
Phil Howard & Rajvir Madan
Short Clips
Rajvir Madan
In this episode of You've Been Heard, Phil Howard speaks with Rajvir Madan, SVP and Chief Digital and Information Technology Officer at Arcutis Biotherapeutics, about the habits that widen the gap between a transformation plan and the result it delivers. Rajvir starts with the examined leader: someone willing to separate personal worth from project outcomes, question a familiar playbook, and prepare for the effects of a decision before rollout.
The conversation moves from personal patterns to culture and operations. Rajvir explains why values need operating principles, why activity counts can hide weak outcomes, why a strategy must say what the organization will stop doing, and how metrics shape incentives. He also makes the case that missing data deserves analysis, because the people who do not respond can tell leaders something the submitted answers cannot.
We review circuit consolidation, contracts, security, outage visibility, billing, and future flexibility to reduce chaos without forcing change.
Navigate through key moments in this episode with timestamped highlights, from initial introductions to deep dives into real-world use cases and implementation strategies.
[05:33] Rajvir explains how grades and project outcomes became tied to personal worth, and why leaders need to separate worth from work.
[08:52] He frames the transformation failure gap through three areas: looking inward, organizational culture, and operations.
[13:18] Rajvir introduces pattern recognition and asks whether an old playbook fits the context of a new organization.
[15:31] He explains why leaders need people around them who will challenge a familiar pattern and debate its fit.
[17:24] A failed AI drive-through order becomes a lesson in testing decisions under real-world conditions.
[22:52] Rajvir adds two inward-looking tests: prepare for unintended consequences and examine the history you bring into the room.
[27:24] He shows how values become useful only when leaders turn them into specific operating principles.
[31:55] The conversation replaces pilot counts and activity reports with questions about customer, employee, and business outcomes.
[33:12] Rajvir describes feedback loops that let frontline employees and customers signal friction before a rollout causes more damage.
[34:48] He argues that strategy requires a clear statement about what the organization will stop doing.
[37:43] Rajvir explains how measures shape incentives and turn teams toward activity or outcomes.
[40:13] He closes the data discussion by showing why survey non-response is part of the evidence.

448-Rajvir Madan
Host: Phil Howard
Guest: Rajvir Madan
Phil Howard: Welcome to You've Been Heard. You've been on the show before, but
what's the update in your life? What has changed in; I don't know. However long
it's been a year or two years, let's just go down; how much can change in
someone's life in a couple of years?
Rajvir Madan: Yeah. So first of all, you gotta start with the family man. So the
kids are, growing up, And, I took a trip to India with, my eight year old
earlier this year, and It was fantastic to get him to experience the culture in
India, get him to meet the extended family. I think that was awesome.
Phil Howard: So he got completely taken care of the entire time he was there and
got to see, literally another world. How does the culture differ just from a
business culture? Just curious, here and in India, or it doesn't even have to
just be business. you've seen both sides. So what's, profound to you or what do
you see that's different? I mean, obviously a lot of things are the same. We're
all humans everywhere. And that's probably one of the first things that people
realize. But, what's different?
Rajvir Madan: Yeah. I think what's different is from a business culture
perspective, I would say that, the American culture and the American business
culture tends to be extremely direct. and, at least in my opinion, I think it's
extremely direct and, feedback is welcome. in most sort of settings that I've
been in, I would say that, it's completely okay to have that debate, to have
that dialogue, to have that discussion before you sort of get to, an important
decision. and, I find the Indian business culture to be extremely, hospitable. I
don't know if you've ever, traveled to India. and it's a very hospitable
culture. It's a very sort of community based, culture, for instance. and that
has its implications on how you deal in a business context there.
Phil Howard: I haven't traveled to India. I have many friends from India,
Pakistan, Bangladesh, Morocco, all of the Middle East. And what I've noticed,
and I don't know if there's any, parallels to this that I've noticed when you
get outside of the United States, depending on what country you're in. There's
definitely more. I don't know if I want to say political decisions that come
into play or a lot more of, kind of who you know matters. I think competency
matters, I think degrees. I think people in foreign countries tend to be very
degree heavy. I think that matters a lot more. In America, I think degrees
matter, but I think competency and your ability to do something and more prove
it by the numbers matters. I think hardcore numbers in America, but I find that
other countries degree heavy, who you know matters. And I don't know if that's
kind of reading between the lines of, maybe more welcoming. I think probably
what I said sounds negative, but maybe you can shed a positive light on it.
