Bill Kasko, CEO of Frontline Source Group, argues that real philosophy has to survive those moments. Not survive in theory. Survive in the daily grind where hiring collapses, processes break, and people wonder whether the company will make it through.

What follows is the kind of business thinking that turns into execution: a practical loop where people, process, and service keep reinforcing each other, even when the environment punishes slow movers.

The myth: “People problems” are often process problems

One of the clearest insights from Kasko’s experience is how often leaders misdiagnose what’s actually happening.

In the real world, teams tend to label breakdowns as “people problems.” Someone wasn’t motivated. Someone didn’t care. Someone made a mistake. Then the leader tries to solve it by changing personnel.

Kasko’s counterpoint is simple: the root cause is frequently a process problem that creates a service failure, which then gets interpreted as a people failure.

That’s why his framework begins to look less like corporate wallpaper and more like a diagnostic tool:

• People: are we hiring well, staffing correctly, and building a team that fits and grows?

• Process: are we doing the work consistently, documenting how decisions get made, and following through?

• Service: are clients experiencing reliability, responsiveness, and results?

When something goes wrong, you do not just ask “Who caused this?” You ask which pillar broke, and how the other two pillars amplified it.

How trust becomes a system, not a feeling

Trust is often treated like a mindset: be honest, be respectful, show integrity. Those things matter. But Kasko’s experience pushes trust into something more operational.

For Frontline Source Group, trust is enforced through behaviors and mechanics, not just intentions:

• Honesty is non-negotiable. No creative storytelling. No “let me sell you on an outcome.”

• Ethics show up in agreements, clarity, and full disclosure.

• Respect is treated as a requirement. If you don’t respect people, you shouldn’t be there.

• Communication is treated as a core value, meaning people can give input and ask questions without being shut down.

And this is where philosophy becomes enforceable. In his words, calls are recorded and agreements are signed. The point is not bureaucracy. The point is: you can’t build trust on vague promises.

Frontline’s origin story: an idea that refused to stay an idea

Many founders start with a vision. Kasko started with one, too. But his story is not about staying loyal to the original plan. It’s about learning what traction actually forces you to become.

He began in human capital staffing with an early focus on a very niche direction, even imagining he could run things largely from home. The industry, however, did not care about the plan.

Within months, the placements shifted. What began as one specialty evolved into others because the client needs kept coming first:

• Administrative, HR, legal, and accounting needs showed up before the IT focus fully materialized

• Then the company expanded into additional specialized roles, including oil and gas

A memorable example was the first time a client asked for 20 geologists. The conversation went from “Not a problem” to “What does it pay?” and suddenly the company realized it would need to learn an entirely different world to serve that client well.

That moment helped shape a truth that repeats in his leadership approach: you do not build a company by clinging to your first idea. You build it by building the capability to fulfill what the client actually needs.

Why clients chose Frontline Source Group: coming from the void, not the script

Kasko describes a structural advantage he was early to adopt: instead of trying to “beg for business” through constant calling, he designed a way for clients to approach him.

He created an internet-first path long before it was common in his industry. The website wasn’t just branding. It was functional and positioned around what irritated large clients:

• They were tired of phone calls.

• They were tired of gimmicks.

• They wanted an easy way to find solutions without being interrupted constantly.

One example he mentions: early online chat availability on the website, so prospects could ask questions any time and then transition into a phone conversation only when it made sense.

This is not just “marketing.” It is philosophy expressed through service design.

The diagnosing lens: when the boat is big, you still have to turn it

Large companies often have plenty of salespeople and not enough recruiting depth, and Kasko noticed a mismatch in how resources were allocated.

But his deeper point is about timing. Growth triggers change. Businesses that do not recognize the indicators become late to reinvention. And when they try to turn a massive ship later, they spend more time struggling than moving.

So Frontline’s early advantage was not merely being smaller. It was being more adaptive in the moment when clients were ready to adapt too.

The three pillars emerged through execution, not through inspiration

One of the most important parts of the story is how Kasko describes the emergence of his framework.

During harsh conditions, like the late-2000s recession period, the company kept running into failures that were never isolated. The problems showed up as:

• a people breakdown

• a process breakdown

• that produced a service breakdown

In other words, he discovered in real time that the company’s problems were interconnected. Once he recognized that, solving individual symptoms stopped being enough.

That’s when the framework “clicked”: the pillars were not separate categories. They were the system.

He also connects the pillars to everyday human life: we live by people, process, and service personally and professionally. Relationships shape us. We follow routines. We give back to others through service. The business version just makes those principles explicit and repeatable.

From insight to action: the 5-year placement warranty bet

Frontline’s most famous differentiator is something rare in staffing: a five-year placement warranty that acts as a negotiation tool and a proof of confidence.

The idea started with a personal moment. While working through financing for his daughter’s first car, he discovered a five-year warranty and joked that their staffing company typically “only did 90 days.”

But the question followed: why not five? He and a group of managers locked themselves into a conference room and drew the model out on a whiteboard for eight hours. The critical part was stress-testing the economics:

• How could the company avoid losing money?

• How could it prevent gaming the system?

• How could it stay fair while still being compelling to clients?

They beta tested it for three months, then launched it. The company was bashed publicly. Yet the pushback became confirmation, not discouragement.

Why it mattered: during and after COVID-related rehire cycles, companies remembered Frontline’s model. They asked for the warranty again, and Frontline honored the spirit of the commitment through a good-faith approach.

That’s how trust becomes a system: the company doesn’t only promise something. It builds a structure that remains coherent under disruption.

What the warranty actually means

Kasko is careful with language. They do not use “guarantee.”

They describe it as a longer-term warranty concept around placement and the likelihood of tenure. Since average tenure at many role levels is commonly measured in about a couple of years, the model is positioned around the idea that if someone leaves after the early window, it is less about “failure” and more about outcomes that the warranty can address economically.

Instead of refunding the fee, the company reduces the placement fee when the client comes back for another hire of that same role under the warranty terms.

In Kasko’s view, that matters because recruiting is hard and time-consuming. In staffing, the industry too often sells on short windows and failure framing. Frontline wanted to sell on a positive outcome: promotion and retention, not panic and penalties.

Process matters because recruiting is inherently difficult

Kasko emphasizes something every HR and talent leader recognizes: recruiting is not easy. It isn’t revenue-generating, so companies often treat it as an overhead function. But that perception causes underinvestment.

Recruiting requires:

• time and persistence

• high-quality interviewing

• emotional intelligence when candidates are stressed or guarded

• consistent decision-making so the service experience stays dependable

So Frontline built process early. Kasko describes being process-driven from his IT background. At first, he didn’t document everything. But as the company evolved, the process became a “playbook” that could be repeated, trained, and improved.

That documentation is what prevented the philosophy from collapsing when leadership couldn’t manually hold everything together.

Pressure tests: recession, oil bust, hurricane “bug-out boxes,” and COVID

Business philosophy is easy when everything is stable. It becomes real when the company is forced to adapt instantly.

Kasko describes multiple shocks that changed how the organization operated:

• The Great Recession: survival mode, uncertainty, and the need to identify what pillar was actually failing

• Oil and gas bust around 2016: large client positions pulled away, offices closed, and the company shifted toward remote operations

• COVID: hiring and business collapsed overnight, large clients disappeared, jobs were lost, and everyone shifted to working from home

But the key difference was preparedness. The company had already invested in digital interviewing and technology, and it treated process as a foundation rather than a temporary workaround.

He even mentions hurricane readiness in Texas. They prepared “bug-out boxes” so teams could mobilize, go home, and keep operating without a total shutdown. Then COVID arrived, and a similar logic applied: if disruption forces a new service need, the company can adapt quickly because the operational muscles already exist.

When a public need emerged like large-scale parking-lot swabbing, they said no at first, then adjusted. They learned how to help in that context and kept hundreds of people working across the state.

That is philosophy translated into execution. It is not “we care.” It is “we built systems that make care operational.”

AI and the “stay ahead” challenge: the tech changes faster than the hype

Kasko credits their early digital readiness for helping with AI readiness too. In his view, it is not that AI is scary. It is that the marketing around AI can be full of disinformation and confusion.

He points out that while other technology cycles used to give companies time (18 to 36 months in many cases), AI moves far faster now, changing every 18 to 36 days.

So the real challenge is not “Are we on AI?” It is:

• Are we testing and learning?

• Are we using automation where it improves the service level?

• Are we separating hype from practical capability?

• Are we staying skeptical of claims?

His comparison to past technologies like the microwave is on purpose: technology can enhance work, but you still need cooks and chefs. People determine how to use it well.

Building a business you can step back from: what “run without me” really means

A sustainable organization is one where operations do not collapse when a founder steps away. Kasko doesn’t claim he has an easy “go on sabbatical for six months” button.

He says he has considered it. Yet after 22 years, his role evolved into something he can still do effectively: running a desk, recruiting, running a niche division, and personally placing talent in a specialized area. He even describes a peer who is still running an agency in his 90s, suggesting longevity can be part of the structure.

But there is a more important operational truth behind his answer: Frontline has already resized by leveraging technology and process.

He notes that many large competitors carry thousands of internal employees for recruiting and staffing functions, yet many will not survive because they do not scale their operating model in time. Frontline, he believes, was already moving in that direction, doing the work of a much larger force with fewer people.

For him, that is how a business becomes less founder-dependent. Not by removing the founder, but by institutionalizing the system.

Values that actually get enforced: everything starts here

Values only matter if they show up in behavior and decision-making under stress.

After the late-2000s recession period, Frontline began using a motto tied to an internal philosophy: “Everything starts here.”

It is an acronym rooted in four values:

• H for honesty

• E for ethics

• R for respect

• E for entrepreneurial (allowing people to act, test, learn, and even make mistakes in controlled ways)

Later, a vice president added the part Kasko says they had forgotten: C for communications. The internal motto became cheer everything here, emphasizing that people must communicate openly and collaboratively.

He also talks about enforceability as culture. If someone cannot follow the honesty, respect, and ethical standards, they should not be in the organization.

Execution loops: weekly one-on-ones and Wednesday video calls

Having values is one thing. Having a feedback loop that keeps values alive is another.

Frontline uses recurring communication rituals:

• Wednesday video calls with everyone, longer than a standard meeting, focused on recap and full alignment

• Weekly one-on-ones with managers and with Kasko, typically around 30 minutes and centered on support and barriers

The theme is “over-communication” without micromanaging. Kasko describes it as reducing distance and making it collaborative, not “open door” theater.

Importantly, he also describes a leadership stance on mistakes and healing:

• Face it

• Fix it

• Heal it

• Move forward

He acknowledges how painful it can be to look back at decisions like terminations or firings. But he also says they learned from outcomes and, in many cases, later heard that the person leaving was ultimately the right move.

The most underused leadership skill: listening (especially across generations)

Kasko argues that leaders get more effective by becoming better listeners. Not occasional listening. Continuous listening, including:

• learning from boards and policy groups

• surrounding himself with people smarter than him

• adopting tools used by the next generation

He gives a telling example at a family dinner where younger relatives explained they do not “Google” the way older generations do. Instead, they use TikTok to look up what they need.

That wasn’t a marketing trick. It was a signal: if you aren’t listening, you’re designing for a world that no longer exists.

He also relates this to Frontline’s content growth. When advised to improve their approach to video subscriptions, they changed execution and increased engagement through consistent daily posting.

What to do when you feel like quitting

Even leaders with strong systems face moments where it feels like too much. Kasko describes multiple “I’m not sure I can do this” periods.

The Great Recession was the first major time. A mortgage financing collapse and the resulting uncertainty forced tough financial and operational recalculations.

Another came with the oil bust, where expanded offices and clients suddenly disappeared. The company closed locations and shifted toward virtual operations.

In the later 18-month period before the conversation, he described a different kind of strain driven by shifts in hiring and how candidates behave, including ghosting during job searches after a hiring power shift during the Great Resignation period.

His response was not to pretend it didn’t hurt. He dug deeper into what still made him happy, what still excited him, and how to sell differently by showing value rather than pushing a script.

He also made a hard decision: Frontline fired about 40% of clients that were “tire kickers” who consumed resources without writing checks. In his definition, they were not fully clients until payment actually happened.

Philosophy you can live by: “Be a better listener” and “sell on positive”

Kasko’s leadership message has two repeated themes that make philosophy usable:

• Be a better listener: you cannot execute what you do not understand about reality, people, and change.

• Sell on a positive: avoid selling on failure and short-term windows. Build differentiation and value that clients remember.

That last part shows up in his “deal” philosophy for sales teams. He contrasts the way his wife and daughter shop: they always come back saying they got a deal, not that they paid full price.

In his coaching, HR and leadership teams want savings and measurable value they can report back. Frontline’s aim is to give the client a story that makes them look like a rock star internally.

Where to start if you want philosophy to hold up under pressure

If your company’s culture and values feel fragile when conditions worsen, Kasko’s approach suggests a starting point that is less about slogans and more about systems.

1. Adopt a diagnostic framework: when something breaks, identify whether it is a people, process, or service failure and how the pillars interact.

2. Document your process: philosophy without repeatable steps turns into chaos when scale or stress increases.

3. Build trust as mechanics: agreements, transparency, communication rhythms, and recorded accountability can turn values into lived reality.

4. Differentiate through execution: warranty models, digital client engagement, and service design are philosophy made concrete.

5. Run an execution loop: weekly one-on-ones and periodic company alignment keep values enforced, not ignored.

6. Listen across generations and channels: technology and social behavior shifts faster than leadership assumptions.

The “business philosophy” that actually works is the kind that survives recessions, pandemics, AI acceleration, and leadership transitions. It’s philosophy that can be run, tested, and refined under real consequences.

If you want your organization to hold when pressure hits, don’t just define what you believe. Build the pillars, document the playbook, enforce the values, and create the feedback loop that keeps everyone aligned while the world changes.

Get in touch

For more insights and practical guidance on Frontline Source Group’s approach to people, process, and service, reach out through their official website or connect via LinkedIn.

This article was created from the live video conversation on The Business Philosopher Within You podcast. The episode was published on YouTube under the title “When Business Philosophy Actually Works in the Real World | 200+ Employee CEO.” The article was created with the help of AI after significant input from human intelligence.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Bill above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

Rob Gaedtke, President & CEO at KPS3, describes the uncomfortable shift that comes when your organization stops being “about you” and starts needing to operate without you in the room. That transition is not just a leadership change. It is a culture change. And it requires leaders to reframe beliefs they have carried for years.

The $2M to $10M shift is really a “dependency” shift

Many founder-led businesses begin with a natural advantage: the founder is charismatic, present, and problem-solving on demand. Clients get confidence because the founder is the face of the company. Teams get clarity because the founder decides.

The hidden risk is dependency. When everything flows through one person, the business cannot scale on its own. Even if growth is strong today, the operating system is fragile. The question becomes: what happens when the founder is unavailable?

Rob’s team asked that question directly. He stepped away, including a real test: a month sabbatical after being the CEO for years. The point was not for him to “be away.” The point was to prove the company could still run, still serve clients, and still execute without him as the daily center of gravity.

When leaders stop being the center, the company gets stronger

Founder-led organizations often run on one person’s identity. In Rob’s earlier explanation of KPS3’s first phase, the founder and the brand were essentially the same. That is a powerful early-stage model, because the founder creates energy, reputation, and momentum.

But scaling requires a different model. Rob describes the limitation simply: it becomes unrealistic for one individual to maintain real relationships across growth, regions, clients, and time zones.

So KPS3 shifted from being “owned by the founder” to being owned and managed by the people doing the work. Today, they have multiple owners and a goal of expanding employee ownership further.

Stop managing people, start leading people

Rob’s leadership mantra is “stop managing, start leading.” In practice, this means managers behave less like decision bottlenecks and more like coaches who clarify direction, ask questions, and create space for others to own outcomes.

It also means trust is not a slogan. Trust shows up in systems that work even when the top leader is not there.

The philosophy behind letting go: autonomy, mission, and replaceability

KPS3’s culture is commonly summarized as “Human on Purpose.” Rob treats it as more than a tagline. In his view, it is part of a real leadership philosophy built on three practical pillars:

• Autonomy to storm the hill
  The company has plans and targets, but people are empowered to take action that moves the mission forward.

• A mission everyone can repeat
  Rob emphasizes that every expectation document includes a clear mission statement. The rule is simple: if you do your mission, you win.

• The leader is replaceable
  Rob says this without ego. The organization should be able to handle real work while he is away. There is no “CEO dependency” hiding inside the culture.

This is why the sabbatical mattered. It was a stress test for the operating system. If the company collapses without you, the culture is not ready for scale.

Confidence without control: the manager’s job is curiosity

Scaling autonomy only works if managers know how to lead without dominating. Rob describes common manager behavior that signals confidence without control:

• Ask questions and talk less

• Encourage people to reach the idea themselves

• Trust that your solution is not the only right solution

That kind of leadership takes a particular form of confidence. Not the loud kind that insists on being right. The stronger kind that can sit back and admit: I may not have the answer, and I can still guide us there.

Guard rails instead of rigidity: creativity needs constraints

One tension in every creative business is obvious: you want freedom, but you also need outcomes, budgets, timelines, and quality. Rob’s approach is to treat requirements as guard rails rather than rigid rules.

He explains it as focusing on the goal, budget, and timeline, while leaving room for teams to figure out the “how.” Even timelines are negotiable as long as the client outcome is achieved.

This is not theoretical. KPS3 uses examples from both leadership and real projects.

Example: adapting constraints like a climb

Rob uses rock climbing as an analogy. If the plan is five days but you realize you did not bring enough water, the constraint is not the clock. The constraint is your resources. The team adapts by changing the approach, like climbing through the night and compressing the schedule to summit.

In business terms, when a client expects ABCXYZ by a certain date, constraints will appear. The discipline is not forcing the plan. The discipline is accomplishing the mission in a way that still works under reality.

Example: launching with a micro-site instead of a full rebuild

KPS3 has a client in education software, PeopleGrove. For a brand launch, the full existing site was too large to rebuild and go live in time. So KPS3 launched a micro-site to hit the launch window, prepared internal materials, and rolled the broader solution out over the next two weeks.

This is how you balance creativity with delivery. You do not ignore constraints. You redesign the path.

Growth breaks old beliefs, and culture pays the price

A scalable business cannot keep every belief from the early days. Rob calls it the difference between old beliefs and new beliefs.

One of KPS3’s shifts was about overdelivering. Early-stage survival and differentiation often come from saying “yes” beyond the scope. At smaller sizes, that mindset can work. People can absorb overtime. Write-offs stay manageable. And teams feel proud of going above and beyond.

But at scale, “free work” becomes expensive. Rob shared that their write-offs due to over-delivery reached more than a million dollars in a year. Even worse, the clients who benefited did not necessarily value the extra. The company valued it. The client often treated it as “nice, but no big deal.”

So KPS3 got intentional. If they over deliver, it has to be because the client will value it. Otherwise, they stick to the promise and deliver with excellence inside scope.

That kind of shift always creates resistance. Rob says the pushback was significant, especially from the “old guard.”

Designing the next version of the company (without losing yourself)

Scaling is not just a process upgrade. It is identity work. Rob admitted it was hard to reframe a belief that “the CEO must be the face of the company.”

He described a real moment: there is a big client board meeting where he does not attend. For a long time, his value proposition in his own mind was “show up and represent.” But with seven owners, the meeting does not need him as the universal face.

The question he still struggles with today is simple and personal: what is my true value when the company does not need me in every room?

Advice for leaders who are reframing beliefs

Rob’s guidance is direct:

• Do not write the old and new beliefs down until you are ready
  Most leaders can identify their flaws. Few can truly change behavior. Waiting to capture the beliefs until you are ready to act prevents superficial self-awareness.

• Embrace the psychological reality of belief change
  It is not a mechanical exercise. It is a real readiness shift.

That advice matters because many leaders try to “think” their way into culture change. But culture change happens in decisions, systems, and what you stop doing.

Human on Purpose: why people-powered beats process-driven

Rob’s most consistent theme is human connection. Technology can automate. Technology can polish. But marketing is ultimately a human interaction designed to create behavior change through one connection with one person.

He argues that every AI-driven component still exists to support the human conversation. Without intention, it is easy to default to convenient “machine-like” outputs. His point is that human-to-human interaction produces insights, trust, and meaning that machines can imitate but not truly recreate.

That is the “Human on Purpose” idea. It is not against technology. It is about remembering what technology is for.

How to stay grounded while everything changes

Belief reframing and culture scaling happen while the external world keeps shifting. Rob shared a grounding practice from his family. He and his family built a personal value system over two months by answering questions like what they love and what they value.

His core grounding principles are:

• Everything I do has to be truthful

• Everything I do has to come with love

• Everything I do is driven

The reason this matters for leaders is simple. When things go sideways, you need a reference point that is not dependent on quarterly performance, not dependent on praise, and not dependent on your role as the “face.”

Final question: does your company still need you?

The founder dependency epidemic is not solved by working less. It is solved by building an organization that can operate without your daily presence.

That requires:

• autonomy tied to mission

• managers who lead with curiosity

• guard rails that protect creativity while keeping outcomes on track

• new beliefs that replace early survival mindsets

• a culture that treats human connection as a competitive edge

If your company still needs you in every room, you are not scaling a business. You are scaling your personal capacity.

The leaders who reach $10M and beyond usually do something harder than hiring. They do the identity shift. They become less replaceable emotionally, and more replaceable structurally. And that is what lets the company finally grow on purpose.

Contact

Rob is reachable via LinkedIn, on his company website or through the Gaedtke Family website (inspiring!) where they lay out their life philosophy.

