Brandon Sawalich Knows You Can’t Commoditize Caring

Starkey President and CEO, Brandon Sawalich, sits down with Dave to discuss why Covid erased any doubts that hearing is essential, how Starkey never stopped innovating during the pandemic, industry challenges and opportunities, the Starkey Expo, and why focusing on the patient has been a key to our success.

Link to full transcript

Transcript

SPEAKER_00 0:02

Welcome to Starkey Soundbites. I'm your host, Dave Fabry, Starkey's Chief Innovation Officer. Our guest today is Starkey's very own president and CEO, Brandon Swalic. And he joins us to kick off one of the most important months for us here at Starkey. May is Better Hearing Month.

SPEAKER_01 0:18

So thanks for having me, Dave. It took four or five months for you to invite me on, but I'm glad to be here.

SPEAKER_00 0:22

Well, you know, we had a lot of very important guests to get through first, but uh no. You've had a lot of great content, but uh but this is now the pinnacle. And so thank you for joining us today. My pleasure. We we want to the just consider all of those other ones, the warm-up act.

unknown 0:36

Trevor Burrus, Jr.

SPEAKER_01 0:36

I've done a lot of other podcasts waiting to get to you.

SPEAKER_00 0:39

Yes, you have. So um you know, we do have a lot of ground to cover.

SPEAKER_01 0:43

Yeah.

SPEAKER_00 0:44

And um first of all, let's start with uh Happy Better Hearing Month. What does that mean to you?

SPEAKER_01 0:48

Aaron Ross Powell Connecting people. I mean it's bringing awareness to overall hearing health, ear health, however you want to look at it. You and I have had many conversations, and it gives us uh a reminder to have those conversations to people, not just in our industry but outside.

SPEAKER_00 1:03

Yeah. And I think that's really the intention is to just raise awareness for the importance of hearing.

SPEAKER_01 1:08

Especially during times like where people are there's confusion on what what the hearing health care model is.

SPEAKER_00 1:14

Aaron Ross Powell Well, let's dive right into that because I mean certainly uh you know the la we're coming out, hopefully. Uh the last couple years have uh been very different for veterans to this industry like you and me. And uh one of the issues that was rather controversial when COVID first hit in March of 2020 in the U.S. uh. was whether or not hearing is essential or not. It was a real touch point. And remember, I mean, we had had uh the launch of at that time, Livio Edge AI, in Las Vegas in January, and we had no idea uh what was going to happen. The worst thing that we thought in 2020 was that OTC was gonna disrupt our industry. Right. And boy, were we wrong.

SPEAKER_01 1:53

But we were way off. Because I remember us walking off the stage and you felt the energy because people were excited about the technology and they knew who they could help, and they were thinking of patients, and you know, we were having the great conversations, and then what, a month later we're having unimaginable conversations and not knowing what's gonna happen the next day.

unknown 2:12

Trevor Burrus, Jr.

SPEAKER_00 2:12

Well, and really having the agility to be able to pivot. I mean, we had a we had a launch, a series of launch training events, face-to-face events, and those quickly first had to pivot. Uh talk a little bit about that. I remember the conversations, and initially people were wondering, how am I gonna stay in business? Uh in many of the states in the U.S., uh. If you're listening in the U.S. and you're a professional, um, you know, they were deemed not essential services at first in some of those states.

SPEAKER_01 2:38

Right. And that was where the education came in because I think over whether it was a week or two weeks of the isolation and the quarantine, the lockdowns, and you know, whatever the uh uh country and state called it, uh we were in sort we were all in survival mode. We were all in an area of unknown chartered territory. And you started hearing the talk track of, well, it's you know, it's just a consumer device, or it's just amplification. And what we saw and started hearing is our, you know, the practices were closed, and you know, because we didn't understand what was next or how to protect the patient or each other, but our phones uh continued to ring and the calls became more and more by the week because there were consumers, patients calling in. Yeah, and patients wanting hearing help because their hearing aid stopped working or wax or you know, just the basics, and they needed to be connected. And then we came out of it right two months later, and we were working with our customers, working with our patients, and then our customer service calls increased, so we know that offices are opening back. And it was a light bulb for many that, especially outside the industry for our uh the government and areas of uh federal government, state government we were talking to, the hearing is essential because they couldn't hear the TV, they couldn't hear just talking to somebody on the phone. And a lot of people uh had the motivation to, okay, if they haven't done something about it, we saw they did something about it. And the people that were uh used to being connected and needed that as a lifeline, uh they had to do something about their uh hearing aid and getting that fixed. So we've got innovative, right?

SPEAKER_00 4:19

Yeah. I mean we started by pivoting really to look at what programs were available to help uh practices uh weather the storm uh in in those areas where they they really saw initially when everyone was really so uncertain and afraid to go out in public and go into clinical and health facilities or private practices or retail offices. And I think in Q2 of 2020, uh our industry was off by about 80 percent, a lot of uncertainty over that that we faced, and certainly our customers did, and then the patients. And then I think having our chief health officer that you had the uh foresight to bring uh Dr. Arkel Giorgio on board, uh. I think her role initially was just instrumental, but very different than what you thought you were going to bring it on. Yeah.

