We are kicking off a brand new series called Visionary Executives. There are a lot of cool leaders out there that are doing really interesting work and bringing people in business together in a way that everyone wins.
So, today, we start this series to talk with executives the leading edge stuff they're doing and what you can take away from that, either as an employee or as an executive yourself.
And we're stoked to start with Alan Whitman, the former Chairman and CEO of Baker Tilly. Alan's known for being a progressive leader. But what we we're interested in is how he was able to balance business results (he 3X'd the firm during his tenure) with the people stuff (he was voted #1 Advisory CEO on Glassdoor).
We cover the big stuff: WTH do CEOs actually do? How DID he balance results and people? What's critical for CEOs to nail?
...to the elephants in the room: Should CEOs make as much money as they do? Should they take paycuts over layoffs? Are most of them pathological or cool?
This is an inspiring conversation with a leader you is equally so.
More about Alan.
Disclaimer: This podcast is for informational purposes only and should not be considered professional advice. We are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. The views expressed in this podcast may not be those of the host or the management.
Thanks for listening!
Hey! We love new friends! Connect with us!
We are kicking off a brand new series called Visionary Executives. There are a lot of cool leaders out there that are doing really interesting work and bringing people in business together in a way that everyone wins.
So, today, we start this series to talk with executives the leading edge stuff they're doing and what you can take away from that, either as an employee or as an executive yourself.
And we're stoked to start with Alan Whitman, the former Chairman and CEO of Baker Tilly. Alan's known for being a progressive leader. But what we we're interested in is how he was able to balance business results (he 3X'd the firm during his tenure) with the people stuff (he was voted #1 Advisory CEO on Glassdoor).
We cover the big stuff: WTH do CEOs actually do? How DID he balance results and people? What's critical for CEOs to nail?
...to the elephants in the room: Should CEOs make as much money as they do? Should they take paycuts over layoffs? Are most of them pathological or cool?
This is an inspiring conversation with a leader you is equally so.
More about Alan.
Disclaimer: This podcast is for informational purposes only and should not be considered professional advice. We are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. The views expressed in this podcast may not be those of the host or the management.
Thanks for listening!
Hey! We love new friends! Connect with us!
When I was early on in public accounting, you always knew the people that were going to be successful because they were pukers.
Speaker 2:Huh what.
Speaker 1:Like grow up in a trash can before. No, what's a puker? A puker is somebody that feels like they're going to puke when something goes wrong. They care.
Speaker 4:Well, guys, welcome to your Work Friends. We're your two HR friends, I'm Francesca and I'm Mel, and we have no filter, but we're getting you through all this work shit. And today, mel, what are we talking about?
Speaker 3:We are kicking off a brand new series called Visionary Executives. There are a lot of cool leaders out there that are doing really interesting work and bringing people in business together in a way that everyone wins, and we wanted to start a series that started to highlight those folks and talk about the things they're doing and what you can take away from that, either as an employee or as an executive yourself.
Speaker 4:Yeah, there's nothing like talking to people that are at the tippy top of the seats and making these big decisions, so we're excited to kick off this series with Alan Whitman.
Speaker 4:Alan Whitman was a chairman and chief executive officer at Baker Telly US, which is a top 10 CPA firm, and the reason why Alan's a really interesting person to talk to is threefold. One Alan was the CEO of a top 10 accounting firm and if anybody is familiar with accounting, you know how volatile that industry is, not only from a business side, but also from a people side. People just really don't want to go into accounting as much as they used to, so it's a sticky situation. The other thing is during his tenure, he 3x to the business, which is huge, and at the same time, was able to have a number one employee satisfaction and CEO approval rating from Glassdoor of the top 20 advisory firms. So here's a guy that is in a volatile industry, 3x his business and also had the people saying we love this guy. So we wanted to talk about how the hell did he do that? How the heck did he balance people and results, and he did it in a pretty interesting way.
Speaker 3:Absolutely, and you don't want to miss this episode. So here's Alan Whitman.
Speaker 2:Hey Alan, how are you today?
Speaker 1:I am fantastic, great to be here.
Speaker 2:Where are we finding you Today?
Speaker 1:I'm in Atlanta and it's a sunny, warm day in Atlanta. A little cool in the mornings but nice and warm in the afternoons.
Speaker 2:So I'm not anywhere where it's snowing, which is great, kim my wife says that it's snowing back in Michigan, so I'm glad to be here. Yeah, I heard a friend was up in Ann Arbor at University of Michigan, so I'm glad to be here. Yeah, I just I heard a friend was up in Ann Arbor at University of Michigan and said it was snowing. So I'm like, yeah, that doesn't sound fun. So it sounds like you're well located.
Speaker 1:I am, and I'm going to Florida tomorrow night.
Speaker 2:Yeah, but you're a native of Michigan, right Since 1996.
Speaker 1:Yeah, I grew up in New York and Cincinnati. I lived in Detroit as an adult but since 96, I met my wife there and my kids are from there, so I'm from there.
Speaker 2:Yeah, you are. You are a Michigan.
Speaker 1:I'm not a U of M fan unless I'm with my wife or my mother-in-law. I'm still a Cincinnati Reds fan and Indiana Hoosier fan, although the Lions were a lot of fun to watch this year.
Speaker 2:Oh my gosh, I loved how Eminem totally got behind it. A big fan I am. I lived quite a long time in Columbus, ohio, which is home of the Ohio State University.