This article was created from the live video conversation on The Business Philosopher Within You podcast. This episode was published on YouTube under the title “The $2M to $10M Shift: When Your Company Stops Needing You.” The article was created with the help of AI after significant input from human intelligence.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Rob above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

What a B Corporation and the Triple Bottom Line Really Mean

A B Corporation, or benefit corporation, is a rigorous certification that frames business decisions through more than just finance. For PAE that means measuring impact on people, planet, and profit. Profit matters — “no margin, no mission” — but it is one of three pillars, not the only one.

Christian summarized PAE’s strategic filter in three clear pillars:

• Accelerate impact — take on the work that advances their mission (clean air, water, and energy for all).

• Technical tools — invest in the engineering and systems that make regenerative outcomes possible.

• People — create a workplace where staff belong, grow, and are empowered to lead the next generation.

Stoic Leadership and a Practical Reflection Practice

Christian combines ancient Stoic ideas with very modern leadership habits. Stoicism’s four cardinal virtues — wisdom, courage, justice, and temperance — are translated into five practical operating principles he uses every day:

• Focus on what you can control; accept what you cannot.

• Improve what you touch. Ask: did I help or hurt?

• Lead with calm; act with courage.

• Serve with purpose. Are my actions in service of others and the mission?

• Practice gratitude and reflection. Use these to align actions with values.

His daily routine begins with gratitude and a short reflection on the previous day: what went well, where he could improve, and how to show up better tomorrow. He also does a longer-form exercise every decade of life: imagine advising your 45-, 35-, and 25-year-old selves to surface lessons, priorities, and purpose.

Decision-Making: A Lens, Not a Checklist

When major choices arrive — acquisitions, project bids, staffing — Christian and his team evaluate through the triple bottom line lens. If an opportunity does not serve one of the three pillars, they don’t pursue it. That discipline forces clarity about what to say no to, which is often harder than deciding what to do.

A few practical metrics and policies PAE uses to make those trade-offs visible:

• Utilization target: PAE aims for about 55–56% utilization, not the industry top tier of ~65%. That creates time for non-billable work (learning, thought leadership, pro bono, volunteering).

• People-first investment: 20 hours of paid volunteer time per employee per year and a goal to give away roughly 1% of revenue annually.

• Retention: PAE retains around 90% of staff — a signal that culture and purpose translate into long-term value.

Regenerative Design in Practice: The Living Building and Healing Spaces

Theory becomes concrete in projects. Two stands out:

• Wounded warrior recovery center (Bethesda) — a trauma-informed project where design choices (rounded corners, biophilic elements) reduce anxiety and promote healing.

• PAE’s Living Building (Portland) — PAE designed and occupies a living building built to the Living Building Challenge: net positive energy through renewables, self-sufficient water systems that harvest and treat rainwater, low embodied carbon via mass timber, and very low energy use through passive strategies. The firm serves as anchor tenant and equity partner, accepting higher upfront cost in service of demonstrating what’s possible.

The payoff is not just green credentials. The living building has attracted talent, improved employee engagement, and drawn thousands of tours, which amplifies impact and leadership in the market.

Balancing Profit and Purpose: “No Margin, No Mission”

Christian is clear: profitability is required to sustain purpose. The trick is to keep profit and purpose in balance. Running an efficient business provides the resources to invest in impact. That means making difficult trade-offs openly and transparently, constantly testing whether decisions align with the three pillars.

Culture, Trust, and the Mechanics of Psychological Safety

Culture at PAE is practical and layered. Christian points to two consistent themes from employee feedback:

• People love their colleagues. Connections and teamwork are the main reasons people stay.

• Transparency and trust matter. Leadership approval ratings dipped during transition, but Christian treats that as data: trust must be earned over time through visible action and accountability.

Concrete practices that build psychological safety and coaching capacity:

• Pods: Small groups of 4–5 people meet weekly to check in, combat isolation, and flag concerns early.

• Crucial Conversations training: Equip leaders to handle high-stakes conversations without defensiveness.

• SDI (Strength Deployment Inventory): Teach people how they are wired to communicate and how to adapt for others.

• Human feedback loops: Beyond surveys, PAE interviewed 85 randomly selected staff for deeper qualitative feedback, then turned findings into action plans.

Vulnerability, Growth, and the Dark Nights

Leadership requires vulnerability. Christian shared two pivotal struggles:

1. Early days building the California office: isolation, imposter feelings, and the anxiety of starting over. The remedy was doing the work, building relationships, and showing up consistently.

2. Receiving blunt 360 feedback that his intent (care and concern) was sometimes received as condescending. The solution: executive coaching, honest self-work, and demonstrating change over time.

The lesson is simple and human: admit flaws, invest in learning, and keep showing effort. People notice and give leaders the benefit of the doubt when progress is visible.

Practical Habits You Can Try Next Week

• Start each day with two minutes of gratitude and one reflection question about the prior day: what went well, what to improve?

• Do a 10-year self-advice exercise: imagine what you’d tell your 45-, 35-, and 25-year-old self and let those answers reveal priorities.

• Use a triple-filter for decisions: does this accelerate impact, improve our technical tools, or serve our people?

• Try the “have to” → “get to” reframe: shift mindset from obligation to opportunity to boost motivation and perspective.

• Create small regular check-ins: pods, 1:1s, or lunch conversations to surface problems early and build trust.

Parting Thought: Know Your Personal Why

If there is one anchor Christian returned to, it is this: know your personal why. Clarify the impact you want to have, then organize your choices and daily habits to serve that purpose. Business frameworks, certifications, and retrofit projects matter, but without a personal why those efforts feel hollow.

“What we do now echoes in eternity.” — a reminder that legacy is built in the day-to-day choices we make as leaders.

Contact

Christian welcomes connections from leaders working on highly sustainable projects and individuals interested in board or nonprofit service. He is reachable via LinkedIn.

This article was created from the live video conversation for The Business Philosopher Within You podcast. This episode was published on YouTube under the title “Triple Bottom Line: Why This CEO Says Profit Isn’t Everything.” The article was created with the help of AI after significant input from human intelligence.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Christian above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Dive Into Deeper Learning

Todd Greenbaum, president and CEO of Input 1, built a company that evolved from a five-person operation managing $10 million in premiums into a platform that handles more than $16 billion in annual premiums and serves over two million users. His path offers practical lessons for founders and leaders who want to build something that endures.

Start with a real customer problem

The company began with a simple, specific problem: banks wanted to enter premium financing but lacked the technology and operational know-how. Solving a narrow, well-defined customer pain gave Todd and his team traction. The lesson: find a distinct, urgent problem and solve it well before you chase scope.

Grow by concentric circles, not by boiling the ocean

Ambition matters, but so does restraint. Todd describes a conscious pattern of expansion: take core capabilities and apply them to adjacent needs. Start as a tech-enabled service for banks, then sell the software, then extend into billing and digital payments for insurance carriers and brokers.

The advantage of concentric growth is simple: you reuse expertise, reduce unknowns, and protect your reputation while increasing total addressable market.

Practical framing

• Master a bucket before you try to boil the ocean.

• Reuse intellectual property across adjacent problems.

• Test product tweaks on your core customers before broad rollouts.

Let your vision evolve

Vision is not always a static manifesto. For many founders the initial “why” changes as the business and market reveal new opportunities. Todd’s founding why—help banks offer premium financing—morphed into a broader mission: let insurance companies focus on product creation while Input 1 handles billing, collections, and payments with scalable technology and operational excellence.

Design culture to support scale

Culture isn’t an optional add-on. It’s the operating system that decides whether processes and products deliver consistently as you scale. Todd emphasises kindness, curiosity, respect, and active support: treat every person with dignity, encourage questions, and back people when they stretch into new roles.

Practical cultural elements to adopt:

• Create expert groups focused on specific functions so feedback is actionable.

• Encourage curiosity and remove the stigma of asking “stupid” questions.

• Reward humility and introspection in leadership.

“Make sure that you’re always double checking yourself and that you’re not getting too big for your britches. Make sure that you are not kind of buying your own BS.”

Build a unique, sustainable advantage

In regulated industries, differentiation can come from product breadth tied to operational excellence. Input 1’s platform supports all three ways to pay an insurance premium—one-time, carrier billing, and financing—on a single system. That single-platform approach reduces friction, improves user experience, and increases customer stickiness.

Innovation matters—especially in a lagging sector

Insurance historically lagged in digitization, creating a runway for insurtech. Practical AI use cases already delivering value include:

• Automated claims assessment (drones and image analytics).

• Faster underwriting through rapid data evaluation.

• AI agents that handle routine customer questions and escalate only when necessary.

Stay at the edge of invention—don’t assume “good enough” will stay good enough.

Listen to customers and build surgical feedback loops

Customer conversations are the best product research. Todd’s team slices customers by product, geography, and relationship type, then runs expert groups that translate nuances into product and workflow changes. The result: incremental improvements that remove friction and increase adoption.

Make meetings purposeful and measure behavioral change

Communication cadence matters—quarterly leadership reviews, monthly division check-ins, weekly team meetings—but so does discipline. Reduce useless meetings. When you meet, have clear agendas and outcomes. Most importantly, check whether meetings create behavioral change, not just information transfer.

The onboarding crisis and the discipline of restraint

Growth without operational readiness can create catastrophic customer experiences. Todd recalls a painful episode when several large clients were onboarded too quickly, exposing weak mid-level management and forcing senior leaders to step in constantly. The recovery taught a crucial lesson: be methodical about ramp-up times, resource allocation, and internal training before you accept new, large customers.

People scale differently from software

Properly architected software can often scale without breaking. People and culture do not scale the same way. Preserve cohesion by:

• Hiring durable leaders and investing in middle management.

• Keeping long-tenured employees engaged and passing cultural norms to new hires.

• Planning growth so culture remains intact as headcount increases.

Remote work: preserve culture deliberately

Remote teams need intentional culture maintenance. Watercooler spontaneity disappears over virtual lines, so compensate by creating rich virtual rituals, occasional in-person gatherings, and deliberate onboarding experiences. Bringing remote people to headquarters for concentrated interactions can reignite enthusiasm and deepen connection.

Grounding practices matter for leaders

Leadership is high-energy work. Todd finds balance in two personal rituals:

• Playing in a band—music as a weekly reset where problems fade for a few hours.

• Consistent exercise—discipline that powers long-term health and cognitive stamina.

Practical checklist for leaders who want to build a lasting company

1. Start narrow: Solve a clear problem for a specific customer segment.

2. Grow concentrically: Extend into adjacent markets using the same core strengths.

3. Prioritize operational readiness: Only onboard large customers when people and processes are prepared.

4. Design culture deliberately: Promote humility, curiosity, and mutual support.

5. Listen surgically: Use expert groups to turn customer feedback into product and process changes.

6. Keep innovating: Treat technology and AI as ongoing investments, not one-time projects.

7. Measure meeting impact: Stop meetings that don’t change behavior.

8. Protect culture in remote setups: Invest in rituals, periodic in-person touchpoints, and intentional onboarding.

9. Stay introspective: Leaders must continually check themselves and remain humble.

Final thought

Building a company that lasts is less about a single brilliant leap and more about disciplined, iterative decisions: choosing the right customers, expanding thoughtfully, building operational muscle, and protecting culture. Ambition fuels growth, but restraint and humility make that growth sustainable.

If you want to explore how a single platform can simplify premium billing and payments across payment methods, start by talking to the people who run those platforms and listen closely. The next big product insight will often come from an honest customer conversation.

Get In Touch With Todd Greenbaum

Todd can be reached through his Linkedin account. To find out more about Astound Digital, visit their website.

This article was created from the live video conversation for The Business Philosopher Within You podcast. This episode was published on YouTube under the title “How to Build a Company That Lasts 40+ Years | Todd Greenbaum, Input 1’s CEO.” The article was created with the help of AI after significant input from human intelligence.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Ilya above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

From a living-room bookstore to Astound Digital

Ilya told the origin story: three friends built an online bookstore while in school. The early product worked from a DSL connection in an apartment, but without marketing the site saw no traction. By 2000 they committed full time and registered the company under a name that reflected their technical ambitions. The company name changed with each phase of growth — from EcoFabric to SysIQ, then Astound Commerce, and finally Astound Digital — each name signaling a shift in what they wanted to be known for.

Two moments accelerated the company’s trajectory:

• The dot-com crash, which left customers and platforms available to acquire, helped them pivot from a single product to service-based e-commerce implementation and hosting.

• The post-2008 retail acceleration, when e-commerce became a core channel, invited rapid growth and larger enterprise clients.

The three pillars of scale: people, processes, partners

Ilya distilled the company’s success into three interlocking elements. This is as much a framework for running a services business as it is a checklist for durability.

1. Partners

Strategic technology partners — platforms like Magento, Shopify, and Salesforce — served as crucial growth levers. Being a trusted implementer of major platforms opened access to enterprise work and global accounts.

2. People

As a services company, talent is the product. Astound invested heavily in hiring, training, and retaining engineers and specialist teams. Ilya emphasized a people-first priority when making hard choices: people first, then clients, then the business. That waterfall created a culture where teams felt protected and empowered to deliver for clients.

3. Processes

As work expanded, the company invested in rigorous documentation and a repeatable Solution Development Lifecycle. Mistakes were treated as learning opportunities: run a post-mortem, extract lessons, then update processes and templates so the same issue does not recur.

Culture: defined values and daily execution

Nine years into the company’s life the founders codified core values: integrity, respect, passion, commitment, continuous improvement, shared success, and teamwork. Those were not academic declarations. They were distilled from how the company had actually operated and then used as a filter for day-to-day decisions.

Ilya explained a simple principle they applied when values collided: prioritize people first, then clients, then business. This created disciplined decision-making under pressure and helped maintain morale in downturns and transitions.

“Taking care of our people first, then our clients, then the business.”

Leadership and organizational design that scale

What happens when one founder is responsible for 200 direct reports? It does not scale. Ilya described how Astound built a middle layer of management and moved to a hybrid structure combining direct functional management with matrixed project teams.

Key elements:

• Matrixed project teams led by project or account managers who coordinate cross-functional work

• Functional managers who recruit, train, and develop deep skill in each discipline (front-end, back-end, QA, business analysis)

• Processes and training that let functional teams plug into matrix projects quickly and consistently

Acquisitions: accelerating capability while respecting culture

Acquisitions were tactical: bring in specialized design skills or expertise in a platform the company wanted to support. But acquisitions also bring friction. Ilya was candid: integration is challenging and requires deliberate change management.

Best practices Astound adopted:

• Create transition teams that include leadership from both organizations

• Make a plan for experience and cultural alignment, not just technology or revenue targets

• Invest time to explain the “why” and how the combined organization will work together

Applying philosophy to execution

One of the recurring themes was that values only matter if they are applied practically. Ilya pushed back on abstract philosophizing — leaders must translate ideals into processes, templates, and day-to-day behaviors.

“Leaders who are good at big things have to be good at little things.”

That means showing up, helping on small tasks when needed, coaching junior people, and demonstrating the behaviors you want to see in every interaction.

AI adoption: top-down encouragement and bottom-up experimentation

Astound has been proactive about AI adoption. Their approach combined leadership-driven expectation setting with grassroots experimentation: identify curious people in each discipline, incubate use cases, document best practices, and then scale them across teams.

The win is increased efficiency and happier teams who do not want to go back to old workflows. The risk is structural: AI can automate junior tasks and if organizations are not deliberate, the pipeline for developing future senior talent can dry up. Ilya called for purposeful approaches to mentoring and training juniors in the age of AI.

Hard lessons and personal grounding

Every long journey has friction. For Ilya one of the hardest persistent realities was corporate politics. Even in an organization that tries to ignore politics, human behavior creates it. His approach was to refuse to engage while still trying to be pragmatic and lead by example.

How did he stay grounded? Two things: family and health. Ilya started the company while newly engaged and raised a family alongside the business. He also made a deliberate pivot in his 30s to take care of his body through diet and exercise. His advice mirrors airplane safety guidance: secure yourself first so you can care for others.

What to protect if you step away

When I asked which single principle he would insist remain unchanged if he ever left the company, his answer was immediate:

“Taking care of our people.”

He emphasized honesty and humanity, even when delivering bad news — the method matters. The way you treat people in hard times is how culture earns its credibility.

Practical takeaways for leaders

1. Prioritize people first. Design decisions around human outcomes and the business results will follow.

2. Document processes and learn from mistakes. Convert post-mortems into updated playbooks and templates.

3. Build two structures in parallel. Develop strong functional capabilities while enabling matrixed project teams.

4. Treat acquisitions as change programs. Plan integration teams, cultural onboarding, and experience mapping for people joining the organization.

5. Adopt AI deliberately. Combine top-down expectations with bottom-up pilots, and create career paths that still develop junior talent.

6. Lead culture daily. Culture is not delegated to HR; it is shaped by leader behavior minute by minute.

Final thought

Scaling a services company is not a formula; it is an ongoing practice of trade-offs, attention, and continual improvement. Ilya’s story is a reminder that growth depends on clear choices: who you partner with, how you develop people, and which processes you commit to repeat. Those choices create a virtuous cycle when paired with honesty, humility, and daily leadership.

Get In Touch With Ilya Vinogradsky

Ilya can be reached through his Linkedin account. To find out more about Astound Digital, visit their website.

This article was created from the video “Why Kind Leaders Build the Most Scalable Companies (0–1000 Employees)” with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Ilya above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Sharpen Your Insights

This article opens with a vivid historical story that might seem intense at first. It’s meant as a metaphor, a way to explore the timeless challenge leaders face when confronting uncomfortable truths. My goal is not to dwell on the past or shock you, but to highlight the vital role of courageous questioning and awareness in building organizations that endure.

If you stick with me, you’ll see how this “fool” figure offers a powerful lesson for today’s business leaders, especially in an age where real insight and self-awareness are more valuable than ever.

What Sustainable Leadership Has Always Required

I know Halloween is long behind us and we are now in the festive season of good tidings.

So when I begin with a slightly gruesome story about a monarch who was up to some terrible things, believe me, it’s not meant to dampen the holiday spirit. It’s meant to celebrate it.

Henry VIII was a 16th-century king of England who executed between 20,000 and 57,000 people during his 37-year reign. Among them were two of his wives and some of his top advisers, including Thomas More, his Lord Chancellor and a renowned humanist, and John Fisher, Bishop of Rochester.

These advisers were tasked with counseling the king on governance and administration. It was a perilous role, carrying a constant risk of falling out of favor and ending up on the chopping block. Quite literally.

It was a perilous role, carrying a constant risk of falling out of favor and ending up on the chopping block. Quite literally.

If you advised the king, you would be extremely cautious about what you said and did. One misguided word or a wrong glance could land you in the Tower of London, tortured and hoping for a swift death by sword.

In the midst of this mayhem, there was one adviser who spoke to the king fearlessly.

He called out Henry’s grand dreams as hallucinations. He laughed at his visions of fortifying the kingdom and conquering France. He mocked the king’s romantic infatuations and even called him names.

And yet, he outlived the king by several years.

Not only did this adviser make it through Henry’s reign with his head attached to his body, he also outlived the next monarch, Queen Mary, later known as Bloody Mary for her own brand of terror.

Do you know who this adviser was?

It was William Somers, the court jester, more commonly known as the Fool.

In a court where speaking truth to power could mean death, the Fool held a unique position. Shielded by humor and irreverence, William Somers could call out the king’s grandiose dreams without fear. He could challenge illusions, laugh at absurdities and remind the monarch of reality.

William Somers went on to serve in the court of Queen Elizabeth I for many years, playing his part in bringing about England’s golden age of enlightenment.

There’s a profound lesson here: the fool we tend to underestimate is often the catalyst for breakthrough insights and lasting wisdom.

The Death of a Consultant

William Somers’ primary tool for truth-telling was humor.

In the corporate boardroom, humor has its place, but it is not always appropriate. Irreverence also has clear limitations and ultimately offers diminishing value in modern advisory roles.

For this reason, the modern fool in the business world needs to develop a new set of tools and a more refined skill set for truth-telling.

The modern fool in the business world needs to develop a new set of tools and a more refined skill set for truth-telling.

You see, the traditional role of advisers - sometimes also known as coaches, consultants and guides - has not worked very well in the last few decades.

As we became a knowledge-based society and information became widely available to us all, the adviser’s role gradually shifted.

The function of a modern adviser is less about being a source of subject knowledge and expertise and more about being an agent of insights. In the business world, a modern adviser is someone who also helps apply those insights to our world and to our work.

The advent of AI has only accelerated this shift. Today, every business person, from a corner office executive to a fresh graduate in her first job, has access to the entirety of human knowledge right in the palm of their hand.

The function of a modern adviser is less about being a source of subject knowledge and expertise and more about being an agent of insights.

Information and subject knowledge have been flooding us since the 1980s. In recent years, thanks to AI, that flood has turned into a tsunami, much of it diluted into irrelevant slop salad delivered straight to our devices.

We don’t need more experts, consultants or advisers who operate in the traditional way. What we need are those who help others access their own wisdom, even as they bring their expertise and subject matter knowledge to the advisory table.

The role of a modern adviser to leadership then is not necessarily to speak truth but to help leaders discover their own wisdom.

You Can Be a Fool Too

Don’t think for a minute that the skills of being a fool are only reserved for professional advisers. In the age of AI, we all need to be fools. Each and every one of us needs to be a source of wisdom, inspiration, clarity and lucidity to those we care about.

And we need to bring them this wisdom and inspiration not by giving motivational speeches or delivering eloquent monologues. Instead, we need to help them discover the wellspring of wisdom that is already inside them, waiting to be unleashed.

There are two basic skills we need to develop to be an effective fool in the modern business world: one, asking meaningful questions and two, listening openly and without judgment.

