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Episode 131 – Brett Baughman

By |2026-09-16T18:41:05+00:00September 17th, 2026|Podcasts|

Breaking Through the Invisible Ceiling: What’s Really Holding You Back with Brett Baughman

Featuring Brett Baughman, Executive Coach, Peak-Performance Strategist and Human Behavioral Expert

Success creates opportunities.

But success can also create limitations.

The strategies that got you here worked. Your instincts were right. Your decisions produced results. Eventually, though, something changes.

You keep doing what has always worked—and suddenly it isn’t working anymore.

That’s what Brett Baughman calls the Invisible Ceiling.

In this episode of The Covert Code Podcast, Anna Covert sits down with Brett to explore limiting beliefs, Neuro-Linguistic Programming, leadership, artificial intelligence, delegation, balance, breathwork and the internal patterns that can quietly prevent high performers from reaching their next level.

What Is the Invisible Ceiling?

Most of Brett’s clients aren’t struggling because they don’t know how to succeed.

They’re already successful.

They’re executives, entrepreneurs and high performers who have built careers, teams and businesses.

The challenge appears when they reach a level where the strategies that got them there stop producing the same results.

Sometimes the ceiling comes from fear.

Sometimes it comes from limiting beliefs or stories inherited from childhood.

But Brett points out that success itself can create a ceiling.

Become good enough at something and eventually people stop questioning you. You’re the boss. You’re the expert. Everyone assumes you know the answer.

Without outside perspectives challenging your assumptions, confidence can slowly become rigidity.

And rigidity can become a ceiling.

Brett explores this idea further in his article The Invisible Ceiling: Why Your Success Is Limiting Your Next Level.

How NLP Can Help Reveal Hidden Patterns

Brett’s journey into human behavior began long before he called himself a coach.

As a young actor and musician, he became fascinated by why people behaved the way they did. Later, while building sales teams and managing businesses, that fascination evolved into studying psychology and eventually Neuro-Linguistic Programming, or NLP.

NLP gave Brett a framework for examining how thoughts, internal images, language and learned behaviors influence the actions we take.

Instead of simply asking what is wrong, Brett looks for the process underneath the behavior.

Where does the thought begin?

What picture appears in your mind?

What do you tell yourself?

What emotion follows?

And what behavior does that produce?

Once the process becomes visible, it can become easier to challenge.

The Stories We Inherit Can Become Our Reality

Consider money.

If you grew up repeatedly hearing that money is difficult to earn, there is never enough, or successful people must struggle, those ideas can quietly become part of your internal narrative.

Eventually you aren’t consciously deciding to believe them.

They’re simply there.

The same thing can happen with relationships, leadership, self-worth and success.

Breaking through a ceiling often begins by identifying which beliefs are actually yours—and which ones you’ve simply been carrying for years.

Your Business Problem May Actually Be a Leadership Problem

When something stops working, leaders frequently respond by doing more.

More meetings.

More marketing.

More technology.

More products.

More involvement.

Brett recommends stepping back first.

Ask three questions:

  1. What’s the plan?
  2. What am I delegating?
  3. Have I properly trained the people responsible?

Many executives unknowingly become the bottleneck inside their own organization.

Every decision runs through them.

They don’t trust anyone else to perform certain responsibilities correctly, so they keep taking the work back.

The result is frustration for the leader and limited development for the team.

AI Can Become Another Yes-Man

The conversation takes an especially interesting turn when Anna and Brett discuss artificial intelligence.

AI can be an extraordinary collaborator.

It can also become an echo chamber.

If you continually ask an AI system questions from your existing perspective, it can reinforce the assumptions you already hold.

Brett intentionally instructs AI not to simply agree with him.

He wants options rather than commands.

He wants research rather than authorship.

He wants AI to help expand his ideas—not replace his own thinking.

It’s an important distinction as businesses race to incorporate AI into nearly every part of their operations.

Don’t Automate a Mess

Brett sees another problem emerging as organizations adopt AI.

Companies feel pressure to automate simply because everyone else is automating.

But technology layered over a broken process doesn’t necessarily fix the process.

Before adding another platform, system or AI tool, leaders should examine what’s already happening.

Is the marketing working?

Are the right people in the right positions?

Are product lines profitable?

Are inefficient processes consuming resources?

Sometimes the fastest way to grow isn’t adding something.

It’s removing something.

Efficiency Begins With Subtraction

We’re conditioned to associate growth with more.

More revenue requires more products.

More success requires more hours.

More scale requires more people.

Brett frequently starts somewhere else:

What can we eliminate?

Where is time being wasted?

Where is energy disappearing?

Which responsibilities shouldn’t be yours anymore?

Removing noise can create room for the work that actually moves the business forward.

Who Are You Without Your Business?

Entrepreneurs often ask:

Who is the business without me?

Brett flips the question:

Who are you without the business?

That’s a much harder question.

When identity becomes completely intertwined with a company, every problem inside the organization becomes personal.

Leaders become reactive.

They micromanage.

They stop seeing possibilities beyond the immediate problem.

Stepping outside that identity creates room to think about something bigger: purpose, impact and legacy.

Presence Is a Performance Strategy

High performers are often physically present while mentally somewhere else.

They’re at work thinking about home.

Then they’re home thinking about work.

The result is that they’re never completely present for either.

Brett compares it to an Olympic athlete standing at the starting line thinking about Christmas gifts.

Peak performance requires presence.

Whether you’re leading a meeting, making a major decision or spending time with your family, your ability to fully inhabit that moment changes the quality of the experience.

A Simple Breathwork Reset

One of Brett’s primary tools for returning to the present is breathwork.

He recommends starting with something incredibly simple:

Inhale for four seconds. Hold for two. Exhale for six.

Repeat the process for a few minutes.

Brett also encourages clients to schedule check-ins throughout the day.

When the reminder goes off, stop.

Breathe.

Then ask yourself:

How did I intend to show up today?

Am I still operating that way?

Am I actually working on what matters?

That tiny interruption can break hours of reactive behavior.

Learn more about Brett’s transformational breathwork work through BreathHouse.

Make a List of Everything You Do

Brett offers another exercise leaders can try immediately.

Write down every responsibility you perform during a typical week.

Then identify the things you genuinely enjoy and do exceptionally well.

Look carefully at everything left over.

Why are you still doing those things?

Could they be delegated?

Could someone else be trained?

Are you holding onto them because you don’t trust someone else to do them correctly?

Your invisible ceiling may be hiding inside that list.

Stop Building Your Future One Step Ahead

Brett shares the story of a successful real estate investor who continued setting goals incrementally.

She would reach one level and then decide on the next.

Brett challenged her to stop thinking one step ahead.

Instead, imagine you’ve already achieved everything you currently want.

Now ask:

What does that future version of you want next?

What challenges that person?

What scares them?

What excites them?

That perspective allowed his client to envision a much larger operation. According to Brett, she subsequently expanded nationally and tripled her business within roughly a year.

Success Without Fulfillment Is Another Ceiling

Some of Brett’s clients have achieved extraordinary financial success and still arrive at coaching deeply unhappy.

They hit the metrics.

They built the company.

They made the money.

Something is still missing.

For Brett, one of the answers is service.

Helping another person changes your focus.

It doesn’t necessarily require writing a large check.

Mentor someone.

Volunteer.

Listen to someone who needs an ear.

Support a cause you genuinely care about.

Contribution can reconnect success with meaning.

The Goal Isn’t Simply More Success

Breaking through an invisible ceiling isn’t necessarily about making more money or building a larger company.

Sometimes the breakthrough is realizing that the definition of success itself needs to change.

What are you building?

Why are you building it?

Who are you becoming in the process?

And what kind of impact will remain when you’re finished?

Those questions move the conversation beyond performance and into purpose.

About Brett Baughman

Brett Baughman is an executive coach, peak-performance strategist and strategic advisor whose work combines leadership development, emotional intelligence, advanced communication, NLP, transformational psychology and human optimization.

Connect with Brett on LinkedIn and Instagram, or explore his Executive Coaching programs.

Brett is also co-author of Strategies for Success, a collaborative collection featuring strategies from prominent personal-development and business leaders.

Watch the Full Episode

Watch the full conversation on The Covert Code Podcast and discover how to recognize your own invisible ceilings, challenge limiting patterns and create more space for performance, purpose and fulfillment.

Learn more about host Anna Covert, explore Covert Communication, and discover more conversations at TheCovertCode.com.

Breaking Through the Invisible Ceiling: What's Really Holding You Back

The Covert Code Podcast

Host: Anna Covert

Guest: Brett Baughman


Anna Covert [00:00:03]:

Aloha. My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is breaking through invisible ceilings.

My very special guest is Brett Baughman, an award-winning executive coach, peak-performance strategist, and human behavioral expert who has spent nearly three decades helping high-powered executives and entrepreneurs identify hidden patterns limiting their potential, expand their capacity for success, and create greater value, impact, and a legacy that extends far beyond their accomplishments.

Brett has contributed to Forbes and co-authored Strategies for Success alongside Jack Canfield, and helps leaders identify the unconscious beliefs and behaviors—or what we call the invisible ceiling—that may be holding them back from their next level.

Thanks so much for being here today, Brett.

We like to begin The Covert Code with a little CliffsNotes version of the Brett story. You're a very interesting man. Tell us how you got to where you are today.

Brett Baughman [00:01:13]:

Awesome. You know, it's funny, this is my least favorite part because I always talk about myself. I'm like, let's get to the stuff where I'm helping people.

So I'm going to try to chop this super-long story into something that's valuable for everybody.

I will say this first because this is always an important part of my story. For me, one of the most important things was my upbringing.

My parents are incredible. They're my best friends to this day. I was very blessed to have two parents who taught me early to have a voice, to be confident, and to discuss things when they happen. Rather than shying away, we communicated.

Long story short, when I was a kid, that led me into doing things that were artistic. I started acting, doing music, and performing. All these things are extremely creative and focused, and I thought that was the direction I wanted to go.

What I didn't realize until later in life was that the reason I was so interested in those things was the psychology.

When I got cast in a role, I got a script and I got to dissect why somebody did what they did, where they were coming from, and how it affected other people.

So I started really young understanding that when you do something, there is collateral damage or there is an impact—a ripple effect.

I took that into my life thinking I was going to go into the arts and entertainment. But the whole time, I kept studying psychology and really liking the mind and what was happening there.

Then I got into my early twenties. Like anybody, you're not necessarily in your career yet, but you're trying to get there. I was going out and getting jobs, and I got really good at managing people.

I was building sales teams. I was managing companies in insurance, mortgage, and real estate, and I started building a lot of call centers.

As I went through the process, I was getting a lot of success. There would be these big waves where results would go up, and then I would leave and they would dip.

I'd be hired for a consulting gig for a month or two. Results would go up, then they'd go back down.

I wasn't feeling the same level of fulfillment. I thought, something's missing.

So I started researching what I could do differently and how I could duplicate myself.

I literally thought, how do I leave myself there when I leave the job? Something's happening and part of me isn't staying.

That's when I found NLP—Neuro-Linguistic Programming.

I originally went to a seven-week training here in Las Vegas in the early 2000s thinking I was going to become a better salesperson and a better trainer.

After the first day or two, I thought, oh my God, my mind just blew open.

This isn't about the product. It's about the person and the potential.

I started understanding things I used to do naturally that I could now organize and teach to other people. I also started understanding the blind spots we have in ourselves.

I've been doing this for about 27 years now, so it's evolved a lot.

It shifted from, "Let me show you how to sell stuff," to, "Let me show you the person behind what you're selling. Let me teach you how to become the best version of yourself, understand why you're doing this, and understand how that impacts somebody else."

For me, like you, a huge thing is impact. It changed from just doing a job well to making a lasting impact.

That's led me through a lot of refinements and beautiful growth and evolution in my business.

Anna Covert [00:04:01]:

Wow. That's exciting.

Talk to us a little bit more about NLP. Tell us all about that.

Brett Baughman [00:04:13]:

The easiest way I like to explain it is that psychology is incredible. Psychology is the basis of everything, right? It's understanding the structure of our behavior and thinking.

But it can sometimes feel limiting in the sense that you may sit down with somebody, receive a diagnosis, and then feel like you've been put into a box.

With NLP, the shift is more like laser therapy. Instead of simply identifying something, you're working on radically shifting behaviors and thinking.

We're tapping into how you work at an operating level and making adjustments.

You start to organize your thinking and behavior into a process rather than simply focusing on how something feels.

When something happens, where does it start?

Somebody said something. I got a feeling. I put a negative picture in my mind. Then I started saying something to myself.

You can dissect that process.

No matter what someone is dealing with—business, health, internal or external—you can sit down and start identifying where in the process things are going wrong and make adjustments.

That's why I think of NLP as a laser version of that process.

You're reinforcing empowerment rather than putting yourself in a box.

You're never "that thing." You're presenting those symptoms in that situation.

Anna Covert [00:05:23]:

Right. So it's kind of like when people have memories from childhood around finance, love, or whatever it is.

That word has a picture in their mind that they keep bringing up, and you're really reprogramming that picture.

Brett Baughman [00:05:37]:

Exactly.

Maybe Mom and Dad struggled their whole lives around money and always said, "You're never going to have enough. The world's so difficult."

That becomes your story. It becomes your narrative.

So we have to go in there and change those anchors.

We have to give you the possibility where we don't say, "You're a person who always struggles with this."

You're struggling right now based on X, Y, and Z.

If you change X, Y, and Z, the struggle can change.

Anna Covert [00:05:57]:

Or one of those limiting beliefs that you have to struggle to succeed.

Brett Baughman [00:06:00]:

Exactly.

Anna Covert [00:06:02]:

When you went through this learning, what did you see or find in yourself that was limiting?

Brett Baughman [00:06:08]:

A couple of things.

The first thing was that I didn't understand how to organize what I was doing.

I could do something well, but if you asked me how I did it, I'd basically say, "Get out of the way and let me show you."

I couldn't articulate it.

So one of my limitations was my ability to articulate and communicate what I was thinking.

I learned how to take things you feel and turn those into things you can say and do so that you can unpack the process for someone else.

A lot of times people come to me highly stressed or overwhelmed. They're trying to figure out what to do, but they don't understand their own strategy.

Sometimes they need to stop trying to think through it. They need to get into their body and move through it.

You learn different ways of accessing a problem. Otherwise, we're incredibly linear, and that's not really how we work.

Another big thing I learned was that I could duplicate what I was doing and turn it into something I could teach someone else through an exact process, step by step.

Anna Covert [00:07:03]:

What are some steps people listening right now can use today to identify limiting patterns they might have?

Brett Baughman [00:07:13]:

There's something I talk about called the Invisible Ceiling.

Most of the clients I work with are high-performing executives. They don't come to me because they don't know what they're doing in business. They're extremely successful.

But they've reached a point where one of two things has happened.

Either they've hit their ceiling and they're saying, "This is as much knowledge as I have because I got myself here, and I don't know what else is going to take me somewhere else. There's nobody to mentor me past this."

Or they've reached a place where they're stuck, and they keep trying what worked before—but it doesn't work anymore.

They either stay there or they start to decline because of the stress.

The Invisible Ceiling is a mixture of a couple of things.

It's the negative stories of the past. It's the narratives, limiting beliefs, and fears that create a framework.

But here's something people don't always consider:

Your success can also be a limitation.

Not in a negative way. But we become so good at something that we stop pushing the boundaries.

We stop stretching.

We stop questioning.

You become the boss, so everybody becomes a yes-man to you.

Nobody questions you anymore. You don't have that outside counsel saying, "Hey, maybe there needs to be another way to do this. Let's be flexible."

Rigidity becomes your own ceiling.

You're no longer being pushed because you believe you already know the answer.

One really simple way to look at your whole life is this:

If you're feeling frustrated in an area of your life, or you're repeating a process and not getting the results, you've probably hit a ceiling.

Step back and ask:

What's my plan?

What strategy am I applying right now, and why?

Maybe you're doing something because the sales team isn't doing what they need to do. Maybe the marketing team isn't performing, so you're doing it for them.

You need to understand the plan and why you're executing it.

Then ask:

Am I delegating?

Are you hiring people? Are you bringing people in and entrusting them with responsibilities, or are you micromanaging?

Then:

Are you training them well?

It's this three-pronged approach.

Sometimes we haven't trained people well, so we don't delegate. Then we're frustrated because we're doing everything ourselves.

We tell ourselves, "Nobody can do it like me. I can't find the right people."

It becomes this cycle and ultimately a lack of trust.

When you're doing what you should actually be doing, you find a different drive and passion.

You manage and lead people differently. You do it from empowerment and opportunity rather than feeling like you're the only person who can get it right.

Anna Covert [00:10:02]:

Definitely.

I think that's common. It's almost like playing a game where if you don't pass a level, you have to repeat it.

And now with AI, I think in some ways it can become even worse because you get this echo chamber.

Whatever you tell it, it's like, "You're right. One hundred percent."

Then you're like, "Well, I'm not sure I'm right."

And it says, "You're right that you're not right."

It can become hard to get an objective opinion.

Brett Baughman [00:10:28]:

Yeah. There's too much reinforcement.

I recently spoke to a group and was teaching them how to create prompts that establish healthy boundaries with AI—to train it so it's an advisor to you and doesn't become a yes-man or yes-woman reinforcing your existing beliefs.

Anna Covert [00:10:43]:

What prompts are you using right now?

Brett Baughman [00:10:46]:

My first one is basically: Don't be a yes-man.

I tell it to be harsh and objective with me. Be brutally honest.

That's number one.

Number two, when you advise me, don't tell me what to do. Give me options.

Say, "Here are some options I see for flexibility."

Another thing is that I need it to be a collaborator.

I'm not looking for it to tell me what I'm looking for. I'm looking for actual data that can reinforce what I'm already doing.

I don't want a new idea coming in that came entirely from AI and wasn't mine.

I want it to give me ways to expand ideas that are already mine—back them up with research and data.

I don't want it to become the author.

I tell it:

You're not the author. You're my researcher.

Only respond with the things I ask you to within the framework I've given you.

I take it down very granularly.

I also want a 30,000-foot overview until I tell it to go deeper.

Give me an idea and leave it alone.

I don't want you feeding my brain a bunch of seeds I don't need.

If I say, "That's interesting. Let's go deeper," then we'll go deeper.

Otherwise, you can ask a question and suddenly it gives you three pages. It takes over your mind without you realizing it.

It's like somebody saying, "Here's a piece of paper. Draw a picture," and then handing you five crayons.

You may not want to use four of those crayons, but now they're in your mind.

You start thinking those are the only five crayons available.

But is there another box of crayons somewhere?

AI can start limiting our thinking into the framework of what we think and what it thinks, instead of asking whether there's something outside of that framework.

Anna Covert [00:12:25]:

That's really good advice.

One of the things I'm teaching my clients is that you really have to train it.

It's like Pandora.

If you want to listen to jazz and suddenly it sneaks in a song with a little country twang, if you don't tell it no, before you know it you've got a country station.

The same thing happens with AI.

You have to train it.

And if you're really going to use it, I think you should give it access to your own body of knowledge where appropriate.

I'm lucky because I have almost three decades of content, resources, articles, books, videos, and things I've written.

Have it learn your voice and your brand.

If we're talking about something I've discussed before, I don't necessarily want a generic AI opinion. Remind me how I've spoken about that subject previously.

Bring back my own knowledge so I can reuse and build upon it.

Otherwise, you get this generic AI language.

There are certain words and phrases you start seeing everywhere, and you realize that's AI lingo.

I want to use my voice.

Anna Covert [00:13:59]:

You've been in this business for a long time. How have you seen patterns changing recently?

There must be an acceleration based on AI and just consciousness in general.

What are you experiencing?

Brett Baughman [00:14:14]:

The biggest thing I notice is that people are jumping into automation very quickly.

A lot of companies feel like they have to race to be part of AI.

They're jumping in and using tools that aren't necessarily working correctly or that they haven't properly planned for.

I see companies taking a dip they didn't realize would happen because they're trying to get ahead.

Maybe you don't need to adopt everything so quickly.

Another part of it is that we're watching divisions, departments, and jobs change or disappear.

I work with a lot of wealth advisors, for example. There are things at the base level they don't necessarily need people to do anymore.

You can use a bot or AI to help plan the initial part of a financial plan or provide enough knowledge that certain beginning-level tasks change.

I'm seeing challenges in entry-level positions across accounting, law, wealth management, mortgages, real estate, and other professional careers.

There's a huge shift happening.

But I will say this: people ask, "These jobs are going away. What are we supposed to do? AI is stealing the jobs."

I've been doing this a long time, and if you're good at your job and make your role valuable, you're giving yourself a much stronger position.

You've got to show up.

If somebody isn't following through, isn't doing the job well, or repeatedly forgets what needs to be done, increasingly there may be an AI tool that can perform part of that task quickly.

That's what I see changing.

Anna Covert [00:16:33]:

It's true.

And for everyone listening, another thing to be on the absolute lookout for is what tools you're inserting into your workflow.

I specialize in security and compliance, and marketers tend to be a little more flexible around what data we can keep and how we use it.

But think carefully about your customer.

If you're putting some AI tool on top of your CRM, where is that tool from?

Who has access to your customers' data?

Think carefully before making those jumps.

Brett Baughman [00:17:15]:

Right. Like anything, read the fine print. Know what you're doing.

Anna Covert [00:17:20]:

Exactly.

What other trends are you seeing in the workforce?

Some other guests I've had on have talked about the job market and how there aren't as many opportunities.

Even for executives and high-level people, the hiring process can extend dramatically.

How are you helping motivate people through these challenging times—even when they're qualified—to keep focused?

Brett Baughman [00:18:13]:

I'll come at this from a different direction.

I've been doing this long enough that one of the things I'm good at is pattern recognition—looking at behaviors, loops, and limiting beliefs people have, consciously or unconsciously.

Most people want to do more.

"I want to grow the company."

"I want to scale the company."

"I want to learn something more."

Add more. Do more. Do more.

The number one problem is that you need to become more efficient.

The first thing you should do is cut things out.

What's not working?

Where are you wasting time?

Where is energy going that isn't serving you?

There is so much advancement and growth available by reducing the noise.

That's the first thing.

I'm helping people reduce noise.

They'll say, "Let's add an entire AI system."

And I'll say, "Wait a minute. Your marketing isn't working. You've got a couple people on the team who aren't getting their jobs done, and some product lines are messy."

Let's clean house first.

Then you're nimble and you understand what you should actually be using.

You're not just putting another blanket over a big mess.

Efficiency is the first thing we look at.

The next thing is that most executives and leaders tend to take everything on themselves.

They become the bottleneck.

The entire company becomes identified by them.

Everything has to run through them. They make every decision. They're controlling everything.

One thing I teach my clients is to ask:

Who are you without the business?

A lot of people ask, "Who is the business without me?"

They're trying to build a business they can eventually step out of. They want to manage it, be the CEO or founder, or eventually exit.

But instead of only asking who the business is without you, start thinking:

Who am I without the business?

Then you start looking at the business differently.

You start looking at other opportunities and expanding your thinking.

Who are you?

What do you want to do?

What's the legacy you want to leave?

How does the business impact the world?

How are you taking your resources and becoming a better person?

How are you using that to empower or serve other people?

It sounds contrary when your business is struggling.

But whenever you're going through something difficult, help someone else.

I'm a very faithful person, so for me, I know God is doing that for me. Whatever you want to call it, the process works the same.

When you're having a bad day or something is going wrong, help someone else.

Suddenly you feel better. You shift your mindset. You're a different version of yourself.

If there's distress in the business, step back and find out who you want to be.

Maybe you've lost yourself in the business.

You're worried. You're micromanaging. You're pushing harder into the problem.

Set it aside for a moment and come back to who you're supposed to be.

What's missing right now?

The problems may be coming from decisions at the top and unconscious patterns being repeated.

We have to step back, figure out who you need to be, and steer the ship differently.

Then start taking actions that change how you show up.

Serve others.

Leave a legacy.

Make an impact.

Train people.

Delegate.

Start seeing other people rise.

When they rise, they lift the ship with you.

They bring new ideas. They empower you. They allow you to step back.

When you only push harder into the problem, the problem becomes more constricted.

Anna Covert [00:21:52]:

Absolutely.

We talked a little bit off-camera before, but I'm a big Dr. Joe Dispenza lover. I've been to his events, and I meditate to Dr. Joe for about an hour and a half every morning.

One of the things I'm really attracted to is this idea that if you're always thinking about your predicted future or the known past, you're stuck within what you already know.

If you can't see past what you know, you're being very reactive.

Reactive behavior doesn't leave much room for faith or trust in the unknown.

Brett Baughman [00:22:35]:

One hundred percent.

The biggest challenges I see people struggling with, especially as they take on more responsibility, are balance and presence.

They're incredibly powerful.

Balance means being able to balance your life. I still have a personal life, plus I'm working.

Any skill can become a problem when it doesn't have a counterbalance.

If you're very disciplined but take it too far, you can become rigid.

If you're extremely focused, you can become controlling.

You need balance.

Then there's presence.

People are doing things, but they're not really there.

I have executives who are busy working all day. They get home with their kids or family and they're still thinking about work.

Then the next day they're doing an email or looking at their phone and thinking about something else.

You're never going to be the best version of yourself or get the best results unless you're there.

It's like an Olympic runner standing on the starting line thinking about Christmas gifts.

You're not there.

The best athletes in the world know how to stay in that moment and in that flow state.

When you come into that presence and flow state, you have greater access to the resources of your mind.

You're more aligned and connected, and you're able to make decisions.

You have that moment to set your intention and create your path.

Without that, you're reacting or worrying all the time, like a tennis ball going back and forth.

Anna Covert [00:24:04]:

Exactly.

And recognizing when you're reactive is a skill in itself because it can happen very quickly.

You can stop and recognize, wow, this is triggering me.

Then look at it as an opportunity to transform.

What are some things you're telling your clients to do to create that balance?

What techniques can people listening use today?

Brett Baughman [00:24:38]:

I'll give you two really simple ones that people can use right now, and they apply to what we're talking about with the Invisible Ceiling.

The first is breathwork.

I do breathwork all the time.

When we encounter a business problem, we immediately think, "Let's get in there. Let's work the numbers. Let's add a new line. Let's make a new service."

We immediately go to the brain.

But not every problem is going to be solved by thinking harder about it.

Most people live with some level of stress or anxiety, which means you're not always doing your best thinking.

I get my clients doing breathwork consistently.

We wake up in the morning, say a prayer, create intentionality and focus, and go into breathwork.

A really simple pattern is:

Inhale for four seconds. Hold for two. Exhale through the mouth for six.

That helps regulate your body and bring you back toward homeostasis.

You're hitting a reset button.

Now you're here.

Now you can make the decision instead of making it as the person who woke up cranky, tired, nervous, or stressed.

I recommend two to three minutes minimum just to bring your presence back.

Then you can say, "Okay, I'm back in control of the ship. I'm going to choose my direction."

I also have clients set alarms on their phones.

Depending on the person's stress level, every three or four hours an alarm says, "Check in."

No matter what you're doing, stop.

Step away.

Breathe for a minute.

Then ask:

"My goal today was to show up as this person and accomplish this goal. Am I still on that course?"

It's incredibly simple.

But it's a pattern interrupt.

It says, "Hold on. It's been four hours. Are you doing what you should be doing? How are you acting right now?"

That's a big one.

The other exercise relates directly to the Invisible Ceiling.

Make a list of all the responsibilities you have during a typical week.

Write down everything.

Marketing. Monday morning meetings. Sales. Sessions. Whatever you're responsible for.

Then take a green marker or pen and circle the things you want to do and the things you do really well.

Look at everything that isn't circled.

Why don't you like those responsibilities?

Why are you still doing them?

Are they frustrating you?

Are you not seeing the results you want?

Those are the things you should examine.

Many should potentially be delegated or handed to someone you've properly trained.

If you're not doing that, you may discover that you have a lack of trust, don't have a plan, haven't trained somebody, or are holding onto control.

You'll quickly realize how many things you're doing that you shouldn't be doing.

You've created a ceiling around yourself:

"That has to include me."

"I have to do this."

"I can't trust someone else."

"They can't get it right."

"I can't find somebody."

We tell ourselves these stories.

Once you identify them and ask why you're still doing those things, you can take action and begin creating more time for the responsibilities where you provide the greatest value.

Anna Covert [00:28:08]:

Right. I like that book, Who Not How. That's a great book.

And breathing is so underrated.

Have you ever used the Miracle of Mind app from Sadhguru?

Brett Baughman [00:28:25]:

I know him, but no, I haven't used it.

Anna Covert [00:28:26]:

It's a completely free app. It's beautiful. I'm a techie, so I love it.

There are seven-minute, 12-minute, 14-minute, 18-minute, and 21-minute options.

People say, "I don't have time to meditate."

They hear that I do an hour and a half and say, "I don't have time for that."

Listen, everyone has time for something.

Brett Baughman [00:28:52]:

You have to choose.

Do you have time to deal with problems and be stressed all day?

Or do you have time to do maybe ten minutes of this and have your day go radically differently?

Anna Covert [00:29:02]:

Absolutely.

Sometimes in the middle of the day, I'll take a little meditation snack and do seven minutes.

You can feel so much energy from that breath you're talking about.

Brett Baughman [00:29:10]:

It brings you back to the present. It's so powerful.

Anna Covert [00:29:13]:

So wonderful.

Let's talk a little bit about your book.

I know it's been out for a while and was co-authored.

I'm going to ask you the same thing everyone always asks me: Why did you take the time?

Did you always want to write a book? What was your motivation behind the book?

Brett Baughman:

A couple of things.

I've always been interested in writing a book.

I actually have another book in my brain that will come out in the future. I've been working on it for a long time. That's going to be just me and more of my manifesto.

When I really started coaching, I had been doing training since the early 2000s.

I was still a guy working at companies and getting hired to come in and do sales training. I saw myself as a sales trainer.

After that NLP training, I got a couple of mentors, including Tad James and Kelly Campbell.

They told me, "You're a coach. You should be a coach. Put your hat on, go out, and go after the things you want. Don't wait for people to come to you. Go drive the shift."

One of the things that originally held me back was thinking I didn't have all the tools I needed.

If I went to speak on a stage, I thought, "I don't have a book."

I was early in my career.

Kelly told me, "It's okay. You're going to get there. Slow down. Take your time."

But I started thinking about how I could create something I could author and use as a tool.

I decided to create a collection.

I thought, I'm going to go to some of the people who inspired me—some of my favorite authors—and ask if they'll collaborate on a book with me so I can learn from them, speak with them, and share that momentum.

Within about a week, I had 25 authors agree to participate.

Jack Canfield. Mark Victor Hansen. Dr. Ivan Misner. Kelly Campbell. Marie Diamond from The Secret.

It was this powerhouse group of incredible people.

We put the book together, and it became a great tool.

I used to tour around and speak, and the book helped give me access to people and places when I needed that early in my career.

It got me through doors.

I met people I probably never would have met otherwise.

I remember going to New York for dinner once and somebody came over to the table and said, "Hey, I have your book on my coffee table."

I thought, this is crazy.

That was very early for me.

I ended up meeting a client who is still a longtime friend.

The book planted seeds and helped me expand my reach and impact.

Anna Covert [00:31:38]:

That's nice.

What's one success story you can share—without using the person's name—about a limiting belief you helped someone identify and how it transformed their career?

Brett Baughman [00:31:50]:

I had a woman working with me who's very successful in real estate. She's a major real estate investor in both commercial and residential real estate.

We had been working together for about a year and a half, scaling her company and teams.

But she had a limiting belief around how much time and energy she could invest based on what she'd seen and experienced before.

She kept building a model that was successful and duplicating it.

I asked her, "What's your ideal end goal?"

She had been looking one step ahead.

"I want to do this next."

Then she'd accomplish it and say, "Now I want to do this next."

I told her, "This is excellent because you're succeeding at the steps. But let's look at the big picture."

I have a trademarked process called The Ideal You.

Let's go way beyond today.

Imagine you have everything you've ever wanted—every goal and dream in your career, health, and relationships.

What does that person look like?

Go there in your mind.

Now tell me:

What is that person dreaming about?

What's scaring them?

What's challenging them?

What's stretching them?

Let's start building that.

It got her outside of short-term thinking.

I asked, "What's the biggest thing you want if you remove the fear?"

She realized how big she actually wanted to scale.

I asked, "So why aren't we doing it now?"

She said, "Well, I've always done it like this."

I said, "Yes, but everything you've done has shown momentum and growth. It has scaled and scaled. What says we can't scale from five to 50 instead of one to two?"

So we started scaling.

She expanded her operation across the country and roughly tripled within a year.

It was one of those examples where the limiting belief was simply not thinking big enough.

But you need the vision and the plan.

Most people think:

"I'm in a problem. How do I get out?"

Instead ask:

What's my ideal, and how do I engineer myself to become the person who accomplishes that?

Anna Covert [00:33:54]:

I think small thinking is one of the biggest limiting beliefs.

"Why me?"

"I don't deserve it."

Low self-worth.

Those can be huge.

Brett Baughman [00:34:01]:

We tend to think only about what we already know can happen.

I've seen somebody do this, so I believe I can do this.

But we don't always think something bigger or totally different can happen.

It's like what I said earlier about the five crayons.

These are five options, but there may be a lot of other options.

Small thinking keeps us inside what we know instead of what we don't know that we don't know.

Anna Covert [00:34:34]:

Exactly.

Limiting beliefs really are limiting.

What else would you like to share with us about how we can improve our lives?

Brett Baughman [00:34:54]:

A big thing for me is that I love what I do.

I'm so blessed.

What I do is genuinely my passion. It doesn't really feel like a job or career to me because I get to help people every day.

In my work, I'm not interested in simply scaling businesses and making money.

It has to make an impact in the world.

It has to change the person, change their life, and create more fulfillment.

Through the thousands of people I've worked with, I've realized that what really matters is your fulfillment in life.

I have people who come in making $20 or $30 million a year who are incredibly unhappy.

They have everything you'd ever want on paper, and they're not happy.

One of the biggest game changers I've learned—the life hack that can give you joy right now, keep you aligned and present, and help you enter that flow state—is learning to serve.

Most people don't get out and serve.

Help people every day.

It doesn't have to be big.

It doesn't always have to be financial.

You can be an ear for somebody.

You can do a Bible study at your church.

You can show up and help an organization like the Boys & Girls Club.

Just get out and help.

I work with people who run businesses and make tremendous amounts of money who would never think of doing this.

Then suddenly they go out and serve, and it touches them.

It changes who they are.

They have new creative ideas.

They become a different person.

They're inspired in a new way that's not financial—but it can bring financial benefits too.

I had one client who was incredibly successful financially.

He kept telling me, "Brett, I just feel unfulfilled. Something's missing in my life."

He was hitting every metric he could in business, but personally he wasn't being challenged or fulfilled.

We kept asking, "What's the legacy you're leaving?"

We spent months trying to figure out what he should do.

Finally I said, "Don't force it. Just start spending more time doing things you actually love."

Most of the time we're so busy we don't do the things we love.

I love hiking. I love tennis. I love breathwork, yoga, and wellness.

When I go do those things, I continue to meet people. I continue to grow. Doors continue to open.

This client loved skiing.

He went skiing and one day saw a nonprofit bringing children with disabilities onto the mountain and teaching them to ski.

He started talking to them and learned they also take kids mountain biking, surfing, and doing other activities.

He said, "This is what I want to do."

He went and did the thing he loved, and that opened the door.

Now he's pouring himself into that work.

And it's brought joy back into his other business.

It's changed everything.

That may have been one of the best business strategies he's implemented in years—and you never would have arrived at it by simply asking, "How do I grow my business?"

Anna Covert [00:37:43]:

That's really true. I couldn't agree more.

Thanks so much for being here today.

How can people get ahold of you and learn more about what you're doing?

Brett Baughman:

The easiest way is to go to my website, just my name: BrettBaughman.com.

If you search me, fortunately and unfortunately, you'll find me everywhere.

You can find me on Instagram and LinkedIn.

And something we mentioned a few minutes ago that I'll send to you so you can put it in the show notes: I have a free hour-long breathwork journey that I share with people.

I've used it with thousands of veterans dealing with PTSD, anxiety, and depression, and I've seen people have really powerful experiences with it.

Sharing that is such a joy for me.

I'd love to share that with everybody.

Anna Covert [00:38:35]:

I would love to do one. That sounds right up my alley.

I'll tell you really quickly: when I was at Dr. Joe's event, we did something called Electric Body.