Rajvir Madan: Yeah, no, actually I would agree with you. I think, growing up in
India, at least I went through sort of a British educational system and I would
say grades really mattered. Education really mattered. Degree really mattered. I
think the last time I was on the show, I actually spoke to you about this
internal competition that I've had with my siblings over the years about who has
the most degrees and that was, something that was embedded, in our upbringing,
with my dad and he always instilled the value of education. So I totally agree
with you on that. and yeah, I would also say that, this.
Phil Howard: Discipline, the disciplinary system over there might not be as
controlled as America as well. There might be some harsher discipline. I'm just
imagining, I don't know, like if you didn't, if you came home with a bad grade
or something, I just can imagine.
Rajvir Madan: I think what's important is, growing up, I would say that one of
the things that was embedded in me was, sort of my worth and my value came from
the grades that I got. and, as we get into the podcast today, I think this one
concept that I want to sort of talk about is this notion of the examined leader.
and it's about how you create sort of self-awareness. and a lot of that
self-awareness that I've created for myself has been, based on sort of, going
through therapy for the last ten years. And there's been reasons why I've gone
through that. And one of the big sort of revelations that I had therapy was this
notion of, I need to separate my worth from my work, from my grades. and I think
I've been caught up in situations at work where, if there's a project that's
failed, for instance, I've sort of taken it as a personal failure. then I've
often sort of told myself, oh, I don't want this project to fail. So we'll keep
going with this project. We'll keep trying to implement the system, for
instance, and you have to step back and think about why you do that. Because in
a lot of cases, what you're unable to separate is this notion that you need to
sort of separate your work from your work. And, I've had to sort of tell myself
that this is not a reflection of my work. this is, not a reflection of my worth.
And what I need to do is sort of, make the right call for the organization. And
sometimes the right call for the organization might be stopping that project,
killing that system or whatever it is. Right. And I think that, when you're not
able to separate the two, you sort of get into making decisions that
unfortunately might not be the right decisions for the organization.
Phil Howard: I love it. It's selfless. And I think from a selfish or a personal
perspective, I think your self-worth is going to come from me. Right. So we
could spend a lot of time. And I'm just saying this because a lot of us and just
being an American, like, yeah, our self-worth is our career and all these
different things. And meanwhile, our family suffers. So, with that being said,
what you just said from a team perspective and from a company vision perspective
or from a, I guess, a culture, I think it would be more of a culture perspective
is that, team wins. It's not just about, self and, how you grow and I think what
you said is so important because high achievers, overachievers don't want to
give up. They really don't want to have a project that fails. But with that
being said, how do we close the failure gap in an industry where most projects
go twenty percent, over budget? So many Black Swan ERP projects, so many things
not delivered on time. shadow IT, shadow AI. I guess, how do we stop? Or how do
we figure out where it breaks down and how do we close the gap? Because I would
love everyone to listen to this and all the failures to end.
Rajvir Madan: Yeah. And I think let me sort of set the context. Phil, I just
read a statistic not too long ago that said about seventy five percent of
transformation projects, actually do not end up delivering the outcomes that
they intended. So let's sit with that just for a second, right? This is not sort
of underperform a little. This isn't five percent, fifteen percent, even fifty
percent. This is seventy five percent. So, seventy five percent of them do not
deliver the change that they promised within the organization. Right. So,
clearly there is this sort of gap between what your intention is and then what
you've actually, delivered in terms of outcomes for the organization. Right. And
I sort of look at that gap, I've sort of been doing this now for a little over
twenty six years and I've been leading a lot of transformations. and I think for
me, it sort of comes down to three big things. The first thing that it comes
down to is sort of looking inward. I think as leaders, we have a set of
fallacies that, we need to work on. and I'll get into some of those in just a
second. I think that a good strategy or a good decision, doesn't always sort of
land the outcomes that it's supposed to land. And, as leaders, we need to think
about how we can contribute to closing that gap, closing that divide. Let's say.
I think the second, sort of pillar of how to close that gap is really around the
culture, of an organization. And I think that for me is, you have to think about
the culture of an organization and whether it's actually going to be ready to
absorb, the transformation and the change that you're looking to roll out. and
is the culture of the organization going to embrace it? Is it going to tolerate
it? Is it going to throw that change out? and how are people going to react when
that sort of change lands on them. Right? So that's the second piece of it. And
the third piece of it is really around sort of the operations, right? So, how do
you spend your time? How do you spend your money? How is data used? and if you
think about things in those three buckets, and we can get into more detail
around those, I think that's how you really start closing that seventy five
percent gap that sort of currently exists today.