Whether we are advising a client, closing a sale, managing a team member, working with a boss, collaborating with a coworker or supporting a friend, we need to help them access their own insights and ideas.

This is a skill, and like all skills, it needs to be developed.

The good news is that with a bit of mindful attention, we can start developing this skill no matter where we are in our careers.

There are two basic skills we need to develop to be an effective fool in the modern business world: one, asking meaningful questions and two, listening openly and without judgment.

And you can start practicing these skills right this very minute. I’ve shared a resource in this article to help you begin developing your advising abilities. And to to make it actionable, I’ve also included a quick, clickable quest.

But before these two skills can become effective, there is a mind shift you need to consider.

Mind the Gap

Our most prized, most premium mental real estate today is not information. It’s not the collected facts, knowledge or expertise. It’s not even learning in the traditional sense.

It’s the gaps in between.

This gap is where we bring awareness to all that we deal with.

This gap is the place where insights happen. This opening in time is the moment when inspiration and ideas bubble up. Over time, a continuous process of self-awareness emerges, through which our inherent, innate wisdom finds its outlet and takes outward expression.

For leaders and founders who value self-sustaining endurance over a short-sighted chase of proverbial riches - the fool’s gold - this expression of wisdom can result in an enduring organization that outlives them.

That, in the truest sense, is the legacy they leave behind.

Our most prized, most premium mental real estate today is not information. It’s not the collected facts, knowledge or expertise. It’s not even learning in the traditional sense.

If you are into self-development like I am, or if you ever end up advising founders, leaders and organization builders like I do, your greatest weapon that truly moves the needle is not what you say or how you say it.

It’s your ability to craft insightful, powerful questions.

Questions designed to bring the leaders you work with face to face with their own truths.

The truths they’ve been avoiding.

The truths they’ve been hiding from.

Good questions are powerful because they allow you to see beyond your existing mindset: those deeply held beliefs that have quietly become your limitations and barriers. They cut through the noise of assumptions and habitual thinking, creating space for fresh perspectives.

Good questions are powerful because they allow you to see beyond your existing mindset: those deeply held beliefs that have quietly become your limitations and barriers.

They invite you to challenge what you thought was true. And in doing so, they unlock possibilities you hadn’t seen before.

Right questions, asked at the right time and in the right context, open a space in your mind - a space of awareness.

It’s in that space where real reflection happens, hidden assumptions surface and new insights begin to take shape.

This is the moment when leadership moves from reacting to responding, from repeating old patterns to creating new possibilities.

This is where shifts happen, shifts that can bring profound, inside-out transformation. Not just in the leaders you work with but also in those they lead.

It creates a ripple effect that flows through the entire organization, paving the way to break barriers and ignite meaningful transformation.

Awareness sparked by the right questions becomes the catalyst for lasting change, fueling cultures that adapt, innovate and thrive.

The Lasting Gift of the Fool

So, who is the fool?

The fool is the one who holds up a mirror, not to mock, but to create awareness. This awareness is the bedrock beneath every enduring organization. It is the space where leaders confront their own truths, break free from limiting beliefs and open themselves to transformation.

The fool is the one who holds up a mirror, not to mock, but to create awareness.

Through this awareness, leaders do not just react; they respond. They do not simply manage; they inspire. And from this place, a culture takes root that adapts, innovates and thrives long after its founders are gone.

In that sense, the fool’s greatest gift is not in the words spoken but in the questions asked: the questions that spark awareness, the catalyst for lasting change. That awareness, that inner light, becomes the foundation of organizations that endure.

And that, in the truest sense, is the legacy of the fool.

Give a Gift of Aware Understanding

For me, most of these conversations happen behind closed doors.

However, over the past two years, I’ve had the privilege of sharing many such deep conversations publicly on my podcast, The Business Philosopher Within You. In these two years, I have had 34 such conversations, 22 of them in 2025.

At the heart of every episode lies the same undercurrent: the awareness that opens when a question is asked. Often, the answers that emerge from that space are some of the most profound.

So this holiday season, my gift to you is a challenge. Become a better fool at my expense.

Critique my questioning and listening skills.

Here’s the challenge:

• Scroll through the list of 22 conversation titles below.

• Pick one that resonates with you. (Don’t overthink this!)

• Click the link to watch that conversation on YouTube for about 5 minutes.

• As you do, come up with a question you would like to ask the guest.

• Share that question in the comments section of the YouTube video.

That’s it!

Bonus points: If you share a question I did not ask in the conversation, you’ll get a mention in the following episode where I use your question.

Don’t stop there. Once you get the hang of asking contextual, meaningful questions, take your newfound skills into your next conversation.

Give the gift of deep understanding, meaningful questioning and open listening to at least one person this holiday season.

Happy Holidays!

Bhavesh.

With Deep Gratitude to Our Guests

Before you dive into the conversations below, I want to pause and acknowledge the guests who made them possible.

Each of these leaders chose to step into conversations that were unscripted, unhurried and, at times, uncomfortable. That willingness to think out loud, with the depth that we strive for, is rare.

I’m deeply grateful to every guest who offered their time, attention and trust.

List of The Business Philosopher Within You Episodes from 2025

The Challenge:

• Click on a conversation link to watch on YouTube.

• Come up with a question you would like to ask the guest.

• Share that question in the comments section of the YouTube video.

• Bonus: If you share a question I did not ask in the conversation, you get a mention in the episode where I use your question.

• For a deep dive and the full catalog of episodes, check the Comments section.

1. Culture as the Operating Rhythm

How healthy organizations are built from the inside out.

Episodes featuring:

• Geoffrey Toffetti >> (YouTube Link ➡) Scaling Culture with SaaS

• Mike Chaput (Part 1) >> Can You Scale Revenue Without Sacrificing Values?

• Mike Chaput (Part 2) >> Activating Your Company Culture

• Carol Cone >> Purpose-Driven Culture

• Carrie Klewin Lawrence, MFA >> Culture Through Story

• Melanie Cook >> Neurodiversity & Culture

• Matt Remuzzi >> Culture That Scales

• Ben Greiner >> Culture as the Foundation of a Successful Exit

2. AI, Tech and the Future of Human-Centered Organizations

Where technology, AI and humanity meet.

• Mike Ettling >> (YouTube Link ➡) Ubuntu Leadership in a Tech World

• Jonathan Schneider >> AI, Code Modernization, Leadership & Culture

• Johan Colvig >> AI-Driven Financial Philosophy

• Sri Ramaswamy >> Transforming Insurance with AI

3. Leadership, Self-Management & Awareness as Practice

The inner disciplines that shape outer results.

• Bruce Kasanoff >> (YouTube Link ➡) Leadership from the Heart

• Fabiana Lacerca-Allen, JD, LLM >> Situational Awareness & Crisis Leadership

• Steven Puri >> Flow State & Effortless Productivity

• Jeff Patterson >> Meditation & Leadership Presence

4. Learning Organizations & Human Systems

Because an organization is a learning organism, or it stagnates.

• Joanne Lockwood >> (YouTube Link ➡) Inclusion vs Belonging

• Dr. Christie Vanorsdale, Ed.D, Ms.Ed. >> Collaborative Learning

• Chris Vaughan, PhD >> Why Associations Outperform Corporations

5. Financial Clarity & the Philosophy of Sustainable Growth

Where numbers, behavior and business philosophy intersect.

• Ellen Wood >> (YouTube Link ➡) The Virtual CFO Model

• Brett Bernstein >> Financial Advisory in the Age of AI

• Anupam Nandwana >> Scaling a 300-Employee SaaS Busines

What makes a value system executable?

Mike shared a simple framework that explains why most core values fail: they are either forgettable, vague, or misaligned with the company mission. To be useful a value system must be memorable, clear, deep, aligned, and complete.

• Memorable: Use branding and imagery—an acronym or icon helps people recall and repeat the values. Mike uses RSVP as an easy mnemonic.

• Clear: Each value should be explained in plain language. Two-word labels plus clarifying belief statements work well.

• Deep: Provide layered source material—belief statements, detailed descriptions, and recommended reading—for leaders who must live the values.

• Aligned: Values must manifest the mission. If living your values does not move you toward the vision, change one or the other.

• Complete: The set should be balanced; missing levers create blind spots and behavioral drift.

Example: RSVP stands for Respect & Connect, Servant’s Heart, Value (customer value), Progress over Comfort. Each letter has two-word labels, an icon, four belief statements, and deeper material for leaders. That combination makes values memorable, usable, and teachable.

Core values are constraining behaviors

Constraint gets a bad rap. But constraints create meaning and enable teamwork. A value system tells people what to do and what not to do so they can cooperate without constant negotiation.

“If you want to act disrespectfully, you might be free to do that—but then everyone else is free to act disrespectfully too. The constraint has to apply to the whole culture.” — Mike Chaput

Constraining behaviors are not oppression; they are the rules of the game that make the game worth playing. People often want freedom, but they thrive when constraints align with their own ideals.

Hire for culture first, skills second

Hiring is the most important lever when building a culture. Mike explained the practical approach Endsight uses to prioritize cultural fit without neglecting skill.

• Interview for story and beliefs: Candidates map a life timeline—highs and lows—and tell that story. The goal is not therapy but evidence of values, resilience, and fit.

• If you do not share your story, you fail the interview: Cultural fit comes before technical assessment. Candidates who are unwilling to share personal context rarely fit.

• Skills come next: After cultural alignment, move candidates through a lab or skills-based interview. Pass both and you extend an offer.

The result: an exceptionally high offer-acceptance ratio and new hires who feel like they already belong.

Onboarding and rituals that keep values alive

Values are not alive because they are printed. They live because they are practiced, rewarded, and taught.

• Two‑hour cultural cohort with the CEO: Every new hire sits down to read and discuss each belief statement, ask questions, and learn the sources behind the values.

• Regular rhythms: Quarterly company meetings, town halls, weekly manager meetings—all start with value recognition and end with value stories.

• Public recognition: A “wheel of awesome” or similar ritual celebrates people who exemplify values and makes behaviors visible.

• Manager routines: Start manager meetings with good news and value-based shout-outs so leaders model what matters.

Operationalizing excellence: processes, tools, and culture

Great people need great tools—and great processes. But Mike emphasized an important truth:

“It’s better to have a mediocre process that’s followed relentlessly than a great process that’s never followed.”

Operationalizing excellence is detail work and cultural work combined. Practical steps to make it real:

1. One-on-ones as the primary place for coaching and problem solving.

2. Gemba—managers must observe work where it happens so they understand real problems.

3. Problem registers to capture persistent issues, prioritize them, and harvest strategic objectives from them.

4. Lean tools such as A3 problem reports to force clarity, root cause thinking, and owner-driven solutions.

5. Continuous improvement or Kaizen: small iterative changes driven by teams who care about outcomes.

Operational success requires people who want to follow process, the discipline to make processes stick, and the mechanisms to improve them over time.

Why margins matter

Endsight runs at approximately 20% EBITDA, which is well above the typical MSP market average. That margin is not an ego metric—it is the fuel for strategic investment.

Margins allow a company to:

• Invest in better tools and technology for high-performing teams.

• Build new practices like cybersecurity, business intelligence, and AI consulting.

• Protect the business during downturns and retain employee confidence.

Without healthy margins, growth becomes fragile. Private capital can extract short-term gains while eroding culture; sustainable margins let you keep investing in value for customers and employees.

One non-negotiable: culture (but iterate thoughtfully)

When I asked Mike what he would never allow a successor to change, his answer was surprisingly straightforward: culture. But he also emphasized a key nuance—iterate early, hold steady when it works.

When you are discovering product-market fit and organizational identity, keep culture malleable. When culture begins to consistently manifest the results you want, protect it. If a new inflection—such as AI—requires cultural shifts, make careful, evidence-based adjustments rather than sweeping rewrites.

AI: disruption and opportunity

Mike believes AI will be more disruptive than broadband internet. That does not mean instant replacement of jobs, but it does mean a redefinition of the problems organizations can solve.

How Endsight is positioning for that future:

• Rolling out enterprise AI tools internally and training employees to invent with them.

• Creating an AI practice to help customers implement AI responsibly and effectively.

• Using AI to move up the value chain—shifting from break/fix support to strategic outcomes for clients.

The future belongs to companies that combine human judgment with machine scale. Those that resist will be disrupted; those that lead will create outsized customer value.

Resilience: surviving the dark moments

Entrepreneurship is full of gut punches. Mike shared moments that tested his resolve: bankruptcy caused by partner theft, employee sabotage aimed at stealing customers, and a long-term controller who embezzled funds. Each event could have become a reason to harden, withdraw trust, or go defensive.

Instead the response was radical honesty and recommitment. A letter to the company announced one simple decision: double down on trust. That choice accepts the risk of being taken advantage of again in exchange for preserving an identity that made the company successful in the first place.

Staying grounded: practices that restore balance

Mike’s day-to-day resilience practices are practical and instructive:

• Music: playing instruments creates flow and a break from executive thinking.

• Somatic work: body-focused routines, foam rolling, and deliberate attention to physical sensation clear the mind.

• Family and close friendships provide perspective and consistent emotional support.

These practices are reminders that leadership is embodied and sustained by regular restorative rituals, not simply mental toughness.

Practical takeaways you can apply today

• Create a memorable, branded value system. Use icons, an acronym, belief statements, and source material.

• Interview for culture first. Use life stories to surface values and alignment before testing technical skills.

• Onboard new hires into the value system with cohort sessions and CEO-led explanations.

• Make processes simple and enforceable. Prioritize follow-through over perfection and use Kaizen to improve.

• Track problems in a register, assign owners, and convert the biggest issues into quarterly objectives.

• Protect margins so you can invest in tools, talent, and new practices such as AI.

• When crisis arrives, consider the long-term identity of the company before choosing fear-driven reactions.

Final words

Culture is the sustaining architecture of any company that wants to last. It shapes hiring, operations, product quality, and financial health. Build values that are memorable and actionable. Hire slowly for fit and then validate skills. Operationalize through discipline, observation, and continuous improvement. Protect margins so you can invest in the future. And when the inevitable hard moments come, lead with honesty and a commitment to the identity you want to preserve.

“Freedom through discipline. That’s where the creativity and the joy show up.” — Mike Chaput

If you want to continue the conversation, Mike is active on LinkedIn and publishes thought leadership regularly. Engage with these ideas, test them in your organization, and share what works and what doesn’t. Great cultures are built by iterations, not declarations.

Get In Touch With Mike Chaput

Mike can be reached through his Linkedin account. To find out more about Endsight, visit their website.

This article was created from the video “Can You Scale Revenue Without Sacrificing Values? (Lessons from a CEO)” with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Mike above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

The origin story: why the name Endsight matters

Mike’s company name came from a moment of constraint and creativity. They were hunting for a domain and backed into Insight, then made it into Endsight to capture two ideas: ending poorly managed IT and seeing customers and people thrive on the other side. That backstory matters because it shows how a company narrative can be discovered and shaped to reflect a deeper purpose.

What vision really is—and who it is for

Too many leaders treat vision as a private mental map or a static slogan. Mike reframed vision as a living, externalized description of a future state that must be useful to every constituency: customers, employees, shareholders, partners, and the broader ecosystem. A useful vision does three things:

• Includes as many winners as possible so the future benefits multiple stakeholders.

• Functions as a constraint and a guiding north star for daily decisions.

• Becomes the rum line—a long-term target that guides shorter-term tacks and actions.

“One of the primary jobs of a CEO I think is to create a vision that can include as many winners as possible.”

Leadership as the first follower of an externalized vision

Mike made a sharp point: leaders should think of themselves as the first follower of an externalized vision. When the vision is visible and tangible, it leads the organization. The leader follows it, reinforces it, and checks that tactics align with that picture of the future. This avoids whipsawing the organization every time external news or an instinct pulls the founder in a new direction.

Choose a BHAG and use it as a rum line

Small, uninspiring goals rarely generate drive. Mike recommends a big hairy audacious goal (BHAG) as the rum line that orients every tactical decision. That long-range target gets fractionated into five-year, one-year, quarterly, and daily actions—so everyone can track progress and experience the psychological lift of moving toward a target.

There is a biological reason for this. Our emotions are tied to progress toward goals. No goals equals no natural positive emotion. A clear target gives people the structure needed to feel accomplishment and purpose.

Employee engagement: move people from toil to meaning

Work can feel like digging a hole and filling it back up—or like playing an engaging game. The difference is whether people experience progress toward a meaningful target. Leaders create opportunities for people to feel progress by setting targets, recognizing wins, and making daily work clearly connected to that rum line. The line between toil and meaning is very thin; a great vision shifts work from the former to the latter.

Endsight’s founding: survival, iteration, and learning

Mike’s early entrepreneurship began at 24 with a business that barely survived the dotcom collapse. Those years taught him that a survival-focused vision is uninspiring and hard to rally people around. When he founded Endsight he leaned into a recurring managed services model after learning from peers. But even then the early strategy needed evolution—vision is iterative, not one-and-done.

Quality as a differentiator: lean thinking and the highest-quality MSP rum line

Endsight’s grand vision is to be the highest-quality managed services provider in the world. That BHAG works as a rum line because it creates clear downstream expectations: customer retention, efficient delivery, high billable-time utilization, and sustainable profitability. Quality at Endsight is informed by lean thinking—minimizing waste, reducing error, and relentlessly improving processes.

Quality becomes the lens for strategic decisions. If an initiative or revenue stream contradicts the noble promise of helping others thrive, it is excluded, even if profitable in the short term. The moral and strategic alignment here is essential to long-term durability.

How to cascade vision into daily operations

Turning vision into daily behavior comes down to rhythms, structure, and communication. Mike described a clockwork cascade:

1. Annual strategic leadership retreat to set the long-range rum line, five-year and one-year targets, and quarterly rocks.

2. Weekly strategic leadership meetings to review strategic objectives and an active problem register.

3. Daily or team huddles to track metrics, escalate blockers, and solve problems in real time.

Start the weekly meetings with recognition and good news to reinforce the human connection. Keep a live problem list and make the meetings the forum to escalate, decide, and remove obstacles.

One-on-ones, the racecar metaphor, and accountability as a gift

One-on-ones are non-negotiable. Mike used a racecar metaphor: if you slow down to make the curve, your tires grip and you exit faster than someone who blows through and loses traction. In organizations that means taking the time for consistent one-on-one coaching, development, and problem solving even when it feels costly or time-consuming.

“Accountability is a gift.”

Great managers do more than monitor metrics. They get curious, go to the gemba (the place where the work is done), and empirically observe what is happening. Metrics flag the issue; observation explains it. The manager then coaches, clarifies expectations, trains, or holds an accountable conversation. Done well, this is a partnership: managers help people win, develop, and grow.

Radical candor and the human backbone of feedback

Mike referenced Kim Scott’s Radical Candor to describe how feedback should land. The ideal quadrant combines direct challenge with sincere personal connection. If you challenge without connection you become abrasive. If you protect feelings without candor you become ruinously empathetic. Radical candor is about being both human and direct.

Start a one-on-one by asking how the person is. Build trust. Then use data and observation to surface issues and collaborate on solutions. Frequently a manager’s job is to diagnose whether the problem is capability, clarity, or motivation and then tailor the next steps accordingly.

Values that actually work: memorable, branded, deep, and aligned

Mike shared a practical approach to values that I want to call out because so many companies fail here. Values fail when they are:

• Unknown to most people

• Poorly articulated or forgettable

• Unaligned with strategy

Endsight uses a compact, branded values framework: RSVP. It is memorable, clear, and layered:

• R Respect and Connect

• S Servant’s Heart

• V Value Value Value

• P Progress over Comfort

Each letter comes with two words for quick recall, four or five belief statements that describe behaviors, and a deeper library of source material and books that provide philosophical grounding. This creates a values system that is memorable, deep, aligned to the vision, and complete enough to guide behavior.

Why brand your values

Branding values makes them accessible. People remember images, acronyms, and icons. When values are both memorable and tied to clear behavioral examples, they become actionable operating rules rather than inspirational wallpaper.

Putting it all together: a practical checklist

If you want to start applying these lessons this week, here is a short checklist inspired by Mike’s playbook:

• Write or revise a BHAG that functions as a rum line for 5 to 10 years.

• Make your vision external and visible. The leader should be the first follower.

• Create a short, branded values mnemonic and pair each value with clear behaviors and source material.

• Set annual, quarterly, and weekly rhythms: offsite strategy, weekly leadership syncs, daily huddles.

• Institute regular one-on-ones. Use them for connection, coaching, and accountability.

• Use data to flag problems, then go to the gemba to observe and diagnose.

• Prioritize quality as a systemic discipline informed by lean thinking and measure it.

Final thoughts

Scaling revenue without sacrificing values is not only possible—it is an advantage. When vision, quality, and a values-driven operating system align, you get durability, higher engagement, better financial returns, and a company people want to be part of. As Mike put it, the leader’s job is to create a future where multiple stakeholders can win. That is both a moral stance and a sustainable business strategy.

If you are ready to build that future, start with one thing: make your vision visible and your values memorable. The rest is a disciplined practice of rhythm, coaching, and ruthless prioritization.

Get In Touch With Mike Chaput

Mike can be reached through his Linkedin account. To find out more about Endsight, visit their website.

This article was created from the video “Can You Scale Revenue Without Sacrificing Values? (Lessons from a CEO)” with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Mike above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understading

The spark: why the virtual CFO was needed

Ellen’s story begins not with a business plan but with a personal need. As a young CFO working on complex M&A transactions for a telecommunications company, she confronted how little practical training executives often receive for irregular but mission‑critical events—acquisitions, integrations and financing rounds. Those high‑value activities are episodic in most small and mid‑sized businesses. To stay engaged in them without becoming a full‑time employee of a single company, Ellen realized she needed to serve multiple clients at once. That realization was the genesis of VCFO: a firm structure that made fractional, high‑level financial leadership both accessible and sustainable.

