: They have Korean barbecue. Right, they have Korean barbecue, so why not? You know Tex-Mex barbecue and you know have more. Of. You know the beans would be more of the barbecue style beans with some jalapenos in there. So I put jalapenos in everything. So everything is Tex-Mex. Chris: I like it. Well, you and I may have to get offline and we may come up with a new restaurant concept here. Chuck: Yeah, so okay, last question. This one's out of the menu, yeah. Chris: Everything's out of the menu. Yes. Last question is, if you could take a 30-day sabbatical or you just get away, where would you go and what would you do? Chuck: Well. So sabbatical means something different, right, and getting yourself in a different thing. So I like, at least twice a year, we go to the Smoky Mountains, which is my, that's my spot, right. When I first went to the Smoky Mountains, I was like this is where I belong, right. But a sabbatical might be a little bit different, and I think it would be really cool to go over to Africa and do a photo safari. I don't want to shoot the animals anymore. I did that growing up. I don't need to do it anymore, but to get them on camera and to live in the camps and stuff like that would just be. That'd be something to be really cool, yeah. Chris: It's a bucket list item for sure. Yeah, that's great. Chuck: Well, Chuck, I want to thank you again for taking the time. Chris: come on the show and share your story. I love hearing kind of the career you've had and the way you evolved and I love this the way you're helping companies solve big problems, so really appreciate it. Chuck: Well, I appreciate you having me. It was fun. Chris: All right, we're going to stop the recording there. Let me see if I can actually do that. Hmm, no, here we go. I'm not the host, it won't love me, but they know where we stopped, so hey. I was talking, I talk enough. No, you did great. Look, we, you know I was watching our timer. Yeah, we were. We probably stopped the recording in minute 3435 and 30 to 40 minutes is our goal, so we were right in the sweet spot. And yeah, and it always goes so fast because you're just having a conversation and I think everyone gets amazed that I can't believe it went that well. We were actually talking for that long, but yeah. Chuck: In my business I don't talk, I listen. So it's hard for me to fathom that I'm. You know, when I listen like when I do a conference call with a client I one of the people you had said they use order. We use order also and it shows you the stats on how long each person talked and I always make sure and always tell the other people that make sure that the client's talking more. Chris: Yeah, what you're talking, you know. Chuck: you look at the the the recap and it says Chuck talked for 36 out of 60 minutes. Well, that's too much, Right? Chuck needs to talk for eight minutes out of an hour and let the customer talk. Chris: That's good, that was good. Chuck: I look forward to seeing the seeing the episode. Chris: Absolutely, we'll be back in touch. I don't know. So, josie, with my team and Mackenzie they're my marketing kind of folks and I can't remember the name I know you kind of came through, a group that was, you know, helps you book these things, yeah, thanks. We want a headshot, kind of thing and all that. Chuck: They're having great the ride up on me. All that kind of stuff yeah. Chris: Well then, what we'll do? We'll give you a little. Obviously, there'll be some advanced warning once we get it all packaged up and we have a date certain that we're going to release it, and we'll get it all to you and your people, and then it'll be, it'll hit the presses. Chuck: So also, and the next time I'm in Houston I'll look you guys up and we do lunch or something. Chris: Please do. I would love that Love to go grab some barbecue. Yeah, thank you All right man, I talk to you later. Enjoy the rest of your day. Bye, bye. Special Guest: Chuck Leblo.

Building Texas Business
Ep060: Creating Connections and Nurturing Partnerships with Curtis Hite

Building Texas Business

Play Episode Listen Later Nov 1, 2023 34:19


In today's episode of Building Texas Business, I speak with Curtis Hite, founder and CEO of Improving. Curtis shares his entrepreneurial journey, from starting at Raytheon to selling his first business and experiencing betrayal, fueling his passion for conscious capitalism. We talk about how Improving has consistently grown during economic downturns by prioritizing employees and culture. Curtis provides valuable insights into his leadership strategies, innovative programs for maintaining connections, and stakeholder models for partnerships. Whether you're an entrepreneur, business leader or interested in leadership, you'll gain inspiring insights on building a resilient company through conscious capitalism. SHOW HIGHLIGHTS Curtis Hite, founder and CEO of Improving, shares his entrepreneurial journey from feeling betrayed and undervalued at his previous jobs to founding a successful business that values its employees. We discuss the importance of maintaining a people-centric focus and sharing strategies for leading a successful company. The concept of conscious capitalism, which is a philosophy that Curtis and his team at Improving have strived to embed in their work culture, is explained. He shares his unique leadership style, emphasizing positivity, high energy, and inspiration. We discuss the importance of listening to the ideas of employees and how he prioritizes them in order to benefit both the business and the employees. Curtis introduces a program called Come Together, which helps build and maintain connections among employees. He describes a homegrown product called Engage, used to measure employee involvement and assign values to their contributions, a major part of their profit share is based on this. We emphasize the application of a stakeholder model in business, which is about identifying key partners and building relationships with them. The discussion touches on the importance of leading by example and inspiring with vision, reflecting on how Hype shifted to utilizing personal life books and creating a vision for his organization. The episode ends with a light-hearted conversation about Curtis' first job, barbecue preferences, and cherished family memories. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS Curtis HiteAbout Curtis TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Curtis Hite, ceo of Improving. Curtis shares several important lessons he has learned along his entrepreneurial journey, maybe the most important being believe in yourself, but not too much, because you're part of a team. Curtis, I want to thank you for taking the time to join me on Building Texas Business. Curtis: Alright, thank you for having me here. I appreciate you including me. Chris: So let's get started by just you introducing kind of yourself, but more importantly, your company and what it's known for. Curtis: Alright, so Improving is a modern digital services company. I think what we're probably known for most, though, is our participation in leadership in the conscious business movement in the United States. Chris: That's great. What inspired you to start Improving? Curtis: There's actually a story I consider Origin story here, that's good, we're here for stories, okay. And I was working two companies ago at Raytheon. It's a very large company, over 100,000 employees. I was very ambitious as a young man and I had this idea of creating an internal consultancy at Raytheon. Had some skill sets that were fairly unique at the time with the technology transition similar to where we are with AI today but that was object programming, and so I came up with a business plan with my partner there and we presented it to the leadership. It went all the way up to Boston and when a letter came back it included. The words were the sentence tell the software we need to get back to work. Chris: Oh, okay, and so. Curtis: I kind of reflected on that. Being part of 100,000 person organization, those words were never intended. I get that for my eyes right. Right it was intended for more of the senior executives at the organization. But it kind of inspired me to say, well, wait a minute, maybe I can do something different. This is a good business plan and developed it on my own. And instead I took that out and found three partners that were already in the industry and started my first business. But that was the first business, but that's how I got started there. Okay, I kind of pushed there, and this was after four and a half years of being at this larger company. And then the second story, the origins to this one, is rooted in that company, the three partners, that there were, three partners from Raytheon, three partners from this new business, xp, and in the end, without going into a lot of the details, I felt very, maybe betrayed by one of the partners and maybe misled was the a better word Very misled and taken advantage of, and I always remembered that feeling. So take those two stories, plus one more, which was we sold that business to a French organization and we went public during the dot com days and after several years of running that business the French business, let me go and we were experiencing literally record revenues at the time and record profits. Even a majority of the profits of the group are coming out of North America, which I was responsible for. And I remember the shame that I felt in that moment and embarrassment and all the raw feelings that go with that. And there's a little bit of irony there because I might have been thinking about leaving or trying something new, but that kind of jolted me and I had something to prove. I had no intention of going back into the services business again. Yeah, I found myself with something to prove, creating a new services company. That was fueled out of shame, and some people may like that. Chris: Well, essentially you say it that way because my sense is that people were really honest about it. They probably come to the same conclusion you just did and did years ago. Is it maybe some shame or embarrassment that fueled them to prove something wrong and got them going? I don't think there's anything wrong with that. Curtis: Yeah, I'm not going to say there's anything wrong, because shame, if channeled properly, can be a great motivator. Chris: It's not the healthiest of feelings, I get that Right, but it does create a high degree of motivation or denotation, depending on how you are built, how you let it handle or affect you right. Curtis: Right. And so my partner, rick, in this business he actually three or four years in and we very quickly we went from 600,000 to 2 million to roughly 6.8 to 10 million in our first four years and he was worried that I would lose the motivation right, and that really didn't happen. It shifted and motivation came from a different place. But in those early years. Chris: I remember the earlier events and what can I learn when shake this company and I didn't want to mislead anybody, Right. Curtis: From lesson from. Lesson two yeah, I didn't want to feel like a number, anybody that would feel like a number. I was 139662. Chris: That was my number at the large company and that's what you would give that number instead of your name. Curtis: Right, and I felt a little treated that way when it's tell that software, we need to get back to work Right. And so when we formed the company, culture was a very important and perhaps one of, I think, our greatest accomplishments is that we've been named to over 100 best places to work. We've been number one here in Houston, led by Devlin Wells. We've been number one in Dallas, we've been number one in Texas, we've number one in Ohio, and it's not about being number one because in almost all of our offices were recognized, but it's just really about the executives at the company caring about the employees. Chris: Right the way they feel valued. Curtis: Right and that's what I'm genuinely carrying and valuing the employees, although it's not all about the employees all the time either. It's this careful balance. Chris: Sure, Well, if they don't feel valued, you're not going to win awards like that, right? Because they pull into your organization to really try to get a feel for the pulse and what's really going on. Well, thank you for sharing the origins because to me there's so much learning in that and in each entrepreneur's story there's different things that cause inspiration, from ideas and knowledge to emotions and feelings. What I gather from yours is there's kind of a series of three different setbacks, if you will, that you learn from in different ways An idea being disregarded by a large corporation hear those stories all the time. Partner issues in a business and learning from that. Hear that, represent and guide people through those issues all the time, and then this kind of the shock of being let go when you thought you were doing everything right. So I think it's a really cool, well-rounded story. So when did you talk about starting improving with your partner? What year was that? Give us a reference in time. Curtis: The very end of two things. Chris: Okay, so, wow. So you were a few years into that company. You were talking about the success over four years. You had economic crash in 08, but you were thriving through that. Curtis: Right, we actually built the company in the Great Recession and we grew every year through that environment. In fact, we've grown every year in our history, so we've never had a year. Some years it's small, a few percentage points. Other years it's big growth, but that really it's core of one of our values, which I call involvement, or which we call involvement, and that our success is a consequence of our collective involvement and leaning on each other, no matter what the conditions are good times, bad times. So, yeah, really have a big team and I really believe that. Chris: Yeah, so you've then managed at least through a couple of big downtimes. You talked about the Great Recession. Obviously, we had a global pandemic. What are some of the maybe lessons learned that you could share about how you kept focused to allow the business to continue to grow even though the world around you is, like you know, in chaos? Curtis: The first thing is remembering your team. Sometimes, as entrepreneurs, it's easy to become self-reliant, sizing your own role in this and maybe even disregarding the roles of others. So I highly encourage people and I had that lesson early on that I don't have tendencies to do that. In fact, I know deep down the exact opposite is true and pull the team together and what are we going to do in these crises or these downtimes? What are some of the ideas? So that also lets you know you're not alone. It's a good point. A lot of business owners, including myself, I often feel alone. Chris: Sure. Curtis: But I'm reminded that when I ask for help or I'm a little bit vulnerable, then I'm not alone. I'd simply feel alone, often because of the own barriers that I put up for myself, and that would be the number one thing I would remember in any of these downtimes. The second is to remain focused on what is most important, and that's unfortunately sometimes that's keeping a business alive and being not only an active member but considered a leader in conscious capitalism movement. People sometimes misinterpret that means we can't do layoffs. We can't because we're conscious business. How those are contradictory. They're not contradictory. Sometimes we have to make the decisions to keep a business healthy and unfortunately, when you care about the employees, yet at the same time we have to make decisions because you care about the business and the longevity of the employees. It requires difficult decisions. Don't be afraid to make them, but make them with a caring heart. Chris: Right, but I wanna talk more about the conscious capitalism movement. But I think you hit on something that's very important Not losing sight. At the end of the day, you're kind of responsible for a healthy, thriving business. Does it mean you're not gonna face hard decisions that affect people's lives? But the other thing I think I've learned and I'm curious if it's been your experience is, when you're faced with those hard decisions, the sooner that you can make them and not rashly but with good information the better off everyone involved is the employees affected, the company, yourself as a leader and moving through that process. Curtis: That's true. In my career I've had to do layoffs three times. Okay, one was during the dot-com bust and Enron was our largest client. We built their software. Let's not, we don't need to visit that story anymore. It wasn't us but we built the software. And then the second was during COVID was such a rapid decrease, people pulling back in business and services, just a lot of fear in the industry. And then the most recent one was some restructuring that we had to do this year. Chris: Okay. Curtis: In a weaker and very what I call volatile economy, and they're never easy and I know they're imagined by people that are affected, as this is easy but they're not. But we can't be afraid and I learned from I was forced into it with Enron All night. 40% of our business went away in a single day. Covid was the same thing. Chris: Sure. Curtis: Right, we had business units that lost 65% of their business in three weeks and when you look at that, you're forced into very expedient decisions, but it slowed down enough to make the good decisions. Right, and don't be afraid because you're gonna get negative pushback, but treat people with respect and treat people with care, because these are real people that have real lives and it's a very sad thing. Chris: It is. It is, and in other words I'd add there, treat people with dignity. So it is Absolutely. It is not an easy thing to have to go through as the leader making those decisions. So let's talk a little bit about the conscious capitalism movement, because you talked about it and referred to it twice. I was fortunate enough I shared with you, before we started recording, to speak at one of their events. I think what that is all about is just so wonderful for the business world. Share a little bit about how you and improving have been involved in that. Curtis: I got invited in 2009 and I mentioned earlier my motivation was kind of shame when we're trying to survive and build the business. But about three and a half years in, I got invited by a good friend that I still do business with and friends today, to this CEO summit in Austin and it was a phenomenal event and it was really shifting in my motivation. The keynote speaker there really had a statement at the beginning of his presentation that landed with me and it was that, outside of sales professionals, it professionals have the worst perception among CEOs and I got really defensive because we're an IT company and I'm thinking in my head and I'm journaling instead of listening to the presentation and I kind of realized our own business. Wait a second. Our industry has earned some of that, not all of it, and whether it's perception or reality, we have to own it. And that is when I actually shifted the. My own motivation was to change and shift that perception and not feel victimized by it, but to really turn that into energy on how we change that as an organization. So I was inspired by that event, by the people at the event John Mackie of Whole Foods, who originated the Tip Kindle container store, doug Rao of Trader Joe's these are really great leaders inside these businesses and I got inspired by them, plus that message and I wanted to help the organization. So, through helping the organization, the local chapters speaking on it quite frequently, not being ashamed to be a capitalist but knowing that capitalism can be used for something even greater than the good it already does, is becoming the foundation of our business. I call it the philosophy of our guiding principles. Chris: Yeah, I love that. So, taking that, how does that, or how has it and how does it continue to shape and influence the culture at improving? Curtis: Well, the first, a year later, when I was with my partner at a conference or seminar that was being taught by Stephen coming on trust, I kind of had the epiphany that the reason why we had the perception was because the CEOs didn't trust their IT organizations or partners a lot of the time. So we refold our value to include this concept of trust, and I consider three of our values are identity, but one of our values, building trust, is our ambition, and so this combination of changing this perception by focusing on trust has reshaped our business for the next decade. 70 percent of our employees participate in trust pods every week, voluntarily. They don't have to trust pod is a group of five to 15 individuals talking about these 13 trust behaviors, how they're going to use them in their daily lives with their clients, our stakeholders right, but the biggest effect is how it affects you outside of business, how it affects your relationships at home and with your friends. But this is a relentless pursuit when you think that 70 percent of our employees voluntarily join these groups and talk about building trust every week. Chris: That's. That's amazing what I guess I'm, what I'm assuming occurs in the through the participation of these trust pods, is almost a blending of work and work life and family or personal life, and there is allowing for a bridge, which to me is so important, because I think it's a mistake when people think I'm going to drop who I am as a person or what goes on in a personal life when I step in the office and vice versa, because there's a, to me, a natural blend. It's like let's just acknowledge that it's there, but how can we help them coexist? Curtis: I completely agree. Different conversation, different presentation. But I really don't believe in the concept of work life balance because it really suggests there's one or the other right. They're not connected in any way. I love many of the premises behind it, but I'm a proponent of an integral life. Yes, work is part of your life and family's part of your life, and health, and maybe faith and or learning right, everybody has the areas of their life that they prioritize, but this is a and work is almost in everybody's life. So how do we integrate these and these trust pods become a significant way of integrating and we help right. At least I like to think, and I often get this feedback that the people who participate in these trust pods with the intent of applying it at work benefit even more at home yeah, I can see that. Chris: So You're a software company let's talk about. I mean just saying that, as it is to me, infers innovation. So what are some of the things that you do as the CEO to help encourage and instill the employees at improving, to be innovative, to act innovative, because with some of that, you know you have to create a safe environment and allow for failure. So what are some of the things that you have done or are doing there to improving, to help foster that? Curtis: I referred to one of our values before, that our success is the consequence of our collective involvement, and I've referred to trust. One of the trust behaviors is to listen first and really combining those two things to try to be innovative, to gather ideas right. As a CEO, you also have to be mindful that you're going to get a lot of good ideas from your employees when you ask, but you can rarely execute on them all right. So at any given time there's probably 100 things on the money put in quotes. The world's be doing right Well, but we can only do three or four of them. So I really try to make an effort to listen, have our other executives at the company listen, try to bubble up some of the most important ideas, but also represent what's important to the business and where the important ideas to our employees overlap with the important ideas to the business are those that we take, because sometimes they don't always overlap right. Employees may want something or the business may want something. That doesn't overlap. So that's a way that we prioritize, but I would say, of the ideas, of the programs we have in place, of the initiatives, we have something called come together. That is a phenomenal gathering and creating connection. The vast majority, 90% don't come from me, they come from the company. Yeah, and it's just listening and finding the good and finding the value is often probably and letting your own ego. You don't have to be. This is for the entrepreneurs up there. You don't have to be the source of all the good ideas. In fact, I would encourage you to be take more pride on identifying the good ideas than being the source of the good ideas. Chris: There's a lot of satisfaction, I think, when you can get to that point of being proud of someone you hired, that maybe you helped train or develop or created an environment where they could be trained, developed, create their own opportunities and reward them for the ideas that they come up with right Absolutely the whole new level of satisfaction. Curtis: It is. Chris: Freeze you up as the leader to do so many more things if the pressure of all the good ideas is off your shoulders. Curtis: That's right, or all the accolades is off of mine or other executives. We actually have a homegrown product. That's, I believe it's part of our competitive advantage. It's called engage, but it's about measuring this involvement that I've talked about. Employees get to enter in things that they are doing to benefit the company, often while benefiting themselves, and it tracks these things and even assigns values to them so that when they do this, they kind of know how they're participating and how they are adding value. A major part of our profit share is based on that. Chris: Oh wow, that's right. Yeah, well, as you know, too right, if you incentivize the behavior, you're likely to get people to behave in that way. So if you incentivize something like that, yeah they're. I imagine the engagement is really strong. Curtis: It is for two reasons. The engage creates visibility. So, as the CEO of a 1600 person organization, how do I get visibility to what people are doing? I have detailed visibility into what people I look at this so they often get accolades. So people that are seeking kind of affirmation and things like that's their reward for something like this. Those that might be more utilitarian and might be more motivated by money there's a money component to it for those people, but not everybody's motivated in one way, so we try to create a mixture. Chris: I like that. So changing the subject a little bit, but still to building a company, driving it to success. You have to work outside your organization with other stakeholders or surrounding yourself with a strong team. You know external professionals. What are some of the things that you have done to identify key partners, build and maintain those relationships that have benefited, I guess, are allowed for improving, to grow, to the company it is today? Curtis: You use a very important word for me, which is a stakeholder. Here we're big proponents of a stakeholder model, not just a shareholder model, and it's very important, I believe, to make sure, like you would your own employees that all of the stakeholders have a certain alignment with your values and your ethos. You're never going to get perfect alignment because these organizations have their differences, which are wonderful, but you should kind of tell those that align similarly and those that don't. So, when we look at suppliers, what are the suppliers that have a similar set of core values? How do they treat right their own suppliers? Because we treat our suppliers better than our own customers treat us right. Chris: Very important. Sure. Curtis: How are they treating their own suppliers? When we look at partners, right, a lot of partners out there are looking at it. What's in it for me? And despite the rhetoric of us, you can sift through that, because as a partnership, are they sometimes willing to go first? Do we go first? Right, have you conscious capitalism? The movement this way? It's a partnership, but we were going first all of the time, without resentment, right, right. Yet in the long game, that ends up paying, even though that was not our purpose. So looking for this alignment becomes key, just like you would with an employee. Chris: Makes sense. It makes us. I like the treat the suppliers better than the customers, because without those suppliers you can't serve your customers. Curtis: No, right? Well, I'm not saying we treat our customers worse than our suppliers. I said that we treat our suppliers better than our customers treat us. Chris: Oh, that's right yeah. Curtis: Because we give the, we try to treat our suppliers as if they were a customer. Chris: Yeah, Makes sense. We like said they're integral to you delivering on your promise. Curtis: Very. Chris: Let's talk a little bit about leadership style. How would you describe your leadership style and maybe I'm probably pretty certain based on this conversation how you would describe it today versus maybe 15 years ago, and maybe some of the things that occurred to cause or help you evolve to where you are today? Curtis: I would describe myself as very positive, high energy. I genuinely care about people and I believe and this isn't hubris, I think many people would agree that I'll rely on inspiration too and I think I'm fairly inspiring in the right circles, both one-on-one and at least at a larger level. But when I look at some of the lessons, how that inspiration has evolved over time is very important and it's kind of very different. When I was younger I tended to rely on kind of leading by example, and if I did everything, then people would be inspired and follow. And that works to some degree and that's a common source of inspiration for people Like oh my gosh, look how hard Curtis is working. And right, he really cares about the business. I might do the same thing, but I do believe that only goes so far. Chris: It's kind of like the command model, and I think even Jim Collins talks about it. You can only get a company so far if it's the charge up the hill type of leader. Right, you can be successful, but to a point. Curtis: And to a point and I switched to trying to inspire with vision, the vision of what we could be, the vision maybe of what I personally can be. And I started with my own personal life books and creating vision for myself, but switched that to the organization inspired by a leadership group, training, staying out of Dallas and to even put together a 10-year vision for the business. And so today we have a 10-year vision, we have three-year visions, we have one-year vision. These are all written, but I tend to be able to see things and see the good in things, and that's one thing. That's why I sit on positive. So that's I see the good and can inspire around the good versus the negative or polarizing concepts in our world today. Chris: What I like about that because I can identify with that is that positive attitude is kind of how to interpret what you're saying. Is that you're in control of that. Right, you can control whether you're really going to bring up positive mindset to whatever the circumstance is or not, and you choose to say I'm going to look for the positive and then try to be inspirational about what we can do in this circumstance, and I think that's effective leadership right. Curtis: Positivity is a choice. Chris: Yes, right. Curtis: And whether it's in our personal life or our professional life, we can, in almost any circumstance, choose to find something of gratitude in the circumstance. There are things I get it that we it's too hard to find and I'm not diminishing those, but for most things in people's lives and that becomes a choice. I've also found, and for anybody listening to this, think of your three favorite managers, leaders you ever worked for. Would any of your favorites ever be described as negative? I've asked this more than 1000 times and outside somebody hearing this and trying to prove me wrong, nobody, ever, not a single person, has ever said yes, their favorite was negative. It is something of the most effective leaders. Positivity is one of what we have found to be the six most common traits. Chris: It didn't surprise me at all. It didn't surprise me at all. So let's kind of just to wrap up this conversation. What I always like to ask guests to do is we've got an audience of aspiring entrepreneurs, or maybe just started our own business. What are one or two nuggets of you know? My guess, takeaways that you would say, hey, if you're out there doing this or thinking about it, if you don't do anything else, do at least this. One or two, two things, or maybe avoid X and learn from my mistake. Anything that you can draw upon in your experience of you know. Two, I guess, two companies, three companies now that you could share. Curtis: First I would say believe in yourself, but not too much, and remember, remember deeply in your heart that you're part of a team and while the pack maybe nothing without the wolf, you have to remember that the wolf is also nothing without the pack and these things come aligned. So it's a team effort and very early on to and this is a radical idea I shared 87% of the company, and this was not just me, this was my partner coming alongside saying let's do so. My partner and I combined had about 23% of the company voting units, so we could be voted off the island at any time. Interesting that is sharing in the success of the company and that's one of our tenants today of creating a good work environment that we really did share. From an equity perspective, you may not have to share that much, okay, but it worked for us and I'm not and I'm not going to complain. But what I found most commonly, the most owners that we've found true owners in any business has been six and we've talked to hundreds of businesses. Yet we have hundreds of them and we're a privately held company. Chris: Yeah, no, that's impressive and definitely putting your money where your mouth is right about trusting the collective group to be successful, because they'll benefit from it as much as you will. Curtis: And then they. We found people have stayed, they've benefited and they're inspired often, yeah, harder towards a collective goal. Chris: That's great. That's great advice. Yes, thank you for that. Thank you. So on the personal side, we'll lighten up the mood a little bit. So what was your first job? Curtis: Oh, first job was mowing lawns because I got in trouble as a kid. Don't want to share that full story, except me and my brother putting some napalm burn some people's tires, goodness only, and I ended up mowing lawns for a long time to prefer to buy the tires back and all of that. Chris: Oh, that sounds like that. Yeah, there's a deeper story there, for sure. Okay, Tex-Max or barbecue. What do you prefer? Curtis: Barbecue. Chris: Okay, no hesitation there. I like it. Curtis: Love barbecue. Chris: And then last question if you could take a 30 day sabbatical, where would you go and what would you do? Curtis: Wow, I don't know where I'd go, but I know who I'd go with and I would take my two kids, Colin and. Chris: Autumn Awesome, that's great. No, no better people spend time with right that's right, all right. Curtis, thank you for sharing your story and being so open about what you've done through your career, the setbacks, the successes, and what you're doing now to build, improving, to the amazing company it is. Curtis: Thank you so much for having me today.

