1 00:00:00,840 --> 00:00:03,440 Speaker 1: One of the most successful business executives in the world 2 00:00:03,440 --> 00:00:06,200 Speaker 1: over the past ten years has been Bill McDermott. He 3 00:00:06,280 --> 00:00:08,680 Speaker 1: took SAP to record heights and now he's doing the 4 00:00:08,720 --> 00:00:09,520 Speaker 1: same with Service. 5 00:00:09,560 --> 00:00:09,800 Speaker 2: Now. 6 00:00:10,240 --> 00:00:12,280 Speaker 1: Had a chance to sit down with Bill McDermott and 7 00:00:12,280 --> 00:00:14,800 Speaker 1: his offices in New York and had him described to 8 00:00:14,840 --> 00:00:17,120 Speaker 1: me how he came from very modest roots to the 9 00:00:17,120 --> 00:00:20,079 Speaker 1: top of the corporate world, and how he inspires his troops, 10 00:00:20,239 --> 00:00:27,360 Speaker 1: inspires his customers, and loves his job. So in October 11 00:00:27,440 --> 00:00:30,800 Speaker 1: of twenty nineteen, you surprised the business world by stepping 12 00:00:30,880 --> 00:00:35,000 Speaker 1: down as the CEO of SAP, a very very large 13 00:00:35,000 --> 00:00:38,159 Speaker 1: company whose value had more than double during your co 14 00:00:38,320 --> 00:00:41,839 Speaker 1: CEO position and CEO position, and you took a position 15 00:00:41,920 --> 00:00:45,519 Speaker 1: with a much smaller, less known company Service Now. Usually 16 00:00:45,520 --> 00:00:47,120 Speaker 1: people when they leave a job, they go to a 17 00:00:47,120 --> 00:00:49,440 Speaker 1: bigger company. Why did you go to a smaller company? 18 00:00:49,600 --> 00:00:52,640 Speaker 3: Well, I saw the future and where it was going. 19 00:00:52,720 --> 00:00:54,680 Speaker 3: First of all, I want to say I had a 20 00:00:54,680 --> 00:00:57,320 Speaker 3: great run at SAP, and it was a pleasure taking 21 00:00:57,360 --> 00:00:59,920 Speaker 3: him from thirty nine billion to one hundred and sixty three, 22 00:01:00,240 --> 00:01:02,560 Speaker 3: really inspiring lots of people in customers, and it was 23 00:01:02,600 --> 00:01:06,480 Speaker 3: a wonderful experience. But after seventeen years nearly ten as CEO, 24 00:01:06,560 --> 00:01:09,080 Speaker 3: I was already to do something different. And when I 25 00:01:09,120 --> 00:01:12,400 Speaker 3: saw a service now in the marketplace, I knew what 26 00:01:12,480 --> 00:01:16,080 Speaker 3: it was, and I knew what it could do, and 27 00:01:16,160 --> 00:01:18,840 Speaker 3: I knew with my background, I was a pretty good 28 00:01:18,840 --> 00:01:21,680 Speaker 3: cultural fit for what Service now needed to scale it. 29 00:01:22,200 --> 00:01:24,880 Speaker 1: So let me ask you what does service now really do? 30 00:01:25,000 --> 00:01:28,560 Speaker 1: Tell me in simple English language, everybody can understand what 31 00:01:28,600 --> 00:01:29,440 Speaker 1: do they actually do? 32 00:01:29,680 --> 00:01:34,520 Speaker 3: Yeah, it's a very good question, David. It basically drives 33 00:01:35,760 --> 00:01:42,160 Speaker 3: productivity in work. So think about tech today. Every CEO 34 00:01:42,240 --> 00:01:44,440 Speaker 3: you talk to is going to tell you I have 35 00:01:44,480 --> 00:01:48,840 Speaker 3: to digitize to survive. Forty percent of the CEOs say today, 36 00:01:49,240 --> 00:01:52,280 Speaker 3: if I don't digitize my operations, my company will no 37 00:01:52,360 --> 00:01:55,840 Speaker 3: longer be viable in less than a decade. So we 38 00:01:55,840 --> 00:01:59,320 Speaker 3: were the IT backbone for companies all over the world. 39 00:01:59,360 --> 00:02:01,800 Speaker 3: How do they manage it's their assets, run their operations, 40 00:02:01,880 --> 00:02:06,800 Speaker 3: secure their operations, all things digital having to do with it. 41 00:02:07,360 --> 00:02:08,320 Speaker 2: That's what we started. 42 00:02:08,960 --> 00:02:12,440 Speaker 3: But then, as you know, the employee experience, hybrid work, 43 00:02:12,560 --> 00:02:15,880 Speaker 3: all of these concepts became so important. How do I 44 00:02:16,240 --> 00:02:19,720 Speaker 3: hire people, how do I onboard them, train them, provide 45 00:02:19,720 --> 00:02:21,720 Speaker 3: them all their services on a mobile device. 46 00:02:21,960 --> 00:02:24,760 Speaker 1: We do it now about two years and two and 47 00:02:24,800 --> 00:02:26,680 Speaker 1: a half years ago when you took over your position 48 00:02:26,800 --> 00:02:29,200 Speaker 1: now as the CEO and you're the CEO Chairman of 49 00:02:29,240 --> 00:02:32,600 Speaker 1: Service Now. During that period of time, the technology world 50 00:02:32,639 --> 00:02:34,840 Speaker 1: has had some challenges for sure, and there's been layoffs 51 00:02:34,840 --> 00:02:38,200 Speaker 1: and other things, but you have more than doubled the 52 00:02:38,320 --> 00:02:41,680 Speaker 1: value of service. Now during this period of time, the 53 00:02:41,800 --> 00:02:45,440 Speaker 1: revenues are more than doubled, operating earnings are up about 54 00:02:45,480 --> 00:02:48,560 Speaker 1: eight times, and you've doubled the number of employee based 55 00:02:48,560 --> 00:02:50,720 Speaker 1: So what was your secret sauce When everybody else was 56 00:02:50,760 --> 00:02:52,160 Speaker 1: going this way, you were going this way? 57 00:02:52,240 --> 00:02:54,880 Speaker 3: Well, I give all the credit to the original founder, 58 00:02:54,960 --> 00:02:57,959 Speaker 3: Fred Luddy, because he had the idea and he built 59 00:02:57,960 --> 00:03:02,960 Speaker 3: the platform. People came into the company and expanded on 60 00:03:03,000 --> 00:03:06,120 Speaker 3: that platform. But the original idea was to give people 61 00:03:06,600 --> 00:03:10,200 Speaker 3: technology that truly enabled them to do things they could 62 00:03:10,240 --> 00:03:11,360 Speaker 3: never have done before. 