Market timing and the Austin tech ecosystem

VCFO’s founding in Austin in 1996 was fortunate timing. The city was beginning to attract venture activity and early tech investment—Dell, Austin Ventures and other players were shaping a market that needed scalable financial expertise. Ellen’s early work with newly funded tech companies proved the model: early-stage teams wanted CFO‑level reporting and strategic guidance without the cost of a full‑time CFO. From there VCFO expanded into a broader base of industries, emphasizing an important principle Ellen recommends to every firm building out its client mix:

• Diversify your client base: Finance skills travel across sectors; avoiding over‑reliance on one industry reduces risk.

What VCFO actually does

VCFO provides everything that lives in the “office of the CFO,” delivered on a fractional or virtual basis. Ellen’s team includes CFOs, controllers, staff accountants and a full HR practice. Their engagements typically follow a consistent logic:

• Start by understanding what the owner or CEO wants to accomplish—exit, scale, optimize, or survive.

• Assess the current financial and operational foundation, including cash flow and forecasting.

• Deliver tactical fixes where urgent (audits, clean books) while building a phased strategic roadmap to improve operational excellence and value.

One concrete early deliverable Ellen highlighted is the 13‑week rolling cash flow. For many small and mid‑sized businesses, cash is the most immediate risk—and getting a clear short‑term picture is often the first thing that unlocks better decision making.

Phased engagement and transition

VCFO advises clients in phases, targeting the highest‑impact fixes first and working within budget constraints. When appropriate, the firm helps clients hire their own full‑time finance staff—Ellen describes this as being “the CFO you’d want, but at the right price point.” As a client grows, the engagement often transitions from fractional to full‑time internal hires, with VCFO continuing in advisory or interim roles as needed.

Who is the ideal client?

Ellen summarized her typical client as a company with $10M–$100M in revenue and roughly 20–200 employees, often led by a CEO or founder who needs strategic financial leadership but not necessarily a full‑time CFO. There are exceptions—VCFO has supported larger organizations in special circumstances—but this range represents their core sweet spot.

Culture, people and the finance connection

One of the most powerful themes Ellen emphasized is the interdependence of finance and human capital. VCFO embeds HR capability into its offering because culture and people have real, measurable impacts on the bottom line—turnover, regulatory missteps, visa compliance and unpaid payroll taxes can all produce material cost and risk.

“Put people first.”

That phrase is central to VCFO’s values, with integrity following closely behind. Ellen explained that assessing culture, retention and process often reveals hidden drains on value—missed revenue opportunities, higher cost of sales, and inefficiencies that don’t show up as explicit line items on a P&L.

Building VCFO from the inside: systems, EOS and accountability

Internally, Ellen attributes a major part of VCFO’s scalability to disciplined operating systems and clarity of roles. Key initiatives included:

• Adopting the Entrepreneurial Operating System (EOS) in 2018 to create an accountability chart rather than a mere organizational chart—clarifying roles, responsibilities and meeting rhythms.

• Using RACI (Responsible, Accountable, Consulted, Informed) for key processes so everyone knows who does what and who needs to be looped in.

• Applying hiring tools such as predictive index assessments and gathering employee NPS to constantly tune culture.

Ellen credits that operational clarity with allowing VCFO to pivot quickly—most notably during the COVID lockdown in 2020 when the team shifted seamlessly to remote operations.

Riding crises and the lesson of 2008

Ellen has weathered multiple downturns, and she shared both tactical and philosophical lessons from the 2008–2009 crisis, when expansion and infrastructure investments collided with a dramatic market collapse:

• Take stock early—don’t bury your head in the sand.

• Create contingency plans with clear tripwires for action.

• Be willing to “pull the lever” and execute cost reductions decisively rather than delay and lose optionality.

• Act as a resource for your community—VCFO convened clients and introduced alternative financing sources when banks tightened credit.

Her core counsel for leaders facing shocks is simple and actionable: prepare, decide, execute—and keep looking for opportunities that crises can create.

Leadership, learning and personal grounding

Over decades of leading a professional services firm, Ellen says she’s become more tolerant and empathetic. A guiding maxim she shared:

“There are 13 sides to every story—hear them before you decide.”

Being grounded, true to your values, and open to learning from others are not contradictory. Ellen believes the more secure you are in who you are, the better you can listen, learn and change course when warranted.

Advice for founders: focus on shareholder value

Perhaps the clearest strategic takeaway Ellen left with my audience is this: at every stage of your company’s life, measure and manage for shareholder value—not just topline growth or headcount. She recommends entrepreneurs pause periodically and honestly ask:

• What is my company worth today in the marketplace?

• What things (customer concentration, cultural gaps, regulatory risks, weak margins) are depressing that value?

• What measurable changes can I weave into my strategic plan to improve value over 12–36 months?

This shift in perspective reframes decisions—investment, hiring, process and even M&A—around long‑term value creation rather than short‑term revenue metrics.

A real client story

To illustrate VCFO’s approach, Ellen told me about a family‑owned business in Colorado with a 15‑year relationship. VCFO began by installing a fractional CFO and controller, helped build HR infrastructure, and then supported the company through growth, turnover and recruitment cycles. Today that client still engages VCFO for CFO leadership while relying on internal hires for other roles—exactly the phased evolution Ellen described.

Where to start and how to connect

If you’re a founder, CEO or board member curious about embedding operational finance and people strategy into your growth plan, Ellen suggests a practical first step: take stock of your value today and build a contingency/strategic plan that includes clear tripwires.

She’s open to conversations and can be reached via LinkedIn for questions about finance, HR, or board roles.

Closing thoughts

From my conversation with Ellen Wood, three themes stood out for anyone building a business that lasts:

1. Design for value: Measure and manage your company as an asset, not merely a revenue machine.

2. Integrate finance and people: Culture, compliance and HR are core drivers of operational performance.

3. Build disciplined systems: Clear accountability, contingency planning and operational rhythm let you pivot and scale.

Ellen’s journey from a single CFO confronting M&A complexities to leading a firm that has guided thousands of companies is a powerful reminder: the right combination of domain expertise, empathy and disciplined execution creates services that truly scale—and businesses that stand the test of time.

Get In Touch With Ellen Wood or VCFO

Ellen can be reached through her Linkedin account. To find out more about vcfo, visit their website.

This article was created from the video The Rise of the Virtual CFO: Building a Business that Lasts.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Ellen above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Unleash Your Understanding

The origin story: why XML was born

Brett and his partners left Merrill Lynch in 2004 with two big convictions: (1) they wanted to be entrepreneurial, and (2) they wanted to deliver advice and service that wasn’t hamstrung by conflicts of interest or the overhead structures of large wirehouses. The name XML? A cheeky nod to “ex‑Merrill Lynch” rendered as bold Roman numerals — and, as Brett laughed, the numerals even pointed to an IRS tax code about asset acquisition. The point was symbolic: bold, independent, and a little ironic.

They started small — a tight team serving mass‑affluent to high‑net‑worth clients who needed real financial planning, emotional guidance and independent investment advice (not corporate investment banking or pay‑to‑play product placements). The model: build a firm that only charged clients for what they actually needed and always put the client’s interest first.

People first: independence, trust and client focus

Brett describes his ideal client as someone who needs thoughtful planning, emotional support during life transitions, and independent investment strategy — but not the bells and whistles of large bank corporate services. Being independent meant XML could choose planning software, investment managers and processes without influence from a research or investment banking arm. That freedom, he says, directly improved client outcomes.

“If you can be replaced, then either you’re not adding the value or you have the wrong client.”

Growth by design: from organic build to M&A acceleration

XML grew the old fashioned way: listening to clients and replicating what worked. But when Brett and the partners reached a crossroads in 2016 — keep the firm as a lifestyle practice or turbocharge growth — they chose to scale. They partnered with Focus Financial Partners to accelerate mergers and acquisitions while retaining operational independence. The result: XML moved from roughly $500M in client assets to nearly $4B, while expanding from a handful of people to more than 50 full‑time staff across multiple locations.

How Brett approached M&A

• Prioritize talent, not just assets. Brett looks for teams that add depth.

• Listen first. Understand what made the acquired firm successful before prescribing change.

• Respect culture. Integrate via committees and cross‑firm collaboration rather than forceful mandates.

• Make non‑negotiables clear. Compliance, CRM and security often require standardization; other processes can adapt through education and collaboration.

Building a legacy, not a lifestyle practice

From day one Brett and his partners wanted XML to outlive any single leader. That meant designing a company that could be passed on — not tied to one charismatic founder. Concrete practices reinforced this vision:

• Equity is available broadly. Today there are multiple equity partners representing different roles and genders — a deliberate move to put “money where our mouth is.”

• Open door and mentorship. People are encouraged to say what they want in their careers; if the firm can help them grow personally, professionally and financially, it will.

• Focus on retention and wellness. Happiness and productivity are connected — happier employees serve clients better and stay longer.

“I want every person who comes to XML to be able to retire at XML.”

Culture in practice: small gestures, big impact

Culture isn’t a slide deck you install — it’s a lived experience. Brett shared simple stories that illustrate this: taking down a well‑meaning “swearing jar” after acquisitions that felt juvenile, and recognizing when flexibility (hybrid work) is more valuable than forcing everyone back to an office. Small signals — respect, trust, and setting clear expectations — compound into dramatically better wellness and performance. One new hire even reported better sleep and lower stress in his first week because the culture fit him so well.

Measure the right things: a bottom‑up approach to KPIs

Brett believes measurement works best when it starts with people. Rather than dictating corporate targets from the top, he asks every team member to map personal and professional goals (CFP, MBA, client acquisition, life milestones). From those individual goals he builds the firm budget and KPIs — so company objectives align with what people are trying to achieve.

• Make goals specific and trackable: did you get your CFP? Did you bring in 10 clients?

• Connect firm success to individual success: company outcomes should support personal development.

• Use accountability and shared incentives: benefits and rewards are often tied to firmwide performance.

Leading while producing: the CEO who still advises

Brett continues to be a practicing adviser. He insists this keeps him grounded: “I can’t properly lead if I’m not doing the actual job we’re all about.” That dual role is demanding and requires a team that supports the leader, but it brings credibility and keeps the CEO “in the weeds” of client work, making strategy and product decisions much more informed.

Weathering the low moments

Growth and success don’t eliminate hard days. Markets fall, clients leave, and personal health problems can take a toll. Brett shared how those moments used to hit him harder when he was younger. Over time he learned to take setbacks as lessons, reflect and adapt. For him, the controllables are how the firm communicates with clients and how the team responds during volatility.

AI and the human advantage

Brett is pragmatic about automation and AI: it will make many things more efficient and will change jobs, but it can’t replace human empathy in moments that matter. You won’t get the same comfort and judgment from an algorithm after a loved one dies, or in nuanced life‑planning conversations.

“AI is the wave of the future and is going to make some jobs obsolete. But if your advisory services can be replaced by AI, you probably chose the wrong business.”

He recommends embracing AI where it adds efficiency, while doubling down on human‑centered services that require judgment, empathy and relationship building.

Practical checklist for founders who want to build a people‑centered, AI‑resistant business

1. Start with who you want to serve. Design products and pricing around real client needs, not firm conveniences.

2. Make independence meaningful. Remove conflicts of interest and choose tools that serve client outcomes.

3. Hire for talent and culture fit — prioritize people who add depth, not just assets.

4. Listen first during integrations. Create collaborative committees so acquired teams have voice and ownership.

5. Share equity and create clear career paths so people can grow into leadership without leaving.

6. Use a bottom‑up KPI process that ties personal goals to firm objectives.

7. Embrace AI for efficiency but protect the human moments that define your value.

8. Communicate. Pick up the phone. Solve problems with real conversation, not only chat or email.

What’s next for XML — and how to connect

XML aims to continue growing thoughtfully: hitting $5B and moving toward $10B in client assets through a blend of strategic M&A and organic growth — but always with the “right people” and the same cultural thread. Brett also plans to enjoy more travel and family time as his daughters leave the nest, while keeping fitness and health a priority after long struggles with surgeries.

If you’re an adviser considering a partnership or a client who wants to learn more, Brett suggests visiting xmlfg.com or emailing him directly at brett@xmlfg.com.

Final thought

Building a business that lasts is not about the latest tech gimmick or a culture deck you paste over existing behavior. It’s about committed leadership that listens, a company structure that rewards people for staying and growing, and a relentless focus on human experiences that technology can enhance — but not replace. If you’re building a firm in any industry, start there.

Get In Touch With Brett Bernstein

Geoffrey can be reached through his Linkedin account. To find out more about XML Financial Group, visit their website.

This article was created from the video How to Build a Sustainable Business that AI Can’t Beat.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Brett above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

Geoffrey is the leader behind a company that partners with more than 2,500 hotels across 100+ countries, helping frontline teams—front desk agents, servers, bartenders, valet staff—generate millions in incremental revenue. In this long-form write-up I synthesize that conversation, highlight the frameworks and stories Geoffrey shared, and extract practical guidance for leaders who want to scale culture without sacrificing performance.

Why frontline culture matters (and why most leaders underestimate it)

We start with a premise that should be obvious but so often gets lost: guests don’t experience a brand in a spreadsheet. They experience it the moment they enter the property. A piece of trash in the parking lot affects perception; the valet, the front desk, the bell person, the server—all of these touchpoints shape revenue and loyalty.

Geoffrey put it plainly: “Sales done right is actually service.” This flips the standard sales-first mentality on its head. Instead of forcing a transactional mindset on service teams, treat the interaction as an act of service that educates and aligns guests with relevant products and experiences. The result is better outcomes for guests and incremental revenue that is often two to three times more profitable than pre-booked room revenue.

The origin story: from hospitality roots to an outcomes-driven company

Geoffrey’s own career began in hospitality—as a car valet in Florida—and he rose through operations and service roles before joining and scaling startups. FPG’s founder, Ziad Khoury, started Khoury Consulting in 1993 and later rebranded the business to Frontline Performance Group as it moved beyond a founder-led consultancy. Geoffrey joined the company when it was still small and helped transform the business from a pure services model into a technology-enabled, subscription-driven company.

One early anecdote captures the grit and validation that shaped FPG’s journey: their first hotel client was the Waldorf Astoria New York—a high-pressure, unionized, prestige environment. Geoffrey remembers being told they were sent there to fail. Instead, they tripled revenue at that property. “We were sent there to fail,” he said. “We actually thrived. We tripled the revenue and it went great.” That win validated the approach and set FPG on a path of international expansion and productization.

Service-based sales: sell by serving, not selling to

Three phrases encapsulate how FPG trains frontline people:

• “Sales done right is actually service.”

• “Sales is not something you do to your customer. It’s something you do for them.”

• “The best service you can offer your customer is to offer your best services.”

These aren’t just slogans. They shape training content, incentives, and daily dialogues at the front desk and in restaurants. Hourly workers often see themselves as order-takers. FPG reshapes that identity: the hourly associate is a revenue driver whose job is to enhance the guest experience with tailored offers—what Geoffrey prefers to call “guest enhancements” rather than upsells.

What makes incremental revenue so powerful?

Two defining characteristics:

• Highly profitable — incremental revenue generated by frontline teams often has no variable cost (beyond the incentive payout), so profit margins are significant.

• Perishable — if you miss a one-night suite upgrade, that revenue opportunity is gone when the guest checks in the next day. These are time-bound experiences.

For hotels, a modest increase in revenue per available room (RevPAR) is transformative. Geoffrey explained that a front-desk-driven improvement of 5-6% is realistic, and their clients typically see returns quickly: the subscription year is often paid for within the first two to three months. On average, FPG reports about a 20:1 ROI for their clients—an extraordinary metric for any service-driven transformation.

From consulting to SaaS: the strategic pivot

FPG’s evolution provides a playbook for other service businesses that want to scale without losing the craft of what made them successful. The steps they followed:

1. Document and digitize intellectual property. What do your consultants do that produces repeatable results? Capture it in learning modules and processes.

2. Build tools that support consultants and clients—analytics, learning management, and employee engagement features—so client teams can self-serve and sustain change.

3. Move from intensive on-site delivery (not scalable) to a hybrid and then primarily virtual model that amplifies the same human expertise.

Geoffrey recounted how the company began introducing basic technology in 2015 to make consultants more efficient. That technology ultimately became a client-facing platform with three main pillars:

• Analytics: visualize performance at outlet, property, and individual levels.

• Learning: a learning management system (LMS) that houses proprietary training—hundreds of hours and thousands of short video segments—covering everything from mindset shifts to sales dialogues.

• Motivation & culture tools: incentive plans, contests, recognition, team feeds, leaderboards—mechanics that provoke the “pyon effect” (peer upward pressure) and make frontline performance visible.

Rather than being technologists who looked for a problem to solve, FPG was field-first: “We were on the ground practitioners who saw how we could digitize the toolkit,” Geoffrey said. That orientation produces better product-market fit because the tools solve problems consultants already knew how to solve in person.

Acquisitions in a crisis: strategic moves during COVID-19

Between 2015 and 2021, FPG acquired two established competitors: Drake Beal & Associates in the U.S. and TSA Solutions out of Singapore. Both deals helped FPG scale quickly into markets and client relationships they would have otherwise taken years to build.

The TSA acquisition was especially noteworthy because it closed during the pandemic when most hotels were closed and revenue had evaporated. Geoffrey described a creative enterprise-value construct that tied value to recovery—allowing both sides to weather the downturn and benefit as travel rebounded. He emphasized relationships: “We were pretty confident that if we got to meet their clients they would like us. We're very relationship-driven. Our greatest strength is our relationships.”

Who is the customer? Four personas to align with

FPG doesn’t target a single buyer. Instead, they design solutions for four interlocking personas inside client organizations:

1. Corporate executives — operational and revenue leaders with portfolio-level P&L responsibility who see the big picture.

2. Hotel general managers — accountable for property-level P&L and culture.

3. Department heads — front office managers, outlet managers—the ones who supervise teams daily and whose behavior changes determine success.

4. Frontline employees — the agents, servers, bartenders, and valets who interact with guests and execute the offers.

FPG aligns its own team to serve each persona: account executives and executives to corporate buyers, directors and managers to GMs, and customer success consultants to department heads and frontline staff. This layered alignment helps bridge strategy and execution.

Changing behavior: the Khoury Performance Equation

At the heart of FPG’s approach is a framework developed by Ziad Khoury, the founder: the Khoury Performance Equation. It answers the central question: how do you change behavior sustainably?

The equation has three components:

• The right environment — culture, psychological safety, managerial tone, and explicit support.

• The right actions — specific behaviors, dialogues, scripts, and accountabilities taught and practiced.

• The right measurement — transparent metrics and feedback loops so people can see how they’re doing and compare to peers.

When you combine these three elements, Geoffrey explained, you begin to change mindsets and embed new habits. At the individual level FPG emphasizes three motivators: recognition (leaders noticing and praising progress), reward (top performers must earn more than bottom performers), and accountability (clear expectations and visible leaderboards).

Geoffrey summarized it this way: “If you put those three things together, which is what our technology does… you can then begin to change their mindset.”

Practical tactics to scale culture using SaaS

From Geoffrey’s experience I distilled practical steps any leader can apply when aiming to scale culture through technology:

1. Document core rituals and scripts. Capture the dialogues, prompts, and small procedural behaviors that produce results. Make them short, repeatable, and trainable.

2. Start with a minimum viable tech stack. You don’t need to build a perfect product on day one—create an LMS + basic analytics + recognition mechanics and iterate from real user feedback.

3. Make metrics visible to the players doing the work. Push performance data down to the frontline so they can see their own KPIs and how they compare.

4. Incentivize fairly and transparently. Ensure top performers materially earn more than lower performers; otherwise, you’ll have a motivational problem.

5. Use managers as proxies for consultants. If you can certify managers to coach daily, you get stronger results than intermittent external visits.

6. Preserve human touch. Digital tools amplify human judgment; they don’t replace it. Keep empathy and role-playing in training loops.

Leadership lessons from the crucible

Becoming a capable executive often involves going through what Geoffrey calls “the crucible”: multi-year stretches of hard work, long hours, underappreciation, and political friction. These periods steel leaders. Geoffrey’s advice for anyone aspiring to leadership:

• Don’t resent the grind—use it to build resilience and judgment.

• Find mentors who can shorten your learning curve and help you avoid dumb mistakes.

• Learn to promote your work without being self-promotional—make sure the right people know the impact you’re delivering.

He summarized the career paradox succinctly: you are judged both on the quality of your work and on how people perceive it. Fix both if you want to progress.

Culture inside FPG: trust first, care with accountability

FPG had to send employees into client environments around the world—sometimes to tense, even hostile workplaces. To do that, Geoffrey argued, the company had to be a “safe haven” for its own people. The internal culture he built emphasizes:

• Trust first — leaders give trust freely and expect people not to break it.

• Care and fairness — give people as many chances as reasonable to perform; only separate people who violate the culture.

• Transparency and accountability — be honest about expectations and quick to call out behavior that undermines others.

Geoffrey told a story that always lands in leadership rooms: he once told an exec team that “you can expect your guests to be treated exactly the way you treat the people you lead.” If executives are abrasive, your front line will reflect that tone.

Personal grounding: faith, legacy, and mentors

We touched on what grounds Geoffrey as a leader. Faith is a part of his life and gives him perspective; he also carries a personal drive rooted in family legacy—being the first in his family to reach certain professional milestones. Mentors also played a pivotal role in his development. These sources of grounding help him pick his battles and steer the company through difficult seasons.