SPEAKER_01 5:03

And yourself and and Dr. Burdak and even my role is you you come together as a team and and I talk about innovation, and you know, you're the uh very creative thinker, and you're the you're an innovator by instinct. And we never thought we'd hear curbside service. I mean, this the stuff that we were doing to at least keep the build a bridge until we can get out of whatever you know phase we were in to start getting face to face with people. Then we got into education on how to set up your office and protect the patient, protect yourself. Uh, you know, Sarah and and you and and Dr. Arkel and myself, and we all did whatever it took, and we educated and did the best we could.

SPEAKER_00 5:41

Yeah, and by the end of the year, I mean it it really felt like we were gaining steam. You know, obviously we we still had all of 20. If if 2020 said, I'm gonna be the worst year ever, 2021 said, Hold my beer. And uh, you know, and and and and it continued. But but I think in a way, and I would never say there was a silver lining out of any of this, but it did stress the importance of hearing as a as a vital and fundamental way that we stay connected with each other. I would also argue that uh 2020 and 2021 became the year of telehealth, and it taught professionals uh in many ways that when they couldn't see the patient face to face, they could still maintain uh care and connection with their patients using telehealth. And we had to adapt to that as well.

SPEAKER_01 6:24

Trevor Burrus And adapting is really we reminded ourselves, because you how long you've told me, how long has telehealth been around, and we've talked about it and 1994.

SPEAKER_00 6:32

I did my first remote programming, you know, and it hid in plain sight for 25 years. Trevor Burrus, Jr.

SPEAKER_01 6:37

It did, and for all companies. I mean, you know, we have our uh uh audiology group that it takes calls from consumers and customers and helps with remote programming on a daily basis, but we had to pivot and make that more robust so it was more for uh direct for the consumer and the patient that needed the help instantly. So it reminded us. It's like this is here. And I remember thinking from April to May, and you said 80 percent, you're close, it was actually over 90 percent our industry just plummeted. And I remember thinking, I never want to feel like this again. And what I mean is not from the dollar stand, it's like how how do we need to innovate and not be blockbuster, you know, just be comfortable being comfortable. We had to be comfortable being uncomfortable, yeah, and then we had to focus on our priorities. And priority being your new priorities, the new normal, yes. I mean, tell her here, um, how we're gonna work and how we talk with patients, um, you know, the uh extra level of service, whether an office was closed in a region, you know, we uh worked with the customer from the phone, but also, you know, got permission to work with the patient directly as we needed to just to continue that service.

SPEAKER_00 7:45

Yeah, I mean I think if the biggest buzzword over the last two years was you're on mute, uh the the the second uh phrases were, you know, we're all in this together. I mean, we we we we started really by coming together, and and I would say maybe we need that now too, um, but then moving into the new normal, whatever that new normal is going to be, where the sort of the three big catchphrases of the last two years.

SPEAKER_01 8:08

I think we define the new normal. I mean we were you know learning to live with it. Um as you said, 2020, uh yeah, it was a uh it was a rough year for many businesses. 2021, kind of you said, hold my beer. Um, and you know, we went in with a plan, and then you know, everybody has a plan until they get punched in the face. Yep, and they came back and we got punched in the face and we had to continue to adapt. But now I think for what we're doing as an industry and as Stark and from around the world, we've been reminded the importance of uh better hearing, the what's important for the patient, and really we've it's refocused us. And I said I've said many times, and and you're right, there's a lot of the new normal and all these catchphrases that we've we really don't want to hear again. But it's refocused us uh and recentered and got our priority straight.

SPEAKER_00 9:02

Yeah. So on on that, then what for you personally, what's the thing that you missed most uh about uh the industry, the profession, the old way of doing things? What's the thing that you've missed most for the last couple of years?

SPEAKER_01 9:17

Oh, the same thing you would say. It's uh virtual. I don't want to I mean it's okay, and I think it's it's uh taught us that there are other options, but it's it's the in-person events. Yeah. You know, I think Starkey is is Starkey who we are, and one of our values in what we do is getting that face to face with our customer and you know, that relationship, that brainstorming, you know, whatever you want to call it, and just even the employees. I mean, the employees that give you energy. We uh went remote, full remote uh with our employees here mid-March and like within a day. Okay. And really until recently, you know, I've you kind of feel isolated. It's I've been here alone. A lot of people have been here alone, and you don't have that, you know, that uh camaraderie, the collaboration that has made Starky Starky, or our industry is all about people, and you're wearing masks and you can't see people smiling, right? So and there's fixes for that. We've learned to adapt with it. But for sure, it's the human interaction.

SPEAKER_00 10:15

Yeah, and I think you said it. The the human interaction uh on campus with the people that we're used to working with and the incidental conversation and ideas that you get, that you the the stimulation you get from running into people uh as they're going to the lunchroom.

SPEAKER_02 10:29

Right.