We were on the ground, and I couldn't believe the experience I was having simply from breathing.

It was amazing.

Brett Baughman [00:39:02]:

It's remarkable.

Breathwork can be an incredibly powerful gateway into experiences and states you may not have imagined.

Anna Covert [00:39:08]:

Thank you so much for being here.

And to all my listeners, if you have not yet subscribed to the channel, please do so.

We just reached 250,000 subscribers, which is incredible, and it's because of you and your aloha.

Please share this content with your friends and family so I can continue bringing great guests like Brett onto the show to share their passion and wisdom with us.

I will see you next week in the pixels.

Aloha!


Anna Covert [00:39:30]:

I hope you enjoyed this episode of The Covert Code Podcast.

If you're loving the insights we share here, don't forget to follow us on your favorite podcast platform and leave a review.

Your support helps us reach more digital innovators like you.

Share this episode with your friends and colleagues on social media and help spread the word.

And if you're in the solar space or simply curious about where clean energy is headed, follow my other podcast, The Solar Coaster.

The show digs into the real stories, trends, and challenges of the solar industry with bold conversations and powerful takeaways you won't hear anywhere else.

Follow The Solar Coaster so you don't miss a single episode.

Thanks for tuning in.

See you in the pixels.

Aloha.

Comments Off on Episode 131 – Brett Baughman

Episode 130 – Jaclyn Strominger

By |2026-09-12T00:20:23+00:00September 10th, 2026|Podcasts|

Why Your Relationships Are Your Greatest Business Asset with Jaclyn Strominger

Featuring Jaclyn Strominger, Success Strategist, creator of the Relationship Capital Formula and LEAP Framework, co-author of Charting True North, and host of Unstoppable Success

Most business owners know networking matters.

They attend events, collect business cards, add people on LinkedIn, and exchange introductions.

Then Monday arrives.

The business cards sit on a desk, the LinkedIn connections disappear into a feed, and the people they spent hours meeting slowly become names they barely remember.

Jaclyn Strominger believes that is where most networking goes wrong.

In Episode 130 of The Covert Code Podcast, Anna Covert sits down with Jaclyn to discuss why relationships may be one of the most valuable assets in business—but only when we take intentional action to build them.

Relationships Built Jaclyn’s Businesses

Jaclyn spent years building businesses through relationships.

Connecting people came naturally to her.

If someone needed a person, resource, or introduction, she was often the person they called.

Then her life changed.

After realizing she was living largely on autopilot, Jaclyn and her family made a dramatic decision: leave Massachusetts and move across the country to Reno, Nevada.

She arrived knowing almost nobody.

For someone whose business had largely been built through relationships, that presented an enormous question:

How do you rebuild a network from zero?

Two days after moving into her new home, while the moving truck was late and she was still settling in, Jaclyn attended an event with approximately 25 women.

And she started connecting.

Her business began growing quickly.

People who had lived in Reno their entire lives started telling her that she seemed to know more people than they did.

That’s when Jaclyn realized the thing she did naturally could actually be taught.

The Relationship Capital Formula

Jaclyn eventually developed a simple formula:

Relationship Capital = People × Action.

The number of people you know creates potential.

Action creates value.

You could have thousands of LinkedIn connections.

But how many people do you genuinely know?

How many relationships have you intentionally nurtured?

How many people would answer your call?

How many people immediately think of you when an opportunity appears?

The difference between a contact list and relationship capital is what you do after the connection is made.

Your Network Expands Faster Than You Think

The mathematics behind relationships becomes powerful very quickly.

Every person in your network has their own network.

One new relationship can potentially create introductions to hundreds of other people.

Then those people know other people.

This doesn’t mean treating every conversation as a pathway to a sale.

In fact, Jaclyn argues for almost the opposite approach.

Build the relationship first.

The opportunity may come later.

Connect. Engage. Offer.

Jaclyn breaks relationship-building into three practical behaviors:

Connect.

Engage.

Offer.

Connect with the person.

Actually engage with what they are saying.

Then look for something useful you can offer.

That offer may have nothing to do with purchasing your service.

It might be an introduction, article, book, resource, invitation, or piece of information related to something they mentioned.

This requires one of the most underrated skills in business:

Listening.

Stop Thinking About What You’re Going to Say Next

Many people don’t truly listen during networking conversations.

They’re preparing their own response.

Waiting to introduce themselves.

Looking for the moment when they can explain what they sell.

Jaclyn recommends deliberately slowing down.

Listen to what the other person is telling you.

Remember their name.

Notice what they need.

Then ask yourself:

Is there something useful I can offer this person?

That change transforms networking from a transaction into a relationship.

You can hear more of Jaclyn’s approach to relationships, leadership, and business momentum on her Unstoppable Success Podcast.

The Follow-Up Is Part of the Event

One of Jaclyn’s most practical lessons is something nearly every business owner can implement immediately.

If you spend two hours attending an event, be prepared to spend meaningful time following up afterward.

The event wasn’t the entire investment.

The follow-up is part of the investment.

Jaclyn sees too many people spend hours networking only to leave the cards sitting on their desks.

No personalized email.

No LinkedIn message.

No introduction.

No second conversation.

Nothing.

If you don’t follow up, much of the time and money you spent attending the event disappears.

Use More Than One Channel

People are busy.

Emails land in spam.

LinkedIn messages disappear.

Texts get forgotten.

A lack of response doesn’t automatically mean someone doesn’t want to connect.

Jaclyn recommends trying two appropriate touchpoints.

Perhaps email first and LinkedIn second.

Or email and a phone message.

If the person still doesn’t respond, don’t immediately assume rejection.

You can politely tell them you’ll follow up again at a specific future date.

Put it on your calendar or into your CRM.

Then actually do what you said you would do.

Relationship Building Needs a System

Networking often fails because it relies entirely on memory.

That doesn’t scale.

If relationships matter to your business, track them.

Use a CRM.

Use calendar reminders.

Create notes.

Document what you discussed.

Keep track of what you promised.

Technology can help support that process, but the relationship itself still needs to remain human.

Give People an Easy Way to Say No

There is another side to persistence.

Not everyone wants to build a relationship with you.

That’s okay.

Jaclyn recommends providing an easy and respectful way for someone to opt out.

You can simply tell them that if staying in touch isn’t useful, they can let you know.

That takes pressure out of the conversation.

Your job isn’t to win every person.

Your job is to intentionally build the relationships that make sense.

Stop Treating Networking Like Immediate Lead Generation

One of the easiest mistakes to make is evaluating every new person by one question:

Can they buy from me?

Jaclyn encourages business owners to take that thinking out of the first interaction.

The person standing in front of you may never become a customer.

But they may eventually introduce you to your largest customer.

They may become a partner, friend, podcast guest, resource, referral source, or advisor.

Or they may remember your expertise three years later when exactly the right opportunity appears.

Play the Long Game

Anna shares that some of her own business comes from people she hasn’t spoken with for years.

Something happens.

A person encounters a problem.

And suddenly they remember the person who can solve it.

That’s relationship capital.

You don’t always know when the investment will pay off.

Sometimes the opportunity arrives years later.

Networking Still Needs an ROI

Relationship-building is the long game.

That doesn’t mean every networking activity deserves unlimited time.

Jaclyn recommends looking closely at where you’re spending your energy.

Which events consistently produce meaningful conversations?

Where are the people you actually want to meet?

Which communities align with your goals?

Which groups have you attended repeatedly without building meaningful relationships?

Anna compares it to fishing.

If you’ve been fishing in the same cove and there aren’t any fish, eventually you need to move the boat.

Being consistent doesn’t mean continuing an activity that isn’t working.

Your Energy Enters the Room Before Your Pitch

Relationship Capital also connects directly with Jaclyn’s LEAP Framework.

LEAP stands for:

  • Leveraging Communication
  • Energy
  • Action
  • Performance

Communication includes what you say to other people—but also what you say to yourself.

Energy is how you show up.

Action is the plan you create.

Performance is the process of measuring, monitoring, and adjusting what you are doing.

People Can Feel Desperation

Jaclyn makes an important point about energy.

If you walk into every room thinking, “I need to make a sale,” people can feel it.

If you’re worried constantly about whether someone likes you, people may feel that insecurity too.

The strongest relationship-building begins when you stop approaching every interaction from scarcity.

Show up curious.

Listen.

Be useful.

Then let the relationship develop naturally.

Measure, Monitor, and Adjust

The final part of LEAP is Performance.

Jaclyn describes this as:

Measure. Monitor. Adjust.

You need to know whether the actions you’re taking are actually moving you toward the outcome you want.

This is relevant to networking, sales, marketing, and leadership.

It also reflects a recurring theme throughout The Covert Code Podcast: strong relationships and strong businesses are intentionally built, measured, and continually improved.

Your Vision and Mission Shouldn’t Live in a Notebook

Companies frequently go through elaborate exercises to create a mission, vision, and values.

Then they file the document away.

Three years later, the company has evolved.

The people have changed.

The customers have changed.

The market has changed.

But nobody has revisited the original strategy.

Jaclyn recommends periodically returning to those fundamentals.

Are they still true?

Are they still aligned with the organization you’re becoming?

Are the people you’ve hired aligned with those values?

Your People Create Your Culture

Company culture isn’t simply what leadership writes on the wall.

Culture emerges through the people inside the organization.

If leaders bring in people who consistently conflict with the company’s values, the culture changes.

Conversely, a smaller team of highly aligned people can often accomplish extraordinary things because trust, energy, and purpose work together.

Sometimes Good Leadership Means Letting People Grow Away From You

Alignment doesn’t mean everyone stays forever.

People evolve.

Companies evolve.

Sometimes someone who was perfect for the organization five years ago needs something different today.

That isn’t always a failure.

Jaclyn argues that great leaders should sometimes celebrate when someone they’ve developed becomes capable of moving on to something bigger.

If the relationship was built properly, that former employee can remain part of your Relationship Capital for years.

Your Relationships Are an Asset—If You Treat Them Like One

Your contacts aren’t Relationship Capital simply because their information exists in your phone.

The value comes from action.

Listen.

Follow up.

Offer something.

Make introductions.

Remember what people tell you.

Do what you say you’re going to do.

Stay in touch.

Know when to keep investing.

Know when to move on.

And recognize that the person who cannot help your business today may become one of the most important relationships in your career five years from now.

That’s why relationships aren’t simply part of business.

They can become one of the most valuable assets you build.

About Jaclyn Strominger

Jaclyn Strominger is a Success Strategist, creator of the LEAP Framework and Relationship Capital Formula, co-author of Charting True North, and host of Unstoppable Success.

Learn more at JaclynStrominger.com.

Connect with Jaclyn on LinkedIn, Instagram, and Facebook.

Listen to Unstoppable Success.

Learn more about Charting True North.

Watch the Full Episode

Watch Episode 130 of The Covert Code Podcast featuring Jaclyn Strominger and discover how to turn your existing network into authentic relationships, opportunities, and long-term Relationship Capital.

Why Your Relationships Are Your Greatest Business Asset

The Covert Code Podcast | Episode 130

Host: Anna Covert

Guest: Jaclyn Strominger

Creator: Relationship Capital Formula and LEAP Framework

Book: Charting True North

Podcast: Unstoppable Success


Anna Covert [00:00:03]:

Aloha. My name is Anna Covert, and this week on The Covert Code, the topic is Why Your Relationships Are Your Greatest Business Asset.

My very special guest is Jaclyn Strominger, founder of Leap To Your Success, speaker, co-author of Charting True North, host of the Unstoppable Success podcast, and creator of the Relationship Capital Formula and LEAP Framework.

For over 30 years, she's worked with leaders, entrepreneurs and high performers to help them create relationships that build influence, unlock opportunities and create long-lasting success.

Thanks so much for being here today, Jaclyn.

Jaclyn Strominger [00:00:42]:

I'm so glad to be here with you, Anna. It's such a pleasure.

Anna Covert [00:00:48]:

Thank you.

We like to begin with the CliffsNotes version.

Tell us the Jaclyn story. How did you get from where you were to where you are right now?

Jaclyn Strominger [00:00:58]:

Oh my God. CliffsNotes.

I have a couple of different stories, but the one that really solidifies where I'm sitting right now also explains how I ended up in Reno, Nevada.

I'm an East Coast girl.

Back in 2018, I was living in Massachusetts. I have two children. One is now in college, and one is literally about to go to college.

I grew up in Massachusetts, went from Massachusetts to Pittsburgh, Pittsburgh to New York City, New York City back to Massachusetts.

I was doing what we all do. I was driving my kids to school and living life.

Then one day I was listening to Katy Perry's song Roar, and I realized I wasn't roaring anymore.

I thought: Where am I going? What am I doing? I'm on freaking autopilot.

Something needed to shift.

I went home and wrote out my vision and mission.

My husband came home, and I told him we basically had to make a choice.

We were two ships passing in the night.

He was working in Boston. I was working outside Boston. We'd come home and just exist.

I didn't feel like that was what I wanted for our family.

Something had to give.

We started talking about moving.

Then while my husband was attending a conference, he asked, "What do you think about Reno, Nevada?"

I said, "Honey, Google."

I looked it up.

It said it was an up-and-coming area, great outdoors, near Lake Tahoe.

For everyone who doesn't know, Reno is nowhere near Las Vegas. It's approximately an eight-hour drive.

We came out around Memorial Day weekend.

My husband is a physician, so he was meeting with doctors.

We ended up finding a house.

On August 1, we rolled out of Massachusetts.

It happened incredibly fast.

Then I realized:

I had built businesses because I knew people.

And now I knew nobody.

If you count my realtor and the person who did my mortgage, I knew two people.

I had always been the person people called when they needed a connection.

"Do you know someone?"

I always knew somebody.

I realized I needed to take that natural skill and put it intentionally into action.

The moving truck was late.

I took a cold shower because I discovered we didn't have hot water.

And two days after moving into Reno, I went to an event with approximately 25 women.

And we took off.

Eventually, people who had lived in Reno their entire lives started telling me, "Jaclyn, you know more people than I do."

That's when I realized I needed to teach people how to build relationships.

My business took off.

That's really how I ended up in Reno and how I ended up doing what I'm doing now.

Anna Covert [00:07:03]:

That's such a great story.

I went to Bentley University in Waltham, Massachusetts, so I love Boston.

My Boston story is that we didn't have smartphones when I was there. We had MapQuest.

I'm dyslexic, so if you missed one turn, forget it.

I got a car my second year and ended up stuck in a rotary because nobody would let me out.

I was crying after about ten minutes.

A police officer noticed me, helped me out and said, "Sweetheart, if you're going to drive in Boston, you have to buck up."

I said, "Yes, sir."

Then I became a crazy Boston driver.

When I got to Hawaii, that backfired because people don't drive like that here.

But I love your story because relationship-building really is a skill that can be learned.

You also have this great podcast, and I'm excited to be on yours sometime.

Why did you decide to write the book?

You co-authored it. Did you always want to write a book?

Jaclyn Strominger [00:08:43]:

It actually goes back to relationships.

I started appearing on podcasts because being on a podcast itself is a skill.

As a success strategist, I was helping people become what I call the CEO of you.

Leadership starts there.

I appeared on different podcasts talking about leadership and eventually met Damian Andrews.

I stay in contact with a lot of people after being a guest on their podcasts.

Damian and I continued talking.

Then he saw something I posted after I started my podcast.

He said, "I think we need to start a mastermind."

I said, "I think you're right."

We tried promoting it through LinkedIn and social media, and eventually I thought, this is more pain than I want to deal with.

But we kept meeting on Zoom and having these amazing conversations.

Eventually we asked:

What if we wrote a workbook together about leadership?

We started looking at the leadership books that were already out there, and there wasn't really one structured the way we were thinking about it.

So through building this relationship, the opportunity came for the two of us to co-author a book.

We wanted to give people a framework for beginning to lead themselves through what we call authentistic leadership.

The book has several sections.

It begins with understanding yourself as an authentic leader.

There's emotional intelligence.

Who are you?

Be the CEO of you before you can be the CEO of anything else.

There are exercises around emotional intelligence and authenticity.

Then there are approximately 30 or 40 journal prompts using words such as fear, laughter, calm and other emotions.

What comes into your mind when you see that word?

What meaning have you attached to it?

Then the final portion is 30 days of reflection.

Each day, you reflect on how you showed up as a leader — whether you're leading yourself, a team or a company.

Every one of us is a leader because we have to lead ourselves first.

It's a way to close out each day so you can start tomorrow fresh.

We're also developing more around the book, including what we're calling Pathfinder and a licensing program where people can use the book within masterminds and become Pathfinder guides.

Anna Covert [00:14:31]:

That's very exciting.

Now tell me about your Relationship Capital Formula.

That's not actually in the book, right?

Jaclyn Strominger [00:14:41]:

No. That's not in the book.

It's particularly important today because we have so much social media.

The Relationship Capital Formula is:

RC = P × A.

Relationship Capital equals People times Action.

Then you can take that to the nth degree because of all the people the people you know also know.

You and I respectively know hundreds of people.

If you look at LinkedIn, I have thousands of connections.

Do I know all of them personally?

No.

But they're connections.

The key is that every one of those people has their own network.

So I meet you.

What's my action?

Maybe I invite you to something.

Maybe I introduce you to someone.

But I have to do something.

Relationship Capital is the people you know times an action.

It isn't simply shaking someone's hand.

And it's definitely not immediately unloading everything you sell onto someone.

Anna Covert:

Pitch slapping.

Jaclyn Strominger:

Exactly.

Don't do that in person either.

Think about the compounding effect.

You meet someone.

You have an action.

Then that person introduces you to six more people.

Each of those people knows hundreds of people.

The network expands incredibly quickly.

That's why building that initial relationship is so important.

The action is:

Connect. Engage. Offer.

What is the action?

That's really the heart of the Relationship Capital Formula.

Anna Covert [00:18:12]:

I still love paper business cards.

I've tried digital ones twice, but I can't remember the person once their information goes straight into my phone.

With a physical card, I remember it.

Then I can find the person on LinkedIn, follow up or send the information to my assistant.

Jaclyn Strominger [00:18:41]:

I love a memorable card.

My card has a QR code, but it also has texture.

Invest in a good card.

Another thing I tell people is to create a way to capture what you discussed with someone.

Your phone can be useful for taking notes immediately afterward.

Then you can potentially use technology or AI to parse those notes into follow-up actions.

The key thing is creating the follow-up.

I see so many people go to an event, spend two hours there and then do nothing.

The stack of cards sits on the desk.

Part of the Relationship Capital Formula is creating the action plan.

If you spend two hours at an event, be prepared to spend meaningful time on the follow-up.

You have to get the ROI from the time you invested.

Anna Covert [00:20:48]:

And a generic email sent to everyone at the event doesn't feel authentic.

Jaclyn Strominger [00:20:52]:

Exactly.

On my website, I have free workbooks.

Someone can message me and say they want the networking workbook.

It's a simple workbook with steps for knowing who you're reaching out to and how you're going to follow up.

I also have a deeper seven-day Relationship Capital Challenge.

It's free.

The reason I call it a challenge is because I want people to seriously examine where they're spending their time.

When I moved to Reno and didn't know anyone, I started attending all these different networking events.

Eventually, I had to stop and ask:

Which of these are actually worth my time?

That's part of the challenge.

Look at where you're spending time and what the ROI actually is.

If you're not getting an ROI, don't just keep attending because someone told you it takes years.

Anna Covert [00:22:56]:

It's like fishing.

If you're in the boat and you keep fishing in the same cove and there aren't any fish, eventually you have to move the boat.

Jaclyn Strominger:

Exactly.

You have to go somewhere else.

Anna Covert [00:23:34]:

I also think about what you can offer someone that doesn't immediately feel salesy.

My book has been one of the best business cards I could have.

People don't tend to throw books away.

Maybe it's the book. Maybe it's your podcast. What is the thing you can offer?

Jaclyn Strominger [00:24:07]:

That's the offer part of Connect, Engage, Offer.

You and I could be talking at an event.

You might mention something related to Forbes.

I could realize I know someone who might benefit from that.

So I offer to make an introduction.

You're offering a human to a human.

But that requires listening.

Actually listen to what someone is saying.

Remember their name.

Don't spend the conversation thinking about what you're going to say next.

Take it in.

Pause.

Think:

Is there something I might be able to offer this person?

Maybe it's a book.

Maybe it's an article.

You can follow up and say, "It was great meeting you. Based on our conversation, I thought you might enjoy this article."

Then perhaps the relationship moves to coffee or a Zoom call.

It's a process.

The place people get hung up is saying, "She's not the right client. I don't have anything to sell her."

Take selling out of it.

Maybe you simply connected and want to build the relationship.

Every relationship can potentially lead to an opportunity.

Anna Covert [00:26:25]:

Absolutely.

I get business from people I haven't heard from in years.

Suddenly someone has a problem with fraud and thinks of me.

Or they need help with a website.

Find what you can genuinely add value around and become a resource.

Jaclyn Strominger [00:26:55]:

When you become that resource for somebody, it changes the entire dynamic.

We get so caught up in needing to make a sale.

Of course we all need sales.

But think long-term.

Walk into a local store.

See what they need.

I have a client building a vegan bakery business.

I walked into a coffee shop and noticed they had baked goods from another bakery.

I asked whether they might be interested in vegan cinnamon buns, vegan donuts or other vegan products.

They initially said they already had a bakery relationship.

I said, "I'm sure you do. But I bet they're not giving you those vegan products your customers might want."

They went and got the name of the person my client should contact.

It didn't take much.

It's a contact game.

I passed the opportunity to my client.

Anna Covert [00:29:02]:

It also feels good to share what you're passionate about.

I do nonprofit work and love teaching people about website design and digital strategy even if there's no business opportunity attached.

Jaclyn Strominger [00:29:26]:

Exactly.

Building relationships is the long game.

I have business relationships and friendships I've had for years.

It doesn't matter how much time has passed.

I can pick up the phone and say, "I'm looking for somebody who needs X, Y or Z. Do you know anyone?"

Anna Covert [00:30:08]:

Now someone goes to the networking event.

They listen.

They remember names.

They follow up.

Then they don't hear anything.

How do they maintain momentum without becoming annoying?

And how do they know when to stop?

Jaclyn Strominger [00:30:41]:

Think in twos.

If I meet you today, I send a follow-up.

Use two methods.

Email and social.

Email and text.

Whatever is appropriate.

Track what you're doing.

Write it down.

Use your CRM.

Find some way to know what you've done.

Maybe the person didn't receive the email.

Maybe it went into spam.

Two days later, reach out through another appropriate channel and simply say:

"I wanted to make sure you received the message I sent."

If another couple of days pass and you still don't hear back, acknowledge that everyone is busy.

Tell them you're going to put them on your call list for next month.

Pick a date.

Put it on your calendar.

Then make sure you actually reach out on that date.

You can also give them an out:

"If you aren't interested in staying connected, please let me know. No harm, no foul."

Make it easy.

You can even make it lighthearted.

The point is to remain consistent without making it weird.

Anna Covert [00:34:01]:

That's the important part.

It's business.

You need commitment and consistency.

Jaclyn Strominger [00:34:16]:

Exactly.

Remember that it's your business.

If you've decided that building relationships is an important part of your business, then building the relationships is your responsibility.

Not everyone you meet will have the same intention.

But if your intention is to build relationships, you need to take the action.

Don't get so caught up wondering whether you're saying the perfect thing or whether they like you.

If they don't respond, don't immediately get into your head.

You're the one making the connection.

You're the one building the relationship.

Anna Covert [00:35:23]:

You can't win them all.

You move on.

It's like sampling at Costco. You're not going to love every snack. Keep going until you find one you like.

Jaclyn Strominger:

Exactly.

Some will. Some won't. So what?

It gets easier the more you do it.

Anna Covert [00:35:54]:

Let's talk about the LEAP Framework.

Jaclyn Strominger:

The Relationship Capital Formula is part of a larger system of creating an intentional action plan.

LEAP came out of the experience I had when I made that huge move across the country.

I realized how many of us become stuck on the hamster wheel.

We keep driving in circles.

LEAP stands for:

Leveraging Communication.

Energy.

Action.

Performance.

Leveraging Communication is both the communication you have with yourself and what you communicate to other people.

It's your vision.

Your mission.

Your strengths.

You need clarity around how you communicate who you are to yourself and to the world.

Then comes Energy.

How are you showing up?

How do you show up every day?

How are you showing up for yourself?

When you walk into the office, are you excited?

Are you worried about what people think of you?

How are you coming across?

Energy matters enormously.

We've all heard in sales that someone can hear your smile through the phone.

If you're not smiling, don't make the call yet.

Stand up.

Reset.

If you're walking into a room thinking, "I need a sale, I need a sale, I need a sale," people can feel that energy.

I went through a period where I was feeling desperate because I was going through the motions.

When I fixed that, it felt like the world opened back up.

Then the A is Action.

We've clarified our communication.

We know our vision and mission.

We've looked at our energy.

Now what's the actual plan?

What steps are we taking to reach that vision?

Finally, Performance.

I describe Performance as:

Measure. Monitor. Adjust.

Look at how things are actually performing.

People talk about 30-, 60- and 90-day plans and 90-day sprints.

The important part is actually measuring what happened.

If you keep fishing in the same cove and there aren't any fish, stop wondering why you aren't eating.

Move the boat.

Measure what you're doing.

Monitor it.

Adjust.

If you aren't measuring something today, put a mechanism in place so you can.

That's where the LEAP Framework came from.

It applies to personal life and business life.

And you need to revisit it.

People write a vision and mission, put it in a notebook and never look at it again.

But people change.

Businesses change.

Anna Covert [00:41:59]:

That's something I've learned doing branding.

We'll go through the brand exercise with a company, and then three years fly by.

It's still the same company, but it's not really the same company anymore.

Now I like to do an annual pulse check.

This is what we said we wanted to be.

Is that still who we are?

Is that still who we want to become?

Jaclyn Strominger [00:42:11]:

Exactly.

It matters tremendously from a leadership standpoint.

People evolve.

Companies evolve.

Companies may be created by a founder, but the culture becomes shaped by the people the company hires.

Those hiring decisions need to connect back to your values, your vision and your mission.

If you hire the wrong people, you're going to feel it.

Anna Covert [00:42:43]:

That's absolutely true.

People don't all need to be identical, but there needs to be an alignment of values and energy.

One person who is completely misaligned can create dissonance throughout an organization.

Jaclyn Strominger:

Exactly.

And sometimes alignment changes.

People change.

Companies change.

Sometimes the people who were perfect for the business at one stage aren't the right people several years later.

That doesn't necessarily mean something bad happened.

It may simply be growth.

Great leaders also need to recognize when the people they've developed are ready to grow and move on.

If you've helped someone become capable of doing something bigger, celebrate that.

Pat yourself on the back.

You've helped elevate that person.

And if you've done the relationship part well, that person may remain one of the strongest relationships you have for the rest of your career.

Anna Covert [00:46:01]:

Absolutely.

This has been such a great conversation.

How can people connect with you?

Jaclyn Strominger:

The best place is my website.

You can also find me on LinkedIn.

I'm probably more active on LinkedIn than on any of the other social platforms.

Anna Covert:

We'll include all of Jaclyn's links below.

Thank you so much for being here.

And to all of my listeners, if you have not yet subscribed to this channel, please do so.

We've reached more than 220,000 subscribers, and it's overwhelming. It's because of you and your aloha.

Please share this content with people you think will benefit from it so I can continue bringing great guests like Jaclyn onto the show to share their wisdom.

I cannot wait to see you next week in the pixels.

Aloha.


I hope you enjoyed this episode of The Covert Code Podcast.

If you're loving the insights we share here, follow us on your favorite podcast platform and leave a review.

Your support helps us reach more digital innovators like you.

Share this episode with your friends and colleagues on social media and help spread the word.

If you're in the solar industry or simply curious about where clean energy is headed, follow Anna Covert's other podcast, The Solar Coaster.

The show explores the real stories, trends and challenges shaping the solar industry through bold conversations and practical takeaways.

Follow The Solar Coaster so you don't miss an episode.

Thanks for tuning in.

See you in the pixels. Aloha.

Comments Off on Episode 130 – Jaclyn Strominger

Episode 129 – Tamara Laine

By |2026-09-04T06:52:54+00:00September 4th, 2026|Podcasts|

AI Is Changing Lending. But Can We Trust It?

Featuring Tamara Laine, Founder & CEO of MPWR

Artificial intelligence can analyze enormous amounts of information faster than any human underwriter.

But should it decide whether you qualify for a mortgage?

Should an AI determine whether an entrepreneur receives access to capital?

And what happens when an algorithm misunderstands someone’s financial life?

Those questions are becoming increasingly important as AI moves deeper into banking and financial services.

In this episode of The Covert Code Podcast, Anna Covert sits down with Tamara Laine, Founder & CEO of MPWR, to discuss the future of AI-powered lending, financial inclusion, privacy, regulation and why human judgment still matters when technology begins influencing consequential financial decisions.

Traditional Credit Was Built for a Different Economy

One of the fundamental problems Tamara wants to solve is surprisingly simple:

The workforce changed.

Credit models largely didn’t.

Traditional lending systems were designed around a borrower with relatively predictable employment, often represented by a W-2 salary and conventional credit history.

Today’s economy looks very different.

People freelance.

They own businesses.

They work multiple jobs.

They drive for gig platforms.

They create digital content.

They work as fractional executives.

They may generate considerable income without receiving a traditional paycheck every two weeks.

Yet unconventional income can still look like risk when evaluated by systems designed for another era.

A Credit Score Is Only a Moment in Time

Traditional credit reports provide valuable information.

But they also provide a snapshot.

Tamara argues that someone’s financial credibility can be difficult to understand from a single moment.

A borrower could have experienced fraud.

A divorce.

A temporary layoff.

A medical expense.

A period of business investment.

Any of those events can affect the financial picture at the precise moment the report is pulled.

MPWR’s approach is to bring together a larger set of trusted data points to help lenders see patterns and trends rather than relying exclusively on a static snapshot.

Is someone’s financial position improving?

Declining?

Stable?

What does the broader financial behavior indicate?

The goal is a more complete picture.

AI Can Help Prepare the Decision Without Making It

One of the most important distinctions in Tamara’s approach is what MPWR does not ask AI to do.

It doesn’t independently make the final underwriting decision.

That boundary matters.

AI is excellent at many analytical and organizational tasks.

It can process information quickly.

It can identify missing data.

It can assemble information for human review.

It can help reduce repetitive manual work.

But AI models can still hallucinate, misunderstand information and produce unreliable outputs.

The consequence of a mistake becomes much more significant when the decision affects someone’s ability to buy a home or obtain financing.

Tamara summarizes the philosophy simply:

AI prepares. Humans decide.

The Human-in-the-Loop Model Matters

We’ve discussed the importance of human oversight frequently on The Covert Code Podcast.

AI can dramatically increase what a capable professional can accomplish.

But that doesn’t eliminate the need for expertise.

In fact, it may make expertise more important.

A knowledgeable professional can recognize when something looks wrong.

They can challenge an assumption.

They can ask a better question.

They can determine whether the technology has overlooked important context.

Someone without that expertise may simply accept the result.

That becomes especially dangerous in regulated industries.

Not Every Piece of Data Belongs Inside AI

Financial systems handle some of the most sensitive personal information businesses can possess.

That doesn’t mean every piece of that information should be given to an AI model.

Tamara explains that MPWR deliberately separates extremely sensitive information, including Social Security numbers, from the AI layer.

The broader principle is important for every business deploying AI:

Does the AI actually need access to this information?

More data isn’t automatically better.

If information creates unnecessary risk without contributing meaningfully to the task, there may be no reason for the model to see it.

Build AI Around Permission, Not Unlimited Access

MPWR also limits what individual agents can access.

Instead of giving one AI agent every available piece of information and allowing it to operate freely, agents are restricted to particular information and responsibilities.

This is conceptually similar to the principle of least privilege in cybersecurity.

A person or system should have access to what it needs to perform the job—and not necessarily everything else.

Tamara uses email as a practical example.

An AI assistant doesn’t necessarily need complete access to every message, attachment and contact in someone’s inbox.

A separate workflow could forward specific items to the agent when action is required.

That creates a boundary.

Boundaries matter when AI systems become increasingly capable of taking action rather than merely generating text.

Trusted Data Becomes More Important as AI Gets Better

An AI system is only as useful as the information feeding it.

Tamara describes MPWR’s agents as an orchestration layer that can bring together trusted third-party data used within the lending process.

The agent doesn’t simply search the internet for an answer.

It operates within defined information environments.

That helps reduce one of the most familiar problems with generative AI: hallucination.

If the information isn’t present, the system should not invent an answer simply because the user asked for one.

That sounds obvious.

Anyone who has spent significant time using generative AI knows it isn’t always how general-purpose models behave.

Regulation Can Actually Encourage Innovation

Technology companies often portray regulation as the enemy of innovation.

Tamara sees another side.

Investors dislike uncertainty.

Early-stage investors may be evaluating what a company and its market will look like five or ten years in the future.

If nobody knows what AI regulations will ultimately permit, prohibit or require, that uncertainty itself becomes a risk.

Clear standards can provide companies and investors with a framework for building responsibly.

In financial services, many data-protection requirements already exist.

The challenge is evolving those frameworks as new AI capabilities create new risks.

Should Businesses Collect the Data Simply Because They Can?

Anna raises another issue that extends well beyond financial services.

Businesses have become accustomed to collecting enormous quantities of customer information.

Marketers especially love data.

But availability doesn’t automatically create necessity.

Businesses should ask:

  • Why are we collecting this information?
  • How does it improve the customer experience?
  • Where is it stored?
  • Who can access it?
  • Which vendors receive it?
  • Can the customer correct it?
  • Can it be deleted?
  • What happens if the vendor experiences a breach?
  • Does AI truly need access to it?

The cheapest data breach to resolve is the one involving information you never needed to store in the first place.

AI Is a Junior Analyst, Not the CEO

One analogy from the conversation is especially useful.

Think of AI like a junior analyst.

A junior analyst can do tremendous work.

They can research.

Organize.

Compare.

Draft.

Calculate.

Summarize.

But someone experienced still needs to review the work.

And the training doesn’t stop simply because the analyst produced one good result.

AI similarly requires feedback, correction and continuing guidance.

Ignoring that feedback loop is one of the easiest ways to turn a powerful productivity tool into a source of bad information.

The Bigger Risk May Be What AI Does to Human Thinking

Tamara spent part of her career as a journalist.

Writing, research and critical thinking were skills she developed through years of practice.

Now AI can generate an editorial, research a topic or summarize information in seconds.

That’s incredibly useful.

But Tamara raises an uncomfortable question:

What happens to those skills if we stop practicing them?

She intentionally continues writing without AI at times, including writing by hand, specifically to preserve abilities that technology could otherwise begin replacing through convenience.

What Happens to the Next Generation?

The concern becomes even larger for children who may never develop the original skill before technology begins performing it for them.

Previous generations had to research.

Find sources.

Compare them.

Determine which information was credible.

Students increasingly receive an answer immediately.

The question isn’t whether AI should disappear from education.

It won’t.

The challenge is teaching students to interrogate the answer.

Where did this information come from?

Is the citation real?

Is the source trustworthy?

What perspective is missing?

What assumptions did the system make?

Those may become some of the most important literacy skills of the next generation.

AI Should Expand Education, Not Shrink It

The conversation explores an interesting tension.

AI can tailor learning experiences to an individual student.

A lesson could potentially be presented visually, verbally, interactively or through a completely customized experience.

That could make education dramatically more accessible.

But personalization has a downside if it only gives people more of what they already know they like.

Part of education is exposure.

We discover interests because somebody shows us something we didn’t know existed.

If an eight-year-old designed every dinner, they might choose macaroni and cheese every night.

The role of a parent is partly to put something unfamiliar on the table.

Education works the same way.

The New Economy Requires New Financial Infrastructure

MPWR’s larger mission reflects a change that’s already happening throughout the economy.

The traditional career path isn’t disappearing entirely.

But it’s no longer the only model.

A professional may have several clients.

An entrepreneur may run multiple businesses.

A creator may have six different revenue streams.

A senior executive may serve several companies fractionally.

Those people can have excellent earning power while appearing unusual to systems built around a single employer and traditional salary.

Financial infrastructure needs to understand that reality without abandoning responsible risk management.

What Is a Fractional Executive?

Tamara also explains a professional model that’s rapidly becoming more common.

A fractional executive is an experienced C-suite leader who operates as part of a company but isn’t necessarily employed there forty hours per week.