Common objections and how to answer them

Many leaders resist digitizing culture because they believe high-touch service can’t be systematized. Geoffrey’s response is instructive: being practitioner-led changes the dynamic. If you are an expert at a domain and you thoughtfully distill your knowledge into a system that enforces process and accountability, you can scale 10x without collapsing quality. In fact, in many cases outcomes improve because local managers become daily proxies for consultants rather than episodic recipients of advice.

When to keep a human hand in— and when to automate

FPG still offers on-site consulting for clients that need intensive handholding. But Geoffrey emphasized the disproportionate value of certifying managers and delivering live instructor-led training via video. The coronavirus pandemic accelerated comfort with remote learning, even among hourly employees. The rule of thumb:

• Keep humans in for culture-setting and difficult change management.

• Automate predictable training, measurement, and recognition mechanics.

• Use technology primarily to govern quality, not to displace human care.

Measures of success: what to track

To determine if a frontline transformation is working, track a blend of financial and behavioral KPIs:

• Incremental revenue per month (upsell/guest enhancement revenue).

• Payback period on the program/subscription (FPG usually sees payback in 2–3 months).

• Return on investment (FPG reports ~20:1 ROI as an average).

• Frontline engagement metrics: participation in training, leaderboard activity, peer recognition posts.

• Manager adoption: frequency of one-on-ones, coaching notes, and verified certifications.

Practical checklist to begin your own frontline transformation

1. Map every guest touchpoint and list the revenue opportunities that are perishable (upgrades, experiences, add-ons).

2. Document the one-minute pitch for each enhancement—how an employee explains the benefit to a guest.

3. Create a simple leaderboard and recognition flow that highlights top performers publicly.

4. Build an incentive plan that ensures top performers earn materially more than bottom performers.

5. Capture scripts and training modules and deliver them via short video segments; supplement with weekly live coaching for managers.

6. Introduce analytics so everyone can see results—outlet-level down to individual-level performance.

7. Iterate weekly for the first 90 days and celebrate small wins loudly.

FAQ

Q: How quickly can a hotel expect to see results from a frontline program?

A: According to Geoffrey’s experience, clients typically see payback on an annual subscription in the first two to three months. The trajectory depends on baseline performance, but the combination of training, incentives, and measurement produces early wins that compound.

Q: Is it possible to digitize culture without losing the human element?

A: Yes—if you design digital tools to amplify human behaviors rather than replace them. Use technology to make expectations clear, to make recognition instant, to present leaderboards, and to deliver bite-sized learning. Keep coaching and empathy human.

Q: What metrics should leaders use to justify investment?

A: Track incremental revenue (upsell/guest enhancement), ROI (ratio of revenue gained to cost), payback period, and behavioral adoption metrics like training completion, contest participation, and leaderboards. A 20:1 ROI is possible when the program is executed well.

Q: Does this approach only work for hotels?

A: While hospitality is a natural fit, the principles apply wherever frontline teams influence revenue—retail, spas, theme parks, car rental, and food-and-beverage outlets. Any business with perishable experiential capacity benefits from the approach.

Q: How do you handle underperformers without damaging culture?

A: FPG’s culture prioritizes trust and second chances. Give people the tools, show them transparent metrics, and provide recognition for improvement. Only separate people who violate cultural values (dishonesty, disrespect). Don’t fire for initial performance; manage toward development.

Parting thoughts: start with service, scale with systems

Scaling culture isn’t about deploying software and hoping people will change. It’s about starting with service—teaching your teams how to genuinely help guests—and then using technology to sustain, measure, and multiply that help across a geographically dispersed organization.

Geoffrey’s journey from valet to CEO of a 300-person company shows how practitioner-led product design, anchored in trust and powered by transparent measurement, can turn front-line teams into consistent revenue generators. The ingredients are deceptively simple: clear scripts, credible incentives, visible metrics, and a culture that trusts employees first.

If you’re a leader wrestling with how to grow without losing the soul of your brand, begin by asking three questions:

• Which guest interactions are perishable and under-monetized?

• Can we capture and teach the small behaviors that convert those opportunities?

• How will we make this performance visible and rewarding to the people who execute it?

Answer those, and you’ve started the work of scaling not chaos—but culture.

This piece summarizes my conversation with Geoffrey Toffetti on The Business Philosopher Within You. If you want to explore how these ideas can apply to your frontline teams—hotels, restaurants, retail, or other experiential businesses—look for partners who combine practitioner expertise, a learning-first approach, and lightweight analytics that make results visible and repeatable.

“The best service you can offer your customer is to offer your best services.” — Geoffrey Toffetti

Get In Touch With Geoffrey Toffetti

Geoffrey can be reached through his Linkedin account. To find out more about Frontline Performance Group, visit their website.

This article was created from the video Scaling Culture with SaaS: Lessons from a CEO with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Geoffrey above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Elevate Your Understanding

Below I’ve captured the core lessons, stories, and practical steps Carol shared, presented as a guide you can use personally and organizationally. If you lead a team, an entire company, or are simply trying to align your own career with what matters, this is the roadmap to making purpose real: not as a poster on the wall, but as a strategic force embedded in strategy, products, people, and performance.

What Is Purpose? The “Why Beyond Profit”

Purpose is deceptively simple in definition and profound in effect. At its core, purpose answers one question: why do we exist? Carol phrases it as “an organization or a brand’s why,” the reason beyond making a profit. It’s grounded in humanity: in how work, products and relationships touch minds hands, and hearts.

"Employees don't wake up in the morning to make money for somebody else. They want to do something that engages their head, their hands and their heart."

That triad — intellect (head), behaviors and results (hands), and emotional connection (heart) — is a useful way to check whether a purpose is complete. A strong purpose appeals to people’s reasoning, gives them something tangible to do, and moves them emotionally toward the company’s mission.

Personal Purpose vs. Organizational Purpose

Purpose shows up in two complementary ways: as personal purpose and as organizational (or brand) purpose. The most powerful situations are where the two align.

• Personal purpose is what gives someone direction and meaning in life and work. Carol’s own personal purpose, for example, is to help organizations and individuals discover and live their purpose.

• Organizational purpose is the collective “why” of a company, brand or nonprofit. It needs to be authentic to the company’s history, products and impact.

When personal and organizational purpose meet, you don’t just get motivated employees, you get people who stay, produce better work, and recruit others who resonate with the mission.

Examples That Make Purpose Real

Concrete examples help translate abstract ideas into practical models. Carol shared several that illustrate different kinds of purpose in action:

• Unilever: Paul Polman led a transformation grounded in the company’s origins (e.g., Lifebuoy soap’s handwashing history). Unilever’s purpose, “making sustainable living commonplace,” wasn’t a marketing line; it became a lens for product choices, brand investments and employee engagement. The brands that embraced authentic purpose grew faster and contributed disproportionately to profit.

• Patagonia: A founder-led purpose with a planetary focus: “We exist to save our home planet.” Patagonia aligns every business decision, including donations and corporate structure, to that mission.

• Mars: “The world we want tomorrow is how we do business today” is a simple, ambitious phrase that translates into long-term corporate behavior across products, supply chains, and investments.

• Lineage Logistics: A B2B example where cold-storage warehouses framed their work as feeding the world and eliminating food waste. That elevated a functional business into a purpose-led supply-chain partner and inspired new initiatives like large-scale meal donations.

• Aflac: Turning the iconic Aflac duck into a social robot for kids fighting pediatric cancer demonstrates creative product-level purpose: a tangible invention born from both brand assets and societal need.

Why Purpose Isn’t a Slogan; It Must Be Lived

A danger many organizations encounter is treating purpose as a marketing headline. Purpose must be embedded across the business to be strategic and durable. Carol’s research over thirty studies makes that clear: purpose drives results when it is authentic and operationalized.

Key pitfalls:

• Letting the loudest voice in the room define purpose, rather than listening broadly.

• Creating a beautiful statement, then failing to weave it into values, behaviors, product decisions, and KPIs.

• Starting the work in the middle of the organization and hoping it spreads upward — Carol is clear that real transformation needs CEO commitment.

The Discovery Process: How to Find Purpose (Personal & Organizational)

“Discover” is the operative word. Purpose is typically found rather than invented in thin air. Carol’s firm uses a framework called P3: Precision Purpose Programming. It’s a deliberate, evidence-driven process that combines archival work, interviews, surveys, workshops, and quantitative research.

Here are the practical steps distilled from that approach:

1. Start with history. Look back to the company’s origins. What was the original problem the founders solved? Lifebuoy soap’s hygiene mission was a seed for Unilever’s later work.

2. Map products, services, and customer relationships. How do existing offerings already impact people and communities? Where is there natural resonance?

3. Interview broadly. CEO-led initiatives are essential, but you must interview people at every level: the CEO, senior leaders, factory workers, salespeople, and frontline staff. If you don’t interview enough people, the loudest voice wins — and that risks producing a shallow or inauthentic purpose.

4. Survey employees. Ask what causes matter to them, where they find pride in the company, and what changes would make work meaningful. Survey data complements qualitative interviews and can be especially useful for global organizations where you can’t conduct workshops everywhere.

5. Define ambition and scope. Is the purpose global in scope, or focused on a local community? How much budget and energy do you want to commit? Clarity on ambition influences the nature of the purpose.

6. Prototype and refine. Bring draft language to workshops, adjust based on feedback, and test reactions across regions and business units.

7. Make it measurable. Embed purpose in KPIs, performance evaluations, product roadmaps, and supply-chain decisions.

Discovery is collaborative. Carol emphasizes co-creation because when people participate in the creation of purpose, they more readily buy into its execution.

Launching and Activating Purpose: From Statement to Strategy

Even the best-crafted purpose needs a launch and a living plan to make it stick. Carol shared how effective rollouts include storytelling, leadership visibility, and practical integration:

• CEO sponsorship is non-negotiable. The CEO must champion the work publicly and personally. When the CEO introduces purpose at a global meeting, it sends a signal that this is strategic, not cosmetic.

• Create a compelling launch. Off-site launches with creative assets — especially video — help convey the emotional and practical dimensions of the purpose. Employees need to feel it and understand their role in delivering it.

• Embed it everywhere. Review values and behaviors: if purpose changes the company’s why, values must be revisited. Translate values into observable behaviors and link them to performance metrics.

• Use purpose as a decision lens. Product investments, M&A decisions, supply-chain policies (e.g., sourcing free of child labor), and divestitures should be tested against the purpose. Kerry Group used purpose to decide which businesses to divest.

• Keep measurement and follow-through. Regularly measure how well purpose is being lived. Too often organizations have purpose on the wall but not in practice.

Embedding Purpose into Business Decisions

Purpose should guide the hard choices. Carol gave the example of Kerry Group: after defining its purpose (“Inspiring Food. Nourishing Life.”), leadership used that lens to refocus the company and divest businesses that were not aligned. Purpose, properly applied, becomes a strategic filter that simplifies choices and reduces mission drift.

CEO Responsibility: Why Purpose Needs Top-Level Commitment

Who leads purpose work? Carol is unequivocal: it starts at the top. CEOs set direction and allocate resources. Without CEO commitment, purpose initiatives risk becoming a middle-management project that never achieves scale.

Why the CEO matters:

• CEOs set the operational tone: values, behavior expectations, and allocation of capital.

• CEO visibility during launch demonstrates seriousness and prevents cynicism from spreading.

• CEOs can align boards, investors, and external stakeholders around long-term commitments required for lasting change.

Carol noted that purpose rarely works when initiated from the middle out. The CEO and C-suite must be present in interviews, in priority-setting conversations, and in the public rollout.

Proof That Purpose Moves the Needle (The Data)

Purpose is moral and it’s measurable. Carol’s decades of research, and third-party studies, demonstrate the business case:

• Unilever: Not every brand needed a purpose, but the 30-ish brands that found authentic purpose grew faster and contributed disproportionate profit. Carol cites that these purpose-led brands grew about 69% faster and produced around 75% of the profit among Unilever’s brands that embraced purpose.

• Deloitte/Other research: Companies that authentically live their purpose can achieve materially better financial results. Deloitte’s research, for instance, found that purpose-driven companies can deliver up to three times greater returns (exact figures vary by study and methodology, but the pattern is consistent).

• Internal P3/B2B work: In a sample of about 2,000 B2B respondents, 86% claimed to have a purpose, but only 24% truly lived it. That gap illustrates that intention alone doesn’t equal impact; embedding purpose into the business does.

• Public opinion: After a recent election, Carol’s team asked Americans whether companies should invest more in social impact. Forty-six percent said companies should do more. Support varied by party (66% Democrats, 49% Independents, 36% Republicans), but the overall takeaway is clear: citizens expect corporate contribution to societal well-being.

And when asked what issues companies should address, health and well-being rose to the top, with mental health emerging as a cross-partisan priority.

From "Me" to "We": Societal Trends and the Purpose Pendulum

Society swings between "me" and "we" over time. Whether this is cyclical or generational, purpose and social responsibility are part of a larger cultural conversation. Carol — someone who grew up in the activist eras of the 1960s and 70s — believes that when people and businesses prioritize the collective wellbeing (the “we”), companies that embed purpose create more resilient, future-ready organizations.

Two points to keep in mind:

• The planet is a stakeholder. Beyond employees and communities, businesses must incorporate planetary health into decisions. Paul Polman summarized it bluntly: “We need more trees and more people.”

• Younger generations are hungry for meaning. Gen Z and Millennials care about purpose and are increasingly choosing employers and brands that align with their values. They also lead cultural practices: putting down phones, seeking nature, prioritizing mental health.

How Individuals Find and Activate Personal Purpose

Personal purpose is discoverable. It often emerges through self-reflection, experimentation, and connection. Carol suggests practical steps for individuals:

1. Explore what energizes you. What are the activities you lose time doing? What makes you feel alive?

2. Talk with trusted peers. Honest conversations with friends or mentors help surface consistent themes.

3. Be curious. Read, listen to podcasts, try brief stints in different industries before locking into a long-term path.

4. Try roles that align with your strengths. If you like words and ideas, find roles that let you write, design, or shape narratives.

5. Find companies that mirror your values. If societal impact matters to you, consider working for B Corps, mission-driven firms, or foundations.

6. Don't rush. Personal purpose often crystallizes through time and repeated experience.

And a practical career tip Carol emphasizes for younger professionals: be a great student of your craft. Study, prepare for interviews, and show up with curiosity and competence.

Superpowers, Creativity, and Invention: Stories That Inspire

Carol’s work frequently combines a superpower (her own is “connection-making”) with brand assets to create novel purpose-led initiatives. Two standout projects illustrate this inventive approach:

• My Special Aflac Duck: Carol paired Aflac’s iconic duck with a social robot designed for children battling pediatric cancer. The product is an emotional, practical tool: a toy that helps children communicate, manage treatment days, and feel less isolated. Aflac donated thousands of the robots to hospitals and families.

• Whirlpool washing innovations: Recognizing that billions lack electric washing machines, team members designed hand-cranked or low-resource washers that deliver dignity and hygiene to communities where women spend many hours washing by hand.

These projects matter because they turn brand identity into measurable societal outcomes. They also demonstrate that purpose is fertile ground for product innovation and partnership design.

Practical Checklist: Bring Purpose to Life in Your Organization

If you’re leading purpose work, here’s a condensed checklist that combines Carol’s guidance with practical execution steps:

1. Secure CEO sponsorship and board alignment.

2. Conduct broad discovery: archival research, interviews at all levels, global workshops (if relevant), and employee surveys.

3. Define ambition, scope, and budget so the purpose is actionable, not aspirational without teeth.

4. Draft the purpose statement and test it with employees and customers; iterate until it feels right and real.

5. Launch with storytelling assets (video, employee testimonies, leadership Q&A) and clear examples of how the purpose will influence decisions.

6. Revisit values and behaviors. Translate values into observable actions and build them into performance metrics.

7. Use purpose as a decision lens for product development, M&A, divestitures, supply chain sourcing, and community partnerships.

8. Measure and publicize outcomes. Track employee engagement, brand growth, product performance, and societal impact.

9. Train managers and leaders to embody the purpose daily; avoid making it a one-off communications campaign.

Common Missteps to Avoid

• Putting purpose in marketing only. If an organization markets purpose but doesn’t operationalize it, employees and customers will sense the mismatch and call it out.

• Starting from the middle out. Without C-suite commitment, purpose rarely achieves the scale required to impact product choices and financial performance.

• Failing to measure. Purpose initiatives without measurable goals and KPIs become feel-good projects without sustaining effects.

• Rushing the rollout. Purpose work is long-term by nature; it requires patience and continuous reinforcement.

Final Thoughts: The Power of Head, Hand and Heart

Purpose is strategic and soulful at the same time. It equips organizations to make better choices, design better products, and build deeper relationships with employees and customers. But for purpose to create lasting business value it must:

• Be authentic — rooted in history and honest about capabilities.

• Be collaborative — created and owned by people across the organization.

• Be operational — embedded in values, behaviors, KPIs, and product decisions.

"You can do work that truly involves your head, your hand and your heart."

That is the practical promise of purpose. When done right, purpose is not a soft-end initiative. It’s a strategic resource that helps companies accelerate growth, protect long-term value, and make stronger, more aligned choices for people and planet.

For Individuals and Young Professionals

If you’re early in your career, Carol’s advice is particularly helpful:

• Experiment with industries and roles, but avoid changing jobs every six months. Build depth that employers notice.

• Identify your superpower and find roles that make use of it.

• Be curious: read, listen, get off your phone, and spend time in nature. Those practices sharpen the inner signals that point to purpose.

• Look for organizations with genuine commitment, not just marketing copy. B Corps, social enterprises, and companies with transparent measurement are a good starting point.

What’s Next

Carol continues to pursue big ideas — invention, product-led social impact, and creative partnerships — and her teams are looking for collaborations that turn corporate assets into measurable social outcomes. For business leaders, the invitation is clear: start with the why, involve people broadly, and then commit to living the purpose every day.

If you’re a leader wondering where to begin: start by asking the people who know your business best, your employees, what matters to them. Then bring that feedback to the C-suite and make the commitment to act. Purpose is not a trend. It’s a durable way to build organizations that matter.

Parting Note

Purpose moves organizations from transactional to transformative. It bridges business and society, aligns personal and corporate meaning, and — when properly discovered, launched, and embedded — delivers measurable growth and stronger communities. It’s worth the hard work because the payoff is nothing less than companies that last.

For leaders, the question is no longer whether to have a purpose; it’s how to make yours real, measurable, and central to the business so that it guides decisions and mobilizes people. As Carol reminded me: when purpose is authentic and activated, it becomes the living, breathing execution of why we’re here.

Get In Touch with Carol Cone

Carol Cone ON PURPOSE

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This article was created from the video How Purpose-Driven Leaders Transform Organizational Culture with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Carol above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Learning

Why this matters now

We spend a huge portion of our lives at work. If work is merely transactional the rest of life gets squeezed. If work is meaningful and readable as progress toward personal goals the quality of life improves. That is why the phrase flow state, effortless workplace productivity matters. It is not a slogan. It is a practical description of a state of concentrated production where time feels different and output multiplies. In our hour together Steven described how the film industry has been practicing different modes of work for a century long before the current debates about remote, hybrid, and office-first work. The film model contains lessons that are ready to be applied across industries.

What is a flow state

Steven quoted Mihaly Csikszentmihalyi’s classic research on flow. The description is simple and exact: flow is a concentrated state where you feel carried forward by a river of consciousness. You become so absorbed in an activity that you lose track of time. You forget mundane needs like eating or checking a phone. You feel a direct line between attention and accomplishment. That is the state most of us mean when we say we are genuinely productive.

"You become part of a river of consciousness that carries you forward." — Mihaly Csikszentmihalyi, quoted by Steven Puri

This is not mere entertainment or brief distraction. You can be deeply engaged with something that makes you sad, or scared, or joyful. Engagement is not the same as amusement. When you are engrossed in creative work, whether writing, coding, designing, or composing, you are in a place where flow state, effortless workplace productivity shows up.

Five core conditions for entering a flow state

Steven mapped out a short checklist of conditions that research and experience repeatedly confirm. These are the levers you can experiment with immediately.

• Skill meets challenge: The work must be something you can do, not something trivial but not wildly beyond your skill level. A gap between your skills and the challenge creates focus without anxiety.

• Sense of meaning: You need a reason to care. Great leaders help teams connect daily tasks to a larger purpose. When the task matters it allocates emotional energy to that work.

• Clear, bounded time blocks: Interruptions are costly. Studies show it can take 17 to 22 minutes to reenter focused work after an interruption. Timeboxing reduces that drag.

• Space that cues work: Our brains associate places with actions. Writers, directors, and designers often use the same room or coffee shop to trigger creativity. The right environmental cues can prime flow.

• Sound and sensory design: Nonvocal music, soundscapes, or nature recordings help many people reach deep concentration. For others silence is needed. Know which works for you, then make it available.

When these elements align you increase the odds of achieving a flow state, effortless workplace productivity. Steven emphasized that these conditions are accessible, not exclusive. They can be engineered into daily routines and team practices.

Lessons from film that translate to any workplace

One of the most striking parts of our conversation was the way Steven used the film production lifecycle as a model for modern work. Film projects naturally cycle through phases that mirror remote, hybrid, and in person work.

Here is the typical arc:

• Remote starting phase: Writers work alone in coffee shops or home offices to develop the idea.

• Small in person team phase: Producers, scouts, and designers meet in a production office to organize logistics and budgets.

• High intensity in person phase: Principal photography is location based and everyone is on set together for long stretches.

• Post production hybrid phase: Editors, sound designers, and visual effects artists work from remote studios then come together as needed.

Film teams have practiced moving between these modes for more than a century. Leaders in film have developed rituals and infrastructure to preserve creative energy through those transitions. Translating this to tech or corporate environments means recognizing which tasks need in person collaboration and which require long uninterrupted stretches of deep work. When leaders make this distinction and protect time for focus they create conditions for flow state, effortless workplace productivity.