Phil Howard: First of all, looking inward to ourselves to see where our own
blockers are. We've got, a cultural challenges. I guess the culture piece too,
though, is like, even if once we look inward and we find our own problems
ourselves and you're saying, okay, what are the problems of the culture now?
What would be preventing that? I guess my question to you is just challenge you
just based on what you said earlier, is you've looked inward to see what your
issues are, but whatever that change is. Why essentially, should the change or
even the spark or the spark of change even, where is that coming from to begin
with? Is it coming from you? Right. So like, how are we even coming about to
that? We even want to do any type of change or transformation to begin with? And
should the idea really be coming from you, or are you gathering this from all
different types of things?
Rajvir Madan: Yeah. So when we think about change sort of in general terms,
everything around us is changing. I mean, think about the impact that AI is
having on each one of our companies. And that's driving us to change how we
think about our organizations, how we think about, generating incremental
revenue, how we think about generating cost savings and productivity
improvements, right? so change is the only constant. There's always change
that's hitting us. I would argue that over the last couple of years, the speed
or the rate of change has gone up exponentially with everything that's happening
related to AI. and as leaders, if we're not ready to sort of, embrace that
change and to become change agents for our organizations, we're not going to
have that leadership seat anymore. I mean, there's already companies out there
like, there's Walmart, there's Adobe. I can get into a couple other companies
that have pushed out leaders within their organizations because those leaders
were operating from a previous playbook that wasn't ready for how change needs
to be thought about and how transformation needs to be thought about in, this AI
era that we've just kicked off over the last couple of years.
Phil Howard: So true. Okay, let's just start on your first three to five bullet
points on how to look inward for people that like, because we only see what we
see. We only know what we know. We don't know what we don't know. It's basically
kind of a really shallow way of looking at it. But how can we self-diagnose or
do we need someone else to do that?
Rajvir Madan: Yeah. So let's, start sort of looking inward, right? And I'll give
you, the first sort of tool that I want to sort of think about is this notion of
what's called pattern recognition. And it's not sort of the statistical or
mathematical definition of pattern recognition. So at times, your brain can
almost be, manipulated, consciously or subconsciously to focus on a pattern that
you have seen before. Right? And as leaders, often what we do is we walk into
organizations and we try to apply a previous pattern to that new organization
without sort of recognizing that the new organization that we're in has a
completely different context. we think that an old pattern can work in a new
environment, let's say. Right? So what works for Lockheed Martin is not going to
be what works for SpaceX, for instance, right? Two very different contexts. So
our brain has this tendency to sort of go on autopilot, and take previous
patterns and start to apply them. even though the context is very different and
this is one of the tools that I think about quite often, which is, is the
previous pattern is the previous playbook really applicable in the context that
I'm in? and if it's not, don't apply it. and this is what I call the
anti-pattern. So sometimes you have to sort of leave the old pattern in place
and almost think about what the pattern for the new organizations needs to be,
which is the anti-pattern. That's one thing that I think about that leaders sort
of constantly have to do and constantly have to sort of think about as they're
operating in new organizations. So that's one of the tools that I think about.
Phil Howard: There's a lot of challenges and problems that come up with that.
One, they might only have one pattern, Two, they might not be bold enough or
believe enough in themselves, or be creative enough to even be able to realize
and see something doesn't feel right here. And I think that that's what it
really is, is I think that sometimes people get fooled and then that's how we
end up buying things that that's how we end up buying shiny objects. Yeah.
Because someone comes in and they're like, this is it. This is the solution. And
this is how we end up with a tool first.
Rajvir Madan: And I think, what's important in sort of situations like that is
to really, surround yourself with people that will tell you that, this is a
pattern that needs to be applied with caution in this instance and why it needs
to be applied with caution. Right? And I think what good leaders do is, they
surround themselves with people that are going to, give them that feedback that
are going to give them that coaching and say, this might actually not work here
or yes, it might work here, but this is what you have to think about. And I
think, that sort of notion of feedback and that notion of sort of robust debate
that comes with surrounding yourself with people that are not going to just say
yes to you, I think is really important because I've seen a lot of
transformations fail because leaders did not want to listen to feedback from
other individuals around them.