A company may have a fractional CMO, CFO, COO or another specialized executive working ten or fifteen hours each week.

Unlike a consultant who may primarily advise or complete a defined project, a fractional executive generally assumes ongoing responsibility for strategy, execution and outcomes.

This can give small and midsize organizations access to experienced leadership without the cost or need for another full-time executive.

What The Frac?

Tamara and fellow fractional executive Nicole Zeno turned that experience into their own show, What The Frac?.

The podcast began as a way to explain fractional leadership and has grown into broader conversations about marketing, technology, business growth, entrepreneurship and the changing C-suite.

It’s also another example of something Tamara clearly values: education.

Whether through investigative journalism, fintech, speaking or podcasting, much of her work involves making complicated ideas easier for people to understand.

What Does Success Look Like for MPWR?

MPWR’s goals aren’t simply about deploying more AI.

Tamara describes the company’s key performance indicators around three major outcomes:

  • Increase customer acquisition
  • Reduce risk and write-offs
  • Reduce manual underwriting work

The company is targeting major reductions in repetitive manual activity so underwriting can happen faster while humans continue making the consequential decisions.

That distinction may ultimately determine whether AI becomes a trusted part of regulated finance.

The Future of AI Depends on Trust

There are countless exciting things AI can do.

That’s no longer the difficult question.

The harder questions are:

What should it do?

What information should it see?

What decisions should remain with people?

Who is accountable when something goes wrong?

And can we reconstruct exactly how a consequential outcome was reached?

The companies that answer those questions thoughtfully may ultimately be more successful than the companies racing to automate everything first.

Because efficiency creates adoption.

But trust creates longevity.

Watch the Full Episode

Watch the full conversation with Tamara Laine on The Covert Code Podcast.

Connect with Tamara Laine on LinkedIn.

Learn more about MPWR and its approach to policy-bound AI for regulated lending.

And follow Tamara and Nicole Zeno on What The Frac?.

AI Is Changing Lending. But Can We Trust It?

The Covert Code Podcast

Host: Anna Covert

Guest: Tamara Laine

Founder & CEO: MPWR


Anna Covert [00:00:04]:

Aloha. My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is AI Is Changing Lending. But Can We Trust It?

My very special guest is Tamara Laine, Founder & CEO of MPWR, a fractional C-suite executive, Emmy Award-winning journalist, business strategist, and co-host of What The Frac?

Tamara works at the intersection of AI, finance, communication and growth, helping organizations meet the needs of today with data-driven strategy, technology transformation and emerging technologies.

Today we're going to discuss how AI is transforming lending, why trust and accountability are more important than ever, and what responsible innovation looks like in the age of AI.

Thanks so much for being here today.

Tamara Laine [00:00:59]:

I'm so happy to be here. Thank you for having me.

Anna Covert [00:01:01]:

To begin, you have such a wide array of things you do.

Give us the CliffsNotes version of the Tamara story. How did you get from where you were to where you're sitting right here in this chair?

Tamara Laine [00:01:13]:

I'll do it as fast as I can.

I started my career in documentaries and moved into investigative journalism.

That's where I really got to dig into things like political corruption, and technology became part of that.

While I was reporting, one of the things I was working on involved founders and impact companies.

Then I started doing a story on ethical AI, and that's where I collided with AI.

After I left the news, I helped build a startup.

After leaving that, I decided I wanted to create a company that made a very big impact on people's lives.

That's how I came to MPWR.

Anna Covert [00:02:07]:

Tell us: What does MPWR do?

Tamara Laine [00:02:10]:

MPWR is an ecosystem for underwriting.

We create policy-bound agents for highly regulated tasks, starting with underwriting.

Our agents are action-oriented. They do the work.

They create the underwriting packages to give to underwriters.

We're strategically keeping humans in the loop while letting AI do the busy work.

Anna Covert [00:02:33]:

That could probably sound scary to some people, but there's a lot of opportunity here.

This is ultimately designed to benefit consumers too, right?

Tamara Laine [00:02:43]:

One hundred percent.

The impetus for MPWR started with seeing friends of mine getting denied loans.

I personally had trouble accessing a credit card.

I met a massage therapist who couldn't get a loan simply because she had nontraditional, inconsistent income and didn't have a W-2.

As I really looked at this problem systemically, I saw this bubbling problem of a new economy emerging in the U.S. and globally.

There are new types of borrowers.

Gig workers.

Creators.

Gen Z.

Thin-file borrowers.

Expats and newly arrived people.

A huge percentage of the U.S. workforce is now nontraditional, meaning they don't have a traditional W-2 or may have more than one job.

In traditional credit, that can look like a red flag.

But now we understand that this is simply the new consumer and the new workforce.

So how are we going to handle this large population in the financial sector?

At the same time, financial institutions are asking how to reach borrowers they don't completely understand.

I saw that as a great opportunity not only to be more inclusive, but to bring this new economy into the financial system.

Anna Covert [00:04:15]:

That makes a lot of sense.

We have so many small businesses and solo businesses now.

Something similar happened to me during COVID when I wanted to refinance my home.

It was incredibly difficult because I didn't have a traditional W-2, even though I had assets and a successful business.

Here in Hawaii, everything had changed during COVID, and the process took almost a year.

Tamara Laine [00:04:56]:

Exactly. Case in point.

My mission is helping people who are traditionally left out of the system enter the system.

But it also affects people you wouldn't necessarily expect.

I talked to someone recently whose parents were retired and couldn't buy a house because they didn't have a W-2.

They had assets.

But assets didn't translate properly when they were trying to get a mortgage.

It's fascinating how many different circumstances can make it difficult to get a good loan.

It could be an excellent founder or a retired couple.

Anna Covert [00:05:39]:

What about people who have been victims of fraud?

They may have corrected the problem, but some evidence can remain on their records.

What is your AI looking for?

What factors help create a more level playing field?

Tamara Laine [00:06:01]:

We bring hundreds of data points into our underwriting packages.

What that does is create a more dynamic picture of the person.

When your credit report is pulled today, it's essentially a point in time.

Instead of only a point in time, we're trying to create a picture of trends.

Someone could be trending up.

They could be trending down.

They could be flat.

But you're seeing a better picture of who that person is rather than a static moment.

That moment might happen right after fraud.

Right after a divorce.

Right after being laid off.

There is so much that can happen that doesn't necessarily represent the full picture of someone's financial credibility.

Anna Covert [00:06:49]:

That makes a lot of sense.

Who is your primary target audience?

Tamara Laine [00:06:57]:

We're B2B.

We sell to financial institutions, and then the financial institutions leverage our product to reach their audiences.

Anna Covert [00:07:07]:

Privacy and protection are major topics I talk about frequently.

What types of safety protocols are important here?

As we talk about ethical AI, how do you give the technology what it needs while maintaining some distance from risky or highly sensitive personal information?

Tamara Laine [00:07:32]:

One of the good things about operating in a highly regulated industry is that a lot of rules already exist around data privacy and financial information and how it passes between providers.

We're connected with third-party vendors for data, and it's a very long process.

There are policies between us and our vendors to ensure the data is safe, secure, stored correctly and not being misused.

We're fortunate in the sense that data privacy in financial services isn't a completely new frontier.

Financial information already has to be protected.

We make very deliberate choices about what AI touches and what it doesn't.

There are things you can automate while keeping certain data separated from the AI systems.

We've put a lot of time and diligence into creating that.

Anna Covert [00:08:51]:

What's an example of information you're intentionally excluding?

Tamara Laine [00:08:55]:

Social Security numbers.

Obvious information that's incredibly sensitive doesn't get touched by AI.

It's in a completely different system and passes through in different ways.

There are key elements we intentionally keep away from the AI systems.

There are already rules around this.

I'm sure as we go further, we'll discover things we haven't thought of yet.

But I believe regulation around this is important.

Anna Covert [00:09:31]:

I definitely agree.

I'm half Swedish and spend time in Sweden every year.

It's interesting watching what's happening in Europe and how they've led the charge around consumer protection.

California has been one of the closest examples here in the United States.

Data mapping becomes extremely important.

What data are we storing?

Can we correct it?

Can we modify it?

Can we purge it?

We're still at the beginning of what these policies are going to need to become.

Tamara Laine [00:10:21]:

That's something we follow closely because we're talking with customers in the EU.

We're following the EU AI policies coming out now.

Some people are very against regulation.

From my standpoint as a startup founder, regulation can be good because investors hate uncertainty.

If investors can understand what's coming next, they have more comfort investing significant capital into emerging technology over a five- or ten-year horizon.

I lean toward the idea that uncertainty can kill innovation.

Anna Covert [00:11:19]:

I agree with that.

I also think we need to question what we collect.

I'm in marketing and run an advertising agency, and marketers are known for hoarding data.

We're like chipmunks—we want all of it.

But is that the right decision for your business?

Should you collect this data?

Should you use it?

Is it valuable?

Is it risky?

From your perspective, how are people potentially using AI incorrectly or in ways that create unnecessary risk?

Tamara Laine [00:12:00]:

The elephant in the room is that we do not use AI for decisioning in underwriting.

That is risky.

It's considered one of the riskiest areas by EU standards.

AI isn't there yet.

We use a deterministic decisioning model that can uphold the policies, regulations and frameworks.

AI still makes mistakes.

Anna Covert [00:12:40]:

The hallucinations.

Tamara Laine [00:12:43]:

Exactly.

AI is good at some things.

AI should not be used for other things.

When we start trusting it to independently make decisions, that's where I become nervous.

You can trust it to do tasks.

You can use it for analysis.

That's where we focus in our company.

Trust in AI is about putting AI in its lane where it's really good and understanding where the human needs to remain in the loop.

Anna Covert [00:13:32]:

One thing I'm seeing is that people forget there's a feedback loop with AI.

They get the result and maybe it's not correct, but they never teach the technology what the right answer should have been.

The ongoing nurturing and training of these systems is paramount.

I was working with AI today on a document, going back and forth with it as a thought partner and comparing different platforms.

At one point I said, "Wait. You told me I needed to do this, but then when you built the document, you didn't do it."

And it essentially responded, "Oops. You're right. Good catch."

This was an important document.

That's why experts in the loop are so important.

Tamara Laine [00:14:24]:

Exactly.

The underlying value in our company is humans in the loop.

AI is amazing.

It really is transformative technology, and I'm thrilled to be on the cutting edge of it.

But humans still decide.

Anna Covert [00:14:54]:

I sometimes make the analogy of Santa and the elves.

The elves can build things, but they don't necessarily know what should be made.

Otherwise everybody might still be getting wooden horses.

We should be guiding what AI is doing.

Tamara Laine [00:15:12]:

I say it's like a junior analyst.

You have to train it and retrain it.

It's never really done.

Anna Covert [00:15:21]:

I'm interested in your perspective as a journalist.

I'm a writer and have written several books.

For a while I resisted AI because I like writing.

I like conceptualizing.

I like having my fingers on the keyboard.

I like the whole process.

Now that I'm using AI more, I wonder whether people lose some of those deeper conversations with themselves.

How are you thinking about AI and writing?

Tamara Laine [00:16:02]:

I was recently a keynote speaker at a conference and someone asked whether I was afraid AI would dull my expertise.

I think it's a genuine concern.

I used to write editorials in hours.

Now I sometimes think, I need to re-hone that skill.

I'm putting time aside to do that.

I'll turn off my computer and write by hand.

I want to make sure the skills I worked so hard to gain don't dull.

I think it's good for my memory too.

I'm particularly concerned about the next generation.

The expertise you and I have is something we fought hard for.

I believe AI can make lower-performing people significantly better.

But you may never reach excellence if you allow it to do all of your work and all of your critical thinking.

I think about that a lot.

How are we going to raise the next generation of leaders without making them dependent on AI?

Anna Covert [00:17:44]:

Absolutely.

My daughter just started seventh grade, and it's a really interesting time.

I have clients with older children, and one thing I hear consistently is that younger people sometimes don't have the same ability to research.

We learned it because we had to go to the library and really dig.

They don't always understand how to discern between good sourcing and weak sourcing.

I think AI could compound that.

Tamara Laine [00:18:30]:

That's a problem I've seen with interns over the last couple of years.

I'll ask for something and receive something that looks straight out of Google or ChatGPT.

It doesn't look questioned.

It doesn't look parsed through.

It looks like the first pass of whatever the search engine produced.

When I use these tools, I see a fact and ask for the source.

Where is the citation?

Give me the link.

I go to it.

I find it.

I read the article.

Then I come back.

Quite often the citations are fake or don't exist anymore.

It's easy to fabricate a website.

So we need to ask: What site is this from?

Is it credible?

Anna Covert [00:19:40]:

That brings us right back to what we trust AI with and what we don't.

What data points are you feeding into your platform to create a story that can then be reviewed by a human?

Tamara Laine [00:19:57]:

We're using third-party trusted data from legitimate sources.

You can think about our agents as an orchestration layer.

They're pulling everything together and doing some of the analytical work.

The system can identify that a data point is missing and determine whether it should pull additional approved information.

It creates the underwriting package.

One reason our agents are more trusted is that they can only operate within defined buckets of information.

If they're trying to pull something that's not there, they don't have an answer for it.

They don't make it up.

We've strategically orchestrated the underlying layer of agents so none of them have all the information at once.

One agent can't simply go rogue with everything because it doesn't have everything.

Anna Covert [00:21:22]:

So you're providing specific information and restricting what each agent can cross-reference.

Tamara Laine [00:21:34]:

Exactly.

That's the way I think systems should be constructed.

I've heard people talk about AI agents inside email inboxes.

I use an email agent that I adore.

It's called Day by Day AI.

It's inside my email, but it can't send emails.

Other people take a different approach.

They create a dedicated email account for an agent and only forward the messages that agent needs to act on.

That way the agent doesn't have access to everything.

It creates a clear firewall.

The broader purpose is preventing one agent from having access to everything.

When you're setting these systems up yourself, that's particularly important.

Enterprise systems are generally designed with more safeguards, but the thinking remains the same.

Anna Covert [00:22:56]:

That level of access can still scare me.

What I like to do now is type an email quickly and then copy it into AI and say, "Edit this."

Then I copy it back.

That saves me hours of formatting and rereading.

But we still know how to write our own email if the technology disappears tomorrow.

My concern is the kids who grow up with someone—or something—doing every step for them.

Where does the critical thinking go?

Tamara Laine [00:23:44]:

My daughter is eight.

You'll hear me say in my house several times a day, "Type, don't talk. Type, don't talk."

She grabs my phone and immediately uses voice-to-text or voice search.

These are all little things that add up.

I was asked about this at a conference and said it's a huge societal question.

It's not something I can answer.

The education system needs to grapple with it right now.

Universities need to grapple with it.

I think AI leaders need to be part of the conversation.

It's something I'm thinking about, but I don't have an answer yet because I'm watching it from both sides.

Anna Covert [00:24:42]:

I work with people in education who are looking at ways AI can curate content.

Instead of every student receiving the same textbook experience, AI could potentially present the same information differently depending on how someone learns.

There's also a shift from what people used to call "just in case" education—we learned lots of things just in case we needed them—to more "just in time" education, where information becomes available when we need it.

But how do you know what you're interested in if you're never exposed to it?

Tamara Laine [00:25:34]:

Exactly.

Think about how well you knew what you liked before college.

Part of the point of education is exposure.

Different cultures.

Different genres.

Different languages.

Different concepts.

If I allowed my daughter to tell me what she wanted to eat every day, she'd probably have macaroni and cheese and chicken nuggets forever.

We have to introduce her to other things so she can discover whether she likes them.

Anna Covert [00:26:15]:

That's where AI could be exciting too.

If you suddenly want to learn about ancient Egypt, for example, you could ask it to build a learning experience immediately.

You can quickly explore almost anything.

Tamara Laine [00:26:40]:

That's cool.

There are some skills, though, like writing, where I think the physical act matters.

There are studies about cursive and the relationship between handwriting, the brain and memory.

That's one of the reasons I still try to write even though my penmanship isn't great anymore.

Anna Covert [00:27:11]:

That's really interesting.

Tell us about your podcast.

I love the name What The Frac?

Tamara Laine [00:27:31]:

I met my co-host before I started MPWR.

We were both fractional executives.

One of our pet peeves was being called consultants.

Anna Covert [00:27:44]:

Explain what a fractional executive is for people who don't know.

Tamara Laine [00:27:46]:

A fractional executive is basically a C-suite executive in your company who isn't full time.

They act as your C-suite executive.

They're embedded in the company but don't necessarily have to be a full-time employee.

They may work with multiple companies.

It's more cost-effective and sometimes more time-effective, especially for small and midsize companies that don't need someone full time.

Even larger companies may need a specialized executive for ten hours a week to plan strategy, implement it and monitor things.

The main difference between a consultant and a fractional executive is that a consultant often comes on for a specific project with a particular outcome.

A fractional executive is doing the work, overseeing the strategy and taking responsibility for deliverables and outcomes.

They're simply not there forty hours a week.

Anna Covert [00:29:12]:

That's interesting.

Tamara Laine [00:29:12]:

It was fun.

We were calling ourselves fractional executives before the term became as popular as it is now.

Everyone was constantly asking us, "What is a fractional executive?"

We thought, let's have a podcast.

Let's teach business growth from a fractional executive perspective and bring fractional leaders onto the show.

We started doing it, and it's been really fun.

We've had great conversations, and the show has continued growing.

Anna Covert [00:30:17]:

It's similar to what happens with my advertising agency.

Clients sometimes treat us almost like an internal marketing department.

They ask, "Can you just be our marketing director?"

Anything else you're working on that you want to talk about?

Tamara Laine [00:30:35]:

MPWR is basically my whole life these days, which I'm thrilled about.

We're launching with our pilot customers.

We're in due diligence with several additional customers.

We're developing the rest of our agents.

We have several now, but we want to build the full suite.

We're hard at work on that.

I'm very passionate about it, and it's starting to grow.

I'm thrilled I had the chance to come on and chat with you.

And I'll reiterate that trust in AI is incredibly important.

Anna Covert [00:31:10]:

It is.

Things are moving so quickly.

Another thing that worries me is how people are being targeted with data, especially based on their financial position.

There can be predatory targeting on the other end of this.

This sounds like what I call one of the "good bots."

What are you ultimately going to look at to determine whether MPWR is successful?

Do you have internal goals?

Tamara Laine [00:31:59]:

Our KPIs include increasing acquisition and decreasing risk, including decreasing write-offs, while also removing manual work.

We're targeting roughly an 80% reduction in manual work so underwriting can happen faster.

Those are the KPIs we're monitoring against.

Anna Covert [00:32:24]:

Excellent.

How can people get ahold of you if they want to learn more?

Tamara Laine [00:32:30]:

Find me on LinkedIn.

I'm a little behind on my LinkedIn DMs right now, but come find me and chat with me.

I'd love to hear from you.

Anna Covert [00:32:37]:

We'll put all of the links below.

And to all of my listeners, thank you so much for joining me.

If you have not done so already, please subscribe to this channel.

We just hit more than 220,000 subscribers on YouTube, and it's because of you and your aloha.

If you love this content, share it with your friends and family so I can continue bringing great guests like Tamara here to share their wisdom with us.

I cannot wait to see you next week in the pixels.

Aloha.


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Comments Off on Episode 129 – Tamara Laine

Episode 128 – Philippa Gamse

By |2026-08-29T01:04:23+00:00August 26th, 2026|Author, Get Your Geek On, Podcasts|

What Your Website Data Isn’t Telling You with Philippa Gamse

Featuring Philippa Gamse, Founder of Websites That Win International and author of Website Wealth

Your website is collecting data every day.

Visitors. Sessions. Clicks. Engagement. Traffic sources. Conversions. Scroll depth. Search behavior.

But having more data doesn’t necessarily mean you understand what’s happening.

In fact, the sheer volume of information available to business owners can sometimes make it harder to identify what actually matters.

In this episode of The Covert Code Podcast, Anna Covert sits down with website analytics expert Philippa Gamse, founder of Websites That Win International and author of Website Wealth: A Business Leader’s Guide to Driving Real Value from Your Analytics.

Their conversation explores what website data can tell us, what it can’t tell us, and how business leaders can use analytics to make smarter decisions without becoming professional data analysts.

Your Website Analytics Don’t Have to Be Perfect

One of the first issues Anna and Philippa discuss is something that frustrates business owners and marketers constantly:

Why don’t all of the numbers match?

Your Google Ads account may report one number.

GA4 may show another.

Your CRM may report something different again.

Consent requirements, cookies, attribution models, tracking methodologies, browsers, and other technical factors can all contribute to differences between platforms.

Philippa’s advice is simple: stop expecting every platform to produce identical numbers.

Website analytics shouldn’t necessarily be treated as an auditable financial record.

Your CRM or backend sales system should ultimately tell you what actually became a lead or sale.

Analytics has another important job.

It helps you identify patterns, trends, behavior, and opportunities.

GA4 Changed the Conversation From Bounces to Engagement

Anna and Philippa also discuss the transition from Universal Analytics to GA4.

While GA4 is more complicated, its event-driven model creates opportunities to understand specific actions visitors take on a website.

Instead of simply asking who left, businesses can focus more deeply on engagement.

What did visitors do?

What did they watch?

What did they click?

How far did they progress?

Did they interact with the content that should move them closer to becoming a customer?

The problem is that many businesses install analytics and simply accept the default configuration.

But the most valuable analytics strategy begins with a different question:

What do we actually need to know?

Sometimes Your Advertising Isn’t the Problem

One of Philippa’s stories illustrates why businesses need to examine the entire customer journey rather than analyzing marketing channels in isolation.

A B2B company was spending heavily on Google Ads to generate free trials.

The ads generated clicks.

But almost nobody signed up.

The immediate assumption was that the advertising specialist was doing something wrong.

When Philippa examined the website analytics, however, she found that virtually no marketing channel was producing signups.

The advertising wasn’t the real problem.

The form was.

The company was asking people interested in a free trial to complete a massive form containing far more information than they were ready to provide.

Visitors were interested enough to click.

Then the website created unnecessary friction.

It’s an important distinction for anyone investing in digital marketing: traffic generation and website conversion cannot be evaluated independently.

Your Website Is Part of the Sales Process

A website’s job isn’t simply to exist.

It should help move someone from awareness toward action.

That means understanding what information a visitor needs at each stage of the journey without demanding too much too soon.

Anna shares one solution her team often uses: a multi-step form.

The initial step can collect the basic information necessary to establish a lead.

Additional questions can follow afterward.

This gives the business an opportunity to continue the conversation without forcing a new prospect to complete an intimidating questionnaire before they’re ready.

Marketing doesn’t have to collect every piece of information sales will eventually need.

Sometimes the website simply needs to create the next logical step.

Microsoft Clarity Can Show You What Visitors Are Actually Doing

One of Philippa’s favorite tools for understanding website behavior is Microsoft Clarity.

Tools like Clarity provide heatmaps and session recordings that can help businesses see how real visitors interact with their pages.

One particularly interesting metric is the dead click.

A dead click happens when someone clicks something they expect to be interactive, but nothing happens.

Maybe visitors repeatedly click an image expecting more information.

Maybe a heading looks like a link.

Maybe an interface element simply isn’t behaving the way visitors expect.

Those clicks are incredibly valuable signals.

They’re essentially visitors saying:

I’m interested. Tell me more.

If nothing happens, you’ve created friction at the exact moment someone is demonstrating intent.

The Content at the Bottom of Your Page May Barely Be Seen

Another behavior Philippa consistently sees is surprisingly simple:

People often don’t scroll very far.

Modern websites can contain extremely long pages, particularly when viewed on mobile devices.

If your most important message or primary call to action only appears near the bottom, a significant percentage of visitors may never see it.

This is where scroll-depth analytics and heatmaps become particularly useful.

Instead of assuming visitors consume an entire page, you can examine how far they actually travel.

Anna points out that this reinforces the importance of concise, scannable website content.

Visitors frequently want to skim first and dive deeper when something captures their attention.

Short sections, meaningful headlines, bolded information, visual hierarchy, and clear navigation make that easier.

Every Page Should Give Visitors Somewhere to Go

Philippa also emphasizes the importance of calls to action.

Ask yourself:

What is the purpose of this page?

What should someone do after reading it?

Download something?

Request information?

Read another resource?

Schedule a consultation?

View a product?

Watch a video?

If the answer is nothing, there may be a strategic problem with the page.

And one call to action isn’t always enough.

If someone never reaches the bottom of a long page, a CTA located exclusively at the bottom doesn’t exist from that visitor’s perspective.

Anna recommends persistent navigation and clear CTA buttons that remain easy to find throughout the experience.

Don’t Say “Read More” When You Can Tell People What They’ll Get

The wording of a call to action matters too.

Generic language such as “Read More” gives visitors very little information.

A stronger CTA tells someone what they’re going to receive.

Download the specifications.

Get the guide.

Register for the webinar.

Schedule a consultation.

View the case study.

The right CTA depends on the visitor’s mindset, their intent, and what the business is offering at that particular moment.

This same principle applies to advertising.

If an advertisement creates a specific expectation, the landing page should immediately continue that conversation.

Your Website Data Can Reveal New Business Opportunities

Analytics isn’t only useful for identifying what’s broken.

It can also reveal opportunities.

Philippa explains that website behavior can show businesses what customers are looking for, including topics, services, products, and information the company may not currently emphasize.

Internal site searches can be particularly revealing.

What are visitors searching for?

Where are they spending time?

What content generates deeper engagement?

Sometimes those patterns reveal demand for a new product, service, content strategy, or target market.

The opportunity may already be sitting inside the data.

Stop Measuring Everything

One of the biggest analytics mistakes is assuming more metrics automatically produce more insight.

They don’t.

Philippa shares the example of a marketing professional whose management wanted reports containing approximately 30 metrics every week.

The problem isn’t collecting the information.

The problem is deciding what anyone is supposed to do with it.

If you’re measuring dozens of things simultaneously, you can quickly lose sight of the business questions you’re trying to answer.

Instead, begin with the question.

What are we trying to understand today?

Which marketing channels are actually moving customers forward?

Which content is generating meaningful engagement?

Where are prospects dropping out of the journey?

Which pages contribute to conversion?

Then identify the metrics necessary to answer those questions.

Don’t Forget the Middle of the Customer Journey

Businesses naturally pay attention to acquisition.

How much traffic did we generate?

What did we spend?

Where did the visitors come from?

They also pay attention to conversion.

How many leads did we receive?

How many sales did we close?

How much revenue did we generate?

But Philippa points out that companies frequently overlook everything happening between those two points.

That’s the consideration stage.

Customers often need to establish trust before they’re ready to convert.

They want evidence that you understand their problem, have relevant expertise, can deliver what you promise, and are worth contacting.

Your website content plays a major role in answering those questions.

Segmentation Makes Your Data More Useful

Not every website visitor is the same.

A new visitor may behave differently from someone who has visited five times.

A customer may behave differently from a prospect.

Visitors from different markets may have entirely different needs.

That’s why Philippa recommends segmenting analytics whenever it makes strategic sense.

Instead of treating every visitor as part of one enormous audience, examine meaningful groups separately.

Location.

Customer status.

New versus returning visitors.

Traffic source.

Behavior.

Those distinctions can reveal patterns that disappear when everything is averaged together.

Stop Obsessing Over Someone Else’s Benchmark

What’s a good conversion rate?

What’s the average for my industry?

How much traffic should my website receive?

Philippa isn’t a fan of these questions without context.

Comparing your business to an industry average can be misleading because you don’t know everything happening behind another company’s numbers.

Their product is different.

Their audience may be different.

Their advertising strategy may be different.

Their sales process may be different.

Their pricing may be different.

A more useful benchmark is often your own performance.

Establish where you are now.

Set meaningful goals.

Make deliberate changes.

Then measure whether you’re improving.

Always Put the Numbers Into Context

Data without context can lead to terrible decisions.

Philippa gives students a simple scenario:

Imagine you’re managing an e-commerce website and discover that sales are down 40% compared with the previous month.

That sounds disastrous.

Unless the current month is January and the previous month was December.

Suddenly the number has context.

The same principle applies throughout business.

Weather events, seasonality, competitors, economic conditions, promotions, consumer behavior, product changes, and countless other factors can affect performance.

The number tells you what happened.

Understanding the environment helps explain why.

Be Careful Before Replacing a Website That’s Already Working

One of the most expensive website mistakes can happen during a redesign.

A company decides it wants something newer and better.

That may be completely justified.

But a redesign can also accidentally remove things that are quietly producing value.

A page may rank extremely well in search.

A piece of content may consistently attract qualified visitors.

A particular path through the site may contribute to conversions.

Remove it without understanding its value, and the new website may look better while performing worse.

Before making major website changes, examine the existing data.

Understand what’s already working.

Preserve the valuable pieces.

Then improve from there.

Website Analytics Should Lead to Action

The larger message behind Philippa’s approach is straightforward.

Analytics isn’t valuable because you have it.

Analytics becomes valuable when it changes what you do.

Find the dead click and make the image clickable.

Discover that nobody reaches the bottom of the page and move the CTA higher.

Find the form everyone abandons and simplify it.

Identify a piece of content people repeatedly search for and make it easier to find.

Discover an audience segment behaving differently and build an experience for them.

Find an old page driving valuable organic traffic and protect it during your redesign.

The goal isn’t more dashboards.

It’s better decisions.

About Philippa Gamse

Philippa Gamse is the founder of Websites That Win International, a digital marketing and analytics strategist, speaker, educator, and author.

Her latest book, Website Wealth: A Business Leader’s Guide to Driving Real Value from Your Analytics, helps business leaders understand how to use website data to make better strategic decisions without getting buried in technical analytics terminology.

You can also connect with Philippa on LinkedIn.

Watch the Full Episode

Watch the full conversation with Philippa Gamse on The Covert Code Podcast and subscribe for more conversations about digital marketing, business, technology, entrepreneurship, and the rapidly changing digital world.

What Your Website Data Isn't Telling You

The Covert Code Podcast

Host: Anna Covert

Guest: Philippa Gamse

Founder: Websites That Win International

Book: Website Wealth: A Business Leader's Guide to Driving Real Value from Your Analytics


Anna Covert [00:00:03]:

Aloha. My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is something that is near and dear to my heart: What's your website data not telling you?

My very special guest is Philippa Gamse, founder of Websites That Win International. She's also a sought-after public speaker, professor, lecturer, and advisory committee member for digital marketing courses and curriculum being taught and created in London, as well as even Qatar.

She's also the author of the bestselling book Website Wealth: A Business Leader's Guide to Driving Real Value from Your Analytics.

Thank you so much for being here today.

Philippa Gamse [00:00:50]:

Hi, Anna. Good morning.

Anna Covert [00:00:51]:

Good morning.

So let's just jump in and get our geek on, as I like to tell my listeners when I get really nerdy, which I love to do.

Let's start off with—you are just a very fascinating woman. Tell us a little bit about the CliffsNotes version of your story, and then we'll jump into what we're seeing today online.

Philippa Gamse [00:01:12]:

Well, okay, the CliffsNotes.

I've been working in websites for a long time and analytics for a long time.

In fact, when analytics first came out and started being really available, I got quite excited. This was early on, before anybody really knew how powerful analytics were.

I just looked at it and said, this is going to be huge, because now we can tell all sorts of stuff that we didn't know before in the real world.

You can sell newspapers, you can sell books, you can get TV ratings, but that doesn't give you anything like the kind of granular information that we can get about website visitors.

How many people opened a newspaper doesn't tell you which pages they went to. It doesn't tell you how much of the page they actually looked at.

Now we can really get into not only whether they saw the page with your video on it, but how much of that video they actually watched. How much of this podcast are they going to listen to?

I think quite early on I saw the potential in that.

It's also fun because this is a very male-oriented sector. There are far fewer women in this area than there are men.

I find it fun to be a woman trying to make a mark because I think we do process and talk a little differently some of the time. I don't want to get all gender-specific, but I think that's an interesting angle as well.

Anna Covert [00:02:45]:

Yeah, I agree with you.

I think the way that we perceive data, or more like the customer journey, is deeper than a man might be just looking at, okay, what is the conversion? They're not necessarily looking at the full story at the same level as I think women do.

That must have been such the Wild West back then.

I got into digital advertising later. I went to Bentley University in Boston, graduated early in 2005, and was here in Hawaii working in traditional advertising.

Back then, even websites were just like a digital brochure. They didn't really do much more.

Then I started building my own WordPress websites around 2010 and started my advertising agency. It's been self-taught from there.

I'm really interested in your insights on GA4.

Even today when I take control of a client website, it's interesting to see that some don't have GA4 set up correctly. Some didn't realize Universal Analytics had been retired.

There's a lot of information that we lost in this transfer.

What are your overall thoughts on the switch?

Philippa Gamse [00:04:22]:

I don't think I should get into a political discussion on why they did it.

It is a different model. It's what they call event-driven rather than session-driven.

It's very much based on specific actions that users take as opposed to simply how many users came.

That's important because that's what we want to know: What do the users actually do?

Where do they engage?

What do they like?

What do they watch?

What do they look for?

And, obviously, at the end of the day, do they convert to do whatever it is that the website is trying to get them to do?

It is a more complicated model than Universal Analytics, without question.

I know a lot of people hate it.

It was also attempting to deal with some of the privacy issues around Universal Analytics.

Unfortunately, even now I've come across people collecting personally identifiable information in their analytics because of what they're doing, which contravenes the terms and conditions of using analytics as well as general privacy rules.

It is more complicated.

I like it in the sense that it's much more powerful if you know how to program it correctly so that you can really dig into what it is specifically that you're trying to do.

I think it is really strong, especially in conjunction with something like Google Tag Manager.

Anna Covert [00:05:55]:

Yes.

Philippa Gamse [00:06:04]:

Google Tag Manager is really powerful because it allows an analyst to play with really digging into what's going on with the site without having to impact the site in any way.

You don't want me messing with your site code for sure. I'm not a designer. I know very little about design.

That's actually a really important feature.

But I think people who take GA4 out of the box—and we should say GA4 because a lot of sites use it, but of course there are other alternatives, some of which are also really good—don't always customize it.

A lot of people don't think: What do I want to do? What do I want to know? What are my key questions today?

Using it out of the box is not necessarily as useful as it could be.

Anna Covert [00:06:55]:

Yeah, I agree with all that.

I think one of the big distinctions that's easy for people to understand is that before, with Universal, we were talking about bounce rate.

Bounce rate was one of those primary metrics, and what that really meant was: Who didn't stay?

Then we had to do all this math to figure out who did stay.

The whole model has shifted toward focusing on engagement.

What are the people who did stay doing?

That's more valuable inherently.

People care about whether their website is working. Is it making us money? How do we make more?

From there, what tools or website sources and referral traffic are contributing to this customer's experience in a positive way?

One of my problems with GA4—and it's been a problem with Universal as well and all analytics—is that the data just doesn't always match.

Especially with Google Analytics and Google Ads.

You'd think they're from the same partner, along with Google Tag Manager, so this is the Google family.

You look inside your Google Ads account and you're paying for clicks, especially if you're blocking bots, and I feel you should see a pretty reasonable correlation between the number of clicks and the sessions and users.

But I've found recently that's not always the case.

Are you doing any Google Ads as well?

Philippa Gamse [00:08:35]:

No, I don't.

To be really clear, I don't do implementation of campaigns. I'm strictly a strategist.

I use analytics data to create strategy, but I don't actually run any of this stuff myself.

I used to, but honestly, I get bored very quickly doing that, so I'm really not the right person to be doing it.

But what I will say is, yes, this has been a problem forever.

Business owners tear their hair out over, "This number doesn't match this number. This number doesn't match this number."

It's the same if you look at ecommerce systems, the shopping cart piece, and compare what's in the CRM with what's in Google Analytics, for example.

They won't necessarily match.

That's partly because of consent issues, cookie issues, sometimes because they measure sessions or collect data at different times, and attribution issues.

How do you assign credit for a click to a particular marketing channel?

Anna Covert [00:10:07]:

Absolutely.

Philippa Gamse [00:10:07]:

Can I just go back and say one more thing?

I can't tell you the number of people who come to me tearing their hair out because the numbers don't match.

I always say, for heaven's sake, stop.

Stop this immediately.

Don't pay your people thousands of dollars to figure this out because they probably never will match, and it shouldn't matter.

Your analytics should not be your tool of record.

Your CRM system is your tool of record. Your backend, where you record your actual sales, obviously has to be 100% accurate.

What you're using analytics for, because we have Safari blocking cookies and consent issues and all of these other factors, is patterns.

Patterns of behavior. Trends.