63 00:03:11,800 --> 00:03:14,200 Speaker 2: So it's really a product. 64 00:03:13,800 --> 00:03:18,640 Speaker 3: Centric engineering company at its soul. What I tried to 65 00:03:18,639 --> 00:03:23,120 Speaker 3: bring to the company is continue to expand that, continue 66 00:03:23,160 --> 00:03:26,440 Speaker 3: to build innovation into that platform, but at the same time, 67 00:03:27,160 --> 00:03:32,840 Speaker 3: build a truly global software market leader where everybody understood 68 00:03:33,040 --> 00:03:36,600 Speaker 3: the brand, the hungry and humble nature of how we 69 00:03:36,680 --> 00:03:40,600 Speaker 3: focus on the customer at customers everything here and ultimately 70 00:03:40,960 --> 00:03:41,960 Speaker 3: the value. 71 00:03:41,600 --> 00:03:42,320 Speaker 2: That we deliver. 72 00:03:42,960 --> 00:03:45,520 Speaker 1: Somebody watching this should they say that should buy this 73 00:03:45,560 --> 00:03:48,360 Speaker 1: guy's stock because you can do another next couple of 74 00:03:48,400 --> 00:03:50,280 Speaker 1: years as well. Or is it you kind of plateau 75 00:03:50,400 --> 00:03:52,720 Speaker 1: you can't keep going at the rate you've been going. 76 00:03:52,760 --> 00:03:55,120 Speaker 3: I assume I think we're just getting warmed up. You know, 77 00:03:55,960 --> 00:03:59,800 Speaker 3: it's really interesting. Very few software companies ever make it 78 00:04:00,040 --> 00:04:03,080 Speaker 3: to a billion, even less make it to five billion, 79 00:04:03,440 --> 00:04:06,000 Speaker 3: even less than that make it to ten. Will be 80 00:04:06,080 --> 00:04:10,680 Speaker 3: the fastest enterprise software company to have ever gotten to 81 00:04:10,800 --> 00:04:13,200 Speaker 3: a billion five and ten organically. 82 00:04:14,000 --> 00:04:16,680 Speaker 2: In fact, it's never been done before. The world we 83 00:04:16,760 --> 00:04:20,400 Speaker 2: see is so bright because we're like. 84 00:04:20,800 --> 00:04:24,920 Speaker 3: Five percent penetrated in the enterprises even that use our 85 00:04:24,960 --> 00:04:29,279 Speaker 3: service now, so there's many that don't. And I believe 86 00:04:29,480 --> 00:04:33,400 Speaker 3: like net New Brands, net New logos that are not 87 00:04:33,480 --> 00:04:36,000 Speaker 3: doing business with us should see a show and say, 88 00:04:36,160 --> 00:04:38,320 Speaker 3: I got to get in touch with that guy. And 89 00:04:38,440 --> 00:04:40,760 Speaker 3: the ones that are already doing business with us need 90 00:04:40,760 --> 00:04:46,080 Speaker 3: to say he's talking about a completely different approach to 91 00:04:46,240 --> 00:04:47,760 Speaker 3: digitizing my company. 92 00:04:48,279 --> 00:04:51,279 Speaker 2: Are we looking at them closely enough? If I've achieved that, 93 00:04:51,560 --> 00:04:53,000 Speaker 2: then we'll go in places. Now. 94 00:04:53,080 --> 00:04:57,120 Speaker 1: Sometimes people who run technology companies have a technology background. 95 00:04:57,160 --> 00:05:00,440 Speaker 1: They're engineers. Yeah, you have an MBA from north Western, 96 00:05:00,560 --> 00:05:04,000 Speaker 1: but you're not an engineer. So does the technology jargon 97 00:05:04,480 --> 00:05:06,480 Speaker 1: go past you? Or you can understand all what the 98 00:05:06,520 --> 00:05:08,719 Speaker 1: engineers are saying when they come up with some new product. 99 00:05:08,880 --> 00:05:11,679 Speaker 3: I've been around it for a while now, so while 100 00:05:11,800 --> 00:05:15,400 Speaker 3: it's true that I'm not a coder, it's also true 101 00:05:15,920 --> 00:05:20,039 Speaker 3: that I understand where the idea can fit into a 102 00:05:20,080 --> 00:05:21,080 Speaker 3: customer's world. 103 00:05:21,279 --> 00:05:23,360 Speaker 2: I'll give you an example with AI. 104 00:05:24,480 --> 00:05:28,440 Speaker 3: The expectation of AI is going to be the iPhone moment. 105 00:05:28,800 --> 00:05:32,880 Speaker 3: When the consumer begins using AI in the consumer world, 106 00:05:32,960 --> 00:05:35,760 Speaker 3: they're going to expect that the business leaders to bring 107 00:05:35,800 --> 00:05:38,719 Speaker 3: an AI in to make their world better in the 108 00:05:38,760 --> 00:05:42,360 Speaker 3: office environment. That is why this is the iPhone moment 109 00:05:42,520 --> 00:05:46,440 Speaker 3: for the enterprise. There's no doubt about that. So I 110 00:05:46,560 --> 00:05:50,040 Speaker 3: know that we have to be the market leader in AI, 111 00:05:50,400 --> 00:05:52,839 Speaker 3: which is why we started working on it. And the 112 00:05:52,880 --> 00:05:56,159 Speaker 3: first acquisition I did was LMNAI, which was an AI 113 00:05:56,279 --> 00:06:00,000 Speaker 3: company in Montreal, Canada, and we did that in two thousand. 