Phil Howard: One of the most effective things, or one of the best pieces of
advice I actually got was along that line kind of the opposite. But I think it's
the same. And that is basically trust your instincts. Like just because AI says
something or just because so and so said it, or because the director of sales at
Salesforce said it, or because this program used this or this guru said that.
Yeah. you kind of have like a good feeling when you're in your environment, you
understand your culture really well and you understand your people well, you
kind of have this like little feeling that's like, something's not right here.
It doesn't fit. Like that needs to be changed. Like don't use that. Even though
the prompt popped this out, like maybe eighty percent of it's good. But the
other twenty percent, I think a lot of times people might doubt their own
instincts. I don't know if that's in line with what you're saying, but sometimes
I really needed someone to tell me, that doesn't work here. And you're right,
actually. Like that won't work in this situation. It works in ninety nine
percent of the situations, but your instinct that it's not going to work here is
correct.
Rajvir Madan: Yeah. And, I think part of it is like, you need a mechanism to
test some of your decisions, with groups of people or with individuals. Right.
and this is, example from not too long ago, I think it's been about a year or
so. I drove up to a Taco Bell and, it was about ten minutes before I needed to
pick up my kids and I was hungry, let's say. and there was a little sign outside
the drive thru that said, AI is lending a hand. and, there was a part of me that
was super excited about it, given the work that I do, and there was a part of me
that was like scared about what was about to happen. it was a rainy day. It was
a windy day. And, I sort of gave it my order and, I just wanted a crunchwrap
Supreme and that's what I told it and it, didn't really understand what I was
saying, because of the rain, because of the wind. And, next thing I know, it
finalized a twenty five dollar order for me, with four different items in the
bag. I was late to pick up my kids, but I was sort of asking myself the
question. I'm like, that's like, how was this tested? Like a decision was made
to roll out AI. But, was it really tested around conditions like, wind and rain
really bad. and there's actually a lot of, sort of media around this, they
actually accepted that. and I think the comment that their chief technology
officer made was sometimes AI works and sometimes it doesn't. Well, I don't
think you want to roll it out when it doesn't work.
Phil Howard: Seventy percent of the time AI works in, in a tested like in a very
intensive environment. I actually had a really good AI experience the other day.
Really, really good. And I've reached out to the CTO and I think I need to keep
saying this over and over again until he decides to come on the show. And they
did really, really good on booking my appointment, following up, listening to
me, making sure I was heard and not a single human touched it. MM. I went to
their website. I like really vibed into this like little chat bar. Like I just
hit like transcription. Right? I was like, look, my air handler is not working.
I already, turned it on and off. I already went to the breaker panel. I shut off
all the breakers. I pulled out all the main like plugs at each unit outside. I
checked for dead mice. I like went through the whole thing like I took the front
panel off. There's no lights, the panel. There's no power going to this. I was
like, just this whole long paragraph send I get back like, Phil it sounds like
you've been pretty thorough with what you've checked already. Let me make sure I
understand you correctly. You've done this, this, this, this and this and all of
this. So definitely a technician needs to come out this Tuesday at ten o'clock
work or would Wednesday at three pm work better. And I was like Tuesday at ten
o'clock. And I was like, okay, we've sent you a meeting reminder. You'll get a
text message reminder as well. And we'll make sure someone from the office on
Monday follows up right away. This is Sunday night, right? I was like, blown
away. That's awesome. And service Titan, whoever you are, service Titan, I need
you and I called him, I was like, what do you guys use? They're like service
Titan. I was like, we're on like a beta. And I was like, of course you're on a
beta because it's an AI thing. Like, of course you're on beta, whoever you are,
service Titan, CTO, CIO, director of, development or something, please. Come on
You've Been Heard. We're giving you a shout out right now. It's free. You don't
even have to pay for this. And we're telling you that you're awesome and you're
actually using AI correctly in a world where ninety five percent of all AI
projects fail, according to the MIT study that was released over a year ago. And
hopefully we're better right now. They all become black swan projects. They all
fail, and people spend a ton of money. And this should be an advertisement that
someone pays me for. So and I immediately called my other Hvac friend Hvac. You
gotta say it like that down in Philly. And I was like, dude, you gotta use this
because how many other guys are up in the ceiling? they answer a phone call.
Then they're like, yeah, I'll be there tomorrow or, and then they forget because
they just can't do all this. They need service Titan.
Rajvir Madan: Yeah.
Phil Howard: That's awesome. Okay. Why do they fail? So we've looked inward. Do
we have like some five bullet points, like some questions we could ask
ourselves? But, what bullet points should we have? Or should we be asking
ourselves when we want to look inward?
