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CEOCoachingInternational
19-YearOldBryceMaddockOn…BuildingTaskUsfrom0to4,500employeesand
$50MillioninRevenue
SteveSanduski: HelloeverybodyandwelcometobacktoanotherepisodeofOnYourMark,GetSet,Grow.I'myourhost,SteveSanduski,andjoiningmetodayisBryceMaddock.BryceisthecofounderofacompanycalledTaskUsandfolkslistentothis,thisisanunbelievablestory.Bryceandhiscofounderstartedthecompanyjustafewyearsago.Theyrecentlytooktheirfirstoutsidefundingandraised$15million.Theyareontracktogenerate$50millioninrevenuethisyear.Theyhave4500employeesandBryce,areyoueven30yearsoldyet?
BryceMaddock: Thankyoufortheintroduction,Steve.Itwasvery,verykind.Ijustturned29inJulysoIguessIam291/4.
SteveSanduski: Thereyougo.Thisisamazingsowelcometotheshow.I'mthrilledtohaveyouhere.Startusoffhereifyouwould,takeusbackafewyearsagowhenyouandJasperstartedthiscompany.Howdidyoucomeupwiththeidea?Whatwasitliketheyarebackintheearlydays?
BryceMaddock: JasperandIhavebeenbestfriendsforoveradecadeandwhenwegraduatedfromhighschoolbothofusgrewupinSouthernCalifornia,wehadthisideathatwewouldbeabletothrownightclubsforhighschoolkidswhichwasacrazyoff-the-wallidea,somethingthatreallyyouhavetobe18yearsoryoungertohavesuchacrazyideabutwefiguredoutawaytodoitandthatwasourfirstbusiness.AllthroughcollegeeverysummerwewouldcomehomeandbewiththrownightclubsatdifferentvenuesthroughoutLosAngeleswheretheaverageagewaslike151/2.
Wediscoveredthattherewasthisloopholeinthelawthatifanightclubcouldservefoodtheycouldservepeopleunderagebutthey'rejustcouldbenoalcoholpresentinallthenightclubsinLAwereclosedonMondayandTuesdaynightsandsowewentinandofferedtorentthevenuesandopenthemuptoeageradolescentsthroughoutSouthernCalifornia.Itturnedouttobeahuge,hugesuccess.Wehad800to1,000kidsshowupeveryweekthroughoutthesummerandwechargedbetween15and$25foradmissiondependingonthevenueandwhattypeofentranceyougot.
Wethoughtentrepreneurshipwaseasy.Wethoughthey,thisisthefasttracktoriches.Whywouldweevergoworkforsomebody?IwasincollegeinNewYorkandJasperwasincollegeinLA.Igraduatedayearearlyandactuallygotajobin
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investmentbankingjusttocontinuetopaythebillsandbeabletoliveinNewYork.WhatendeduphappeningwasasJasperwasgraduatingwecametogetheranddecidedwehavegottogostartournextbigsuccessfulempire.WebrainstormedandbrainstormedandthisoneideacameupandJaspersaidthemostbrilliantideaIcancomeupwithislet'smovetoArgentinaandstartafrozenyogurtshop.
SteveSanduski: Okay,soArgentina.WhyArgentina?
BryceMaddock: ArgentinawastheideaandIsaidthesamething,IsaidJasperwhywouldwemovedtoArgentinaandstartedfrozenyogurtshop?Hesaidtworeasons.Argentinianpeopleloveicecreamandtheyhatethatpeople.Isaidthat'sreallyinterestingcitedtheresearchandweputtogetherabusinessplanandthebusinessplanbasicallywasbasedontwostats.OnewasthatArgentinianseatmoreicecreampercapitathananyothercountryintheworldandthesecondonewasthatArgentinianshavethesecondhighestcaseofeatingdisordersjustafterJapan.Wewereconvinced.Brilliant,thisisthewaytodoit.WewentdownthereandafteramonthofstrugglingquicklydecidedthatstartingafrozenyogurtshopinArgentinawasalittlebittougherthanwehadexpected.A22yearsoldwefindourselveswehadgraduatedfromcollegeandIhadjustquitandinvestmentbankingjobinNewYork,livingwiththeirparentsandwonderingwhatwe'regoingtodotosucceed.
SteveSanduski: Thefirstlessonwasbasicallyifyou'regoingtofail,failfast.
BryceMaddock: Actually,thatwasaverygoodlessoninfailure.Whatwedidwasweactuallywentthereandweaskedpeople,wetalktopeoplewhowereAmericanswhohadmovedtoArgentinaandstartedafoodservicebusinessandweaskedthemabouttheirexperience.Basedontheconsistenthorrorstorieswewerehearingwedecideditwasprobablynotagoodidea.Ithinkthere'ssomedeepvalueandtalkingtopeoplewhohaddoneitbefore.Iwouldn'tdoittoomuchbecauseifyoudoittoomuchyouwillprobablydiscourageyourselffromevergettingstartedwithanythingthatyoujustwanttolookforthoseredflags.