SPEAKER_00 10:29

Then uh the really Starkey has thrived on uh the the motto of uh treating our customers better than anybody else. And and really that opportunity to get with them. The reason we say that is not that we're it's not because we're whining and dining them, it's that we're we're engaging with them and getting ideas because I think I've been the beneficiary as often as the teacher, as the benefactor when we're with our customers, because I learn so much about patient care and clinical best practice every time we get together with a class.

SPEAKER_01 10:57

And I learned from you. I mean, you and I can have we have great one-on-one conversations just by running into each other in the hallway. Virtually, you you it's it's planned, right? And the teams meetings and stuff, there's a place for that. But I think now it's a it's a mix and uh and a hybrid. I love talking in front of audiences just like you because you believe. You get energy. And I for me, I feed off the crowd, meaning, you know, I want to make sure that I'm educated and providing, and I believe in what Starkey's doing and where we're going. Doing that in front of a camera, um, you know, you've done it probably more than I have, um, but I've done it quite a bit in the last two years, and I've had to learn, you know, how to come across and have that energy where you know I feel like I'm a weather man. Right, we joked about Ron Burgundy. It's the Ron Burgundy effect, right? You're looking at a camera, you're showing that passion and that energy, but there's nobody there.

SPEAKER_00 11:49

You get nothing back from the room. Right. Because there's probably one or two people in the room in total in those early days.

SPEAKER_01 11:55

So it's hard to feed off of that, but we've learned and we've adapted. And and uh I feel it from Starkey's standpoint are virtual training classes and what we've done, what we provided for education. And even here, what we're doing, I mean, we've adapted and we're providing good content, and we're doing it a different way where people could get more content and more education uh faster.

SPEAKER_00 12:15

Aaron Powell Yeah, and and I'll show my okay boomer moment for the day. But you know, there used to be they'd say long distance is the next best thing to being there, but it's a long ways from being there. Yes. Um and and so I guess what you're saying is uh for the rest of 2022, giddy up is that uh we're gonna we're gonna be back engaging and looking forward to engaging and keeping safe um with with our customers uh because that's that's really people want it. That's how we learn, that's how we grow.

SPEAKER_01 12:42

And I I know that we have done a great job of you know, number one priority, keeping our employees and patient and our customers safe, and we will we monitor the numbers and you know, we know what region is what based on um the daily uh cases and stuff. But now we're coming in time where as long as it is safe, our plan is, as we kind of say scorched earth, is get back in front of our customers and get them excited. I mean, I'm I you know I've talked to a couple state uh meetings uh here in the last month. You know, you and I are talking at uh at some uh meetings coming up. It's exciting. I mean, before it was it was exciting, but it felt like, well, that's responsibility.

unknown 13:23

Yeah.

SPEAKER_01 13:23

But now you're like, that gives me energy.

SPEAKER_02 13:25

Yeah.

SPEAKER_01 13:26

And I you know, do I want to sit in a room and go on another Teams meeting? Yes, I will, but that doesn't give me energy. It's part, it's it feels like that responsibility. But getting in front of our customers, you know, you and I both don't.

SPEAKER_00 13:37

We fit feed off each other with it. It's the number one thing that I've missed. And so I'm looking forward to whatever that new normal is, and maybe we learned uh to not take that for granted this time.

SPEAKER_01 13:50

I think we did. You're right. That's a good way to put it. I've never thought of it that way where oh, it's another, you know, a regional class, or it's a class up here, or we're you know, doing another conference in uh Las Vegas or LA or another type of regional, and we took it for granted.

SPEAKER_00 14:04

We got those interactions are precious, and I will never take them for granted again because you never know when the rug gets pulled out again and we're we're back in front of a screen.

SPEAKER_01 14:13

We're back. This year plan is everything's safe. Starkey's going, you know, we're going all in and get in front of our customers and providing good content and really reconnecting those relationships and reminding them uh who we are and understanding what they need more importantly, and that we're meeting those needs.

SPEAKER_00 14:31

Well, and as usual, we dove right in, but now I want to back up just a minute and talk a little bit about you know your history in this industry. You've been you've been doing this since you were wet behind the ears. And um uh talk a little bit about your journey, uh your journey within the industry, within Starkey. Uh just many people don't know your background.

SPEAKER_01 14:49

Uh I come from Southern Illinois, a small coal mining town. And my uh parents uh started uh in 1983. My grandmother, my mom's mom, who is still vibrant and loves and who loves this uh industry. Hi, Mimi. Um, you know, she started in 1959. She opened her own business, and she was an independent female practitioner in 1959. She couldn't get a loan. Her dad had to sign the paperwork for the for the bank because they wouldn't get loans to uh uh you know women who wanted to open business. And it was to me, it's just uh I can't even imagine. And she was successful, she loved the business, and then she got my uh mother into it and uh had a miracle franchise actually in 1983. And then uh as far back as I could remember, I was been around hearing aids. Now, was I gonna be in the hearing aid business? No way. I wanted to be an astronaut or something really, you know, uh uh uh a police officer or you know, something where it's always been about either helping people or exploring. And I kind of fell into it, really a summer job, right after my first year of college, and I started starting in 94. My first uh job was in the uh all make repair and buffing ear molds and old old hearing aids, and then got into sales. And I've pretty much done almost every job except uh maybe build a hearing aid for several months. I've built the hearing aids, but in manufacturing, but from I've worked the receptionists to you know, many of the people that might watch this, they remember remember me picking them up at the airport or Mall of America. So yeah, I I have a passion and I uh you know what fuels that passion this day?