You're absolutely not looking for auditable numbers, and you shouldn't be.

It's really important to understand that, otherwise you will go nuts.

Anna Covert [00:11:06]:

Yeah.

I will say, though, if you're spending money—listeners out there, if you're giving money to a digital partner and they're telling you they're spending your money, and you're buying clicks and impressions—you must see a correlation of paid traffic to sales.

If you don't see that, yes, the numbers may not match exactly, but no matter what you're spending online, you should have a result.

If you don't, push pause and don't be fearful to say, we've got to stop right away and decide what is going on here.

Is it the partner? It could be.

Is it the website? Most often it is your website.

Your mobile experience might be poor. It might be too slow.

I've seen buttons that someone needs to buy covered so they can't see it and can't buy.

Philippa Gamse [00:11:54]:

Can I tell you a story?

Anna Covert [00:11:55]:

Yes, I love your stories.

Philippa Gamse [00:12:02]:

I had a client last year in the supply chain and logistics business.

They were trying to get people to sign up for a free trial of their mobile app that managed fleet management and so on.

They were very upset with their ads guy.

They had an in-house guy running Google Ads and honestly were starting to feel like he didn't know what he was doing.

The ads were reporting tons of click-through to the signup page for this app trial, and yet there were almost no signups.

They said, "Has he got the tracking right? Are the tracking and conversions set up correctly?"

Yes.

I tested it. It was all fine.

They said, "We can't possibly have this number of clicks for no business. It doesn't make any sense."

But they hadn't looked at the actual website analytics.

This is a problem I see very frequently: siloing.

People who do one part don't look at how that correlates with any of the other parts.

That's not helpful.

When I looked at the analytics, there were almost no signups for this free trial from any marketing channel.

Then you ask why.

When we looked at the form, the form was controlled by the sales department, not the marketing people.

The form was massively long and asked just about every question you could possibly think of about that person's business.

It was absolutely clear that someone might say, "I'm interested in a free trial, but I don't want to tell you all this stuff right now. I'm not ready to marry you."

I said to them, the ads are not the problem and your ad guy is not the problem. He's doing a fine job.

This form is the problem.

Then their salespeople came back and said, "We're not willing to let you change that form, which we control, because we need all that information."

The obvious answer is you get that information after somebody signs up.

When they sign up, you have a salesperson go back and say, "How are you enjoying the trial? And by the way, can I find out a bit more?"

I think it's a really interesting tale because the sales department didn't care that the ads people were spending in the five figures on ads every month for absolutely no reason because the form killed it.

Anna Covert [00:14:43]:

So the poor guy was getting the blame for what's going wrong, which was completely unfair.

One thing I like to do for some of my clients is a two-part form.

The first is like a little squeeze form. Hardly any information: their name, phone number, email.

Then we get them into the CRM and it goes to the next part of the form.

If they don't answer those other questions, at least we can start a marketing campaign to them.

So we can say, okay, salespeople, we're going to keep your questions, but we're going to put them into a two-step form.

There are these silos, especially today.

Then you have to think about privacy too.

Should you even be collecting the questions that you're asking?

Thinking about what the intent is, what the salesperson's job is, and what marketing's job is.

The website's job is to accelerate the process of awareness to action.

They're aware, they're considering you, they have intent, and they're submitting.

Then it's up to the rest of the team to take over from there and make them happy.

What other analytics solutions do you enjoy looking at besides Google?

Philippa Gamse [00:16:51]:

My other absolute favorite tool is Microsoft Clarity.

I use it for screen recordings and heatmaps.

One of the things that I love in Clarity is that you can record dead clicks, which I find really interesting.

A dead click is when somebody clicks on something on the page that they think should be a link, and it isn't.

Maybe you've got a heading and then a picture and they're constantly clicking on the picture because they think that's how they're going to get to more details.

If you consistently see dead clicks on a given element, it's a great hint to make that a click.

Why not?

When somebody is clicking, they're saying, "Hey, tell me more. I'm interested."

Right there, you've got their attention.

If they click on something and it doesn't work, you're asking them to figure out how to do that differently.

If they're not motivated to do that, they won't. They'll go away.

You've lost that interest point.

I love looking at things like dead clicks.

Anna Covert [00:18:08]:

That's really interesting.

I've used Clarity before for other clients, but I hadn't thought about that in a while.

That's something I'm going to go look at next.

It's also another thing that's pretty safe from bots. Bots don't click on things just erratically, at least right now.

Philippa Gamse [00:18:38]:

Another thing that I have discovered consistently using Clarity is that people don't scroll down the page.

So many web pages now are quite long, especially if you're looking at them on a mobile.

One of the things Clarity will give you is a heatmap.

You can do this in analytics too. It will give you scroll depth.

If you're going to do this in Google Analytics, you want to do some customization because the default in analytics is to tell you when somebody has gone 90% of the page.

If it's a long page, 90% is a heck of a long way.

You can set up other measurements along the way—tell me when they've done 25%, 50%, etc.

But in Clarity you can actually see it graphically.

The number of people who don't go beyond the fold, the first screen they can see, is frighteningly huge.

Which means anything further down the page, if less than 50% of your audience is seeing it, you've already lost 50% of your possibility to convert that traffic.

The heatmap will also show where attention is, where people are moving their mouse, and where their eyes are going.

The scrolling is a big one that I see again and again.

Anna Covert [00:20:21]:

That's fascinating.

One thing I see clients getting stuck on is too much copy.

No one wants to read it.

Depending on what you're selling—I do a lot of work in solar—we see people want to skim first and then dive.

Make it pretty. Make it easy to consume.

With the attention problem we're having now, are you seeing that pattern with scrolling? If there's too much copy, do people just stop reading?

Philippa Gamse [00:20:55]:

It's helpful to bold things.

If there are certain words you want to stand out and you want people to get, bold them. Make them stand out.

Shorter copy in short chunks can be very helpful.

But one of the other things I've been preaching for ages is multiple calls to action.

What's the point of a webpage?

It's to get somebody to do something.

As the business owner, as the owner of the site, you should understand your individual pages as well as the overall site.

On any page, I should be able to figure out: What am I supposed to do here?

What am I supposed to do as a result of seeing this page?

The answer probably isn't nothing.

Anna Covert [00:21:48]:

No. If there's nothing, then you go back to the drawing board.

Philippa Gamse [00:21:53]:

So many sites don't think about this.

You have to drive people to action because people won't stop and figure out what you actually want them to do.

Maybe there's a call to action at the top of the page and people are scrolling down, so it's disappeared.

Or maybe the call to action is at the bottom of the page and they don't get that far, so they don't see it.

How do you solve that?

Have a call to action at every point.

There's nothing wrong with having multiple different types of calls to action.

You can test whether they respond better to this wording or that wording.

At every point where somebody might be saying, "Tell me more," have something there for them to do that takes them toward what you're looking for.

Anna Covert [00:22:51]:

One easy solution for people listening is to make sure you have a sticky menu, meaning when people scroll, your menu follows them no matter what.

Have a very clear call-to-action button in the top-right corner: Join Now, Get Started, something like that.

That way they're not going to get lost and have to go back up to the top.

Are you looking for correlations based on the type of website traffic source and what their call to action is?

Is there deeper data where you're saying, who is this person, why did they come, and are they more attracted to one call to action over another based on other metrics?

Philippa Gamse [00:23:47]:

I think that's worth looking at because each site is different.

I mainly work with B2B sites.

Download specifications, for example.

A call to action should be really clear about what you're going to get.

"Read More" is not particularly exciting.

Anna Covert [00:24:06]:

Or download a white paper, sign up for a seminar or an event.

What are some of your go-tos that get high engagement?

Philippa Gamse [00:24:19]:

I think it honestly depends on the individual website.

It's got to be specific to what you know about the mindset and intent of the visitor at that point and what you're offering, and putting those together.

It relates back to ads because ads essentially are trying to do the same thing.

If you have an ad that sets up a certain mindset or expectation in the visitor, and they get to the site and it's not there or they can't immediately find it, you're dead.

Anna Covert [00:24:51]:

Absolutely.

One of the fastest ways you can save on your AdWords budget is making sure your location settings are actually targeting the people you intend to target.

Google can include people who are physically located in an area or people who have shown interest in that location.

That's not always what you want.

Here in Hawaii, for example, people have a lot of interest in Hawaii because they want to vacation here.

But they could actually be in Texas looking for a plumber.

If a Hawaii plumber ad appears because they've shown interest in Hawaii, they click it and immediately realize it's irrelevant.

That's a perfect example of making sure the ad and landing-page experience correlate.

You wrote a book about creating real value.

Why did you decide to write this book?

Philippa Gamse [00:26:19]:

Actually, firstly, this is my second book.

My first book was part of a series called 42 Rules.

It was about ten or twelve years ago and was called 42 Rules for a Web Presence That Wins.

I'm very proud to say it was endorsed by Guy Kawasaki.

Anna Covert [00:26:34]:

Wow. He's from Hawaii.

Philippa Gamse [00:26:39]:

And now he lives in Santa Cruz, where I live.

But this book that came out last year isn't about analytics in the sense of being a how-to.

It's not full of technical terms.

It's written for business leaders who own a website or a business that has a website.

It's designed to help them understand the power of analytics.

A lot of people don't.

As you said earlier, you can open up a page of analytics and it looks completely overwhelming if you don't know what you're looking at.

It's graphs and charts and tons and tons of numbers, and you're supposed to figure out what that means for your website.

It's impossible.

A lot of people then default to the dashboard kind of thing: Tell me we've got more of this than we did last week, whatever this is.

Vanity metrics.

They go, "Great," because they really don't want to get to grips with it because it's overwhelming.

You can't blame them because it is.

But if you're not looking at it, or getting somebody to look at it in an intelligent way, then you're missing out on really important insights.

Not only about where you're potentially wasting money, like the advertising story we told earlier.

Two seconds of me looking at the analytics page for that form told me there was a problem.

There were basically zero conversions for any kind of marketing channel.

That made no sense.

There are also a lot of stories in the book about working with clients and looking at the data and finding insights into new products and services we can develop based on what we see visitors looking for.

Where do they go?

What do they put into the search engine on the site?

It can reveal new business opportunities for products, services, or target markets, but only if you think about it.

The book is really about how to think about your business strategy in conjunction with your analytics so that you can customize your analytics to tell you what you need to know.

Another huge default mistake is to measure everything you can possibly measure.

I once taught a class and had the guy who was in charge of pay-per-click marketing for a very large technology company we've all heard of.

His bosses wanted a report of 30 different metrics every week.

I said, this is crazy. Why?

What are you going to do with that?

There's no point in measuring anything unless you're going to do something about it.

You can't do something about 30 different things at once because you don't know, if you change one thing, what impact that's going to have on everything else.

What are the key questions that you're trying to answer today?

I once taught with Avinash Kaushik, who wrote Web Analytics 2.0 and is very well known in the analytics world.

He created something called the Digital Marketing Measurement Model.

What that says is you should focus on no more than about nine metrics at any one time, and those metrics should be spread across the customer journey.

Most people focus on acquisition: How do we get traffic and what are we paying for it?

Then conversion: What have we sold and how much have we made?

But what they forget is the bit in the middle, the behavior or consideration stage.

Most people don't come to a website, take one look at it, and buy something.

You need to prove who you are.

You need to prove that you can do what you say you do, that you're trustworthy, that you're competent, that you have expertise in whatever you're offering.

That's where your content comes in.

Within each area of the customer journey, think about: What's my key question today?

Maybe it's which of my videos are creating more interest and progress toward conversion.

Maybe it's which of my marketing channels are most successful.

Think about one or two questions in each of those buckets and then what metric you need to measure that.

Because then you can take action.

The other thing you need to do is segment, which most people don't do, especially at the smaller end of the market.

If you have a business where visitors from Hawaii are going to behave differently than visitors from Texas, separate them out when you're looking at what they're doing.

Don't just treat every visit to your website as one huge mess.

They have different things going on and different characteristics.

You can create customer segments according to things like location or behavior.

This is somebody who's bought something before. This is somebody who hasn't. This is somebody who's new to the website. This is somebody who's been several times.

That creates a much more granular understanding of those behaviors.

Get really intelligent about what you need to know and what the most useful type of information is.

That will help you understand what's going on and what you can try differently.

My book is essentially about that.

It's very carefully edited, so there are no technical terms in it. There's no "how to use the analytics."

It's all about business strategy and how you can learn more about your business strategy from your website, with lots and lots of stories.

Anna Covert [00:33:14]:

Nice. Sounds great. I can't wait to read it.

Another thing you just said sparked some light bulbs in my brain.

I think a lot of business owners get stuck trying to compare too much.

They'll say we're going to do this for 30 days and then this for 30 days.

In my opinion, that doesn't work either because too many things in the environment around you are also changing.

If you want to test something, you have to do it at the same time, do it long enough, and understand there's a world happening around you.

Philippa Gamse [00:34:09]:

One of my favorite things to do when I was teaching—I taught at three different business schools—was give MBA students scenarios and ask what they would do.

One of my favorite scenarios was: You're the ecommerce manager for a big ecommerce site.

You've just got your monthly sales figures in and your sales are 40% down on last month.

Your boss wants to see you in an hour.

What are you going to do?

There are a number of different answers.

But one of the answers is, "I think I'll put my feet up, have a cup of coffee and read the paper."

Why?

Because this month is January.

Last month was December.

We had a load of Christmas sales.

Our sales were almost 40% down in January.

Anna Covert [00:35:06]:

Exactly.

Or COVID. Things happen. Hurricanes.

I remember doing a breakout PR event and right when I was supposed to get all this press, a hurricane came on the mainland.

All kinds of things can happen at any time.

Even year over year, people's trends are different and what they're looking for changes.

Philippa Gamse [00:36:03]:

That's right.

Other external factors—a new competitor could have entered the market with a really hot product.

There are all sorts of things that can happen.

It's important that you put all the math into context.

Anna Covert [00:36:14]:

Another thing that was really popular for a while was localization.

You talked about segmentation.

For a while, big companies with big budgets were able to create custom experiences where if I looked at the site from Hawaii, I saw Hawaii imagery and variable content based on my location.

That was popular, and then it started to lose interest on my side.

It's hard to maintain, expensive, and can create a lot of dead pages.

I don't see it as often as I used to, but I think there's a big opportunity.

We're doing it in email marketing and the CRM because we have more capability.

What are your thoughts as a website strategist on localization?

Philippa Gamse [00:37:13]:

Again, I don't do design, but I think it depends on your strategy and your goals.

If it's important to you, maybe you have pages for different locations with different projects and so on.

Most of my work is B2B.

One of the rules in my first book was: One size does not fit all.

You can't just say everybody does it this way, so I'm going to do it this way.

It's not the most helpful thing you can do.

You need to figure out your own situation.

Along with that, there's another thing that I hate, which is when people say, "What's the benchmark in my industry for this? What's the average conversion rate?"

I don't know.

How much does it cost to build a house?

You're going to say, well, what kind?

It's the same thing.

It depends on all sorts of things.

You don't know, if another company has a higher conversion rate than you do, what they're doing in terms of marketing.

If another company has a lower conversion rate, what does that mean?

I think benchmarking should be done against yourself.

You set some goals. You start out with a benchmark of where you're starting from, and then you measure your progress.

Anna Covert [00:38:51]:

I think that's absolutely right.

Because of what I specialize in, the number one thing people always want to know is what it's going to cost. How much do I spend?

We have to let the numbers tell us that.

There are different ways to do a budget, but what I like is objective-task.

What are we trying to achieve?

What are those actual goals?

Then what do we know about our own business?

It's shocking that people don't know their own business.

Of all the leads and opportunities that came from your website, what percentage did you sit with?

What percentage of those did you win?

If you didn't, why?

What was the reason?

What is the average length of time from first inquiry to these different touchpoints?

Then we have a conversion rate along the funnel and we reverse engineer it.

What is your goal and what is it worth to you?

If a new customer is worth $2,500, what's their lifetime value?

What are we willing to spend on it?

Then we have to see if we're in the reality of the universe here.

If you want this goal but only have $20,000, let's readjust our expectations, increase our conversion rate, or improve the sales process.

There has to be something based on your own numbers and your own benchmark of what you want to achieve and what's possible.

What have I not asked you that you think right now is critical for people listening to know about their website and what the data isn't telling them?

Philippa Gamse [00:40:41]:

I think we've covered a lot of ground.

Anna Covert [00:40:45]:

Good.

What's next for you?

Are you still teaching?

Are you going to write another book?

How do people want to engage with you?

Philippa Gamse [00:40:51]:

I'm interested in starting a new service, which I'm currently working on, that's an independent perspective on a business's website.

What I'm trying to help leaders understand is whether they're basing decisions on the right metrics and whether the metrics they're looking at justify the decision they're making.

Sometimes I'll have a CEO come to me and say, "My agency wants me to renew the ad budget. They say that the ads are going great. Is that true? Should I continue to pay at the same rate?"

My goal is not to criticize agencies.

There are good agencies and bad agencies.

There are definitely agencies that try to pull the wool over people's eyes and say, "Look at all these clicks you got. We're doing great."

But it's more like: Let's get a fresh pair of eyes.

Let me see whether I can find any anomalies or things you might not be looking at.

Are you missing opportunities to create more revenue?

Another example is, "We've been told we need to completely replace our website. We need to completely rework it."

When you do that, that's great because you're creating an opportunity to make it look and work a lot better.

But you're also creating the danger that you're going to lose something that's working really well.

I've seen things like having a page that's doing really well in search, and then you take that page away.

Google doesn't know immediately that you've taken it away, so it still comes up in search for maybe a while, and then people get a page not found.

That's not helpful.

It's about taking a look at the big picture.

Let's get beyond all the silos and different departments and have an independent look at your entire site in the context of your business strategy.

Make sure everything is as it should be and that you're making good decisions.

Anna Covert [00:43:21]:

Absolutely.

I think that's really important.

Especially when a new site is going to happen, making sure Search Console is considered because Google has changed the rules several times.

It's outrageous when people just put up a new website and don't think about the great rankings they already had.

People have worked ten or twenty years on a site.

We could just do a facelift of that same site.

There is a lot we can do now with WordPress and other technologies to make it fresh and new without jeopardizing the work you've been committed to for a long period of time.

People need to have those third-party views because things change quickly.

You don't want to make a decision that could be very, very expensive without thinking through all of the consequences.

Your website is not small.

This has been really wonderful.

How can people get ahold of you?

Philippa Gamse [00:44:34]:

As you mentioned earlier, my site is Websites That Win.

I mostly like using LinkedIn. LinkedIn is my favorite tool.

I think I'm the only person on the entire planet with this name because it's a very unusual name.

If you look me up on LinkedIn, you'll find me.

Please do connect, and if you have questions, let me know.

My book is called Website Wealth.

It's available at all good book places and on Kindle and so on.

Anna Covert [00:45:03]:

Great.

Thanks so much for being here.

I'm going to include all of this information on the channel.

For everyone who's listening, thank you so much for joining me once again.

If you have not yet subscribed to the channel, please do so.

We've just reached 220,000 subscribers, and it is incredible. It's because of you and your aloha.

Please continue to share this content with people who you think will find value in it.

I cannot wait to see you next week in the pixels.

I'll see you then.

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Comments Off on Episode 128 – Philippa Gamse

Episode 127 – Dr. Simin Cai

By |2026-08-22T04:45:15+00:00August 20th, 2026|Author, Get Your Geek On, Podcasts|

How to Be Happier While Achieving More: Making Sense of Life with Dr. Simin Cai

Featuring Dr. Simin Cai, Founder & CEO of Go!Foton, and author of Making Sense of Life

Most of us spend a significant portion of our lives pursuing two things: happiness and achievement.

We want meaningful careers, financial security, successful relationships, memorable experiences, personal growth, and the satisfaction of knowing we’re moving forward.

But somewhere along the way, many people begin treating happiness and achievement as competing priorities.

We tell ourselves we’ll be happy after we reach the next milestone.

After the promotion.

After the business succeeds.

After we make enough money.

After we finally become the person we think we’re supposed to be.

Dr. Simin Cai believes there may be another way.

In this episode of The Covert Code Podcast, Anna Covert sits down with the physicist, entrepreneur, Founder & CEO of Go!Foton, and author of Making Sense of Life: Develop Your Own Theory for Happiness and Achievement.

Their conversation explores a fascinating idea: What if we approached our lives more like scientists?

Can You Crack the Code to Your Own Life?

Dr. Cai’s career began with an interest in understanding the laws governing nature.

As a physicist, his job was to look beyond individual events and search for the underlying principles that explained why things happened.

That curiosity followed him into entrepreneurship and business leadership.

Eventually, it led him toward a much larger question.

Could the same type of thinking help us understand life?

Rather than attempting to discover one universal formula that tells everyone how to live, Dr. Cai began developing what he calls a personal theory.

It is essentially a working framework for understanding yourself, your experiences, what you value, what makes you happy, and what you want to accomplish.

Like a scientific theory, it isn’t supposed to remain frozen forever.

It evolves as new experiences give you better information.

The World and Your World Are Not the Same Thing

One of the most memorable ideas from the conversation comes from something Dr. Cai told his son when he turned thirteen.

First came the bad news:

You are not the center of the world.

The world existed before you, continues around you, and will continue without you.

Then came the good news:

You are the center of your world.

Everything you understand begins with your perspective.

Dr. Cai separates those ideas into two layers.

There is reality—the world as it actually exists.

Then there is your experience of that reality.

Your personal world is shaped by two major factors:

  • What you know about something
  • How you feel or judge what you know

The second component is influenced heavily by your values.

Two people can experience the same event and walk away with completely different interpretations because they possess different information, histories, desires, and value systems.

Understanding that difference can become an important part of self-awareness.

Life Is a Collection of Experiences

Dr. Cai describes life, within the scope of his book, as the collection of experiences between birth and death.

Some experiences are enjoyable.

Others aren’t.

The experiences we enjoy contribute to what we call happiness.

The things we don’t enjoy often create the motivation to change something.

When we successfully convert an idea about how something could be better into reality, that becomes an achievement.

In that sense, happiness and achievement aren’t necessarily opposites.

They are different parts of the same process.

We experience the world, determine what we prefer, make choices, change circumstances, and then learn from what happens next.

You Don’t Have to Sacrifice Happiness to Achieve More

One of the most useful ideas in this episode is also one of the simplest:

Believe that you can be happier while achieving more.

Success does not automatically require sacrificing everything that makes life enjoyable.

Likewise, prioritizing happiness does not require abandoning ambition.

The challenge is understanding what success and happiness actually mean to you instead of automatically accepting someone else’s definitions.

This connects closely with other conversations on The Covert Code Podcast about personal growth, purpose, and human experience.

In our conversation with Gideon Enok about embracing the pilgrim spirit, for example, slowing down and examining what truly matters became an important part of personal transformation.

The paths may look different, but the underlying question is similar:

Are you consciously living your life or simply moving through it?

Ask Yourself Why You Do What You Do

If someone wants to begin developing a personal theory of life, Dr. Cai recommends something surprisingly simple:

Start questioning.

Why do you do what you do?

Why do you want what you want?

Why are certain experiences satisfying while others continually frustrate you?

Those questions create distance between automatic behavior and conscious choice.

You begin moving from reacting to your life toward observing it.

And observation is the beginning of learning.

What Does Your Free Time Reveal About You?

Another practical exercise from the episode is to examine what you naturally do when nobody else controls your time.

Ask yourself:

When I genuinely have free time, where do I choose to spend it?

Your first answer may be sleep.

That could simply mean you’re exhausted.

So ask again.

What’s next?

And after that?

Look beyond the answers you think you’re supposed to give.

Observe your actual behavior.

You might discover that you naturally spend your free time reading, exercising, shopping, cooking, traveling, helping people, creating things, talking with friends, learning, building a business, watching movies, gardening, playing music, or simply sitting quietly.

There is information in those choices.

You May Not Know What Actually Makes You Happy

Most adults assume they know what makes them happy.

Dr. Cai challenges that assumption.

What we say makes us happy and what our actual behavior demonstrates may not always be the same.

That’s why he recommends observation rather than judgment.

Instead of immediately creating a list of socially acceptable answers, look at your behavior when you have freedom of choice.

Where do your attention, energy, and time naturally go?

Those patterns may reveal preferences you haven’t consciously acknowledged.

There Is No Approved Version of Happiness

Anna raises an interesting challenge during the conversation.

What about temporary sources of happiness?

Shopping, entertainment, social media, travel, or other experiences can create an immediate boost, but does that count as genuine happiness?

Dr. Cai’s answer is deliberately nonjudgmental.

If shopping genuinely makes you happy and you can responsibly support that lifestyle, enjoy it.

Eventually, you may become bored with it.

If that happens, learn something from the boredom and explore what comes next.

The purpose of his framework is not to prescribe which forms of happiness are morally or philosophically superior.

It is to help you understand your own preferences more accurately.

Your personal theory is supposed to be personal.

Experience Is an Experiment

This is where Dr. Cai’s background in physics becomes especially interesting.

Scientific discovery follows a cycle.

You conduct an experiment.

You observe what happens.

You search for patterns or structural relationships.

You develop a theory.

Then you apply that theory to future experiments to determine whether it continues to hold.

Dr. Cai believes we can use a similar approach in everyday life.

Think.

Digest.

Review.

Look for cause and effect.

Develop a working theory from the experience.

Then apply what you learned the next time a similar situation occurs.

A Theory Is Useful Because It Helps You Predict

The real value of a theory isn’t simply explaining what already happened.

It helps predict what may happen next.

If you’ve repeatedly discovered that a particular action produces a particular outcome, you can begin adjusting your future behavior.

Anna offers the simple example of arriving at work on time.

If leaving home at a certain time repeatedly results in being late because traffic is unpredictable, you eventually create a new rule:

Leave earlier.

That simple rule becomes part of your personal theory.

It helps you produce a better outcome more efficiently the next time.

But Every Theory Has Conditions

Then circumstances change.

The pandemic provided an obvious example.

A rule about commuting to the office became irrelevant when the office suddenly moved into your home.

This is why Dr. Cai emphasizes understanding the boundaries and conditions under which a personal theory works.

A belief that served you at age twenty may not serve you at forty.

A business strategy that worked five years ago may no longer make sense.

A relationship pattern that once protected you may now be limiting you.

The goal isn’t to become attached to your theories.

It’s to continually refine them.

The Road Is a Powerful Analogy for Life

Anna’s traffic example leads Dr. Cai to another observation.

Driving works because thousands of people share the same roads while simultaneously existing inside their own personal perspectives.

Every driver has assumptions about how every other driver should behave.

Problems occur when those assumptions collide.

An accident can become an unpleasant experience, but it can also provide new information.

Perhaps another driver behaves differently than you expected.

If you incorporate that information into your understanding, you may drive more defensively the next time.

Your personal theory improves.

Use Constraints to Make Better Decisions

The conversation also explores how scientific problem-solving can help with difficult decisions.

In physics, problems often begin by identifying constraints.

What conditions must be satisfied?

What variables can change?

What cannot change?

The same approach can simplify complicated personal or business problems.

Suppose you’re evaluating an employee, contractor, career opportunity, investment, or relationship.

Write down the constraints.

  • What outcome is required?
  • What level of quality is acceptable?
  • What resources are available?
  • What alternatives exist?
  • What does this decision cost?
  • What values cannot be compromised?

Once the constraints become visible, the problem often becomes easier to evaluate.

Hindsight Is for Improvement, Not Regret

One of Dr. Cai’s most useful comments comes while discussing decision-making.

You make the best decision you can based on the constraints and information available at that moment.

Later, with hindsight, you may discover a better option.

That’s normal.

The purpose of hindsight should be continuous improvement—not endless regret.

The new information becomes part of the theory you apply the next time.

That turns mistakes into data.

New Experiences Keep the Theory Growing

During the conversation, Anna tells Dr. Cai about lucid dreaming, something he hadn’t previously explored.

His reaction perfectly illustrates the larger philosophy behind the book.

The conversation itself became a new experience.

That experience exposed him to a new idea.

He could now choose whether to investigate it, experiment with it, enjoy it, or simply move on.

Life continually gives us new information.

The question is whether we’re paying attention.

Human Experience Becomes More Valuable in an AI World

Dr. Cai’s perspective also feels particularly relevant as technology accelerates.

His company, Go!Foton operates at the intersection of optics, photonics, communications infrastructure, and technology.

Yet his book turns attention inward toward something technology cannot define for us: what makes an individual life meaningful.

That tension appears frequently on The Covert Code.

As we discussed in our conversation about why human experiences may thrive in an AI world, increasingly powerful technology may make genuine self-awareness, human connection, experience, and purpose even more valuable.

AI can give us information.

It can’t decide what we should value.

That remains our responsibility.

Success Is Not a Destination

Perhaps the most important message in this episode is that neither happiness nor achievement needs to represent a permanent final state.

We’re continually experiencing, learning, testing, adapting, and evolving.

Something that makes you happy today may eventually stop doing so.

A goal that once felt enormously meaningful may eventually become irrelevant.

That’s not necessarily failure.

It may simply mean you’ve collected enough new experiences to update your theory.

Develop Your Own Theory of Life

There are endless books, podcasts, influencers, experts, and philosophies telling us how to be happy.

Dr. Cai proposes something different.

Don’t simply borrow someone else’s theory.

Develop your own.

Pay attention to your experiences.

Question your assumptions.

Observe where your time naturally goes.

Understand your values.

Learn from mistakes.

Identify patterns.

Test your conclusions.

And remain willing to change your theory when life gives you better information.

Perhaps making sense of life isn’t about finally discovering all the answers.

Perhaps it’s about becoming much better at asking the questions.

Watch the Full Episode

Watch the full conversation with Dr. Simin Cai on The Covert Code Podcast.

Learn more about Dr. Cai at DrSiminCai.com.

Explore Making Sense of Life: Develop Your Own Theory for Happiness and Achievement.

Connect with Dr. Cai on LinkedIn.

Learn more about Go!Foton and its work in optics, photonics, and communications technology.

Cracking the Code to Happiness, Purpose and Achievement

The Covert Code Podcast

Host: Anna Covert

Guest: Dr. Simin Cai

Book: Making Sense of Life: Develop Your Own Theory for Happiness and Achievement


Anna Covert [00:00:03]:

Aloha. My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is Cracking the Code to Happiness, Purpose and Achievement.

My very special guest is Dr. Simin Cai, author of Making Sense of Life and Founder, President & CEO of global technology company Go!Foton.

With more than 30 years of experience as an innovator, entrepreneur, and business leader, Dr. Cai combines scientific thinking with real-world experience to explore what it really means to make the most out of life.

Today, we'll be uncovering some of those topics so you can begin developing your own theory for navigating life, redefining what success looks like for you, and creating greater happiness and a more rewarding overall life.

Thank you so much for being here, Dr. Cai.

Dr. Simin Cai [00:00:56]:

Thank you very much, Anna.

First of all, I'd like to thank you very much for having me here this evening. I very much appreciate the opportunity to make this evening an interesting part of my life journey.

Anna Covert [00:01:10]:

Thank you so much.

To kick us off, we'd like to hear the CliffsNotes version of the Dr. Cai story.

You have such an interesting background. How did you get from where you were to where you are now?

Dr. Simin Cai [00:01:23]:

It all starts with my urge to understand the laws behind things.

First, of course, it was understanding the laws behind nature. Then it became the laws behind business, and eventually it led to understanding the laws behind life.

Using your words, I basically try to crack the code.

Sometimes I call it a map. In my book, I also call it a personal theory.

That's how I started: trying to figure out the natural laws behind nature and then trying to understand the laws behind anything I deal with.

Anna Covert [00:02:14]:

Tell us a little bit about your technology company.

What does Go!Foton do?

Dr. Simin Cai [00:02:19]:

We work in fiber-optic communications.

We mainly apply photonics and optics technology to applications in the communications market and sometimes other markets, such as life sciences.

If you use fiber-to-the-home services from a carrier, you may ultimately be using products we supply to support that service.

Anna Covert [00:02:51]:

I'm sure a lot of people have had an opportunity to use technology that you've helped support because broadband is certainly the name of the game now.

It's funny because here in Hawaii we really only have a couple of major options, and it feels like every couple of years you switch back and forth depending on the rate.

Dr. Simin Cai [00:03:19]:

We're proud to help carriers deliver broadband services to consumers and enterprises.

Anna Covert [00:03:31]:

It's incredibly important.

We all remember the days of dial-up and how far away that seems now.

Today we expect everything to happen immediately.

There's actually an interesting comparison there with meaning and happiness because everything is becoming faster. Everyone is rushing to get everything done.

Tell me about the book.

Did you always plan on writing one?

What was your mission, and why did you decide to write this book now?

Dr. Simin Cai [00:04:14]:

As I mentioned earlier, I've always tried to crack the code behind anything I deal with.

To a certain level, I felt I had achieved that for my own personal journey.

I have benefited from the code I cracked, or the personal theory I developed in my own understanding.

I thought sharing that with others and helping them benefit from it would be rewarding.

That's why I wrote the book.

Anna Covert [00:05:03]:

How long have you been working on it?

Dr. Simin Cai [00:05:16]:

I've been working on it for the last two years.

I didn't have a strict deadline, so whenever I had time, because I still have a day job, I worked on it.

Eventually, I finished it.

I also received a lot of help from my publishing team, including help finding a very good writer to work with me.

That helped smooth the process.

Anna Covert [00:06:26]:

When you developed this personal theory, had you been working on the concept for a long time, or did you feel like now was an especially important time to share the message?

Dr. Simin Cai [00:06:39]:

It wasn't really about marketing timing.

It was more about where I was in my personal journey.

I had gone through this process and developed what I would call my personal framework of philosophy.

But quite frankly, with my professional credentials, I didn't think many people would necessarily read a book from me purely about philosophy.

This is also about getting what you want and achieving what you want to achieve.

It's about connecting the dots between where I am and where I want to be.

I thought applying my philosophical framework directly to life would resonate with a broader audience.

Everybody has a life.

Anna Covert [00:07:47]:

Absolutely.

Let's dive into the framework.

What can people expect when they read the book?

Dr. Simin Cai [00:07:57]:

First of all, I learned from physics.

I'll give you a summary of the framework.

When my son turned thirteen, I told him something.

First, the bad news: You are not the center of the world.

The whole world doesn't depend on you. If you're not there, the whole world is still the whole world, perhaps a little different, but still the world.

Then I told him the good news: You are the center of your world.

For you to understand the whole world, you start from where you are. The whole world surrounds you, so you are the center of your own world.

For anything and everything that comes my way, I try to understand it from those two perspectives.

For the world, it is what it is. Sometimes we call that reality.

Your world consists of two things: what you know about it and how you like it.

What you know about something relates to truth and science.

How you like it relates to your judgment.

For any judgment you make, you have a set of criteria. Sometimes we call that a value system.

The framework is about those two worlds—the world and your world.

Within your world, you try to separate what you know about something from how you feel about it.

Life is all about experience.

My scope is from birth to the end. I'm not covering the afterlife.

Anna Covert [00:10:32]:

That's your next book. That can be the sequel.

Dr. Simin Cai [00:10:35]:

I would still have to explore that because I don't have experience with it yet.

Within this period of life, it's all about experience.

Among all experiences, you can separate the ones you like from the ones you don't like.

The ones you like contribute to happiness.

The ones you don't like are things you may want to change.

When you make that change—when you take something in your world and successfully convert it into part of reality—that's achievement.

That's why the book talks about both happiness and achievement.

Anna Covert [00:11:40]:

That's interesting.

I really resonate with what you're saying.

Over the last year or two, I've become deeply invested in meditation and the transformation of the self—how we can transform or transmute things in our lives.

That transformation begins on the inside, and then the outside world can appear very different because you're looking at it through new eyes.

It becomes about what you prefer versus what you don't prefer and realizing that every experience can give you something to learn from.

Dr. Simin Cai [00:12:22]:

Exactly.

You're achieving more by converting your ideas into reality while also becoming happier.

That's the purpose of the book.

If you pay attention and understand the code behind it—using your word—or develop your personal theory or map, you can become happier while achieving more.

Or you can achieve more while becoming happier, with greater efficiency and effectiveness.

Anna Covert [00:13:02]:

That's excellent because we've all seen people who are successful but aren't happy.

Then what's the point?

If life is about experience and you've done all of this work to achieve success but you don't enjoy the experience, something is missing.

What is something listeners could do right now to begin course-correcting their map toward happiness?

Dr. Simin Cai [00:13:40]:

First, believe that you can be happier while achieving more.

Those goals don't have to conflict with one another.