Speaker 2:Understand the not liking the blue. I went to liberal arts college, so I don't have any skin in this game Anywho. Anywho, alan, we're here today. I'm excited to talk with you. I want to talk about the role of a CEO. It's not very common for us to be able to talk to leaders that have led global billion-dollar organizations and we want to know all about it and what it's like. What does it feel like? What do you do? What does your dailiness look like? Are you the type that gets up at 4 am on the Peloton? That's the vision everybody has, right. So that's what we want to uncover with you today is what is the world of the CEO? And, probably more importantly, is what do you think the world of the CEO? And, probably more importantly, is what do you think the world of the CEO should look like as we're going into the future? So we have a few questions we want to go through with you today. How does that sound?
Speaker 1:All right, let's roll, I'm ready.
Speaker 3:We'd love to hear more about your journey to CEO. How did that happen? Tell us about it.
Speaker 1:Yeah, as both of you know, I'm a public accounting brat. I grew up in the big eight, 6, 5, 4. Went to a few smaller firms Tax guy by background and really never had the plan. I never had the professional life plan. I just always trusted that things would work out. And when I joined Virchow Kraus which is the firm that became Baker Tilly just by a names change, I had a great opportunity to lead this thing called International services and I had no idea what it was about, really had no idea what it was about, and my predecessor had no idea. His idea was it's yours if you want it. I said what is it? He goes I don't know, you'll figure it out.
Speaker 3:And.
Speaker 1:I did. We figured it out Before that I had just. I had great mentors, and so I wouldn't be where I am or wouldn't have had the opportunities without great people looking after me and helping me. And look again, it was. There was no plan to be the CEO of Baker Tilly. The plan was to do great work, build great relationships, build trust with the people I work with and have a lot of fun doing it.
Speaker 1:I'm not a guy that's built on a lot of structure. I'm not a rules-based guy. I'm more of a principles-based guy and I do like to wing it and I have trust that it's going to work out. It's not that I have so much trust in my abilities that I'm going to just crush everything. I just have trust in the system that if I do the right things, everything will work out. Some would say that I'm oblivious to the outside world. I don't know, but that's how I was.
Speaker 1:And I remember I was in a bus heading to a partner retreat and we knew we were going through a succession plan process and a former partner of mine leaned over and said, hey, you should put your name in to be the next CEO. And I laughed. I'm from a small practice, I'm new to the firm. And she said listen, everybody trusts you. You're not here to build your own practice. You were here to help everybody, including her me, as she said. And I think you'd be a viable candidate because the partners trust you, that you're here for them and for us in total, rather than trying to pad your own performance or your own book of business, et cetera. And so I said all right, I'll put my name in that.
Speaker 1:And one thing led to another a lot of testing, a lot of interviews, et cetera. And I still remember the day I walked out of the last interview. I remember that day. And then I remember the next day when I got the call and I found myself as the next CEO of Baker Tilly and it was like wait, what just happened? And then I could talk to you about the journey as the CEO. I think the ability to visualize the future of what would we build the organization to. I'm not so sure I knew how to do it yet, but I certainly knew what I wanted to build and what the foundational principles of my candidacy. And they took a chance and I think it paid off. We did remarkable things. We everybody did remarkable things in that eight-year run.
Speaker 3:Yeah, yeah, it sounds like there's definitely that light bulb moment. It wasn't about you establishing a practice. It was about switching what your role is completely. What exactly is the role of a CEO?
Speaker 1:What's the role of a CEO? I think, above all, the role of a CEO is to enable the team to do more than they think they can do and to do things they're not even aware of doing. So pulling them together for a common cause and achieving twofold, threefold, fivefold, x-fold the amount of outcomes and deliverables and performance and accomplishments compared to what they think is possible. You both know that I don't ask binary questions. Can we do this, can we do that? I ask the question. What will it take? And so it opens the mind to the art of the possible. And so, above all, there's all sorts of different things strategy and acquisitions and communications, client connections, et cetera. Those are the how, the what, in my mind, is innate pulling people together for a common cause, a vision, a mission, and engaging them to believe they can do more than they thought they could. Engaging them to believe they can do more than they thought they could and, in turn, providing that pathway and the ingredients to do just that.
Speaker 3:I love that You're bringing that visionary role to folks. You're making them feel like they're a part of something larger and you're also really building up their confidence in a space where they thought they might not be able to do it, which is really exciting.
Speaker 1:Confidence in a space where they thought they might not be able to do it, which is really exciting. A successful CEO is somebody that enables people to have a little bit of blind faith. If he or she thinks I can do it, or he or she is totally committed to this, let's go. Let's go on the journey that she or he is describing. In my opinion, the most successful CEOs are the ones that can paint the picture of tomorrow when maybe not everybody understands even what today's all about. They come on that journey with you and they have blind faith that I trust him or her and all right, I'm going to follow, or I'm going to ride shotgun, which is even better, or I'm going to lead, which is even better.
Speaker 2:It's interesting. You talk about vision. Marcus Buckingham wrote the One Thing you Need to Know, which is what differentiates good from great leaders, is the ability to paint a vision and get people behind it. So much of that is on trust and the compelling nature of the vision, the doable nature of the vision, where it has a little bit of I don't know if we can do this, but I think we can. You talked about trust. What makes you so good at trust? Like, how do you get people to trust you? How have you gotten people to trust you?
Speaker 1:Look part of it is what have you done prior to becoming the CEO or the leader?
Speaker 1:Yeah fair done prior to becoming the CEO or the leader? Yeah, fair, do you have credibility? That's the first and the second in many facets, francesca, it's being able to tell a compelling story, to not wither in the face of adversity. And if you have adversity, how do you deal with it? Don't go too high, Don't go too low, don't get too excited, don't get too down. Don't get too excited, don't get too down. Building a compelling narrative. Look, words matter, the story matters, and so having a great right-hand person to help you take your crazy ideas and organize them and build them into a compelling vision that's believable, even if it's crazy.