SPEAKER_00 16:32

You've been in this now for 20 years? Uh 28 years. 28 years, time flats. Reality distortion filter. Tell me about that. And uh it gets worse. It gets worse. Yeah. But uh uh but so what what causes you to get up with that same excitement and enthusiasm today that you did 10 years ago? Or does it?

SPEAKER_01 16:52

Oh no, it does. It's it's you know, for me, it's about the people. So I think about the patients and the people we help. We've all been, whether it's on uh uh uh Starkey Hearing Foundation mission, the Starkey Care's program, uh been in a customer's offices where you see those hearing smiles, so you make that impact. Um our customers and the the people of Starkey that drives me because the worst thing for me is if I feel that I've let them down and it's not a job for me, it's a responsibility. So I feel that responsibility and I respect it. And that goes with uh Mr. Austin, you know, he's trusted me, uh as I said, with his baby. Uh and you know, everybody uh, you know, the rumors of Starkey's gonna sell or we're gonna go public, or it's never been a conversation, not once. Because Starkey is Starkey for the right reasons. And to me, it's not about being the biggest. You know, you go get market share and and uh uh it's not healthy market share. Market share is market share. You do a good job individually for the customers. I want to be the best. Quality service, best products, and then whatever happens, happens. We treat employees well, and we've got the best of the brightest here, obviously like you. Oh, absolutely. Um, but that's what fuels me is the people. It's not it's not my resume or you know, uh my title. What I learned quick is my younger years, and I see this, and we all see this, it's like, what's my career path? Oh, I want this title. Am I a senior uh director or senior manager? Am I manager manager? Because once you get that manager title, you're like, Oh my god, I've made it. And it's for the wrong reasons, is what I've learned for myself. So I've got the title of president and CEO. I work for the people of Sarkey. It's a title. I've got to do the job and I have to help them be successful because if I'm not, that title doesn't mean anything.

SPEAKER_00 18:42

Yeah.

SPEAKER_01 18:43

It doesn't mean because you'll, you know, if you you got results and success, because if you're successful, the team gets the credit. That's the way I look at it. If there's a big problem, I promise you I know who everybody's gonna be calling or be looking at. And that's you know, I feel that responsibility.

SPEAKER_00 18:59

So with that responsibility, what do you see as the biggest challenges? You know, you know let's set COVID aside. Sure. And let's just say it's it's the new normal and all of that. What do you see as the biggest challenges ahead from here? Ourselves. Explain.

SPEAKER_01 19:14

I would, you know, we have visions and uh ideas and we know the patient. It's staying focused because you've got a lot of great people with passion all over this company. And you know, you you hire for culture and and caring attitudes, and you develop the talent. So you get a lot of people that come in, and Starkey's hires some, you know, we've hired a lot of great new people in minds, which I'm all in favor in the last five, six years, innovative minds that help us, you know, move further by keeping them focused, right? And keeping the company focused because it's that bright shiny object. Right? We're working on better hearing and what we've done with Livio, and then now evolve AI and you and I know what's coming next, right? So we have to get, you know, do what we uh our core business and who we are, accept it, focus, and deliver. Yeah, it's the noise that comes into play where oh my gosh, we should be doing this or this or so-and-so company did this. I don't, you know, for me, it's not about what our competition does because they're good, they're gonna do what they do anyway.

SPEAKER_00 20:22

Well, there's a sign that hangs out in the uh by next what used to be my office long ago. What did it say?

SPEAKER_01 20:27

It would, you know, don't lose sleep over the competition, make them lose sleep over you. Right. They're gonna play their game. Starkey plays uh its game, and we stay true to who we are. You know, the noise about OTC, right? Oh my gosh, the industry's going out of business. We better pivot, we've got to sell you know direct to the consumer. And and that's from you know, uh it's common sense thinking when you hear all the articles, and whether it's wired, whether it's uh uh Wall Street Journal, even our own industry publication, and it creates clicks and it creates you know different thinking, but you and I both know that's an evolution and a glacial process. You're not just gonna because it's not about the product, right? It's about the you know, the the role of the professional and the interfacing of the ear and the personalization of that sound for that person. And it's keeping the team focused on the priorities, not because of uh they're wrong and they're thinking, it's the education and making sure we do what we say we're going to do and close it out, and then we move on to what we feel is best for the patient. And that's Starkey, and I've heard this as long as I've been here. Our priorities are what's best for the patient, is best for our customer, is best for Starkey. It does not go what's best for uh the stockholder, what's best for Starkey, then the customer and the patient. We're absolutely backwards, and that's where Starkey's secret sauce comes into play on why we can do what we do and who we are.