There are many things you can do.

One is simply questioning.

Ask why you do what you do.

Another is trying to figure out what makes you happy.

Sometimes people say, “I don't know what makes me happy. Sometimes this makes me happy and sometimes that does.”

My suggestion is to look at what you dedicate your free time to.

Someone like me may say sleep first because I work a lot and don't get enough sleep.

But then ask: What's next?

Keep asking a little further.

Eventually, you begin to discover what makes you happy.

Anna Covert [00:15:20]:

That's important because there are so many dopamine highs, especially through social media.

There are these small experiences of micro-happiness.

You might laugh or feel better momentarily, but then it goes away.

Other people look for happiness through shopping or through finding another person or possession that they believe will make them happy.

You're talking about something more internal.

Dr. Simin Cai [00:15:53]:

Quite frankly, I'm not against the happiness someone experiences through shopping.

If that makes you happy, do it.

Some people can continue doing it.

Others may realize they need to support that lifestyle and then need to figure out how they're going to do that.

For other people, they may do it for a while and eventually become bored.

Then move on to something new.

I'm not judging what type of happiness is acceptable.

Go for whatever you genuinely feel makes you happy.

That's why my framework is personal and individually based.

You decide what makes you happy instead of letting other people decide for you.

Anna Covert [00:18:21]:

By the time someone becomes an adult, don't most people already know what makes them happy?

Is there a difference between what someone thinks they like and this deeper form of happiness?

Dr. Simin Cai [00:18:32]:

You may be surprised that what people tell you makes them happy isn't always exactly what makes them happy.

You have to explore it.

Don't simply tell yourself you already know.

There can be a difference between what something really is and what you think about it.

You can improve your understanding of what makes you happy by observing more closely.

That's why I suggest looking at where you dedicate your free time.

You may not consciously think, “I'm happy doing this.”

But unconsciously, you choose to do more of it when you have the freedom to allocate your time.

Anna Covert [00:20:13]:

What's on your personal happiness list beyond sleeping?

What did you discover while writing the book that really gets you going?

Dr. Simin Cai [00:20:24]:

Now you're getting personal.

I don't mind sharing.

Writing this book makes me happy.

Sharing something I've developed for myself and benefited from with other people makes me happy.

If our conversation gives you a new perspective or insight that helps make your life a little happier or helps you achieve more, I feel very good about that.

Anna Covert [00:21:12]:

That makes me happy too—meeting new people and getting an opportunity to share their wisdom.

I also like to sleep.

I practice lucid dreaming.

Have you ever explored lucid dreaming?

Dr. Simin Cai [00:21:31]:

I haven't explored that.

Anna Covert [00:21:34]:

It's really fun if you like sleeping.

A year ago, I could barely remember whether I'd dreamed.

After practicing and setting an intention, I can now remember three, four, or five dreams in a night.

I write them down.

Now I'm practicing lucid dreaming, where you become aware you're dreaming and can potentially take control of the experience.

Dr. Simin Cai [00:22:06]:

This itself is a new experience for me this evening.

I can explore it more.

This is what I mean when I say life is about experience.

By talking with you, I now have a new perspective and new insight that can open a door to another experience.

That's what the book is about.

Anna Covert [00:22:42]:

What's next for you with the book?

Are you planning to speak more and share this knowledge?

Dr. Simin Cai [00:22:55]:

I still have a day job, and that comes with a lot of responsibility.

I'm still passionate about that work, so fulfilling those responsibilities remains my first priority.

This is what I dedicate my free time to.

When I have free time, I like to write down what I've developed and what I've been thinking about and share it with others.

Then I'll let the experience lead me wherever it leads me.

I'm excited to be surprised by what it brings.

Anna Covert [00:23:53]:

Let's switch to achievement because you're a very successful person.

Are there daily practices or strategies from the book that listeners can apply to achieve more?

Dr. Simin Cai [00:24:18]:

Again, I go back to physics.

In physics, you conduct experiments and then try to identify structural invariance behind those experiments.

You elevate that understanding into a theory and then apply the theory back to future experiments to determine whether it holds.

The purpose of a theory is that once it holds, it gives you the capability to predict.

Learning from that, what I can share is simply to think.

Try to understand what happened.

Look for cause-and-effect logic.

Then the next time you encounter a similar experience, you can apply what you've learned to approach it more effectively.

Think, digest, and review.

Then go back to practice.

It's a cycle from experience or experiment, to personal theory, and then back to a new experience.

The purpose is improving your effectiveness and efficiency in getting what you want or becoming who you want to be.

Anna Covert [00:26:23]:

As a practical example, maybe someone has a job and realizes it's very important to arrive on time.

If they repeatedly leave home at a certain time and unexpected traffic makes them late, the experiment teaches them to leave earlier so they don't upset their boss.

Dr. Simin Cai [00:26:47]:

That's a very good example.

You learn from the experience.

If you're late once and it creates a problem, you learn that you probably shouldn't be late every day.

You should be on time.

That becomes a theory you've developed.

But the book also talks about boundaries, scope, and conditions.

The theory works under a particular set of conditions.

Then COVID happens and the condition changes.

Your theory has to be adjusted accordingly.

Driving is also a very interesting analogy.

When everyone shares the road, every person is living within his or her own world.

Every driver expects other drivers to behave according to what they believe should happen.

When those assumptions conflict, accidents can happen.

But through the accident, if you learn, you understand that other people may think differently.

You develop a better theory.

The next time you're on the road, you may be less likely to get into the same accident.

Anna Covert [00:29:09]:

That makes sense.

I actually had to terminate a contractor today who I really like personally and who had worked with my company for a long time.

I returned from a trip and reviewed some of his work.

He hadn't done several things he was supposed to do.

I put him on notice, and this wasn't the first time we'd dealt with the issue.

When I reviewed the work again, he still hadn't done the things he'd agreed to do.

It's always disappointing when people are given another opportunity and still don't choose to change.

Could that sometimes tell someone something about their own happiness?

If you're repeatedly given a clear path and still don't follow it, perhaps the job itself isn't something you want.

Dr. Simin Cai [00:30:08]:

That's right.

Try to understand the constraints.

Again, that's something I learned from physics.

When you solve problems, you start with constraints.

In your contractor example, what needs to be done?

What level of quality is required?

How many alternatives do you have?

How important is that contractor to you?

If you can itemize those constraints in your mind or write them down, you can come up with the best solution you can find at that moment.

And don't be surprised if hindsight later reveals a better solution.

That's for continuous improvement.

It's not for regret.

Anna Covert [00:31:16]:

I love that.

I release a lot of control and don't micromanage people.

We're adults, this is the job, and if there are problems, perhaps we need more training.

But if someone says they know how to do something, has demonstrated they can do it, and then repeatedly chooses not to do it, that's disappointing because other people are depending on them.

It also gives the individual information.

Maybe the work isn't something they genuinely enjoy, even if they like the money or need the job.

Dr. Simin Cai [00:32:06]:

That's right.

Anna Covert [00:32:14]:

This has been great.

How can people find your book?

Dr. Simin Cai [00:32:20]:

They can go to Amazon and search for the book's name or my name, and they'll be able to find it.

Thank you very much for asking.

Anna Covert [00:32:36]:

We're going to put a link to Making Sense of Life right below this episode.

Dr. Simin Cai is also on LinkedIn, and you can visit his personal website at DrSiminCai.com.

Thank you so much for being here today.

And to all of my listeners, thank you for joining me.

If you haven't done so yet, please subscribe to this channel.

We've just reached more than 220,000 subscribers, and I'm overwhelmed and incredibly proud of the community we've built.

It's because of you and your aloha.

Please share this content with people you think will get value from it.

I'll see you next week in the pixels.

Aloha.


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Comments Off on Episode 127 – Dr. Simin Cai

Episode 126 – Peter Banko

By |2026-08-20T18:38:30+00:00August 12th, 2026|Author, Get Your Geek On, Podcasts|

The Necessary Goodbye: How Great Leaders Make Tough Decisions

Featuring Peter D. Banko, President & CEO of Baystate Health and author of The Necessary Goodbye

Leadership is often defined by the people we hire, develop, inspire, and promote.

But some of the most consequential moments in leadership involve a very different responsibility: knowing when a working relationship needs to end.

In this episode of The Covert Code Podcast, Anna Covert sits down with Peter D. Banko, President & CEO of Baystate Health and author of The Necessary Goodbye: How Great Leaders Fire with Clarity, Confidence, and Compassion.

The conversation explores what happens before, during, and after one of leadership’s hardest decisions—and why firing someone should rarely begin with the termination itself.

The Leadership Skill Nobody Teaches

Peter’s book was approximately ten years in the making.

An executive coach first encouraged him to write about the subject after recognizing that Peter had spent much of his career building teams, leading organizational turnarounds, developing executives, and occasionally having to let people go.

The problem was obvious: leaders are expected to manage employee performance, yet most receive very little education about how to handle the moment when performance does not improve.

The first time Peter had to terminate someone, he remembers the experience as awkward.

That is hardly unusual.

New managers receive training on budgets, strategy, operations, compliance, and sometimes communication. Far fewer are taught how to sit across from another human being and tell them their employment is ending.

Peter wrote The Necessary Goodbye to help fill that gap.

The Goal Is to Avoid the Necessary Goodbye Whenever Possible

Despite the title, Peter emphasizes that much of the book is actually about preventing termination.

Good leadership begins long before an employee fails.

It begins with hiring the right person, clearly defining expectations, developing people, maintaining regular communication, providing feedback, and identifying problems early enough to correct them.

Leaders sometimes become desperate to fill a vacant position and begin evaluating candidates by whether they can simply perform the basic functions of the job.

Peter argues that leaders should slow down.

Hiring the wrong person quickly can create far more disruption than waiting for the right person.

Clear Is Kind

One idea that runs throughout the conversation is the importance of clarity.

Ambiguous feedback may feel compassionate in the moment because the leader avoids an uncomfortable conversation.

But unclear expectations leave the employee without a realistic opportunity to improve.

A leader who continually softens the message may eventually terminate someone who never fully understood that their job was at risk.

That is unfair to everyone involved.

The employee deserves to know where they stand.

The team deserves a leader willing to address performance problems.

Customers deserve an organization capable of delivering on its promises.

And the leader has a responsibility to protect the organization as a whole.

When Is Enough Enough?

One of the hardest leadership questions is deciding when continued coaching becomes avoidance.

Peter recommends asking several questions:

  • Have I clearly explained what needs to change?
  • Have I given the employee a reasonable opportunity to improve?
  • Have I provided the support or resources they need?
  • Is another leader seeing something I am missing?
  • Would outside support help?
  • Can this situation realistically be fixed?

Sometimes the answer is yes.

Sometimes a person needs coaching, development, mentorship, a different role, or a different environment.

But leaders eventually have to distinguish optimism from reality.

Keeping someone indefinitely in a role that does not fit them can be unhealthy for both the organization and the individual.

Leaving Can Create an Unexpected Opportunity

Peter shares the story of one termination he later regretted.

The employee was not removed for poor performance. The organization was downsizing, and a strong leader’s role was eliminated.

That individual later went on to oversee approximately twenty hospitals around the country.

Peter’s perspective changed.

Had that person remained in the original organization, they might never have found the opportunity that ultimately accelerated their career.

A necessary goodbye does not always represent failure.

Sometimes a role, organization, or relationship has simply reached its natural conclusion.

Why Leaders Wait Too Long

When Anna asks what today’s leaders are getting wrong, Peter’s answer is straightforward: many wait too long to make difficult decisions.

Leaders often confuse caring with being nice.

Those are not the same thing.

A leader can care deeply about an employee while still acknowledging that a situation is not working.

In fact, allowing a problem to deteriorate because the conversation feels uncomfortable may ultimately be less compassionate.

Leadership requires enough courage to make decisions before circumstances force them.

Annual Performance Reviews Are Not Enough

One of Peter’s most practical recommendations is to stop relying on the annual review as the primary vehicle for performance conversations.

A once-a-year conversation cannot create the level of communication required to build high-performing teams.

Peter meets with his senior leadership team frequently and recommends regular individual conversations as well.

His organization also uses a formal succession-planning process that evaluates leaders across both performance and potential.

Regular communication accomplishes something critical: when performance reaches the point where employment may need to end, the conversation should not come as a surprise.

Workplace Archetypes Can Help Leaders Understand Behavior

One of the more unusual elements of The Necessary Goodbye is Peter’s use of twelve Jungian archetypes to help leaders think about workplace behavior.

Rather than reducing employees to simple personality labels, the archetypes provide another lens for understanding how someone’s strengths can become liabilities when taken too far.

Peter discusses examples including the Lover, Caregiver, and Jester.

A caregiver may be naturally supportive, compassionate, and attentive to colleagues. Those qualities can strengthen a team.

But taken into what psychologists sometimes call the shadow side of the archetype, caregiving can become overinvolvement or behavior that interferes with healthy boundaries.

The Jester brings humor and lightness to the workplace, which can be enormously valuable.

But humor can also cross lines and become disruptive.

The point is not that one archetype is good and another is bad.

Diverse perspectives make teams stronger. Leaders need to recognize when someone’s natural strengths are enabling the team—and when those same tendencies have begun working against it.

How to Conduct a Termination Conversation

Peter recommends approaching the conversation directly.

Do not begin with ten minutes of small talk about someone’s weekend when both people know a serious conversation is about to happen.

Explain the decision clearly.

Connect it to previous conversations and expectations.

Keep the message concise.

Then allow HR to handle the administrative details involving severance, benefits, documentation, and transition logistics.

Peter also cautions against delegating the actual termination entirely to HR.

If someone reports to you, leadership requires you to have that conversation.

Why HR Should Still Be in the Room

Although the manager should deliver the message, Peter typically has an HR leader present.

There are practical reasons.

A termination conversation may suddenly reveal information the manager did not know.

Peter recalls one employee whose spouse was eight months pregnant and another whose immigration status meant immediate termination could jeopardize a visa.

Having HR involved allowed the organization to think more broadly and make accommodations that respected the individuals while still accomplishing the necessary organizational change.

Compassion does not require reversing every difficult decision.

It may mean thinking more carefully about how the decision is implemented.

Everyone Watches How You Treat the People Who Leave

One of the strongest insights from the conversation is that termination does not only affect the departing employee.

Everyone who remains is watching.

They notice whether the employee was treated respectfully.

They notice whether the company provided reasonable severance.

They notice whether leaders were present or disappeared.

They notice whether management protected the departing employee’s dignity or immediately began criticizing them.

Peter argues that organizations should sometimes pay even more attention to how people leave than how they arrive.

Those moments communicate the company’s real values more clearly than any statement printed on a wall.

Transparency Does Not Mean Sharing Everything

After an employee leaves, remaining team members naturally want to know why.

Leaders need to communicate while still protecting confidentiality.

If someone was removed for performance, behavioral, or personal reasons, the details generally should not become office conversation.

Peter recommends treating departing employees the way any leader would want to be treated themselves.

That means acknowledging the change, giving teams space to process it, explaining what can appropriately be shared, and refusing to turn a former employee’s private circumstances into gossip.

Leadership Presence Matters More After Layoffs

Layoffs and restructurings create a different challenge.

People who remain may be grieving former colleagues while simultaneously inheriting additional work.

This is the moment when leadership presence becomes especially important.

Leaders need to remain visible and available.

Teams need time to ask questions, process what happened, and understand what comes next.

A reduction in workforce cannot simply be announced and forgotten.

Trust is rebuilt through what leaders do afterward.

AI Is Changing Healthcare—and Hiring

The episode also explores the growing influence of artificial intelligence.

Peter explains that Baystate Health is implementing technology with embedded AI and has already introduced tools such as ambient listening for physicians.

One physician told him the technology had essentially eliminated the after-hours documentation often referred to as “pajama time” while allowing the physician to see additional patients.

AI is also accelerating research. According to one academic researcher Peter references, work that previously took a month can now sometimes be accomplished in a day.

But AI is producing challenges elsewhere.

Automated resume-screening systems can reject qualified applicants before a human ever sees them.

Peter has personally encountered situations where someone appeared clearly qualified after reviewing their resume even though an automated screening process had previously eliminated them.

The lesson is similar to many conversations on The Covert Code Podcast: technology can create enormous efficiency, but leaders still need human judgment.

Connection Still Matters

Despite advances in remote work and AI, Peter believes people continue to seek genuine human connection.

When he asked employees what they wanted from the culture at Baystate Health, connection emerged as a major theme.

Employees wanted to be trusted partners.

They wanted to feel part of something larger than themselves.

Some jobs perform extremely well remotely, and Peter notes that certain teams have become both happier and more productive from home.

But other roles benefit from proximity.

Sometimes the fastest way to solve a problem is still to walk down the hall and talk to another person.

The Necessary Goodbye Is Really About Better Leadership

The title may focus on firing, but the deeper message of Peter’s book is about building stronger teams.

Hire carefully.

Set expectations clearly.

Develop people.

Talk frequently.

Address problems while they can still be corrected.

Get help when you need it.

And when a relationship can no longer work, have enough clarity and courage to acknowledge it.

Great leadership is not measured only by how enthusiastically we welcome people onto the team.

Sometimes it is measured by how thoughtfully we help them leave.

Watch the Full Episode

Watch the full conversation with Peter D. Banko on The Covert Code Podcast.

Learn more about Peter at PeterDBanko.com, connect with him on LinkedIn, and learn more about The Necessary Goodbye from Forbes Books.

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The Necessary Goodbye: How Great Leaders Make Tough Decisions

The Covert Code Podcast

Host: Anna Covert

Guest: Peter D. Banko

Book: The Necessary Goodbye: How Great Leaders Fire with Clarity, Confidence, and Compassion


Anna Covert [00:00:03]:

Aloha. My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is The Necessary Goodbye: How Great Leaders Make Tough Decisions.

My very special guest is Peter D. Banko, President & CEO of Baystate Health and Forbes Books author of the bestselling title The Necessary Goodbye: How Great Leaders Fire with Clarity, Confidence, and Compassion.

With more than 40 years of healthcare leadership experience, Peter has helped transform organizations by putting people and purpose first.

Today, we'll be discussing how leaders can address underperformance, make tough decisions with compassion, and maintain trust through corporate change.

Thanks so much for being here today, Peter.

Peter D. Banko [00:00:50]:

Thank you, Anna. Thanks for having me.

Anna Covert [00:00:51]:

To begin, we like to have a little CliffsNotes version of the Peter story.

Tell us how you got to where you are right now and what you think is important for our listeners to know about you. Then we'll jump in.

Peter D. Banko [00:01:02]:

I started working in a hospital while I was in high school.

I originally volunteered to meet girls because I attended an all-boys Catholic high school.

I didn't get any dates out of it, but I did have a CEO—a nun named Sister Marie—take me under her wing.

In the middle of my college career, when I was debating what I wanted to do, she brought me into her office and told me she thought I had a knack for healthcare leadership.

I charted a course from there, and the rest is history.

Anna Covert [00:01:41]:

Tell us a little bit about Baystate Health.

Peter D. Banko [00:01:43]:

Baystate Health is an academic safety-net health system in Western Massachusetts.

As I like to say, if we don't do it, nobody else does.

We have an academic medical center and train medical students through UMass Chan School of Medicine.

We have more than 400 residents, interns, and fellows.

We're also the safety-net provider. Approximately 70 percent of our patients are Medicare or Medicaid.

We've been around for approximately 140 years and began with a doctor working from a house just north of our current main campus.

We have five hospitals and are preparing to add another facility.

We have more than 1,300 physicians and providers, most of whom are employed through our academic practice.

We also own our own health plan, so we're truly integrated.

We're able to insure people and then care for most, if not all, of their healthcare needs.

Anna Covert [00:02:45]:

It's somewhat similar to the Kaiser Permanente model, where the doctors and the system are connected.

I did some consulting work for them and was always impressed with the level of coordination.

In traditional healthcare, patients are often referred from one place to another without the same level of integration.

In an integrated system, physicians can work more collaboratively around the patient's care.

Peter D. Banko [00:03:07]:

Most of our patients aren't in our health plan, but the physicians, health plan, hospitals, and care settings are integrated.

That allows us to focus on doing the right things for quality, safety, patient experience, and hopefully affordability as well.

Anna Covert [00:03:23]:

Are you seeing major changes with AI?

I think healthcare may be one of the biggest opportunities for AI, especially when it comes to efficiency.

Peter D. Banko [00:03:30]:

We're in the process of converting to an Oracle platform with significant embedded AI.

We've already implemented some AI tools, such as ambient listening.

Primary care physicians spend a lot of what they call "pajama time," documenting charts at night from home.

One of my primary care physicians told me he doesn't have pajama time anymore because of the technology.

He's also able to see two additional patients.

He joked that the problem is that his wife is also a physician and isn't using the tools yet, so now she's sitting there documenting while he's sitting there watching her.

AI has the opportunity to complement healthcare.

I don't believe it's going to replace doctors, nurses, or the work they do, but it can help them become more effective.

Anna Covert [00:04:23]:

I think another opportunity is cross-referencing information globally.

A physician can do the best possible job, but every individual is ultimately limited by the knowledge they personally have access to.

Peter D. Banko [00:04:39]:

One of our academic researchers told me research that used to take him a month to complete can now sometimes be completed in a day.

Anna Covert [00:04:48]:

That's amazing, and it will probably become even faster.

Tell me the story behind your book.

People always ask me why I decided to write a book, so I'll throw that question back to you.

Had you been working on it for a long time?

Peter D. Banko [00:05:04]:

It was about ten years in the making.

My executive coach told me that I'd spent much of my career doing turnarounds, building strong teams, and occasionally having to let people go.

He suggested that I write a book about it because firing isn't really taught in school, and it isn't taught very well on the job.

I remember the first time I had to let someone go. It was rather awkward.

We're also seeing significant problems with workforce engagement.

Engagement in the American workforce is at a very low point.

There are large numbers of employees who describe themselves as disengaged, and a significant number of workers describe their work experience as miserable.

Because of that, many people are either watching for or actively seeking new jobs.

It felt like there was an opportunity to help leaders think more carefully about how they hire, develop, and ultimately make decisions about people.

People frequently leave their boss or their team rather than the organization itself.

When toxicity exists on a team or with a boss, employees often leave those individuals rather than the company.

Anna Covert [00:06:25]:

Those statistics are shocking.

Peter D. Banko [00:06:29]:

As a leader, it's devastating to think that such a significant percentage of the people working for organizations may want to leave.

Anna Covert [00:06:45]:

It also makes me think about the movement toward flexible work, remote work, and unlimited PTO.

When I first heard about unlimited PTO, I couldn't understand the concept.

Younger employees increasingly expect flexibility, and COVID probably accelerated that shift.

Are these workplace attitudes appearing across age groups, or are there clusters of different behavior?

Peter D. Banko [00:07:20]:

I do a video blog for our approximately 13,000 people.

I once asked them what they wanted from Baystate Health.

From a culture perspective, the most common response was connection.

People wanted to be trusted partners. They wanted to be viewed as trusted partners and feel part of something bigger.

It's difficult to create that connection when everyone is working from home.

I'm somewhat old-school about this.

There are positions where remote work makes sense and will stay remote.

For example, many of our billing and collections employees work from home, and we're finding they're both happier and more productive.

But we've also brought many functions back.

People complained initially, but after about a month someone told me, "Now I can solve a problem by walking down the hall instead of scheduling a Zoom meeting."

It's part of human nature to seek connection.

I think we'll see the pendulum swing back somewhat because people want to be part of something bigger.

Anna Covert [00:08:48]:

I think that's especially true now because so much of life takes place online.

Social media originally made us feel as if we had more friends, but in many ways it has become an antisocial network.

People scroll endlessly without really knowing one another and can end up feeling even more isolated.

Let's talk about the book.

What frameworks or techniques do you recommend for firing with confidence, clarity, and compassion?

Peter D. Banko [00:09:39]:

Much of the book is actually about not getting to that point.

You need to hire correctly.

My oldest son is in his first management job, and he told me he was just looking for people who would show up to work.

I told him he needed to look for more than a pulse.

It's okay to go slowly when hiring.

Make sure you're bringing the right person onboard.

Then spend time developing and nurturing that person.

I structured the book around twelve Jungian archetypes as a tool for thinking about people.

You can look at what works when someone is functioning well and what happens when their shadow side emerges and becomes unproductive.

More of the book is about getting things right before you have to make the termination decision.

But ultimately, when things aren't working and you've done everything you reasonably can, you have to be clear and make the move.

It's not healthy for the leader or the employee to remain indefinitely in a relationship that isn't working.

The decision is also bigger than either individual. It's about the organization as a whole.

Anna Covert [00:11:07]:

And the clients too.

I recently made some significant changes at my agency involving people who had been with us for a long time.

Things had changed and evolved, and I knew the energy wasn't right anymore.

It also wasn't right for the client.

Those decisions are hard, but sometimes you know they have to happen.

How do you know when enough is enough? How long should leaders wait?

Peter D. Banko [00:11:38]:

One thing to remember is that it's business, not personal.

I had a boss early in my career who told me he once had to fire his stepfather.

He warned me that someday I might have to fire someone close to me.

Ten or fifteen years later, I had someone working for me whose spouse was friends with my wife and whose oldest son was friends with my son.

That person was taking money from the company.

Regardless of the friendship, there are lines you have to draw.

The decision ended not only the professional relationship but also affected the relationships between our families.

Those are difficult situations.

It's important to ask yourself the right questions.

Have I done everything possible to turn this around?

What more can I do?

Do I need outside help?

Sometimes I've asked another member of my leadership team or my chief people officer to help me see something I may be missing.

Ultimately, you have to determine whether the situation can be fixed.

There's one person I let go whom I later regretted losing.

It wasn't related to a turnaround or poor performance. We had to downsize.

That person was a good leader who got caught in the reduction.

Today, that individual oversees approximately twenty hospitals around the country.

Had I not let that person go, they may have remained stuck in that original organization.

The experience freed up their future in a way that ultimately allowed them to do more.

Sometimes leaving is healthier for the individual too.

I've also personally reached points where I no longer fit an organization.

A mentor early in my career told me I'd know when it was time to leave.

I was 24 and didn't understand what he meant.

With time and experience, you begin to understand that sometimes your time in a particular place has simply ended.

Unfortunately, many people remain longer than they should because change is frightening.

Anna Covert [00:14:21]:

In advertising, changing jobs used to be almost the only way to grow.

It was often how you earned more money, more respect, and a higher title.

Do you think that's true in other industries?

Peter D. Banko [00:14:32]:

Leadership can work the same way.

My children ask where we're from or where our home is, and I tell them it can be wherever they want it to be.

To move up and do more, you often have to move or change organizations.

I was fortunate to work for one organization for seventeen years while holding four different jobs, but that's increasingly unusual today.

Anna Covert [00:14:55]:

There can be benefits to experiencing different jobs.

Before starting Covert Communication, I had a business partner for six and a half years and handled nearly every aspect of the business.

That later helped me when I started hiring people because I understood what each job actually involved.

That's another important element of leadership: knowing enough about the work to understand what's really happening.

Peter D. Banko [00:15:28]:

I was recently walking out of the office and one of our young security guards, who's attending college, asked me how I got to where I am.

I jokingly told him it was luck.

Then I explained that every experience built on the previous one.

I was once a patient transporter and worked as a nursing aide.

You learn the business from the ground up.

Later, when someone sits in a meeting and tells you how something works, you can sometimes say, "Wait a second. I actually did that job. That's not really how it works."

Anna Covert [00:15:59]:

What do you think leaders are getting wrong right now?

Peter D. Banko [00:16:14]:

I think many leaders take too long to make tough decisions.

That can apply to people or larger organizational decisions.

I was recently asked to comment on a company that reduced part of its workforce even though it was performing well financially and continuing to grow revenue.

My reaction was that they were willing to make difficult decisions before they were forced to.

I admire that.

Many organizations and CEOs aren't bold or courageous enough to act from a position of strength.

I think we sometimes confuse caring with being nice.

If you care enough, you won't simply allow problems to fester and become worse.

Leaders need enough courage to make decisions before circumstances force them.

Anna Covert [00:17:57]:

What practical steps can leaders take before termination becomes necessary?

Peter D. Banko [00:18:07]:

One mistake is relying on annual performance reviews to have important conversations.

That's not the right time or place, and frankly, many annual review processes aren't very effective.

Leaders should have regular meetings with their teams.

I meet with my senior team frequently, including significant blocks of time each month.

The more time people spend together, the more trust they can build.

Individual meetings are also important.

For newer leaders, I may meet with them every two weeks.

We use a formal succession-planning process in which we evaluate leaders based on performance and potential.

We also use a nine-box framework.

These tools allow leaders to have candid conversations along the way.

By the time a situation reaches the point where it's no longer working, the decision should not surprise either person.

Anna Covert [00:19:32]:

Those are good tips.

Large organizations have more structure, but most American businesses are small businesses with fewer than twenty employees.

Does the experience change in a smaller company?

Peter D. Banko [00:19:53]:

I actually think entrepreneurs and smaller organizations sometimes handle these issues better than large companies.

For an entrepreneur, your paycheck is directly connected to whether customers remain, whether the business grows or shrinks, and whether employees perform.

In a large organization, executives may still receive salaries even when things don't go well.

Entrepreneurs often feel the consequences much more directly.

Sports teams are another example.

A friend of mine played in the NFL and explained that professional sports teams don't tolerate consistently poor behavior or performance.

If you're toxic in the locker room, eventually the team has to deal with it regardless of who you are.

Large employers are sometimes more willing to look the other way for too long.

Anna Covert [00:21:16]:

That makes sense.

Sometimes people only begin caring when they're forced to cover for the underperforming employee or work longer because the work isn't being done.

Peter D. Banko [00:21:28]:

Exactly.

My niece is in her first management job and told me she had someone who hadn't performed well for two years.

She worried about who would do that person's work if they left.

I told her that she and everyone else were already doing the person's work.

Sometimes it can actually be better not to have someone there because their presence creates more problems than value.

Anna Covert [00:21:53]:

Let's talk about the archetypes.

Can you give us some examples and explain how leaders can use them to identify opportunities or performance gaps?

Peter D. Banko [00:22:10]:

The first archetype I discuss is the Lover.

In large organizations, you're inevitably going to encounter people dealing with substance abuse, relationship problems, and other personal issues.

Those are areas where leaders should not attempt to become therapists or experts themselves.

You need HR, legal support, and appropriate outside resources.

If someone has a substance abuse issue, it's important to help them get support while also taking appropriate organizational action.

Mental-health issues require particular care because leaders need to understand the boundaries of what they should and should not address themselves.

Another archetype is the Caregiver.

My wife and youngest son fit that archetype.

Complete strangers will tell my wife their life story within ten minutes because she is naturally wired that way.

Caregivers are excellent at helping teammates, peers, and employees.

But sometimes that caregiving tendency becomes unhealthy or crosses boundaries.

Another is the Jester.

Royal courts have had jesters throughout history for a reason.

It's important to have people at work who bring playfulness and lightheartedness.

But sometimes humor crosses lines or moves into places that aren't helpful.

All twelve Jungian archetypes contribute different perspectives that can strengthen a team.

When operating at their best, they're enabling.

But occasionally the shadow side emerges and becomes unproductive.

Leaders need to address that early.

If it moves beyond what can reasonably be corrected, that's when the necessary goodbye may become appropriate.

Anna Covert [00:25:38]:

I like that framework because it's very visual.

I can picture all of the archetypes almost like characters in a court and imagine how they work together.

Peter D. Banko [00:25:51]:

I've also used spirit animals with previous teams as another type of archetype exercise.

My primary one is the giraffe because it's visionary.

When I'm not operating at my best, I'm more like a goose—pecking at people—which isn't helpful to me or the team.

Understanding those patterns is useful.

In the book, I use examples from literature, movies, and television to help people visualize the archetypes and understand when the behavior is working and when it isn't.

Anna Covert [00:27:22]:

Is there a test someone can take to identify their archetype?

Peter D. Banko [00:27:25]:

There are tests available online. Search for Jungian archetypes and you'll find assessments.

I think identifying your own archetype is an important part of the journey.

Anna Covert [00:27:30]:

What is the right way to terminate someone?

What tips would you give leaders?

Peter D. Banko [00:27:46]:

One of the best examples is in the movie Moneyball.

The basic takeaway is that we're all adults and professionals.

We deal with bad news in our personal lives all the time.

Don't walk into a termination conversation and begin with small talk about someone's weekend.

Get to the matter at hand.

Reference the conversations you've had in the past and explain how those discussions have led to this step.

Deliver the message clearly and concisely.

I recently had to tell two internal candidates that they didn't get a key senior executive job.

In some ways, that conversation felt almost worse than firing someone because they're both highly skilled leaders.

But the approach is similar: get to the point clearly.

Termination conversations should also be relatively short.

Then hand the administrative process over to HR so they can discuss severance, benefits, and other issues.

The biggest mistake I see is managers asking HR to conduct the termination for them.

If the person works for you, that's your conversation to have.

Don't place that responsibility entirely on HR.

Anna Covert [00:29:29]:

What are your thoughts about having another person present?

I now generally have someone else involved whenever I have a particularly sensitive employee discussion.

Peter D. Banko [00:29:54]:

I always have someone from HR with me.

It also allows for a warm handoff afterward.

Having HR present can be extremely important because employees may share information during the conversation that the manager didn't previously know.

I once had to downsize a department.

One employee revealed that his wife was eight months pregnant, which nobody knew.

We were able to work with HR and make accommodations, extend the transition period, and try to help him find something.

Another employee was an immigrant who would have lost their visa if we immediately terminated them.

That wasn't fully visible to either HR or me before the conversation.

We were able to keep the person employed for another six months while they transitioned to another job.

They ultimately found another employer during that period.

Having another knowledgeable person in the room matters because unexpected circumstances can emerge that require broader thinking.

I generally have my chief people officer with me during those discussions.

Anna Covert [00:31:16]:

After significant layoffs or the departure of a key team member, how do you maintain motivation and trust?

Peter D. Banko [00:31:35]:

You need to be transparent, but there are limits.

If someone is terminated for cause, you can't share the private details with the team.

No one needs to know that the person wasn't performing, had behavioral problems, or was dealing with another confidential matter.

You need to remain respectful to the people leaving the organization.

That's difficult because people naturally fill in the blanks.

But it's how we would want to be treated if we left.

I always say it's extremely important to treat people leaving well because everyone watches how you handle those moments.

Did you take care of them?

Did you provide reasonable severance?

No one should lose their home, family security, or car because the organization needed to make a restructuring decision if there are reasonable ways to support the transition.

After layoffs or a significant departure, leaders need to become more present and available.

If a senior-team member leaves, I gather the senior team immediately afterward and talk with them.

I acknowledge positive things about the departing person where appropriate.

I may also leave the room and give the team time and space to process the change together.

Not everyone processes change immediately.

After downsizing, leadership presence becomes even more important because the remaining employees may have to do more with fewer resources.

Externally, leaders also need to think carefully about what information is shared publicly.

I used to believe extreme transparency was almost always preferable.

Today, I'm somewhat more cautious because public information can be interpreted or amplified in ways leaders didn't intend.

Anna Covert [00:34:40]:

I think AI makes that even more complicated.

A statement can be pulled into an AI system, stripped of context, and suddenly interpreted as evidence that a company is failing.

Peter D. Banko [00:34:59]:

We've experienced that.

During an acquisition, organizations make filings with state and federal agencies.

AI can pull information from those filings without understanding the full context or story.

In situations like that, AI isn't always helpful.

Anna Covert [00:35:18]:

Privacy and employee data create additional concerns.

In Europe and other jurisdictions, there are strict rules about what employee information companies can retain and what happens to that information when someone leaves.

Organizations also need to be careful about collecting sensitive information involving ethnicity, religion, relationships, medical information, and other protected categories.

Even interview notes can become relevant if a rejected candidate later alleges discrimination.

Peter D. Banko [00:36:25]:

Another challenge is that it can be very difficult to learn why someone left a previous job.

I once joined an organization and inherited an excellent leader.

We eventually promoted the person.

After the promotion, someone came forward and told us the individual had previously been convicted of a felony and served time for conduct related to their job.

That information hadn't been disclosed and hadn't appeared in the background check.

We ultimately had to let an otherwise capable leader go because the information had been falsified.

Reference calls can also be difficult because employers are often cautious about how much they can legally disclose.

On the other hand, leaders should still build teams with diverse perspectives.

Diversity of thought and experience makes teams stronger and makes me a better leader.