Meaning as the silent multiplier

Steven used a story from Sukha Company to show how meaning shows up in small but decisive ways. During Sukha’s early days a member told him the service bought him back three clocks in his life. He could be with his kids at 3pm. Steven and his wife connected that description to a Sanskrit word known as sukha, interpreted as self fulfillment and ease. That conversation reframed sukha’s tools as a path, not the end point. The tools are helpful only when they serve the purpose you truly want: more meaningful time with family, finishing projects, or launching a side business.

If a leader can communicate how a task connects to a meaningful outcome, individuals are more likely to invest in concentrated attention. That is the soft multiplier for flow state, effortless workplace productivity.

Remote work, in person work, and where flow thrives

We are in the middle of heated debates about return to office versus remote work. Steven made a nuanced point: film practice suggests a mixed model is natural. Work shifts between modes depending on the phase. Some work benefits from in person chemistry. Other work requires solitude and deep focus. The ideal manager identifies which roles and tasks need which mode and then designs policies to respect those needs.

Some examples:

• Creative planning, brainstorming, and whiteboarding usually benefit from in person contact to catch nonverbal cues and rapid iteration.

• Deep design, coding, and drafting work benefit from long uninterrupted blocks outside of frequent meetings.

• Administrative and transactional work can be scheduled into shorter micro blocks where responsiveness matters more than concentration.

Once you align the mode of work to the task, you get closer to flow state, effortless workplace productivity across the team.

Community and ambient accountability

One of the strongest themes Steven discussed was the power of community. He described a coffee shop in West Hollywood that felt like a clubhouse where many writers showed up to work. People were rarely talking, yet everyone felt accountable to each other’s presence. That ambient energy increases focus. Steven built that same vibe into Sukha by allowing members to show periodic photos of themselves working. Those faint social cues replicate the coffee shop magic online.

Community does several things:

• It reduces the friction of isolation.

• It creates gentle accountability without policing.

• It supplies emotional uplift on hard days and reciprocation when others need support.

When organizations build communities aligned to work rhythms they increase the chances that people will experience flow state, effortless workplace productivity more often.

Timeboxing and goal setting as practical tools

Steven and I spent time talking about simple tools that change behavior. Two are essential: clear goals and timeboxing.

Clear goals operate at two levels. Short term daily goals answer the question: what will I accomplish this sitting? Longer horizon goals answer: where am I headed this quarter or this year. Both are necessary. The short term goal creates a mission for the current block of attention. The horizon goal gives context and meaning.

Timeboxing is a simple habit that transforms vague intentions into concrete action. If you say you will finish a design before lunch and you have a two hour time box your brain invests differently. Remind your team to treat meetings as boundaries and protect blocks for deep work. Steve pointed to a practical rule his teams use: designate core hours with no recurring group meetings. For example, no meetings from 9am to noon. That simple policy reduces interruptions and creates long blocks where flow state, effortless workplace productivity can emerge.

Deep work versus flow

We clarified a useful distinction. Cal Newport’s deep work concept describes the type of work that requires high concentration and produces high value. Flow is the internal state you enter when deep work is working. Deep work is a task category. Flow is the subjective experience. You can schedule deep work. Flow will be the result when conditions align. That is why leaders should protect time and provide the environment that makes deep work more likely to generate flow state, effortless workplace productivity.

Designing workspaces and schedules that cue productivity

Steven offered practical design ideas you can try this week.

• Assign specific spaces to specific activities. Writers rent the same villa when they want to recapture a prior creative state. You can create the same effect by having a focus room, a collaboration room, and casual zones. The brain learns the cue and associates the space with performance.

• Use soundscapes. Not everyone likes music. Some people want absolute quiet. Offer a menu: binaural tracks, 60 to 90 BPM instrumental playlists, rain and nature recordings. Steven recorded rain in the Himalayas and found people loved it. When people can choose their sound environment they enter their optimal concentration faster.

• Block meetings. Protect large blocks for work. Even as few as three hours of uninterrupted work in a day can produce breakthrough progress for designers and engineers.

• Curate ambient community cues. A feature in Sukha takes snapshot photos of members working. That tiny visibility reduces isolation and creates the coffee shop accountability effect.

These steps are simple to implement. They are not free. They require leadership choices. But the return is material. Teams report higher output, less burnout, and faster project completion when these practices are in place.

How leaders can enable the flow state across a team

Leaders should see their job as configuring conditions that let individuals do their best work. Steven gave a short list of actions that any manager can start today.

• Hire for alignment. Hire people with the right skills and shared values. A value aligned team will more easily find meaning in the work and stay committed when deep effort is required.

• Communicate the why. Make sure every assignment carries a clear why. Link tasks to outcomes people care about. Meaning motivates attention.

• Protect deep work windows. Declare core focus hours and limit meetings. Reduce the expectation of instant response during those hours.

• Provide tools not rules. Give people access to noise options, timers, and community channels that support concentration. Let them pick the mix that suits their chronoype and preferences.

• Measure outcomes not hours. Define work as what got done. Move away from valuing late nights or presenteeism. Reward high impact results.

These are the most direct levers leaders can pull to increase the frequency of flow state, effortless workplace productivity across their teams.

What to do when people are different

Not everyone benefits from the same cues. Steven and I discussed sensors versus intuitives, music lovers versus silence aficionados, night owls versus morning people. The practical answer is personalization. Give team members autonomy to choose when and where they do their deep work. Set team agreements rather than one size fits all mandates. Respect different chronoypes and provide shared infrastructure that accommodates the range of preferences.

For example, create optional quiet hours, provide headphones and sound options, and set asynchronous collaboration norms. These moves create a baseline that lets different people find their own path to flow state, effortless workplace productivity.

Real world examples and stories

Steven shared moments from his life that illustrate the human side of this work. He started companies, won Oscars for visual effects early in his career, then moved into film production and later back into tech. He raised roughly 21 million dollars in venture capital over many years. He also failed and learned from those failures.

One memorable Sukha member told Steve he paid for three clocks. The platform got him back time with his family. That comment reframed Sukha as a pathway to a life people wanted. Another story involved writers who rented the same villa to capture a habit cue that had supported their earlier success. The villa became a creative anchor. These stories are small research moments that point to larger truths about environment, ritual, and meaning.

On a very personal level Steve described times he felt shame and isolation after companies failed. He also described a recent health scare that made him reexamine priorities. Those experiences made him more compassionate and a better listener. These human notes matter because flow state, effortless workplace productivity is not just a productivity hack. It must be rooted in humane leadership and compassion.

Practical checklist to increase flow in your week

Below is a compact checklist you can use to convert the ideas from our conversation into practice.

• Identify one deep work project this week and reserve a 90 to 180 minute block to work on it without interruptions.

• Remove notification expectations during the block. Tell your team this is your focus window.

• Choose a space that cues concentration. If you are remote pick a cafe or a particular room. If you are in the office use a focus room.

• Test two soundscapes. One instrumental playlist and one nature sound. Track which one increases uninterrupted time.

• Write a one sentence why for the task. Keep it visible while you work.

• At the end of the block note what you learned and how much you produced. Reinforce output over hours.

• If you are a manager, block shared no meeting hours and measure how it affects throughput after two weeks.

Following these steps will lift you closer to the experience Steven calls flow state, effortless workplace productivity.

Tools and resources

Steve mentioned several resources and authors that are helpful if you want to study this deeper. Here are a few he recommended during our chat.

• Mihaly Csikszentmihalyi’s book on flow for the foundational theory.

• Cal Newport’s writing on deep work for task design and scheduling.

• Product tools such as timers and curated playlists that enable focus blocks.

• Community mechanisms like shared working channels or virtual coffee shop features to create ambient accountability.

Use these readings to create a shared language on your team so you can experiment quickly and iterate.

Why this is not about happiness at work in the party sense

Steven and I were clear: the point is not to turn work into a continuous party. The goal is to design work so people feel fulfilled and effective. Many people confuse a happy workplace with constant entertainment. That is not what we mean. A team that experiences flow state, effortless workplace productivity will be engaged even during hard moments. Engagement can coexist with seriousness and depth. That kind of workplace sustains people over long careers rather than burning them out quickly.

Measuring the impact

How do you know if these changes are working? Steven suggested a few practical metrics:

• Output per time block rather than hours logged.

• Percentage of work time spent in protected deep work windows.

• Qualitative surveys about perceived meaning and wellbeing.

• Retention and progress on major projects across sprints.

When leaders measure outcomes not hours and when teams track time in protected blocks, you will see tangible improvements in both quality and speed.

Final thoughts from our conversation

We all have something great inside us that often never gets expressed. A combination of the right skills and a caring environment increases the chances that talent becomes output. Leaders, teams and individuals can choose to create the conditions that invite flow. The tools are not the goal. They are the path toward the goal, which is a life where work is meaningful and enjoyable in a way that does not rely on stress and overwork.

Steven summed it up beautifully: Sometimes leaders or colleagues help unlock potential. Sometimes we unlock it ourselves. The work of designing systems, spaces, and schedules is a human act. It is about creating a context where people can do the great things they are meant to do.

Where to learn more and reach Steven

If you want to learn more about what Steven is building at Sukha or want to ask a question he invited people to reach out. He is open to emails and to sending reading recommendations from authors like Cal Newport or James Clear. The company he founded is The Sukha Company, and the purpose of the tool is to help people work faster, feel healthier, and finish projects that matter. Use the buttons below to get in touch with Steven and the Sukha Company.

The Sukha Company

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Get started this week

To put this into action choose one item on the checklist and commit to it. If you are a manager, try a single week of protected focus hours. If you are an individual contributor, pick a 90 minute block and try both a music playlist and a nature soundscape. Watch how your attention changes. As you and your team learn, iterate on the environment over the next two sprints.

The greatest gift you can give yourself and your team is the permission to make work a human experience that produces more with less stress. That is the promise behind flow state, effortless workplace productivity. It is modest, practical, and within reach.

Closing

If you enjoyed this summary of my conversation with Steve Puri on The Business Philosopher Within You please try at least one of the experiments this week. Small changes compound. If you are leading a team you may find that protecting three hours a day is the single most effective move you can make to increase collective output and wellbeing. Flow is not mystical. It is the outcome when meaning, time, space, and skill align. That is where real work becomes a beautiful human experience.

This article was created from the video Tap Into Your Flow State: Secrets to Effortless Workplace Productivity with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Steven above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Enrich your understanding

In this article, podcast host Bhavesh Naik interviews Dr. Christie Vanorsdale, a Learning Systems Architect who transforms complex organizational challenges into sustainable learning ecosystems.

Drawing from Christie’s deep expertise in learning sciences and organizational design, this article explores how leaders can revolutionize their approach to learning by fostering collaborative, inclusive, and scalable learning ecosystems.

"We learn better when we co-create knowledge as a community." – Dr. Christie Vanorsdale

About Christie Vanorsdale

Dr. Christie Vanorsdale is a distinguished learning systems architect. With over 15 years of experience across continents like Asia, Europe, and the Americas, Christie transforms complex challenges into sustainable learning ecosystems. Her unique blend of expertise in learning sciences and practical engineering has empowered countless organizations.

Christie specializes in building frameworks that not only scale but also adapt to support every trainer and learner. Her passion lies in designing inclusive environments that drive business impact while ensuring everyone feels supported.

What Is Learning? Perspectives That Shape Effective Organizations

Understanding what learning truly means is foundational to designing impactful learning environments. Learning can be viewed through multiple lenses:

• Behavioral Change: Learning as a change in behavior aligns with traditional behaviorist theories. Organizations focused on results often see learning as the driver of different and improved behaviors that lead to better outcomes.

• Cognitive Learning: From a cognitive perspective, learning involves retaining and applying knowledge, not just memorizing facts. The ability to transfer learning to new contexts is a hallmark of deeper understanding.

• Insight-Based Learning: Sometimes learning happens through “aha moments” — sudden realizations that shift our mindset permanently. These moments often occur in environments where anxiety is low and motivation is high, allowing the brain’s working memory to process new information effectively.

These perspectives highlight that learning is not one-dimensional. For organizations, this means designing learning systems that consider both measurable behavior change and the internal, psychological experiences of learners.

Designing Learning Environments: The Two-Pronged Approach

Creating effective learning experiences requires a balance between methodical goal-setting and fostering the right environment for learners to thrive.

1. Starting with the End in Mind: Backwards Design

Leaders and learning architects must begin by clearly defining the desired outcomes. This approach, known as backwards design, involves:

• Identifying specific goals learners should achieve by the end of a training or program.

• Designing materials and assessments that directly support those goals.

This ensures that every aspect of the learning experience is purposeful and aligned with organizational objectives.

2. Creating the Right Learning Environment

Beyond content, the environment where learning takes place is critical. This includes:

• Psychological Safety: Learners need to feel safe to be vulnerable, ask questions, and take intellectual risks without fear of judgment.

• Low Anxiety and High Motivation: Reducing stress and increasing motivation opens working memory capacity, enabling better information processing.

• Accessibility and Intuitiveness: The learning system should be easy to navigate, with clear instructions and minimal frustration. If learners struggle just to access training, motivation plummets.

Design thinking principles are invaluable here. By deeply understanding learners’ needs, motivations, and contexts—often through interviews and prototyping—organizations can craft environments that truly support learning. This user-centered approach avoids the pitfall of creating training solutions that look impressive but fail to meet learners where they are.

Breaking Down Silos: Collaborative Learning as a Catalyst

One of the most powerful outcomes of well-designed learning ecosystems is the breakdown of organizational silos. When departments like sales, marketing, operations, and finance collaborate on learning initiatives, several benefits emerge:

• Improved Communication: Shared learning projects foster transparency and understanding across functions.

• Unified Brand of Learning: Developing a consistent approach and voice to training that reflects the organization's culture and values.

• Enhanced Employee Engagement: When learners from different parts of the organization co-create knowledge, motivation and retention increase.

For example, involving multiple stakeholders in reviewing training materials before launch encourages dialogue and reveals insights that might otherwise be missed. This collaborative process not only improves the quality of training but also builds a culture where learning is a shared responsibility.

Who Benefits Most from Learning Ecosystems?

While every organization can benefit from fostering learning, the impact is often greatest when leadership—especially roles like Vice Presidents of Operations or CXOs—champion these initiatives. Their broad oversight allows them to:

• Ensure alignment across departments and break down silos.

• Implement governance around content creation, user management, and quality control.

• Gain visibility into training effectiveness at a granular level.

By embedding learning into the operational fabric, these leaders help create ecosystems that not only support compliance but also drive employee growth, customer satisfaction, and organizational agility.

From Compliance to Culture: Making Learning Meaningful

Many organizations initially approach learning out of necessity—compliance with regulations or mandatory training. However, viewing learning as merely a checkbox creates low motivation and engagement.

Transforming compliance training into an opportunity for growth involves building a culture where learning is valued and linked to personal and organizational goals. When employees see that their company invests emotionally and financially in their development, compliance courses become just one part of a broader, inspiring journey.

Adult Learning Principles: Meeting Learners Where They Are

Adult learners bring complexity to the training environment. Unlike children, adults balance multiple life responsibilities and often have preconceived notions or ego barriers that impact motivation. To design effective adult learning experiences, consider:

• Clear Rationale: Adults need to understand why they are learning something and how it applies to their work or life.

• Managing Expectations: Communicate upfront about time commitments and activities involved.

• Plain Language: Use accessible language to reduce cognitive load and anxiety, especially for learners with diverse backgrounds.

Creating a low-anxiety, high-motivation environment tailored to adult learners maximizes their engagement and retention.

Overcoming Challenges: A Personal Journey of Growth and Resilience

The path to becoming a learning systems architect is often filled with hurdles. Navigating the complexities of designing scalable learning ecosystems requires perseverance, adaptability, and continuous self-reflection.

One vital lesson is transitioning from a reactive, survival mindset to a proactive, purpose-driven approach. This shift involves:

• Developing a clear business strategy beyond just delivering projects.

• Seeking support such as business coaching to refine focus and goals.

• Embracing anxiety as a natural part of growth while fostering trust and love for the work.

This personal transformation mirrors the organizational change leaders seek to inspire in their teams.

Practical Steps to Start Building a Learning Culture Today

Not every organization can implement large-scale learning ecosystems immediately. However, small, deliberate actions can spark meaningful change:

• Create channels like a Slack group or discussion board where employees can ask questions and receive support.

• Start with one targeted change or improvement in your learning processes.

• Encourage leadership to take responsibility for employee growth and model learning behaviors.

Remember, when employees thrive, the business thrives.

Connecting and Moving Forward

If you are a leader or learning professional interested in transforming your organization’s learning culture, consider partnering with experts who specialize in creating bespoke learning ecosystems tailored to your unique needs. By focusing on your organization's specific goals, culture, and learner personas, you can build a sustainable framework that supports continuous growth and collaboration.

Whether you are aiming to overhaul your entire learning infrastructure or simply want to initiate one small improvement, there are strategies and tools available to guide you on this journey.

Contacting Christie Vanorsdale

Christie can be reached through her website or through Linkedin.

If you want to explore nurturing a learning culture into your organization, from high-level conceptual design to the nuts-and-bolts of learning management systems, you can schedule a conversation with Christie.

Book a Free Call with Chrities

Vanorsdale Learning Lab

Linkedin

Conclusion

Revolutionizing leadership through collaborative learning is not just about deploying training programs—it’s about creating an environment where learning is embedded in the organizational DNA. By understanding diverse learning perspectives, designing learner-centered environments, breaking down silos, and fostering a culture of trust and motivation, organizations can unlock the full potential of their people.

This approach leads to sustainable business growth, higher employee engagement, and a competitive advantage in today’s dynamic marketplace. As leaders, embracing this philosophy and investing in learning ecosystems is an investment in the future success of your organization.

This article was created from the video Revolutionize Leadership with Collaborative Learning with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Steven above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen your understanding

This discussion is inspired by a revealing conversation between Bhavesh Naik, host of The Business Philosopher Within You podcast, and Johan Colvig, Founder and CEO of ClearGrowth. Johan brings a unique perspective shaped by years of entrepreneurial experience and a passion for transforming raw financial data into actionable insights. Together, they unpack the challenges businesses face in managing cash flow, customer acquisition, and retention, while highlighting how AI tools can revolutionize financial management for the better.

From Startup Struggles to Clear Growth

Johan's journey into the world of financial clarity began nearly two decades ago with his first startup. Working initially with large enterprises on business intelligence systems, he soon realized that big companies operate differently and often receive little value from the complex tools built for them. This realization led him to co-found a financial business intelligence software company aimed at accountants and their clients. However, that venture failed spectacularly due to a lack of meaningful value creation.

Undeterred, Johan took a hands-on approach by working undercover as a fractional CFO. This experience revealed a universal challenge for business owners: the constant struggle to maintain enough cash flow to cover payroll and operational expenses. His insight was clear—business owners needed more than just raw numbers; they required a clear path forward grounded in financial clarity. This became the foundation for ClearGrowth, a company dedicated to turning financial data into structured insights that fuel sustainable business growth.

The Universal Cash Flow Challenge

One of the most critical problems all businesses face is managing cash flow effectively. Johan highlights how many business owners operate primarily by two or three numbers: their bank balance, their revenue, and if lucky, their regular profits. However, this limited view often masks the real financial health of the business because it overlooks obligations like unpaid bills and other liabilities.

This simplistic approach can lead to dangerous assumptions. For example, having $50,000 in the bank might seem healthy until you account for $60,000 worth of unpaid bills. Without a nuanced understanding of cash flow, business owners risk making costly decisions based on incomplete information.

Johan stresses that beyond just revenue and bank balances, business owners must understand their net cash flow, the timing of payments, and the costs tied to acquiring new customers. This comprehensive financial understanding is essential whether you run a one-person operation or a multinational corporation.

Why Knowing Your Customer Acquisition Cost Matters

A question Johan often poses to clients is deceptively simple yet revealing: How much does a new customer cost you? Surprisingly, many business owners cannot answer this. Knowing your customer acquisition cost (CAC) is crucial because it directly impacts your ability to grow sustainably.

In the tech world, companies typically have clear metrics for CAC, recurring revenue, and retention rates, which investors scrutinize closely. Outside of tech, however, many businesses lack a defined philosophy or framework for managing these metrics, leading to broken business models and cash flow crises.

Understanding CAC helps businesses control growth rather than leaving it to chance. For instance, during the pandemic, many businesses experienced an influx of customers due to government relief packages, but without a clear acquisition strategy, these customers are likely to leave once the support ends.

Connecting Customer Acquisition Cost and Cash Flow: The Restaurant Example

Johan uses the example of a restaurant to illustrate the connection between CAC and cash flow. Suppose a restaurant experiences declining revenue. The common instinct is to spend more on marketing to attract new customers. But what if the real issue is that existing customers aren't returning as often?

Spending money to acquire new customers when the retention problem remains unresolved can worsen cash flow. This is because the initial visit of a new customer often results in a negative profit margin when acquisition costs exceed the revenue generated. Profitability usually comes with repeat visits, meaning customer retention is key.

To put numbers to this, consider a business with $1 million in revenue and an average transaction value of $100. If it costs $50 to acquire a new customer but the gross profit on that first sale is only $25, the business loses $25 on the initial transaction. Only after the third transaction does the business start to break even or make a profit.

This example underscores why customer retention programs and loyalty initiatives are vital. Without repeat customers, businesses throw money away on costly acquisition efforts that do not pay off.

Core Profitability: The Heart of Sustainable Growth

Johan introduces the concept of core profitability, which is the gross profit minus operating expenses such as general and administrative costs and research and development. This figure indicates whether a business makes money every time a customer transacts.