114 00:06:00,400 --> 00:06:03,960 Speaker 3: In twenty we're working on it all twenty nineteen as 115 00:06:03,960 --> 00:06:06,240 Speaker 3: soon as I came in, But then twenty twenty we 116 00:06:06,279 --> 00:06:09,520 Speaker 3: actually executed that. And the reason for that was they 117 00:06:09,560 --> 00:06:15,240 Speaker 3: had a gigantic group of researchers, data scientists, and engineers 118 00:06:15,440 --> 00:06:20,239 Speaker 3: exclusively working on next gen AAI in large language models. 119 00:06:20,680 --> 00:06:22,840 Speaker 3: And that's how Calm we teamed up with Jensen and 120 00:06:22,880 --> 00:06:25,480 Speaker 3: in Video and we started building them on the Now 121 00:06:25,600 --> 00:06:29,000 Speaker 3: platform and we saw what it could be. And now 122 00:06:29,040 --> 00:06:32,160 Speaker 3: that it's in the platform, we see the commercial sensation 123 00:06:32,279 --> 00:06:35,279 Speaker 3: it'll be for us, but more importantly, we see the 124 00:06:35,279 --> 00:06:40,520 Speaker 3: productivity and the cost savings and revenue growth that our 125 00:06:40,520 --> 00:06:42,040 Speaker 3: customers will get from it. 126 00:06:42,080 --> 00:06:44,240 Speaker 1: Is AI going to reduce the amount of jobs that 127 00:06:44,279 --> 00:06:45,679 Speaker 1: people have now? 128 00:06:45,960 --> 00:06:46,680 Speaker 2: I don't believe so. 129 00:06:47,080 --> 00:06:49,839 Speaker 3: I think if you look at the market today, we 130 00:06:50,000 --> 00:06:54,840 Speaker 3: have a seventeen year situation where it was seventeen years 131 00:06:54,839 --> 00:06:58,360 Speaker 3: ago when the job market was this tight, where the 132 00:06:58,400 --> 00:07:03,320 Speaker 3: openings outpaced the opportunity for candidates to jump in those jobs. 133 00:07:03,320 --> 00:07:04,720 Speaker 2: Because the candidates aren't. 134 00:07:04,440 --> 00:07:08,760 Speaker 3: There, so we rarely are capitalizing on technology to fill 135 00:07:08,800 --> 00:07:12,280 Speaker 3: that void. For example, I talked to a CEO just 136 00:07:12,360 --> 00:07:16,320 Speaker 3: yesterday of a major financial services company was interested in AI, 137 00:07:16,840 --> 00:07:19,440 Speaker 3: but he said, I just can't get enough people to 138 00:07:19,520 --> 00:07:21,600 Speaker 3: do what I need to have done. I said, well, 139 00:07:21,600 --> 00:07:23,120 Speaker 3: how many engineers do you have? He said, I have 140 00:07:23,160 --> 00:07:26,679 Speaker 3: seven thousand. What you need to do is AI enable them, 141 00:07:26,800 --> 00:07:31,080 Speaker 3: because now you can text to code, text to workflow automation, 142 00:07:31,360 --> 00:07:34,880 Speaker 3: or even text to new application development. So we can 143 00:07:34,920 --> 00:07:38,520 Speaker 3: make your engineers fifty percent more productive than they are today. 144 00:07:38,800 --> 00:07:40,520 Speaker 1: Look, you've done a great job, but why don't you 145 00:07:40,520 --> 00:07:43,120 Speaker 1: do something more important like running a private equity firm 146 00:07:43,120 --> 00:07:46,240 Speaker 1: a digital transformation You could do very well financially. 147 00:07:46,280 --> 00:07:47,160 Speaker 2: You ever thought about that? 148 00:07:47,200 --> 00:07:50,600 Speaker 1: And if not, think about it, I'm happy to figure 149 00:07:50,600 --> 00:07:52,280 Speaker 1: out a way to get you in the private equity. 150 00:07:52,000 --> 00:07:53,360 Speaker 2: World to work with you. 151 00:07:53,440 --> 00:07:56,080 Speaker 3: It truly be an honest So we must think about 152 00:07:56,120 --> 00:08:00,000 Speaker 3: different ways that I can help you. 153 00:08:26,560 --> 00:08:30,160 Speaker 1: So let's talk about your past. It wasn't preordained that 154 00:08:30,200 --> 00:08:33,720 Speaker 1: you'd be the CEO of SAP or the CEO of 155 00:08:33,800 --> 00:08:36,480 Speaker 1: Service now and at the top of the technology world. 156 00:08:37,000 --> 00:08:37,920 Speaker 2: Where did you grow up? 157 00:08:38,320 --> 00:08:40,600 Speaker 3: I grew up in a place called Amneyville, Long Island. 158 00:08:40,640 --> 00:08:41,920 Speaker 3: I was born in Flushing, New York. 159 00:08:41,920 --> 00:08:42,360 Speaker 2: Grew up in. 160 00:08:42,280 --> 00:08:46,360 Speaker 3: Amneyville, Long Island, and you know it's that long island grip. 161 00:08:46,960 --> 00:08:49,680 Speaker 1: Now, when you were growing up, were your parents' professional 162 00:08:49,720 --> 00:08:51,400 Speaker 1: workers or were they blue collar workers? 163 00:08:51,400 --> 00:08:52,000 Speaker 2: What did they do? 164 00:08:52,120 --> 00:08:54,760 Speaker 3: I come from a working class family. My dad worked 165 00:08:54,760 --> 00:08:57,720 Speaker 3: for con Edison. He was a troubleshooter for con Edison, 166 00:08:57,840 --> 00:09:00,520 Speaker 3: meaning that you called him this spider. He went into 167 00:09:00,520 --> 00:09:04,600 Speaker 3: the manholes and basically worked on those high voltage lines 168 00:09:04,600 --> 00:09:07,400 Speaker 3: to keep the electric on in New York City, and 169 00:09:07,480 --> 00:09:08,880 Speaker 3: a very dangerous job, and he. 170 00:09:08,800 --> 00:09:10,520 Speaker 2: Was great at it. Was that a safe job? 171 00:09:10,920 --> 00:09:13,199 Speaker 3: No, it was not a safe job, very dangerous job. 172 00:09:13,240 --> 00:09:15,760 