Rajvir Madan: Yeah. So I would say the first bullet point is really around this
notion of pattern and anti-patterns. So really asking yourself whether a
previous pattern applies in the context that you're in and why it might apply or
why it might not apply. Right? So I think that's one of the things I think the
second.
Phil Howard: About patterns of just issues, like every time this happens, I gain
twenty pounds and start eating again. How about bad patterns like that? Or every
time this happens, I seem to go start looking for a vendor first instead of
talking to my end users first. Are there patterns like that?
Rajvir Madan: There's patterns like that. And I think that, to your point,
there's good patterns that you want to reapply. and I think you have to ask
yourself whether you can reapply that pattern or not. and then there's bad
patterns that hopefully we've learned, never to apply because they just lead to
bad outcomes. But I think your point is a good one, which is we have to learn
that there's good patterns and bad patterns and good patterns don't always get
applied. Bad patterns, should probably never get applied because they normally
do not work in most situations.
Phil Howard: What do I habitually do? Also, I think a lot of people will
overanalyze or paralysis by Overanalysis. I think there's some people that might
get into that.
Rajvir Madan: Let me give you a couple more bullet points, please. When you're
making a decision. I think you have to sort of not only ask yourself, did we
make a smart decision? And as leaders, we are trained to make good decisions.
there's a million books out there that teach you how to make good decisions.
There's all these decision making frameworks, there's Raci, there's Di, I can
name a few of them. Right. But the question you have to really ask yourself is,
are we ready for what will come from this decision? Right. And I think that gets
you to think about the unintended consequences of that decision and how that
decision is going to land on people, on your customers, on your consumers, on
the culture of the organization, on systems. How is it going to impact
processes? Right? So thinking about the ripple effect of a decision is one of
the other tools that I sort of, get leaders to sort of think about in this sort
of inward context, let's say. and then the other thing I would say is that, this
notion of sort of self-awareness, which I have gained through a lot of work I've
done on myself, including therapy. I think that really gets you to sort of think
about your upbringing. It gets you to think about your cultural context. It gets
you to think about your fears and your ambitions and what causes you anxiety and
doesn't cause you anxiety, for instance. Right? Because guess what? When we show
up in a meeting, when we show up at work, we are bringing all of that with us.
We are bringing our upbringing with us. We're bringing our cultural context with
us. We are bringing our fears, our ambitions, our anxiety with us. Right? So
that shows up in the room that is in the room, whether you like it or not. And
having that level of self-awareness is really important.
Phil Howard: Any suggestions or books or methods or anything like that?
Rajvir Madan: Find a great therapist. I've tried to find a good book on it, and
I think a lot of books that are out there go over interesting frameworks. They
give you interesting tools. But, I think the process of engaging with a
therapist, that therapist is going to ask you a series of questions that are
going to get you to think. And that way dialogue is really, really important. A
book is not going to give you a two way dialogue. And I would say that's where
sort of actually having that human interaction is going to be really, really
important. this is one of those things I wouldn't use ChatGPT for or an AI. No,
no. I think a lot of people use ChatGPT for therapy. And, the kinds of questions
a good therapist will ask you, ChatGPT is not going to be able to ask you those
questions.
Phil Howard: I think a good resource is Psychology Today. I think the articles
there are like, first of all, I think you could find a good therapist there too.
I think there's probably some kind of like finding tool or something like that,
but the articles and stuff really bring up kind of like some in depth, like
topics and understanding of how humans operate. I think I went to a therapist
when I was like under a lot of stress as a business manager and had like, an
insane staff and really, really strict budget and a very, very high achieving,
senior executive manager. And even though I was like one of the best, right. and
I was performing like highly performing. And I found out later on that this
person told me I was like one of the best. I thought I was the worst. like when
you're the best and you come into work every day and you feel like you could do
one thing and get fired, that's a problem. Yeah. And it's just like, that level
of stress is like, I don't ever want to experience ever again in my life.
Rajvir Madan: That's a good segue into culture, right? And I think that's part
of what going through a process of self-awareness and therapy sometimes is about
right. we all have a work history attached to us unless you've just, you know,
graduated from college or high school or whatever it is. I think we all have a
work history. attached to us. And we also have a notion of work sometimes that
we've seen, from people or, around us, whether it's our parents, whether it's
our uncles and aunts or whatever it is. And I think again, that is part of our,
upbringing and those are things that we really have to dissect as we go through
this process of becoming much more self-aware.