IhadbeeninmyinvestmentbankingdaysandIhadworkedreallyhardandhadthemalotofverytrivialrepetitiveprocessesandastheentitledmillennialintheroomIkeptonsayingthisisbeneathmypaygrade,thisisbeneathmypaygrade.OfcoursenoonelistenedandeventuallytheytoldmeIshouldprobablygogetanotherjobbutintheprocessIthoughttomyselfnotonlyisitbeneathmypaygradebutitjustmakesnosensefortheinvestmentbanktopaymeaheftyinvestmentbankersalaryandpayfortherealestateinNewYorkCityformetodothiswork.
WiththeriseoftheInternetIthoughtIcouldhirepeopleinIndiaorPakistanorsomewheretodothisworkforprobablyatleasthalf,probablylessthanthatversuswhatIwasgettingpaid.Ibegantoexperimentwiththisideaofhowcanwepowerprofessionalsinthedevelopedworldtocollaboratewith
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professionalsinthedevelopingworldinordertogetworkdonemoreefficiently?ThatwastheideaforTaskUsinitially.Wethoughtweweregoingtocreatetheworld'sfirsttasknetworkwhereifyouhadataskyouneeditdoneyoucouldjustpostit,itwouldgetautomaticallyroutedtothepersonwhoissuitedtocompletetheworkandthenyoujustpayforthetimethatittooktocompleteit.Itwasaverynovelidea.
Thefirstversionofthewebsitehadaccountingandlegaladviceandprettymuchanyserviceunderthesunandwetriedtomakethatworkforabout31/2yearsandjustrepeatedlyfailed.Wefoundourselvesflashforward26yearsoldandstilllivinginherparentshouse,stillrunningabusinessthatwasgeneratinglessthan$1millionayearinrevenue.
SteveSanduski: Thisisbackinwhat,2010?Isthatwhenyoustarteditoriginally?
BryceMaddock: Westartedthebusinessoriginallyin2008andittookusprobablyuntil2011,yeahabout2011iswhenweshiftedthebusinessmodel.2011tomakethedecisionthatthisisn'tworking.
SteveSanduski: WasitcalledTaskUsbackthentoo?
BryceMaddock: Itwas,itwascalledTaskUsandtheoriginalversionofthewebsitewasthisbrightorange,Istillhavepicturesofitsomewhere.It'sareallysnazzydesigncirca2008.WethoughtitwasthecoolestWeb2.0layout.Itlookssuperdatednowbutyeah,thatwastheidea.
SteveSanduski: Todaythereisanumberoffirmsthatdothisoutsourcing,backwhenyouarestartinguswereyouoneofthefirstpeopletostartdoingthistypeofoutsourcing?
BryceMaddock: TherewasacouplecompaniesthatweredoingsimilarvirtualassistantworksotherewasacompanycalledAskSundayandtherewasacompanycalledGetFriday.Istilldon'tunderstandwhyeverycompanyinthisspacetendstonamethemselvestheexactsamethingbutthosewerethetwomaincompetitorsandbasicallytheywouldallowyoutohireapart-timeorfull-timevirtualassistantandtheideawasthatyouwouldhireaperson,inthiscaseinIndiaandtheywouldworkforyoubetween10and40hoursaweek.Whatwedidn'tlikeaboutthatmodelwasthatitforcedyoutobuy10to40hoursaweekeverysingleweek.Wewantedtogivetheuserflexibilitytojustsendintheworkthattheyhadandonlypayfortheworkthattheyhad.
Itturnedoutthattherewasareasonwhytheywantedtofixthemodelandmakeyoubythesamenumberofhoursaweekfromthesameassistant.Aswefoundinourmodelthevirtualassistantmodelwasverychallengeandthereasonwasthatinordertodoworkreallywellforanindividualyouhavetounderstandthatindividual'spreferencesandso,Steve,thewayyouwantaPowerPointpresentationdoneisprobablygoingtobedifferentthanthewayI
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wanttoPowerPointpresentationdone.Lackingthatconsistencywasreallydifficulttodelivertopersonalexpectationsandthenhavinganetworkofpeopleallovertheworldmadeitreallydifficulttomanagethequality.Youwouldfindpeoplewhowereincredibleandtodoamazing,amazingworkandthenyouhavealotofpeoplewhowerebelowaverageintermsoftheworkthattheyproducedandinthosecasesJasperandIfoundourselvesstayingupuntiltwoor3o'clockinthemorningredoingPowerPointpresentationsandthinkingattheendofthiswe'regoingtohavetosplit$10anhourwithKhalilinPakistanwhodidtheoriginalversionofthis.
SteveSanduski: Youarethinkingasaninvestmentbankeratthisworkisbeneathmeandhereyouare2o'clockinthemorningtoaPowerPointpresentations.
BryceMaddock: Iwilltellyousomething,IthoughtwhenIwas22thisworkisbeneathmeandwhatIhaverealizedsevenyearslateristhatthereisnothingbeneathyou,particularlythehigheryougoasaleaderthemorewillingyouneedtobetoleadfromthefrontandreallyunderstandtheworkofyourfrontlineworkers.InfactoneofthethingsIpridemyselfonnowisforbiggeraccountsactuallysittingdownanddoingtheworkthatthepeoplewhoareactuallyansweringtheemails,transcribingthevoicemailsormoderatingthephotosthatIactuallydothatworkmyselftoaleastexperiencewhatitisliketobeonthefrontlines.
