integrity
is closely tied
to trust
This week we get Up-Close with Rhodri Darch, Managing Director at Everrati and former Chief Operating Officer at Oodle Car Finance. In this discussion, Rhodri highlights the core skills that operators require, regardless of their company’s stage of growth. Additionally, he dissects the importance of adaptability and continuous learning in leadership.
What is your career highlight to date, and what has really influenced you as a leader?
It is interesting, I think over your career the standout moments change, and sometimes with hindsight the hardest moments at the time become highlights as they’re the biggest driver of development. A standout for me was transitioning into a C-suite role for the first time, and working at Kindred Group for a Plc, and essentially being asked to change the way the company worked and operated, was a big step up. Historically, they hadn’t had a central strategy function so trying to manage and change the behaviour of my peers as the new one on the team meant that I really had to up my game. This was the case not only in terms of managing upwards but also managing peers. Another big learning in this time was understanding the shadow that you cast on the organisation everyday as an executive. Understanding that what might seem a minor throw away comment or huff of frustration to you as an executive could send an unintended signal with unintended consequences.
Another significant change was transitioning to a different sector. Shifting from an area where I was an expert, well-versed in the organization's intricacies, and knowledgeable about how things worked, was a noteworthy shift. I was at Kindred Group for 11 years, I was deeply involved in building a lot of the technology, products, and strategies and I knew everyone. Suddenly, I went to Oodle as the newbie COO and people were looking to me to give them the answer, yet I didn’t have the experience in that sector or that familiarity with the organization. Yet, you’ve still got to deliver the big project and take some weighty responsibilities and answer those questions. So that experience was another big moment of stepping up and of development. I learnt to embrace the transferable qualities of my past experiences and how to apply them in a new context, and that sometimes what you worry might seem like dumb questions born out of a lack of direct experience are actually exactly the questions companies need to be asking. Breaking down group think and rivers of thinking. Since embracing the benefits of being an outsider coming in with a fresh perspective and getting over the fear of being perceived as ineffective due to a lack of niche knowledge, I’ve had very positive feedback for daring to challenge and being open to saying when I don’t know!
“ I’ve had very positive feedback for daring to challenge and being open to saying when I don’t know! ”
In your opinion, do you need different GM skills for different stages of company startup scale-up listed?
I think there is a difference in the way the job operates, but there are some common components. A lot of it boils down to the basics, like building trust. Trust is absolutely key, no matter what stage of growth you're in. You must work diligently to build that trust with both upper management and the board, as well as your team, by doing what you say you're going to do, avoiding over-promising, and not making unrealistic commitments. Be straightforward and ensure you meet deadlines, without dodging responsibilities as actually delivering and executing is what builds that trust horizontally to your peer group; you should play fairly and transparently, supporting your colleagues when needed, and avoid unnecessary competition. By doing so, they’re more likely to show up when you ask them to do remarkable things and stretch beyond their comfort zones. The dedication and effort they invest will be reciprocated by your respect and care for them. This approach aligns with what's best for both the team and the company.
Integrity is closely tied to trust. The business world is moving in a positive direction, with more companies emphasizing diversity, equitable representation, and ethical operations. The way you operate, make decisions, and communicate across the organization significantly affects this. Effective communication is another core attribute, especially in the digital realm, where change occurs rapidly. New situations may arise, estimates can be flawed, and you must replan to ensure optimal resource utilization. Effective communication means providing not only situational awareness but also a clear strategic direction, allowing your team to make informed decisions and work cohesively.
The ability to say no and prune effectively is another valuable skill set, although it becomes more critical as a business scales. In the startup phase, you typically aim to keep opportunities open, but as you grow, you need to prune unproductive activities and focus on what's most essential. This becomes increasingly crucial when a business gets to the stage where the CEO won’t necessarily know every employee personally and can't be involved in every decision that is made. Pruning out unproductive activity ensures that the organization stays aligned with its primary objectives, especially in times of significant growth.
I think during tough times, there arises an even greater need for these core competences that I have been discussing. As you progress, the space and opportunity to overlook the basics evaporates. You need to engage in more rigorous pruning activities, especially if you're potentially capital-limited. Ensuring the optimal deployment of your capital against the activities you genuinely want to pursue becomes essential. Pruning activities become critical.
Effective communication and aligning resources are also crucial. Particularly in the current economic climate, employees are under pressure, both at home and at work. They worry about job security and their ability to cover their bills, given the cost of living crisis. It's imperative that they can trust their leaders. As a leader, you need to invest time in walking the walk and talking the talk, reassuring your team members and communicating the state of the business.
From my perspective, it all boils down to doing the basics of leadership better and focusing on core competencies. Spending less time on peripheral activities and doubling down on the essentials is key. Over the last 12 to 24 months, I've noticed a strong emphasis on economic fundamentals. We've returned to the core economic focus of the business, testing core hypotheses, validating activities, calculating return on investment, and reducing distractions. There's a greater focus on execution with a smaller set of tasks, a renewed emphasis on core customer groups, products, and activities. The focus is shifting not only towards efficiency but also effectiveness – how well resources are deployed and the returns they yield. In some cases, it might involve spending more for a better return on investment.