SPEAKER_00 21:58

Yeah, you've been very clear on. on that issue is is that you know nothing wrong with publicly traded uh uh companies, but you've been very clear on with us as a privately held company, our focus can remain on the customer and event and uh ultimately rather the end user. Yes. And that's a different relationship than what occurs in a publicly traded company where the focus is often on the shareholder. Trevor Burrus And that's the business. That's their business. But our game is to stay focused on the end user. I think you know we've we've often in this industry been painted as not being focused on technology or the end user and all of that in that the uh large consumer electronics companies will come in and save us from ourselves. Trevor Burrus Lumber, Johnson ⁇ Johnson 2000, right? Trevor Burrus Yeah 20 years ago, more than 20 years ago.

SPEAKER_01 22:43

Trevor Burrus You and I could go down memory lane and name Sony, you know, the Sony's the Panasonics, Bosch and Long. They've all tried. They've dabbled.

SPEAKER_00 22:50

Trevor Burrus And I think you know what ends up happening is people often coming in from outside of our discipline and I welcome the competition. I want to be very clear about that. Welcome anything that increases adoption of hearing aids by people. Right now we're sitting at a third of the people who have hearing loss in the U.S. do something about it. If that if if accessibility and affordability was the only solution, then even in those countries where hearing aids are provided at no additional charge outside of their taxes, it would be more than 50 percent. And it's not.

SPEAKER_01 23:21

And since 1974 Starkey has had the Starkey Fund, we established the Starkey Hearing Foundation, and to this day we have now Starkey cares and other means of giving hearing aids away to people that can't afford it. We've provided access to how many over what 70 countries around the world and groups through the Starkey Hearing Foundation. And you and I both know what's the number one thing why people don't get hearing aids? It's a stigma. Aaron Ross Powell stigma Yes. Yeah.

SPEAKER_00 23:48

And and the issue is is I think the people looking at this from the outside saying, oh my gosh, look at all this opportunity and people working in this haven't figured it out. But but I think in a way where people have stumbled is they've looked at the technology or the initial fitting as we're looking at self-fitting devices, thinking of that as the finish line. But it's the starting pitch it's the start of the it's the start of the process and any professional knows that in that first year when the patient is getting used to the to the technology, to the sound, to the care and feeding of these devices, they have many more appointments related to the follow-up and the acclimatization of the device than strictly to the fitting. And the the fitting itself is the beginning of that journey.

SPEAKER_01 24:34

Everything it's everything patient satisfaction right now is 88 percent right 88 percent. Trevor Burrus That's why when we hear and see you know these um councils and committees formed in Washington DC and others where you know they're talking about affordability and access and over the counter and and you look at who's talking and the experts and the voices of authority and I respect their their work but how many of them have fit a patient in the last year or even six months or had that experience right or ever. Yeah exactly so the over the counter has been a great platform and a motivator for me not out of emotion or anger or I'm afraid of it. It's how they're painting our life's work and people's life's work that are listening, watching here because we know the truth and nobody's taken the time to sit down with the you know experts in our industry or voices of authority like we know this we welcome right competition the competition and it it pushes you right how many times you and I talked about innovation and ideas because somebody was thinking this or we saw this you can't stay flat footed because you will be like blockbuster. You have to continue to push yourself and to me if the industry is disrupted by a competitor or a new competitor it's great. Then what's the innovation what are we going to do? How do we get better?

SPEAKER_00 25:56

And we have to continue to push ourselves or it's going to be a slow, slow miserable I look to be doing this for a good long while yet and and like I said and every morning I get out uh get out of bed and and and charge in because I still think you know I grew up in the culture where in and in it in when I was at Mayo they said the needs of the patient are the only needs that matter. That's the same thing that Bill is focused on and it cascades through the organization from what Bill and Tanny have done and established whether it's uh you know in in establishing the the Starkey cares program. Talk a little bit about that.

SPEAKER_01 26:32

Well if you Bill started Starkey because he wasn't getting the service that he was getting he expected for his patients because he saw in their eyes what hearing and better hearing could do. Back in the 19 you know he started 1961 in the 60s and 67 he started his own repair lab. Fast forward to today you know it starts with caring. If you're if it's about the transaction or the money then you're I'm sorry you're gonna be you could be successful or you're gonna be fulfilling. It depends on the personality but how long are you in it? People are the bottom line of business. And if you go with that approach and for our uh uh being private you know we still operate as it's 1967 but we continue to innovate how we do things and help more and more people I mean our announcement Starkey cares with the Special Olympics yesterday that was a reminder for all of us because after two years we had you know March 1st we had people back on campus and you know and you know the levels are low here but that feeling we've known it but kind of like with the classes we took it for granted. Yeah and everybody got goosebumps. I mean I saw tears in people's eyes as we were listening to Tim Shriver and and the and the athletes get up who all genuine with their stories and telling us how you know hearing has connected them and you know uh was Nell got up and gave a speech incredible uh on what it means because she wanted to get a speech because it gave her confidence and the employees in there and the team members the veterans and the I'll say the newer new hires the the team uh they were reminded and then they witnessed what we've been talking about for two years but we haven't been able to do.

SPEAKER_00 28:17

Yeah.

SPEAKER_01 28:17

So it doesn't change. It's it starts with caring.