Speaker 3: In fact, I always admired my father and the image 173 00:09:15,760 --> 00:09:18,600 Speaker 3: that stayed in my mind. He worked the midnight shift 174 00:09:18,720 --> 00:09:21,800 Speaker 3: most of the time, midnight to eight. I could just 175 00:09:21,880 --> 00:09:25,440 Speaker 3: see him in the driveway chiseling the ice off of 176 00:09:25,480 --> 00:09:29,040 Speaker 3: his windshield, knowing that he was going into New York 177 00:09:29,480 --> 00:09:32,680 Speaker 3: to get into those man holes like the spider and 178 00:09:32,760 --> 00:09:36,240 Speaker 3: soder those cables. And that was to put food on 179 00:09:36,280 --> 00:09:38,240 Speaker 3: the table and give us a very nice life. 180 00:09:38,280 --> 00:09:40,520 Speaker 1: And I had a great life. But you always did 181 00:09:40,520 --> 00:09:43,360 Speaker 1: some working. From what time did you begin working for 182 00:09:43,800 --> 00:09:44,280 Speaker 1: some money? 183 00:09:44,480 --> 00:09:46,800 Speaker 3: I think the first time was around UH ten or 184 00:09:46,840 --> 00:09:49,840 Speaker 3: eleven when I was delivering papers UH door to door 185 00:09:50,360 --> 00:09:52,480 Speaker 3: in Long Island. As a matter of fact, I remember 186 00:09:52,520 --> 00:09:55,400 Speaker 3: the UH the paper was Long Island Press. I don't 187 00:09:55,400 --> 00:09:58,800 Speaker 3: even think they're in business anymore. But my mom, you know, 188 00:09:58,960 --> 00:10:01,080 Speaker 3: co signed for me because you had to buy the 189 00:10:01,120 --> 00:10:04,080 Speaker 3: papers and you got the money back when you collected it. 190 00:10:04,520 --> 00:10:06,840 Speaker 3: So she put up the money for me, got me started. 191 00:10:07,360 --> 00:10:08,000 Speaker 2: And I'll never. 192 00:10:07,880 --> 00:10:12,720 Speaker 3: Forget what it took to be successful as a paper boy. 193 00:10:13,520 --> 00:10:16,280 Speaker 3: Are the same things it takes to be successful today. 194 00:10:16,720 --> 00:10:19,160 Speaker 3: I had to know my customer. I had to know 195 00:10:19,240 --> 00:10:21,240 Speaker 3: how you wanted it. Is it in your door? 196 00:10:21,480 --> 00:10:23,480 Speaker 2: Do you want it wrapped in plastic? Do you get 197 00:10:23,520 --> 00:10:25,640 Speaker 2: upset if I throw it? You know, they were all 198 00:10:25,720 --> 00:10:28,160 Speaker 2: kinds of techniques. But why did I do it? Because 199 00:10:28,160 --> 00:10:29,880 Speaker 2: I wanted them to be happy and I wanted them 200 00:10:29,920 --> 00:10:30,840 Speaker 2: to give me a good tip. 201 00:10:31,480 --> 00:10:33,280 Speaker 1: Well, you wrote a book about your life, and in 202 00:10:33,320 --> 00:10:35,480 Speaker 1: that book you talk about the fact that sometimes people 203 00:10:35,520 --> 00:10:37,679 Speaker 1: didn't pay you and you had to go and kind 204 00:10:37,679 --> 00:10:39,520 Speaker 1: of ask them to pay for two or three weeks. 205 00:10:39,880 --> 00:10:40,600 Speaker 2: Was that hard to do? 206 00:10:40,840 --> 00:10:43,360 Speaker 3: It was because you know when I went there and 207 00:10:43,440 --> 00:10:45,960 Speaker 3: I asked them for ten bucks, and you know that's 208 00:10:46,000 --> 00:10:48,440 Speaker 3: a lot of money for paper. But I'm like, yeah, 209 00:10:48,480 --> 00:10:51,200 Speaker 3: but you know you three weeks in the arrears and 210 00:10:51,240 --> 00:10:53,600 Speaker 3: the technique there was not only to get to ten, 211 00:10:53,760 --> 00:10:56,360 Speaker 3: but hopefully get twelve so I would get a nice 212 00:10:56,400 --> 00:10:59,920 Speaker 3: tip as well. And you know, I kept very good records. 213 00:11:00,200 --> 00:11:02,240 Speaker 3: It wasn't too automated. It was a little book with 214 00:11:02,400 --> 00:11:05,560 Speaker 3: check marks, and I was just showing them the facts. 215 00:11:05,720 --> 00:11:08,000 Speaker 3: And if I show them the facts and you just know, 216 00:11:08,160 --> 00:11:10,320 Speaker 3: heart to heart with people, they'll respect you. 217 00:11:10,600 --> 00:11:14,800 Speaker 1: Later as a teenager, you bought a delicatessen. Yes, how 218 00:11:14,800 --> 00:11:16,280 Speaker 1: old were you when you bought a delicatesta? 219 00:11:16,360 --> 00:11:19,240 Speaker 3: I think we were about sixteen in that sixteen turning 220 00:11:19,320 --> 00:11:20,439 Speaker 3: seventeen something like that. 221 00:11:20,480 --> 00:11:22,359 Speaker 1: Where did you get the money to buy a delicatessen? 222 00:11:22,600 --> 00:11:24,960 Speaker 1: I didn't have any I was working three jobs. 223 00:11:25,120 --> 00:11:29,600 Speaker 3: I was working at an Italian restaurant, VIP type Italian restaurant, 224 00:11:29,679 --> 00:11:35,400 Speaker 3: finest supermarket town of Amneville. Always three jobs, whatever I 225 00:11:35,400 --> 00:11:38,360 Speaker 3: could fit in, and it was kind of chaotic. And 226 00:11:38,440 --> 00:11:40,560 Speaker 3: one day so I helped want it sign in this 227 00:11:40,679 --> 00:11:44,040 Speaker 3: deli and I traded in all those hours to go 228 00:11:44,160 --> 00:11:46,360 Speaker 3: to the Delhi because the owner said, I can. 229 00:11:46,240 --> 00:11:47,600 Speaker 2: Give you all the hours you need. 230 00:11:48,360 --> 00:11:52,000 Speaker 3: But I took my bow tie from the restaurant, my 231 00:11:52,120 --> 00:11:56,880 Speaker 3: white shirt, my tuxedo pants and upgraded the delicate testsin 232 00:11:57,280 --> 00:12:00,640 Speaker 3: to how we would serve customers as a kid. Because 233 00:12:00,640 --> 00:12:02,280 Speaker 3: I knew it worked at the restaurant, I'm like, well, 234 00:12:02,280 --> 00:12:05,599 Speaker 3: I wouldn't no work here. And that led to a 235 00:12:05,760 --> 00:12:08,880 Speaker 3: very good relationship because when he wanted to sell, he 236 00:12:08,880 --> 00:12:11,800 Speaker 3: couldn't have any buyers because nobody wanted to buy it 237 00:12:11,840 --> 00:12:15,559 Speaker 3: because it was sun Mark Industries, the Sunoco gas station actually. 