Building Texas Business
Ep059: Behind the Scenes of the Craft Pita Empire with Rafael Nasr

Building Texas Business

Play Episode Listen Later Oct 18, 2023 34:40


In today's episode of Building Texas Business, I chat with Rafael Nasr, the man behind Craft Pita. Rafael shares his fascinating journey in the food industry, from starting his first business at a young age to launching Craft Pita. He talks about his experiences running a food truck and working for other businesses, emphasising the value of community involvement. We also discussed his perspective on private equity and assembly-line restaurants and how these experiences shaped him as an entrepreneur. It's an inspiring discussion with a successful food industry leader. SHOW HIGHLIGHTS Rafael Nasr the founder of Craft Pita, began his entrepreneurial journey at 20 with a food truck, which was a learning experience in managing all aspects of a business and the importance of choosing the right business partner. He worked in various roles in the food industry before opening Craft Pita, learning about the importance of being part of a community, the impact of private equity, and the challenges of assembly style models. When opening Craft Pita, Nase had the goal of creating a scalable concept, planning from day one to open multiple locations. The name Craft Pita was chosen to reflect the restaurant's focus on quality and to clearly communicate the type of cuisine to potential customers. Rafael believes that hiring decisions are crucial in the restaurant industry, looking for a high hospitality quotient for front of house staff and attention to detail and quality for back of house staff. The company culture at Craft Pita is centered around sharing culture through food, creating an atmosphere where guests feel like they are walking into a family home. He had to adapt quickly to the challenges brought on by the COVID-19 pandemic, transforming the restaurant into a drive-through and offering additional products such as cleaning supplies and produce boxes. As a leader, Nasr believes in being in the trenches with his team and also knowing when to step back and let them do their own thing. He emphasizes the importance of empathy, awareness, and adaptability in leadership. We discuss the challenges of managing a team with diverse ages, backgrounds, and perspectives, emphasizing the need to individualize leadership styles. The podcast episode concludes with Nasser sharing his plans for a third Kraft Pita location and discussing the financial and legal implications of business expansion. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS Rafael NasrAbout Rafael TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode you'll meet Rafael Nasr, founder of Kraft Pita. Rafi is growing a fast-casual restaurant concept with the goal of sharing culture through food. Rafi, I want to thank you for joining me here on the podcast. First, I just want to start with tell us who your, what your business is, what are you known for? Rafael:Yes, I am the owner and operator of Kraft Pita. We have two restaurants here in the Houston area, One in the Briar Grove Tanglewood Galleria area on San Felipe and Foundview, and we just opened our second location last November over on Buffalo. Speedway in West Park, here in the West U area, very close to y'all's office. Chris: Yeah, and I'm grateful for that, by the way. So I've heard a little bit, but I want to hear from you. Tell us what inspired you to start Kraft Pita. Rafael: Yes, so I'm a first-generation Lebanese, peruvian American. My father is from Northern Lebanon, and I spent my summers visiting my grandmother in Lebanon. My family has a restaurant business there as well, and so I spent a lot of my summers, you know, hanging out in my uncle's restaurant, always around food. I was the kind of kid classic story of grabbing scraps off the table at my grandma's house while the other kids are playing. You know, my sisters wanted to go to the beach and I wanted to go find the best shawarma possible. Chris: Okay, so that was the origin of my interest in the business when I was at Texas. Rafael: Christian University studying entrepreneurial management. I actually opened a food truck while I was in school, so I started my first business when I was 20 years old. It was basically a late night business for all the college kids after they got back home from the bars, soaking up a little of what they had enjoyed at the bars. So, as a university, this is a safety thing you guys need. And I sold my business because I wanted to graduate on time and TCU is not a cheap school by any means and worked for several other businesses but kind of, while all that was going on, working for other restaurants. Chris:I knew I wanted to open my own restaurant. Rafael: I saw an opportunity here in the Houston market for a higher quality Middle Eastern Mediterranean food. Chris: Okay, I love the idea that you started your first business when you were 20. Yeah, tell us, what was that like? Rafael: That was insane. I would go to class from 8am until 3.30. I would prep food from 3.30 to 5.30. And I would serve from about 6pm until 2am. Luckily I found my girlfriend slash wife right before I started the business, because my social life kind of took a back seat. So it was, you know, I didn't go to college anticipating being in the restaurant business, but it taught me what I wanted to do for the rest of my life. I can tell you it was a lot cheaper than my degree, but it was a really valuable lesson in what it takes as an entrepreneur to wear all hats in a business, and I learned that very early on in my career and it set me on for a great path to eventually own craft beer. Chris: Yeah. So let's talk about kind of the things, that lessons you learned. You know doing that food truck, and then you get the idea for craft pita. What were you doing before that? And then what sparked you to kind of take the step to go on your own again? Rafael: Yeah. So lessons I learned owning my food truck tell you a very valuable one. I didn't have a great partner. You know that was part of the reason I wanted to get out of the business and I think that was a really valuable lesson I learned super early in my career and I think that's a valuable lesson for any entrepreneur is that when you choose who you're doing business with, it's like you're getting into a marriage. Chris: Right. Rafael: And I also learned that you know when you are starting a small business, particularly in the food side of the industry. You have to do as much as humanly possible yourself, because labor is your biggest expense. And I was in school and owning a business. I think if I was just running the business, I could have been more profitable. Things could have gone better. That was a valuable lesson I learned. I think everyone has a study. Oh, I want to, you know, invest in a restaurant. I want to bar, do this and it'd be cool. But I also want to do what I'm doing. This is a all in business. Gotcha and obviously now I'm all in. Chris: Look, I think what you say is right. I'll say I'm not sure it's much different for most businesses. If you're really going to be in it as the entrepreneur, owner, founder, you have to be all in for sure. Rafael: And especially that applies to business. Where business is, where you know human capital is the business you know you're. You need hands to to prepare something, you need hands to to serve something. And after that I came back here to Houston. I worked for a family friend over a Island Grill. Oh sure, yeah, I worked for a phasal, helped him open up his bunker hill store, worked there for about a year and I learned a lot working there. You know I learned that being a member of a community, being in neighborhood, a restaurant and shaking hands and kissing babies is a big part of being successful in this industry. I also worked for him to also gauge what Houston's interests were in the cuisine and Mediterranean food. After that I went to go work for a company called Bert's Cabot, which it was a Chipotle style Middle Eastern restaurant Okay, and they were opening up several units very fast to MBA guys out of UT and when I worked for them it was amazing they're growing really fast. But I also saw the negatives of what happens when private equity gets involved and their only priority is opening as many units as possible. I also learned that the assembly style, chipotle style model was not something I wanted to do for Kraft Pita. I thought it was something I wanted to do, but it's kind of hard to convey quality and translate that when you're going through an assembly, style, model, concept right. And I knew at Kraft Pita I wanted to be a better quality than like a sublayer Chipotle or any of those things. I also learned from them that branding is a really important thing. They, when I joined them, they were Bert's Cabot, then they were Bert's and then they became New Mediterranean and there was Turkish donor kebabs that are influenced by German food and I just learned that you don't have much time to translate what your food is to people especially when you're not selling American food. Chris: It sounds like they had an identity crisis. Rafael: It was an identity crisis and literally sometimes it was honestly just the name. You know your name is so important when you're in the food business and you can be kitschy, you can be cute, but when people read your name or need to type it into a web browser or into a social media search bar, it's got to be clear and has to be concise and has to translate what the product is. Chris: Yeah, sounds like you had an immense amount of learning in just a few years. Rafael: That was just two years and at the time my wife she's still in tech sales she moved to Austin so I followed her over there and I tried to get into fine dining. No one would hire me in any of the fine dining restaurants because of my past casual experience and taking two jobs in two years, so I ended up taking a job with Poppus at Popocitos I'm 35 in Austin and I stayed there for about three and a half years. I thought about going to culinary school but I already spent a lot of money on my degree and I decided to go work for Poppus because, being here in Houston, everybody knows the weight that name holds and also their management training is probably the best in the country when it comes to the hospitality industry. Chris: They're definitely known for that. Rafael: And they're known for that from outside of the industry when it comes to management, and I decided to go work for them, because why am I going to go to culinary school when I can go to restaurant school and they'll pay me? Chris: for it. Rafael: So that was an amazing opportunity I learned they have you start off as a busser and then a server, then a bartender, then a front of house manager, then you're a kitchen manager and when you get in the kitchen they have you work the fry line, then the grill line, make salads. They really. I learned there that as a manager, if you want to gain the respect of people that you're managing, you have to be able to do the job. You probably want to do it as well as them, but you have to know how to do it. Sure, I mean, there there was guys working the grill that were as old as I was. They've been working there for as long as they've been alive, right. So it's one thing to manage a few people, but then when you're a restaurant like that and you're managing 40 people at once, it really taught me everything I need to know to be ready to go my own. Chris: So you mentioned the importance of branding. So what was it that led you to Kraftpita True Mediterranean and to develop the concept that you came up with? Rafael: So funny story about the name Kraftpita. I'd actually come up with it before we opened our food truck. We ended up not using the name and one day in Austin we had been brainstorming what we would call the restaurant, whatever. My wife brought the name up and she said what about Kraftpita? And I was like that's a great name. What did you think of that? She said you came up with it 10 years ago. Chris: You were forgotten. Rafael: I had forgotten. I'm like man. I'm so glad my wife remembered. Chris: And again. Well, let me pause there For those that were at TCU late night what was the food truck? Rafael: called. So the food truck is again an example of bad branding. It was called Mediterranean Chunky Monkey. This was my partner's idea and actually funny story. We had gotten a cease and desist letter from Ben and Jerry's for the name because they owned the rights to all food products that have the words chunky and monkey next to it. I wish I would have known you then. Maybe you could have held down. Chris: The other important having a good legal team right yes, exactly. Rafael: But to that point I told, hey, make sure you look it up. We're all good. Obviously didn't, but this time around I definitely looked up, covered my bases, so, and luckily we were selling the truck at the time while they were sending us the cease and desist letter. We chose the name Kraftpita because, like I mentioned earlier, when you read the words Kraftpita and you know it's a restaurant, you know you're walking into a Mediterranean, middle Eastern restaurant and because of the word Kraft, that you are walking into somewhere that has premium goods baked from scratch, made to order, it connotates quality and true Mediterranean is partially a joke. Lebanese people think they invented everything and the Greeks think they invented everything. The Turkish think they invented everything. Palestinians, israelis it's a little bit of tongue-in-cheek of Lebanese food is the best Mediterranean food and we do believe that. Obviously I'm very biased, but I think what makes Lebanese food the best Mediterranean food is it has this through line of a freshness and spices that really brings the food up a few notches, whereas Greek food is not super heavy in the spices but lots of fresh herbs and things like that. And then, if you go into Turkish cuisine, syrian, jordanian, palestinian, and even if you go into Persian cuisine. There's a lot of spices. I think Lebanese food is that right balance of spices and freshness, and so that's where Kraftpia two Mediterranean food. Chris: I love it. So you opened your first location. You now expanded to a second location and some would say, especially in the restaurant business, going to that second one to two is a huge jump, because can you make it work when you now your attention split between two different locations? How have you made that work? Because part of that comes with having a good team. Rafael: Definitely. We developed Craft Media from day one to be a scalable concept, so we always knew we were going to have more than one location. It starts and when you, it's one thing to open a restaurant and then think about opening another one, but when you do it from day one, it does make it a bit easier. Not saying that it's been easy, but, for example, our menu is not that big, it's consolidated. We developed managers and a management training program that allowed us to train up one set of managers and then split them off once the new store opened. The other thing that I'm very lucky to have is I work with my mother, claudia. Her and I are a great team and I kind of spend, you know, 80% of my time at the new store 20% of my time at old store, whereas my mother does about a good 75 25 split. She stays at the old store and that makes a huge difference. You know, having ownership presence is one of the most important things at a restaurant and because I have, you know, because we're a team, we're able to split our time. Chris: Yeah. What is it then about making sure you're hiring right, because so many people you know and I, we live it here and I think any business owner you talk to is the hiring decisions are so critical to getting it right. What are some of the things that you do at Craftpita to make sure you're making the best decision you can when you make that hiring decision? Rafael: Definitely. At Craftpita we have a very high standard for hospitality. I do think it's something you can teach people, but there isn't a nature of hospitality when it comes to front of house. We really just ask basic questions like where do you like to eat? What's your favorite example of a good restaurant experience? You know, and typically you can find out if someone has hospitality based on the way they grew up, based on you know their families. They'll tell you. Like you know, my mother taught me. You know, to say hi bye every time I left the house, small things like that. And then in back of house we really try to find people who care about quality, because there's a lot of restaurants where now certain things are so a cookie cutter but they don't even really have to think while they're cooking. It just comes out and we're not selling. You know a very basic food we're selling food. You know, some people have never made hummus before or tasted in their life, and so how are you supposed to hire someone, teach them this recipe and know, even though, what the expectation is. So, front of house, we really look for a high hospitality quotient. You know, when we're interviewing in a back of house, attention to detail and quality, those things are really important for us. Chris: That makes sense. So how would you describe, maybe, the culture that you are building there at Craftpita, as you started it, and now growing it to multiple locations? Rafael: Definitely. I think you know it's in our mission statement that we are committed to sharing culture through food and I think that's really the company culture we try to derive at Craftpita. You know the two cultures I come from actually the three. You know, in Lebanese culture, hospitality is a big thing. You walk into your grandma's house, she gives you hugs and kisses and then there's about seven courses of food that come out, and you know that that food and that is part of the love right, and same thing with my mother's Peruvian culture it's all about family, all about having good time, all about being together and food is kind of this the core part of that and then also being here in Houston. Chris: I mean, you know, I always think Houston is where the south meets the rest of the country and southern hospitality is a thing. Rafael: So, yeah, we really just want you to feel like you're walking into our house and that's the company culture we build and that comes from you know, serving high quality products, and everyone has a group effort making sure people feel welcome. Chris: Very good, excuse me. So let's talk about starting a business and all that not easy. What are some of the maybe setbacks you've encountered and what have you done to overcome those? We've been through some, you know turbulent times recently and I'm sure starting a new business has not been the easiest. Yeah, what are some of the lessons learned that you could share with our listeners on that? Rafael: I mean, I think and I hope no one else has to deal with this lesson ever again, but I COVID happened six months after I opened my restaurant ouch yeah so I, you know, spent my whole life dreaming of this restaurant and you know things are going really well. We actually made a national list of the Yelp top 100 restaurants in America and it just made our business skyrocket because we were the only restaurant he's on the list wow and that was in January of 2020. Of course, you all know what happens February of 2020 and you know. I think the lesson with COVID is there will be outside forces that you did not predict that will affect your business and you can sit there and cry about it, you can roll over and die or you can hit the problem head on. I decided to. I realized when one of the big problems that was happening was how are people going to know we're open for business? Because not all a lot of people. You know we had the two week period here in Texas and some people stay closed and some people open up right after the two weeks happened. So I reached out to a friend of mine that had like a tent rental business and I said I need the biggest tent that can fit a f 350 because you know we got big trucks here in Houston. I need the biggest tent and I'm going to. I need to build a drive through. So I reached out to my landlord. I said, hey, can I do this? you was fine with it, and so we had a tent outside of a restaurant for, I want to say, about six to eight weeks okay, and you know several of my staff had to leave, for you know they had pre-existing conditions or they wanted to go on unemployment and so I basically worked for about 90 straight days outside selling food. I even started. I realized quickly that a lot of people wanted, like you know, cleaning supplies and gloves and sanitized. I got in the sanitizer business. I got in the gloves business. I reached out to my local farmers so I got produce from and I got farm share boxes. We became, you know, pseudo grocery store and that was that saved us, yeah, and a big reason another you know reason why that ended up working out for us is because of the presence of me, my mom, in the restaurant. I think a lot of people, you know, a lot of our local guests, didn't want us to fail right, that loyalty you know going above and beyond for people, for those several months that we were open, I think, built a relationship that to this day still keeps our business, you know, afloat, and a couple other things that our business ran into, partly still because of the whole COVID scenario. But other things is labor inflation over the last few years. I mean, I was looking at my business plan from 2019 and I was like I'm not projected labor numbers. I can tell you we're way above that. And then same thing with our food pricing still going up, and these are just things I think any business person will go through. Is, you know, outside forces affecting your business and unexpected increased costs that you cannot do anything to change? Right, you just have to find ways around it, whether that's giving the guests more value. In one way or another, you have to solve these problems or else they're going to take over. Chris: Yeah, it's funny you say, because most people having a good business plan is critically important and thoughtful and as soon as you finish the plan and go into action, the plan's worth nothing, right, exactly? Rafael: Since I opened my business 10 years ago, people have always come up to me with crackpot ideas. I want to open a bar, I want to open a restaurant, I want to go food truck. And my first question to them is have you drafted a business plan? And it's not. You know, the business plan is not the end, all be all. It's not what's going to get you all the investment money. But it is a plan. You just need guidelines. Chris: You need guidelines. Rafael: You have some thought laid out right, that's all Just laying out your thoughts and you know once you lay out your thoughts you should take that business plan, give it to someone who knows something and have them rip you to shreds. It's some of the. You know it might be humbling but it's necessary yeah. Chris: So how would you describe your leadership style? You know fairly young entrepreneur you mentioned earlier when you were in Poposita. Most people that were reporting to you were much older than you, so how have you managed through that and how has that leadership style developed? Rafael: Yeah, I think you know I've only been a manager. I've never. I never was like a server at a restaurant. So for me I've only been in management. I went from, you know, being on my own being a manager I would say not a very good one at all in any way, shape or form and I was maybe managing four or five people. Then I went to a mom and pop business where there was one central leader and I was just kind of a cog in that wheel and I molded my style of leadership then to, you know, be a service leader and help out the staff with Under Me and kind of bring whatever they needed to my boss. And then at Verds it was kind of like a, you know, a small to mid-sized growing business where they were really trying to implement their leadership style and I just I kind of went along with whatever they needed. But it was a little bit autonomous in the sense that they were headquartered in Austin, not in Houston. So you kind of also have to develop an in-store, in-store leadership that you are, at the end of the day, the point person. Papa's taught me that you know, you can't manage everybody to say, especially in a big restaurant like that, you do have to individualize your leadership style with people. And I think in my industry I think that's a really important lesson, because some because at the end of the day, when you're managing people and you're being a leader, there are the moments where you're in a big like pre-shift total and everybody's listening to you and in those scenarios I would say I tend to do extremely well because I can command a presence. And then there's the times where you have to sit someone aside and listen and just let them talk and that is not necessarily you leading from, that's not necessarily you leading in the sense that you're telling them what to do. Chris: But by you just listening. You're showing them that you're there for them. Rafael: And I think I would describe my leadership style as I don't even know this, but experiential. You know, I'm in the trenches with my people and I also know when to pull back and let them do their own thing. Chris: Well, I think what you were describing earlier is as a leader, how important it is when you're talking about the listening side is to demonstrate an empathy Right, and you learn so much. I mean you're managing or leading people. Everyone's different and one size doesn't fit all. Rafael: One size does not fit all, especially in the restaurant industry, where, in a lot of hospitality, where you're dealing with teenagers, middle-aged people and older people I mean just from the age perspective, let alone people's different backgrounds you have to not everyone's in the same bubble, right. Chris: You know, some of the best workers I have are teenagers, and it's their first job. Rafael: They've never done anything before, but I've molded them into what I need at Craft Pita. And then other times you might get someone who's a 20-year vet in the industry, but they don't listen. So you might have to stroke some egos and let them do their thing, but those two people you have to manage completely differently. So, yeah, it's been definitely. Throughout the years, my leadership style has changed and I think that's a good thing, to acknowledge that. You can go through ups and downs, but just constantly being, I feel, like awareness, in my opinion, is probably the most important trait as a leader if you're the owner of a company, because if you have that awareness that you might need to change your leadership style or sometimes you got turned up, sometimes you got turned down. That will take you really far. Chris: Very true, very true. So interested to ask you about this. So you've expanded to a second location. You said earlier when you started you were always planning to scale this business. So I have to think this is a question on a lot of entrepreneurs' minds what does it take, or when do you know when's the right time to make that expansion? And you know because you're gonna be facing it. You probably are now, but when do you go to the third store? So what are some of the things that you look forward, that you've learned to look forward to know when it's right? Rafael: Of course I think it's. I think this applies to a lot of businesses and it definitely applies to the restaurant business. One, obviously, financials you have to make sure that you can afford to expand right, and I think that's obviously an obvious one. But you should be conservative. This is a tough business in the sense of it's very capital intensive. To open up a restaurant Construction is a nightmare. Dealing with the city is a nightmare. You don't. You can have a really good idea of what something will cost to build out a restaurant, and I can't tell you it's wrong. I definitely had some struggles getting this store open and it was already a second-generation restaurant which normally should be easy, but it goes to like. Chris: The lease terms and tenant allowances are important, and then timing of when you're going to actually rent commences off of completion. All those. Rafael: Which the first store. You know, we dealt with a smaller landlord, the local landlord, and this new store. Over here on Bubblest Weedway there's a big national one. And just dealing with that legal process inside. That was really eye-opening to me. But yeah, that all plays into the financial decision, right. Secondly, I would say knowing when you're ready is it's a management autonomy issue? Is the restaurant running itself? Yeah, if you took a step back. What would happen? I was fortunate enough to kind of have a situation be forced upon me in that I had to go on my honeymoon, I had to get married. You know, my wife wasn't gonna let me get away with that one, so she was tired of waiting Is she we watch ad proposed and then COVID pushed back our wedding about two years but it was kind of a good. Hey, I need to get this restaurant to function for two weeks without me and obviously with COVID having all this stuff. I was very hands-on with the business but I think a lot of small business owners, specifically a lot of restaurant small business owners, struggle with like literally trying to step away. You have to. It's active, that don't do it passively is I'm going to walk? Chris: away today. Rafael: And you know what, if they mess up a catering order, if they mess up a few, this happens, that happens. You got to kind of, you know, eat sour grapes, or else you're never going to be able to scale. Chris: Well, and I think on that mess up part, I mean, obviously it's usually more in how you respond to the mistake than the fact that you made one, because we're all human, yes, now, if you consistently make mistakes, that's one thing, but if you make it, your customer may not be happy, but how you respond and own it and make up for it will speak volumes as to whether they give grace. Rafael: Absolutely Two things on that. One, I always one of my management things is it's okay if you make mistakes, I just care that you learn from them. If you show me you don't learn from mistakes, that's telling me you don't care? Yeah, you know we're, it's human, whether it you know, what we do is very. There's a lot of errors, whether it's temperature or technique, whatever. It's just a matter of if you do learn from those mistakes. So, if you have to step away from your business and your team makes a mistake, it's very important to say, okay, guys, how do we prevent this from happening again? And on that same point, this is something I learned from Papas is that you know if you make a mistake and you train your guests that, no matter what mistake happens at our restaurant, we're going to fix it, whether that's comping it, remaking it, giving them a gift card for the next time they come in, or just if some of those people want it as an apology or to be heard. It trains your guests that your money is good here. If you spend $50 here, we're going to make sure you get $50 worth of your time and money. Yeah, so I think that's super important, Very good. Chris: Well, so Let me ask you this I mean, as we kind of wrap things up, what are one or two things you would advise anyone, whether it's to start a restaurant or just any business, to kind of keep in mind as they move forward with that plan, that dream, whatever it may be? Rafael: I would say, you know, to touch on a few things that we've already talked about at the end of the day. The restaurant business is not about food. It is about people. It is about your own people and it is about your guests. You're gonna spend a majority of your time dealing with your own people or dealing with guests. You're not gonna spend a whole lot of time, you know, coming up with recipes and making sure the food turns out perfect. That's obviously a given, but the restaurant industry is a people business, so you have to mold everything you do around taking care of your own people and taking care of guests and if you approach it. That way you're gonna be successful most of the time and hopefully you're halfway decent at making food. But that's just probably the first thing I would tell people. Secondly, you know I don't want to be one of those people that says stay away from the restaurant business. But this is. It is a business that requires high business acumen as well as knowing how to operate. I consider myself you know I'm a chef. I've been cooking for 10 years but I will always consider myself a business, a businessman before a chef. And I think that's an important I think if you approach operating this in this line of work as being a businessman or woman, I think you're going to be successful. More than do I make delicious food. Chris: You're 100% right. I mean, if you can't run in any industry, if you can't run a disciplined business, you can make the best product, whether it's a plate of food or a widget your business won't survive. Someone else will take over that widget or replace you, but your business won't be there unless you can run a smart, disciplined business and that has financially human capital yeah, lots of tenants to it. So, very true, all right, so let's have a little fun. This will be interesting from you, since you've shared your passion for your food and from your culture. Do you prefer Tex-Mex or barbecue? Rafael: Ooh, that's a tough one. I'm a big barbecue guy. That's probably my passion food. Chris: Oh, I love it yeah. Rafael: I'll never get in the business. I actually just did a barbecue cook-off in Midland at the Permian Basin Cook-Off. I did barbecue for about 14 hours. I respect all my friends at barbecue so much more after doing that, I bet. Chris: So barbecue, barbecue, it is all right. So if you could take a 30-day sabbatical, which you've already explained how difficult that would be for you where would you go? What would you do? Rafael: Oh man, 30-day sabbatical. I've always wanted to do a trip to Japan. I've yet to go there. It's one of the culinary capitals of the world. I would like to go there and kind of get out of my comfort zone from a perspective of not being able to speak the language and not being super familiar with the culture. So I probably do about 30 days in Japan if I could. Chris: All right, and I don't usually go here, but since you're an expanding business, you've got two. When can we expect the third-craft, pita? Rafael: Third-craft pita. We're very comfortable with where we're at right now. It's going to be a lot easier to find a third location when we already have two operating. And I told my realtor team hey, give me the green light. I'd probably say 16 months. Ok 16 months. Chris: Well, as I've said before, I've told you I think you're doing a great thing. It's a great concept, the food's outstanding and congratulations, thank you so much. Rafael: I really appreciate it because it really means a lot. Chris:Well, thanks again for being here, enjoyed here and your story, and I wish you the best success. Awesome, thank you. Special Guest: Rafael Nasr.