Speaker 1:You separate yourself from reality a little bit and you dream. And so, look, communication is a crucial skill of any senior leader, a CEO being able to communicate. And that's with words, with emotion, with heart, eye to eye, being relatable, not demanding things, but working together on things. And look, I always thought that I was Alan, who happened to be the CEO. That's how I communicated. I'm just Alan. Yes, I'm the CEO. Yes, I probably have more experience than you.
Speaker 1:You know, our family's a big fan of the movie Ratatouille. Our kids grew up watching it. It's a great flick about anybody can cook. Guess what? Anybody can be a CEO. Now, there's got to be some things that happen in your career, but it's not out of the realm of possibility, and so I was just Alan. I am Alan and it happens to be the CEO. I was on a personal level with people while at the same time, being their boss, or their boss's boss, or the steward of the organization, and so being willing to be relatable and being a person first. Yeah, you get the job, of course, things you do, but you're still a person.
Speaker 3:Yeah, like that the job, of course, things you do, but you're still a person. Yeah, like that approachability piece, vulnerability as a leader. You weren't the Wizard of Oz hiding in your tower and that probably made a huge difference. How do you think the role of a CEO is going to shift in five years, 10 years, with how business is changing? Like what might be different in this role in the future years, 10 years with?
Speaker 1:how business is changing, like what might be different in this role in the future. Just think about technology and automation and how much is going to be accomplished artificially. The stakeholder groups have never been as numerous as they are now. There's so much influence on business from the social part of humankind that the stakeholder groups have become numerous and, frankly, as I was the CEO, I was always concerned that there's going to be another stakeholder that came up on Monday or Tuesday, but we had to consider that stakeholder and so, look, business has never been as fast as it is. If Friedman wrote, the world is flat, you can use that title to describe a lot of things in today's day. Right, everything is flat, nothing is compartmentalized, everything is blending and bleeding into the other. So that's a really hard thing. I think CEOs are going to have to continue upping their game in what to communicate, when to communicate and how to communicate.
Speaker 3:Do you see organizations moving to being increasingly more transparent? As much as they can be, of course, but do you see a change happening there?
Speaker 1:I think there's already been a change Now. I think that, done poorly, it can blow up in your face. Yeah, right, we've seen that recently in some very poor communications about some very sensitive subjects. And, yeah, I do think that people expect more transparency. But it is interesting. Is it transparency or is it inclusion? That's the that's a big question, right? Is it transparency that you got to know everything because you can't know everything, right? Or is it better said inclusion in a lot more of the how the sausage is made or how decisions are made, et cetera? Look, you can't include everybody in decisions. I wrote about a recent post I put up on LinkedIn. You can't. So you've got to find a way to make people feel like they're part of the subject, they're part of the decision making process or the project, so they feel like, as much as they can, they're engaged. I think that is a big expectation of people today.
Speaker 2:You talk about the power of communication. I'll tell you look at what's happening. We're still looking for Kate Middleton with the idea, Honestly which, by the way, went down a massive rabbit hole with that. But it really goes to prove that when you have poor communication and or no communication at all from an entity or a leadership position, people will make up their own narratives, and you don't want that as an organization, right? You want them to be clear.
Speaker 1:You just wonder. You're like, who in the world is advising them?
Speaker 2:A thousand percent.
Speaker 1:And you know that they've got advice, whether it's legal advice or Tom's advice or PR advice. But I remember something just happened recently the university presidents when they went before Congress. I remember I was listening to that and I felt so bad for them just because of the situation they were in. That's got nothing to do with what I believe in, so we'll leave that aside. And I remember calling my good friend saying who the heck's advising them? Even I know that whatever they were communicating was done poorly. So you just wonder how are things being missed so wild?
Speaker 2:Yeah, joking aside, we're seeing it front and center, which, by the way, will be a Harvard business case tomorrow because it's just awful.
Speaker 2:I have a theory that when the queen mum died, the whole place just went downhill. That's just my whole thing. But you see it there. You see it happening in businesses and companies too, right, especially as some of these corporations are moving through things like mass layoffs or less than desirable business results, and some of the tone in which employees are feeling the conversation is changing internally and externally is really nailing communication. Well, and, by the way, we know how to do this. It's always just so fascinating, to your very good point, when you're like who the hell's advising them? Because they're biffing it, and they're biffing it really hard.
Speaker 1:I've got a saying listen, you're not going to like this and it's okay not to like it. I give you permission because some of these things that I'm about to tell you I don't like Knowledge butchered in.
Speaker 3:I don't like Knowledge is a turd in the room.
Speaker 1:I'm asking you, you don't have to like it. I'm asking you to respect it. Yep, and what I find is if you give somebody the permission to not like something, it doesn't make them like it. It just kind of deflates their balloon because the emotion it's like he's not going to fight me, he's not going to argue with me, he's not going to engage in that. No, I'm okay with you not liking it. There's a lot of stuff that people won't like and there's a lot of stuff that I guarantee the CEOs themselves don't like. There were decisions.
Speaker 1:I had to make, or I made, or I agreed with or endorsed that I didn't like, no question about it.
Speaker 2:And they had to be made and I respected them and I asked the people to respect them. You're framing that as you're not going to like this, but this is where we're going to have to go. Takes it in a direction of what do we do now? Let's get into solution mode, or how do we collectively handle the situation, as opposed to getting into the emotions of it, which can be time consuming, and listen. I think everyone has to go into their hidey hole of emotions and do all that shit, but the reality is we need to move, and that's a nice way to frame it.
Speaker 1:The reality is, the decision has to be made because it's not going to go away just because we don't like it. Right, let's get on with it.