238 00:12:15,240 --> 00:12:15,800 Speaker 2: Owned the land. 239 00:12:15,800 --> 00:12:18,160 Speaker 3: They'd only give you a one year lease. He wanted 240 00:12:18,200 --> 00:12:20,200 Speaker 3: twenty five thousand. Everyone was like, why would I give 241 00:12:20,200 --> 00:12:22,839 Speaker 3: you twenty five thousand. They could take this lease away 242 00:12:22,840 --> 00:12:25,800 Speaker 3: from me in an instant. I said, look, after no 243 00:12:25,840 --> 00:12:28,360 Speaker 3: one else came to him, I'll give you five thousand. 244 00:12:28,520 --> 00:12:30,960 Speaker 3: He said seven thousand with interest. You pay me back 245 00:12:30,960 --> 00:12:33,080 Speaker 3: in a year. If you don't make your payment, I 246 00:12:33,160 --> 00:12:37,119 Speaker 3: automatically repossessed a business. I said, great, So I still. 247 00:12:36,880 --> 00:12:41,040 Speaker 2: Had the machine get that money. No, I didn't. It 248 00:12:41,080 --> 00:12:43,480 Speaker 2: was a loan from him, only alone. It was only alone. 249 00:12:43,559 --> 00:12:45,839 Speaker 3: It was only alone, and if I didn't pay him, 250 00:12:45,880 --> 00:12:47,040 Speaker 3: I wouldn't have had the business. 251 00:12:47,080 --> 00:12:49,280 Speaker 2: But all of. 252 00:12:49,160 --> 00:12:52,960 Speaker 3: The people that brought the beer, bought the cigarettes, brought 253 00:12:53,000 --> 00:12:56,640 Speaker 3: the potato chips. All the vendors basically said, we'll front 254 00:12:56,679 --> 00:12:59,920 Speaker 3: you the first delivery on the arm, I said, i'd 255 00:13:00,000 --> 00:13:02,520 Speaker 3: I want anything for free. I'll always owe you that money. 256 00:13:02,720 --> 00:13:04,920 Speaker 3: So the day I sell or clothes, you get your 257 00:13:04,920 --> 00:13:07,560 Speaker 3: money back. Meanwhile, you know how I got done money back. 258 00:13:08,600 --> 00:13:12,360 Speaker 3: That was early days of video games, and I put 259 00:13:12,400 --> 00:13:15,559 Speaker 3: asteroids in pac Man and some dinosaur game. My brother 260 00:13:15,640 --> 00:13:18,079 Speaker 3: built the wall and I learned this. 261 00:13:18,080 --> 00:13:18,560 Speaker 2: At the mall. 262 00:13:18,640 --> 00:13:22,280 Speaker 3: I saw the kids plucking quarters Antonia's machines one after another. 263 00:13:22,320 --> 00:13:24,160 Speaker 3: I said, Wow, I'll build a game room on the 264 00:13:24,200 --> 00:13:24,920 Speaker 3: side of the store. 265 00:13:25,400 --> 00:13:26,080 Speaker 2: We did that. 266 00:13:26,679 --> 00:13:30,120 Speaker 3: I made more money split in the quarters with the 267 00:13:30,120 --> 00:13:33,359 Speaker 3: guy that actually owned the machines than I did slicing 268 00:13:33,800 --> 00:13:35,080 Speaker 3: meat and making sandwiches. 269 00:13:35,200 --> 00:13:36,800 Speaker 1: What did your parents say, you're supposed to be going 270 00:13:36,840 --> 00:13:38,599 Speaker 1: to high school? Did they say, how about going to 271 00:13:38,640 --> 00:13:39,160 Speaker 1: high school? 272 00:13:39,280 --> 00:13:42,480 Speaker 3: I'm so blessed because my mom, who's the best, and 273 00:13:42,640 --> 00:13:44,720 Speaker 3: people that I knew that were great friends of mine. 274 00:13:44,960 --> 00:13:47,520 Speaker 3: They actually worked in the store when I was at school, 275 00:13:47,679 --> 00:13:50,040 Speaker 3: holding the place up. And then when I came out 276 00:13:50,080 --> 00:13:52,360 Speaker 3: of school, I got right behind that counter and worked 277 00:13:52,360 --> 00:13:52,920 Speaker 3: till midnight. 278 00:13:52,960 --> 00:13:55,400 Speaker 1: All right, So you graduated from high school? And did 279 00:13:55,400 --> 00:13:56,240 Speaker 1: you go to college? 280 00:13:56,280 --> 00:13:56,640 Speaker 2: I did. 281 00:13:56,800 --> 00:14:00,679 Speaker 3: I went to Dowling College in Oakdale, Long Island, because 282 00:14:01,240 --> 00:14:03,600 Speaker 3: I could do all my classes on Tuesday and Thursday 283 00:14:04,160 --> 00:14:06,480 Speaker 3: and then be in the store all the other days. 284 00:14:06,760 --> 00:14:07,160 Speaker 2: So when you. 285 00:14:07,120 --> 00:14:09,480 Speaker 1: Graduated from college, were you're still owning the delicatessen. 286 00:14:09,640 --> 00:14:13,000 Speaker 2: Yes, I was, and at that time I made a decision. 287 00:14:13,360 --> 00:14:16,520 Speaker 3: I got a job at Xerox, which was a dream job, 288 00:14:17,240 --> 00:14:19,360 Speaker 3: and at that time I sold it and then we 289 00:14:19,440 --> 00:14:21,520 Speaker 3: invested that money in a great beach house with my 290 00:14:21,560 --> 00:14:23,160 Speaker 3: parents down in Mertal Beach, South Carolina. 