But hiring organizations also face limits in how much they can learn about problems that occurred in someone's previous employment.

Anna Covert [00:38:19]:

I've heard from several guests that hiring cycles are becoming significantly longer.

Executive hiring that once took a few months can now take nine months or even a year.

People apply repeatedly, go through multiple interviews, and still don't get the position.

At what point do candidates become discouraged and step out of the market entirely?

Peter D. Banko [00:39:05]:

Two of my children recently earned master's degrees, and it was difficult for them to find jobs.

It's a challenging job market.

I don't think AI is always serving applicants well.

AI screens resumes and can eliminate people.

I've had people inside our organization tell me that a neighbor applied for a position and was told they weren't qualified.

Then I reviewed the resume and thought the person was clearly qualified.

The screening process had removed them.

It's difficult for young people coming out of college or graduate school to find their first jobs.

I tell my children to get that first opportunity, do a good job, and use it to build the next one.

Executive hiring is taking longer too.

It used to be possible to run a search, interview several candidates, and fill a senior role in less than six months.

I'm finding that it's taking longer now.

Perhaps candidates are remaining in their current roles longer, maybe applicant pools aren't as strong, or perhaps leaders have simply become better at avoiding rushed decisions.

Whatever the cause, finding the right people is taking longer.

Anna Covert [00:40:39]:

That connects with conversations I've had with guests like Gina Riley, author of Qualified Isn't Enough.

Young people need to become visible beyond simply submitting something on LinkedIn.

Attend networking events.

Volunteer.

Meet people in person.

Walk into an office.

Make yourself visible beyond the online application.

Peter D. Banko [00:41:18]:

I tell my middle son something similar.

He once told me he'd sent one resume.

I told him that's great, but he probably needed to send another twenty-four.

It's a numbers game.

You have to network.

It can't all happen through email or LinkedIn.

You need to get your name out there and create enough opportunities for something to land.

Anna Covert [00:41:47]:

What's next for you now that the book is out?

Peter D. Banko [00:41:55]:

I'd like to write another book.

One possibility would focus on what it's actually like to be a CEO because I think it's one of the most misunderstood and lonely jobs.

Another would focus on turnarounds.

I've been doing turnarounds for approximately twenty years, and there's a lot people misunderstand about what a true organizational turnaround requires.

I call it a special kind of crazy.

I've worked in healthcare since 1984, after my junior year of high school.

I tell people I don't really know how to do anything else, so I'll probably keep doing healthcare.

I think we have tremendous opportunities in this country to make healthcare more accessible and affordable.

At this point in my career, I'm less interested in simply building more buildings or creating programs that people may or may not use.

I want the last part of my career to focus on making healthcare more accessible and affordable.

Anna Covert [00:43:00]:

That's a wonderful mission.

How can people find your book?

Peter D. Banko [00:43:08]:

The Necessary Goodbye is available through major booksellers, including Amazon, Target, and Barnes & Noble.

People can also find information about me and the book online.

The book is also available in selected airport bookstores through the end of August.

Anna Covert [00:43:26]:

When my first book launched, I remember seeing it in an airport for the first time.

That was such a wonderful feeling.

Peter D. Banko [00:43:36]:

We've done some weekend travel, so I've actually gone into airport stores and personally signed copies.

If you're in Denver, Newark, Orlando, or possibly some of the other locations, there may be signed books.

I've also had friends find the book in airports and send me pictures.

My cousin saw it in Phoenix.

It's very cool.

Anna Covert [00:44:00]:

We'll put all of the book links below this episode.

Thank you so much for being here.

And to everyone listening, if you haven't yet subscribed to the podcast, please do so.

We've now reached more than 220,000 subscribers, and that's because of you and your aloha.

If you love this content, like it, subscribe, and share it with people who will get value from it so I can continue attracting wonderful guests like Peter to share their wisdom with us.

I can't wait to see you next week in the pixels.

Aloha.


I hope you enjoyed this episode of The Covert Code Podcast.

If you're enjoying the insights we share, follow us on your favorite podcast platform and leave a review.

Your support helps us reach more digital innovators like you.

Share this episode with your friends and colleagues on social media and help spread the word.

If you work in the solar industry or are curious about where clean energy is headed, follow Anna Covert's other podcast, The Solar Coaster.

The show explores the real stories, trends, and challenges shaping the solar industry through bold conversations and practical takeaways.

Follow The Solar Coaster so you don't miss an episode.

Thanks for tuning in. See you in the pixels. Aloha.

Comments Off on Episode 126 – Peter Banko

Episode 125 – Tyrone Johnson

By |2026-08-04T22:17:56+00:00August 6th, 2026|Author, Get Your Geek On, Podcasts|

Beyond the Deal: What Every CEO Needs to Know About Private Equity Success

For many entrepreneurs, selling a business represents the finish line. Years of hard work culminate in an acquisition, a successful exit, and what appears to be the realization of the American dream.

But according to Tyrone Johnson, that’s where an entirely new journey begins.

In Episode 125 of The Covert Code Podcast, host Anna Covert sits down with Tyrone, CEO of Cascade Residential Services, Operating Partner at Thrive Capital, and author of Beyond the Deal: A CEO’s Guide to Private Equity Success, to discuss what happens after private equity enters the picture—and why many leaders underestimate the transition.

Drawing from decades of executive leadership and operational experience, Tyrone shares practical lessons on preparing a company for investment, leading through change, building scalable organizations, and embracing emerging technologies like artificial intelligence.

The Deal Isn’t the Destination

Many founders spend years preparing to sell their companies. They focus on increasing revenue, improving profitability, and making their business attractive to investors.

But once the transaction closes, expectations change dramatically.

Private equity firms aren’t simply purchasing financial statements—they’re investing in leadership, execution, scalability, and long-term enterprise value.

According to Tyrone, many CEOs underestimate how different life becomes after the acquisition.

The reporting structure changes. Decision-making changes. Accountability increases. Success is no longer measured solely by revenue but by operational excellence, sustainable growth, and value creation.

People Build Enterprise Value

While technology continues to transform business, Tyrone emphasizes that people remain the foundation of every successful organization.

Leadership teams, company culture, accountability, and employee development often determine whether an investment succeeds or struggles.

Private equity firms recognize that systems matter—but great systems still require exceptional people to execute them.

Companies that invest in developing leaders throughout the organization create stronger, more resilient businesses capable of scaling far beyond their founders.

Preparing Before Investors Arrive

Many business owners believe they’ll organize their operations after attracting investors.

Tyrone recommends the opposite.

Companies should build scalable systems long before entering conversations with private equity firms.

That includes documenting processes, improving financial reporting, strengthening operational consistency, investing in technology, and ensuring leadership teams can operate effectively without relying on a single individual.

Businesses that prepare early create more options—and often command significantly higher valuations.

Artificial Intelligence Is Changing Private Equity

Artificial intelligence is rapidly transforming every industry, and private equity is no exception.

Tyrone explains that AI is helping organizations analyze larger amounts of information, identify trends more quickly, and improve operational decision-making.

Rather than replacing executive judgment, AI becomes another tool that allows leadership teams to make faster, more informed decisions.

Organizations willing to embrace AI responsibly may gain a meaningful competitive advantage as investment firms increasingly evaluate technology readiness during acquisitions.

Throughout The Covert Code Podcast, Anna frequently explores how artificial intelligence can help businesses become more efficient while preserving the human expertise that ultimately drives innovation.

Culture Becomes a Competitive Advantage

Financial performance matters.

But investors increasingly recognize that sustainable growth depends on company culture.

Organizations with strong leadership, healthy communication, clear accountability, and engaged employees are better positioned to execute growth strategies after an acquisition.

Culture isn’t a soft skill.

It’s a measurable business asset.

Companies with strong cultures often experience lower turnover, stronger customer satisfaction, and greater operational consistency.

Scaling Requires Different Leadership

One of the biggest transitions founders experience is evolving from entrepreneur to enterprise leader.

The skills required to launch a business are not always the same skills required to scale one.

As organizations grow, CEOs must delegate more effectively, trust their leadership teams, develop future executives, and focus on long-term strategic thinking instead of daily operations.

That evolution can be uncomfortable—but it’s often necessary for continued growth.

Execution Creates Value

Ideas are important.

Vision matters.

Strategy provides direction.

But execution ultimately determines enterprise value.

Tyrone explains that businesses consistently delivering operational excellence, measurable performance, disciplined execution, and continuous improvement become significantly more attractive to investors.

Private equity firms aren’t simply investing in today’s numbers.

They’re investing in confidence that tomorrow’s numbers will continue improving.

Final Thoughts

Whether you’re preparing to sell your company, considering outside investment, or simply trying to build a stronger organization, this conversation offers valuable perspective on leadership, growth, and long-term value creation.

Tyrone reminds entrepreneurs that the acquisition isn’t the end of the story.

It’s often the beginning of an entirely new chapter.

If you’re building a business designed to last—not just one designed to sell—this episode provides practical advice every CEO should hear.


Watch the Full Episode

Watch Episode 125 of The Covert Code Podcast featuring Tyrone R. Johnson.

Learn more about Tyrone at tyronerjohnson.com.

Discover Cascade Residential Services.

Learn more about Thrive Capital.

Purchase Beyond the Deal: A CEO’s Guide to Private Equity Success from Forbes Books.

Explore more interviews with business leaders on The Covert Code Podcast.

Learn more about host Anna Covert and her work in AI, digital marketing, privacy, and business growth.

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📚 ABOUT HOST ANNA COVERT:
Anna Covert is the host of The Covert Code Podcast and the author of The Covert Code – Mastering the Art of Digital Marketing and The Solar Coaster. With over two decades of experience in digital marketing and business strategy, Anna has worked with top-tier companies like Microsoft, Apple, and IBM and leads Covert Communication, Hawaii’s largest digital agency.

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Beyond the Deal: What It Really Takes to Win in Private Equity

The Covert Code Podcast

Host: Anna Covert

Guest: Tyrone R. Johnson

Book: Beyond the Deal: A CEO’s Guide to Private Equity Success


Anna Covert [00:00:04]:

Aloha. My name is Anna Covert, and I am coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is Beyond the Deal: What It Really Takes to Win in Private Equity.

My very special guest is Tyrone R. Johnson, CEO of Cascade Residential Services, operating partner at Thrive Capital, and author of Beyond the Deal: A CEO’s Guide to Private Equity Success.

With more than 20 years of executive leadership experience, Ty has worked with Fortune 500 companies, private equity firms, turnarounds, and startups. He has deep expertise in the technology, industrial, and financial sectors.

Today, we will be talking about what happens after the deal closes, why execution is key, and how leaders can succeed in private equity-backed businesses.

Thanks so much for being here, Ty.

Tyrone R. Johnson [00:00:59]:

Thank you for having me. It is a real pleasure.

Anna Covert [00:01:01]:

To get us started, we love the CliffsNotes version of the Ty story.

You are such an interesting person. How did you get from where you were to where you are now? What do you think is important for our listeners to know about you?

Tyrone R. Johnson [00:01:13]:

I fell into private equity accidentally.

I came from a blue-chip corporate background. I worked at GE early in my career and moved around quite a bit.

Someone I previously worked with eventually joined a private equity-backed business. I went to join him, caught the bug, and have now been doing this for more than 20 years.

What I love about private equity is that it is very challenging but also extremely rewarding.

If you perform well, every few years you may receive a new opportunity. It is not monotonous.

I love the challenge, and I love building and scaling businesses. It is the perfect environment for me.

Anna Covert [00:01:50]:

Where are you located now?

Tyrone R. Johnson [00:01:52]:

I am currently in Florida.

Anna Covert [00:01:54]:

Why did you decide to write this book?

Was writing a book something you always wanted to do, or had you been working on it for years? Tell me the story behind the book.

Tyrone R. Johnson [00:02:09]:

It was not something I had always planned to do, and I had not been working on a book for the previous ten years.

The idea came from conversations I had with CEOs who were new to private equity.

At conferences and in other settings, people would pull me aside because I had experience and ask for my thoughts on being a first-time private equity CEO.

Over the years, I recognized a major gap in knowledge and experience.

As far as I could tell, there were not many strong resources available to help those leaders make the transition.

I decided to write a book that might make the transition smoother, less intimidating, and hopefully more successful.

Anna Covert [00:02:58]:

What are some of the biggest problems or challenges that come up for first-time private equity CEOs?

Tyrone R. Johnson [00:03:10]:

It is a very different environment.

Many of the companies our firm works with were previously founder-led organizations. They were built by entrepreneurs who are receiving institutional capital for the first time.

That creates a very different business environment.

Think about it this way: The founder may have a boss for the first time.

They are now reporting to someone and must answer to someone. That can be difficult for certain operators.

Private equity is also a very fast-paced environment, which can make the transition challenging.

There is also a different financial language associated with private equity.

There is EBITDA and a long list of other acronyms used to measure performance and determine whether a business is doing well.

The company may also need to enter growth mode in a different way than the founder is accustomed to.

Part of that growth may involve mergers and acquisitions.

Buying companies, integrating them properly, and ensuring the management team can execute may all be new experiences.

I try to walk leaders through those transitions and help them understand the best way, based on my experience, to build a sustainable business that creates meaningful value.

Anna Covert [00:04:38]:

I can imagine that feels like a whole new world, as Aladdin would call it.

Tyrone R. Johnson [00:04:44]:

It is an entirely new world.

There is a lot of material about the deal itself: how to sell your company, how to reach the transaction, and how to position the company for success.

I did not see much material about what happens next.

That is what was missing in my conversations with CEOs.

The deal is finished, and perhaps the founder has received a large check, but now what?

This book answers the question, “Now what?”

Anna Covert [00:05:16]:

That is very important, especially when you think about operating with the end in mind.

We recently had another guest discussing exit planning, and this takes the conversation one step further.

People become very excited about selling or receiving the investment, but what happens afterward?

Is there sometimes a major letdown after a founder reaches that goal and wonders what comes next?

Tyrone R. Johnson [00:05:43]:

There can definitely be a letdown.

In some cases, there is also remorse.

Founders may miss their independence. It is no longer entirely their company or their baby.

They now attend board meetings, deliver presentations, and answer questions they may never have faced before.

That can be uncomfortable.

It is not always that they have become disinterested because they received a large check. The entire operating system has changed, and some founders do not like the new environment.

Other founders adapt and do a fantastic job.

You do not always know which situation you have until you begin working together.

I try to help people understand and prepare for the experience transparently.

Private equity may be great for you, or it may not be. It is helpful to understand that before the transaction, when possible.

Anna Covert [00:06:43]:

What separates a business that scales successfully from one that struggles under pressure?

Tyrone R. Johnson [00:06:49]:

I think it primarily comes down to two things.

You need the right team, and you need processes and procedures.

If you have those in place, you have a much better chance of scaling successfully.

When a company moves from a less professionalized environment into a professionalized one, people may have been operating largely through instinct, gut feeling, or a seat-of-the-pants style.

Experience matters, but if you are truly going to scale and professionalize the business, you need systems, processes, and technology.

You need tools that make the business more efficient.

You also need talented people who know how to implement those tools.

Finally, you need the data generated by those systems to tell you whether your strategy is working or whether you need to change course.

The businesses that perform well integrate quickly, build the right team, and then accelerate.

The businesses that struggle often hold onto underperforming people because they are family members, close friends, or long-standing trusted employees.

They may also resist adopting the technology and systems required to support a much larger operation.

Anna Covert [00:08:09]:

That makes a significant difference.

In a smaller company, leaders may make decisions based more on emotion than numbers.

There are many feelings involved when you have personally grown a business.

Are there certain personality types that perform better after a private equity acquisition?

Does the leader’s background in finance, technology, industry, or another discipline make a difference?

Tyrone R. Johnson [00:08:58]:

I do not think the specific discipline or industry matters as much.

What I have found is that competitive people who want to win tend to do well in this environment.

Private equity is fast-paced and hands-on. It is not for everyone.

In some cases, you have no idea what tomorrow will look like.

You need a certain level of calmness and confidence, while remaining focused on the end game.

In our terminology, winning means creating value and producing an exit multiple that exceeds what was originally paid for the business.

It also means increasing EBITDA and building a stronger company.

When you build a team of competitive A players, they tend to perform well in private equity.

People who are more laid-back or simply interested in completing a solid day’s work may not be as successful in this environment.

Anna Covert [00:10:12]:

Are those the people who eventually phase themselves out?

Tyrone R. Johnson [00:10:20]:

Sometimes they phase themselves out, and sometimes you have to help them.

There may be a gap between what they believe they are contributing and what the business actually requires.

Some people recognize that the environment is not for them and decide to leave. That is perfectly acceptable.

Other people remain in denial.

They do not realize they are failing to meet the expectations, and you eventually have to have a difficult conversation.

Anna Covert [00:10:49]:

Do you ever see so much resistance that someone almost begins sabotaging the business?

Tyrone R. Johnson [00:10:56]:

It happens more often than people might imagine.

It can occur with founders whose authority is no longer what it once was.

They may not have the same influence or support from employees because the environment has changed.

They begin to quiet quit.

Sabotage may be too strong a word in some cases, but their engagement declines.

They are not as helpful as they could or should be.

Eventually, it becomes apparent that they are working against the new direction, and the company may need to exit them.

I would say that, more than half the time, this is the reason an incumbent leader is removed.

They become despondent and nonconstructive.

Anna Covert [00:11:48]:

Nonconstructive is a good way to describe it.

When you are evaluating or stepping into a company, what are you looking for to determine whether it is ready for private equity and capable of moving to the next stage?

Tyrone R. Johnson [00:12:05]:

There are many factors, but I focus on two in particular.

The first is the team.

How capable is the current team of accomplishing what we plan to do?

When a private equity firm acquires a company, it has conducted due diligence on the business, team, market, and competition.

There is an investment thesis and a reason to believe that, through the partnership, two plus two can equal five.

After that process, I determine whether the team can make the journey with us and reach the outcome we envision.

You have to evaluate that clearly and without emotion.

There may be many genuinely good people in the company.

The question is not whether someone works hard or is a nice person.

The question is whether that person can do what the business needs to reach the desired outcome.

I spend a great deal of time determining whether we have the right athletes to perform at the level we need.

When we do not, we try to make changes quickly.

Those changes should still be handled in a way that allows people to maintain their dignity.

There is no reason to be rude, cruel, or insensitive.

You can have honest conversations and help people position themselves for success somewhere else.

The second factor is infrastructure.

Is the business sophisticated enough to support the planned growth?

If we plan to acquire ten companies, introduce a new product, or build a new plant, does the infrastructure exist to support it?

Is there an enterprise resource planning system?

Is there a professional accounting system?

Is there a customer relationship management platform?

If not, much of my early work involves building the team and infrastructure required to scale.

Anna Covert [00:14:04]:

That is one of the areas I specialize in.

I work with large organizations, including Fortune 500 companies, and conduct technology audits.

Many people may not realize that a large company can have approximately one hundred pieces of software.

Employees may not be using half of them, and different departments may be using duplicate tools.

There can be significant economies of scale from consolidating or removing unnecessary platforms.

Companies can save substantial amounts of money very quickly through licensing reductions and better system integration.

Tyrone R. Johnson [00:14:42]:

That is extremely important for another reason as well.

It is not only about creating infrastructure that helps the business perform better and scale.

It also matters when the company exits.

One of the truths about private equity is that the company will eventually be sold.

A potential buyer will want to understand the infrastructure that has been built.

That may influence whether the buyer wants the company and how much the buyer is willing to pay.

If the buyer must spend significant additional time and money building that infrastructure, the business may be less valuable.

Getting the infrastructure completed quickly and correctly can enhance value.

Anna Covert [00:15:29]:

That makes sense.

It also makes me think about the Peter Principle.

In smaller companies, someone may hold a role they are not fully equipped to perform.

They may have been promoted repeatedly because they worked hard and did their best.

Then private equity enters, and it becomes clear that the person may not have the capabilities required to serve as a CFO or another senior executive.

Are those situations usually easy to identify?

Are people relieved to step out of those roles, or is there often resistance?

Tyrone R. Johnson [00:16:12]:

It is a mixed experience.

Some people are relieved.

They may say, “Thank goodness. I did not want to admit this role was not right for me. I was going to give it my best effort, but I knew deep down that it was not a fit.”

Other people remain in denial and believe they have the capability to do what is required.

Sometimes you recognize that a person is not ready yet but may be able to grow into the role.

With development, mentorship, and meaningful support over a reasonable period of time, they may succeed.

I have seen that happen.

However, when it is clear that someone cannot attend board meetings, communicate with investors, and establish trust, the company must make a change.

The CFO role is one of the most important positions in a private equity-backed portfolio company.

The CFO may interact with the private equity firm even more than the CEO.

The CFO is responsible for the allocation of capital and serves as the fiduciary link between the company and the investment firm.

If the books cannot be closed correctly, the numbers are inaccurate, or management cannot receive timely visibility into performance, that CFO is highly likely to be replaced.

Anna Covert [00:18:01]:

The world is moving very quickly, especially with artificial intelligence.

Are you seeing changes across private equity?

What are firms investing in, what are they avoiding, and what trends do you see developing?

Tyrone R. Johnson [00:18:22]:

I would answer that in two ways.

The first is how businesses and private equity firms are using AI to improve operations.

The second is how AI affects decisions about where to invest.

We are using AI tools for customer service, and many portfolio companies within our firm are doing the same.

I am not ready to say that AI can completely replace a person.

However, when a company has capacity constraints or cannot answer phones during certain hours or weekends, AI assistants can be very capable.

We are seeing more deployment of AI agents, particularly in customer service.

We are also using generative models for analysis.

When I am evaluating a company as an operating partner, I might take the confidential information memorandum, or CIM, and place it into Claude.

I can ask for a summary of the merits of the deal.

Within two or three minutes, I may receive three or four pages of strong analysis.

Anna Covert [00:20:06]:

It is incredible.

Tyrone R. Johnson [00:20:07]:

Previously, I would have read seventy pages, taken notes, highlighted important sections, and called several other people to ask what they thought.

Now, within minutes, I can receive a comprehensive analysis that helps guide further review.

It does not replace conducting due diligence or making your own evaluation.

It gives you a significant head start and helps you identify where to focus.

The second trend is that private equity firms are increasingly focusing on residential and commercial services that still require human labor.

In my business, someone still needs to climb into an attic and turn a wrench.

Landscaping requires someone to mow the grass. Painting requires someone to work on the house.

Private equity has been moving into these blue-collar service businesses for several years.

Even with AI, those services still require a human being to perform the work at a high level.

Some investors may be becoming more cautious about software-as-a-service and cloud-based businesses because AI may quickly disrupt or surpass certain offerings.

Meanwhile, more money is moving into professional and residential services that require someone to physically touch, repair, maintain, or improve something.

Anna Covert [00:22:07]:

That makes sense.

I have heard that some companies are attempting to attract investors simply by changing their names to include the term “AI.”

Tyrone R. Johnson [00:22:20]:

There has been a lot of that.

During the dot-com boom in the late 1990s, people did something similar.

The term “vaporware” was used for products that appeared impressive but ultimately disappeared because there was no real substance.

I am not sure what the current term should be for companies dressing up ordinary software businesses as authentic AI companies, but there should be one.

Anna Covert [00:22:56]:

They are trying to ride the wave.

In technology, there used to be more interest in prototyping, discovery, and development.

Now, many people want to move immediately to the finished product.

If the product does not already exist, they may not want to invest in the discovery or research required to create it.

Tyrone R. Johnson [00:23:28]:

That is happening across industries.

People are skipping steps and racing to the end.

With AI, someone may claim to have built a product that is really powered by Claude or another provider without understanding whether the company itself has any meaningful substance.

I receive calls and emails every day from new AI companies claiming they can solve a particular problem.

Six months earlier, many of those companies did not exist.

Anna Covert [00:24:04]:

That is frightening from a data perspective.

A free trial may appear harmless, but businesses remain responsible for their data.

If you connect an unfamiliar service to your CRM or ERP and give it access to company or customer information, you may become liable for how that data is handled.

We are seeing increased privacy enforcement and legal activity.

I specialize in privacy protection and data mapping.

One of my clients in New York recently received a claim involving the California Consumer Privacy Act because a website pixel had been misclassified in the cookie preferences.

The company was not even actively conducting business in California.

AI is making it easier for attorneys and other parties to identify alleged violations.

When a private equity firm acquires a large company and later discovers a data or privacy violation, who becomes responsible?

It does not seem like responsibility is always clear in the United States.

Tyrone R. Johnson [00:25:29]:

It is not always clear.

There may be state or federal laws that apply, but this is why legal and human resources due diligence are so important.

You may know what company you are buying, but you do not always know who you are buying.

The people and their character can be difficult to evaluate.

During the deal process, everything can feel romantic.

Everyone says the right things. Everyone is excited. The seller may receive a large check, and the deal team wants to complete the transaction.

There is a sense of euphoria around the partnership.

The real moment of truth occurs after closing.

If something was missed during diligence, it can have a major impact on the investment between acquisition and exit.

Cybersecurity is one area where we spend a significant amount of time.

When a private equity investment is publicly announced, bad actors may recognize that the company now has a major investor behind it and decide to attack.

We also conduct background checks on individuals.

People would be shocked by what sometimes appears in those checks.

We have walked away from deals because a person’s background did not demonstrate the value system we required.

People may have changed, and that is admirable, but we do not necessarily want the investment to become the test case for whether previous bad behavior has ended.

In some cases, the background issues involve serious crimes.

AI creates additional risks because bad actors are using these tools for harmful purposes.

That makes comprehensive legal, cybersecurity, and HR diligence even more important.

We spend significant money on those reviews because we want to get them right.

Anna Covert [00:27:57]:

I can understand why that is especially important now, given how quickly everything is changing.

Tyrone R. Johnson [00:28:02]:

To answer your question directly, after the acquisition it becomes our problem.

There are different transaction structures.

In a stock deal, the buyer generally assumes the company and its liabilities.

In an asset deal, the buyer may purchase selected assets and receive some protection from past liabilities.

However, an asset deal does not necessarily protect you from people who join the new company and continue behaving poorly.

There is a chapter in my book about a management team that spent company money on lavish trips, expensive dinners, five-star hotels, and first-class flights.

They treated the investor’s capital like funny money.

The company was not performing well.

During diligence, everyone had shaken hands, appeared happy, and seemed like the right partner.

Three months later, we were reviewing the profit and loss statement and wondering what had happened to operating expenses.

It was shocking.

Anna Covert [00:29:10]:

That is unbelievable. They were living beyond their means using someone else’s money.

Tyrone R. Johnson [00:29:18]:

Exactly. It was other people’s money.

Anna Covert [00:29:21]:

That reminds me of the controversy involving the book Three Cups of Tea.

The story involved raising money to build schools for women and children in Pakistan.

I remember sending a small donation because the mission sounded beautiful.

Later, questions emerged about how much of the money had actually gone toward building schools and how much had been spent elsewhere.

It is unfortunate when people use a good cause for personal benefit.

How important is value alignment between a private equity investor and the company?

How do you preserve company values while also creating consistency with the investment firm?

Tyrone R. Johnson [00:30:28]:

It is extremely important.

If a company does not have a value system, it does not have much of anything.

For me, the company’s value system must align with the private equity firm.

I have worked with this particular firm for more than ten years, and one of the best aspects of the relationship is the team’s character, integrity, and values.

Even during difficult periods or disagreements, people remain respectful.

You are challenged, and you are expected to produce and perform.

However, you can be demanding and maintain high expectations without being a jerk.

Those qualities are not mutually exclusive.

I look for the same value alignment in the people I hire.

Everyone who works with me must demonstrate the values that will define the entire company.

We also evaluate values when acquiring companies.

Can we trust these people?

Is their character similar to ours?

What happens when they face adversity?

Will they remain honest?

I ask open-ended questions and present scenarios to understand how people might respond.

Values also have to be demonstrated consistently.

We once had a general manager who had been asked several times to make an operational change that would create consistency across our businesses.

He disagreed and believed the change would damage the division he was running.

We provided analysis and examples demonstrating why we did not believe that would happen.

We also explained that we could reverse the decision if it did not work.

A member of my management team met with him.

In front of his entire staff, the general manager became defiant, cursed, and behaved unprofessionally.

When I learned about it, I said this was a direct violation of our culture and values.

There was only one appropriate response, which was termination.

The individual was producing results and running a good business.

However, everyone was watching to see whether we truly stood behind our values or would ignore the behavior because the numbers were good.

You have to walk the walk if you talk the talk.

Values must be core operating principles, not merely words on a wall.

Anna Covert [00:33:51]:

I agree.

I recently had another guest discuss how much longer hiring cycles have become.

Companies are afraid of making the wrong executive hire.

Some searches now take nine months or even a year and involve several interviews and assessments.

How long does a private equity acquisition process usually take from initial interest to signing the final documents?

Tyrone R. Johnson [00:34:20]:

The rule of thumb is approximately six months from the time you begin evaluating the company until the transaction closes.

There are several steps.

First, a banker or sell-side advisor provides a teaser.

That may be a one-page document with five or six bullet points about the company.

If the opportunity is interesting, you ask to learn more.

You then sign a nondisclosure agreement, agreeing to keep the information confidential.

After signing the NDA, you receive the confidential information memorandum, commonly called a CIM.

The CIM provides extensive information about the business.

You review it and determine whether you want to continue.

If so, you submit an indication of interest, or IOI.

The IOI says that you are interested in meeting management and provides a high-level range of what you might be willing to pay.

You may also describe the proposed structure.

For example, you may request that the sellers retain rollover equity.

You may also propose an earnout, where the seller receives additional proceeds if the company continues performing over a certain period.

If the advisor and management team are receptive, you are invited to a management presentation.

That meeting may take place in person or by video and typically lasts two or three hours.

You ask detailed questions about the company and clarify information from the CIM.

The meeting may also include tours of facilities.

Afterward, a virtual data room is opened.

It contains extensive information, including employee data, locations, financial records, contracts, and other supporting documents.

After reviewing that information, you determine whether to submit a letter of intent, or LOI.

The LOI includes detailed terms describing what you are prepared to pay and how quickly you believe you can complete the deal.

The first phase may involve approximately four months of meetings and evaluation.

Once the LOI is signed, everyone races toward closing.

That is when the buyer begins confirmatory diligence.

A third party may conduct a quality-of-earnings review.

Attorneys conduct legal diligence. Internal and external teams conduct business, HR, technology, and other reviews.

The buyer may have another two months to complete those steps before closing.

The total process is generally approximately six months: three or four months of evaluation followed by two months of intensive confirmatory diligence.

Anna Covert [00:38:10]:

That explanation is very helpful.

Once the deal closes, is there a short resting period, or does execution begin immediately?

Tyrone R. Johnson [00:38:19]:

There is no resting period.

Toward the end of diligence, a team is already preparing the integration plan.

They are determining what day one, day thirty, day sixty, and day ninety will look like.

Immediately after closing, the team begins executing.

Bank accounts and banking relationships may change.

Vendor agreements may need to be transferred into the name of the new entity.

If management changes are planned, those processes may begin.

The team has developed a playbook in anticipation of closing.

Once the transaction is complete, the integration team moves into action.

That can be extremely disruptive to the existing management team because many of them have never experienced anything similar.

At the same time, they are still expected to remain focused on the business and continue performing well.

The first three or four months after closing can be very difficult because many legal, financial, and administrative changes must be completed.

Anna Covert [00:39:25]:

Those are always exciting things to work through.

Even setting up an LLC involves a long list of forms and administrative details.

Tyrone R. Johnson [00:39:37]:

That is right. It is not insignificant. There are many details.

Anna Covert [00:39:40]:

This has been very interesting.

What is next for you, Ty?

Are you working on another book or doing public speaking?

Tyrone R. Johnson [00:39:47]:

My primary focus is my job at Cascade.

I am working to create the best possible outcome for all of Cascade’s stakeholders.

During nights and weekends, I speak with people about the book and how I may be able to help them.

I have accepted several speaking engagements and podcast appearances.

I am trying to let people know that, if they are thinking about selling their company or have already sold it and want to understand life on the other side, this book is a resource.

The main thing remains the main thing, but I enjoy helping people whenever those opportunities arise.

Anna Covert [00:40:36]:

How can people contact you, and where can they find your book?

Tyrone R. Johnson [00:40:40]:

The book is available through Amazon, Target, Barnes & Noble, and other major booksellers.

People can find me on LinkedIn by searching for Tyrone R. Johnson.

My website is TyroneRJohnson.com, where additional information is also available.

Anna Covert [00:41:08]:

We will include all of those links below this episode.

Thank you so much for joining me, Tyrone.

To everyone listening, if you have not subscribed yet, please do so.

We recently surpassed 200,000 subscribers, and I am overwhelmed with gratitude.

It is because of you and your aloha.

Please continue sharing this content with your friends, family, and colleagues so I can bring more great guests like Ty onto the show to share their wisdom.

I cannot wait to see you next week in the pixels. Aloha.

Tyrone R. Johnson [00:41:39]:

I am a big fan. Take care.


I hope you enjoyed this episode of The Covert Code Podcast.

If you are enjoying the insights we share, follow us on your favorite podcast platform and leave a review.

Your support helps us reach more digital innovators like you.

Share this episode with your friends and colleagues on social media and help spread the word.

If you work in the solar industry or are curious about where clean energy is headed, follow Anna Covert’s other podcast, The Solar Coaster.

The show explores the real stories, trends, and challenges shaping the solar industry through bold conversations and practical takeaways.

Follow The Solar Coaster so you do not miss an episode.

Thanks for tuning in. See you in the pixels. Aloha.

Comments Off on Episode 125 – Tyrone Johnson

Episode 124 – Chip Higgins

By |2026-08-02T08:27:43+00:00July 31st, 2026|Author, Get Your Geek On, Podcasts|

The Momentum Advantage: Why Some Businesses Keep Growing While Others Stall

Featuring Chip Higgins, founder of Bizzics and author of The Bizzics Way

Growth rarely stops all at once.

A business may continue generating revenue, serving customers, and paying its expenses while quietly losing the energy that once drove it forward. Sales flatten. Margins begin to narrow. Leaders become increasingly cautious, and the company starts protecting what it has instead of building what comes next.

That is the danger of a business plateau.

In Episode 124 of The Covert Code Podcast, Anna Covert welcomes Chip Higgins back to discuss The Momentum Advantage: Why Some Businesses Keep Growing While Others Stall.

Chip is the founder of Bizzics, a business coach, speaker, and author of The Bizzics Way: Powering Your Small Business to Maximum Momentum.

The conversation explores how entrepreneurs can regain momentum, use artificial intelligence responsibly, reconnect with customers, strengthen employees, protect margins, and make better decisions in a constantly changing environment.

Business Momentum Requires More Than Movement

A company can remain busy without moving forward.

Employees may be working long hours. Marketing campaigns may still be running. Customers may continue placing orders. Yet none of those activities automatically indicate that the business is gaining momentum.

Momentum requires both movement and direction.

Chip uses principles from physics to help business owners understand this distinction. A company needs energy, velocity, direction, and enough force to overcome the friction working against it.

The same idea forms the foundation of The Bizzics Way, which translates principles such as force, energy, friction, and momentum into practical guidance for small-business owners.

A company moving rapidly in the wrong direction is not succeeding. A company with a clear destination but no energy is not progressing either.

Sustainable growth requires alignment between where the company is going, how quickly it is moving, and whether its people and resources are working toward the same outcome.

Making Business Coaching More Accessible

One of Chip’s central concerns when creating Bizzics was the accessibility of experienced business guidance.

Traditional coaching can be expensive for smaller businesses. It can also be difficult for entrepreneurs to fit recurring coaching sessions into unpredictable schedules.

To address that challenge, Chip introduced Bizzics on Demand, an AI-supported business companion built around his book, writing, tools, and coaching philosophy.

The platform allows an entrepreneur to begin with a specific problem and work through questions such as:

  • What are you trying to accomplish?
  • Why is this outcome important?
  • What have you already attempted?
  • What options are you considering?
  • What is the first realistic action you can take?

Instead of attempting to solve every problem at once, the process helps the business owner establish a foothold and begin moving forward.

The objective is not to replace experienced human coaches. It is to make informed guidance more accessible when the entrepreneur needs it.

AI Is Changing How Entrepreneurs Ask for Help

AI gives people the freedom to ask the same question repeatedly, rephrase it, request clarification, and explore different options without feeling embarrassed.

That can be especially valuable for small-business owners who may not have a board, a large leadership team, or a group of experienced advisors readily available.

However, Chip emphasizes that the quality of the response depends heavily on the quality of the question.