Speaker 2:Yeah, productive about it yeah. You talked about communication being a really critical piece for a CEO. That, to me, is someone who is really looking out for people and wanting to have a conversation around people. But you're also running a business, and you're running a global, multi-billion dollar business and you need to get business results. How do you, as a CEO, balance the need for wanting to put your people and your business results on an equal playing field? How do you do that?
Speaker 1:Yeah, you spend a lot of time thinking about it. You spend a lot of for wanting to put your people and your business results on an equal playing field. How do you do that? Yeah, you spend a lot of time thinking about it. You spend a lot of time debating and designing and redesigning. I had a wonderful professional coach who was a little bit of a therapist. I would say. I don't know if she would want me to say that, but she did act that way because, getting through these conundrums is hard.
Speaker 1:You know what it needs to be, you just need to figure out how to get there. Look, I know people didn't like some of the decisions I made and I'm sure some of the people said he's not a people person. Look what he did here in the instant on the micro and I tried to use both and versus but for either or a lot. I can be the people person and I can make those hard decisions and trying to get people that were the but of the hard decisions to realize that it's in the best interest of everybody. Here's an example.
Speaker 1:I was reading Reed Hastings' book no Rules Great book.
Speaker 1:He reminded me in the book that you need to be transparent and you need to really get to the people and if somebody is not right for the organization, make the decision and move on.
Speaker 1:And it reminded me of a decision that I put off for five years and I look back and said, gosh, darn it. I wasted five years of this person's professional life because I was trying to be too nice, I was weighted too much to I need to do what's right by the people when in reality doing what's right for the person was to be honest with the person five years ago, and as much as we think that we're not nice to people when we make hard people decisions, you may actually be being nice, being genuine, helping them out. So it's not a binary you either are or you aren't. There's a middle ground there. So, look, I thought a lot about how to reimagine the organization, knowing that people would have to move out of their current role because the organization had passed them by and we needed to redeploy people. And that is a really hard thing to do, probably one of the hardest things, because there is emotion involved.
Speaker 2:Et cetera, relationships, everything, all these people yeah.
Speaker 1:And was I good at it? I don't know if I was good at it. I think that the organization's success would probably conclude that, yes, we got it right more than we got it wrong, much more than we got it wrong. But I wouldn't suggest that I captured the flag on that one. It's a constant struggle. You mentioned all hands or the live cast that I love those just adored those. I love the time with everybody because I was just again just let's be myself and that did empower me. Frankly, it did build trust and it was just so much fun that we could just be people and we're all in it together, and titles weren't part of those events there are a lot of organizations that talk about.
Speaker 2:They're either people first or they're very people-centric. They're there for their people. You've obviously sat at the well, at the tippy tappy of the table where you're making decisions financial decisions, strategic decisions around investments in people. And I'm curious if we could flip this, because you know what this takes from an insider perspective, working with boards, working with the C-suite running an organization. I'm Jane Doe of ABC Company. How do I know? What are the tells that my company really walks the walk on being people-centric?
Speaker 1:Features is not being people-centric, actions is being people-centric. I remember talking about development plans and I came up with the analogy of if you buy an outfit off the rack, okay, but it doesn't fit well, it doesn't hang well, you may have to have it tailored, but if you buy a bespoke or a tailored suit, it feels really good and you're on the top of your game. I was reminded at one point hey, alan, in today's day nobody gets tailored suits anymore, so your analogy doesn't make any sense. I'm like okay, got it, okay, fair. But the point I was trying to make was people-centric organizations have to come to the people rather than say we're going to get pet insurance or we're going to give you the 25 healthcare membership. Those are all features.
Speaker 1:What if you put dollars to direct one-on-one development programs, coaches, how are you helping me? Or how are we helping you, francesca, at this company, become a better person and professional? You, it's not going up to a buffet and you get to choose what you pick. No, you're going to pick off the menu and you're going to actually pick the meal you want and it's going to be made to order for you. There's plenty of buffet style development and learning and development platforms, etc. How do we build something that is bespoke, tailored and it's not 100% of it? 80% can be buffet style and the last 20 is really focused on the person. And look, we do that for executive coaches. That's a bespoke program, sure do. Why are we doing it through the organization? If I had a coach when I was a senior, I'd have been a much better professional.
Speaker 2:Why don't organizations do that?
Speaker 1:Well, I think it's a pretty progressive platform. I think it's a pathway that requires a lot of confidence and trust. It's expensive, it's expensive yeah. And I think that I don't know. I'm going to say this and I'm going to get ridiculed for it. I wonder if people work to the mean Like do you get the?
Speaker 2:degrees, Alan. Is that what you're trying to say?
Speaker 1:Yeah, yeah, yeah, yeah, I, Francesca. It's a great question. I don't know why people would say it's impossible. Why do this? Why not? We can't do it. What would it take to do it? What would it take to put a program like that in place?
Speaker 2:It's a doable. I think I agree with everything you're saying. It is a trust, it's a vision, to your very good point A lot of times because people haven't seen it. They're typically a long game. They're not something that you can turn in a quarter and see results a lot of times, but those are the things that are so meaningful.
Speaker 2:And this is what I really struggle with is when we're doing these like quarter by quarter, needing to see results, needing to see results, how can people fight for the long tail stuff, the break the mold stuff that really truly changes and shifts industries?
Speaker 1:I was just working with my colleague on an article about intentionality and my belief now in coaching or in tailored development programs. We all hear professional athletes have coaches. Yes, and you can see the difference. Because they're higher up on the leaderboard, they win more tournaments, they can shoot a better percentage. Whatever it is On the professional setting, as you said, francesca, it's the long game.