291 00:14:23,280 --> 00:14:25,960 Speaker 1: So your job at Xerox was to be a salesman. Yes, 292 00:14:26,160 --> 00:14:29,720 Speaker 1: you're selling what was a complicated product at the time. 293 00:14:29,520 --> 00:14:33,040 Speaker 3: But at that time was copiers, and it was electronic 294 00:14:33,160 --> 00:14:37,800 Speaker 3: typewriters and printers and fax machines and all at So. 295 00:14:37,800 --> 00:14:39,400 Speaker 1: You did that for seventeen years. 296 00:14:39,680 --> 00:14:41,440 Speaker 2: I was at Xerox for seventeen years. 297 00:14:41,720 --> 00:14:44,680 Speaker 3: I sold door to door for a couple of years 298 00:14:44,720 --> 00:14:48,480 Speaker 3: and then got promoted and ultimately became a division president 299 00:14:48,520 --> 00:14:51,320 Speaker 3: and corporate officer like my mid thirties at Xerox. 300 00:14:51,640 --> 00:14:54,160 Speaker 1: So one time you thought, maybe at the beginning, you 301 00:14:54,200 --> 00:14:56,920 Speaker 1: could aspire to be the CEO of Xerox, But you 302 00:14:56,960 --> 00:14:59,120 Speaker 1: had an offer to leave, and why did you take 303 00:14:59,160 --> 00:14:59,520 Speaker 1: the offer? 304 00:14:59,640 --> 00:15:03,080 Speaker 3: I did it because I stopped learning. You know, at 305 00:15:03,080 --> 00:15:05,120 Speaker 3: that time, it was like, what else am I going 306 00:15:05,160 --> 00:15:08,800 Speaker 3: to do? All I really want is the CEO job 307 00:15:09,600 --> 00:15:12,080 Speaker 3: and the steps left before I'll get it. 308 00:15:12,320 --> 00:15:15,240 Speaker 2: And I started thinking that's not the right reason to stay. 309 00:15:15,440 --> 00:15:17,800 Speaker 3: So Gardner Group offered me a job to be the 310 00:15:17,800 --> 00:15:21,520 Speaker 3: president there. I was very excited about that, and I 311 00:15:21,520 --> 00:15:26,520 Speaker 3: felt that it advice and really meeting all the technology 312 00:15:26,640 --> 00:15:29,720 Speaker 3: leaders of the world and advising them would really get 313 00:15:29,760 --> 00:15:31,120 Speaker 3: me sharpened up for anything. 314 00:15:31,240 --> 00:15:33,240 Speaker 1: All Right, you took that job, but you didn't stay 315 00:15:33,240 --> 00:15:34,280 Speaker 1: there that long, right. 316 00:15:34,160 --> 00:15:38,880 Speaker 3: I didn't know I missed the big technology stage. 317 00:15:38,960 --> 00:15:40,520 Speaker 2: That's kind of what I really wanted to do. 318 00:15:40,600 --> 00:15:43,680 Speaker 3: So I went to CEBL Systems to run worldwide sales 319 00:15:43,680 --> 00:15:48,480 Speaker 3: and operations for SEBEL in California, and I learned the 320 00:15:48,480 --> 00:15:49,720 Speaker 3: software industry at SEBYL. 321 00:15:50,160 --> 00:15:53,520 Speaker 1: So after that, you then took a position as the 322 00:15:53,560 --> 00:15:57,320 Speaker 1: head of SAPs America. Is correct now SAP was a 323 00:15:57,360 --> 00:15:59,880 Speaker 1: software company. Well, what was its innovation that made SAP 324 00:16:00,080 --> 00:16:02,320 Speaker 1: such a strong company even at the beginning? 325 00:16:02,520 --> 00:16:03,760 Speaker 2: Yeah, they call it ERP. 326 00:16:04,280 --> 00:16:09,560 Speaker 3: Just to break down ERP running financial systems for the 327 00:16:09,600 --> 00:16:13,760 Speaker 3: biggest companies in the world. Connecting that based on the industry, 328 00:16:13,800 --> 00:16:17,600 Speaker 3: to supply chains, managing human resources. 329 00:16:18,000 --> 00:16:20,160 Speaker 2: Put that into one bucket. You call it ERP. 330 00:16:20,920 --> 00:16:23,800 Speaker 3: And when I got hired by SAP, they were a 331 00:16:23,880 --> 00:16:27,480 Speaker 3: very fine company, but in the Americas they had missed 332 00:16:28,400 --> 00:16:30,320 Speaker 3: twenty four out of twenty five quarters. 333 00:16:30,840 --> 00:16:34,040 Speaker 2: So it was really the operation that was bringing down 334 00:16:34,200 --> 00:16:35,040 Speaker 2: the whole company. 335 00:16:35,400 --> 00:16:37,120 Speaker 3: So they had to fix that because they had five 336 00:16:37,200 --> 00:16:39,880 Speaker 3: CEOs in six years of SAP America. 337 00:16:40,240 --> 00:16:43,000 Speaker 1: You became the co CEO of the entire company at 338 00:16:43,000 --> 00:16:45,320 Speaker 1: one point, and then after five years of that you 339 00:16:45,360 --> 00:16:46,480 Speaker 1: became the sole CEO. 340 00:16:46,840 --> 00:16:50,840 Speaker 3: Yeah, I became the co CEO in twenty ten and 341 00:16:50,880 --> 00:16:53,960 Speaker 3: the sole CEO in twenty fourteen. And what I can 342 00:16:54,000 --> 00:16:56,640 Speaker 3: tell you is it's actually a very nice design. A 343 00:16:56,640 --> 00:16:59,400 Speaker 3: lot of people knock the co CEO model, don't think 344 00:16:59,400 --> 00:17:01,080 Speaker 3: it can have a work. But in our case, I 345 00:17:01,080 --> 00:17:03,760 Speaker 3: had a great partner, Jim Augemann Snaba, who's a great 346 00:17:03,760 --> 00:17:06,560 Speaker 3: friend of mine still to this day, and we had 347 00:17:06,600 --> 00:17:10,240 Speaker 3: a great orientation around our partnership. 