Class E Podcast
It's All About the Secret Sauce With Guest Chris Sexton

Class E Podcast

Play Episode Listen Later Oct 11, 2023 26:20


Finding that secret sauce can lead to success, but it's not always easy to find. In this episode of the Class E Podcast, we talked with Chris Sexton, founder of the barbecue catering company, Sexton's Smoke-N-Grill. From learning countless lessons in the Greenville Starts program to dealing with personal health concerns, Sexton discusses the future of his company, how he has become more appreciative of his skills, and the importance of keeping priorities straight as an entrepreneur. Guest: Chris Sexton Facebook: https://www.facebook.com/sextonsmokingrill Host: Mary Sturgill Producer: Isabella Martinez '24   TRANSCRIPT:  MARY: Hi there, everyone. Welcome to this episode of the Class E Podcast. You know, this is the podcast that is brought to you through a partnership between the Hill Institute for Innovation and Entrepreneurship and the Communication Studies Department here at Furman University.  Today's episode is part of the everyday entrepreneur series in which we talk to entrepreneurs who have graduated from our GVL Starts program. And the reason that we're doing that is we want you to hear their stories and be inspired by them wherever they are in the process of their venture. So today we have a very special guest, Chris Sexton, who is the owner of Sexton Smoke-N-Grill, and a new venture that he's calling Mr. Sauce It Up. Chris, welcome to the show.  CHRIS: Thank you for having me. Thank you for having me.  MARY: Chris, I'm so happy that you were able to join us today because one - I'm gonna look right into the camera for the YouTube people - Chris' food is amazing. Now when I was in, you know, I was a broadcaster for 20 years, and when I was in Texas, the broadcasters and you know different people in the community, they call us celebrities or whatever, but we had to judge barbecue competitions. So I've judged many a barbecue competition in my life. And Chris' is by far the best of any that I have done and it all boils down to the sauce, which I imagine is where the Mr. Sauce It Up came from.  CHRIS: That is exactly where Mr. Sauce came from. I've created a new sauce using fruit, alcohol, and just a wide imagination to come up with different sauces. We've got about 10 to 15 sauces that we do.  MARY: Yeah.  CHRIS: All incorporating fruits and alcohol like I said. Like you can take Hennessy bourbon… MARY: Don't give your whole secret away.  CHRIS: No, everything's not coming, but we've got great stuff coming.  MARY: We don't want people to copy it. And you will want to once you taste this, you'll want to try to redo this at home. Tell us about how you got started with this. Because you're in finance.  CHRIS: I'm in finance. So to be honest with you, from working in finance, I've always had a passion for cooking. I started cooking when I was like 14 years old working at a little restaurant in Greer with legendary Peggy Davis. She owns Peggy's Diner in Greer. Started working with her, handing out trays… and I kind of fell in love with that whole environment of cooking, creating. Did that all the way through high school… worked at McDonald's. But the sauce and the cooking came from truly talking on the phone with a guy from Mississippi on the phone about a car deal.  MARY: Oh, wow. CHRIS:  And he asked me what I was doing for Thanksgiving. I told him I was going to try fried turkey. He said you need to smoke it.  MARY: Yeah.  CHRIS: And that day, I smoked a duck, a turkey and a…a duck, a turkey, and a Boston butt.  MARY: Wow.  CHRIS: And they all came out great.  MARY: Yeah. On your first time. CHRIS: On my first time, it came out great. Not perfect, but great. MARY: Right.   CHRIS: But it was addictive. It was like it was something that…it's what I needed at that point in time to slow me down and give me some perspective. MARY: Yeah.  CHRIS: And from there it's just kind of bloomed and grown from there.  MARY: Yeah. What inspired you? Was it just the conversation with him or have you always… I mean, you've kind of always been a little a foodie. CHRIS: A foodie.  MARY: I mean, I consider you a foodie.  CHRIS: So what really inspired me is the process.  MARY: Yeah. CHRIS: I fell in love with it. And I'm a person that loves serving people. So getting to feed people, seeing smiles on their face, people honestly patting your back saying this is the best barbecue I've ever had.  MARY: And there are some smiles when they eat your stuff.  CHRIS: And it's encouraging. So the sauce idea actually came… I made a dish, not gonna say what dish it is, and my mom tried it and when she got done, she says “man, this would be good on some chicken wings.” MARY: Yeah.  CHRIS: And so me being who I am, it took me like three years… I sat there and thought about it and one day while I was at work, all my great ideas come on the clock… So I was sitting there one day and I'm like bingo. I figured out how to do it, I tried it, and I kind of took it off from there.  MARY: Yeah.  CHRIS: And that's… the biggest thing about my barbecue is it's different. MARY: Yeah. It totally is.  CHRIS: And I refuse to do what everybody else does. And my goal with my business is to create a new space in a traditional market.  MARY: Yeah.  CHRIS: When you go to restaurants and you go places… that's the other thing that inspired me…I'm tired of eating vinegar based, tomato based, mustard based barbecue sauces. You know, I want something different and so that's what we've done. MARY: So you have…how many sauces did you say now?   CHRIS: Got around 10 or 15 sauces. MARY: Yeah.  CHRIS: The newest…the newest sauce that I'm working on would be a Carolina white sauce. Carolina is known for that fruit flavor for peaches and things of that nature.  MARY: Right.  CHRIS: So imagine taking your traditional yum yum sauce mixed in with a little bit of fruit.  MARY: Oh yeah.  CHRIS: And we're working on that and actually combining the smoked brisket and pulled pork with fried rice with that yum yum sauce.  MARY: Oh my gosh. My mouth is watering.   CHRIS: So, yeah. Look for us on Tik Tok soon. MARY: Yeah, there you go. When we were in the… we were in Greenville Starts cohort together, and the first time I tasted Chris's sauce, I was like, “Chris, you need to call this the best damn sauce ever.”  CHRIS: That is actually the slogan. “The best damn sauce you've ever had.”  MARY: Yeah. Yeah. I love it. CHRIS: I tell people… I'm trying to be humble, but when you have something that's different, you have to let people know.  MARY: Exactly.  CHRIS: And this is when you taste it, it just… it kind of shocks you because you're not… you're thinking barbecue sauce.  MARY: Totally.  CHRIS: But it kind of just catches you… you're like what is this?  MARY: Yeah.  CHRIS: And it just kind of sucks you in.  MARY:  Well, and I think you just said it correct. You're taking a space that is so kind of entrenched in kind of the flavors that are there. And you're creating something new with the idea of barbecue. And I love that. Can you talk us through the process of creating this business because I guess you started with the smoking first and then the sauces and then where are you… how, you know…do you have a website? Do you have a restaurant? How are you coming together?   CHRIS: What we're doing now is… So this is how I initially started out. I was at my desk at Ford one day having a conversation with someone that asked me about catering.  MARY:Yeah.  CHRIS: So I hopped online, in between calls, looking at what I had to do to get started so I went online, I got my EIN…and kind of got in touch with state and got everything going. MARY: Yeah. CHRIS: That was in 2016. So for the last three years off and on, I've done a lot of catering. A lot of on site. My biggest thing is on site grilling. MARY: Yeah. CHRIS: I put on quite a show when I grill.  MARY: I mean you can tell with his personality. You're the entertainment and the food.  CHRIS: So yeah, if you're looking for an entertainer and a grill master, I'm your guy. So we… that's my big thing is I travel, I take my grill, I like to set up shop.  MARY: Yeah.  CHRIS: And I also work with… I've been working… I had been working before I took my current job with the church during the Wednesday night Bible studies. I'm big on… like I said my dad is a Baptist preacher.  MARY: Right. CHRIS: So we grew up in the country and all I know is fellowship and eating. I've probably eaten in every county in the state.  MARY: Yeah. CHRIS: Every, every type of food you can have, but those experiences is what inspired me. But long story short, the business idea and the model came from just three years of having to stop and go because working back and forth, and now learning how to balance time, family, and everything. The Mr. Sauce It Up will give me the opportunity to kind of work and service people and enjoy it and also make my first big shine through Mr. Sauce It Up.  MARY: Yeah. So I want to talk a little bit about… because entrepreneurial, you know, ventures are, it's a journey, right? And I know we all have setbacks, and I know that you've had some setbacks, including a health setback for a while that kind of made everything go on pause. So how are you doing now? And let's talk about the setbacks and how you overcame them.  CHRIS: Oh, wow. So it's crazy the night that we had our finale. Our, you know, our big pitch.  MARY: Yeah.  CHRIS: I found out I had a nodule on my thyroid that they had to go in and remove. They thought it was small, but it ended up being like the size of a baseball. MARY: Wow. CHRIS: So it sat on my chest and it kind of impacted me. Dealing with things like that… it impacts…your thyroid is your gas and keeps you going. MARY: Yeah, yeah.  CHRIS: So for like the last three years, I've ran on nothing but adrenaline and you didn't know it. So it's taken me a little… little bit of time to adjust to being normal and not having that excess energy and just you know being actually knowing what it feels like to be tired and having to take a nap. MARY: Right. CHRIS: So for the last six, you know, part of that I ran on you know pretty much adrenaline because the thyroid and I were back balanced. Kind of and it… but it gave me an opportunity to really sit back and refocus and re-  kind of gave me a bigger hunger for what I want to do. I've looked at food trucks, and things like that, but a crazy and a funny fact about me is I've had 22 wrecks in my lifetime.  MARY: 22 wrecks? CHRIS: 22 automobile accidents.  MARY: Oh my goodness, Chris. CHRIS: So me driving a food truck probably nobody around here wants.  MARY: They don't mix.  CHRIS: That's not a good mix so I'm in the process of trying to find a building either…. I would prefer Greenville, but the Spartanburg area is also something I'm open to… to certainly barbecue out of. But until then, I'm gonna let myself and also cakes and sweet potato pies…  MARY: Yeah. Oh my god. Sweet potato pies.  CHRIS: …kind of feed my business and my picture while I kind of work my nine to five and do your day in and day out thing.  MARY: Yeah. CHRIS: The struggle. You know, being an entrepreneur… it takes a… you got to have a little bit of crazy in you to be an entrepreneur. But the biggest thing you have to have to be an entrepreneur is being resilient.  MARY: Yes. CHRIS: You never know what obstacles are gonna come your way. I never expected and never thought I was sick MARY: Right. You had no idea.  CHRIS: I had no idea. You know, and even through it, you got to, you know, one of the mottos I live off of is fake it till you make it.  MARY: Right.  CHRIS: You got to go into every day, no matter what's going on, with a smile on your face, press through. And you kind of put it behind you and live in that moment because you never know life can be taken from you at any given moment. So you got to enjoy it no matter what's going on. And that's what's kind of helped me evolve and get to the point that I'm at now. And for me, I've learned you know, when things are going… when things are going at their best is when things…your biggest hurdles are going to come. MARY: Yeah.  CHRIS: For me, I spent all last year partnering with people and creating a lot of partnerships I kind of had to give up. So to kind of reinvent myself and roll back out and rebrand as Mr. Sauce It Up, it's going to be really exciting and I think it's the right way and path to go. The biggest thing I can tell other entrepreneurs is don't be stubborn.  MARY: Yeah.  CHRIS: For a whole course, through Greenville Starts, everybody told me, “it's the sauce, it's the sauce, it's the sauce.”  MARY: Yeah. CHRIS: And I love cooking. I love grilling.  MARY: Yeah.  CHRIS: And a couple of weeks ago… I'd say a couple of months ago, it finally dawned on me “Hey, you've got a product that nobody else can do.” MARY: Right. CHRIS: This is your…this is your headline and this is your angle. I'll still grill and barbecue and do barbecue and whatnot. But…I have a gift that I gotta give the world.   MARY: Right. That's your foot in the door -  think the barbecue, but the sauce is so scalable. I mean it gives me goosebumps just thinking about where you could go and seeing this on grocery store shelves. I mean it really does. CHRIS: That's my ultimate goal. My ultimate goal is to… MARY: I mean I literally just got goosebumps.  CHRIS: We've got here in Greenville…we've got we've got the Duke's manufacturing. I want to have something similar to that here just pumping out sauce so hopefully when you're getting you know your Chick fil A… go to McDonald's get a sauce packet, and you'll see my pretty face on it. MARY: I love it. I love it. And you said some really good things about there in that comment about being resilient and not being stubborn. And I think being willing to go with the flow because I know you were in talks about a space right when you got sick. And so every… I mean literally everything went on hold.  CHRIS: So with the space…this is another thing that when in the restaurant business, it's a risky business… MARY: It is.  CHRIS: For me, the biggest thing is finding people that want to invest and that will roll the dice on a restaurant. MARY: And that's true for all restaurant owners.  CHRIS: That's been the biggest challenge, but the buildings I looked at have been highly competitive.  MARY: Yeah.  CHRIS: I looked at a property in Duncan… was looking at property in Duncan and somebody came in at the last minute and outbid me by like 30 grand.  MARY: Right. Wow.  CHRIS: And being in finance and being the underwriter you… the risk… I'm very careful if that's the risk I take and I evaluate it making sure I'm making solid decisions.  MARY: And you understand that risk.  CHRIS: Yeah, because being in business for yourself, is a risk alone. MARY: Absolutely. CHRIS: You don't want your business upside down and trying to make back money that you may not be able to get back. That's not a wise move so we kind of backed off a bit. And it's been a blessing because like I said had I got into it then, gotten sick, we would have been in a worse situation. So thankfully, we got into a position where we're able to press pause and my true belief is that when my opportunity and my time is there, it's gonna happen but until then we're just gonna keep doing what we have to do.  