SteveSanduski: Ithinkthatisgreatfromaleadershipstandpoint.Thefirstthreeyearsyouwerekindofstruggling,Ithinkyousaidyouwereuptomaybe$1millioninrevenueandthenitsoundslikemaybeyoudidsomekindofpivotheretoturnthisthingaroundandhavethisunbelievablegrowththatyouhavehadthepastfewyears.
BryceMaddock: ExactlyandsoeveryonesayswasasapivotthatwasreallybasedonastrategicstrokeofbrillianceandIsayabsolutelynot.IjustwantedtomoveoutofmyparentshousesobadlythatIwoulddoanythingatthatpoint.It'samazing,necessityisreallythemotherofallinvention.Ifyougetbackedintoacornerthethingsyouwillcomeupwithareincredible.JasperandBryce,wehadtoldallofourfriendswe'regoingtogostartthisvirtualassistantnetworkandwithinsixmonthswe'regoingtobeassuccessfulasMarkZuckerberg,right?Hewaskindoftheemblemofentrepreneurialsuccessforourgeneration.
SteveSanduski: Hestillis.
BryceMaddock: Hestillis,yeah.Wefoundourselvesthree,maybe31/2yearslaterwithalotoffriendswhohadjustgottenpromotions,theirfirstpromotionsandwerelivingwithapartmentsandcertainlyhadatleastenoughmoneytotakeagirloutfordinnerontheweekendandhereismeandJasper,wedowithourparents,wearedrivingcarsthatprobablyathinkatthatpointwereasoldaswewereandtheonetreatsweevergotwasonceamonthwewouldgotoSoupPlantationonaFridayafternoontogetherandhaveanall-you-can-eatbuffet.ThatwasourlifestyleandsoIthinkeventuallywewerelikeweneedtofigureoutawaytomakethisbusinessmodelworks.
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Whatwedidiswelookedatwhatwehadthatwasuniqueinthatwerealizewasthereweretwoveryuniquestrengths.OnewaswehadbuiltasmallofficeinthePhilippinesandwehadchosenthePhilippinesafteroutsourcingworkto16differentcountriesbecauseinthePhilippineswewereabletoconsistentlygethigh-qualityworkatarelativelyaffordableprice.TheotherthingthatwehadwaswehadrelationshipsintostartupcompaniesbecausewehadthoughtaboutourselvesasastartupcompanyandsowehadalotoffriendswhowerebeginningtogofromaseriesAtoaseriesB,theyhadbeenearningrevenue.TheyweregettingsometractionintheirproductandtheybegantoreallycomplainaboutI'vegottogetanewoffice,I'vegot10peopledoingcustomersupport.Ifmyproduct10x'sitselfagainnextyearI'mgoingtohave100peopledoingcustomersupportindowntownSanFranciscoorNewYorkcityandhowmygoingtoaffordthat?
Alightbulbwentoffinourheads.Wesaidwecanhelpyouwiththat.Wecancutyourcustomerservicecostoryourcontentmoderationcostoryourgraphicdesigncostsinhalfandwewillguaranteethesamelevelofqualitythatyourcurrentstaffisdelivering.Reallyforthelastalmost4yearsnowthatisinthemodelthatwereportonbuildingandthegrowthhasbeenphenomenal.Wehavegrownsincethenat300%year-over-yearandthepaceatwhichthebusinesshasgrownhasbeenimpressivebutIthinkprobablymoreimpressiveistherosterofclientsthatwehavebeenabletoworkforandthepeopleinthePhilippinesthatwehavebeenabletoattractbecauseoftheuniquenessoftheclientsthatwearesupporting.
SteveSanduski: Let'stalkaboutthisrapidgrowth.Rapidgrowthkilledalotofcompanies.Youcangrowyourselfintobankruptcysohowareyoumanagingafastgrowthandlet'sstartwiththepeople.You'reliterallyhiringthousandsofpeople.Whatkindofsystemsareyouputtinginplacesothatyoucanhire,train,andgetthesepeopleupandrunningandbeprofitableforyourbusinessinsuchashortorder?
BryceMaddock: Ithinkwasreallyinterestingaboutourbusinessisthisyearwehavebeenonapacewherewehavebeenhiringonaveragealmost100peopleaweek.ItblowsmymindbecauseinourLAofficewehiredIthinkweareat35peoplenowsoIthinkwehiredeightpeoplelastquarterandthatwaslikesuchanundertaking,Ican'tevenbelieveit.Eightpeopleandaquarter,wewereinterviewingthewholetimeandnowtheofficefeelscompletelydifferentbecauseyoubasicallyhavebroughtinathirdofthepeoplewhohaven'tbeenheremorethanthreemonths.InthePhilippinestheyhavegotthisdowntoascienceandsoweuseanumberoftoolsandoneofthemwhichweactuallyinvestediniscalledinterviewed.It'saSASbasedplatformthatworksreally,reallywellforinpersonmasshiring.