348 00:17:10,480 --> 00:17:11,520 Speaker 2: We talked every day. 349 00:17:12,840 --> 00:17:15,320 Speaker 3: Jim was kind of like missed the inside in terms 350 00:17:15,320 --> 00:17:18,280 Speaker 3: of representing development, especially in Germany where we had very 351 00:17:18,359 --> 00:17:21,960 Speaker 3: large engineering and I was the guy on the front lines, 352 00:17:22,119 --> 00:17:26,040 Speaker 3: you know, moving the number and working with the worldwide operations. 353 00:17:26,119 --> 00:17:30,120 Speaker 1: As you were working at SAP or the CEO, things 354 00:17:30,160 --> 00:17:33,040 Speaker 1: are going well, the company's in good shape. What motivated 355 00:17:33,080 --> 00:17:35,600 Speaker 1: you really to do something else? I mean, most people 356 00:17:35,680 --> 00:17:37,359 Speaker 1: at the top when things are going well, they kind 357 00:17:37,359 --> 00:17:38,120 Speaker 1: of stay at the top. 358 00:17:38,680 --> 00:17:41,720 Speaker 3: Yeah, you know, I think I get like the seventeen 359 00:17:41,800 --> 00:17:42,200 Speaker 3: year itch. 360 00:17:42,359 --> 00:17:44,680 Speaker 1: You know, I love seventeen years at your OX, seventeen 361 00:17:44,760 --> 00:17:46,280 Speaker 1: years at the SAP, right. 362 00:17:46,480 --> 00:17:47,560 Speaker 2: At SPA exactly. 363 00:17:47,840 --> 00:17:50,760 Speaker 3: I think after about seventeen years, you know, I kind 364 00:17:50,760 --> 00:17:52,880 Speaker 3: of like feel like I need to do something else. 365 00:17:52,960 --> 00:17:57,520 Speaker 3: So those were two of my greatest experiences. And I 366 00:17:57,560 --> 00:18:00,359 Speaker 3: needed change, you know, And I really did want to 367 00:18:00,400 --> 00:18:03,000 Speaker 3: take service now because I saw what it could be 368 00:18:03,680 --> 00:18:05,920 Speaker 3: and I really did want to make it the best. 369 00:18:06,040 --> 00:18:09,960 Speaker 3: And I felt like my skill set and where they 370 00:18:10,000 --> 00:18:11,680 Speaker 3: were and what they needed was a good match. 371 00:18:11,800 --> 00:18:14,720 Speaker 1: So you'll be here until twenty thirty six. In other words, said, 372 00:18:14,720 --> 00:18:15,119 Speaker 1: I don't. 373 00:18:14,960 --> 00:18:18,399 Speaker 3: Know about twenty thirty six, especially with you and private 374 00:18:18,400 --> 00:18:19,480 Speaker 3: equity in my future. 375 00:18:21,040 --> 00:18:24,359 Speaker 1: So you're obviously a very good salesman. What is the 376 00:18:24,400 --> 00:18:25,840 Speaker 1: secret to be a good salesman? 377 00:18:26,359 --> 00:18:28,760 Speaker 3: You can get anything in this life you want if 378 00:18:28,800 --> 00:18:30,920 Speaker 3: you help enough other people get what they want. 379 00:18:40,800 --> 00:18:44,119 Speaker 1: So you're obviously a very good salesman. What is the 380 00:18:44,160 --> 00:18:45,639 Speaker 1: secret to be a good salesman? 381 00:18:46,119 --> 00:18:48,520 Speaker 3: You can get anything in this life you want if 382 00:18:48,560 --> 00:18:52,000 Speaker 3: you help enough other people get what they want. I 383 00:18:52,040 --> 00:18:55,720 Speaker 3: care about what you want. I care about what you need, 384 00:18:56,480 --> 00:19:00,760 Speaker 3: and when I understand that, I can compose solutions. Thanks 385 00:19:00,800 --> 00:19:03,399 Speaker 3: to the great team that I'm fortunate to work with, 386 00:19:03,800 --> 00:19:06,840 Speaker 3: that matter. And if I say something to you, if 387 00:19:06,880 --> 00:19:10,080 Speaker 3: I make a promise to you, no matter what, you 388 00:19:10,200 --> 00:19:11,919 Speaker 3: will get that promise kept. 389 00:19:12,359 --> 00:19:15,320 Speaker 2: I'd never break my word. And I think that's what 390 00:19:15,320 --> 00:19:16,000 Speaker 2: it's all about. 391 00:19:16,480 --> 00:19:18,920 Speaker 1: So in your business career, what's been the best advice 392 00:19:18,960 --> 00:19:20,240 Speaker 1: you've ever received? 393 00:19:20,600 --> 00:19:23,199 Speaker 3: I think the best advice I've ever received is just 394 00:19:24,520 --> 00:19:28,040 Speaker 3: in the long run, play the long game. You know, 395 00:19:28,160 --> 00:19:32,199 Speaker 3: most people grossly overestimate what they can do in the 396 00:19:32,280 --> 00:19:35,320 Speaker 3: short run and grossly underestimate what they can. 397 00:19:35,200 --> 00:19:36,440 Speaker 2: Do in the long run. 398 00:19:36,600 --> 00:19:39,760 Speaker 3: So I've always tried to take a long view and 399 00:19:39,840 --> 00:19:43,560 Speaker 3: not be so focused on just here and now. So 400 00:19:43,640 --> 00:19:46,560 Speaker 3: today I'll have a very complete day in New York City. 401 00:19:46,640 --> 00:19:48,879 Speaker 3: I'll meet some of the biggest CEO business cards in 402 00:19:48,920 --> 00:19:51,960 Speaker 3: the world. But as I make those trips, I'm constantly 403 00:19:52,040 --> 00:19:55,439 Speaker 3: thinking what do we got to look like five years 404 00:19:55,440 --> 00:19:58,639 Speaker 3: from now or maybe even ten years from now to 405 00:19:58,840 --> 00:20:02,600 Speaker 3: keep up with having ideas that they don't even know 406 00:20:02,720 --> 00:20:07,160 Speaker 3: they need to know about, but we need to know 407 00:20:07,560 --> 00:20:10,199 Speaker 3: where we need to take them. We have to invent 408 00:20:10,280 --> 00:20:13,359 Speaker 3: the future we want. We can't wait for somebody else 409 00:20:13,359 --> 00:20:14,800 Speaker 3: to do it and try to copy them. 410 00:20:14,840 --> 00:20:18,080 Speaker 2: It's already too late. So constantly trying to see around 411 00:20:18,080 --> 00:20:18,760 Speaker 2: those corners. 