SPEAKER_00 28:20

Well and I think to be in that room versus to be online is a different experience. Oh yes. And and to be able to see the athletes stand up and point them out and turn around as Dr. Shriver had them point to people saying I can't do it without you and you and you. And I think that's the testimony you know that you do get when you're working clinically and you're working sitting across the table from a patient or in the booth with a patient and seeing the impact of our technology and everybody has that story. Yeah and it's really you know I think still what drives is our technology in the professional's hands deliver that delight, that 88% satisfaction, that net promoter. And like I said, I absolutely welcome the competition that comes from creating new channel streams for people who are capable technically of doing self-fitting and that over-the-counter but I also think and I also know that many patients want access to that latest technology but they don't yet feel comfortable doing it themselves and they can't do it as well as the professional can. But the key is you can't commoditize caring.

SPEAKER_01 29:25

No you can't commoditize it and that's what with over the counter hearing aids you know it's there's been more you know in the past but every once in a while like oh you're against it we're against it. No we're not because we built the products they're trying to really deregulate and provide more access.

SPEAKER_02 29:42

Right.

SPEAKER_01 29:42

We want it done right and we're concerned about the reputation it's going to give hearing aids because you and I both seen oh$99 hearing aid and then somebody buys it it's not what they expect and then we're all labeled. Right. And then you know the product and and the service and what hearing technology is has a different reputation or you see something at a drugstore you just pick up pick it up off the shelf okay one out of maybe 10 or might be satisfied or they use it but it's not what you know they're trying to portray hearing healthcare as a commodity right oh we're lowering the cost of Hairy gates. Well it's not like you know trying to paint us like big pharma trying to lower the cost of a a pill it's not even it's it's apples and oranges. They talk about eyeglasses you and I have talked about you get eyeglasses out of the uh pharmacy. Well eyeglass innovation really hasn't changed in 200 years. No. And there's 10 components in an eyeglass to put it together eyeglasses and there's 308 components in in our hearing aids today.

SPEAKER_00 30:42

Trevor Burrus 308. That sounds like Rain Man. Well I do I know you know exactly how many you get challenged. I get challenged on or asked about the issue as well that people don't understand is that with eyeglasses for most people who have what I've refer to as front of the eyeball kind of you know just they need refraction but they have an otherwise sensory system that's pretty healthy. Yes. It's a different process. You can be corrected to 2020 or normal vision. Unfortunately most hearing losses are not ones that allow that correction to pull people into normal even people two people we've talked about this forever you know two people with the same audiogram can have very different difficulties and experiences with hearing loss and with hearing aids and that's where the role of the professional comes in to understand the unique element of auditory and non-auditory factors that a patient presents to them. And then remember that it is the case that until in my case you get older you start having back of the eyeball problems, retinal detachment or glaucoma or this and that. Then I say I wish that glasses were more like hearing aids because we're doing a pretty good job, 88% as you said. But the issue and challenge is that there has been tremendous innovation and really over the last as you mentioned the last four years, five years we've been on this journey to fundamentally focus on speech understanding and quiet and noise, but also recognizing that health and wellness connection that hearing provides to overall health and wellbeing, cardiovascular disease, cognitive health, all of the falls and all of those things really have have occurred under your leadership and you you brought in a Chin Bomick and others in the in the organization to be able to help innovate in an area by getting people to think of hearing aids that connect to smartphones, that provide physical activity, social engagement, and that bigger connection to their life.

SPEAKER_01 32:38

Trevor Burrus Right and Mr. Austin had that vision back in 1998 where a hearing aid becomes more of a life aid or however you want to say right overall health and wellness. And you have to start somewhere. So you get criticized about trying new things and you fail you fail fast but then you narrow in what is you know essential and is working and is helping people from the patient standpoint what we do with our uh fall detection alert. How many times you know we've heard the stories if we save one life and we've heard more than one story it's worth it. Now it's not for everybody that's fine but what's for everybody is better hearing the sound quality hearing and noise you know go down go down the list. So we're on the right path and it's okay I'd rather you know say we tried and failed or we tried it and succeed than not try at all. And it's hard. You want to do what's hard and it's our responsibility and I wake up every day embracing that we will do what's hard. And you know we owe it to the patient we owe it to our customers and we do what's hard but we also have to make it uh very uh the ease of use intuitive because we talk about you know Apple and you look at what Tesla and others do we're they don't have to open an instruction but it's just intuitive yeah straightforward the user experience the user experience and we have a uh a demograph demographic that we work with and you know we're getting better we're never going to be we're not perfect but we're getting better and we have the heart uh to continue to push ourselves and again another mantra you know better today than yesterday better tomorrow than today and continuing as long as we're on that positive positive slope uh then we're going in the right direction we're trying hard things um you know you talked about earlier uh the fact that uh we treat our customers and want to be closer to our customers um talk a little bit about one of one of your babies uh uh is hearing innovation expo and in 2023 we will be having another one held roughly every two years uh with you know just the COVID kind of interrupted this this cycle and um uh and um talk a little bit about why it is that you had this idea to bring together all of our I mean it it's become the biggest industry conference and meeting uh that in in my experience I mean I can tell you it has provided me with some professional and personal highlights um when I look back and reflect on my career.

