Wisdom Wednesdays: Leading Through Turbulence: Strategies for CEO Success with Katy Trost

Breakfast Leadership Show

Katy coaches and advises CEOs and founders at Series B and beyond. She helps them become more effective leaders and navigate the challenges of scaling people and operations. Her clients include some of the fastest-growing companies in the US and UK tech ecosystem, backed by leading investors, including SoftBank, First Round, Felix, Octopus, Inflexion, and more. Katy is also a coach and judge for Tech Nation Future Fifty and Upscale, Octopus Ventures, Founders Forum, Harvard Alumni Entrepreneurs, PwC Fintech, the Mayor of London Mentoring Program, and a member of the board of advisors for various startups. Her work has been featured in publications such as Forbes, Success Magazine, The Org, and Thrive Global. She shares her insights on CEO leadership, developing high-performing executive teams, and building healthy organizations at scale. Born and raised in Germany, Katy spent four years traveling the world before moving to New York City. After multiple years in the US startup ecosystem, she expanded her business to the UK, bringing a global perspective to her work with innovative and purpose-driven organizations. LinkedIn Instagram Quick recap Next steps • CEOs should focus on maintaining a human approach to leadership, especially during challenging times like layoffs. • Executives cultivate a problem-solving mindset and view daily challenges as opportunities for growth. Tech Ecosystem Advisor Role and Approach A tech ecosystem advisor, Katy shared her role and approach with Michael. She works with CEOs and executive teams, focusing on leadership, branding, operations, and scaling organizations. She differentiated her role from that of a consultant, emphasizing the importance of creating buy-in and seeing the pain points for solutions. She also highlighted her background in executive coaching. Michael acknowledged her deep understanding of an organization and the importance of her approach in integrating with the system's flow. He agreed with her that advisors should be a crucial part of the organization's DNA. Tech Industry Impact and CEO Behavior Amid Pandemic Katy and Michael discussed the impact of the pandemic on the tech industry. Katy noted that many companies, especially those with large tech spikes, had little substance behind their valuations and were ultimately forced to cut costs and let people go. Katy emphasized this as a daily challenge that CEOs face, but the pandemic accelerated it significantly. Michael agreed and asked Katy for her perspective on the behavior of CEOs and leadership during this time. Impact of Pandemic on Startups, VC Katy and Michael discussed the impact of the pandemic on startups and the venture capital landscape. The pandemic led many companies to overhire and pursue products without market fit. Katy emphasized bootstrapping, validating products before scaling, and using cost-effective marketing channels. Due to a slowdown in the VC ecosystem, many companies now face difficulties raising funds and need to shift toward profitability. This poses challenges for founders who have given up significant equity but cannot achieve desired growth. Katy highlighted the need to keep teams motivated despite lacking a potential "big exit." Attracting Talent Amidst Competitor Pressure Michael highlighted the tendency for companies to lose key personnel to competitors like Google and Facebook when their stock underperforms. He shared a personal experience where a potential partnership with a company ended prematurely, hinting at the challenges of maintaining long-term business relationships. Katy agreed, noting that when organizations face numerous options and distractions, it can be challenging to navigate through them effectively. She emphasized that simply adding more people to a company does not increase efficiency, implying that a change in approach is needed when a company grows. Managing Growth, Strategic Exits, and Contingencies Katy discussed the challenges and strategies of managing a growing company. She emphasized that while there are opportunities for increased revenue through product launches in new markets, it's essential to maintain focus and consider creating separate business units to manage these endeavors. Katy also highlighted the need for a strategic exit plan, suggesting that founders should be prepared to sell when the company is in a strong position rather than holding on for a potentially lower valuation later. She also advised that founders should have contingency plans if the desired valuation is not reached, such as buying out investors or seeking secondary funding. Focusing on Process for Successful Strategy Katy and Michael discussed the importance of focusing on the process and journey in executing a successful strategy rather than solely on the end goal. Michael emphasized the value of being present and navigating through challenges and stressed the need for setting targets to ensure progress towards the desired outcome. He also believed that adapting and persevering through difficult times is a crucial characteristic of successful executives and companies. Strategies for Executive Leadership in Turbulent Times Michael and Katy discussed strategies for executive leadership in turbulent times. Katy emphasized taking one day at a time, approaching challenges as new opportunities, and maintaining a human-centric leadership style. She also stressed the need for transparency, understanding decision-making processes, and communicating effectively, particularly during layoffs. Michael agreed, highlighting that a robust support system, including a sound board and team, was crucial to avoid executive burnout. Both underscored the significance of reputation, noting it can take years to build but can be quickly damaged. Navigating Public Life, Social Media, and Layoffs Michael and Katy had an insightful conversation about navigating public life and social media, with Michael advising Katy on how to handle different situations. Katy shared details about her work, and Michael praised her work. They also discussed the importance of understanding and respecting leaders' decision-making process during layoffs. Michael shared his personal experience with layoffs and emphasized the importance of maintaining a professional attitude.