MARY: One hundred percent. One hundred percent. So what's been the most rewarding thing about starting this venture for you? CHRIS: Networking and meeting new people.  MARY: Yeah.  CHRIS: And to be honest with you, the other thing people don't know about me is I'm kind of shy.  MARY: I don't believe that for a minute. Because the first night we were in Greenville Starts together, I mean, we clicked, obviously but…but yeah, no. But you, probably like me, I have to overcome it when I'm with people. Once I get there, I'm fine.  CHRIS: So I guess you can say my shyness comes out different. When I get nervous and get shy, it's like lights on, like camera on, game on, let's go. So you never really know it. So I embrace it. And being able to… this has taught me how to fight through that and how it really… I guess having a good time meeting new people and the biggest thing I think I'd say is just learn. Being an entrepreneur has taught me so much and it has stretched my limits. And so when I was younger, I was a hothead. MARY: I believe that.  CHRIS: Something happened… something happened and I'm, you know, fired up. MARY:  Right. CHRIS: So for instance, a couple of weeks ago, my first time back out and I go to leave and my grill catches a flat tire.  MARY: Oh, no. Yeah.  CHRIS: And the old me would have been saying Sunday School words and throwing stuff and all upset. We just pressed pause and regrouped and it has made me grow and develop patience. And understand that some things you cannot control. If you can't control it, you just move on.  MARY: I would think that this entrepreneurial process that you're on, and that health scare, that major health scare, probably both had something to do with that kind of, okay, it does no good to get upset about this stuff, just deal with it one thing at a time. CHRIS: Well there's another factor in there also. I've got a grandson now.  MARY: Oh yes, that's true. Happy Grandfather.  CHRIS: So, being a grand dad, it kind of…I would say the moment I took my daughter to the hospital.  MARY: Yeah.  CHRIS: Got the call. I had to take her to the hospital. That's when life changed.  MARY: Yeah.  CHRIS: We just kind of… I don't know it's something about having a grandchild that you can give back to them.  MARY: Right.  CHRIS: It kind of changes you. At the same time, it just shows your new appreciation for life. So all of that within the three month period, it really has slowed me down… made me appreciate life even more. But at the same time, it's made me a fighter. It's really made me a fighter and made me...  MARY: Yeah, because you want to be around for him. CHRIS: Yeah, to be honest with you, this whole get up, I've thought about for the last four years.  MARY: Yeah, this is what it's gonna look like. CHRIS: Yeah. And going through that experience gave me the courage to kind of step out of the shell and put it out there and move forward because what's the worst thing that can happen? Somebody will laugh at you? MARY: Right. Exactly.  CHRIS: You know at the end of the day, this is who I am.  MARY: And who cares? If they're laughing at you, they're looking at you?  CHRIS: They're looking at you. They're going to remember.  MARY: Right.  CHRIS: This is who I am. A little country guy from South Carolina just trying to sell some good barbecue and sauce.  MARY: Yeah, I love it. Chris, I love it. So we were, like I said we were in the Greenville cohort, Greenville starts cohort together, and for those of you may not know that's like an eight week program where the participants could expose everything from, you know, fundraising, capital to legal issues and things that of course, you're not an expert in everything, right? And so we learned so much to marketing. I mean, you name it, we touched on it in that class. What were some of the takeaways from that that you are implementing now? Almost a year later.   CHRIS: Want to hear a good story? MARY: Yeah always.  CHRIS: It kind of goes with the question you asked me previously about my experience.  MARY: Yeah.  CHRIS: Do you remember the night that we wrote the breakup letter?  MARY: Yes. We had to write a breakup letter to our business. And you know, you're the second person to bring this up in these conversations, but his breakup letter was amazing. But go ahead.  CHRIS: I lived my breakup letter this year. And that night, the night that we had read that letter out loud and share that experience…  MARY: Yeah.   CHRIS: I lived it this year. And going through it and living it and seeing your dreams kind of, let's just say be taken away.  MARY: Yeah, yeah.  CHRIS: It makes you appreciate your gifts and it makes you appreciate what you did. So, without Greenville Starts, I probably wouldn't have pushed through this year. I probably would have gave up and just gone back to working the nine to five and just you know enjoy life but my experience with Greenville Starts and having to, you know, go through a made breakup with something that you love and then having to go through it actually, it kind of gave you…I can go back and I can remember some of the speeches that the speakers gave. I will say it gave me motivation and courage and more than anything else it taught me that I'm not a know it all. I've worked in the banking industry for years as a banker and on the other side of the fence, telling people no to loans and being actually on the opposite end of it - trying to be approved, trying to get all your documents together gives you a whole new appreciation for what people on the other side go through. We've been on both sides. I have an appreciation for both now. But I will say that Greenville Starts… it gave me the courage to bounce back and gave me that fight and it prepared me for the hurdles that were ahead. So if anybody in Greenville County has a business idea and they feel like they can make it, but their confidence is an issue, I would definitely recommend Greenville Starts. We have the all-American, the GOAT, the great, the best hair, Brian Davis. He just…has a way of inspiring…inspiring you. Like just…any of our cohorts, I think about you guys and where you're at and I see your successes and it motivates you. You see other people being successful and that pushes you on.  MARY: One hundred percent. Which is the whole reason we do this podcast is to share your all's stories with the public so that we can encourage other people to go ahead and follow their dreams and create their ventures, you know, and I mean, you talk about Greenville Starts being an inspiration, you're an inspiration to, I know our entire cohort.  CHRIS: I appreciate it. I appreciate it. I think, you know, God puts you in a certain place at a certain time. And I think I feel like that was a perfect time because like going into it, I'll be honest with you toward the end of class I kind of felt like something was off. It drained me. It drained me. It put me… I don't like talking about this aspect of it, but it impacted my mental health.  MARY: Yeah. CHRIS: It gave me some anxiety and put me in a depressive state and it you know, that's not me. MARY: Right. CHRIS: One hundred miles per hour, 100 days a week.  MARY: Yeah.  CHRIS: So at the end of the class, it was like okay, what we got going on? And you guys really pushed us through. It's like a family. It's not just like a class. It's not just like a group of people. It feels like family and a cheerleader group.  MARY: Yeah. CHRIS: I've coached football, played football. I love sports and I love that team aspect. And that's what it felt like. Each week it wasn't a competition against each other. It was a way that we can push each other…push each other to make each other better. It's been a year and a half now. And when you can go back and recall specific conversations and specifics in a needed time, that's when you know it had an impact on you. That's what Greenville Starts said to me.  MARY: Yeah. CHRIS: It put a lot of information in this encyclopedia up here.  MARY: Yeah. I love that. I love that. What advice do you have to other entrepreneurs that you… either from Greenville Starts or just your personal experience?  CHRIS: I'm going to steal one from Ted Lasso.  MARY: Okay.  CHRIS: The great Ted Lasso. You got to believe. And what he also says…that's number one is believe.You got to believe in yourself. You got to believe in the process and you got to trust, you know, that the good Lord put you in a position he gave you whatever gifts that you have for a reason. And you have to follow the plan in your process. When things get hard, you got to go harder.  MARY: Yeah.  CHRIS: And when things get easy, you got to kind of scratch your head and say, why is that so easy and know that something's coming. MARY: Right. Be prepared.  CHRIS: Be prepared because something's around the corner. The other thing is, I'm a Florida State fan. And the reason I'm a Florida State fan is because of…He talked about a lot about what you do when people aren't watching.  MARY: Yes.  CHRIS: And as an entrepreneur… it's what you're doing behind the scenes and when people aren't watching is what's going to make you successful. You know, the… you know, I cook a brisket 26 hours for it to be gone in 30 minutes.  MARY: Right.  CHRIS: So it's what I do behind the scenes and the effort and what people don't see is what makes you a great entrepreneur and a great… and great at what you do. And the last is something I learned from a guy named Tom Leopard back in 2012. Your priorities. As an entrepreneur, you have to have your priorities in order. It's got to be your faith, your family, and your fortune. If those three get out of whack at any point in time, it's time to step back, reevaluate, and bring them back in line and then things will start flowing so greatly. So always remember your faith, your family, and then you're fortune and as long as those three are aligned, you can always be successful and bounce back.  MARY: I love that. The three F's.  CHRIS: The three F's.  MARY: I love it. So you brought some… before we let you go, you brought some goodies for us. So, boy, I wish people…I wish we had smellivision because that cake smells so good. Oh my gosh. So Chris, what do we have here? This is one of the cakes that you do.  CHRIS: This is my spin on a…You lived in Kentucky?  MARY: I did not live in Kentucky.  CHRIS: I don't know why I thought you lived in Kentucky. So, this is my take on a Kentucky butter cake.  MARY: Okay.  CHRIS: So I call it a Carolina butter cake.  MARY: Yeah.  CHRIS: It's a pound cake with some secret flavors.  MARY: Okay.  CHRIS: As all things as Mr. Sauce It Up does, we also do cake glazes.  MARY: Yeah.  CHRIS: So this has a pineapple. No, I'm sorry…a peach mango rum glaze to it.  MARY: Yeah. Oh my goodness. This is going to be so good.  CHRIS: Mixed in butter. Something I came up with. I am the king of taking a recipe and turning it into my own. MARY: Right.  CHRIS: So, that's what I do the best. I don't… You know, if I go out to eat I'm probably going to take two… two combos, two meals and turn it into one.  MARY: And put them together.  CHRIS: So this is kind of what I've done with this and created my own flavor, but I feel pretty confident, I'm willing to bet you a $1 to your paycheck that you've never had a flavor like this.  MARY: All right, let's see it.  CHRIS: Let's see. Let me pull out my Dexter knife.  MARY: He's going to pull out his Dexter knife. Oh yeah, that's a Dexter knife. All right. All right. All right, let's cut into this sucker. So remind me again what the glaze is?  CHRIS: This is a peach mango with a hint of rum.  MARY: Okay.  CHRIS: And some other stuff that I can't really share with you at the time. I'll share with you at the time.  MARY: Right let's go. Cheers.  CHRIS: Cheers.  MARY: Oh my gosh.  CHRIS: Mmm. Mama where you at? Come on over here, get smacked.  MARY: That is so good. Did you say mama come on over here, get smacked?  CHRIS: Come on over. Come on over.  MARY: Oh yeah. So, we're going to have to change that phrase, well or add to it…the best damn sauce…the best damn glaze…because this is good stuff.  CHRIS: Thank you so much. Thank you so much.  MARY: Oh my goodness. Alright. So again, we'll have the links to how you get in touch with Chris wherever we're posting this podcast, both on YouTube and all of our podcast channels. Just look under the copy, the body copy. And you'll see that there because you… if you are having an event, you want to hire Chris to cater that event. Again, it's the entertainment and food. You can't beat that. CHRIS: Let me tell you.  MARY: Yeah.  CHRIS: I didn't mean to interrupt, but this cake is good.  MARY: It does taste good.  CHRIS: It tastes good. I'm a pound cake foodie and I think I've found something here.  MARY: I think you have too.  CHRIS: Not to brag, but yeah.  MARY: I think…I can't put it down. I got to finish eating so I can say the rest of the show so I can close the show out. Oh my gosh. So good. Alright. How do people get in touch with you if they want to get some sauce or they want you to cater an event?  CHRIS: Cater an event. You can find me on Facebook - Chris Sexton or Sexton's Smoke-N- Grill. Also on Instagram, it's Chris Sexton or Sexton's Smoke-N-Grill. Email me at sextonssmokengrill@gmail.com. www.sextonssmokengrill.com. And that's just Sexton's, Smoke, the letter “n”, grill.com. Or you can call me 864-680-4629. We got the sauces.  MARY: Alright, Chris, thank you so much.  CHRIS: Thank you. Anytime. Anytime.  MARY: So remember, if someone you know is an entrepreneur or has an idea, Greenville Starts is a great place for them to get started or if they're somewhere in the process along the way and they just need that little extra “umph” to learn things that they don't necessarily know, then that's a great place. So, in order to get into the next cohort, all you have to do is Google Greenville Starts and Furman and it should be the very first link that pops up and get yourself on that list.  The other thing I wanted to remind everybody of is that we have the Paladin Pitch competition, which if you are a Furman student, you can win $10,000 for your venture. That's coming up in April, but you have to participate in some pitch competitions before that. So, contact the Hill Institute, get your pitch to them and start working and then from all those pitches throughout the year, they'll choose the finalists to pitch in April. So be thinking about that, be brainstorming. If you want to do something, now is the time to do it. So, that does it for this episode of the Class E Podcast. I'm your host Mary Sturgilll. Remember this podcast is brought to you through a partnership between the Hill Institute for Innovation and Entrepreneurship and the Communication Studies Department here at Furman University. It is produced by student producers, Kayla Patterson and Eliza Polich, a true example of the Furman Advantage. And remember, you can get this podcast two ways now - you can listen to it wherever you listen to your podcast, we also have a YouTube channel where you can watch it and you can see this beautiful cake that we just ate and see us eating it. And we also.. follow us on Tik Tok if you're on Tik Tok because we just started a brand new Tik Tok channel and you'll see a lot of the outtakes and a lot of cool stuff on behind the scenes stuff on that Tik Tok channel. Until next time everybody, dream big.    