Speaker 1:I don't know if you can associate a win or this to the coaching. Maybe you can, but it's less direct, it's less cause and effect. The coach helps the golfer putt better, so on Sundays they make more putts, they win the tournament. Versus building somebody as a professional. I can tell you from experience the people that I've engaged in coaching and I've pushed to coach are much better as people and professionals, much more aware than they would have been or they were prior to. So I think most think that's for the athletes, because there's a grade right, you win, you lose, you move up. I think we can learn a lot from sports or from other professions. And so, look, I think it's massively expensive. But you know what? So are all the campuses up in the Silicon Valley, the open campuses. Those things are massively expensive.
Speaker 2:Yeah, real estate's not cheap.
Speaker 1:Right, and so is it all making people better professionals or is it allowing them to work in a better environment? Now, some would say working in a better environment will make you more productive. Okay, I'm not going to argue that I don't know the data on that. What if you took all that money and you put it back in developing Mel and Francesca to be better people, more spatially aware?
Speaker 2:Less smart ass. There's a lot of benefits here.
Speaker 1:I don't like that. I like that part of you, so I would not put that in the program.
Speaker 3:That's your sassiness, I appreciate it.
Speaker 3:I couldn't agree with you more, alan I've always believed in coaching and to both of your points that you don't necessarily see ROI in the first quarter, the second quarter, it just becomes part of your organization's culture that everyone gets a performance coach. All the people stuff is where the problems happen at the leadership level, starting at managers and above. So if you're addressing that when someone's first coming out into their career, it's going to get them light years ahead of other people who don't have that. So when they're at a manager level, you're not trying to suddenly jam down their throats milestone programs to make up for all of the care and attention that they haven't yet received.
Speaker 3:Beautifully said, we've talked a lot about things that make people feel valued and respected, empowered in the workplace. You talked about inclusive practices, transparency, as much as you can have that, but make it really. It's like acknowledging their emotions, speaking to them human to human level. What are other things that CEOs can do or leaders can do to foster an environment where people really feel valued, respected, like they have belonging and meaningful work?
Speaker 1:Certainly accolades and awards and the at a gal, at a boy comments. Yeah, to me the thing that got people really jazzed was the idea that they could connect with the CEO one-on-one, the idea that they knew the CEO was looking out for them and was looking to put them in different places, move them around, cared about their career. They felt part of the ingredients that were going to make the strategy reality. And once you get them bought in, they're bought in. As hard as it is to get them into the, into the room, if you do it right, it's equally as hard to get them out of the room and to have them turn away. Now, if you're a jerk and you're really not trustworthy, of course you can ruin a second, but I I had some colleagues that were just so sold on it because we activated their need for belonging and being part of the solution. I had people coming up to me and it wasn't to brag, it was. They would come up to me and tell me about all this stuff we're doing and how this is working and that is working, et cetera. It had nothing to do with their performance, they just wanted to share it. That's when you know they're in, they're so far. In Fine, you go tell the people about this. This is awesome. I don't need to be the conveyor of the good news.
Speaker 1:You mentioned culture, francesca. I'm a big believer that culture should change. It's a living organism. It should not be the same today as it was yesterday. It should continue improving. It can deteriorate, but if you're doing everything right, it will continue to change. You Build new cultures over time. It's just critical for leadership to empower, to push more. Sit beside people and watch them.
Speaker 1:I remember when I called a client service partner and I said hey, we want you to come lead this practice, because she was stuck in a practice. She was doing great, she was a partner, she was doing great. But I saw something in her, just like my predecessor saw in me. I called this person, said we want you to lead this and she said you realize I'm an audit partner. I have no idea about that.
Speaker 1:I said you don't need to know about the technical aspects. We've got plenty of people that know the technical aspects. I need you to lead it and I have every confidence and will be right there with you to lead it. And she's like, okay, I really don't know what I'm going to do, but okay, and she's crushed it. There's dozens of examples where I would go into the system One because I like to shake it up, I like to get people rustled up to go do other things, but then I brought them out and boom, they became people that they never even thought they'd have the chance to become. It's a big thing of culture, trust, empowerment, and that's where people get really engaged with wow that's really cool.
Speaker 3:He is for the people and someone believing in them. A big common red thread throughout all of your stories is not just the trust people have had in you, but your belief in them really empowered them to do it. You're advising and coaching a lot of CEOs now, but if it's a new CEO, they've never done it before. In the position you were in many moons ago, like how am I going to do advising and coaching a lot of CEOs now, but if it's a new CEO, they've never done it before. In the position you were in many moons ago, like how am I going to do this, knowing what you know now? What would you advise them to do right away in this space to establish a?
Speaker 1:good culture. Trust your gut as much as numbers don't lie. Numbers aren't the only thing that you should be focusing on. Be willing to take a chance. We know who good people are. We always say that she has the it, and if the square peg doesn't have to fit in the square hole exactly, which is my example a minute ago this may sound a little crass. You can teach technical skills. You really can't teach the it. You can teach technical skills. You really can't teach the it. You can polish the it, you can bring the it out, but you can't really teach it.
Speaker 3:Yeah.
Speaker 1:And when you see somebody that has it, give them a chance.
Speaker 3:Yeah, what is it the X?
Speaker 2:factor. Is it X factor? Is that what we're talking about?
Speaker 1:Yeah, the X factor, yeah yeah, when I was early on in public outing, you always knew the people that were going to be successful because they were pukers.
Speaker 2:Huh, what, okay?
Speaker 1:Like grow up in a trash can before. No, what's a puker? A puker is somebody that feels like they're going to puke when something goes wrong. Goes wrong, they care and your belly gets all tied up and some people probably do puke. I don't know, but is the person a puker or not? The person that's a puker, I'm going to work with that person because that person cares and gets it Part of the X factor, versus the person that just hey, okay, we'll try again tomorrow.