SPEAKER_00 35:08

But why what what caused you to say we should try this? Because we talk about doing something hard. That's a hard one.

SPEAKER_01 35:15

Complete transparency what started it but then what where it ended um it was 2010 I think into cool I was on the sales side of the organization. Yeah and you know just like other at the time you know Starkey has different brands and customer groups and so for us to when we did a a product launch or a meeting you're doing one for Starkey and and Audubon and New Air and Microtech and and we were like what is it four or five weeks in a nice destination that everybody like oh that's you know that had to be great.

SPEAKER_00 35:47

No. You're gone from your family you're gone from your life you're gone from your routine.

SPEAKER_01 35:51

So like we're doing it goes back to that innovative you know how do we do it different because innovation beyond technology so I was on a jog one day and I need to start picking that back up but I think better and I started thinking like you know because Mr. Austin did uh rented out a cruise ship first one in the industry and actually for Royal Caribbean in 1988 never been done before and brought the customers on for education you know the camaraderie and and uh a lot more and I started thinking like we can't keep doing this I mean we got a lot of good customer groups and I think why are we doing it you think about the the brands and the you know the the the the the team right the teams and the your your team color and you know who you root for like there's gotta be a better way. And I thought first I went back to the crews and then philosophically I went this industry has more in common than it has differences. It doesn't matter if they're across the street or competition it's about helping people so what can start you if there's a company that could redefine um and put together like a CES what CES and other industries do because there isn't one. I mean there's different ones for you know IHS ADA triple A we know that but for us as a company and being private and what we do for the right reasons can we bring them all together strengthen numbers and it's not about you know oh the big celebrity speaker no you and I both know when we do the agenda we pick the people that either understand what we do or they have similar businesses that they started that our customers can take something away from including us. So yeah let's what if we did something in Las Vegas and put everybody in the same room for three days and individualized the the days for technology to market to purpose. Because Starkey's all about everything's because you've you've you've uh uh hosted those days and and kicked us off because you get it I mean you've been doing that for X amount of years and it just kind of evolved from there because I thought it's either going to really go bad or it's gonna be successful and quite frankly I I knew it would be successful because I remember the first time we kicked it off that Wednesday night you go out there and you get out there and there's 3,000 no there's 3400 people and they're looking at you and you're like first thing is like there's a lot of people here. And the second thing is but why are we here? Right and that's where I one of the first thing I said we're here for a reason like we have more in common than we do difference.

SPEAKER_00 38:39

I remember that because that was really what set the tone because initially I'm sure there were tribes that formed. And when you set the tone with that that we have more in common than there are differences it leveled it and then everyone sort of just it was almost like a a an aha moment for 3400 people because how we make it we made it about them we made it about the patient.

SPEAKER_01 38:58

Right. It wasn't about Starkey and I've always held to that sounds ridic ridiculous because it's it's pretty expensive and the people that come there and you want to you know got to show the ROI.

SPEAKER_00 39:09

Uh that's the real that's the aftermath because I wanted people to leave there and we talked about it motivated you know that extra little pep in their step when they get back to the office pull out that file and you can think of that one person you can help a little bit more maybe with neurotechnology or the way they they're treating or managing and developing their employees from how we you know have uh uh outside experts come in on uh uh you know whether it's h hiring and developing your your teams or to how your office should look you know just the the basic it's just that motivation absolutely one of my favorite ones was in in those early days sort of envisioning how they might practice in the future and sort of having hands-on and interaction and I think that was what was really fun too and continues to be that in the you're right we've had we've had presidents we've had global business leaders and thought leaders uh on the main stage and some phenomenal ones that have just blown my mind but we've had as many that have been on some of the smaller stages. It's like going to a big festival an academic festival a learning festival and having people um that you relate to uh because they're just like you and then you have people that have had parallel industries bringing in their experience and then there have been, you know, how many presidents uh have have been here? So it's new do you have any favorite moments? I mean it's awfully hard to pick it's like picking your favorite kid.

SPEAKER_01 40:33

Well sure I mean I could I won't take the time on all the detail of the the moments but speaker wise if I I look back uh Magic Johnson.

SPEAKER_00 40:41

Yeah he he jumped off the stage and jumped down into the audience. Yeah and he and he talked about purpose and business and why and because I had heard him talk before and philosophically I knew where he was coming from but when he got in that room you know he was well no pun intended he was magical when he jumped off the stage and went down and just started asking people questions just spontaneously he he cared. Yes and that was phenomenal.