412 00:20:19,200 --> 00:20:22,200 Speaker 1: Long view, what's the worst business advice you ever got? 413 00:20:23,240 --> 00:20:26,080 Speaker 1: Go for the money, don't go for the money. 414 00:20:26,960 --> 00:20:29,560 Speaker 3: And I would just say, like any career choice you make, 415 00:20:30,160 --> 00:20:33,679 Speaker 3: any deal that you do, it's not about the money. 416 00:20:33,920 --> 00:20:36,840 Speaker 3: The money is nice to have, but it's much better 417 00:20:37,400 --> 00:20:39,640 Speaker 3: to do things that are sustainable. 418 00:20:39,880 --> 00:20:41,880 Speaker 2: So when you take a job, do it. 419 00:20:41,800 --> 00:20:45,000 Speaker 3: Because you're love and on that culture and you believe 420 00:20:45,000 --> 00:20:47,639 Speaker 3: it's a match with your personal DNA and who you 421 00:20:47,720 --> 00:20:52,320 Speaker 3: really are. When you're doing a commercial agreement, yeah, the 422 00:20:52,400 --> 00:20:55,479 Speaker 3: transaction's nice and you want to win it and you 423 00:20:55,520 --> 00:20:59,760 Speaker 3: want to accomplish things, but that relationship is so much 424 00:20:59,800 --> 00:21:03,719 Speaker 3: more important because that is sustainable and it's long term. 425 00:21:04,119 --> 00:21:07,919 Speaker 1: So your ambitions is to grow the company and maybe 426 00:21:07,920 --> 00:21:10,280 Speaker 1: do something else later on after you're happy with what 427 00:21:10,280 --> 00:21:13,199 Speaker 1: you've done here, any aspiration to ever go in government 428 00:21:13,320 --> 00:21:14,440 Speaker 1: or public service, you. 429 00:21:14,400 --> 00:21:15,199 Speaker 2: Know, I would love to. 430 00:21:16,200 --> 00:21:19,560 Speaker 3: I do think that there's a place to give back 431 00:21:19,760 --> 00:21:24,240 Speaker 3: and to serve, and I think public service needs executives 432 00:21:24,240 --> 00:21:29,000 Speaker 3: that have experience, especially global experience, where they've actually physically 433 00:21:29,080 --> 00:21:31,919 Speaker 3: been to all these places around the world and have 434 00:21:32,000 --> 00:21:35,760 Speaker 3: a sense of culture and the dynamism of humans no 435 00:21:35,800 --> 00:21:38,760 Speaker 3: matter where they are located, and how to really do 436 00:21:38,880 --> 00:21:41,800 Speaker 3: the right thing, not just the convenient thing. 437 00:21:42,240 --> 00:21:44,240 Speaker 2: So it would be an honor to someday do that 438 00:21:44,440 --> 00:21:46,240 Speaker 2: up the road. It's way up the road, but I 439 00:21:46,240 --> 00:21:48,440 Speaker 2: wouldn't rule it out. Now. 440 00:21:48,480 --> 00:21:51,560 Speaker 1: In twenty fifteen, you were walking down the steps of 441 00:21:51,600 --> 00:21:56,480 Speaker 1: your brother's house and you fell down and glass fell 442 00:21:56,520 --> 00:21:59,240 Speaker 1: into your eye or went into your eye. Can you 443 00:21:59,320 --> 00:22:02,760 Speaker 1: ebscribe what happened and how you dealt with that of 444 00:22:02,800 --> 00:22:03,160 Speaker 1: your eye. 445 00:22:03,400 --> 00:22:06,760 Speaker 2: It was a rough night because I had a giant. 446 00:22:06,480 --> 00:22:11,200 Speaker 3: Water glass, very thick, slipped on the stairs and met 447 00:22:11,680 --> 00:22:17,679 Speaker 3: a concrete foundation and glass and my face and the 448 00:22:17,720 --> 00:22:20,720 Speaker 3: glass actually went through my eye and cut it in half. 449 00:22:21,520 --> 00:22:23,640 Speaker 2: And you know, dealing with that. 450 00:22:23,840 --> 00:22:27,840 Speaker 3: Was a pretty traumatic experience, to say the least. But 451 00:22:28,280 --> 00:22:30,960 Speaker 3: I'm so blessed to be here, and I think I 452 00:22:31,000 --> 00:22:34,439 Speaker 3: have a greater appreciation for everything. And I've also learned 453 00:22:34,920 --> 00:22:38,399 Speaker 3: that vision is not just about what you see, but 454 00:22:38,480 --> 00:22:41,720 Speaker 3: it's how you make other people feel, and how you 455 00:22:41,760 --> 00:22:43,800 Speaker 3: feel by making other people feel good. 456 00:22:43,960 --> 00:22:44,760 Speaker 2: So you had us. 457 00:22:44,760 --> 00:22:47,200 Speaker 1: I read about eleven surgeries to kind of shave your 458 00:22:47,200 --> 00:22:49,840 Speaker 1: eye or yeah, and ultimately they could not shave your eye. 459 00:22:49,880 --> 00:22:52,800 Speaker 2: That's correct. I lost that battle, but I think I 460 00:22:53,160 --> 00:22:54,000 Speaker 2: want a bigger war. 461 00:22:54,640 --> 00:22:57,959 Speaker 1: Looka, it's an incredible story. A congratulations. You started with 462 00:22:58,200 --> 00:23:02,119 Speaker 1: virtuy nothing and built up up great reputation in so 463 00:23:02,160 --> 00:23:03,080 Speaker 1: many different industries. 464 00:23:03,119 --> 00:23:04,960 Speaker 2: So thank you. I wish I had bought. 465 00:23:04,760 --> 00:23:06,880 Speaker 1: Your stock when you came here, but I can still 466 00:23:06,880 --> 00:23:08,520 Speaker 1: buy the stock in the future, I guess right, not 467 00:23:08,560 --> 00:23:09,280 Speaker 2: Too late, David