The End of Tourism
S4 #6 - Decoding Degrowth & Boosterism in the Balearics w/ Macia Blazquez

The End of Tourism

Play Episode Listen Later Oct 6, 2023 57:55


On this episode of The End of Tourism Podcast, my guest is Macià Blázquez-Salom, a professor at the University of the Balearic Islands, who specializes in the Geography of Tourism, Territorial Planning, Sustainability and Degrowth. He utilizes his teaching and research activity in the environmental movement (and vice versa), and through his activism in the Grupo Balear de Ornitología y Defensa de la Naturaleza (GOB) and Alba Sud.Show NotesMacia's Journey in the BalearicsThe Beginning of Mass Tourism through Currency DevaluationContradictions in MallorcaCocoon Tourism in SpainYou Want to Work in the Balearics, You Have to Sleep in a TentBoosterism and Green BoosterismDegrowth Definitions and ContradictionsImagining Other Modes of TravelImagining Other Modes of ResistanceHomeworkGoogle Scholar: Macia BlasquezOrcid: Connecting Researchers with ResearchersMacia Blasquez's UIB SiteTranscript[00:00:00] Chris: Welcome Macia, to the podcast. From what I've been able to dig up around your life and work that you've been studying, tourism and its contradictions for a very long time. Now, I'd like to ask you what drove you towards a career as a professor and critic of the tourism industry?[00:00:24] Macia: Well, in fact, even before finishing my degree, I was involved in social movements here in the Balearics, in Mallorca, particularly. I was member of the committee of the volunteers collaborating with the GOB, which is the biggest ecologist group. Then by the eighties and perhaps influenced by this collaboration, I decided to study geography and to analyze the relation in between tourism and natural conservation, because by then we had promotion after the tourism boom in the sixties and seventies.The eighties Spain became member of the European Union and some of our politicians, they decided and they were promoting the Balearics as second residents destination for north European people, and this means that investment in the real estate market even increased with foreign people buying second residencies and promoting as well the promotion of more urban development for this purpose.And that was written in the natural areas due to what we call "green" or "gray-grabbing" with new facilitation of land here in the Balearics. And this was the main aim I had to develop my research on this topic, with special planning and natural conservation in the Balearics.Afterwards we had what we called the real estate bubble that began in the nineties and burst in 2008. And that was a period when I was more involved, particularly in the social movements. In fact I feel more related with activism than with academia. After the crisis with my age, I took the decision of giving support to younger people in the social movements and devote more time to the academia with colleagues Ivan Murray or Ernest Canada or Robert Fletcher or Nora Muller, other people who are working in this research group in the University of the Balearics Islands. But I still working with the NGOs Alba Sud, particularly the GOB, and other social movements in this region in the Western Mediterranean region particularly. [00:03:03] Chris: I have some questions regarding these social movements that I think maybe we'll get to in just a bit.But, I'd like to try to offer a bit of context for our listeners in part because before I heard of your name and before I interviewed our mutual friend Ivan, for the first episode of the podcast, I don't think I had ever heard of Palma or Mallorca before, even as someone who had traveled through Europe and many other parts of the Mediterranean.And so I'm curious if you could give us a bit of background on how Palma came to be over touristed, or at the very least, what you've seen come to pass in your time there. I mean, I know it's, it is also historically has a lot of deep importance for the Spanish state and Mediterranean history culture.[00:03:55] Macia: I'm sure you have heard about the dictatorship of Franco in the forties, fifties. Mm-hmm. Fifties. He was given support to the Luther in the second World War. And after the defeat, the technical support he had was coming from Opus Dei, was introducing tourism and real estate business as a way to have foreign direct investment.And as a result, Spain had a very important development of, of real estate business in this new areas particularly related with sun and sea tourist resorts. Perhaps you have heard about Costa Del Sol, Benidorm in Costa Blanca, or Costa Brava in Catalonia. And the same for the Balearic Islands. During that period, in the case of of M we had a huge amount of new hotels being double developed.And they were financed partly by people coming from North Europe, particularly from Germany. There was a novel accumulation of capital in that, in those regions that have had industrial development and investors realized that tourism could be a good business, introducing this way of consuming savings, consuming income for working class people in the UK, in Germany, and this is how in the Balearics we had the development of what we call the tourist boom in the sixties with hundreds of hotel being built up every month really in Mallorca, in Ibiza. Perhaps you have heard about Ibiza, right? [00:05:52] Chris: And this is just to be clear, this is in the first decade of international mass tourism post-war, correct?[00:06:01] Macia: In the Sixties, because the two first decades after the war, our regime, the dictatorship of Franco was defeated. I mean, they were given support to Hitler and Mussolini and Spain was set aside. And the model they were following was self-sufficiency. We became members of the UN United Nations by the end of the Fifties when Franco decided to take this option of promoting foreign investment, making the change of currency with the foreign currencies possible.And it was through devaluation of the peseta, this means that investing from the UK, Germany, or even the United States, or for tourists coming to Spain, visiting our country, was so cheap due to this devaluation of the currency. And this way we had that mass tourism development and mass foreign investment, foreign investment and flows of people coming here for holidays and enterprises developing their activities for profit.This was the beginning and the result were that after all those years, we now have eight hundred thousand tourist beds in the B alearics and we had 16.5 million tourists last year in the Balearics, 2022. And this is a huge amount of tourists for an archipelago that just has. 5,000 square kilometers, 1.1 million inhabitants.Most of our tourists are coming from the UK. Let's say 25%. Germany, another 25%. This means 8 million tourists coming from Germany. Then we have 13% coming from mainland to Spain. And then we have people from Scandinavia, Norway, Sweden Denmark, the Netherlands. They come here looking for sun warm weather conditions during the summertime, particularly during the high season.This is July, August, September. This is when we are having more over crowded beaches, traffic jams in the roads and the touristification of every single place in our islands. Because by the beginning, tourists were going particularly to the tourist resorts. But nowadays the countryside, natural areas, villages and, and even the historical center of the cities is being touristified.You can find boutiques, you can find terraces of bars and restaurants, all of them changing very quickly, the landscape and the way of life of our places. [00:09:17] Chris: At what point in your life did you arrive in the Balearics, in Mallorca, or are you from there?[00:09:23] Macia: I'm from the Balearics. The mother of my father Fr was from Palma. And the parents of my mother were from M and I was grown here. It's quite common in places like Balearics to have roots, to have grown people is not moving that much. Right. I attended my degree and I finished my PhD thesis, and now I have my job here and this is common. We're not moving that much. [00:09:54] Chris: Well, it's a bit of a blessing to hear that there are people in the world still who live in the same place they were born, which is more and more rare. I guess I'm curious, you know, over the course of your life then, in Palma, is there one thing that you might be able to single out as perhaps the most startling or biggest or devastating change that you've seen there?[00:10:19] Macia: Yeah. Well in fact it has to do with my political position during that moment because we had a right wing go government from 2003 to 2007 with Lots of cases of corruption related with mega pr This means projects with a budget higher to 1000 million euros. They were projects to promote highways, to promote big infrastructure, transport infrastructure, a new harbors, enlarging the airport equipment.Instead of refurbishing the hospital, they decided to build a new hospital. And this is nice, but at the same time, they were meeting and we have collected information about those meetings to arrange, Communicating in between big entrepreneurs and politicians. Where and how was that development going to be?And they were changing this information to give advantage to the investors in a way which is nowadays considered as corruption. Many of those politicians are even nowadays in jail because of those cases. And during that period I was involved as a representative, as a volunteer giving support to the campaigns for the right to the island, demanding the politicians and the public institutions and the entrepreneurs not to follow with that promotion which was jeopardizing our land promoting socio-spatial segregation destroying natural habitats. That was the peak of the real estate bubble. Just before 2008 when I was involved. We were preparing something which is called a popular initiative to the parliament.I was myself defending the initiative in the regional parliament which was in fact making a proposal not to allow more enlargement of the transport infrastructure, enlargement of the urban for instance, protection of natural areas. And that moment was particularly stressing, even violent with lots of discussions and pressures with people lobbying.But now I feel I did something nice. We have some successes, therefore it was worth doing that. [00:12:58] Chris: Beautiful. And I'm, I'm curious as well, I guess on a general scale on the island, how has civil society begun to respond? And I mean, we're talking about 60, 70 years now, so, you know, of, of tourism development there.How has civil society, how has the government, the NGOs responded to this over tourism, and what, if any, contradictions do you see in those responses? You've already spoken a little bit about the corruption. [00:13:33] Macia: Yeah, you're right. This is a very good question because I was a young guy perhaps having looked to the situation from an naive point of view.And now that I see it after some time, I understand some contradictions. Perhaps the biggest contradictions that I see now is that, Fighting to promote natural artist protections, for instance, or fighting for a better environment. They took profit of our campaigns to find new ways to earn money, to take profit from the situation. This is to say that nowadays we see how what was the biggest threat, the gray grabbing, is now becoming another model to exploit the land and the people, which is what we call "green grabbing."Capital and entrepreneurs and investors are taking profit of the land that was protected, setting aside urban development to promote a new image of the Balearics as a good refuge for capital investment and for the elites, and this is not that nice. After the time you realized that you were instrumentalized to promote the business of those that are nowadays refurbishing the hotels, a lot of investment is being devoted to the built environment.Because the real estate business is even more profitable nowadays. And as it is becoming scarred because we have stopped the urban growth these houses and these buildings, whatever they will be, perhaps hotels, are becoming more and more expensive and people is being fired. The people is not any long being able to live in the villages because they are becoming too expensive or in the Catholic shelter of the city and people is not being able to follow living in the Balearics and they have to go to live mainland.And this is a contradiction of the natural environment and the quality of life. It's becoming more exclusive. [00:15:59] Chris: Yeah, this was something that our mutual colleague, Ivan, had mentioned to me at some point. He was referring to the way that after the lockdowns, during the pandemic, once the government travel restrictions were dropped, that there was this pattern emerging or seeming to emerge around the stratification of tourism towards elite either travel or investment.So we could call maybe the elitification of tourism and tourism investment. And I imagine that's kind of what you're speaking to now. Is that correct? [00:16:41] Macia: Yeah. they were talking about cocoon tourism. People looking for a secure place to spend their holidays.At the same time, it has to be accessible. At the same time, it has to be sustainable. Now they are talking about circular economy, and the Balearics are leading this labeling, this branding, you know? Mm-hmm. It, it's like we, we are the best in the world to innovate in these terms.We were defending the natural areas. Afterwards, there was a limit of the number of tourists beds. We have eco-tax cuts for the accommodation, which is then invested in mitigating the problems that tourism is provoking. Now we have this circular economy system applied to the hotels that are having public support to invest in energy efficiency.And the result is that we have an elitization, we have elites grabbing built environment, grabbing land. And this promotes socio-spatial segregation in the islands. I imagine that it's the same that has happened in Bahamas or in Hawaii. It's like refugee for capitals and elites looking for security, looking for profitability, away from migration from the south because not that much migration is arriving to the Balearics.The mainland spain is closer to Africa or the Canary Islands. They are much more closer to Senegal, for instance, but not that much amount of boats coming from Africa with migrants looking for better living conditions are coming to the We have many, many marinas with huge yachts, very expensive.And this is another icon, you know, another example of the gentrification of the islands is a tourist gentrification. Second residences, good airport connections. The airport is growing and growing, that they are promoting more enlargement of the airport capacity, highways, rent al car and the local population is being set aside even more if you are not local, if you want to come to the Balearics to work during the high season, perhaps you have to sleep in a balcony or in a tent or in a car.Because it's so difficult to find dwelling, to find, to find accommodation if you are working. Wow. Yeah. Prices are increasing so quickly. Hmm. [00:19:38] Chris: On that note and in the context of these eco taxes and the island becoming a destination for this certain type of elitism I'm also curious about this term that Ivan introduced me to, that precedes a question that he actually wrote in for me to ask you. And the term that he mentioned, which I had never heard of before, is green boosterism or boosterism in general. Perhaps first you might be able to explain what Boosterism is for our listeners.And then secondly Ivan was mentioning this in the context of Spain receiving public funds from the EU in order to redevelop the tourism sector. And so the second question, then what do you think the trajectory of tourism is in Spain with this extra money?[00:20:36] Macia: The original government that allowed different ways to have new incomes coming from the tourist activity. One of them was tourist which is paid by those tourists using legal accommodation in hotels or in short term rental.And they have another way to have this. Income in the regional government, which is if you want to open a new hotel or to create a new short term rental in your house, there you have to pay to have the license. 3,500 Euros per bed is now what it is. With this money, regional government has income, which is not controlled by the central government.Perhaps you have to imagine that Spain is a federal nation, and it has a state, and our state, which is the Balearics is having control over this amount of money which is being collected through this status. In addition to this, as you said, European Union is giving support to the recovery of the Spanish economy with a budget, which is known as next generation.Is the way in which the European Union is promoting boosterism to recover the activity, the intensity I mentioned you before. In 2019, we had 16 and a half million tourists coming to the Balearics, and the result of this boostering after the COVID pandemics was successful as far as we had again, 16 million and a half tourists come to the Balearics in 2022.Therefore, they succeeded in boosting, recovering tourism as the most important activity in the Balearics. Half of our economy is based on tourism, 54% of our GDP. And this is as Ivan told you, something that our authorities are promoting. This is a way in which our politicians have decided to govern, to steer our economy, our society, going back to over tourism, going back to promoting the real estate business related with tourism as many tourists as possible.Promotion in the places where tourists are coming from, particularly Germany, the uk, Scandinavia, or nowadays in the States because we have a new direct fl from Palma to New York since half a year ago. Therefore, boosterism is in this way understood promoting growth. And green boosterism is, related with dressing it with sustainability, with circularity, with security, accessibility and natural areas protection.Greening that is increasing prices for people in Europe. Perhaps Magaluf is well known because it's a tourism destination for spring breakers, as you will say in the states. And nowadays, investment in hotels, refurbishing hotels is multiplying the price of the accommodation per 10. If you paid 40 euros before per night, now you have to pay 400.And this is a mass tourism destination that was popular among hooligans coming from England and nowadays is being gentrified. Through this process of elitifcation. [00:24:36] Chris: It's something that I wonder about from time to time, the increasing costs of travel and tourism being ways of certainly propping up the tourist economy or tourist economies, and then the real costs of tourism and how much of a discrepancy or a difference there is between those two things, right?Because so many of these tourist bureaus and governments and hotels and businesses are claiming that they are now, or at least moving towards charging people this kind of true cost, but certainly the true cost of these things goes well beyond our ability to pay for them in money, in cash, right?There are certain things someone, I think it was Deborah McLaren, someone who's been dealing with these issues for as long as you some, some 20 or 30 years. She said on that episode that there are things that you can sell that you can never buy back.So I'm always wondering about, it's like, okay, well we have these eco taxes and you know, surely, a lot of them just go into the pockets of the rich or the government. But even if they are being spent in good ways is that really a way of being able to measure the consequences and the cost of tourism?And so I wanted to take this opportunity to move a little bit towards the social movements that you've also been a part of there on the island. And to start with this notion of de-growth that seems to usually be set up in opposition to sustainability.Sustainability at the end of the day is really only trying to sustain the industry. You can say that, oh yeah, we're sustaining people and the planet, but insofar as the industry succeeds and then so de-growth a term that in my part of the world. And I think among most tourists is, is kind of a stranger.I think most people have still yet to really understand the depths of this term outside of perhaps over touristed places. But essentially, this manner of considering sustainability as keeping things where they are now, not reducing, not really changing anything, just giving the industry a more long-term success route.I know there's a lot of definitions and opinions on this, so I'll turn it over to you momentarily. But this willingness to shrink the tourist economy, whether it be just a little bit or whether it be to an incredible degree. But there's a lot of different opinions on this.And so de-growth becomes, in the last few years, in the last 10 years, something that really becomes a necessary possibility in the context of over tourism. I consistently come across reports and definitions that kind of vary in extreme degrees from what you've written as being neo Malthusian ideas, all the way to kind of post capitalist goals.And so I'm curious, why do you think there is all of this confusion in regards to the definitions of de-growth, and how much of it do you think is, again, just another form of greenwashing a way of saying, okay, so actually we're gonna change things dramatically on a systemic level, but we're only gonna do so insofar as it serves the industry.