BasicallysomebodywalksintotheTaskUsoffice,theyarehandedaniPad,theytakeapictureoftheirresumeandapictureofthemselves.Theyfilluptheirbasicinformationandthentheywalkintoatestingroomandtheapplicationfollowsthem.Theysitdownandtheygothroughaseriesoftestswhich
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determinewhethertheyaregoingtofirsthavetheskillstoworkinacallcenterenvironmentatall,andthesearebothskills-basedtestandpsychometrictests,andsecondwhethertheyhavetheskillstoworkonthisspecificclientaccount.Iftheydon'thavetheskillstoworkonaspecificclientaccountwewillretestthemforsomethingdifferent.
Thefinalisaface-to-faceinterviewtomakesurethattheyfitinwithourculturebecausecorevaluesaresuperimportanttousacrosstheentirebusinessfromthefrontlineuptome.IthasbeenareallyimportantpartofoursuccessisourabilitytohirequicklybutIwouldsayequallyasimportantisourabilitytohiretherightpeopleforthejob.
SteveSanduski: Okay,sowhenthatpersonwalksintheofficethatdaytheygothroughthisprocess,willtheygethiredbytheendofthedayoristhereasecondroundofinterviewslater?
BryceMaddock: OurSLA,whichwehavenotyethitbutwe'reworkingourwaytowardsitisatwohouryesornodecision.InthePhilippinesitisdifficulttodescribeintheUSbecausethereisnotreallyacorollarybuttodaythePhilippinescallcenterindustryemploys1millionpeople.Thereare100millionpeopleinthecountrysothatis1%ofthepopulationisemployedbythecallcenterindustry.InthecenterofManilawherewehaveourheadquartersthatisthemassiveconcentrationofcallcentersandcallcenteremployeesandsoyouwillhavepeoplelineup,hundredsofpeopleadaylineuptotakeinterviewsandtoapplyforajob.
Wehavelookedatthisprocessandrealizethatapplicantswhoapplyforajobandgetveryresentfulandrightfullysobecauseitwilloftentakemorethanoneday,itwilltaketwoorthreedaysofcomingbacktotheofficebeforetheygetadecision.Ifyoucanimaginecomingbacktoanofficerepeatedlyandthengettinganojusthowpissedoffyouwouldbeinthatsituation.Wetrytousetechnologytogetadecisionquicklyandweareworkingtowards,we'renotthereyet,butwe'reworkingtowardsanaveragetoourtwoayesornodecision.
SteveSanduski: Okay,sothatworksinthePhilippinesbuthereintheUSyousaidthatyoubroughtineightpeoplelastquarterinyourLA,SantaMonicaofficethere.YouhaveasimilarprocesswhereyouaregoingtohirethosepeopleintwohoursorisitamoretraditionalIwillsay"American"process?
BryceMaddock: Itisamoretraditional.Iwouldsayformanagementlevelandabove,includinginthePhilippines,wehaveamuchmoretraditionalprocessandtheprocessisactuallybased...Whatwedofirstisweputtogetherarolescorecardforanymanagementlevelpositionorabovethemanagers,directors,VPs,inthePhilippinesandintheUS,thereisarolescorecardthisisherearetheKPI'sforthisjob.Itcouldbeforsales,itcouldbeasalesquotaorforourclientservices
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teamwhichmanagesallofourclientrelationshipsitcouldbeacertaingrowthtargetacrossalloftheiraccounts,andthentherearespecificdeliverables.
Herearetheprojectsweexpectyoutoexecuteoninthefirstyear.WewantyoutoimplementanERPsystem,weneedyoutomakesurethattheInternetstaysupintheTaskUsofficewhichisembarrassingbutthatisaproblemforusinSantaMonica.We'vegotperfectInternetinthePhilippinesIcan'tgetperfectInternetinSantaMonica.Thatrolescorecardinformsintheinterviewprocesswhichwelookfor,wehaveasetofquestionsbasedoncompetenciesthatareneededforthatroleandwetrytoaskthesamequestionstothesameapplicants.Weusedtodoitinatandemformatweretwopeoplewouldinterviewoneapplicanttothetimeandnowwearedoingmoremultipleinterviewswhereyouwillbeone-on-onewithmultiplepeopleacrossthecourseoftheday.
WeuseasystemcalledGreenhousewhichisanapplicanttrackingsystem,cloud-based,andreallyanincrediblesystemtotrackapplicantandbasicallywillshareallofourinformationaroundtheapplicants.Fourorfivepeoplehaveinterviewedonepersonandyoucanpullthatinformationandthentherecruitergoesintotheapplicanttrackingsystemattheendoftheday,talkstothehiringmanageraboutwhetherwe'regoingtohirethatpersonornot.ItisamoreintensiveprocessintheUnitedStates.It'sonethatreallyscreensforthetraitsthatweneedtobesuccessfulintheroleandalsoonethatreallyscreensforunderstandingandembracingourcorevalues.WetriedtointegratethatatthefrontlineinthePhilippinesviamakingsurethateverypersonwhoishiredhasaface-to-faceinterviewsothattheyarescreenedforthatbutitiscertainlynotasdetailedasitiswhenyou'rehiringmanagementlevelpositionsandabove.