“What should I do to grow?” is too broad to produce a meaningful strategy.

A more useful question might be:

  • Why has revenue from my highest-margin service declined?
  • Which expenses have increased faster than revenue?
  • Why are qualified employees leaving after six months?
  • Which customer segment is most profitable?
  • Which service creates the greatest operational strain?

Learning to ask better questions forces business owners to define what they are actually trying to solve.

AI can then provide rapid analysis, ideas, and structure. But the entrepreneur still needs the context, judgment, and experience required to evaluate the response.

AI Should Strengthen People, Not Replace Them

One of the most important themes in the conversation is that artificial intelligence should support human talent rather than automatically replace it.

AI can process information rapidly. It can analyze numbers, generate possibilities, organize research, and identify patterns that might otherwise take hours to uncover.

What it cannot fully understand is the daily context surrounding a company.

It does not automatically know the history of a customer relationship, the strengths of an employee, the emotional consequences of a decision, or the values the business is attempting to protect.

The stronger model combines human knowledge with artificial intelligence.

An employee who understands the customer, recognizes the problem, and knows which questions to ask can use AI to become more capable and efficient.

This is similar to the arrival of online banking. Digital banking did not completely eliminate the desire for human assistance. Customers wanted the convenience of technology and access to experienced people when the situation required it.

Hiring and Managing People Remain Major Growth Challenges

Chip initially expected users of Bizzics on Demand to focus primarily on strategy and competition.

Instead, many questions have focused on people:

  • How do I find strong employees?
  • How do I attract the right people?
  • How do I lead them effectively?
  • How do I create an environment where they want to stay?

Technical skill alone does not determine whether someone will strengthen a company.

Business owners are increasingly concerned about values, attitude, energy, adaptability, and whether a new employee will positively influence the existing team.

Chip strongly disagrees with the belief that employees should be treated as interchangeable or expendable.

Processes and systems are important, but a business should not be structured around hiring the lowest-cost person capable of following a manual.

Leaders rarely know the full potential of the people they hire.

When an employee is aligned with the company’s values, interested in its mission, and motivated to improve, the leader should invest in that person.

Training, encouragement, patience, and responsibility can help employees grow into capabilities that were not immediately visible when they were hired.

Agility Is the Foundation of Continued Momentum

Businesses once spoke frequently about making a dramatic pivot.

During the pandemic, restaurants added pickup services, retailers expanded e-commerce, and companies changed their operating models almost overnight.

Today, the more common requirement is not one major pivot. It is continuous adjustment.

Technology, customer behavior, regulations, competitors, and communication platforms are changing too quickly for a static business plan to remain reliable indefinitely.

Chip explains that entrepreneurs need a process for gently steering toward emerging opportunities.

Even rockets are continually making small course corrections. Being temporarily off course does not mean the mission has failed. It means the guidance system must remain active.

The same principle applies to business.

A leader should know the destination but remain willing to adjust the route.

The Risk of Becoming Too Comfortable

Entrepreneurs take enormous risks when starting a company.

They invest savings, time, energy, reputation, and sometimes home equity into creating something that may not succeed.

Once the company becomes stable, their appetite for risk often declines.

The business owner who was once willing to experiment may begin protecting the existing operation at all costs.

That caution is understandable, but it can become dangerous when the world is changing rapidly around the company.

Maintaining momentum does not require risking the entire business again.

It requires making controlled investments, testing ideas at a manageable scale, learning from the results, and adjusting accordingly.

A failed experiment does not necessarily represent wasted effort. It may reveal that the opportunity was only a few degrees away from the initial approach.

Use Your Values as a Decision-Making Compass

When entrepreneurs reach a fork in the road, they often compare opportunities primarily by cost and expected return.

Chip recommends beginning with a broader evaluation.

First, determine whether you have an objective understanding of the environment. Social media feeds, headlines, friends, and family can all create a distorted view of the market.

Look for credible industry data, examine what competitors are doing, and study what happened to businesses that made similar choices.

Next, determine whether the opportunity aligns with your values and intentions.

Ask:

  • Does this reflect who we are?
  • Does it support the purpose of the company?
  • Does it serve the people we originally wanted to help?
  • Do we understand the partner or vendor involved?
  • Does this opportunity feel meaningful, or is it merely a shiny object?

The financial analysis still matters, but it should occur after the opportunity has passed the alignment test.

Vet Every Vendor and Technology Partner

The growing availability of AI, data tools, lead-generation services, and marketing platforms creates enormous opportunity. It also creates risk.

A company may promise to identify website visitors, collect contact information, automate outbound calls, or deliver large numbers of leads.

Before adopting those tools, business owners must understand how the data is collected, whether consent has been obtained, and whether the technology complies with applicable privacy and communication laws.

Anna explains that companies can face serious consequences when marketing pixels, cookies, voice agents, or lead-generation tools are deployed without proper review.

The larger business lesson is simple: A vendor’s promise does not transfer the risk away from the business purchasing the service.

Business owners must thoroughly vet the people and platforms they allow into their operations.

A Plateau Can Be an Early Warning of Decline

From Chip’s experience in banking, several years of flat revenue were rarely interpreted as a sign of stability.

They were often viewed as an early prediction of decline.

A company on a plateau may be working intensely to preserve its top-line revenue. To retain customers, it begins cutting prices, granting concessions, and accepting lower-margin business.

Revenue appears stable, but profitability begins deteriorating underneath it.

The company eventually responds with reactionary expense reductions.

It cuts employees, marketing, training, innovation, and customer programs. Those cuts remove the very capabilities required to create future growth.

The plateau then becomes a downward spiral.

Return to Your Vision, Values, and Mission

When a company loses momentum, Chip recommends returning to the foundation.

Revisit the original vision, values, and mission.

Ask why the company was started and what problem it was created to solve.

Then examine what has changed:

  • Has the competitive environment changed?
  • Have customer expectations changed?
  • Have new products or technologies emerged?
  • Are former strengths still relevant?
  • Are current services aligned with the core mission?
  • Has the company added offerings it is not equipped to deliver profitably?

A traditional SWOT analysis and competitor review can help reveal where the company has drifted and where a new opportunity may exist.

Your Customers May Know Where Your Growth Is Hiding

Chip recommends conducting meaningful conversations with key customers rather than relying exclusively on ratings and short surveys.

A five-star review confirms satisfaction, but it does not necessarily reveal what the customer needs next.

Invite a small group of strong customers to lunch or conduct individual conversations. Explain that the business is evaluating its future and ask for direct feedback.

Questions might include:

  • What could we do differently?
  • What are you purchasing elsewhere that we could provide?
  • What is becoming more difficult in your business?
  • What would make working with us easier?
  • What is one problem you wish someone would solve?

Customers who already trust the company are often honored to be asked.

They may identify an unmet need, service opportunity, operational weakness, or emerging competitor that the company cannot see from inside its own walls.

Analyze the Business Behind the Revenue

AI can also help owners examine financial information more deeply.

Accounting software records what happened. AI-supported analysis may help the owner ask why it happened.

Business owners can examine:

  • Which services generate the strongest margins
  • Which products require disproportionate support
  • Which customer segments are most profitable
  • Which expenses are growing faster than revenue
  • Which offerings have drifted away from the company’s core expertise
  • Where discounts and concessions are reducing profitability

Growth does not always require adding more.

Sometimes momentum is restored by simplifying the business, removing unprofitable offerings, and concentrating resources on the areas where the company delivers the greatest value.

Storytelling Can Restore Energy

Chip’s most immediate recommendation for a business owner seeking momentum is to begin telling the company’s story again.

Revisit what the business has accomplished, the people it has helped, the problems it has solved, and the reason it exists.

That story can energize the owner, employees, customers, and community.

It can also create unexpected conversations. Someone may hear the story and suggest a partnership, service, customer group, or opportunity the owner had not considered.

This is not about inventing an exaggerated narrative.

It is about taking pride in the real work the company has done and communicating that work with clarity and enthusiasm.

The Momentum Advantage

Businesses that continue growing are not always the companies with the largest budgets, newest technology, or most aggressive expansion plans.

They are often the companies that remain alert.

They listen to customers, invest in people, protect margins, test ideas, review their assumptions, and adjust course before a plateau becomes a decline.

AI can help businesses analyze information and move faster, but technology alone does not create momentum.

Momentum is created when people use better information to make decisions that align with the company’s purpose.

That requires energy, direction, agility, and a willingness to keep moving.

Watch the Full Conversation

Watch Episode 124 of The Covert Code Podcast to hear Anna Covert and Chip Higgins discuss AI-supported coaching, employee development, business plateaus, customer relationships, financial analysis, strategic agility, and the practical steps entrepreneurs can take to regain momentum.

Learn more about Chip at ChipHiggins.com.

Explore business coaching and resources at Bizzics.

Learn about the AI-powered coaching companion discussed in the episode at Bizzics on Demand.

Discover more interviews and business insights from The Covert Code Podcast.

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The Momentum Advantage: Why Some Businesses Keep Growing While Others Stall

The Covert Code Podcast, Episode 124

Host: Anna Covert

Guest: Chip Higgins, Founder of Bizzics and Author of The Bizzics Way


Anna Covert [00:00:04]:

Aloha. My name is Anna Covert, and I am coming to you from my battleship here on the beautiful island of Oahu.

This week on The Covert Code, the topic is The Momentum Advantage: Why Some Businesses Keep Growing While Others Simply Stall.

My very special guest, who I am glad to welcome back for round two, is Chip Higgins, founder of Bizzics. He is a business coach, speaker, and author of The Bizzics Way.

Since his last appearance, he launched Bizzics on Demand, an AI-powered companion that gives entrepreneurs 24/7 access to the principles and strategies in his book.

Today, we are going to talk about practical ways to keep momentum rolling, how to overcome plateaus, and how to keep a business moving forward.

Chip, let us get the ball rolling. Pun intended.

Tell me about the vision behind the AI, how it is going, and what kind of feedback you are receiving.

Chip Higgins [00:01:06]:

First of all, thank you for having me on. I loved being on the show the first time. We had the best conversation, and I am thrilled to be here again.

Part of my value proposition, and one of the things I worried about when starting Bizzics, was the accessibility of coaching.

I wanted small-business owners to be able to find good resources and, more importantly, engage with intelligence and experience that could help them move forward.

I have done several things to make that more accessible. Writing the book was part of it.

It can still be a steep financial hill for many small-business owners to afford a coach. It can also be awkward to schedule coaching because of the time demands on a small-business owner.

They may wonder when they will talk to the coach, what they will discuss, and how frequently they should meet.

I have been in business for a long time, and I have followed AI closely. I kept hearing about people using AI for data and financially driven models.

I came across a company in Austin, Texas, that had developed a small language model for authors.

I began exploring it and thought it was a unique opportunity to make my book available for people to interact with at any time, 24/7, with unlimited use.

It creates a conversation people can have at any time of day.

It is based on my book, everything I have written, and the mindset I use when coaching.

The mindset I tried to train into the agent is focused on questions such as:

  • What are you working on?
  • Why is it important to you?
  • How will it make a difference?
  • What have you already tried?
  • What are you considering?
  • Do you need ideas?
  • Where do you want to begin?

The goal is to help people gain a foothold and start moving forward without feeling like they have to change the entire world overnight.

There are also resources that come after that, including tools, templates, guidance for leading meetings, running a company book club, developing SMART goals, and other practical support.

It is compact. People know where to find it and how to interact with it.

The conversation feels very human, and I think that is because it is based on my book and my voice.

It genuinely feels like talking to me.

I think people are reading less and less, and this gives them a way to experience the book wherever they want to begin.

There are many principles in the book, but someone does not necessarily need to read the entire book before having a useful session with the agent.

Anna Covert [00:04:41]:

That is really interesting.

We already know from websites that people are skimming more than ever.

If there is too much copy or something looks too complicated, people may not engage at all.

You want to captivate them, stop the scroll, and then they may read more.

I know there are analytics involved with these agents. Are you seeing any trends that surprised you?

What are business owners asking your AI that may be different from what they asked you in person?

Chip Higgins [00:04:59]:

The one thing that stands out is hiring and managing people.

I thought the questions would be more focused on strategy and where companies fit in the competitive landscape.

There has been some of that, but most of the discussion has focused on questions such as:

  • How do I find good people?
  • How do I attract them to the company?
  • How do I lead them effectively?
  • How do I create an environment where they want to stay?

Maybe that is a function of the advice already available.

Many people who work with business owners are fractional CFOs or financial professionals. They bring useful experience.

However, fewer people are easily identifiable as having experience in HR, workplace quality, and the work environment.

Hiring and managing people has been a very hot topic.

Anna Covert [00:06:03]:

That is interesting.

I have had other guests discuss the same thing, and I think there is a lot of fear right now.

Five or six years ago, people were often hired and fired as part of a regular cycle.

Now, with layoffs and increased uncertainty, people in positions of authority are more concerned about bringing the wrong energy into their companies.

It is no longer only about technical skill. It is about whether the person is truly right for the company.

Chip Higgins [00:06:38]:

That is absolutely showing up.

Anna Covert [00:06:40]:

Have you seen other major changes since the last time we spoke?

Things are happening so quickly.

One thing I appreciate about your book is that many of the principles are timeless because they are grounded in science.

My book focuses on digital advertising. The core principles remain the same, but many of the exact examples change as new platforms and choices emerge.

Have you noticed anything different in business in general since our last conversation?

Chip Higgins [00:07:27]:

I think the door has opened much more widely for AI applications in general.

When I launched the agent about a year ago, it was difficult to get people to engage with it.

There are aspects of AI that can be dangerous or harmful if they are left unmanaged, and those concerns should be acknowledged.

Overall, though, I see AI as a huge benefit.

I was surprised by how reluctant people were at first.

My wife reminded me that we were among the last people in our neighborhood to get cell phones, so I understand being cautious about an adoption curve.

Now, I see much more intentional use of AI tools to support businesses.

Bizzics on Demand is one version of that. It is a conversational strategy resource and a C-level voice that a business owner may need.

I have also seen people use AI to gain financial insights into their businesses.

QuickBooks gives you numbers, but it is not necessarily a reasoning source. It does not automatically match up the numbers and tell you the story of what is happening in your business.

I have seen more business owners use AI to help uncover that story.

I have also seen more use of AI in marketing.

People are becoming more trusting of using a platform to help them develop a message for their target audience when they do not know what to say.

That may sound threatening to marketers, but in another sense, it is opening conversations that many businesses ignored before.

People are becoming more confident about using AI for specific purposes.

Not everything in AI is simply ChatGPT. People are harnessing intelligence for specialized reasons.

Businesses need to understand where AI can create greater effectiveness or efficiency while adding to the human equation.

I do not want to replace humanity with AI.

Even though I have the agent, I still hold office hours every week because I do not want to lose touch with people.

I am grateful that AI gives people a level of accessibility I could never have provided without it.

Anna Covert [00:10:11]:

I think it is a tool that creates more opportunity.

It also helps people feel less afraid.

I can ask AI the same question in several ways, several times, without feeling embarrassed.

If I were talking directly to a person, I might feel uncomfortable if I did not understand something immediately.

That creates an opportunity.

Chip Higgins [00:10:45]:

Something you said made me think about the importance of questions.

People are learning that asking questions is an art, and it is a very powerful art form.

Some early users of Bizzics on Demand asked questions such as, “What do I need to do to grow?”

That is too broad.

Prompting intelligence requires a person to understand what they are looking for and what they are trying to solve.

That takes some energy.

However, the rapid response and completeness of the answer can make it worthwhile to spend ten minutes defining the real problem.

A business owner may know they want to grow, but they should ask what part of growth needs an answer right now.

Is it hiring? Finding the market? Improving operations? Increasing margins?

I think AI will ultimately cause people to develop a deeper understanding of what they need to know about their businesses.

They may have been operating on autopilot for a long time.

We should be able to stop and ask hard questions of ourselves.

Used in the right context, especially for small-business owners, the availability of this resource is incredible.

Anna Covert [00:12:35]:

I do not think this is bad for marketers.

I think it creates more parity.

People will not be able to compare businesses only by budget because one company could afford something another company could not.

The actual product and service will need to shine.

That does not mean there will not be agencies.

Businesses still need help creating a clear brand.

If they ask different AI tools to solve every problem and every result sounds different, they may lose a clear vision of who they are.

AI is an equalizer, but businesses still need consistency and strategy.

Chip Higgins [00:13:18]:

I agree.

The position you are taking is one of the most evolved applications I have seen.

A single-person business may eventually have access to an informed C-suite made up of specialized tools with tremendous intelligence.

Imagine having a seasoned board as a solopreneur.

That is essentially where we are heading.

Anna Covert [00:13:58]:

I have been experimenting with several tools.

I use Claude on my desktop, and I train it almost like an employee.

I explain why I created a document a certain way, who the audience is, and what the strategy is.

I keep it open all day.

Sometimes I screen share with clients while using it, and we solve a problem together in real time.

People are mesmerized by what we can do with AI.

I have also been experimenting with image-to-video tools.

You can take a still image and animate it in ways that look remarkably close to the original.

Chip Higgins [00:14:49]:

I would love to see that.

It has been a great learning frontier for me, and I have enjoyed it.

Anna Covert [00:14:57]:

What are some of the biggest mistakes entrepreneurs are making today that quietly slow their growth?

Chip Higgins [00:15:07]:

We have been discussing this indirectly.

Momentum requires a certain level of agility.

If you think about velocity in the momentum equation, you have direction, distance, and speed.

Those are the elements required for a vector.

Even rockets are off course much of the time.

They know where they are going, and they know how quickly they want to get there, but they constantly make small corrections.

Entrepreneurs need to be more agile and aware than ever.

AI should help increase awareness of what is happening.

We became accustomed to the idea of a major pivot during COVID. Businesses pivoted to pickup service, online sales, or other major changes.

What may be holding people back today is not the failure to make one dramatic pivot.

It is the failure to make gentle, continuous adjustments toward emerging opportunities.

These technologies are not completely predictable, but if a business remains on the sidelines and does not use them at all, it will be left behind.

Other companies may have several intelligent, well-trained agents supporting their work.

Entrepreneurs often take a huge initial risk when starting a company. Once they figure things out and become successful, their desire to take additional risks can diminish.

They begin to say, “I am not sure I want to take that risk. I will wait and see.”

We need to refresh the entrepreneurial spirit.

Businesses should try things at a level that will not destroy the company but will reveal whether a certain direction is worth pursuing.

The belief that a business plan worked once and can simply be executed forever will eventually cost someone the business.

That is not the world we live in.

Everything is fluid.

Business owners must remain flexible, agile, educated, and willing to use resources that help them improve.

The hidden danger is that a company may feel like it is doing fine while the world is changing quickly around it.

Every business needs a mechanism for rising to those changes and navigating toward the right destination.

Anna Covert [00:17:47]:

That is true.

We are part of a global economy, and AI is one more accelerating force.

When one AI gains access to an idea, that information spreads quickly.

Growth is also painful.

When children grow, they experience growing pains. Their knees hurt, their bones hurt, and suddenly their clothes do not fit.

We forget that growth continues to be uncomfortable as adults and business owners.

We are never truly finished.

AI can expose the areas where it is time to grow again.

Chip Higgins [00:18:34]:

It is important to consider the relative size of the risk.

When people first start a business, they make a huge leap.

They become emotionally invested. They may use savings, home equity, or other resources.

The risks required to maintain momentum are rarely of the same magnitude as the original startup risk.

You cannot compare every new experiment to starting over.

There will be some pain. You will make some bets that turn out to be wrong.

You learn from them.

Perhaps you were not exactly right, but a few degrees to the left would have worked.

Keep moving.

Entrepreneurs need to recapture that risk profile as a day-to-day discipline in a dynamic world.

Anna Covert [00:19:42]:

How do you personally navigate that?

Suppose I reach a fork in the road and see several possible opportunities.

Two of them may appear financially equal.

How do you choose the right direction?

Chip Higgins [00:20:04]:

I do not know anyone who has been right one hundred percent of the time.

If someone claims to be, that should probably make you cautious.

The first step is making sure you have a broad perspective at the fork in the road.

We all receive different information through social media, news feeds, and other sources.

You must ask whether you have objectively evaluated the environment in which you are making the decision.

Have you been influenced only by family members who tell you that you are doing great?

Have you tested yourself in the market and confronted the hard truths about where you stand?

You can become blinded without a broad perspective.

One thing I do with clients is provide a full, current industry report.

It may be thirty-five or forty pages long and include links to strong industry resources.

It is data-driven and not sales-oriented.

Get the broad perspective first.

The next step is determining how the choices align with your value system and intentions.

There are many shiny objects, and it can appear that everyone is doing something.

You are not everyone.

You must ask:

  • Is this right for me?
  • Does this align with the person I am?
  • Does this align with the values of my company?
  • Does it support the person or group I originally wanted to help?

You should work through those questions before you reach the economics of cost and expected return.

If someone tells you that spending five hundred dollars per month will produce a certain number of leads, do not evaluate only the price and promise.

Ask whether they understand your values, your market, and the people you are trying to reach.

There must be integrity in those partnerships.

You will not be right all the time, but you will be wrong more often than necessary if you are not truthful about who you are and what you want your company to become.

We often think we understand what is happening in the world when we are only seeing headlines and information designed to capture attention.

Step back and study the situation.

Understand the fork in the road, study what others have done, and look at what happened to the people who tried similar approaches.

You do not always need to be the first person on the bleeding edge.

Anna Covert [00:23:29]:

For me, I have learned to ask which opportunity I feel most passionate about.

When two choices appear equal, which one creates more energy?

That usually aligns with values and mission.

If an opportunity feels exciting and meaningful, you may have the energy required to keep pushing forward.

If it does not feel right, you may not be able to move it very far.

Chip Higgins [00:24:03]:

Checking in with yourself is important.

Sometimes we do not want to ask ourselves what we are actually doing. We want someone else to tell us what to do.

With so many choices available, people may believe they do not have the skill to determine what they want.

However, if you have built a business to that point, you should know your values and what you are trying to accomplish in the world.

Anna Covert [00:24:26]:

Another issue happening now involves privacy and compliance.

Several of our clients have received legal letters related to privacy laws.

One client in New York received an allegation involving the California Consumer Privacy Act because a pixel was allegedly firing before consent was recorded.

There was a misclassification, and we corrected it.

Business owners need to slow down and understand who they are working with.

A company may promise to place a pixel on a website and identify every visitor’s phone number and email address.

That may sound appealing until the business faces a significant per-violation penalty.

There are people actively looking for those violations.

Businesses need to be extremely careful when a promise sounds too good to be true.

Chip Higgins [00:25:37]:

I had a similar experience with someone who wanted to help Bizzics with content marketing.

We discussed creating courses and other materials.

After three conversations, the person disappeared.

I kept waiting for the proposal and received no response.

Eventually, I realized the entire thing may have been made up and the person may not have known what they were doing.

We live in a world with a great deal of fraud.

You have to vet every person thoroughly.

Anna Covert [00:26:24]:

If someone feels like their business has hit a plateau, what step can they take today to begin moving again?

Chip Higgins [00:26:33]:

In banking, we used to say that flat revenue over two or three years was essentially predicting decline.

It was often the first indicator that someone had lost their way.

Sometimes a plateau involves pride in what someone has built and resistance to changing it.

Sometimes it involves the energy required to get back onto a growth trajectory.

What I tell people is to return to the beginning.

Dust off the vision, values, and mission.

Ask why you started the business in the first place and what you were trying to accomplish.

Then examine what is different today.

  • What has changed in the competitive environment?
  • What has changed in product availability?
  • What has changed in specifications and capabilities?
  • What has changed in customer expectations?

Conduct a SWOT analysis and a competitor analysis.

Then identify a space where the company can create lift.

You may already have a critical mass of customers who like you, but perhaps you have not made small investments to explore the next frontier.

If you are on a plateau and have not conducted meaningful 360-degree conversations with key customers, that is one of the best places to begin.

There should be a constant cycle of contacting customers and asking what they think.

Ask where they are buying other things, what would be valuable, and what you could change that would help them today.

Many customers are honored to be asked.

I am a major supporter of customer panels.

Invite six to ten customers into your office, give them an excellent lunch, and tell them the truth.

Explain that the business feels flat and that you remain passionate about serving them.

Ask what you could do differently.

You may be surprised by what you learn.

Customers may be buying things elsewhere that you do not even realize they need.

There is very little downside.

They already like you and want to do business with you.

Technology may not always serve us well because we rely too much on star ratings and short surveys.

Five stars confirm that a customer is satisfied, but they do not necessarily tell you anything useful.

It is worth the cost of a great lunch to hear ten trusted customers explain what you are missing.

We cannot see everything from inside the company.

Anna Covert [00:29:52]:

That also connects to another tip.

Business owners can take their QuickBooks data and financial statements and ask AI some difficult questions.

There may be things they are not seeing.

Restaurants often simplify menus after financial challenges because a smaller menu can be more efficient.

California Pizza Kitchen, for example, had a much larger menu before restructuring and later reduced it.

I have also added products and services and later realized they were not aligned with why we started the business.

Customers may want something, but that does not mean we are the best company to provide it.

It may require another team member or additional support.

Business owners should examine whether each offering is truly good for the company and understand what it costs to deliver.

Chip Higgins [00:30:41]:

Yes. Please understand those costs.

If you are on a plateau, there is a strong chance your margins are being damaged.

You may be trying so hard to preserve top-line revenue that you begin cutting prices and making concessions.

You are trying to hold on.

Instead, you should be asking what value-added component could restore margin.

What could you offer that competitors do not provide?

What is complementary to what you already deliver?

What would be easier for the customer to purchase from you than to buy somewhere else?

Top-line revenue and margin are connected when a business is on a plateau.

Once margins begin shrinking, everything is at risk.

If revenue is also flat, the business eventually becomes forced into reactionary expense reductions.

It begins cutting employees and programs that keep the company close to customers.

That is where the downward spiral begins.

Businesses must stay fresh with customers.

My book focuses on momentum, including angular momentum.

A tornado has linear momentum because it moves across the land, but it also has tremendous energy spinning inside the system.

Businesses need that kind of constant movement with customers and reinvestment in the company.

Online reviews are useful, but five stars only tell you that someone is satisfied.

What information are you actually learning from the people buying your product?

Spend the time and money to stay close to them and understand their experience.

Anna Covert [00:33:34]:

That is more important than ever because people are becoming disconnected.

There is no replacement for spending time with people, whether in groups or one-on-one.

I used to have more local clients and more in-person meetings.

Now, Zoom makes remote work easier, but there is still no replacement for taking a client to lunch or having a drink together.

Chip Higgins [00:34:03]:

Absolutely.

Anna Covert [00:34:04]:

The more people like you, the more they want to do business with you.

That is simple math.

Chip Higgins [00:34:13]:

The wisdom is flowing out of you.

Anna Covert [00:34:16]:

What is one piece of widely accepted business advice that you completely disagree with?

Chip Higgins [00:34:48]:

I strongly disagree with the idea that people are expendable.

One of the best-selling small-business books of all time is The E-Myth Revisited by Michael Gerber.

The intention of the book was to help people think about making their businesses franchise-ready.

That means creating systems and processes that allow the business to operate without the owner.

However, there is also an idea embedded in that philosophy of hiring to the lowest common denominator and creating a manual that allows almost anyone to perform the work.

I do not view employment that way.

The capacity and talent of people are unknown to us.

We do not know what someone may be able to accomplish.

If leaders are patient, show people the way, inspire them, and motivate them within the context of the business, they may be amazed by what those people grow into.

Much of the conventional wisdom says that people do not want to work, that companies should cut quickly, and that an employee should be replaced as soon as a problem appears.

I disagree.

Leaders must be diligent about values alignment when hiring.

If someone is motivated by life, aligned with the company’s values, and interested in the change the business is trying to create, the company should invest in that person.

That is part of the mass in the momentum equation: making people stronger.

A business leader should value the opportunity to pour into people and help them improve.

Anna Covert [00:37:10]:

That is not where I expected you to go.

I thought you might discuss AI because some businesses believe AI will be cheaper than employees.

However, business owners should be prepared for the cost of AI to change.

When social media first became popular, it appeared to be free.

Today, organic posts often receive very little visibility unless a business pays to distribute them.

AI companies are also investing heavily and may eventually charge for individual tasks, lines of code, and higher levels of usage.

A company should be careful about changing its entire workforce strategy based on today’s pricing model.

Chip Higgins [00:38:01]:

These may be the golden days of AI pricing.

I also want to comment on AI replacing people.

AI offers rapid computing power and incredible intelligence.

However, it cannot fully understand the context of what happens in a business every day.

The beauty of people is that they have knowledge and the capacity to ask the right questions.

AI can then become a powerful tool in the background.

In banking during the late 1990s, many people believed online banking would eliminate the need for branches.

The reality was that customers wanted both.

That is likely what will happen with AI.

Businesses need people who are committed to the cause, understand the problem, stay close to customers, and are trying to innovate.

Connect those people with AI tools and allow them to bring stronger solutions forward.

If a company believes AI will become its entire workforce, I do not think that will work.

AI cannot fully understand the necessary context.

Anna Covert [00:39:16]:

There are also new risks involving AI voice agents.

Businesses may not be allowed to conduct AI-powered outbound calls without explicit customer consent, and there can be significant penalties.

Some call centers are reducing staff because they believe AI can take over, but they need to understand the legal and compliance risks.

Businesses should proceed carefully.

I use AI for many purposes, especially research.

It can be faster than searching through Google when I need to find specific information.

It is also useful for organizing data and completing structured work from an existing template.

It should be treated like another tool, similar to a calculator.

Chip Higgins [00:40:26]:

I am old enough to remember slide rules.

Anna Covert [00:40:42]:

What is one easy thing someone can do today to create more momentum in their business?

Chip Higgins [00:40:58]:

I am Irish by heritage, so I am a strong believer in storytelling.

When you revisit the vision, mission, and values of the company and feel that spark of energy, begin telling your story again.

It can be energizing to remember what you have accomplished and how many people you have helped.

Reconnect with the intention behind the change you are trying to create in the world.

Storytelling is a skill we will need even more in the future.

People need to be able to tell stories from their own experiences, infused with their own spirit.

Tell the story to employees, customers, and the larger community that may have lost track of what the business does.

Be proud of it.

You never know who may hear the story and say, “That is great. Have you tried this?”

New ideas may emerge simply because you told the story.

Have fun celebrating what you have already accomplished.

Tell the story to as many people as possible, and then take it directly to your customers.

Anna Covert [00:42:30]:

In the spirit of the Irish, you can go to the bar and tell your story.

Chip Higgins [00:42:33]:

That is where I practiced.

Stick to the facts, though. Do not start embellishing.

Anna Covert [00:42:46]:

What is next for you? What are you most excited about for 2026?

Chip Higgins [00:42:50]:

I am very excited about a partnership I am building with a regional bank.

It has required a great deal of work over a long period of time.

We are on the verge of a large bank including my book as part of an experience for its small-business clients.

The idea of small-business owners across eight or nine states gaining access to the book and its resources is an unreal opportunity.

I am extremely excited about it.

Anna Covert [00:43:27]:

I have chills thinking about that.

Chip Higgins [00:43:30]:

I think it is a good book, personally. I am proud of it.

Anna Covert [00:43:36]:

That is exciting, and we will be rooting for you.

How can people connect with you?

Chip Higgins [00:43:42]:

I am on LinkedIn, and people will see the book cover there.

My business website is Bizzics.com.

I also have a personal website at ChipHiggins.com.

The book is available through both places.

I love speaking about the book.

If someone is looking for a speaker for small-business owners, they can visit ChipHiggins.com and send me a message.

Those are the three best ways to connect: Bizzics.com, ChipHiggins.com, and LinkedIn.

I would love to engage with as many small-business owners as possible.

Anna Covert [00:44:17]:

Chip is also a Forbes Books author, so you can purchase his book through Barnes & Noble and many of the same places where you can find my book.

We will include all of the links.

If you have not watched our first episode together, please do.

Thank you so much for coming back on the show.

Chip Higgins [00:44:34]:

Thank you again.

I think this conversation was even better than the first one, which I loved.

Thank you for having me back. I really enjoyed it.

Anna Covert [00:44:41]:

Me too.

To all of my listeners, we recently celebrated 200,000 subscribers, and I am overwhelmed with gratitude.

It is because of you and your aloha.

Thank you for sharing this content.

If you have not yet subscribed, please do so, so I can continue bringing more great guests like Chip onto the show.

To celebrate this milestone, we will be inviting more of my favorite guests back for additional conversations.

I hope you enjoyed this episode and the future conversations to come.

I cannot wait to see you in the pixels next week. Aloha.


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Thanks for tuning in. See you in the pixels. Aloha.

Comments Off on Episode 124 – Chip Higgins

Episode 123 – Per Sjöfors

By |2026-08-02T09:04:16+00:00July 23rd, 2026|Author, Get Your Geek On, Podcasts|

Why Pricing Is Your Most Powerful Growth Strategy

Featuring Per Sjöfors, The Price Whisperer, on The Covert Code Podcast

Most businesses focus their growth efforts on generating more leads, increasing sales volume, improving marketing, or reducing operating costs.

However, they frequently overlook one of the fastest and most powerful ways to improve profitability: pricing.

In Episode 123 of The Covert Code Podcast, Anna Covert speaks with pricing expert Per Sjöfors about behavioral economics, pricing psychology, differentiation, discounting, customer expectations, and the strategies businesses can use to increase both revenue and profitability.

Meet Per Sjöfors, The Price Whisperer

Per Sjöfors is the founder of Sjöfors & Partners and the author of The Price Whisperer: A Holistic Approach to Pricing Power.

Before becoming a pricing consultant, Sjöfors served in several CEO roles in Europe and the United States. During that time, he experimented with different pricing strategies.

Some experiments produced dramatic revenue increases. Others failed completely.

The inconsistency led him to a larger question: Why did certain pricing changes work while others did not?

Sjöfors concluded that traditional pricing models were often too theoretical. Business leaders needed a more practical approach based on how real customers make purchasing decisions.

That realization led him to behavioral economics.

Pricing Is More Than a Financial Calculation

Many companies calculate prices by adding a standard profit margin to the cost of producing a product or delivering a service.

Others simply review competitor prices and attempt to remain slightly higher or lower.

Neither method fully accounts for customer psychology, perceived value, brand positioning, differentiation, or purchasing behavior.

According to Sjöfors, pricing should not be treated as a simple mathematical exercise. It should be treated as a strategic growth function.

When a company understands why customers buy, what they value, and what increases their willingness to pay, it can develop prices that improve sales volume, profitability, and customer satisfaction.

Sjöfors calls this the paradox of price.

The One Percent Pricing Challenge

One of the most striking lessons from the episode is the potential impact of a seemingly minor price increase.

Sjöfors explains that, for an average company, a one percent increase in price may lead to an approximately 11.3 percent increase in profit.

The exact result varies based on the company’s existing margins, costs, and financial structure. However, the larger lesson remains important.

A small improvement in pricing can have a disproportionately large effect on profitability.

Sjöfors calls this the one percent challenge. He asks business leaders whether they have ever been unable to change something in their business by only one percent.

The question forces executives to reconsider whether their current pricing is truly optimized or simply familiar.

For several small public companies Sjöfors examined, a one percent increase in price would have produced profitability increases ranging from approximately five percent to more than twenty percent.

How Expectation Bias Influences Purchasing Decisions

One of the most important concepts discussed in the episode is expectation bias.

Expectation bias occurs when the price of a product influences what a customer expects from it.

When a price appears unusually low, customers may question the quality of the product or service.

They may wonder:

  • Why is this so inexpensive?
  • Is something wrong with it?
  • Will it provide the results I need?
  • Is this company experienced or trustworthy?

A low price does not always increase demand. In some situations, it can reduce demand by creating an expectation of inferior quality.

A higher price can create the opposite expectation. Customers may associate a premium price with superior quality, exclusivity, expertise, or better results.

This does not mean that companies should arbitrarily raise prices. It means that pricing communicates information, whether the business intends it to or not.

Purchasing Decisions Are Emotional

Sjöfors explains that purchasing decisions are largely emotional.

Consumers may believe they make purely rational decisions, but emotional responses frequently occur first. The rational mind then develops reasons to justify the decision.

This is why value perception, trust, presentation, branding, and expectations play such important roles in pricing.

A customer is not merely evaluating a number. The customer is evaluating what that number implies about the product, the company, the experience, and the expected outcome.

For marketers and business leaders, this means the pricing conversation cannot be separated from the overall customer experience.