[00:28:16] Macia: Well, as you say it's so easy and it's so common greening the industry, the tourism industry, and giving support to those who have the power. And to those who get the benefits in economic terms. You can easily apply many different concepts, sustainability, circularity, or even degrowth.I will say degrowth in terms of having less people traveling, but with higher income. And you can say, okay, this is degrowth. This is fake because it's not considering the roots of the problem. It is perhaps solving environmental problems. This is greening, but i t is increasing inequality.Therefore, how can we make a definition of degrowth in a more appropriate way. There is another author in Barcelona, which is Giorgos Kallis. He's from Greece. He has been working in Barcelona for a long time. He has made a very good definition of degrowth. And he's establishing three particular characteristics of degrowing or degrowth political project.First of all, looking for decreasing the amount of energy and materials per capital. They call it "throughput." Is the amount of materials and energy that you use for your everyday life, or in this case for your tourist activity. This means that if you are traveling with a private jet or you are spending 10 times more water gardening, this is the kind of tourist behavior that has to degrow.This means contraction of the amount of energy and materials, but towards convergence because you cannot ask those not spending big amounts of energy and materials to contract. Those who are more guilty are the richest, you know, those who are spending more. This is the first characteristic.The second characteristic of this, degrowth political project, is that it has to promote redistribution and equity. You cannot consider a solution for tourist destination degrowing in the number of tourists if working class, middle class is being set aside, is being displaced, dispossessed.Therefore, this is the second characteristics. And the third one it is that the political project has to be planned and has to be democratic. People has to agree. Therefore, what is more important perhaps is awareness, the public debate, as you are doing with your podcast.Chris, congratulations. I like it a lot and changing opinions and talking about it and promoting thinking in the long term, not today, for tomorrow, but Jorge Riechmann in Spain is talking about precaution principle, because if you just think about your everyday life and don't consider future generations and people in the south and animals, plants, beings in the world.Therefore, the result is that we are behaving in an unsustainable way. And instead of degrowth, what we are going to have is recession without warning, directly to the collapse. [00:32:08] Chris: Yeah. Or end without end. de-growth, while it's something that you can look up and you can find in academic journals and articles and books, that it also shows up in the social movements. I think most famously among the Association of Neighborhoods for Tourism de-Growth in Barcelona. Barcelona, yeah. Right. And so we interviewed Daniel Pardo, one of the representatives of that group early on in the first season.And just so our listeners know, Spain is by far one of the most overt touristed countries in the world. And so we see, generally, in places like this, in overt Touristed places, a huge amount of backlash, protest, and as well alternatives against or in the face of the tourist industry.And so I'm curious Maia, about what kinds of social movements have risen up in Palma and what shape or form they take and what place you've played in them. [00:33:13] Macia: We like defining that movement in terms of right to the city or right to the land, or right to the island because it's, it is the movement of residents who are defending our rights. Going to the beach or just having access to housing is becoming so difficult. And in Palma there is a movement called Ciutat Por La Vida, the City for Those Who Are Living There. Like in Barcelona, they have trade union of people renting housing because they have organized an association to defend the rights.These are social struggles and we are also including the less favored people. I mean particularly people coming from Latin America or coming from Africa who are suffering the worst working conditions. And you can compare how those moving migrating, because they are looking for better living conditions are considering are considered by the system as those who have not right to do it.And at the same time, the system in this case capitalism is promoting tourists which consists of people who is also moving and perhaps they are even looking for a place to live as well because they are looking for the sun or looking for the culture or the hospitality of Latin community in Catalonia or in And this is not just environmental, it's not just being possible to be solved through greening. It has a social meaning. And it has to do with the system. It has to do with the salaries. It has to do with the model that is being applied to solve the problems. And the model the capitalist system is growth.The model in places such as Spain is more real estate development, more tourists coming. And we are seeing with phenomena such as the climate change or the rising prices of energy and the problems with migration, inequalities, growing inequality, the solution have to be perhaps out of the system looking for post capitalist solutions.And in this terms, degrowth and degrowing tourism.[00:35:52] Chris: Yeah. Sometimes I'll be talking to people here in Oaxaca or in other places regarding tourism and over tourism and what I think the end of tourism is or looks like, right? And certainly towards a certain degree of de-growth. And then I would, you know, also add for me personally abolition. Maybe I don't get that far. Maybe I do. And then someone often says " yeah, but what would we do without tourism," in a kind of angry, knee-jerk response? Right? And the question is always asked as if it's rhetorical, as if the question doesn't actually need to be posed, and if the answer doesn't actually need to be wondered about, right?What would we do without tourism? And I mean mm-hmm. You know, I have to ask the person why that isn't the real question, why you aren't asking yourself, really, what would you and your family and your community dream into the world without having this kind of dependency on this economy that is essentially, extremely precarious and exponentially damaging and destructive.So, in places like the Centro Historical of Oaxaca. And I'm sure in places like Paloma, 50%, over 50% of the economy is tourism. It is extremely difficult for people to imagine things otherwise. But you did mention there are groups in Mallorca that are actively engaging and fighting the tourist economy.GOB, I think one was you mentioned. Yeah. And Alba Sud, which is a little more on the academic side, I think. [00:37:44] Macia: We have designed research projects and they are looking for these bottom proposals from social movements, not that much u p-down from public institutions or entrepreneurs, and establishing as a goal different steps towards a better future. First of all, we decided to talk about a social transformation of the currently assisting tourism.This means that once you identify, for instance, low salaries in the tourism industry, or long day working conditions too much activity demanded to those, for instance, cleaning the rooms of the hotels. That is something that Ernest Canada has been analyzing in Spain in terms of "Kellys" the hotel maids. Therefore, social transformation on tourism, of tourism, of the currently assisting tourism means solving these problems.Or the same with energy consumption. The "throughput" we were mentioning before. It's like being pragmatic with the solutions is looking for short-term solutions to the problem. And then well, the same with biodiversity, for instance, or the same with climate change. But then the question is what about the future?What about he best of the scenarios you can imagine. Your utopia, right? Because I think we will agree with most of the people who is hearing your podcast that a better scenario for the future is having more leisure time. Mm. And leisure means we say cultivating yourself, reading, perhaps listening podcast or cooking for your friends, relatives, taking care of the children, the elderly people.This means some kind of wave that is improving the wellbeing of yourself and those around you. But at the same time, perhaps you are also willing to move and spend the night of out of your everyday life place. Therefore you visit relatives in another city or you spend days still walking for enjoying sports or perhaps sailing.I dunno. And this is tourism and this is improving your health, is improving your image of other places. Mm-hmm. When you were backpacker, you were traveling and that activity gave you a broader view of the world. Mm-hmm. You saw people, you met people in Mexico, for instance, and you decided to change your life and to take another position, political position, giving support to other ways of life. And the situation that the people in Oaxaca is having or had then before this. In this terms, tourism can give us opportunity to improve our life and the life of other people. We have to consider it, for instance, in the case of, imagine or teenager visiting places different to where they have grown and this is the way in which they develop alterity.Mm-hmm. They recognize what they are ,understanding what other people is. Mm-hmm. What are their living conditions and perhaps you see that they have a bathroom which is so different to the one you have at home, and therefore you appreciate the conditions you have at home. You have never thought how nice is the place where I am living the sanitary conditions?But if you visit, for instance, the case of Spain, wherever in Africa, you think, "okay, now I understand what is happening with those people who is even losing their life trying to cross the Mediterranean to come to the, to to Spain." I think that introducing this traveling is something that belongs to the culture in terms, for instance of pilgriming.People was visiting other places because it was a duty they had according to their religion. But it was also a way of becoming mature, realizing, being aware of what are the privilege you have and how valuable is your family? Once you see it from abroad, you think, okay, what you want to do is go back home because I feel unsafe.And this is a feeling that is helping you to improve, to become mature, to improve your understanding of the world. Therefore, we have to find the balance and perhaps not doing short breaks to spend a lot of energy in a weekend. But considering how much transformative is this kind of experience for teenagers, for instance. Therefore, perhaps as you said in your podcast, we are not anti-tourism.We want to find a way in which we can transform tourism in a social term and perhaps identify the way in which more leisure time can have as an small part of it, tourism as a way in which we become aware and we can help other people and we change things in the world. Mm-hmm. [00:43:53] Chris: And so on those lines, perhaps that would be some of the advice that you might have for our listeners or other people who might consider visiting Palma one day is go slow, pilgrimage. What would the end or transformation of tourism look like to you as an individual, as a resident of that place for people visiting?You know, it's, it's a little bit of a way of saying what kind of advice would you have for people who wanted to visit, but perhaps also taking into consideration what that world would look like.[00:44:33] Macia: Well, giving support to the social movements that are defending the right to the land, to the island, not interfering. And having in consideration social class struggles the environmental conflicts, dealing with pollution. Not coming to the Balearics for a short break, which means spending a lot of energy and polluting or short period of time not going into conflict with housing, using short term rentals, you have many, many important things to do. And perhaps a good way to do it is doing it from home beforehand. And promoting the networking in between people who has this awareness. This is why I think that, for instance, your podcast, another journalist activities is so important.Solving the problem of the language. I'm sorry for my English. Bridging the cultures and bridging the continents and the places that are so similar. I'm sure that in Mexico, in the Caribbean, in South America, in the United States, many places have problems which are so similar to those we are having in Spain or in the Balearics, in Mallorca or in Ibiza.Therefore networking is so nice. Mm. [00:46:11] Chris: Excellent. Thank you Maia. You were mentioning for a worthy traveler mm-hmm. Who might arrive on your shores is someone who is willing to engage and meet and know of the issues and the social movements and the activists and the activism in a particular place, and to be a guest as opposed to a tourist perhaps. And these social movements that exist in Spain, not necessarily against tourism, but in the context of tourism, most often, have a lot of time in. They usually have been around for years, if not decades, and the consequences of over tourism are now starting to reach other places much more quickly.I think Mexico is one of them. Mexico City, Oaxaca, certainly the obvious beach resorts. But in cities where people are starting to mobilize against] Airbnb gentrification pollution, as you said, among other issues. But these struggles and these movements are very young.Okay. And I'm wondering what kind of advice you might have for these grassroots movements that are just beginning. Coming from the point of view of grassroots movements that have been undertaken for years, if not decades now. [00:47:45] Macia: In my personal experience, what is more profitable perhaps is the link with the academia.Because nowadays it's so difficult to find independent, rigorous thinkers, let's say, people willing to contribute from an independent and rigorous point of view. I mean, in the case of Spain, we are lucky because most of the universities are public universities. And we still have most of the staff at university, we who are civil servants.In my case, we are working for the public administration and we are paid to think and teach and write to do this research. And this has been very profitable for the social movements in my opinion. This is my personal experience. You can also find other scientists in the society not related with the public institutions, not related with the academia.For instance, in the case of Alba Sud, we call it a post capitalist popular university because they, they don't depend on. Public funds, but they develop a very important, independent, rigorous research trying to establish these kind of foundations strong, very well based on writings of people that you have heard about them and you know, perfectly David Harvey from the City University of New York, for instance, or Jason Moore who works on Capitalism as well, or Silvia Federici, many other authors reading them and establishing the links.You have many, many good researchers, scientists in the States and in Canada and also in Mexico. Daniel nearly. For instance, in Mexico, you can use their writings and in this way develop the discourse with this strong foundations. This is what I will suggest. Perhaps it's, it's my own, you know, way the way in which I have done it.I suppose that you can find others, but if you maintain this independency and you work in a rigorous way, I always think that perhaps we won't win, but we will do what our conscience will mark, you know, as we have what we have to do. And this is a good enough for me. I dunno if we will stop the struggle with climate change and over tourism, migratory conflicts, people just dying while they are willing to cross towards the north. But we have to do all what we can, this is what can make us happy. [00:50:54] Chris: Mm-hmm. Mm-hmm. Thank you, Macia. It's been a pleasure.Yeah. And you know, I'd like to thank you on behalf of our listeners for joining us on the pod today, and being willing to speak in a language that is not your mother tongue for our Anglophone listeners. And before we depart today, I'd just like to ask for them on behalf of them once more.How might they find out more about you and your work? How might they read your writings and what you've put yourself to? [00:51:29] Macia: We have just finished a research project entitled Overtourism and Degrowth and you relate it with the University of the Balearic Islands?We have designed a webpage where we offer downloading papers, books. We have translated them to English, some of them, or we have published them. If not, if you cannot download them because some journals are asking you to pay, never do it because knowledge has to be free of charge, in my opinion, unless that knowledge that is being developed in the public institutions such as our university. Therefore write us message, you will find a way in which you can count at me or Ivan or Ernest, and we will send the documents in a digital way.And in this terms, I think that you can find whatever. And I am available for anyone who will want to know more about the topics we have been researching and welcome them. Welcome you as well to Mallorca whenever. Mm. [00:52:46] Chris: Beautiful. Thank you, Macia, once again. You're welcome for joining us today.[00:52:50] Macia: Thanks, salud. Get full access to ⌘ Chris Christou ⌘ at chrischristou.substack.com/subscribe