SteveSanduski: Onemorequickthinghereonthewholestaffingthing,youhavetalkedaboutthecorevaluesandtheculturealittlebitandindoingmyresearchhereitisclearthattheculturethatyouhavedevelopedinthePhilippinesisdramaticallydifferentthanatypicalcompanydownthere.ItsoundsyouhavetakentheSiliconValleyEastCoastandcultureandputitdownthere.Howimportanthasthatbeentodrivingthesuccessofyourcompanyandbeingabletohirethesepeople?
BryceMaddock: Massivelyimportant.ThePhilippines,fascinatingcountry.ItwastheterritoryoftheUnitedStatesintheearly20thcentury,gotitsindependencefromtheUnitedStatesandsincethenhashadaverycloseconnectiontotheUnitedStates.TheywereruledbytheSpanishfor400yearspriortothatandtheyabsolutelyhatetheSpanish.Justcompleteresentment,reallytheonlythingthat'sleftfromthatismassiveCatholicinfluenceinthePhilippinesthatveryfewpeopleevenspeakSpanishinthePhilippinesnowthat70%ofthepopulationspeaksEnglishfluently.Youhavegotacountrythatwasreallyripeforoutsourcingbecauseofitsplaceinthegeopoliticalscene.Whatindicatedthis
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wasthePhilippineshadadifficulttimeinthelate20thcenturycreatingjobs,creatingenoughopportunitiesforthepeopleinthecountry.
Thegovernmentcreatedaprogramcalledoverseasforeignworkerandbasicallywhatitisisagovernment-sponsoredprogramforyoutoleavethecountryandgoworkinanothercountry.Wellintothe2000thebiggestsourceofGDPinthePhilippineswasforeignremittancescomingfrom10millionFilipinoswhowerelivingintheUSandCanadaandmorefrequentlyrecentlytheMiddleEastinplaceslikeQatarandSaudiArabia.Inmyopinionithasruinedthesocialfabricofthecountrybecauseyou'rethebestandthebrightestleavingthecountryandgoingoverseastomakemoney.Therestofthepeoplestayathomeandarereliantonacheckbeingsenttothemfromoverseas.Theproblemisathometheycouldn'tdoanyjobthatwouldmatchtheamountofmoneythattheyaregettingfromtheirfamilythatisoverseas.
Itcreatesthesubstancelifestylewhereyouaredependingonaforeignrelativeandnotdoinganyworkyourself.Thebestandthebrightestleave,itsplitsfamiliesapartsoparentsaren'tabletoraisetheirkids.Thepeopleleftbehindbecomedependentonthisinsteadofworkingforthemselvesandittearsatthesocialfabricofthecountrybecausetherearen'tthepeoplelefttoreallyholdthegovernmenttoaccount.Theoutsourcingindustryhasbeenincrediblebecauseitiscounteractedthismassiveway.What'shappenedisyouhavehadtheopportunitytodaywhichyoudidn'thavebeforeoutsourcingcametothePhilippines.
Youhavetheopportunitytoworkforforeigncompaniesbuttoliveathome.YougettotouchyourkidsintobedatnightbutthenyougettogoworkforanAmericanorCanadianorAustraliancompanyandearnedwagesfromthosecompanies.Thefirsteraofoutsourcingwhichstartedintheyear2000andthePhilippinesandinmyestimationkindoflasteduntil2012whenwereallybegantorampouroperations,thatwasgood.Thatwasgreat.IcanworkforAT&TorforTelstraandIcanlookathome.Amazing.TheproblemisthatthosejobsforAT&TorforanytravelcompanyortelecombusinessintheWestareprettymiserablejobandtheywerecommoditizedandthepeoplewhoweredoingthejobshavebeentreatedlikerobotsthemachines.
Youhavetostayonthephone98%ofthetime,yourworkstationiscompletelylockeddown,youliterallycannotdoanythingexceptforthejobinfrontofyou.Yourbreaktimesprovisionedandinfactifyouhavetogotothebathroomyouneedtowaituntilyouhavegotgreattime.ItisareallymiserableexperienceandsoasaresultofthatattritionwentwayupinthePhilippines,80,90,sometimes100%averageannualattritionsoifyoustartedthejobatthebeginningoftheyearthevastmajorityisyouwouldn'tbedoingitattheendoftheyear,youwouldhavejumpedtoanotherjoborsometimespeoplehavetotakeabreakbecausethestressisjustsogreat.
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Whatwehavebeenabletocapitalizeontodayareaneweraofcompanies.Thesearecompaniesthathavebeencreatedrecentlytheycareaboutcultureandthequalityofservicestheydeliverandthey'rewillingtonotdrivesohardonthemetricsbecausetheyunderstandthathappyemployeeswillbetohappycustomers.Thatisourphilosophy.Webelievethatifwecanworkforincredibleclientsthenwecanattractthebestemployeesandthebestemployeeswilldeliverincrediblecustomerexperienceswhichinturnattractsbetterandbetterclients.ThereisoneotherthingthatisreallydifferentabouttheTaskUsclienttodayversusthefirsteraofoutsourcing.MostofthesupportthatwasbeingdoneinthefirsteraofoutsourcingwasforproductsthatthepeopleinthePhilippinesdidnotuseintheirdailylife.