How has the current economic climate and market context impacted your broader strategy?
Expanding on the above, what then would be your advice to GM’s leading through economic challenges for the first time?
Once again, I think you need to be visible and present, right? I believe that's one of the key principles. We've transitioned to a hybrid working environment, which has put pressure on us as leaders to increase output, manage workloads, and deal with various pressures. Interestingly, many people gain extra hours from working at home due to the time they save on commuting. However, this scenario highlights that your team needs you more than ever. They require your visibility, your communication, and your presence. Even in a remote setting, they need those moments of interaction. Some of this interaction is physical, such as spending time with teams on-site if you have them.
Therefore, my advice would be to invest time with your team, and remember that it's not just about quantity, quality matters too. Be prepared, factor this into your work plan, and focus on maintaining morale. This concept may sound like an "armyism," but it's genuinely vital. It doesn't necessarily mean casual Fridays; it's more about planning, thinking, and prioritizing the well-being and interests of your team at the core of your actions.
What trends have you noticed emerging recently and what direction do you think the tech sector will take in this space over the next 12-24 months.
In terms of what's on the horizon, I'm genuinely excited about sustainability technology. The work we’re doing at Everrati, where we electrify iconic and classic cars is the ultimate form of upcycling and the progress in battery technology and the evolution of repurposing old tech is super interesting to me.
Additionally, I'm keenly interested in the whole field of energy management. It's a hot topic right now, with discussions around the environmental impact, cost, sustainability management, and the concept of "prosumers" who both consume and produce energy. This includes generating home energy, storing it, transferring it back to the grid, or even selling it back into the power marketplace. I believe this area has fantastic potential, and it's just beginning to gain momentum. We might be at the start of the hype cycle, transitioning from early adoption to the "trough of disillusionment" before reaching a productive phase, but I think it is still headed in an exciting direction.
Another area that fascinates me is the convergence of ecosystems, particularly in payments and identity management. It is intriguing to witness the integration of what were once distinct verticals. For instance, major card schemes are getting into identity management, and companies like Apple are not only entering the embedded finance arena but also exploring embedded identity. They're even leveraging their own data for credit risk assessment and entering the "buy now, pay later" space. This meshing together of previously separate domains by superpowers in the industry is both disruptive and consumer-friendly. Once you're deep into an ecosystem like Apple's, it's remarkably challenging to leave, which I find quite interesting.
Lastly, I'm thrilled about advancements in the world of big data and AI. I established a big data platform and team back in 2016-2017, right at the start of the hype cycle. We began exploring recommendation engines and self-learning algorithms. Now, it's fantastic to see these technologies coming of age. Innovations like Chat GPT are breathing new life into AI, and we're finally witnessing real-world, practical applications. It seemed like we were stuck in the "trough of disillusionment" for a while, but suddenly, we're seeing truly exciting developments and tangible use cases. This, I believe, is going to be massive.
“Investing in resilience can serve you well in tackling the challenges of today.”
How do you stay up to date and what resources do you use to keep informed about developments in your sector?
Part of my social media activity includes LinkedIn. It stands out because, unlike many platforms flooded with posts about cats and dogs, it obviously hosts some genuinely interesting content. Over the years, I've put effort into building and nurturing my network there, making it a valuable way to maintain digital connections.
Another aspect involves direct conversations, actually talking and staying in touch with some of these individuals. They are thought leaders in their own right, and you probably have people of similar stature within your network. However, this interaction isn't constant; it ebbs and flows. Currently, I'm doubling down on this approach as I'm actively engaging with a variety of individuals. I'm investing in meetings over coffee, and it's amazing how these connections can trigger sparks of creativity.
During my time at Kindred, where I served as the Chief Strategy Officer, I had the opportunity to cultivate connections by attending conferences and events. These connections acted as a catalyst for exciting advisory work and even some pro bono advisory work, which is not just altruistic but also a source of new learning. It allows you to give back some of the knowledge and benefits you've gained over time. It's important to note that this isn't a one-way street. Engaging with younger founders or individuals climbing the organizational ladder keeps us connected to the ground truth and the reality of evolving changes, which is crucial in our ever-changing landscape.
“ I'm investing in meetings over coffee, and it's amazing how these connections can trigger sparks of creativity. ”
Are there any particular books or podcasts that you can recommend that have influenced your career?
I'd like to emphasize not forgetting the classics. I believe a lot of modern management and leadership theories are new subtly different flavours of old classics. Right now I’m re-reading, for instance, "The One-Minute Manager" by Ken Blanchard, a 1980s classic, and "The 7 Habits of Highly Effective People," another gem from the 1980s.
As well as topping up on the old I like to mix in some new, usually recommendations from leaders I admire. At the moment, I'm reading "Grit" by Angela Duckworth, which I find fascinating. It delves into why passion and resilience are the secrets to success. Investing in resilience can serve you well in tackling the challenges of today. While in the car I’m listening to the Podcast series Acquired, which offers some fascinating and fun analysis of superstar business like Porsche, LVMH and Peloton. All super relevant as I’m working to build Everrati to be a world leading automotive sustainable luxury brand.