Speaker 2:When you think about the people that have the X factor are the people that care enough to get nervous enough to get anxious. And yet earlier in this conversation we were talking about why don't organizations do this in macro right, in terms of caring about their people? It's because they're going towards the mean. It's because they're operating as in C's get degrees as opposed to getting the pit in their stomach and really caring. It's an interesting hilarity there. The puker story absolutely is staying in. We talked about this earlier. Like speed of business, we're in an election year. Ai, inflation, stagnation, boards, you name it. The amount of stuff and the amount of stakeholders that any CEO in any organization has to deal with is nuts, honestly. It's evolved massively, it's way more than it used to be, and it's only going to get more complex. I am curious about what are the hardest parts of this job. When you think about sitting in that seat, does the puking stay? This is what I'm wondering. Did you ever hurl as a CEO? That's what I really want to know.
Speaker 1:Did I ever hurl as a CEO?
Speaker 2:No, and I'm not even going to say I curled up in a ball and sucked my thumb. I've done that, maybe not as a CEO. Anyway, I had a ball and sucked my thumb.
Speaker 1:I've done that, maybe not as a CEO. I didn't. Anyway, I had a lot of sleepless nights.
Speaker 3:Yeah.
Speaker 1:I had a lot of waking up at 2.30 in the morning with junk driving in my head or I'm not performing, I'm not performing. Look, I talked to my coach about this. I'm a big believer.
Speaker 1:Everybody's got imposter syndrome no matter how successful we are, we all have it. I have it sure, okay, I admit it. And so I had a lot of waking up at two o'clock in the morning and never go back to sleep, and that was part of the job, because my head was swirling. I had a lot of puking experiences, not literally, but where I was all balled up in my gut because I had such a dilemma or I had such a challenge. One was when COVID came about right, plenty right. Others were when earnings were not where they needed to be, and what are we going to do with compensation and bonuses for everybody? There's all sorts of making.
Speaker 1:One of the biggest moves I had to make, which was a personnel move. It took me four months to figure out how to do it. I remember exactly when I figured it out. I was on a plane from Detroit to Asia. Kim was sleeping next to me in the little pod and it just over Washington, where you live, francesca, and I figured it out, but it took me a long time. So, yeah, I had a lot of knots in my gut over the course of the year. Okay, I have gray hair. You can see I have gray hair.
Speaker 3:Now I didn't have gray hair when we met. Think of presidents.
Speaker 1:To your question, francesca people and the relationships that ensue, that will never go away. That's really hard Because, at the end of the day, no matter what business you're in, there are people in the business. It's a huge part of every ceo's routine anticipating what's next, not missing something. He always fretted that I was going to see a headline on the front page of whatever or an email, that something happened and I totally blew it. I just wasn't paying attention.
Speaker 1:I wasn't worried about delivering good service because we had great people at the organization. I wasn't worried about delivering good service because we had great people at the organization. I wasn't worried about executing the strategy of the firm. Once we got everybody to a place where they believed in the strategy, which took about two years, once everybody was on the train, I didn't worry about that. I knew people, knew how to run the business and knew how to do what we needed to do. It's everything else. It's the ability for me to keep elevating my game in the firm's game. It was not missing something. It's not seeing around a corner and the people aspect of things, because every decision affects people, no matter what it is. It affects people, yeah, and so that was a huge part of it.
Speaker 2:It's interesting to hear you talk about that, because we talk to employees leaders all week, every week Mel and I do and it's very similar to what we hear from them around their own craft, their own work. I was thinking when you get to a C-level, there's one of two things that happen. If it's me, I'm probably just puking my guts, which is totally fine. I love the fact that you still hold that level of care and that level of curiosity. There's this other, where there's this perception, too, that some CEOs are like have you heard this? That a lot of them are like pathological. Have you heard this? That a lot of them are like pathological.
Speaker 2:Have you heard this? Yeah, yeah, you roll in these circles. Do you find that more people are pathological or they're more in the care? What's the split? Are we talking like 20, 80? What's going on here?
Speaker 1:Oh, I think there are a lot of CEOs that are misjudged.
Speaker 2:Oh interesting, Tell me more.
Speaker 1:And look, I'm misjudged too. I've got a hard outer shell, no question about it. And if you don't know me, a lot of people think I'm a jerk. When you get to know me, you realize I'm really not a jerk, yeah, and I'm going to get things done. Look, you've got to be pretty confident, even if you have imposter syndrome. You've got to be pretty confident, pretty bold, to lead an organization and lead a journey. You got to be pretty bold and you got to be pretty tough. Now I do know there's plenty of people that are crazy.
Speaker 2:Yeah, at all levels in the organization.
Speaker 1:To be fair, believe me, I've met some of them, so it's yeah, but I think there are more that are caring than people give credit to.
Speaker 2:I like that, I like it?
Speaker 1:I really do. There's a CEO in the CPA profession there's a couple of them One that's got a bad rap and personal friends with him, and he's the nicest guy in the world and he gets a bad rap. And I can see why, because it was out of shell, but he's as caring as they come. And so the old adage okay, does the media do that to you, or is it real? I don't want to throw the media under the bus. People come up with their own stories.
Speaker 2:Yeah, people come up with their own narratives. It does go back to. One of the keys here is to be a great communicator. Fair enough, and not that you need to be like happy joy all the time, but communication. This is one of the reasons.
Speaker 3:You're in such a unique position too, I think, as a CEO, because every day you're in a position where you have to prove yourself to so many different people, day in, day out, over and over and not that others don't need to do that in their positions and I do think that there is a little bit of a uniqueness in that role where it's like the pressure of that has to be intense yeah, look more than anything.