YouwouldsupporttheNewYorkTimes.Well,theFilipinopeopledonothavenewspapersdeliveredtotheirhousesotheyhavenowayofrelatingtothatexperience.Youwouldsupportanairlinebutmostofthepeopleinthecallcenterindustryhadneverflownonanactualairplane.TaskUstodayover80%ofourclientsarewhatwecallrapidmultinationals.Thesearecompaniesthathavebuiltproductsthathaveinternationalizedreally,reallyquickly.ThinkofacompanylikeTinder.TinderwascreatedwellafterTaskUs.IthinkitwasmaybethreeyearsagobutbecauseitisamobileapplicationandeverybodyinthePhilippinesisasmartphoneithasbeenabletointernationalizeandgetintothehandsofthepeoplewhoareworkinginthePhilippineswithinjustafewmonthsofbeinglaunchedintheUnitedStates.
Itusedtotake50or100yearsforthejumptohappenbutnowithappensautomatically.WhatthatmeansforacallcenterworkerisifIamnowdoingemailsupportandcontentmoderationforTinderIamsupportingaproductthatIuseinmydailylifeorofaproductthatmyfriendsandfamilyarefamiliarwith.Thatcreatesarealaffinityforthebrand.Ithinkultimatelyitcomesdowntoweworkwithclientsthatrespectourculture,thatunderstandthathappyemployeesleadtohappyclients,andultimatelyworkforproductsthataremostlybeingusedinthePhilippinesthemselvessothere'smoreofapersonalaffinityforthem.
SteveSanduski: Itsoundslikeyouaretreatingthemashumansasopposedtotheoldercompanieswhichjusttreatedthemasacogwithinthemachineanymeanstomakesomeprofit.
BryceMaddock: Yeah,Ithinkattheendofthedayitusedtobemetrics,metrics,metrics.Ifyoucan'tgetyourmetricsandyou'reout.Idon'tcarewhatyourstoryis.Todayweliketoleadwithwhoareyouasaperson?Doyouliveourcorevalues?We'regoingtoholdyouaccountableandyouneedtodeliver.Ultimatelyweareinbusinesshereright?Wewanttobuildapersonalconnectionthatreallyisbasedoncorevaluesfirst.
SteveSanduski: Let'scontinuetalkingaboutthisfastgrowth.Wetalkedabouthowyouaregettingthepeopleinthedoor.Howareyoumanagingthecash?Youmentioned
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thatyoujusttookyourfirstroundoffundinghere$15million.Priortothatyoubootstrappedit.IbelieveyourprofitablefromwhatIhaveread.Howareyoumanagingacashsotheyasyouaredoingisrapidgrowththatyouarejustnotburningcashandrunningoutofcash?
BryceMaddock: Sure,soithelpedinthebeginningthatwehadcustomerswhoweinvoiceeverymonthandpaidanditsoundslikeyeahofcourse,everybusinessisthat,butifyouthinkaboutasoftwarebusinessyouhavetoinvestalotofmoneyinbuildingagoodproductbeforeyoustartchargingyourcustomers.Withaservice-basedbusinessassoonasyouaredoingservicesyouarebillingfortheservicesandsothathelpedalot.Westartedthebusinesswhenwewere22yearsoldwith$22,000whichwasthecumulativelifesavingsofJasperandmyself.UntilJuneofthisyearwedidn'treallytime.Thatispurelybasedonthefactthatwewereabletoscaletheproductbasicallybygoingtoourclientsandbillingthemeverymonththanrelyingonthemtopayfortheservicesthatwehadprovided.
Thechallengethatweranintolastyearwasasyoucontinuetotripleeverysingleyearyouthenneedtobuildfacilitiesaheadofyourgrowthandsoourfacilitygrowthupuntilthenhadbeenprettyincrementalinonelocationwherewehadjusttakenanotherfloor,anotherfloor,boughtsomemorecomputersandwereabletobasicallyusethecashflow,theprofitfromthebusinesstoreinvestascapitalexpenditures.Aswelookedat2015werealizedweweregoingtohavetoaddtwonewlocations.Wewantedtomakesurethattheywerestate-of-the-artandwerealizedthatweweregoingtohavetospendmillionsandmillionsofdollarsonbuildingthefacilities.Ultimatelythatiswhatmadeusdecidetoraisethe15million.
SteveSanduski: Okay,soyou'renotyet30yearsoldtogetyouobviouslyhavemadesomereallysmartbusinessesdecisions.WhathaveyoudonetocontinuewithyourdevelopmentandhowareyouabletogofromcomingoutofcollegeandspendingayearortwoininvestmentbankingprogramtowithinjustafewshortyearsbeingtheCEOofacompanywithover4500employees,internationaloperations,hiring1000peopleamonthoraquarter.WhataresomeofthekeythingsthatyouhavelearnedandwhatwouldyousharewiththeotherentrepreneursandCEOsthatarelisteningherethatthesearesomeofthe1,2,or3corethingsthatIisaleaderofafast-growingbusinesshavedoneandwouldencourageotherpeopletodoiftheywanttohavethiskindofgrowth?