Building Texas Business
Ep058: Inside the World of Innovative Workspaces with Amber Jones

Building Texas Business

Play Episode Listen Later Oct 4, 2023 37:34


In today's episode, I chat with Amber Jones from Tangram Interiors about her company's move from California to Texas and how they foster innovation through their unique design process and showroom experience. Amber shares insights on staying ahead within the cyclical furniture industry through careful research and an emphasis on maintaining company culture during times of growth. We also discuss the challenges of managing virtual teams and leading with collaboration. Amber offers perspective on balancing work and family from Brené Brown and shares her wisdom on these topics. It was a thought-provoking discussion exploring transforming workspaces and ideas to enhance life beyond the job SHOW HIGHLIGHTS Amber Jones, the Vice President of Sales at Tangram Interiors, discusses the journey of moving their operations from California to Texas, and how they use unique tools like noise and digital maps to improve their showroom experience. She provides insights into the cyclical nature of the furniture industry, emphasizing the importance of staying ahead of the curve and fostering an environment of innovation within the company. Amber emphasizes the significance of maintaining company culture amidst expansion and managing a virtual team in a post-pandemic world. She highlights the importance of work-life balance, which differs from person to person, and shares Brené Brown's perspective on marriage and the importance of enjoying the people you work with while maintaining a balance with family life. The episode includes a fun chat about Amber's first job and her preference between Tex-Mex and Barbecue. Tangram Interiors creates innovative workspaces, making spaces where people can learn, work, and heal. They use technology and unique tools like noise maps and digital maps to improve their showroom experience. Amber believes in fostering a strong company culture, which she sees as vital when expanding into multiple offices. She emphasizes the importance of planning and research when entering new opportunities or meeting new people. Amber talks about the evolution of leadership styles and the challenges faced due to the pandemic. She highlights the importance of creating workspaces that allow productivity and foster collaboration. She discusses the potential of radical honesty in relationships and how it can foster growth and trust. She also talks about the importance of leading with a collaborative mindset and the need for self-awareness. The episode ends with a discussion on dreaming of a life in France and wishing Amber Jones the best of luck as she expands her business in Texas. LINKSShow Notes Previous Episodes About BoyarMiller GUESTS Amber JonesAbout Amber TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Amber Jones, vice president of sales at Tangram Interiors. Amber shares how Tangram uses innovative designs to create amazing places for people to work, learn and heal. Chris: So Amber, I want to welcome you to the podcast. Thanks for agreeing to join us. Amber: Thanks for having me. Chris: So let's talk about Tangram Interiors. I want you to at least start by telling the audience what is the company known for and what do you do. Amber: Yeah, so Tangram is a commercial interiors organization. Basically, we create amazing spaces where people learn, work and heal. So all of the interiors, from the flooring to the walls to the furniture, I'm just really creating spaces where people can go to work or go to learn in classrooms or education or, like I said, heal in hospitals and those types of environments that's great. Chris: How old is the company? When did it start? What was the inspiration for it? Amber: So Steelcase we are Steelcase dealership, which is a major mainline manufacturer, and so they've been around for a hundred years, and the Steelcase dealership that Tangram purchased was in 2000 in California, and so what brings us to Texas is that in 2021, we acquired a dealership here in the Dallas Metroplex, and so that is what's brought me to Texas via Tangram Interiors. Chris: Okay, so you're a transplant Californian, now Texan. I'm one of those. Amber: Yes, but you know I'm really enjoying this place and I you know it's not something that I would have like raised my hand and volunteered for, but honestly I feel so at home here, and I just know that the business world that we found ourselves in over the last two years is exactly where our business is supposed to be. Chris: That's great. Let's talk a little bit about that process of the move. What has it been like from your perspective? You know, moving a basically a California business I know it was by acquisition, but moving that California business to Texas, yeah. Amber: And so, what has it been? Chris: like. Amber: Interesting. You know, it's really it's. I want to say it was a challenge, but it wasn't. I think that the Metroplex is confusing in some ways in that it's large but there's a lot of really close knit relationships here and so we were able to bring on some really great people that had some really existing, really good, strong standing, existing relationships in the market, which helped us to position ourselves in the right way in the right place. But I definitely part of the reason for it and part of what made it so helpful and necessary is that the majority of our customers were looking at moving to Texas, and so when you start thinking about how can we do business in both states with you, it made sense for us to be able to send them away from California and then receive them as they arrived in Texas. So it was really, it was an obvious next step for us and when the position you know, when the dealership position opened itself up, it made sense for us to acquire them for sure. Chris: That makes sense. I can tell you, at least from the legal perspective. I've lost count of how many California companies we have represented and since, say you know, late 2000, early 2001, helping them set up shop in Texas. Amber: Well, it's interesting in that regard, you know. It's like where do you home them from right? Like, are you running your business as a California business that has an extension in Texas, or do you have a Texas business that has an extension in California? Or two independent companies. So, yes, some struggles, as we like learn to adjust about. You know where do we write the laws from as far as, like you know, labor laws, etc. Chris: So, yeah, I can tell you, most of our experience has been the we are doing Texas based entities, that basically converting the California entity into a Texas entity. Amber: There's a bajillion reasons why that makes the most sense. So, yeah, it's definitely the direction that we're heading in. Chris: So you've got this company. You create amazing spaces for your clients. What about for your people? I mean, I guess your showroom has to showcase your talent. So how do you go about designing your showroom and fostering, I guess, that creativity in the workplace for your employees? Amber: Yeah, so it's very important that we have spaces that reflect what we do. So we work in our showroom. So working showrooms are a little bit more interesting than just a regular like office place would be. Everything is pristine and there's lots of choice and control about how and where you work throughout the day. So maybe I'm coming in for a quiet day and so I would locate on the floor plan, on the digital map, as to where it's most quiet for the day in the space and then maybe that's where I want to work so that I have access to the resources, Whereas other days maybe I came into the office to have more of a social day. So I'm going to look on the kind of noise map for the space and decide where it's loudest and maybe that's where I'm going to go set up shop so that I can get that like extroverted you know full feel that I needed in coming into the office. So it's really exciting. I really it's almost like working in a zoo some days because there's just tours happening so regularly that it's. But it's cool because it gives us the opportunity to really use and show the product that we sell. Chris: So you mentioned two things that I've never heard of before. That was a noise map and a I forget the other one a digital map, I guess. So yeah, tell me a little bit about that. I'm just intrigued. So is that something that I guess that you offer your clients where you can and you use it there in the office to figure out what's? Amber: your debt on. So we have a technology arm of what we sell so furniture, technology, walls and we really feel like if you can plan a space that integrates the technology and the furniture together versus an afterthought, you're going to have a much better experience for your users. And so for us, we want we want anyone to come in all day and be able to work wherever they want. So part of that is that we are a view, sonic mood, sonic showroom, and that means that we have different zone maps throughout our space. So when you walk in, there's like literally a floor plan on a big digital screen and it shows you where it's loudest throughout the showroom and then where it's quietest, and then what the noise does and the little iPads is. It allows for you to adjust the soundscapes that pump into that area of the showroom to adjust to how much noise is happening there. I personally am a very loud human being, so we joke that color follows me throughout the showroom as I get louder and walk. But also that means that the white noise that's pumping into the space follows me, so that you can see that I'm talking, but you can't make out what I'm saying while you're on a video call across the room. So we really feel, as we get back, especially post COVID, to how many video calls that we're all having in our workplace. No matter what we do for a living, there must be something in your workplace that allows for you to have that hybrid experience and not have it be choppy. So there has to be a reason for you to leave your house Right and it has to be an office that works for you. And the office that we left pre-COVID, that we didn't do a lot of these video calls, didn't have to have the same things that the office today have, and we really feel like a lot of that is the addition of technology because of the communication that happens on screen. So much now. Chris: It's so true. I think anyone I know I can speak for myself but anyone that's been back in the office and we really came back to the office in May of 2020. Amber: Pretty quickly Very smartly, very carefully. Chris: Most people have their own private office here. Amber: Different experience. Chris: But the number of doors that are shut throughout the day for the reasons you just said to control the noise, because we're on Zoom or team calls can get frustrating because we are very open door policy, very great culture, but it's somewhat counterintuitive. So what you're talking about makes total sense to me. Amber: It's hard because it's like why am I leaving my home office, where I have everything set up and I don't have to drive, so that I can go sit in another private office in a conference in a big building where I had to drive in park, just to shut the door again? Like what am I getting from one or the other? What's the benefit to leaving the house? And so really the challenge is what's the pull? So we say you have to return to something better than you left. It can't be the same office. Chris: Yeah, that's great. So kind of on that topic and he's thinking about your company, the downturn. I mean, you're clearly in a business that requires personal interaction and connection. How did y'all manage through keeping the business going when your employees and probably your customers or potential customers did not want to be in person? Amber: Yeah, it's interesting. I would say that the vertical markets that we cover is one of the benefits of our organization, because when things got bad, hospitals still had a huge need, there was still healthcare requirements that were happening around. Covid Schools still needed to pivot and make changes, so there were still things that were happening in some of those other sections. But certainly furniture is something that people don't buy when they don't have to right, and certainly not when there's not people in the office, and so it was a weird time for sure. But I think that what happens in this industry, specifically with furniture, is it's very cyclical. You can look back at like the 2007, 2008,. Then you can look into like there was like this 2016. I mean, there's like times and moments in time where things like took a little bit of a dip, not as much purchasing was happening. I think those are moments in time where we can be strategic and really align ourselves with where do we see those next verticals growing? Right now, bioscience is huge. That's where we need to be focusing, as we move forward, some of the more opportunities to track the industries, versus just waking up and expecting the same type of business to be there every day, you know. Chris: Makes sense. So innovation's got to be a very important aspect for the well-being and growth of your company. What are some of the things that y'all do to instill or encourage innovative things to be fostered throughout the company and encourage your people to think and act innovatively? Amber: Yeah, so I guess two pieces. Obviously, it's very important that what we're selling is innovative. I think a lot of that is based out of absolute research 100% research-based organizations in Steelcase, and so they spend a lot of time trying to figure out what people need and why. And so when it hits the market and we're selling it, we've got so much history and so much research to back why we're bringing another chair or another table or another thing to the market. Otherwise it's just that right, another table and another chair and who needs those things. But I think internally within Tangram Interiors, we really are a super authentic organization. Anyone can walk up to my desk at any point in time. I don't work in a private office. None of us do. None of the executive leadership ever work in private offices, and really in all of our six offices, the only one that has a private office is the human resource team so that they can have the privacy of lockability. Past that I mean. Really there's no one within the organization that can't have an idea that could be implemented today. I think that's kind of the greatness of any organization is when you have that open door policy. Because there's not a door, they're never one right. It's like if you have an idea and it's something that is helpful to the progress of the organization, by all means, and I think those are things that we reward throughout the year. I mean, we have different focuses and different events, but we have a fact award. So we really want people to be focused, accountable, we want them to be strong culture, advocates that show strong teamwork and strong trust, and those are things that we are pillars of our success on a regular, daily basis, and when we talk about them and we look for those in employees, it is that we expect them to come up with ideas in their team meetings and we expect them to have the trust within themselves and the trust within us to bring those new ideas to us for implementation. So, honestly, I think this whole industry and this whole world is about change and choice and honesty. Like have an idea, let's chat. Chris: Yeah, let's talk about it, so OK. So you're touching on culture, one of my favorite topics. Amber: Mind you. Chris: So let's you know a couple, you know at least a couple of questions on that. For you, you know, one is I always ask all guests kind of, how would you define your culture? And I think for you a corollary to that is how has it migrated east from California to Texas, you know, have you maintained the culture that was built in the roots in California to the Texas office, or has there been some adaption to this new office in a new state, in a new city? Amber: Such good questions. Cultures is one of my favorite topics as well. So in California one of my roles there was on boarding all of the new hires and I think for me that was an opportunity to instill in them the culture that I found at Taingram and I really found it important that as they kind of graduated out of one on one training with me that they moved into the next portion of their organ, of their role in the organization. Really understanding the culture was the basis of it all, the foundation of who we were as a company, and so I think for me it was really hard to leave behind the culture that I feel like I was such a huge part of building in California. In fact, I remember standing in front of everyone here in Texas holding this piece of paper as we were about to like tell them that we just acquired their company, and I was so nervous and I think back now and it's like so funny to think that I was nervous in front of those people but because I didn't know what kind of culture I was walking into and I think it matters so much. So the longest way possible of answering that question is that I brought that culture with me and I spent the last two years trying to foster it here, and I would tell you that we absolutely are the same company in Texas that we are in California because of those kind of cross pollinations and making sure that we've got people flying back and forth from both locations and executive leadership, as well as like marketing and different sales people, and I think that we all have a lot to learn from one another that if we treat each other as like a bench for both cities as opposed to Dallas, tangram and California Tangram, just Tangram continue to have that culture be you know, exemplified in all of our offices. Chris: You really want you branch. I guess it could happen in one office. Amber: That's the thing, yeah. Chris: Yeah Well, once you branch out to more than one office, you really can't have the us versus them or you have a culture. It's just not a healthy one, Right? I mean yeah. Amber: Yeah, so it's actually. It's interesting we just did a company survey and we just got the results back and read them off to the whole organization verbatim for the way that they answered the questions with all of the comments and feedback, and it was such a delight to be able to read the results back to the organization and have results be in like the high 80s for how they felt about our culture and the way that we run our company and how they feel comfortable talking to us. Those are astronomically high percentages. I mean it felt like we should all clap. You know clap because genuinely that's not me or any of the other leadership, that is every single human being that wakes up and says they are part of 10 year materials every day. Chris: We all make sure Very impressive. I mean because you're right, I'm going to be proud of and usually yeah, okay. So we talked about this a little bit before we started recording. I'm going to ask you now so you can tell the story behind you are words to say start right, to finish right. Is that some type of pillar within the company? Or you know how is that? It's not there by accident, right? Amber: No, it's not. And I mean, I think with anything good goes planning, goes research. You know, I think we have a really great network in the people that we work with, and with every opportunity that hits the street, there's a way to go about doing it. That's the strong way, the smart way, that it starts with strategy, and so for us it's like you know, you can send off six emails while you're sitting in a meeting talking about a possible opportunity, or you can spend 10 minutes doing some research and figuring out who might be the warmest opportunity or person to connect. You do that right. There's ways to go about things. So I think, from an organizational standpoint, we look at it like take the time to do your research, to be prepared to show up and make sure that you earn the opportunity to win the business, versus just showing up, which is sometimes easier to do. Chris: Well, you mean it's always easier, or seems easier, to take the shortcut. But you're right being thorough and showing up there, there's no substitute for that. Amber: Sounds easier, until they ask you a question and you're like I don't even know what this company does. Chris: Yeah. Amber: And then you feel silly for an hour and a half in front of that person in person. Like I would rather do the research, find a computer to be prepared to not sound silly. Chris: So do you do some training around that? How do you instill that into your new hires? Amber: Yeah. So I mean I think like the true answer is that we're really good at using our AI and our tools that we have. There may be a little bit big brothery, but I think that there's a mentor that we have within our organization that always says that our network is equal to our network, or, sorry, our network is equal to our network. And it's true. We know so many people within the 400 people that work at Tangeram that there's no reason that we shouldn't be able to have a warm introduction to people that are chasing business in our markets, Whether that's our partners, whether those are GCs or those are, like you know, architect or design firms that we work with. There's got to be somebody that can make a warm introduction rather than you just like going and knocking on someone's door. Nobody likes that. Chris: Yeah. Amber: And so, I think, just be smart, use the tools that we have and use the resources that we have and be thoughtful and it you know we all get cold calls every day. What do you do with most of them? Ignore, yeah, you can tell what the difference is. So like, do you want to be the one that gets ignored, or how do you go about doing it a little bit differently, and it's generally because someone sends you an email that said you know, chris, you