SPEAKER_01 41:10

You know I mean you could go into the you know it's the moments too behind the scenes like with President Bush he and I talking and with uh Tony Blair at the time and uh you know Colin Paul uh unfortunately Colin Paul I uh unfortunately he died like a a year or two later the butterfly effect yeah uh the uh the author is escaping me for for a second but nobody would have thought that you know that's gonna be the guy and I told people quite watch for watch for him because this is going to be the guy that's gonna inspire and uh give you that message that you matter every little detail yeah matters. Yeah um shriver was great at the last Tim Shriver blew it out uh Randy Zuckerberg yeah um Dave Fabry oh yeah yeah uh so I mean you want to give any you want to give any um any uh hints for who's coming in 2023? Nope nope no but I can tell you that it will be forward looking it's gonna be we respect the past and what we can do as a company in our industry but we have to be forward thinking what about the digital patient that's here doing the best we can for the the boomers and what's in front of us but also it's not fearing what you don't know and fearing OTC and all that. What are you gonna do in your community? Hearing hear a better hearing and hearing healthcare is community based. Yeah and it's giving our customers ideas and and the courage at the time because people are thinking oh it's Jane I got to get out or whatever it might be. No you matter stick out a little bit longer.

SPEAKER_00 42:43

Yeah I think it's that that being in the collective in that room 3400 other people that gives you courage that that enables you to get over whatever fear you have whether that fear and the fears have always been there Bill's like well cheap hearing aids have always been available. You can't commoditize caring um no matter what the fear is whether it's you know OTC or third party or or uh big box stores or whatever the fear of tomorrow will be um I think the collective when you realize you're all united in a purpose to focus on the patient um is what prevents that fear from overtaking people in that group.

SPEAKER_01 43:21

And what's great with the people we talk about you you interviewed President Bush before too and others and and I have and with Richard Branson we had Matthew McConaughey the last time and it becomes a conversation. Yeah I mean I've had my papers and questions and I just like we just start talking because they relate and understand what we do. Totally get it uh McConaughey when he had his kids out there hopping around on the on the sofa on that it was that wasn't planned I remember them looking out and you know you talked about and just have them come up because it's genuine we don't need to uh produce or you know manufacture a moment it just needs to happen.

SPEAKER_00 43:57

Well I'll look forward to 2023 and as As usual, we've uh run out of time before we ran out of things to say. We could go for a long time here.

SPEAKER_01 44:05

But well, thanks for having me. I appreciate it.

SPEAKER_00 44:07

My pleasure. Is there anything that uh you'd like to share that listeners may not know about you? Any pearls, pearls of wisdom, tidbits that you want to offer before we go to the case.

SPEAKER_01 44:18

Between social media and a lot, people know a lot about me more than I would want. And they think they know me, but they don't. But uh for me, it's uh, you know, my leadership style of why I'm here, because you you asked the question, you asked questions I haven't been asked before. Um, because I always get that, you know, uh what do you want your legacy to be? Or, you know, the those type of questions that you're too young for a legacy. Yeah. I just I just want to be part of a team. I want Starkey and the people of Starkey to be successful, and we help more people. It's not about the market share or the big profit play because I know we can do that. Money and what we uh invest in helps us for our uh tomorrow. Because as Mr. Austin said many times, you know, tomorrow's not a promise, it's an opportunity. And boy, did we learn that the last uh two years. You know, we had to do a lot of things that we didn't want to do, but you know, you prioritize um servant leadership. And I think everybody, you know, titles um can be earned, but what are you gonna do with it? And I'm sorry, there's nothing, there's no silver bullet in at Starkey uh in our customers' offices, or anything we do that's going to just make you instantly successful except hard work.

SPEAKER_00 45:36

Yep. I think uh one of my heroes, Vince Lombardi, said the only place that success comes before work is in the dictionary. And uh, you know, I think that holds true. You're you are one of the people, uh I don't I can't think of another person who's better at coming up with sports metaphors as they apply into business. So what I what I want to close with is uh what's your favorite sports metaphor that you've used or thought of um as it applies to a lesson uh that you've learned or that you're trying to strive for? I'm stretching a little bit to give you a second to think about it. No, no, no. What's your favorite method?

SPEAKER_01 46:12

What two things pop to mind, and I don't know if it's the exact story or a role, whether you're wide receiver, offensive line, or quarterback, right? You've got to play your role. Don't get distracted. Work as a I'd say punter or character. Okay, but you've got you have to understand your role. Don't get distracted or bored. Do the very best you can, and then other things will follow. So play your role and you win as a team. Yeah, championships are won through teams, not individuals. And at Starkey, as I say, we're not looking for the MVP. It's not about one person. You have to win as a team. And I and Magic Johnson's words always have stuck to me from the first time I heard him, probably in 2014, 50, winners win. And if you have a winning mindset and you have the right team with the right uh attitudes, you're limitless. And so that's why, you know, when you ask me what's our my biggest concern, and I always get asked that, you know, what keeps me up and down? Yeah, it's ourselves. Yeah. You know, we have to execute and do what we say we're gonna do.

SPEAKER_00 47:20

Well said, and on that I think we'll just end. I appreciate greatly your taking the time to sit down. I know you've got a lot on your plate.

SPEAKER_01 47:26

Well, so do you. I I always enjoy working with you. Pleasure in that. It's all right.

SPEAKER_00 47:30

And thank you. And to our listeners, uh, thank you for listening to this episode of Starkey Soundbites. If you enjoyed this conversation, please rate and review us on your preferred product platform. You can also hit follow or subscribe to be sure that you don't miss a single episode. We'll see you and hear you next time.