BryceMaddock: Verysimple,ImeanreallywhenIthinkaboutititisn'tthatIwasastrategicgenius.It'snoteventhatI'mparticularlytalentedwhenitcomestoanyofthebusinessthatwedonow.IstilljokethatIdon'treallyfullyunderstandstheoutsourcingbusinessbutwhatitcomesdowntoiscontinuouslylearning.IwasataneventearlierthisweekwhereDocRivers,whoisthecoachoftheClippers,wastalkingandinthetalkhewastalkingaboutthedifferencebetweenknowitallsandlearnitalls.UltimatelyyouhavepeoplewhoIthinkparticularlyaswegetolderthinkIamanexpertonthistopic,itmeansthatIknoweverythingthat
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Ineedtoknowaboutthistopic.IwilltellyourightnowIdon'tknoweverythingthereistoknowaboutanything.
UltimatelywhatIdoknowisthatIdon'tknowwhenI'mwillingtoaskquestionsandstayhumbleandcontinuouslylearnandI'msurroundedbypeopleeverysingledaywhocanteachmesomethingnew.EarlyoninthebusinessIusemypassion,myenthusiasm,mypersistence,mywillingnesstoannoypeopletojustgrabontothecoattailsofthesmartestpeopleIcouldfindandsuckthemdryforknowledge.Askhimquestions.ThisissomethingthatI'vetalkedaboutalotactuallyjustthepowerofmentorship.Acoupleofkeyindividualsearlyoninthebusiness,thereisaguynamedJamieSiminoffwhoisstilloneofmybestfriends.HehadstartedacompanycalledPhoneTag.
TheywereusingalotofoutsourcecustomerservicecentersandIwenttohimandwasliketeachmeeverythingyoucanaboutoutsourcing.TherewasanotherguynamedTomNadowwhoisoneofthemostbrilliantentrepreneursthatIknowandhasafurniturestoreintheUScalledNadowFurnitureinthechainofRamenshopscalledHatsuRamen.TheguyworkstwohoursamonthandisabletorunthishugecorporationssoIdidthesamething.IsaidTom,teachmeeverythingyouknowaboutentrepreneurship.OverthecourseofthenextfewyearsIcultivatedasmentors.IthinktheyreallyappreciatedthatIwaswillingtolistenandthateverythingthattheysaidimpactedthedecisionsthatIwasmaking.Ididn'talwaysagreewiththewaythattheywouldmakethedecisionsthateverylittlelessontheytaughtmeIthinkintegrateditintothewaythatwewerepursuingthebusiness.
Asthebusinesscontinuetoscaleandwecouldactuallyafforditwewentoutandgotourselvesexecutivecoaches,soCEOCoachingInternationalhasbeenahuge,hugehelp.WehaveworkedwithMarkMoseswho'sanincredibleexecutivecoachforthelastfewyears.Myselfpersonallyandnowheworkswithtwootherexecutivesinmycompany.Heleadsourquarterlyplanningsessionsandreallyit'slikehavingatherapist,it'slikehavingabusinesstherapist.Theyaretheretolistentotheissues,tounderstandyourperspective,andthenreallyquestionthedecisionsthatyouaremaking.Somuchofwhatwe'redoinginbusinesstodayisreallydrivenbyrelationshipsandsohavingsomeonewhoiswillingtoconfrontyouandsayyouregoisgettinginthewayhere,thisimpactingthedecisionthatyouaremaking,isreally,reallyhelpful.
Idon'treallyhave3piecesofadvice,Ijusthave1pieceofadvicewhichisverysimple.Itisbecontinuouslylearning,becontinuouslylookingforpeoplearoundyoutobeteachers.Don'tassumethatthosepeoplehavetobeolderandmoreexperiencedthanyouare.Thereareteachersallaroundyou.Justkeepaskingquestionsandkeeptryingtoimproveyourselfeveryday.
SteveSanduski: Bryce,yourbusinessreliesontechnology.Youuseityourself.Mostofyourclientsareinthehightechnologybusiness,manyofthemfirmslikeUberandTwitterandTinder,verymuchtechnologycompanies.Howdoyoustayontop
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oftechnologychangesthatareoccurring?Itseemsliketechnologyischangingatanacceleratedratesohowdoyoustayontopofthat?Howdoyouknowwhenokaythisisanewtechnologythatweneedtobeusingthisinourbusinessversusthatmaybeapassingfad.Let'sseeifittakesofffirstbeforewejumpintoit.What'syourtechnologyframeintermsofhowyouthinkabouttechnologyanduseitinyourbusiness?
BryceMaddock: Idon'tdoitaswellasIusedto.Idon'thaveenoughtimeandIthinkI'mgettingalittleold.Imeanyoumaywant...
SteveSanduski: C'mon,you'renot30yearsoldyet.