Speaker 1:All the eyes are on you right.
Speaker 1:I remember when I became a partner I was told look, every, all the eyes are on you as a partner. Yeah, but it's not 6,000 person organization but in a hundred person team or whatever. I'll give you a story. I remember I was late to a meeting. I ran in and my coach was there. She was observing a lot of meetings for team effectiveness. I wanted her there to help me with the team effectiveness of the senior leaders of the organization Very helpful.
Speaker 1:And so I run in and I want to get the meeting started. And so I go get a plate, want to get the meeting started. And so I go get a plate to lunch and I'm standing up eating and she's watching me and she pulled me aside before and she says what are you doing? I'm like what do you mean? I'm eating. She goes think about what you look like. They're all looking at you and even if they're not there, they're seeing you way out of control. And so again, in that little instant, you realize, holy moly, I might have gone backwards a little bit. And to your point, yeah, you are being looked at and even if you're not being looked at, you should not act like an idiot. And at that point, I was acting like a knucklehead. Slow down, sit down, eat. One, two more minutes isn't going to kill us. It was a good lesson.
Speaker 2:There's this concept of shadow of a leader, and when you're at the top, all of your shadow casts over here, and even if it does something as simple as eating in front of people and giving the perception of we're not even going to spend time to sit down and eat, that's all stuff you have to consider and it's all part of the gig, right, and I don't know if people get that. Oh yeah, you've got a persona. I have no question about it. Mel and I were talking about this on the pod the other day. There is no one on the face of this planet that has led through what we're about to go through no one. And there's no playbook. I'm quite sure when you became a CEO, someone didn't say Alan, here's the CEO 101 book, number one and number two. You're in a context that has never existed before To me. There's a little bit of no one knows what the hell the answer is. There is no answer necessarily. It's just what are the choice points and how are you going to move through it?
Speaker 1:So I'm advising a firm that has grown very quickly, that's exciting.
Speaker 1:Yeah, it's wonderful. And the CEO brought me in to talk to the board and one of the comments he made is he did what we want to do. He led a firm and then he admitted to his board. He goes I've never run a company this big and I've never run a company that's bigger than this. Now he has, and so one. I gave him a lot of credit for realizing that he doesn't have all the answers and he's willing to take input. He doesn't follow my advice all the time but and he listens but to your point he's never run a company like this. And it's interesting. There's this concept. I don't know where I saw this be like this and it's interesting. There's this concept. I don't know where I saw this, but gradually. Then suddenly, gradually they grew. Suddenly they're a half a billion dollar firm. Gradually they're going to be a billion dollar firm. And if you're not focused on what's happening gradually, you won't be prepared for suddenly.
Speaker 2:You talked earlier that you live by a set of principles, and when I think about companies that are in hyper growth, leaders that are in unprecedented times, how important are a core set of principles in leading oh, I think they're critical One, because it will demonstrate consistency to your stakeholders.
Speaker 1:If you communicate appropriately, it will be the foundation to everything you do, because they'll know the type of person you are.
Speaker 3:Yeah.
Speaker 1:And it won't be just haphazard, it'll tie everything together. So I think it's critical.
Speaker 2:Yeah, yeah, I've been thinking about that too, just like when I look at some of the best leaders and the best strat and the best comms, like there's this undercurrent of principles that run through it and you can even make mistakes, you can make, you can biff, you can eat in front of your C-suite, right. There's like from small, something like that very small to. We made an investment in this company and it was a stinker. Oh, move on. You know what I'm saying. There's a lot of forgiveness or elasticity in the culture when you do that.
Speaker 1:Look, if your stakeholders know your principles, know what you stand for, whatever you want to say it, they'll understand the reasoning and they'll understand that these decisions were made with the right principles in mind or at the core. And again, not everything goes perfectly, but at least they'll understand why the decision was made, or how it was made, or what was made upon, etc.
Speaker 2:Yeah, and that's inclusion to your point yeah.
Speaker 3:All right, Wow rapid round. Well, this was meant to be fun, Alan, hopefully. Okay. Is it lonely at the top?
Speaker 1:Doesn't have to be.
Speaker 2:Good answer. Family Feud Good answer.
Speaker 1:I think, look, you need to surround yourself with a lot of people, and they don't have to be people that work for you. You can't tell things to everybody, and if you surround yourself with the right people, have the right advisor, even internally. No, it's not lonely at the top. I wasn't lonely.
Speaker 3:You have your community.
Speaker 1:I really wasn't. I thought I was very connected to a lot of people and I engaged them as I could, but no, I wasn't lonely.
Speaker 2:Can I ask a question? Did you have someone that would say, Ellen, that's nuts or no, you're absolutely wrong.
Speaker 1:Oh, yeah, yeah, more than one. Some I gave permission to do that and some I didn't, or some did it before. They asked for forgiveness. Yeah, and I wanted that. I don't have all the answers. So, yeah, I wanted people to say, hold on Really, but now I push back. It would push back. What would it take? Why not?
Speaker 3:They keep you honest and help you out by your blind spots. Yeah, yeah, would you recommend that your kid become a CEO?
Speaker 1:I would recommend that my kids figure out what they wanted to do every day. Yeah, and I won't tell them to shy away from being a CEO if the opportunity presents itself. And I won't tell them to shy away from being a CEO if the opportunity presents itself. But the only way you're going to become a CEO, unless you start your own company, is if you're really good at doing what you want to do, because it takes head and heart and don't shy away from it. I didn't like me, I didn't plan for it and it's very rewarding and complicated and pukey and you know all these things.
Speaker 3:Okay, Hot topic item CEO compensation. And not every CEO is paid $30 million a year, but this is a hot topic in the news these days. Do you think CEOs should be paid as much as they are?