For example, if a business has 30% core profitability but spends $300 to acquire a customer who generates $100 in revenue per visit, it needs multiple repeat transactions before it turns a profit. This relationship between core profitability, CAC, and customer retention forms the backbone of a sustainable growth strategy.

Businesses must first ensure their core profitability is positive before investing heavily in customer acquisition. Fixing operational inefficiencies, optimizing salaries, increasing prices, or sourcing cheaper materials are ways to improve this profitability.

Breaking Down Expenses for Better Financial Clarity

One of the biggest obstacles to financial clarity Johan highlights is the traditional accounting approach. Accountants typically organize financial data for tax compliance rather than business analysis. This often results in expenses being lumped together in ways that obscure operational insights.

Johan advocates for segmenting expenses into four logical categories:

• Sales and Marketing: All costs related to acquiring and retaining customers, including advertising, commissions, and lead generation tools.

• Administration: Overhead costs such as rent, utilities, office supplies, insurance, legal fees, and executive salaries.

• Operations: Expenses directly tied to delivering products or services, like salaries for production staff, warehouse costs, and machinery maintenance.

• Research and Development: Investments in innovation, product development, and improvements.

Separating these categories allows businesses to calculate metrics like CAC accurately and assess the true profitability of their operations. For instance, software costs used for marketing should fall under sales and marketing, not administration.

Using Financial Insights to Drive Actionable Decisions

With segmented expenses and a clear understanding of CAC and core profitability, businesses gain actionable insights. They can calculate how many repeat transactions are needed to break even on customer acquisition and identify where to prioritize improvements.

For example, if a restaurant knows that its core profitability is 30% and CAC is $50, it can estimate the number of visits a customer must make to become profitable. If the average customer only visits five times, strategies to increase retention to seven visits could justify investing in loyalty programs or targeted promotions.

Johan emphasizes that business philosophy must translate into management actions. Metrics without corresponding actions are meaningless. This approach transforms financial data from static reports into dynamic tools that guide daily decision-making.

Scaling Challenges: From One Location to Many

As businesses grow, new challenges emerge beyond cash flow and customer acquisition. Johan uses the example of expanding from one restaurant location to multiple sites, which introduces the need for middle management and robust processes.

When a business has fewer than 10 employees, the owner can usually oversee operations directly. Beyond that, delegation and process documentation become essential. Well-defined processes and checklists help maintain core profitability by ensuring consistent operations and easier employee training.

At larger scales, businesses face issues like fraud, operational inconsistencies, and uneven performance across locations. For example, a rogue manager might steal cash, or one location might underperform compared to others. Without proper monitoring and controls, these problems can erode profitability quickly.

Johan points out that many franchise models provide marketing support but leave operational systems to individual franchisees, often leading to failures. Effective process management and financial oversight are critical for scaling successfully.

The Role of AI in Financial Management and Business Processes

Artificial intelligence plays a pivotal role in addressing many of these financial management challenges. Johan shares that AI can improve expense categorization beyond what traditional accountants achieve, reducing costs and enhancing accuracy.

For example, ClearGrowth found that 32% of bills are paid early, which unnecessarily strains cash flow. AI-powered bill payment systems can optimize timing to preserve cash without missing due dates.

Moreover, AI enables near real-time financial tracking, unlike the traditional quarterly or monthly accounting cycles that leave businesses operating blind for weeks or months. This timely insight is crucial for making informed decisions and preventing cash flow crises.

Johan also sees potential for AI to automate and monitor business processes, especially in multi-location operations. An AI "manager" could analyze patterns, detect process breakdowns before they cause damage, and provide proactive recommendations, freeing owners to focus on strategic growth.

Entrepreneurship, Risk, and Resilience

In a candid discussion, Johan challenges the conventional view that entrepreneurship is riskier than traditional employment. He argues that employees, especially in large corporations, face significant risks, such as sudden layoffs, often with little control over their destiny.

As an entrepreneur, Johan feels empowered by his ability to shape his future, accepting challenges as opportunities to learn and grow. He recalls working in a large bank and witnessing a culture that rewarded longevity over innovation, which he found stifling.

Johan’s resilience is evident in his response to failure. Reflecting on a failed startup where he shared CEO responsibilities with a partner, he acknowledges that having two CEOs impaired decision-making and ultimately led to the company's downfall. This experience taught him the importance of clear leadership and avoiding internal politics in business partnerships.

Over the years, Johan has developed maturity and strategic insight. He now understands how to navigate challenges, control emotions, and remain focused on outcomes rather than conflicts. This mindset is crucial for any business leader aiming for sustainable success.

Building a Philosophy Grounded in Action and Numbers

At the heart of Johan's approach is the belief that business philosophy should be actionable and grounded in measurable metrics. It's not enough to have lofty ideals; entrepreneurs must tie their philosophy directly to financial insights and management actions.

This philosophy empowers business owners to:

• Identify the root causes of financial problems

• Prioritize fixes that improve core profitability

• Make informed decisions on customer acquisition and retention investments

• Develop scalable processes to support growth

• Leverage AI and automation to maintain financial clarity and operational efficiency

By embracing this philosophy, businesses can move away from random, reactive management and toward a sustainable growth trajectory based on clarity, control, and continuous improvement.

Connecting with ClearGrowth and Moving Forward

For business owners struggling to understand why their growth stalls or their cash flow tightens, Johan offers a clear path forward. ClearGrowth provides tools and expertise to help businesses pinpoint their financial problems and develop actionable solutions.

Johan welcomes conversations with business owners who want to transform their financial management and drive sustainable revenue growth. You can reach him at johan@cleargrowth.ai to explore how AI-driven insights can revitalize your business.

Conclusion

Sustainable business growth is not a matter of chance but a result of disciplined financial management, clear philosophy, and actionable insights. By understanding the true cost of acquiring customers, focusing on core profitability, and leveraging AI for real-time financial clarity, businesses can build resilient models that thrive in any economic environment.

Johan Colvig’s journey from startup failures to pioneering AI-driven financial management offers valuable lessons for entrepreneurs everywhere. His philosophy reminds us that numbers are not just data points but tools for making smarter decisions that lead to lasting growth.

As Bhavesh Naik emphasizes, this approach to business is more than theory—it is a working philosophy that guides daily actions and management choices, ensuring that growth is both achievable and sustainable.

This article was created from the video The Financial Philosophy That Transforms Business Growth with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Johan above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Enrich Your Learning

Drawing on over two decades of consulting experience with top associations such as the American Medical Association and the National Association of Realtors, Vaughn unpacks the unique dynamics of associations, their leadership challenges, and sustainable growth strategies. This article delves into those insights, highlighting how associations build resilient, adaptable organizations by aligning mission, members, and money.

The Platypus vs. Unicorn: Understanding the Nature of Associations

Chris Vaughn offers a compelling metaphor to distinguish associations from corporations. While companies like Google or Apple are often seen as “unicorns”—single-purpose, highly focused entities—associations are more like platypuses: multifaceted and uniquely adapted to their environment.

Unlike corporations that primarily sell products or services for profit, associations juggle multiple roles simultaneously. They serve as membership organizations, publishers, event organizers, and sometimes operate for-profit subsidiaries. This complexity requires leaders to manage diverse functions and stakeholders, including volunteers and members who are also the beneficiaries of the association's work.

"Associations are designed that way for a purpose. They are many things in one, and all parts have to swim in unison like the pieces of a platypus."

Distributed Power and Leadership Challenges

One of the defining characteristics of associations is their distributed power structure. Unlike corporations with hierarchical decision-making, associations operate through consensus among volunteers, committees, and member-elected boards. No one owns an association; instead, it is collectively governed by its members.

This decentralized power requires leaders to be exceptional consensus builders, visionaries, and communicators who can align diverse groups around a shared mission. Leading volunteers who are not salaried employees demands a different approach—one based on persuasion, shared purpose, and meaningful engagement rather than fear or greed.

Vaughn emphasizes that managing this “platypus” requires balancing efficiency with inclusiveness and consensus, a skill set that many corporations might find challenging to replicate.

The Triple Bottom Line: Mission, Members, and Money

Associations measure success differently than corporations. While for-profit companies focus on a single bottom line—profit—associations manage a triple bottom line:

• Mission: Serving a profession, industry, or social cause.

• Members: Delivering value and engagement to a diverse membership base.

• Money: Generating sufficient revenue to sustain and grow operations.

Each of these bottom lines is interconnected. The mission drives the purpose, members provide energy and engagement, and money supports the activities necessary to fulfill the mission. Sustainable growth depends on nurturing all three simultaneously.

Engaging Members: From Transactional to Transformational Relationships

Membership growth is not just about increasing numbers but about attracting the right members who align deeply with the association’s mission and will remain engaged over time. Vaughn cautions against short-term tactics like giving away free memberships or heavy discounts, which may inflate numbers temporarily but do not lead to sustainable engagement.

Instead, the key lies in identifying the association’s unique value proposition—what Vaughn calls the “right to win” or “way to play.” This means understanding unmet member needs and offering unique benefits that no other organization can replicate.

"When associations nail their way to play, addressing unique member needs, that's when the magic happens—tripling growth rates and doubling memberships."

Lessons for the For-Profit World

Many of the leadership and engagement principles found in successful associations have valuable applications in the corporate sector. Vaughn highlights that for-profit companies can learn much from associations about customer loyalty, long-term retention, and creating meaningful team environments.

Associations retain members for an average of nine years, with some boasting retention rates above 85%. This level of loyalty far exceeds typical corporate customer retention and is deeply rooted in shared mission and belonging rather than transactional incentives.

In terms of leadership, engaging volunteers without financial incentives requires fostering a sense of purpose and belonging. Corporations can benefit by moving beyond fear and greed as motivators and instead creating inspiring visions that unite teams around a shared goal.

Building Sustainable Growth

Sustainable growth in associations comes from retaining members who are genuinely engaged and see ongoing value. This contrasts with growth-for-growth’s-sake tactics that often result in high churn rates. Associations that focus on deepening engagement, delivering value, and consistently aligning with members’ missions achieve long-term success.

Vaughn compares this to subscription-based businesses like Netflix, where long-term retention is the key to profitability. The best associations keep members renewing for many years, with some boasting average membership durations of 19 to 20 years.

Why Passion Matters More Than Pay

One of the most insightful observations from Vaughn’s experience is the difference in motivation between association volunteers and corporate employees. Volunteers work hard not because they are paid, but because they believe in the mission and want to be part of something bigger than themselves.

This alignment between personal values and organizational mission creates a holistic, meaningful experience that many employees in for-profit organizations may lack. Vaughn argues that when work aligns with individual purpose, engagement soars and performance follows naturally.

Overcoming Challenges: The Journey of Sequence Consulting

Chris Vaughn’s own career path reflects the values he champions. After years in corporate strategy consulting, he and his wife sought more meaningful work and founded Sequence Consulting, focusing on helping associations grow and thrive.

Their journey has not been without hardship, including near business failure during the 2008 financial crisis and Vaughn’s personal battle with cancer. These experiences deepened their commitment to their mission and strengthened their resolve to help associations succeed.

Practical Tips for Association Leaders

For leaders looking to strengthen their associations, Vaughn recommends:

1. Turn outward: Look beyond internal metrics and engage with external trends and perspectives to identify opportunities.

2. Listen deeply: Go beyond surveys to have real conversations with rank-and-file members, understanding their needs and experiences.

3. Build consensus: Recognize that decisions require broad agreement and invest time in bringing all stakeholders on board.

These habits foster alignment between members’ personal missions and the association’s goals, fueling sustainable growth and impact.

Conclusion: The Power of Associations

Associations are extraordinary organizations that blend mission, membership, and money in ways corporations rarely do. Their unique structure, distributed power, and focus on shared purpose enable them to create resilient, adaptable communities that stand the test of time.

By learning from associations, corporate leaders can unlock new ways to engage employees, build loyalty, and lead with vision beyond transactional incentives. Whether you lead an association or a corporation, embracing these principles can help you build stronger, more sustainable organizations.

Frequently Asked Questions (FAQ)

What makes associations different from corporations?

Associations operate with a distributed power structure involving volunteers and members, have multiple bottom lines (mission, members, money), and focus on consensus-driven leadership rather than top-down control.

Why do members stay with associations for so long?

Because associations align their mission closely with members' personal values and unmet needs, creating meaningful engagement and a strong sense of belonging.

How can corporations benefit from association leadership principles?

Corporations can learn to engage employees beyond financial incentives by fostering shared vision, purpose, and consensus-building, leading to higher loyalty and performance.

What is the “triple bottom line” in associations?

It refers to balancing mission impact, member engagement, and financial sustainability simultaneously.

How do associations achieve sustainable growth?

By attracting the right members who are genuinely engaged, delivering ongoing value, and focusing on retention rather than just acquisition.

What leadership skills are essential for managing associations?

Consensus building, effective communication, vision setting, and the ability to motivate volunteers without relying on financial rewards.

Where can I learn more about Sequence Consulting?

Visit sequenceconsulting.com to explore their work with leading associations and contact information.

This article was created from the video Why Associations Outperform Corporations with the help of AI.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Chris above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

After a careful review of a long line of exciting options, the choice was obvious: we were going birdwatching.

Much to my surprise, they agreed to come along for the experiment. We bought a picture book of birds, two pairs of binoculars, and visited Great Falls, a park not far from our home in Maryland.

Something curious happened along the way.

When we saw an interesting bird, we quickly flipped through the book to find it. However, by the time we found something similar in the book, the bird was gone. The better strategy, we discovered through trial and error, was to leave the book in the car.

On our next excursion, when we saw a bird, we would just take its mental snapshot. Later, when we got back to the car, we would flip through the book to find the bird.

To our surprise, all the details we needed were still fresh in our minds. In most cases, we were able to find the bird we had seen and learn all about it from the book.

Our takeaway? Being present without trying to analyze what we were looking at improved our observational capacity. This, in turn, sharpened our ability to be aware of our surroundings. In the end, our trips were far more enjoyable. We got closer to nature and created some wonderful memories.

Cultivating Situational Awareness: The Path to Deeper Understanding

I was reminded of this story in a recent conversation with Fabiana Lacerca-Allen, the author of Crisis Capable and a Fortune 100 C-level executive.

Fabiana brings a deeply experiential perspective to the idea of situational awareness. She grew up during the times of a military dictatorship in Argentina, where her family navigated through some harrowing experiences. She had no choice but to draw on her resources: being aware of her surroundings, her instincts, and her intuition.

Apart from being tuned into our surroundings, a concept called situational awareness, she emphasizes that trusting our gut feelings is essential for survival and decision-making, especially when information is limited.

"If you feel something's off, it's off." ~ Fabiana Lacerca-Allen

Our society often teaches us to override our inherent observational skills and deep awareness of our surroundings.

But, as Fabiana points out, "If you feel something's off, it's off."

This simple truth is a critical foundation for navigating complexities, whether in life or in the workplace. The world around us is as hostile today as it was during a military dictatorship, just a different type of hostility.

Whether we are guiding a team, leading an organization or building a business, learning to trust our instincts is a powerful path to building high-performing teams that can stand the test of time.

Self-Awareness, Inclusion and Belonging: What’s the Connection?

While situational awareness is an awareness of what’s around us, self-awareness is an awareness of what’s going on inside us. It’s the same awareness that allows us to be attuned to our surroundings, but it is directed inwards.

Simply put, self-awareness is the awareness of our thoughts, feelings, emotions and sensations. While it may be a bit challenging to some of us in the beginning, when we develop the ability to be self-aware, we notice our patterns of thoughts, emotions, behaviors, judgments and beliefs.

“Inclusion is a feeling.” ~ Joanne Lockwood

Self-awareness can make us better leaders, builders and managers because it allows us to see our blind spots. With increased self-awareness, we can bring into our teams and organizations people from different perspectives and abilities.

With skilled and insightful management, we can harness the capacity, creativity, and contributions of people from diverse backgrounds and perspectives. In the end, self-awareness allows us to build more efficient, better-performing, and highly resilient organizations.

No one I know is more qualified to talk about this than Joanne Lockwood, the visionary behind See Change Happen and a leading inclusive culture expert.

In a recent conversation I had with Joanne on The Business Philosopher Within You podcast, she made an important distinction between inclusion and belonging. For Joanne, inclusion is a feeling – how one is treated dictates how they feel, leading to a sense of ease and acceptance without needing to prove oneself.

Belonging, however, runs deeper. It's about being completely accepted and celebrated for all of who you are, based on shared values and culture.

Understanding Crisis & Intuition: Insights from Fabiana Lacerca-Allen

In our continuous exploration of building resilient, people-first organizations, we dive deep into the concept of situational awareness with Fabiana Lacerca-Allen, author of Crisis Capable.

She reveals how early life lessons instilled in her a profound understanding of trusting one's gut feelings – a skill she emphasizes is vital for leaders navigating today's complex corporate environments.

Learn why society often conditions us to ignore these crucial signals and how Fabiana's path to becoming a C-level executive at Fortune 100 companies was profoundly influenced by her ability to discern unseen patterns and intentions.

This conversation will challenge your perceptions of safety and provide actionable insights into cultivating your own instincts for better decision-making and organizational strength.

Watch the full conversation with Fabiana Lacerca-Allen below:

The Truth About DEI & Belonging: A Conversation with Joanne Lockwood

In this conversation, we dive into the critical yet often misunderstood landscape of Diversity, Equity, and Inclusion (DEI) with Joanne Lockwood, the visionary behind See Change Happen.

Joanne, a leading expert in inclusive cultures, unpacks the powerful distinction between inclusion and true belonging, offering a definition rooted in feeling celebrated for your whole self, not just the parts others tolerate.

This conversation reveals why the DEI label has become "toxic" in some circles and how superficial initiatives can miss the mark.

Joanne shares insights from her own transformative journey and professional expertise, highlighting the courage and deep commitment required from leadership to embed genuine empathy and belonging into an organization's core culture.

Discover how focusing on this profound level of human experience leads to greater performance, wider talent pools, and sustained relevance in the marketplace.

Watch the full conversation with Joanne Lockwood below:

Growing Up with Situational Awareness: Lessons from 1970s Argentina

Fabiana’s story begins in a living room in Argentina when she was about six years old, a time and place marked by political turmoil and danger. Her family faced direct threats, and early on, she learned that survival depended on paying attention to subtle signs and trusting instincts. One of the most powerful lessons she recalls is a conversation with her father after a frightening attack on their home. Expecting reassurance that no one would die, Fabiana was instead told, “But we're all going to die, so don’t worry about it. Worry about what you’re going to live for. Some things are worth dying for, and for everything else, you need a plan.”

“But we're all going to die, so don’t worry about it. Worry about what you’re going to live for. Some things are worth dying for, and for everything else, you need a plan.”

This lesson became a guiding principle for her life. It highlights the importance of having purpose and a plan, especially when facing uncertainty. Fabiana’s childhood was filled with moments where she and her younger sister, despite being just five and six years old, sensed danger before the adults did. For example, her sister noticed strangers watching their home from outside, something the parents initially dismissed as security guards. Fabiana herself dreamt of red shadows, a symbol of the impending threat that indeed materialized at dawn.

These early experiences forced Fabiana to develop emotional intelligence and situational awareness far earlier than most people. She learned to read the environment, detect patterns, and understand when something was off. This heightened sense of awareness became a survival tool and later a leadership asset.

The Power of Childhood Intuition

Psychologists often note that young children have a heightened sensitivity to their surroundings because their rational mind is still developing. Fabiana’s story reinforces this idea, showing that children’s intuition can be remarkably accurate. Her sister’s ability to notice suspicious behavior and Fabiana’s own dreams and feelings were early signs of their emotional intelligence at work.

In many societies today, however, this intuitive sensitivity is often suppressed. Children are taught to be polite and not offend others, sometimes at the cost of ignoring their gut feelings. Fabiana points out that this can be dangerous because those instincts are vital for personal safety and decision-making.

Situational Awareness and Intuition in Leadership

Fabiana’s ability to trust her instincts didn’t end with childhood. Throughout her 30-year career as a C-level executive at Fortune 100 companies, she applied situational awareness and emotional intelligence to navigate complex corporate environments.

One story she shared illustrates how well she knew her father and how that knowledge helped her make a life-saving decision. At 14, she was at a math tutor’s house, and someone rang the bell early claiming to be her father picking her up. Despite wanting to believe it, Fabiana knew her father would never pick her up early or ring the bell the way this person did. She trusted her instincts, locked herself inside, and later confirmed that it was an impostor. This decision likely saved her life.

Fabiana emphasizes that effective leaders often have to make decisions with limited information. They rely on intuition, emotional intelligence, and situational awareness to read the room, understand people’s intentions, and act decisively. These skills allow leaders to build trust, manage teams, and respond to crises effectively.

Emotional Intelligence as a Leadership Superpower

Emotional intelligence is more than just understanding your own feelings; it’s about reading others and adapting to the situation. Fabiana notes that in corporate America, many people focus on IQ or educational background when hiring or promoting leaders. However, she argues that traits like emotional intelligence, trustworthiness, and the ability to remain calm under pressure are far more important for survival and success.

For example, in negotiations or team dynamics, understanding the signals people give off - whether nervousness, dishonesty, or hidden power structures - can help leaders make better decisions. Fabiana shares that many problems, even violent ones, don’t come out of nowhere but are preceded by signals that often go unnoticed or ignored.

Building Situational Awareness: Practical Strategies

Situational awareness is a skill anyone can develop with practice. Fabiana suggests observational exercises to sharpen this ability. One such exercise she did with her team involved going to a busy restaurant and trying to describe people’s appearances and behaviors in detail. Surprisingly, many struggled with basic descriptions, showing how much people tune out their environment.