BryceMaddock: Theguy's29andhesayshe'sgettingalittleoldbutImeanI'mnotabigSnapChatuser,andIreallyappreciatetheproductbutIdon'tuseitatoninmydailylife.There'salotofnewsocialtechnologythatIjustdon'tfeellikeI'mashipto.There'sthisagebetween14and24andthat'swheremostoftherevolutionaryconsumertechnologyiscomingfromandsoIreallyinmybusinesslifeIuse1thingtoguideallofourtechnologydecisionsandthat'swillthismakeadifferenceonthefrontline?Isitgoingtomakeiteasier,morefun,moreengaging,moreeffective,moreefficientforthepeopleonthefrontlinetodotheirjobs?
Anexampleofthis,ahugemistakewhichwemakethecompany,asweimplementedOracleasourERPsystem.Massivedisaster.Youliterallycouldn'tgetaproductthatspecificmoreoftheemployeeexperiencethanOracle.
SteveSanduski: Let'sjusthopeLarryEllison'snotlistening.
BryceMaddock: IfheisIwanthimtocallmebecauseIwillgivehimdirectfeedback.
SteveSanduski: Larry,ifyou'relistening.
BryceMaddock: Wesurveyourcustomerseverysinglequarterandwedon'tjustgetpositivefeedbackwegetnegativefeedbackaswellandthatiswhereyougottofocusyourattentionbecauseyou'vegottorealizethisisanareawherewecanimproveandinmyopinionOraclehasgottenseriousareaswhereitcanimprove.We'relookingatotherHRASandATSsystemsnowthatwedeploy.GreenhouseisoneofthemthatImentionedandit'sreallyfocusedaroundasacompanyweknowthatweneedthesethings,check,check,check.Asanemployeehowcanwemaketheiruserexperienceeasier,moreefficient,morefun,evenmoreaestheticallypleasing?Allthosethingsreally,tothedecisionframeworksosimilartolearningIaskedalotofquestions,Itriedtoreadasmanytechnologyblogs,ItrytouseasmanyoftheseproductsasIcanmyself.Ultimatelywhenwe'regoingtoanRFPforassessingproductstoimplementintothebusinessthesimplequestionisisthisgoingtomaketheemployeeslifebetter?
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SteveSanduski: Bryce,aswewrapupherejustletmegiveyouafinalopenendedquestionhere.IsthereanythingthatIhaveaskedyouthatyouwouldliketoshareoranythingthatyouhavelearnedjusthereinafewshortyearsofyourentrepreneurialjourney,yourhugelysuccessfuljourney,thatyouwanttosharewithourlisteners?
BryceMaddock: Again,goingbacktothisDocRiversthing,Ithoughtthiswassogreat.Idon'tevenlikebasketballbutIwenttothiseventandjustgoingbacktothisDocRiversthinghesaidI'veneveraskedabasketballplayerdoyouwanttowinachampionshipandheardno.Everybodywantstowinachampionshipandsowhenyouthinkaboutyouremployeesthere'snotasingleoneofyouremployeeswhodoesn'twanttobesuccessful,doesn'twantthecompanytosucceed,doesn'twanttowin.Everybodywantstowin.Thedifferenceismostpeoplewanttowinontheirownterms.
WhathappensiswhenyousaytosomeoneheyIneedyoutoplaythisrolewhetherit'sIneedyoutobetheITguyandjustfocusonITorIneedyoutogetonaplaneandflythePhilippinesfor3monthsandfixthisissue,whathappensisassoonaspeople'spersonalpreferencesbecomeinconvenientit'swellIdon'twanttowinonthoseterms.Inbasketballalotoftimesit'sIdon'twanttowinifI'mnotthestar.Tomethishashadahugeimpact.It'snotjustthinkingaboutmyemployeesbutalsothinkingaboutmyself.WhatkindofsacrificeamIwillingtomaketomakesurethatwewin?HowfaramIwillingtosacrificemyrole,myego,myownpersonalpreferencesandcomfortstoensurethatTaskUsultimatelyexitsasavictoriouscompany?IthoughtthatwasareallyinterestingperspectivesoIwilljustleaveyouwiththat.
SteveSanduski: Itsoundslikeyouaredefinitelylivingthatbecauseyoumentionedearlyonhereasweweretalkingabouthownothingisbeneathyounow,thatyouknowyouhavetoleadfromoutfront,youhavetoletpeopleknowthatheyIamwillingtodoanythingatthiscompanytomakeitsucceed.
BryceMaddock: Yeah,it'sverysimpleforus.Weliketoflipthehierarchy.Worshipthepeoplewhoareonthefrontline,respectthepeoplewhoareonthefrontline,respondtotheemailsofthepeoplewhowereonthefrontlinebecauseultimatelythatiswhattakingthebusinessforward.
SteveSanduski: WellBryceIthinkthat'sagreatwaytowrapuptheshow.Reallyappreciateyourtimetoday.Greatpointsthatyousharedwithus.CongratulationsonthehugesuccessandI'mveryexcitedtocontinuetowatchyouguysgrowinthefuture.
BryceMaddock: ThankssomuchSteve.