Phil Howard: You were thinking culture can tolerate change. So what we're
supposed to be talking about is closing the failure gap here. So and we might
have to have some kind of concrete example here to kind of try and make some of
this come clear. In other words, I don't know whether it be an ERP change or
some typical thing that everyone goes through, it's like, okay, first of all, we
already looked inwardly. we know that maybe my recipe for success at every
company is not going to apply here to this one. And we can't just use SAP
everywhere in the world or whatever it is. I don't know. can my culture tolerate
it?
Rajvir Madan: Yeah. So one thing that I think about related to culture often,
and I think this is where sort of culture either, expands the failure gap or
actually shrinks. It is this notion of, we've all worked at companies that have
values. and they post it on the walls and, on the hallways and all of that good
stuff. Right. And then I see, behaviors within that organization that actually
are very counter to those values. Right. I've seen like, a value around respect,
for instance. And then, the company tolerates individuals that are not
respectful to each other. and I think when you start to see this misalignment
between a value and the actual behaviors that occur within that organization,
that to me is a telltale sign of the fact that, this culture is not ready for
change. because on one hand, you're preaching something and on the other hand,
you're practicing something very different. The other thing that I sort of think
about, I think coming back to sort of, recipe and let's stay on this, topic of
values is I find values to be important, but at times they're very lofty, for
instance. Right. And they're not specific enough to actually guide some of your
decisions and guide some of your behaviors. And let me give you an example of
something. I think if you have a value that, says that the customer is always
king or queen or the customer comes first, let's say, right? Let's say that's
your value. you might end up making decisions that are counter to your business
strategy. that might put the customer first, right? But this is where this
notion of operating principles comes in where you say, yes, our value is that,
the customer is first, however, we always, in a situation where, and, a staff
member or a team member or an employee has to go and do something that is
unethical to satisfy the customer, we will not do it right. And I think that
gives you clear guidelines around how to apply those values and specific best
practices and or principles around, how far those values should go and how far
those values should not go. And I think this is where I've seen organizations
either succeed or not succeed, which is they really distill those values down
into operating principles. and I think those operating principles really gets
you to sort of, make sure that you're aligned with how you think about that
value and how you sort of, actually show up in terms of, how that value sort of
shows up within the organization. So that's one piece of it around sort of
values and operating principles. I think the other piece that I sort of think
about is in a lot of organizations, and I think this is a great example, maybe
one, we can talk about related to sort of ERP, but I think it applies more
widely speaking, is this notion of sort of activity versus outcomes, right? I
think historically we have been very fixated on measuring activity. Right. How
many meetings, how many initiatives, I think even with like AI transformations,
for instance, I think a lot of leaders go to their boards and, their senior
management. And instead of talking about the value that those AI initiatives are
generating in terms of dollars or productivity improvements or whatever it is,
they talk about the number of pilots they're running, for instance. Right. and I
think there has to be this shift between sort of thinking about how busy we are
as teams versus thinking about what outcomes and value that team is actually
generating and what impact it's having on the business. And I think that is a
cultural shift that not many organizations sort of often, make. And then I think
one of the other things. And there's many more that we can get into.
Phil Howard: But one of the other let me just make sure I understand it
correctly, though, because I think a lot of the summary of that is, when it
comes to values or when it comes to activity, for example, is that we're being
specific and then we're aligning whatever specific activity to an actual
outcome. That's right. And I mean, for the thirty projects that might get thrown
at any IT leader, how many of those thirty actually deliver to the bottom line
or are helping alleviate the number one challenge that's holding the business
back from scaling?
Rajvir Madan: Exactly.
Phil Howard: Questions we can ask to make sure, should we be measuring the
activity versus the outcome here? Or questions we should be asking around
measurement?
Rajvir Madan: Yeah. The questions we should be asking is what changed for the
customer? What improved for employees? What measurable outcomes are we actually
going to see? Those are the questions you should be asking. Not how many pilots
you're actually running within the organization.
Phil Howard: Where's the disconnect for a lot of these people? What's the number
one thing they should be measuring an activity up to or like, is there just like
some basics that we can just like make it third grade for that everybody to me
it is because I stayed back in first grade. So to me, like business has to be
that simple or I wouldn't be successful.
Rajvir Madan: I think the simple question is like, this activity is in service
of what business goal or what business outcome. And if you're not able to draw
that connection between an activity and a business outcome, you might want to
tell yourself to stop that activity because it's not resulting in a, well,
either stop the activity or ask someone the question that says, I'm struggling
to connect this between like, connect.