Here are some practical steps to improve situational awareness:

• Pay attention to details: Notice what people are wearing, how they behave, and any changes in the environment.

• Trust your instincts: If something feels off, it probably is. Don’t ignore that feeling even if you can’t immediately explain it.

• Observe patterns: Look for repeated behaviors or anomalies that might signal a change or threat.

• Practice mindfulness: Being present in the moment helps you notice things you might otherwise miss.

• Discuss and reflect: Talk about what you observe and learn from others’ perspectives to sharpen your understanding.

Fabiana also highlights the importance of self-awareness. Knowing your own strengths, weaknesses, and emotional triggers helps you respond better under pressure and make clearer decisions.

Balancing Vigilance and Well-being

While situational awareness is vital, it’s possible to go too far and become hyper-vigilant, which can lead to stress and anxiety. Fabiana acknowledges this but argues that it’s better to be too alert than unaware. Being aware allows you to respond to danger early and protect yourself and others.

Finding a balance means developing a mindset where you stay alert without becoming overwhelmed. Techniques like deep breathing, grounding exercises, and taking breaks from stressful environments can help maintain this balance.

Integrity and Decision-Making in Crisis

One of Fabiana’s core values is integrity. She shared that there are lines she will never cross, such as signing off on something she knows is untrue. Integrity is essential for leaders, especially in crisis, because decisions often involve ethical dilemmas and trust issues.

Fabiana encourages leaders to be honest with themselves and their teams. Admitting mistakes, learning from them, and maintaining transparency builds resilience and credibility. She also stresses the importance of having an exit strategy or knowing what your non-negotiables are in difficult situations.

Learning from Failure and Dark Moments

Everyone faces moments when the challenges seem unsurmountable. Fabiana admits to having had times when she thought it might be best if she wasn’t around anymore, but she always kept a plan and a will to learn. These dark moments are part of growth and leadership.

What matters is how you respond. Being open to learning, listening to others, and adapting your approach can turn crises into opportunities for transformation.

Applying Situational Awareness Across Cultures and Contexts

Fabiana’s experiences growing up in Argentina and working in the U.S. reveal how situational awareness must adapt to different cultural norms. For example, in her interactions with Indian colleagues, she notes the importance of understanding subtle cues like humility mixed with strong will, which might be misunderstood by outsiders.

She also points out that many people live in environments far less secure than those in Western countries. What looks like chaos or unpredictability to some is a normal part of life for others, requiring constant vigilance and adaptability.

Leaders who understand different cultural contexts and the unique challenges people face are better equipped to build strong, inclusive teams and organizations.

Situational Awareness in Everyday Life and Corporate America

Situational awareness isn’t just for crisis or dangerous situations. It applies to everyday life, from navigating traffic to reading social signals at work. Fabiana shares how corporate America is full of signals that people often miss or choose to ignore. Whether it’s sensing dishonesty in a negotiation or noticing shifts in team dynamics, being aware helps leaders respond effectively.

She also highlights how many social issues—like infidelity, workplace conflicts, or harassment—could be mitigated if people paid more attention to the signs and trusted their instincts.

Embracing Your Unique Background as a Strength

For those coming from challenging environments to safer ones, Fabiana advises embracing your experiences. Your background has equipped you with skills and intuition that many others lack. Use those strengths to thrive in new contexts rather than feeling embarrassed or out of place.

She encourages people to see their history as a source of resilience and wisdom that can benefit their personal and professional lives.

Final Thoughts: Building Capacity to Survive and Succeed

Situational awareness is more than a skill; it’s a mindset. It involves paying attention, trusting your intuition, understanding people’s intentions, and making decisions even without perfect information. Fabiana’s life story and career demonstrate how these qualities can help anyone build resilience, lead with confidence, and navigate uncertainty.

Whether you’re managing a team, negotiating deals, or simply living day to day, cultivating situational awareness can protect you and help you succeed. Remember the advice Fabiana’s father gave her: some things are worth dying for, and for everything else, you need a plan. Build your plan, trust your instincts, and face challenges with purpose.

Connect with Fabiana Lacerca-Allen

If you want to learn more about Fabiana’s work or share your thoughts on Crisis Capable, you can reach her on LinkedIn or through her website. She welcomes conversations and feedback on her book and insights.

Situational awareness is a skill we can all develop. Start by observing your surroundings, listening to your instincts, and reflecting on your experiences. With practice, you’ll become more confident in your ability to lead yourself and others through any crisis or challenge life throws your way.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Fabiana above multiple times.

As I watch the video, listen to the audio and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Learning

This article was created from the video Situational Awareness: Leadership Lessons from Crisis with the help of AI. Watch on YouTube below.

Drawing on the insights of Joanne Lockwood, a transgender woman and seasoned expert in building inclusive cultures, this article unpacks the myths and realities surrounding DEI initiatives. From her early experiences in the Royal Air Force to consulting with global organizations, Joanne offers a compelling narrative and actionable guidance for leaders, HR professionals, and anyone invested in creating workplaces that thrive on empathy, equity, and diversity.

Life in the Royal Air Force: The Foundation of Perspective

Joanne's journey begins in the early 1980s when she joined the Royal Air Force as a young apprentice. At just 16, fresh from school, she entered a highly regimented, male-dominated environment with little room for questioning or diversity. The culture was rigid, with strict adherence to rules and a clear hierarchy. Diversity was practically nonexistent; the majority of her cohort were white men, with only a handful of people of color and no women in her intake.

In this environment, inclusion as we understand it today was not part of the vocabulary or organizational agenda. Racist banter was commonplace, though rarely recognized as such at the time. Joanne recalls a nickname given to a Black colleague, which was accepted without malice but would now be seen through a very different lens.

Gender identity was another complex layer. Joanne describes early experiences of gender incongruence beginning in childhood and how, during her time in the military, there was no understanding or acceptance of transgender identities. In fact, being gay or lesbian was criminalized, and the culture was openly hostile towards queer identities. This shaped a significant internal conflict for Joanne, who had to suppress aspects of her identity to fit into the military mold.

Defining Inclusion: A Feeling, Not Just a Policy

Fast forward to her current role as a consultant and speaker, Joanne offers a profound redefinition of inclusion. She urges us to forget dictionary definitions and instead focus on the feeling inclusion evokes. "Inclusion is how you treat me," she says, emphasizing that it’s about the emotional resonance of being accepted, embraced, and celebrated for all parts of oneself—not just the bits others tolerate.

Inclusion means not having to prove or explain yourself constantly. It is about feeling at ease in your environment, where your whole identity is welcomed without question. This emotional experience is foundational to creating workplaces where people can bring their full selves and thrive.

Inclusion vs. Belonging: Why the Distinction Matters

Joanne draws a clear line between inclusion and belonging, highlighting that while related, they are distinct experiences. Inclusion is about being welcomed and accepted, whereas belonging is about feeling deeply connected to the culture, values, and everyday life of the group.

She shares a personal example of belonging without inclusion from her time in a male club where, despite being welcomed as a former member, she no longer resonated with the group’s culture. Differences in values, interests, and lifestyle—like her decision to stop drinking alcohol—made her feel alienated despite being included.

This distinction has broad implications. Organizations may be successful at ticking inclusion boxes, but if employees don't feel a sense of belonging, their engagement, creativity, and loyalty suffer. Belonging is about cultural fit and emotional connection, which requires deeper organizational commitment beyond policies.

The Corporate Commitment to DEI: Why It Matters

Many companies approach DEI initiatives with varying motivations. Some do it because it’s trendy or for public relations, while others genuinely seek to reflect their values and better serve diverse customers and communities. Joanne stresses the importance of a clear "why" behind DEI efforts.

She challenges organizations to articulate why they want to increase diversity or improve equity. For instance, if a company aims to hire more women or people of color, they must understand that achieving true equity requires deliberate action, including hiring more women than men to change ratios or improving retention rates.

Joanne also highlights the challenge of monocultures—organizations dominated by a single demographic group. These companies often struggle to attract diverse talent because their culture and brand do not resonate with underrepresented groups. "If you were a female-led company, you'd have no trouble finding great female CFOs," she notes, emphasizing the importance of authentic representation and leadership.

Misconceptions and Challenges Around the DEI Brand

The DEI label itself has become misunderstood and, in some cases, toxic. Joanne explains that many associate DEI solely with hiring quotas or affirmative action, fearing that meritocracy is being overridden by identity characteristics. This misconception fuels resistance and backlash.

She clarifies that true DEI work is about recognizing different starting points and providing equitable support so everyone has the opportunity to succeed. It’s not about lowering standards but about leveling the playing field and enriching organizations with diverse perspectives.

Moreover, Joanne points out that some organizations squander resources on siloed identity celebrations without addressing systemic issues, leading to skepticism and calls to cut DEI programs altogether. This highlights the need for transparent communication about the impact and value of DEI efforts.

Conditioning and Bias: The Invisible Filters

Human conditioning and unconscious bias shape how we perceive the world and make decisions, often without awareness. Joanne shares how leaders might struggle to find diverse candidates simply because their mental filters limit their vision of who is qualified or suitable.

This conditioning can be reinforced by algorithms and social media echo chambers, making it harder to break out of ingrained perspectives. Addressing these filters requires intentional self-awareness, education, and a willingness to be challenged.

Implementing DEI in Organizations: A Strategic Approach

Joanne outlines a step-by-step process for organizations embarking on DEI transformation:

1. Understand Your Why: Clarify the organization's motivation for pursuing DEI. Is it values-driven, customer-driven, or reactive to external pressures?

2. Assess Current State: Analyze demographics, hiring, promotion, retention, and pay equity data to establish a baseline.

3. Define Vision and Goals: Paint a compelling picture of what success looks like and set measurable objectives.

4. Create a Roadmap: Develop a plan with clear steps, timelines, and responsible parties.

5. Measure and Track Progress: Use KPIs to monitor initiatives and adjust strategies as needed.

6. Communicate Transparently: Publish goals and progress to foster accountability and buy-in.

7. Engage Across Levels: Involve leadership, middle management, and frontline employees through listening sessions and forums.

8. Build Leadership Commitment: Ensure top executives champion DEI with courage and resilience.

This approach emphasizes that DEI is not a quick fix but a long-term commitment requiring cultural shifts and sometimes difficult conversations, including managing obstructive behaviors.

Leadership Buy-In and Cultural Change: The Cornerstones of Success

Without authentic leadership commitment, DEI initiatives are unlikely to succeed. Joanne stresses that leaders must be willing to confront resistance, step outside comfort zones, and lead by example. This includes acknowledging their own blind spots and seeking diverse perspectives.

She also challenges the notion that physical presence in the office equates to productivity or culture. The pandemic demonstrated that remote and hybrid work models can be effective, and organizations must adapt to diverse ways of working to foster inclusion.

Real-World Impact: Successes and Setbacks

Joanne shares examples of organizations that started well with DEI initiatives—training leadership, developing playbooks, measuring impact—but lost momentum due to mergers, leadership changes, or cultural inertia. These cases underscore the importance of embedding DEI into organizational culture so it survives personnel transitions.

Despite setbacks, Joanne remains optimistic about the progress humanity has made and the conversations now happening around equity and inclusion. She views DEI work as a generational mission, aiming to create a better world for her grandchildren and future generations.

Personal Growth and Transformation: The Journey of Reinvention

Reflecting on her own life, Joanne describes a trajectory of growth, acquisition, consolidation, shedding, and reinvention. Now in her 60s, she focuses on sufficiency rather than excess, valuing time with loved ones and personal fulfillment over material gain.

This personal evolution mirrors the broader organizational journey towards authentic inclusion—shedding outdated models, embracing new values, and continually reinventing culture to meet changing needs.

Practical Advice for Organizations and Individuals

• Embrace Holistic Inclusion: Celebrate individuals fully, not just the parts that are convenient or familiar.

• Foster Belonging: Create cultures where people resonate with values and feel emotionally connected.

• Be Transparent and Accountable: Publish DEI goals and track progress openly.

• Engage in Honest Conversations: Use listening circles, one-on-one discussions, and forums to understand diverse perspectives.

• Commit for the Long Haul: Recognize DEI is a multi-year journey requiring stamina and resilience.

• Invest in Leadership Development: Train leaders to champion DEI authentically and courageously.

• Challenge Biases and Conditioning: Encourage self-awareness and continuous learning to break down invisible filters.

Connecting with Joanne Lockwood and Continuing the Conversation

Joanne Lockwood continues to inspire and educate through keynote speaking, workshops, consulting, and her podcast. For those interested in learning more or engaging her expertise, she can be found on LinkedIn by searching her name or via her websites https://seechangehappen.co.uk and https://joannelockwood.co.uk/

Her work is a testament to the power of lived experience combined with professional expertise to drive meaningful change in organizations and society.

The Infinite Journey of Inclusion and Human Evolution

The pursuit of diversity, equity, and inclusion is not just a corporate trend—it is a vital part of human evolution. As Joanne eloquently puts it, while we have made significant strides over the decades, the horizon of true equity and belonging remains distant. This journey requires each of us to expand our perspectives, challenge conditioning, and commit to generational change.

Organizations that embrace this challenge will unlock the full potential of their people, enhance innovation, and build cultures where everyone can thrive. The truth about DEI in the workplace is that it is as much about heart and culture as it is about metrics and policies—and when done right, it benefits not only employees but the broader community and future generations.

Get the Unfair Advantage I Have

One of the perks of hosting this podcast is that I go through the episodes such as the one with Joanne above multiple times.

As I watch the video, listen to the audio, and write about it, I can’t help but have new insights about the content we covered and deepen my understating of the things we discussed. I have the benefit of coming to this material from different modalities of learning.

But I want to level that playing field for you. I also want you to have the benefit of engaging with this material from different angles without getting bored or jaded. For this reason, I have created yet another experience for you to work with.

Click the button below to engage with this episode in yet another way.

Deepen Your Understanding

This article was created from the video The Truth About DEI in the Workplace with the help of AI. Watch on YouTube below.

“What is the connection between humanities and engineering, Dr. Shurecraft?”

As soon as it popped, the question felt awkward. It had come without a preamble or preparation. I should have probably said “May I ask you a question?” But we had only a few hundred steps to go before we reached the humanities building, and I did not want to miss the chance to ask my question. I was relieved to notice that Dr. Shurecraft did not look bothered with my inquiry.

As we got to the first of the double doors to Humanities Building, which I held open for her, she looked at me and said, "Mars."

“Mars.” I repeated. I stepped in after her and held the second door open.

“What would happen if we all moved to Mars? Do we take all our technology with us?"

Once inside the building, she picked up the pace. We were both running a couple of minutes behind. I scrambled to close the gap.

“Some of it, maybe," I threw out the first thing that popped in my head, a filler. My answer did not matter. I just wanted the conversation to continue.

“But not all of it. We will have to leave the electric grid behind. Most of the automobiles. The Transatlantic Telegraph Cable. The Internet. Who would be using all that technology left behind?”

That's when it hit me. I stopped in my tracks. Dr. Shurecraft kept walking. Just as she opened the door to the classroom we were aiming to enter, she glanced at me. As she saw the look on my face, a satisfied smile lit up her face. She knew she had hit her target. Her work was done.

That's when it hit me. I stopped in my tracks.

I walked past the door she had held open for me. I had to confirm what I thought I had learned. “It's made for humans. All this tech would not have any meaning to it if it were not meant for humanity.”

Without saying a word, she turned towards the front of the classroom and started erasing the blackboard.

I found an empty bench in the classroom and sat down, trying to put words to the insight I had just had. The machines were -- engineering was -- supposed to serve humanity, not the other way around. If we took the entire humanity and transferred it to another planet, all the technologies we have built here on earth would have no use, no purpose.

The curriculum authors knew what they were doing. They wanted us to appreciate the human side of things. They wanted us to understand that the reason for engineering solutions was to solve human problems.

~

When I went to college, I was a weird kid. Even for an engineering student, most of whom were not concerned with what most of the “normal” people were preoccupied with, I was different.

I majored in Electrical Engineering at New Jersey Institute of Technology. As part of our studies, we were required to take some humanities courses. In these courses, we studied subjects like World History, Psychology, Philosophy, Religions of the World and Political Science.

Often, on my way over from one building to the next, I would try to figure out the connection between these two worlds: technology and humanity.

Most engineering students hated having to take humanities classes. They only wanted to study the cool engineering stuff. Unlike them, however, I loved the humanities courses just as much as the engineering courses.

On a typical day on the campus, I would be sitting in a class called Electromechanical Control Systems or Probability and Statistics. Then at the end of that class, I would walk over to the Humanities Building and take a class such as American Political System or Philosophies of John Locke and Thomas Jefferson.

Often, on my way over from one building to the next, I would try to figure out the connection between these two worlds: technology and humanity. I was fascinated by both almost equally, although if you pressured me to pick one, I would pick the humanities.

What Comes First: Humanity or Technology?

A simple insight that seems so common-sense in the hindsight is that technology is there to serve humanity, not the other way around. This simple idea is often forgotten when a new technological revolution like Artificial Intelligence takes the world by storm.

If technology serves no purpose without humanity, we can also argue that businesses are meaningless without the people they serve. A business, at their core, exists to solve human problems or fulfill human needs.

And even if we laid off most of our employees in our business, we will still have to manage some people. If we get to a point where we don’t need to manage any employees and run a mega-billion-dollar business solo like some YouTube AI Gurus have us believe, you still have to manage at least one human being, yourself.

However, the integrating AI into business is not solely a technical challenge; it profoundly interacts with the human elements of an organization.

There is a connection between humanities, engineering, artificial intelligence and business management.

The humanities, with their focus on understanding the human experience, provide crucial insights into the why behind engineering efforts and business ventures. They help us define the problems that need solving and understand the human context in which solutions work. Engineering then provides the tools and methods to build these solutions.

Business management is the discipline that organizes resources, including engineering efforts and technological tools like AI, to deliver these solutions effectively and sustainably to people.

Artificial Intelligence is a transformative force, much like previous technological revolutions such as the printing press or the internet. Its application in business is widespread, from automating tasks like code refactoring and analysis to potentially reshaping entire industries.

However, integrating AI into business is not solely a technical challenge; it profoundly interacts with the human elements of an organization.

Case Story #1: Blending AI Innovation with Human-Centric Business Practices

A Conversation with Jonathan Schneider, CEO and Co-Founder, Moderne

Consider Moderne, a platform that leverages AI for auto-refactoring and analyzing large codebases.

Jonathan Schneider, CEO of Moderne, discusses the role of AI in software development, particularly its use in helping to write new code "recipes" faster. Yet, he expresses caution about letting AI directly mutate code due to the potential for "hallucination" or errors. This highlights the crucial need for human oversight and direction even in highly automated processes.

According to Jonathan, the “intellectual property of many businesses lies in their code”, and ensuring its integrity requires careful human guidance.

"You really have to feel compelled, I think, to bring something into being." ~ Jonathan Schneider, CEO and Co-Founder, Moderne

The human factor is also crucial in how businesses are led and structured, especially in a tech landscape which is increasingly reliant on AI. The "freedom and responsibility" culture at Netflix, which influenced Jonathan, emphasizes trusting highly skilled individuals to make decisions. This approach requires “lean teams of experienced professionals” who can operate autonomously.

Building a successful company culture, as discussed in relation to Moderne, involves establishing a clear identity and values early on, practicing humility, and having fierce resolve to make products work for customers. It's about hiring senior talent by reducing the perception of risk and finding individuals who fit the team dynamic naturally.

Watch my full conversation with Jonathan Schneider below for deeper insights.

Case Story #2: Heart-Centered Leadership and the Human Core of Sustainable Organizations

A Conversation with Bruce Kasanoff, Executive Coach and Author

Beyond organizational structure, one way to explore the nature of leadership is through the lens of "heart-centered leadership".

This approach, championed by Bruce Kasanoff, emphasizes “connecting deeply with emotions and leading with love and passion rather than fear”. This involves self-awareness, understanding motivations, and nurturing a culture of empowerment and positivity.

"It's the ability to be in touch with your emotions, to be able to process your emotions, and to feel as opposed to just think." ~ Bruce Kasanoff, Author and Executive Coach

Leading with heart, though challenging, involves balancing personal values with business needs and embracing vulnerability. It is about controlling one's state of being and approaching the world with love and abundance.

These human-centric aspects of business leadership and culture are essential for creating "high-performing, self-sustaining and scalable" organizations.

Perhaps a take-away from this conversation is that a business cannot truly flourish sustainably without “true human intelligence and heart at its core”.

But don’t let me tell you what to take away from a conversation as deep and raw as this. Watch the conversation below draw your own lessons.

The Enigma of AI Consciousness: An Upcoming Video Exploration

Exploring Diverse Perspectives, Including Nobel Laureates and Leading Scientific and Philosophical Minds, on AI's Cognitive Frontiers.

As we navigate the implications of AI, questions about its nature inevitably arise.

Can AI truly be intelligent, conscious or sentient?

One expert argues that AI, even generative AI, is not intelligent in the human sense of conscious thinking; it processes data from memory. This ongoing debate is crucial to understanding the relationship between humans and AI.

To explore these profound questions about AI consciousness, I am in the process of creating a video.

This video will offer a more fleshed-out discussion, drawing from multiple resources to explore whether or not artificial intelligence possesses consciousness.

One expert argues that AI, even generative AI, is not intelligent in the human sense of conscious thinking; it processes data from memory.

It will include perspectives from two Nobel laureates, my own commentary, a few other references, and a secret, most important person with a deeply scientific opinion.

This exploration is a continuation of the conversation about the nature of AI and its place in a world where technology, engineering, business and humanity are intricately connected.

If there are specific topics or questions you would like me to address in this video, please DM them to me.

‘Till next time,
Bhavesh.