Board Member, Advisor and Recovering CEO
Mudit: You’ve had experience working in large companies like Lockheed Martin and startups. What advice do you have for individuals aiming for leadership roles in their careers, regardless of the organization’s size?
Answer: Regardless of the company’s size, there are a few common factors that lead to success. First and foremost, don’t dwell on potential obstacles or biases. Focus on what you can achieve rather than what’s in your way. Secondly, learn from everyone around you, regardless of their position. Always be respectful and kind, and remember that there’s no value in being a jerk. Finally, maintain a laser focus on understanding your company’s mission, particularly regarding how it provides value to customers. Leadership comes from effectively solving customer problems and improving the company’s ability to do so. These principles apply across different organizations, whether startups or large corporations.
Mudit: How do you see the journey of someone climbing the corporate ladder in a big organization like Lockheed Martin? What distinguishes those who make it to leadership positions from the rest?
Answer: The journey to leadership within large organizations is marked by similar attributes. Those who make it to the top often share a relentless focus on recognizing the company’s strengths and weaknesses and aligning it with the customer’s true needs. The ability to bridge this gap is crucial. A leader in a large company like Lockheed Martin, GE, or Microsoft understands the customer’s demands and can refocus the company in the right direction. Success is not about titles or rank; it’s about understanding the company’s mission, the customer’s needs, and relentlessly working to bridge the two. Those who accomplish this are the ones who reach leadership positions.
Mudit: And let’s say, for example, that the US is a big market for that. Right. So you have a lot of big companies, what do you see, in terms of the software industry, and you’ve probably seen that, what trends do you see? And what is it that people can benefit from?
Answer: Yeah, let’s look at two big trends, and neither of them is a surprise – cloud, cloud, and more cloud. Cloud, by another name, is basically centralized computing. We’ve moved from mainframes to network computers and now back to a mainframe concept. The cloud isn’t just about putting everything in one centralized location. It’s about uniformity in service delivery, pricing, and support for customers. True cloud means building once, selling to many, updating once, updating all, and pricing once, pricing for all. It’s about spreading the cost of software development, support, and marketing over a broader customer base rather than creating bespoke solutions for each customer. So, that’s one key trend.
The second is the prominence of large language models. While I’m not saying models like GPT-3 are perfect, they represent the future. This technology can be a great equalizer, as it eliminates rote programming work and promotes higher-order problem-solving. As engineers, when you embrace this trend, you can differentiate yourselves by listening to the voice of the customer and adding that extra 10-20% to create significant value. Those who grasp these concepts might create the next set of tech billionaires.
Mudit: How do individuals aspiring to become CTOs, CIOs, or other senior roles make an impact in the future?
Answer: If you’re an engineer aspiring to such roles, consider getting closer to product management. Product management serves as a bridge between engineering and sales and marketing. It’s about understanding what features can provide the most value to the customer while ensuring your engineering team can reasonably build them. Learning about product management is crucial if you want to advance. As an engineer, mastering your craft, working collaboratively in a team, and understanding the AI trends can help you stand out. Your ability to listen to the voice of the customer and add that extra value will differentiate you. Those who grasp this may find themselves on the path to becoming future tech leaders.
Mudit: What qualities do you look for in individuals when considering them for senior roles in your business?
Answer: Integrity is my top priority. Background, social or economic status, religion, or other factors matter less than what’s in a person’s head and heart. I value smarts, work ethic, and curiosity. Integrity is irreplaceable – trust is essential. You must be smart, considering we’re in a field that demands it. Work ethic is non-negotiable; hard work is crucial. Curiosity is equally important because it drives continuous learning, adaptation, and customer understanding.
Mudit: Many engineers excel in technical work but struggle with articulation and executive presence. What advice do you offer for improving communication and presentation skills?
Answer: Effective communication is crucial. Seek a mentor who can provide honest feedback about your communication skills or engage in communication training. You want to learn how to communicate succinctly and clearly. Simplicity is often key; as one general put it, “Be brief, be bright, be gone.” Communication skills are essential for engineers as they need to convey their ideas effectively.
Mudit: How significant is business analytics and the application of AI and data science in identifying new opportunities for growth in a business?
Answer: Analytics plays a vital role in understanding a business’s performance and potential for growth. Analyzing data using AI and data science can help identify new growth opportunities and areas where efficiency can be improved. For instance, improving KPIs and efficiency metrics can help reduce costs, enhance profit margins, and drive growth.
Mudit: In comparison to e-commerce or products from tech giants like Apple, cybersecurity products sometimes lag in user experience. What are your thoughts on this discrepancy?
Answer: Cybersecurity products have historically been geared toward IT professionals, where user experience took a back seat to functionality and security. However, this is changing as the industry recognizes the importance of user-friendly interfaces, especially as consumers and individual users take a more active role in cybersecurity. Improving the user interface in cybersecurity products is becoming more important as technology evolves.
Mudit: When evaluating potential business opportunities, where do you recommend starting, especially when considering software products?
Answer: Start by understanding your pricing power and value proposition. Consider whether your product is a commodity or differentiated and whether you have the ability to set prices effectively. Once you have a clear pricing strategy, focus on key areas: engineering, sales, and customer success. These are the three pillars for success. Efficiently allocate resources and ruthlessly cut overhead, such as G&A. Your growth and the ability to retain customers and maintain EBITDA are critical metrics for software companies’ success. The “rule of 40” is a guideline to aim for: the growth rate plus EBITDA percentage should exceed 40. This is commonly used to value software-as-a-service (SaaS) companies.