should meet Amber. Chris: That's actually how this happened, right? Someone sent an email and said right, so there's. So you know that you touch on a topic that I do like to talk about it, because there's there's always learning. So what do y'all do at Tangram to try to, you know, build and maintain these important relationships with customers, with your partners, with your stakeholders? I mean, they're all so important. So what are some of the things that y'all maybe talk about and try to put into practice to make sure you're building and maintaining those relationships? Amber: Yeah, good, I mean, I think there's kind of there's a million different ways, but I think there's three kind of pillars, if you were to boil it down. One, it's the social touch. Right, let's have a drink, let's go to dinner, let's just get to know each other as people because, truthfully, everybody wants to hang out and do business with people that they know right. Chris: People know what they like, that they like and then, ultimately, they've learned to trust right, exactly right. Amber: So, but the flip of that and it's a double edged sword is that nobody likes to do business with someone that goes out and has a bunch of drinks and doesn't wake up the next day Like no one wants to do business with the party animal either, right? So we say that when you're doing your social touches and you're entertaining and you're getting to know someone as a human being, then you also need to follow that up with. You know, research, information, like what are you doing to add value to what they're doing in their life or their job? And so for us, the ability to bring what other organizations are doing to the table for other companies that are in like situations is a huge benefit for us. So maybe you're a I don't know a science, I don't know. Let me think of something good. Maybe you're in the industry entertaining industry and you are trying to figure out what to do with your new space. Well, we've got five other companies that are in the same industry. So we'll pull together a round table and you guys can talk amongst yourselves about how you, what you're doing to bring people back or what you're doing. That's a little bit different. So I think it's utilizing our resources. It also helps to be able to prove that we've got some customers in that market or that industry right, that vertical, and we know what we're doing in that vertical. Let's bring those people together. So it's again, it's utilizing our network to really help teach each other and in doing that you become a trusted advisor. I think that's it, and consistency, right, just showing that over and over again and not when there's work. Just to say happy birthday, or I thought about you. How's your Tuesday going? Chris: Yeah, be genuine. Amber: The thing that we all want right that they say no one checks in on the strong people Like. Sometimes it's nice to just get a message that says hope, you have a great day. So I mean, I think that's the simplest way of just being human and authentic, but it is so underplayed in this world. Chris: Sad but true. So let's go back to, maybe, the office space. Yeah, I think there's obviously so much that's been discussed from the, you know, the work remote hybrid. Now you start seeing companies are mandating back in the office, so maybe you can talk some about what are some of the trends that you're seeing in, you know, in office space design concept, etc. That companies are asking for or coming to you with to try to create that environment. As you said earlier, that will make it compelling for someone to leave home to be back in the office. Amber: Yeah, I mean I would say number one there there's a lot less private offices that there used to be. If there are private offices, they're on the interior core of the building so that the light can be exposing to all of the stations and the other employees throughout the office space. We're seeing a lot of greenery being added to spaces and lots of areas that should make you feel like you have choice around where you work. So lots, a lot of maybe two employees to one desk type of environments, less dedicated desks so that you can walk in and say you know, today I want to work over in this corner in this little nook, or today I want to work at this desk. Those are the kinds of things that we're seeing a lot of. I think every single area has so much technology that we might have also started forgetting about the analog just whiteboard right. The ability to just pick up and just brainstorm versus having to create a flow chart on a PowerPoint right. So one doesn't cancel out the other. The need for both is still there, and so I think, when you're talking about these kinds of different spaces, when you get to the office it's like are there team breakout rooms that maybe I have whiteboards and monitors and desks that move around and I can set it up for my team for the week and then set it up for another team the next week. So just lots of things that are mobile and allow for the most amount of spaces to work harder than just with one purpose. Chris: Okay, yeah, so just kind of the flexibility. Amber: Massive right now flexibility and technology that's on casters, so it's also mobile right so everything is moving and I think part of that is realizing that, like that, when COVID hit and everything was fixed, it was like how are we going to rearrange, you know, when things then automatically went to casters and it was like we can move around wherever so that you really can't allow yourself to set up for the day the best that works for your goal, for the day at work. Chris: I like that. So I'm going to kind of change subjects a little bit. Amber: Would you like that though? Like, would you like if you didn't have to go into your office? Like, would you feel comfortable working out into the open floor plan? Because you just said you guys all go into your private offices when you get there and but you like having the doors open. If you found yourself in an open environment, do you think it would change the way that you work? Chris: I don't know. It's a great day. I like, well, see this one. I like coming into the office, I like the flexibility of, you know, working remote when it makes sense or when I can, and like to your point, there are some days when, at least given what I do, I get lots of interruptions throughout the day and if I need to not be interrupted, you know I may not come to the office to, so I can focus for four or five hours or whatnot. Amber: Isn't that interesting. And it's so funny because I don't know that I would have said that five years ago. Like if I have a focus day, I'm going to stay home. Chris: Yeah. Amber: Also to think about that, like, what it works for you might not work for the 30 year old mom. Right, they need five hours to focus. They can't do that at home, they're going straight to the office, right, and I have. Chris: We have some young mothers here that will tell you. They come to the office and please don't make me go home to get work done. The other thing that I'll say to you as an aside, that it is part of the younger generation which, unfortunately, I guess I'm not but earbuds while they work, listening not just to music, but they'll be listening to crime podcast or things, and I'm like how are you doing that and still focusing on what you're doing? I, you know, I don't know. Amber: Outwild. Yeah, so I think that's funny. We learned that while we were all in the same storm we were all in very different boats. Right, what your boat was and the size of your boat at home was very different than other people's with kids and talking to people's with kids and toddlers and kindergarten, and yeah, I got to the office and was like, oh, I want to drink hot coffee here in silence. This is heaven. But yeah, the micro or the multitasking and getting a lot of stuff done, it's interesting when we used to see the head, the earbuds that were more like hey, this is my cue to say that I'm doing heads down, quiet work, so don't interrupt me. I'm doing some furniture pieces that allow for you to like kind of pull out and it's a storage piece, but it basically, when it's out, it's the equivalent of your buds and like don't, I'm working, I'm in heads down road right now. For those of us that don't have the private office ability to shut the door. Chris: I think you know to you're asking about our space and it's hard because when we're not, that I mean everyone up here is kind of in a cone of confidentiality with our clients, business. But to be in a, you know, in a private, close space, to be able to have a conversation without a bunch of other people in open space, is, you know, kind of what works in our environment, in our industry related to law. Yeah, yeah, and the and I, you know I would work remote even before Kobe hit, you know, because it's just the nature of what I do and it's what I do and the demands. But I do believe the flexibility is a good thing. We also think we work and what we do, and it may be true for you, when we can collaborate together and, like you said, get on a whiteboard and actually brainstorm something together, you just can't do that on video. And the other thing that I know you're aware of that there's lots of been written you lose that social, there's a social piece that happens kind of before or after in between meetings. That when you're on scheduled zoom and you're going to the next and next, you lose. And that's to me really where culture gets built. Amber: Yes, it's the how is your weekend, which sometimes is grading, because it's small talk, but then it's like then learning that they like X and oh, me too, and right, and it creates a whole another conversation which then leads to brainstorming. And right, I mean like the Googles of the world created a 15 minute line on purpose in their cafeteria so that people from different buildings across the campus would cross pollinate intentionally while they waited for their food. It's exactly the same idea. It's like how do I get these people to stop and talk to other people within the office If they're never here? How do they create a relationship? There is no culture created on a web camera. Right, there's not just a bunch of people themselves in the camera. Chris: That's right. You're distracted by backgrounds and or or I was literally conducting an interview earlier this week via video and the person that was interviewing for the position had a dog barking and finally it was like it has to be, everyone else is on mute, right and but they didn't finally like 20 minutes in. They finally said you know, I'm sorry, my dog, but I was like, oh my gosh. Amber: I would be so mortified. I had a very awkward one early on where there was a naked moment. We'll leave it at that. And yeah, it's been a wild ride. These zoom backgrounds and so, anyway, blurring is best, if nothing else is the lesson. Chris: So let me talk a little bit about you and what the question is kind of you as a leader, how would you describe your leadership style? Let's say this as a today, but how has that evolved? Because I know where you are today is probably not where you were five plus years ago, because we all evolve as we go. Amber: Yeah, I try to be super authentic. I try to be the boss I always wanted to be, which I think if you do it like that, then it kind of keeps you human. I never try to ask anyone to do something that I wouldn't be willing to stay and do with them, and I think that comes with the history of starting in this business and working my way through it, so that there's not really any job here that I don't know how to help with. But I think the ability to know that I'm not just kind of hollowing down from the mountain top and willing to like roll up my sleeves and do it with you Gosh, how have they changed? I think that before I would have had things I would have wanted to say and I would have thought long and hard about how to say them, and I think over the years I've learned that rapid, radical honesty is play. So rather than spending a week and a half trying to come up with the exact way that I might say something that wouldn't offend someone and then dredge it all back up again, I'd rather just address it, talk about it. Hey, this didn't feel right. A better way to do that might have been this had this you know effect and you might not have realized that when you were doing it. Here's a different way. I think if you can address those things instantaneously, even though it might be a little raw in the moment, I think that for me that is really allowed for there to be a lot of growth and honesty in my relationships for people that work with me. Chris: I like that. Amber: And that statement right there people that work with me. That's the other piece the people that work with me. I think something happens when you get into a certain leadership place where you're like the people that work for me and I will never be that leader the people that work with me. Chris: It's a team mentality 100%. I think that's a very it may sound subtle to some, but I think it's a very big distinction and how your mindset is. If you could, if you approach it with the we versus the I and actually in a genuine way, that will your, the people you work with will feel that and sense that, and I think the way they respond to you is exponentially better. Amber: Yeah, you know it's funny because I had a conversation with a colleague recently that said you know, you might be too close to some of the people on your team. And it was funny because in the same way that I'll take the rat, I'll give the radical instant criticism. You have to be able to receive it as well. And I think I took it the other way. I swung the pendulum so hard and I cut all of these really strong relationships that I had made in a business way and kind of turned them into friends and started to try to draw this line. And it took me about six months to realize that I was very sad without those people in my world and I wanted to open back up again and be the person that I had been before. So back to the leadership piece. I think it's important for me to say that while I'm also willing to receive feedback, I'm also not willing to accept it all as fact. Good, that's all of it is stuff that you have to be able to process through and realize what you want to keep and what you want to discard, and then what you want to implement right. And so for me, I tried it and it didn't work and it was like nope, I'm going to go back to this other way. And I think that is what growth is is the willingness to change and change back. Chris: Sure, and I think, being self aware right Absolutely. I think that's that can apply in so many ways. I think to the willingness to try something different, the willingness to be honest about it, whether it's working or not, and it's okay as an example, it's okay. Well, that decision ended up not being right, so let's go back. Amber: For me. Right, it didn't work for me and that's good that it works for others. I think I appreciate that boundary. For other people it's. That kind of work life balance is a funny it's a funny conversation. For me I think that it's a joke, frankly, like some days we spend 90% of our effort and energy in the office and we only have 10% left at home. Sometimes it's like I can give 50 feet and you know it's not an issue. Some days I have got to deal with my familial obligations and it's going to maybe only be a 25 day for the work life and the business life is going to get the rest of it and I think that when you work yourself into an organization that you're happy and comfortable with, that, it allows for me as a leader to have that type of balance, but it also allows for me to provide and allow that type of balance to the people that work with us. Chris: Yes, but we can do a whole episode on work the myth of work life balance. You know it's to me the word balance is probably the worst word you could use for that. I think it's work life integration. Amber: Exactly. Chris: Yeah, it's a way you know there's no you know, and that it all changes depending on your stage of life as well. We used to have work-life balance in our core values. We changed that because what we realized is that's not really a corporate culture, it's more of a personal value or culture, right, because it depends on life. If you're in your late 20s versus your late 40s, your world is different and the way you balance things is going to be very different. Amber: Greatly different. It's so ironic that you say that we have. We used to have some meetings with new hires where we would tell them you know, this is kind of what's been working for their lives, some of the upper leadership and management and early on those 20-somethings we're hearing, if you just make all of your work friends, your own friends, then you'll be fine, which, they heard. Lose your friends because we're going to take over your life, right, and it's like that's not what we're saying. What we actually mean is that you will find a balance there where you do genuinely enjoy hanging out with people that you work with or people that you do business with, and you will find a balance in that and that's a little bit of the integration, but also that you'll be able to give and take where and when you need throughout the day and week. So yeah, it's a. The word balance, I just think in general, is hilarious. It's a funny word, but I do think it's great that we all keep trying. Chris: Well, that's the point, right. As you said, every day's a little different. Do you find the way to make it work and integrate both? And so, yeah, some days are 90 work, 10 families, some are 90 family, 10 work and everything in between. Amber: Yeah, it's funny Brené Brown talks about like in marriage it's not 50, 50,. Like she walks in at home and is like I got 70 today and he's like cool, I got your other 30. And it works like that and I feel like that very much in the office and I think if, if we could all just be honest and stop calling these workplaces families right. Like this is not our family. These are the company that we work for and we enjoy very much the people that we work with, but we all have families at home and you know it's important that they feel as much love as the people that we enjoy working with on a regular basis. And you know it's going to wave and it's going to ebb and flow, but I think that's part of what life is. Chris: That's so true. Okay, this has been really great conversation. I love the hearing in which all are doing to help companies you know, move forward, be innovative in their space. I want to turn now the last minute or so. Just some fun stuff to know about you. So tell us what was your first job. Amber: I ditched school at 14 to go get lunch at Subway and I left with a job. Chris: So, but instead of ordering a sandwich, you got behind the counter. Amber: I ate my sandwich. And then that on car sued offered me a job and I left at 14 as a Subway sandwich artist. My mom was not very pleased that she had to drive me to and from the subway on multiple times a week, but it was a great first job. I loved it. Chris: Okay, did you stay with school? Amber: Yeah, oh, of course yes. No it was an after school job. Chris: I got you. I got you All right. So you're new to Texas. But I ask all my guests do you prefer Tex-Mex or barbecue? Amber: Oh my gosh, I can't even say Tex-Mex, like I feel like I need there to be Mexican food here. So we're just going to default to barbecue, for sure, absolutely. Chris: So you have not adjusted to Tex-Mex. Amber: You know what? I'm 40 years, a Californian, and I don't know that I ever will. I was laughing because they were doing the best tacos in Texas. A little blurb the other day on the news and I was like they're in the wrong state for the best taco competition. This is not where they live, but I'm sorry, I do love your eyes as barbecue. Chris: That's okay. That's okay, we'll forgive you. We will agree to disagree on that. Amber: Okay, all right, you have bomb queso, though I'll give you that. Chris: Okay, we'll meet you, you all, don't have queso in California. Amber: Not like you guys do. You have it at like every Mexican restaurant. It's not a thing there really, oh sure. Chris: I mean, I think the first real food both of my daughters had like at a week old was queso. Amber: We started early. Chris: Yeah, so okay, If you could take a 30-day sabbatical, what would you? Where would you go? What would you do? Amber: Ooh, that's an excellent question. I feel like I would probably go just get an Airbnb in France and just spend a couple of weeks just living life there, cruising around on the bike, traveling with my family, working, painting, just being. I think we spend so much time following a calendar. I would love to just kind of float and see what happens when we're creative without the schedule. Chris: That's where. Amber: I come from and we don't do enough of it. Chris: Sadly, you're right, Amber. This has been awesome. It's been a pleasure, you know, hearing your story, tangram story. Thank you for all the insights you've provided and just wish all the best of luck as you grow your business here in Texas. Amber: Thank you so much, chris, we appreciate it. Chris: All right, take care.

Latent Space: The AI Engineer Podcast — CodeGen, Agents, Computer Vision, Data Science, AI UX and all things Software 3.0

Want to help define the AI Engineer stack? Have opinions on the top tools, communities and builders? We're collaborating with friends at Amplify to launch the first State of AI Engineering survey! Please fill it out (and tell your friends)!If AI is so important, why is its software so bad?This was the motivating question for Chris Lattner as he reconnected with his product counterpart on Tensorflow, Tim Davis, and started working on a modular solution to the problem of sprawling, monolithic, fragmented platforms in AI development. They announced a $30m seed in 2022 and, following their successful double launch of Modular/Mojo