Speaker 1:All right. So I'm going to apologize to my mother because she told me don't answer a question with a question, so I'm going to play around here. If you're going to ask should CEOs be paid what they are paid, then should athletes, should movie stars should? Where does it stop? Now to your specific question. Yeah, I do think they should be paid a lot of money because look at what they're overseeing, Look at what they're stewarding, Look at the effect that they have and the multiplier effect that they have, whether it be for careers, whether it be for the public product or services. That doesn't happen by chance and if you think about skilled athletes, their careers are, on average, much shorter. They're taking a huge risk. In my profession, you take a huge risk when you become a senior leader because you give up your binky, your comfort, you give up a book of business.
Speaker 3:Yes, if they're performing, they're performing they're making such the effect that commands a significant top level. I'm going to move, then, to layoffs, because I think there's a connection here to your point. You mentioned that if they're performing they should get that layoff. What's the best way for CEOs to show accountability during a layoff?
Speaker 1:Layoffs are caused by a number of different things. They could be caused by a company not performing, bad strategy, bad execution. They could be caused by a pandemic. When I was leading the firm, we didn't do layoffs for a few years and I took the most significant cut in pay because I didn't want to take layoffs. I didn't want to execute layoffs. I didn't think it was the right thing to do in light of what was going on. So I don't think it's a one size fits all answer. Having said that, I would think that performance pay would be adjusted in situations where workforce had to be reduced because of an environment. I don't know if that happens all the time, yet I would think that would be. There would be an and to that. There were layoffs and senior leadership didn't make the money that they made the year before.
Speaker 2:It's so interesting because you see this in the news where layoffs are happening, earnings are through the roof. Some of that might have been through efficiencies with layoffs, and a lot of these C-suite executives are like crickets we take accountability but they don't tell you how, and so they may be taking these cuts. But again, going back to the red thread throughout this whole conversation that you keep coming back to, alan, which I think is amazing is communication agreed.
Speaker 1:I I think that there should be more communication around that. I think that there should be some how to the what of accountability. How are you going to take accountability?
Speaker 2:No.
Speaker 1:I'm convinced that if people were more communicative around that you don't need to give exact numbers, but you can give directional comments Right, there wouldn't be a withdrawal from the trust bank. Yeah, yeah, look at times, layoffs or rifts or whatever you want to call it. It's a necessity because of the business. I realize the employees are, the team members, are integral to the business, and this might be one of those things that you're not going to like. The business is a persona, as a being itself, too.
Speaker 2:Yes, yes, corporations are, yes, they are. Yes, yes, corporations are, yes, they are.
Speaker 1:And unfortunately people get caught in the squeeze. So the only way to at least make it understood, not agreed with or not liked or respected is, yeah, better communication.
Speaker 3:Even you taking the pay cut before having to pull that lever to try to do everything you absolutely can goes a long way with employees when they see that or hear that. Is there a CEO?
Speaker 1:that you admire and, if so, why. You know there's a couple of people I admire. They're both males, so I apologize for that. I think Ed Bastian at Delta has been fascinating. I fly Delta all the time. I love their customer service. I love what they stand for. I love his messaging. He seems to be a CEO of the people. I do think he came out of the public accounting world, which is pretty cool. I also like Jamie Dimon.
Speaker 2:JP Morgan.
Speaker 1:Yeah, I'm not anything like Jamie Dimon, other than there's some similarities. He says it the way it is. He's very matter of fact, he's very you're not going to like this, and that's some of the principles that I live by, so that's where I'll stop the comparison. I think he's great. I think he's just a real, true person and I've heard he's a real person outside the ropes. He's just a dude that happens to be the CEO of JP Morgan and he's crushed it. He's just done so well. There's so many others. As an addendum to this question, I love reading books by leaders, not leadership books, necessarily, books by leaders. I want to know their story. I said read Hastings' no Rules and David Cody and the book by Imbolt, and there's just so many books that I've read because I want to know their journey. I want to know how they did it and the stories are fantastic and I learned from them, and so the idea of passing it along through a book is wonderful. But those two I admire quite a bit. I really enjoy watching them.
Speaker 3:What's the best leadership advice you've ever read?
Speaker 1:I don't know if this is leadership advice or not. There's a book it's called Extreme Ownership.
Speaker 2:Yeah, yeah, jocko.
Speaker 1:Jocko Willick and in there. There's a lot of great stuff, but the one that I find myself using a lot in my coaching and helping teams and leaders get their shit together is discipline equals freedom. People think that discipline or structure ruins entrepreneurial spirit or it ruins. No, if you're disciplined in what you do and you set the plan and you execute it, it does allow you to have some freedom on the edges. So let's build that plan as opposed to just being all over the place, and it does allow you to have some freedom. So I like that From my point of view, just as my advice is read the books by the people that came before you. So read books by leaders that have been in the seat. It's amazing how much you learn. I was never a big reader as a kid by now. I can't stop.
Speaker 2:I love reading it's so nourishing, right it is it is alan, it was awesome to talk with you today. Thanks so much for joining us. Yeah, thanks for being here, friend.
Speaker 1:My pleasure. This is a great venue. I wish y'all luck in the world and I'm really humbled by you asking me to join you.
Speaker 4:Thanks so much for joining us today, mel. We're back with new headlines next week. Yeah, yeah, we are All right. In the meantime, hit us up on TikTok, instagram, linkedin and YouTube at yourworkfriendspod and Mel. What else can they do?
Speaker 3:Email us at friend, at yourworkfriendscom. Send us a message, folks. We do reply.
Speaker 4:We do reply. All right, Bye friends, Bye friends, Bye friends.