Phil Howard: The dots, drill down, be specific, drill down and be specific.
Okay. Super awesome. where do we want to go next? Because honestly, we could
talk about all the stuff that we need to talk about, probably over a series of
ten shows. Psychology alone is like, the psychology of, should we go see a
therapist? And what's the actual state of it? Leaders in general is like a whole
podcast.
Rajvir Madan: It is, and maybe I'll wrap up the culture section by saying, I
think another sort of sign for me of a healthy culture is feedback loops as to
whether they exist or not exist within an organization, right? So, do frontline
employees feel safe telling you when something isn't working. do customers have
a way to signal friction that actually gets heard? do you review unintended
consequences regularly? when you're sort of rolling out a new initiative, let's
go back to our Taco Bell example. Like did someone think about what the
unintended consequences were? And in a lot of cases, I bet, I've seen this in a
lot of organizations. I think there are actually people that know what the
unintended consequences are going to be. And sometimes they don't have a voice,
or they're not talking about what the unintended consequences are likely going
to be or how to figure those out. and I think that's not a sign of a good
culture because you want to hear about these problems. Actually, before,
Phil Howard: The Taco Bell thing is laughable, to be honest with you. Yeah. what
that tells me is that there is someone that was like, AI is going to make us
rich. Yeah. We're going to be able to to cut back, one hourly employee per, or
whatever per thing. I'm okay with the self-checkout at Walmart. I really am
because it works. Yeah. But for some reason, when I go to stop and shop, yeah,
it's everything I ring up is like, beep. The light goes on. Someone's got to
come over and like, check the thing. So I get so frustrated and like, I go to
the one person that's a live line, like a live person and they're like, we can
go over to self checkout, I can show you. And I was like, no thanks.
Rajvir Madan: Yeah. So I think let's maybe shift gears a little bit towards the
operational side of it. And I think sort of good operations actually helps you
close that gap as well. And when I think about operations, I sort of think about
three different areas. I think one is sort of how time and money are spent. And
this gets into this conversation about prioritization, right. and I think, you
really have to ask yourself, are we investing time and decisions with the
biggest blast radius that are actually going to have the most impact for the
organization, our customers, our consumers, our employees? Right. are we
allocating our resources, where it matters the most? and I think most
importantly, a strategy professor of mine once told me, he said a good strategy
is, knowing what to say yes to, but equally importantly, knowing what to say no
to. Right. and I have seen a lot of strategy work done, a lot of strategy decks
put together, and very few of them actually have a clear statement around, this
is what we are going to say no to. and I think that for me, prioritization
struggles often at companies because you don't know what to say no to. what to
say yes to in a lot of cases. But when you don't know what to say no to, people
work on the wrong things. So I think that's about.
Phil Howard: Just one point to that, one point to that every great coach that
I've had and I've spent a lot of money on this stuff. Every single one has said
it's about what we're taking off your plate.
Rajvir Madan: Exactly.
Phil Howard: It's about what you're not doing. then my right hand man, Greg Le
Dall, the Frenchman, he knows. No, Phil, we're not doing the info tech better
than info tech IT leadership, score card, app that we're going to build and give
away for free. Like, no, we're not doing that right now, but it's awesome.
Rajvir Madan: I know.
Phil Howard: And look what I've, coded and look at all the research that I did.
And, but Infotech shouldn't be charging for that. It's ridiculous. We can give
it away for free. No, Phil.
Rajvir Madan: Awesome ness doesn't equate to business value. Right. Some of the
things that are not awesome are actually quite simple to do, actually generate
more business.
Phil Howard: I could not agree more. Yeah. The most boring things in the world
make great money, and you have to show up every day and grudgingly do this thing
and you will make money. I try to tell my kids that all the time, whatever that
book is, it's like, do what you love and you'll never work. Another day in your
life is a load of crap. It is.
Rajvir Madan: And by the way, follow your passion, I think applies when you've
made enough money in life. Then I would say go follow your passion. Otherwise,
in a lot of cases, there's some hard decisions sometimes you have to make with
sort of, sustaining yourself and your family versus, what your passion, allows
you to do.
Phil Howard: Agreed. One hundred percent. What are we ending with? You got the
final.
Rajvir Madan: I'm going to end with two final thoughts. I think the two final
thoughts I'm going to end with is when I think about operations, I think about
data. We haven't talked about data at all today, but I think data is sort of
very, interesting, I have some principles around how I think about data. I think
one of my sort of interesting principles around data is what you measure, you
become. And often the measurement follows the incentives, right? So, I think
that in a lot of companies I work for, if you measure, the number of tickets
that your IT team or your service desk is actually solving for, then that's what
you become, you become a very activity driven organization, versus measuring the
outcomes that those tickets are actually generating, for instance. Right. and
then, if you have a measurement around, and I've often seen this with like sales
reps, for instance, like, in previous lives, let's say sales reps were measured
by the number of calls they made or the number of stops they made at sort of,
doctor's offices, let's say. Right.
Phil Howard: Activity, activity, activity.
Rajvir Madan: Activity, activity, activity. But more importantly, they told
themselves that they're incentivized to drive activity, but they're not
incentivized to drive revenue. And, your measurement dictates often what the
incentives are, for you. and that can create a misalignment for you as an
organization. And that again, creates a wider gap.
Phil Howard: Yes, we're measuring answers to questions. Mhm. we're definitely
measuring podcasts done with the right people. Mhm. And when I say measuring the
questions, one of the questions that we ask a lot is when it comes to your CSP,
VAR, MSP, the seeds of the world, what's your single biggest frustration,
problem or concern? Mhm. And surprise, surprise, what we find is that we feel
like people are pushing boxes. They're just trying to push a product. They get
paid an extra few points on. We don't like the people that are the Swiss Army
knife, vendor to everything because they don't do anything well, but they do
everything kind of mediocre. We'd rather have people tell us what they really,
really do well. And if we measure that, we really, really find out what matters
most. Yeah. We also find out who the real IT leaders are. We actually find out
that people are that actually have a seat at the executive round table and are
heard. And so we measure a lot of things. but it's amazing. You can measure,
believe it or not, human language and there's models and patterns to it.
Rajvir Madan: The other thing that I find really interesting is sometimes a lack
of data is data itself. like think about employee surveys just for a second,
right? Yeah. if seventy percent of the employees respond to a survey and thirty
percent of people don't, there's data in why thirty percent did not respond to
that survey. So lack of data is also data. And a lot of people analyze the data
that they got, but they don't analyze the data that they did not get.
Phil Howard: You just made me have a leap in faith in the data mind blowing
thing, because we talk about it every day, like data is everything. It's the
gold, it's the new whatever we talk about that. But, I think you just helped me
hit like even just a new level of, mind blowing thought when it comes to data.
Now, as far as AI though, and all of the things that we've kind of been poo
pooing a little bit. Yeah, I do think there is an option here. Yeah. You should
build along with your philosophy of, I think there's a potential I t a I
psychologist agent that could actually help you look inward, ask questions,
break patterns, ask you if you're, culture is ready to tolerate the change that
is coming up. And then make sure that you say no to whatever that is because
it's just going to screw up the budget anyways. So the first thing it's going to
do is ask you this question. It should just say no first. First of all, no, it
should say no to you. Throw this project away fifty times. And then if you keep
coming back like, okay, what pattern do you want to throw at this? And can your
culture even handle it? Maybe. Might even want to go backwards. We might want to
say no first, then hit the culture. And then is the culture ready for you? And
are you going to screw it all up and break the culture anyways? Because you come
in with some crazy pattern that's just not going to work.
Rajvir Madan: Yeah. And you know what? You hit on a really interesting point,
which is around sort of operations. One of the other things I think about is
like how resources are allocated. And I specifically think about human resources
here. Often I have seen like when you start a transformation, you like, you hire
like tons and tons of people within the organization to actually drive that
transformation forward. But you haven't really defined what their roles and
responsibilities are and what they're going to do. And then those people end up
creating busy work for themselves and for the rest of the organization. And that
actually deviates from the mission of the transformation because instead of
actually focusing on what the organization needs. You're creating busy work.
just to validate your existence within that organization.
Phil Howard: Yes, yes, yes. it's so true. Setting clear expectations, making
sure that we communicate the job's not easy. you make it. Look, I guess I would
like to say easy, but I guess it's probably a career full of, failing forward
and a lot of mistakes and hard earned battles won. So, Rajvir, it's been a
pleasure having you, having you on You've Been Heard and You've Been Heard.
Rajvir Madan: Thank you. Thank you Phil for having me today.
448-Rajvir Madan
Host: Phil Howard
Guest: Rajvir Madan

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