As Anna frequently discusses through her work in digital marketing and business strategy, every element of the customer journey shapes perception. Pricing is part of that journey.

The Magnetic Middle

When companies offer three choices, customers frequently gravitate toward the middle option.

This is often described as the magnetic middle.

Customers may not want the cheapest option because it appears incomplete or inferior. They may also hesitate to select the most expensive option.

The middle option feels balanced and safe.

Businesses can use this behavior by creating a good, better, and best pricing structure in which the middle package is designed to be the most attractive choice.

Sjöfors recommends carefully managing the distance between the three prices. The middle option should make the premium option feel attainable while still appearing meaningfully better than the lowest-priced choice.

The goal is not to manipulate customers. The goal is to present choices in a way that makes differences in value easier to understand.

Price Anchoring Changes What Appears Affordable

Price anchoring occurs when the first price a customer sees becomes the reference point for every price that follows.

Sjöfors uses the example of a luxury retail store. After looking at four-thousand-dollar handbags, a six-hundred-dollar wallet may suddenly seem inexpensive.

The wallet did not become cheaper. The customer’s reference point changed.

Apple used a similar strategy when it introduced an Apple Watch priced at approximately $17,000 alongside a much less expensive version.

The extremely expensive watch generated attention, but it also made the standard version appear more affordable by comparison.

This strategy can be used in:

  • Website pricing tables
  • Business proposals
  • Restaurant menus
  • Service packages
  • Software subscriptions
  • Retail merchandising

Sjöfors recommends presenting the highest-priced option first. In many Western markets, customers read from left to right and top to bottom. The first price they encounter becomes the anchor.

Instead of presenting good, better, and best, companies may benefit from presenting best, better, and good.

Communicate Value Before Revealing the Price

Another major mistake occurs when companies display the price before explaining the value.

When a customer sees a price first, that number can dominate the entire purchasing decision.

The customer may never fully consider:

  • The problem being solved
  • The expected outcome
  • The company’s expertise
  • The quality of the service
  • The included support
  • The risk being reduced
  • The long-term financial value

This is especially important in business-to-business sales.

Sjöfors recommends presenting proposals rather than simply emailing them.

When a proposal is sent without a presentation, the buyer may immediately turn to the pricing page. The seller then loses the opportunity to explain the strategy, value, differentiation, and results behind the investment.

The price should be revealed in the context of value.

Differentiation Creates Pricing Power

Pricing power is the ability to increase prices without experiencing a corresponding loss in sales volume.

According to Sjöfors, meaningful differentiation is one of the primary drivers of pricing power.

When a company appears interchangeable with every competitor, customers naturally focus on price.

When a company offers something distinct and valuable, customers have more reasons to choose it beyond cost.

Differentiation does not always require inventing an entirely new product.

A company selling a physical product can add services. A service provider can add tools, resources, products, training, guarantees, or support.

In the episode, Sjöfors discusses Hilti, a professional tool company that differentiates itself through services such as fleet management, calibration, certification, and customer support.

The tools are important, but the ecosystem surrounding them helps justify the premium price.

Even Commodities Can Be Differentiated

Businesses sometimes assume they cannot differentiate because they sell a commodity.

Sjöfors provides several examples that challenge that belief.

One company sold truck tires. Tires can appear highly interchangeable, but the company also offered rapid roadside service. When a commercial driver experienced a tire problem, assistance could arrive quickly.

That service created value beyond the tire itself.

Another company rented steel plates used to cover road trenches.

A steel plate may appear to be the ultimate commodity. However, this company sent two people with each delivery truck. One person drove while the second person directed the placement of the plates.

Because the plates were extremely heavy, accurate placement saved customers time, labor, frustration, and risk.

The company also provided safety training, which helped position it as an industry authority.

According to Sjöfors, the company achieved a dominant market share while charging approximately twenty-five percent more than competitors.

The lesson is clear: Even when the underlying product is similar, the customer experience does not have to be.

Measure What Customers Value

Businesses often rely on intuition when developing marketing messages.

They promote the qualities they personally find important rather than the outcomes customers value most.

Sjöfors shares the example of a Swedish takeaway coffee chain that emphasized organic and sustainably grown coffee.

Research revealed that a different message was significantly more compelling: The coffee tasted better than the coffee customers made at home.

That message focused on the immediate customer benefit.

After changing the positioning, the company doubled sales volume without changing the underlying product.

The lesson is not that sustainability lacks value. The lesson is that companies must identify which value proposition most strongly influences the purchasing decision at the moment it occurs.

Structured willingness-to-pay research can help businesses determine:

  • What customers are willing to pay
  • Which features increase willingness to pay
  • Which messages increase purchase intent
  • Which customer segments perceive the most value
  • Which payment models reduce friction
  • Which differentiators increase satisfaction

Reduce Purchasing Risk During Uncertain Times

Economic uncertainty does not necessarily stop people from purchasing. It can, however, extend the amount of time they need to make a decision.

During uncertain periods, businesses should focus on reducing sales friction and perceived risk.

Strategies may include:

  • Clear guarantees
  • Better warranties
  • Free trials
  • Try-before-you-buy programs
  • Flexible payment plans
  • Responsive customer service
  • Easy returns
  • Transparent cancellation policies

Fear of making the wrong choice can be more influential than the expected benefit of making the right one.

Reducing that fear can increase conversion without reducing the price.

Customer-Friendly Subscriptions Build Trust

Subscriptions provide companies with predictable recurring revenue, which can be attractive to executives and investors.

However, a subscription strategy must also serve the customer.

When companies make subscriptions difficult to pause or cancel, they may generate short-term revenue while damaging long-term trust.

Anna explains that consumers should be able to withdraw their consent or change their communication preferences as easily as they provided them.

This applies to subscriptions, email marketing, text messaging, phone calls, and other customer relationships.

A customer-friendly system may ultimately improve retention because people feel comfortable subscribing when they know they remain in control.

The Hidden Cost of Discounting

Discounting is one of the most misunderstood strategies in business.

A five percent discount sounds minor to a customer. It may not be minor to the company.

Sjöfors explains that, for an average business, a five percent discount may eliminate approximately fifty-seven percent of profit.

The company may then need to more than double sales volume to produce the same total margin.

Most discounts do not generate that level of increased demand.

Frequent discounting can also train customers to wait.

When buyers know that a company discounts at the end of every month, quarter, or year, they delay purchasing until the discount appears.

The company has effectively taught the market not to pay full price.

Discounting should be intentional, limited, and tied to a larger strategic objective.

Use Bundling Instead of Reducing the Core Price

Bundling can provide customers with additional value without directly reducing the perceived value of the primary product.

Instead of offering ten percent off, a business might include:

  • An additional product
  • A consultation
  • Training
  • Priority support
  • Extended service
  • Free delivery
  • A complementary accessory

The additional item may have a relatively low delivery cost while carrying meaningful perceived value for the customer.

This protects the core price while still creating urgency and incentive.

Pricing Should Be a Company-Wide Strategy

Pricing does not exist in isolation.

It is affected by marketing, sales, brand positioning, product design, customer experience, service, payment options, guarantees, and communication.

A pricing test that ignores these variables may produce incomplete or misleading results.

The strongest pricing strategies examine the complete customer decision.

Business leaders should ask:

  • What outcome does the customer truly value?
  • What creates trust?
  • What creates hesitation?
  • What makes the company meaningfully different?
  • What price creates the appropriate expectation?
  • What options make the decision easier?
  • What can reduce risk without reducing price?

These questions connect pricing with the larger growth strategy.

The Most Important Takeaway

Many companies attempt to grow by selling more while continuing to underprice what they already sell.

They spend more on advertising, hire more salespeople, offer additional discounts, and increase production without first determining whether their prices accurately reflect customer value.

Pricing deserves the same level of research, strategy, and attention as marketing and sales.

A small improvement can create a meaningful increase in profitability. A poorly designed discount can erase that profitability just as quickly.

The businesses with the strongest pricing power are not necessarily the cheapest. They are the businesses that understand their customers, communicate value clearly, reduce risk, and create meaningful differentiation.

Watch the Full Episode

Watch Episode 123 of The Covert Code Podcast to hear Anna Covert and Per Sjöfors discuss pricing psychology, behavioral economics, discounting, customer satisfaction, and the strategies companies can use to turn pricing into a powerful engine for growth.

Learn more about The Covert Code Podcast and explore additional conversations with entrepreneurs, authors, executives, and business leaders.

Learn more about Per Sjöfors and his work through Sjöfors & Partners.

Discover The Price Whisperer: A Holistic Approach to Pricing Power through The Price Whisperer book page.

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Why Pricing Is Your Most Powerful Growth Strategy with Per Sjöfors

The Covert Code Podcast, Episode 123

Host: Anna Covert

Guest: Per Sjöfors, The Price Whisperer


Anna Covert [00:00:04]:

Aloha. My name is Anna Covert, and I am coming to you from the beautiful island of Oahu.

This week on The Covert Code, the topic is why pricing is the most powerful growth strategy.

My very special guest is Per Sjöfors, founder of Sjöfors & Partners. He is known as The Price Whisperer and has a bestselling book, The Price Whisperer: A Holistic Approach to Pricing Power.

He is a Forbes Business Council thought leader and a member of the C-Suite Hero Club. He has also been recognized by Inc. Magazine as one of the top ten most visionary leaders of our time and by Thinkers360 as a top global thought leader in sales.

He knows his stuff, and today we will uncover why pricing is one of the most overlooked and powerful growth strategies in business.

Tack så mycket, which means thank you in Swedish, to Per for being my guest today.

Per Sjöfors [00:01:05]:

Thank you. It is a pleasure to be on the show. It is a little unusual that we both have this Swedish heritage.

Anna Covert [00:01:16]:

We will jump right into it. Give me the CliffsNotes version of your very interesting story. What is your background, and how did you get to where you are now?

Per Sjöfors [00:01:31]:

The story of why I got into pricing began when I had the opportunity to run a couple of companies in Europe, one in Switzerland and one in the United Kingdom. That was before I came to the United States.

I came here to found and develop a business unit for a fairly large public company. After that, I had another four CEO positions.

In all of these companies, we conducted experiments with pricing because it was an area that interested me. Some of those experiments were very successful. The following quarter, revenues might increase by 25 or 30 percent. Other experiments were complete disasters.

What I learned about pricing in business school was, first, very limited. Second, it was too academic and theoretical. It was not something you could practically use as a business leader.

When I decided to set out on my own, I took that interest in pricing and asked myself what I would have needed as the CEO of those companies to make pricing an engine for growth.

What was I missing? Why could we not determine why some pricing experiments worked while others failed?

What I eventually concluded was that, to use pricing as a growth lever, you must leverage behavioral science, particularly the subset of behavioral science known as behavioral economics.

Several Nobel Prize winners have developed a deep understanding of how buyers make purchasing decisions. When you understand how people make those decisions, you can influence them.

When you influence purchasing decisions in the right way, using behavioral science, you can increase sales volume, increase prices, and increase customer satisfaction at the same time.

That is the paradox of price.

Most companies do not approach pricing this way. They say, “My cost is X, and the standard profit margin in my industry is Y, so that becomes my price.” Alternatively, they look at a competitor that did the same thing.

Anna Covert [00:04:45]:

We see that all the time. Coke and Pepsi are the classic business school example. Every other week, one of them is on sale.

That brings the entire industry down.

Per Sjöfors [00:05:02]:

Definitely.

For an average company, although no company is truly average, a one percent increase in price leads to an approximately 11.3 percent increase in profit.

I jokingly call this the one percent challenge.

I ask the CEOs I speak with, “Have you ever failed to change something by one percent?”

Anna Covert [00:05:45]:

That seems so nominal.

Per Sjöfors [00:05:49]:

Exactly.

To entertain myself, I went online and selected four relatively small public companies so I could access their financial information.

I calculated what a one percent price increase would do for each company. One would experience a five percent increase in profitability. One would experience a sixteen percent increase. Two would experience approximately a twenty-one percent increase in profitability.

Anna Covert [00:06:34]:

Is that based on the average sales price of the product to the consumer? Does it matter whether it is a large-ticket item?

Per Sjöfors [00:06:42]:

It is based on the resulting EBITDA and profit margin.

This is a lever that many companies do not understand.

They also do not understand the paradox of price. As human beings, we are imperfect and malleable. When you know how to influence a purchasing decision, you can achieve higher prices, higher sales volume, and higher customer satisfaction at the same time.

Anna Covert [00:07:21]:

Let us dive into that. What is one behavioral science principle we can discuss?

Per Sjöfors [00:07:29]:

I will explain two of the most important principles.

The first is expectation bias.

When we are presented with a price, that price itself creates an expectation about the quality and benefit of the product or service we are considering.

When the price is too low, we might say, “I want to buy this, but at this price, it probably will not be good enough.”

Anna Covert [00:08:14]:

Why is it so cheap?

Per Sjöfors [00:08:18]:

Exactly. Why is it so cheap?

I explain this to CEOs, and then they return to their companies and reduce prices by another fifteen percent.

One side of expectation bias is that when a price is too low, we assume the product is not very good. When the price is high, we tend to assume it is good.

A university study in Chicago placed participants in functional MRI machines and gave them wine. Participants were presented with a six-dollar wine and a one-hundred-dollar wine.

When researchers gave them the inexpensive wine but told them it was expensive, the pleasure centers in their brains lit up. When they gave them the inexpensive wine and said it was cheap, the pleasure centers did not respond in the same way.

The same expectation applied to the expensive wine. The participants’ perceived enjoyment was influenced by the price they believed they were paying.

Purchasing decisions are emotional.

Because we are supposed to be rational beings, we use our prefrontal cortex to add rational explanations to an emotional decision already made by the limbic system.

Sellers can leverage this in ways that are good for both the seller and the buyer.

Anna Covert [00:10:34]:

It reminds me of another one of my favorite behavioral science strategies, the magnetic middle.

When you have three options, one higher, one lower, and one in the middle, most people gravitate toward the middle. They do not want the most expensive or the cheapest option.

The middle should be the product you most want people to buy, and the other options should be priced so that the middle becomes their natural choice.

Per Sjöfors [00:11:01]:

I can tell you more about that.

If you have a good, better, and best structure, the middle option should be approximately two-thirds of the distance between the cheapest and most expensive options.

That structure means very few people purchase the cheapest option, while quite a few say, “For just a little more, I can purchase the most expensive one.”

This connects to another important principle in behavioral science, the anchoring effect.

Consider this example: If you have been in a Prada store looking at four-thousand-dollar handbags, a six-hundred-dollar wallet near the checkout appears to be a bargain.

The four-thousand-dollar price becomes the anchor in your mind, making six hundred dollars seem inexpensive by comparison.

One of the most successful or extreme examples I have seen occurred when Apple introduced the Apple Watch.

Apple had a $349 watch that it wanted to sell in volume, but it also offered a $17,000 version. The primary difference was that the more expensive watch had a gold case.

Every journalist covering the product launch wrote about the audacity of Apple selling similar electronics for either $349 or $17,000.

The point was not necessarily to sell a large number of $17,000 watches. The point was to make the $349 watch appear more affordable.

That is price anchoring.

If you have good, better, and best options, the anchor should be the most expensive option. Since people in Western markets generally read from top to bottom and left to right, the most expensive option should be the first price they see.

It should be presented as best, better, and good, rather than good, better, and best.

You can see this strategy on some websites.

For example, a platform might present a premium service for approximately $300 and then show a lower option for around $15. The premium option may not be intended to sell in large quantities. Its role may be to drive significant sales of the lower-priced service.

Anna Covert [00:14:40]:

That is a great tip.

Per Sjöfors [00:14:43]:

This applies to almost everything.

If you sell business-to-business through proposals, you should also have good, better, and best options. Those options should be presented in reverse order so the most expensive option is the first price the potential customer sees.

Likewise, a restaurant can place an extremely expensive special in the upper-left area of the menu. That makes everything else appear more affordable.

Anna Covert [00:15:27]:

You choose that location because it is one of the first things people see.

I now realize that in many high-end restaurants, the prix fixe menu, which is often the most expensive option, is presented first. The à la carte options appear afterward.

Per Sjöfors [00:16:19]:

Exactly.

Another common mistake occurs when businesses present a price before they communicate value.

Whenever you present a price, you must ensure the buyer understands the value before seeing that price.

Many consumer websites put the price at the top and the value description underneath it.

That is backward.

It encourages people to make decisions primarily based on price because they may never read the value description.

Anna Covert [00:17:23]:

That is important to consider with clothing and other products. On an overview page, perhaps you should not show only the product title and price. You may want the customer to click into the product, understand it, and then see the price.

Per Sjöfors [00:17:39]:

Definitely.

When selling business-to-business through proposals, you should present the proposal. You should never simply send it.

What happens when someone receives a proposal? They often immediately turn to the last page and ask, “Is this price reasonable?”

The entire point of developing the proposal is to explain your uniqueness, features, benefits, and value. When the buyer jumps directly to the price, their decision becomes driven by that number rather than the value you created.

Anna Covert [00:18:28]:

The price sets their expectation.

We have discussed expectation bias, anchoring, and the magnetic middle. What else is critical?

Per Sjöfors [00:18:47]:

A high price can create an expectation of value, quality, and exclusivity.

For a technical example, I have spent some time around the high-end audio industry.

You can buy a small USB cable online for approximately five dollars. You can also purchase an audiophile-grade cable for three thousand dollars.

There may be very little technical difference in the digital signal. However, someone who pays three thousand dollars for a three-foot USB cable may genuinely believe they hear a difference because they expect one.

As a result, they may be happy and satisfied customers.

That is another example of the paradox of price. You can increase price, customer satisfaction, and sales volume at the same time, but you must understand what matters to the customer.

You cannot rely only on directly asking customers because customers do not always accurately describe what drives their decisions.

Anna Covert [00:20:32]:

Absolutely.

Per Sjöfors [00:20:35]:

I speak with CEOs who agree that customers do not always tell the full truth. Then, in the next sentence, they say, “We talk to our customers all the time,” and they believe everything those customers say.

Another critically important factor in pricing is differentiation.

Differentiation is what gives companies pricing power.

Pricing power is a term Warren Buffett has used to describe a company’s ability to increase prices without losing sales volume.

Anna Covert [00:22:01]:

That connects to the elasticity of demand.

Per Sjöfors [00:22:04]:

Yes, although the straight-line demand curves taught in many economics classes do not accurately reflect reality.

We have already established that when a price is too low, sales volume can decrease because the low price creates an expectation of inferior quality or benefit.

Traditional straight-line demand curves assume that as the price falls, sales volume continually increases. That does not always happen.

Elasticity also changes at different price points.

There are psychological price points where a small pricing change can create a significant change in sales volume. Between those price points, demand may remain relatively flat.

I call these psychological thresholds price walls.

Suppose one price wall is at one hundred dollars and the next price wall is at one hundred and fifty dollars. If demand is relatively stable between those points, you would want to price as close to one hundred and fifty dollars as possible without crossing the next wall.

Anna Covert [00:24:37]:

That makes sense.

Per Sjöfors [00:24:46]:

We conducted work for a coffee chain in Sweden that sold takeaway coffee.

The company promoted its organic and sustainably grown coffee. That was its primary marketing message.

We found that changing the message to “This coffee tastes better than the coffee I make at home” doubled sales volume.

By moving away from a message chosen through intuition and instead measuring what increased willingness to buy and willingness to pay, the chain doubled in size.

From the company’s perspective, that message was counterintuitive.

From the customer’s perspective, however, coffee that tastes better than what they can make themselves is extremely valuable.

At the moment someone wants coffee, they may not care as much about whether it is organic. They care that it tastes better than the coffee they could make at home.

That can be measured.

This is not merely testing. It is measurement.

Online willingness-to-pay studies can measure what people are willing to pay, what motivates them to pay more, and what increases satisfaction.

Anna Covert [00:26:49]:

Returning to pricing power, how can listeners apply this? How can they determine whether they have pricing power?

Per Sjöfors [00:27:17]:

You cannot know without conducting the proper measurements.

If you test price alone, you are testing pricing in a vacuum.

Everything a company does affects customers’ willingness to buy and willingness to pay. That includes marketing, customer targeting, product variations, sales channels, payment options, and messaging.

Suppose you wanted to test six price points, three marketing channels, six marketing messages, three product variations, four payment structures, and three sales channels.

You could quickly end up with tens of thousands of possible combinations. You cannot realistically test every combination in the marketplace.

However, you can measure those variables through structured research in a couple of weeks.

In the coffee example, the company differentiated itself through marketing. It did not change the product or the location. It changed the message and doubled sales volume.

Anna Covert [00:29:01]:

They connected with what the customer expected to receive and what that outcome was worth.

Another challenge I frequently see across different industries is that companies do not fully understand what it costs to produce and deliver their product throughout the entire chain.

They do not account for contingencies, supply changes, or sudden shifts in demand.

During COVID, for example, the demand for toilet paper suddenly increased. Companies throughout the supply chain increased production, but by the time additional products reached the market, that unusual demand had disappeared.

Do you discuss how companies can monitor global supply and the factors that affect their ability to price correctly?

Per Sjöfors [00:30:11]:

That is not the primary focus of my book.

The book focuses on understanding customers and influencing their willingness to pay and willingness to buy.

We are living in a turbulent world. Tariffs change, energy markets shift, and people debate whether a recession or market decline is coming.

During turbulent periods, people do not necessarily stop purchasing, but their decisions take longer.

Anna Covert [00:31:20]:

That makes sense.

Per Sjöfors [00:31:21]:

Companies can respond by reducing sales friction.

According to behavioral economics, fear of making the wrong purchasing decision can be significantly more influential than the expected benefit of making the right one.

Anna Covert [00:32:01]:

That connects to loss aversion.

Per Sjöfors [00:32:03]:

Absolutely.

During turbulent periods, companies must consider how they can limit risk or the perception of risk.

That might include better warranties, trial periods, payment plans, improved customer service, guarantees, or free trials.

Not every company offers these protections.

Anna Covert [00:32:36]:

Some companies do the exact opposite. They make products difficult to return.

Everything now seems to have a subscribe-and-save feature. That can be useful, but some companies make subscriptions very difficult to cancel.

I believe that is a mistake.

A customer may simply want to pause a subscription or cancel before another charge. Making the process difficult can make that customer unwilling to purchase again.

Per Sjöfors [00:33:30]:

Many companies move toward subscriptions because predictable recurring revenue can increase shareholder value.

Investors generally appreciate subscription businesses because the revenue is predictable.

Anna Covert [00:33:48]:

Subscriptions can also be good for the customer when they are easy to control.

I like using Amazon subscriptions because I can easily pause, modify, or cancel them. I may want the discount and convenience, but if I am traveling for a month, I do not want more products arriving and being wasted.

I am a strong proponent of privacy and consumer protection. It should be as easy for people to withdraw their interest as it was for them to provide it.

If someone no longer wants texts, emails, or calls, or wants to change their preferences, companies should not make that difficult.

Per Sjöfors [00:34:43]:

For all its faults, Amazon does place the customer at the center.

It tries to make purchasing, returning products, and canceling subscriptions as easy as possible.

That intense customer focus helped Amazon become what it is today. It was not even the first company in the space, but it now dominates online sales.

Anna Covert [00:35:24]:

Let us talk about the illusion of Amazon Prime Day and discounting.

Many companies do not understand the power of discounts or how frequent discounting trains customers to value products less.

If a business runs an offer every week, customers learn not to purchase at full price. They know another discount is coming.

During events such as Prime Day, prices may be adjusted beforehand so that the later discount appears larger. There is an entire orchestration occurring behind the scenes.

What are your thoughts on discounting? When should companies use it, and when should they avoid it?

Per Sjöfors [00:36:16]:

When I give presentations to CEOs, I sometimes ask whether they know that prices often rise before Black Friday so they can later appear to fall.

Many people are surprised.

Let us return to the one percent price increase.

If a one percent increase can create a substantial increase in profitability, consider what a five percent discount can do.

For an average company, a five percent discount can eliminate approximately fifty-seven percent of profit.

To generate the same total margin after that discount, the company may need to increase sales volume by approximately 120 percent.

Is a five percent discount likely to double sales? Probably not.

Discounting should be used strategically, such as encouraging customers to move toward a more expensive product. It should not simply be applied across the board.

Companies should also avoid predictable end-of-quarter or end-of-year discounting.

In my previous career, I spoke with customers in April who told me, “I am going to buy from you, but I will wait until the final week of June because you will give me a better price.”

Buyers learn company discounting patterns and wait.

The company then leaves money on the table because of a purchasing delay it created itself.

Discounting can be a powerful tool, but it must be used with great care.

Anna Covert [00:39:26]:

Scarcity matters too. A promotion should feel meaningful and legitimate.

Many companies offer fifteen percent off a first order. Customers then begin to expect ten or fifteen percent off every order.

If they do not receive it, they may unsubscribe and resubscribe or use a different email address.

That creates additional costs for email marketing, text messaging, call centers, and data storage.

Per Sjöfors [00:40:19]:

There are alternatives to discounting, including bundling.

When you bundle products, you can add value for the customer.

You may take a small margin reduction, but it is often much smaller than the loss caused by directly discounting the primary product.

The cost of providing two complementary products can be significantly lower than the revenue loss created by a broad discount.

Many businesses do not understand how much additional volume they need to compensate for even a small discount.

Anna Covert [00:41:12]:

When you discuss the one percent challenge, are you recommending an increase of one percent each year or each quarter?

Per Sjöfors [00:41:21]:

The one percent challenge is primarily intended to wake people up to the power of pricing.

If a one percent increase makes such a significant difference in profitability, why not investigate whether the business could increase prices by three or five percent?

Anna Covert [00:41:54]:

That reminds me of a case study from business school about couponing.

Suppose I have one million bags of chips in a warehouse. I know what I paid for them and what my margin is. I distribute a buy-one-get-one coupon in magazines.

The promotion may be profitable while I am clearing existing inventory. However, once that inventory is gone, I must purchase more products while coupons are still circulating and being redeemed.

At that point, every redemption may begin reducing profitability.

Businesses frequently overlook the full financial implications.

What other pricing recommendations would you give business owners?

Per Sjöfors [00:43:01]:

There are many additional recommendations in my book.

Fundamentally, it returns to differentiation.

Differentiation gives companies pricing power.

If you sell something that is a commodity or appears to be one, you can differentiate a physical product by adding services. If you sell a service, you can add products.

One example I use is Hilti, a company that makes professional hand tools.

Hilti is based in Liechtenstein, a small country between Switzerland and Austria. It is not a low-cost place to operate.

Hilti makes very good tools, but the company also offers a wide range of services, including fleet management, calibration, certifications, and other forms of support.

Those services help justify higher prices compared with lower-cost tools that may include little or no customer support.

Hilti differentiates itself through quality and services that competitors may not offer.

Understanding meaningful differentiation is extremely important.

We also worked with a company that sold truck tires, which can appear to be a commodity.

The company operated service vehicles along major roads. When a truck driver had a flat tire or another tire problem, a service vehicle could often arrive within approximately fifteen minutes.

The company made money from that service, but the service also differentiated its tire business.

Another company rented steel road plates used to cover trenches.

Steel plates are highly commoditized. However, this company differentiated itself by sending two people in each delivery truck.

One person drove. The other stood outside and directed the driver to place the heavy steel plates in the exact location where the customer needed them.

Competitors sent one driver who might leave the plates wherever that person thought was appropriate.

Because the plates are extremely heavy, placing them incorrectly can create a significant problem.

The company also provided safety training for workers digging trenches, positioning itself as a thought leader in the industry.

As a result, the company achieved approximately sixty-five to seventy percent market share while charging prices approximately twenty-five percent higher than competitors.

That is the power of differentiation.

Anna Covert [00:48:09]:

That is really interesting. Where can people find your book?

Per Sjöfors [00:48:12]:

Because I have an unusual Swedish name, the easiest way is to search for “The Price Whisperer.”

I write frequently, and I also have a YouTube channel and other resources available online.

Anna Covert [00:48:43]:

We will have to do a book swap. I will send you mine, and you can send me yours.

Per Sjöfors [00:48:46]:

Absolutely.

I love talking about pricing. With your marketing background, you understand this better than most.

Anna Covert [00:49:01]:

Thank you.

I will include links to Per’s information in the episode description.

Thank you to everyone listening. If you have not already done so, please subscribe to this channel.

We recently reached 200,000 subscribers, and it is because of you and your support. Thank you for sharing this content with your friends and family so I can continue attracting brilliant guests like Per to share their wisdom with us.

I will see you next week in the pixels. Aloha.

Per Sjöfors:

Thank you so much, Anna. It was a pleasure.


I hope you enjoyed this episode of The Covert Code Podcast.

If you are enjoying the insights shared here, follow us on your favorite podcast platform and leave a review. Your support helps us reach more digital innovators like you.

Share this episode with your friends and colleagues on social media and help spread the word.

If you work in solar or are curious about where clean energy is headed, follow Anna Covert’s other podcast, The Solar Coaster. The show explores the real stories, trends, and challenges shaping the solar industry through bold conversations and practical takeaways.

Thanks for tuning in. See you in the pixels. Aloha.

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Episode 122 – Gideon Enok

By |2026-07-16T04:26:31+00:00July 16th, 2026|Author, Get Your Geek On, Podcasts|

The Pilgrim Spirit: What Happens When You Say Yes to the Journey

What would happen if you stopped waiting for the “right time” and simply took the first step?

On this episode of The Covert Code Podcast, I sat down with author, modern-day pilgrim, and global traveler Gideon Enok to discuss one of the most remarkable journeys I’ve ever heard. After life unexpectedly came to a halt during the global pandemic, Gideon packed a backpack and began walking more than 7,000 kilometers across Europe toward Santiago de Compostela.

While many people would see this as an incredible physical challenge, Gideon describes it as something much deeper—a journey of healing, self-discovery, faith, and learning to trust the unknown.

His story is a reminder that sometimes our greatest transformations begin not with a perfectly crafted plan, but with the courage to simply take the next step.

Life Doesn’t Always Give You a Roadmap

Like many entrepreneurs and professionals, Gideon found himself facing unexpected change. The pandemic disrupted life around the world, relationships changed, businesses slowed, and uncertainty became the new normal.

Instead of allowing those circumstances to define him, he chose movement over stagnation.

That decision became the beginning of a five-month pilgrimage that would reshape his understanding of success, purpose, and fulfillment.

One of the themes we often discuss on AnnaCovert.com is that growth rarely happens inside our comfort zone. Gideon’s story is a perfect example of what becomes possible when we choose courage over certainty.

The Three Phases of Transformation

During our conversation, Gideon shared what he calls the three phases every pilgrim experiences.

The first is physical.

When you begin walking day after day, your body must adapt to the challenge.

The second phase is mental.

As distractions disappear, emotions begin to surface. Old fears, stress, grief, frustration, and limiting beliefs often rise to the surface because there is finally space to process them.

The final phase is spiritual.

This isn’t necessarily about religion. Instead, it’s about reconnecting with yourself, discovering inner peace, and recognizing that many of the answers you’ve been searching for were already within you.

Whether you’re walking across Europe or navigating a challenging season in business, these same phases often appear in our own lives.

Slowing Down Can Help You Move Forward

One of my favorite moments from our conversation centered around the idea that slowing down is not the same as falling behind.

In today’s world we’re constantly encouraged to move faster, produce more, and stay connected every waking moment.

But Gideon discovered something different.

Walking created space.

Without constant notifications, meetings, and distractions, he found greater clarity about his purpose and the direction he wanted his life to take.

That lesson extends far beyond a pilgrimage.

Many entrepreneurs, executives, and business owners find their best ideas during quiet moments—not while staring at another screen.

The Power of Surrender

Another powerful lesson from Gideon’s journey was learning the difference between surrender and giving up.

Too often we associate surrender with weakness.

Gideon sees it differently.

Surrender means releasing the need to control every outcome while continuing to move forward with intention.

It means trusting the process even when you cannot yet see the destination.

That mindset applies equally to entrepreneurship, leadership, relationships, and personal growth.

Self-Respect Changes Everything

Throughout the conversation, Gideon returned to one important idea: self-respect.

When we respect ourselves, we make better decisions.

We establish healthier boundaries.

We become less reactive to outside opinions.

We stop living according to other people’s expectations and begin creating lives aligned with our own values.

That shift influences every area of life—from career decisions to business leadership to personal relationships.

The Pilgrim Mindset

You don’t have to walk thousands of kilometers to embrace the pilgrim spirit.

Anyone can begin adopting the mindset Gideon describes.

Stay curious.

Remain present.

Trust yourself.

Spend time in nature.

Slow down enough to hear your own thoughts.

Continue taking the next step, even when you don’t yet know where the path leads.

These principles have the power to transform not only our businesses but our lives.

Listen to the Full Episode

To hear my full conversation with Gideon Enok about resilience, mindfulness, the Camino de Santiago, faith, purpose, and the life-changing lessons of becoming a modern-day pilgrim, listen to this episode of The Covert Code Podcast.

You can learn more about Gideon, download a free chapter of his book, and explore his work by visiting The Pilgrim Spirit. You can also connect with him on LinkedIn, follow him on Instagram, or watch his videos on YouTube.

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📚 ABOUT HOST ANNA COVERT:
Anna Covert is the host of The Covert Code Podcast and the author of The Covert Code – Mastering the Art of Digital Marketing and The Solar Coaster. With over two decades of experience in digital marketing and business strategy, Anna has worked with top-tier companies like Microsoft, Apple, and IBM and leads Covert Communication, Hawaii’s largest digital agency.

ANNA’S WEBSITES:
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Covert Communication: https://covertcommunication.com/
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Transcript: The Pilgrim Spirit — What Happens When You Say Yes to the Journey

Episode: The Covert Code Podcast

Host: Anna Covert

Guest: Gideon Enok


Anna Covert [00:00:04]: Aloha! My name is Anna Covert, and I'm coming to you from my battleship here on the beautiful island of Oahu.

Anna Covert [00:00:12]: This week on The Covert Code Podcast, the topic is The Pilgrim Spirit: What Happens When You Say Yes to the Journey.

Anna Covert [00:00:23]: My very special guest is Gideon Enok, a global traveler, author, and modern-day pilgrim who has trekked more than 7,000 kilometers across multiple countries in search of purpose, growth, and a deeper understanding of what really happens when you simply keep moving forward.

Anna Covert [00:00:43]: In his book, The Pilgrim Spirit, Gideon chronicles a five-month journey across Europe during the global pandemic and shares the life-changing lessons he learned along the way.

Anna Covert [00:00:56]: Today we'll be talking about adventure, resilience, trusting the unknown, and what it really means to follow your heart—not only in life, but in business.

Anna Covert [00:01:07]: Gideon, thank you so much for joining me today.

Gideon Enok [00:01:10]: Thank you. Thank you for having me. I'm really looking forward to our conversation.

From Sales to Self-Discovery

Anna Covert: Let's start at the beginning. Before you became this modern-day pilgrim, what did life look like? What were you doing, and what ultimately led you down this path?

Gideon Enok: Everything really started around 2009. I attended a personal development seminar that completely shifted my perspective. The following Monday I went to work, sat down at my sales job, and something inside me had changed. It felt like my entire worldview had shifted overnight.

Gideon Enok: I became fascinated with personal growth, entrepreneurship, mindset, and understanding how our conscious and subconscious minds influence our lives.

Gideon Enok: I started reading everything I could find. I became obsessed with learning and discovering what was possible beyond simply working every day.

Gideon Enok: Toward the end of that year, I made a poor investment and lost a significant amount of money. At the same time, my former boss had moved to Australia after losing his own job.

Gideon Enok: I reached a point where I realized I needed to completely change my environment.

Gideon Enok: Within forty-two days, I sold or gave away nearly everything I owned, packed a backpack, and moved to Perth, Australia.

Anna Covert: Did you ever think you'd return to Denmark?

Gideon Enok: At the time, honestly, no. I told my parents at the airport that I wasn't coming back. I believed I was starting an entirely new life.

The Pandemic Changed Everything

Anna Covert: Fast forward to 2020. The world shuts down. You're back in Europe, going through a difficult breakup, and life feels uncertain. What happened?

Gideon Enok: I found myself living alone in a small farmhouse, feeling stuck and deeply unhappy. One morning I woke up knowing something had to change.

Gideon Enok: I sat down to meditate for several hours. Afterward, I felt an urge to walk to the ocean, about ten kilometers away.

Gideon Enok: Standing there looking across the water, I heard what felt like a clear voice asking, "Why don't you walk from Denmark to Santiago?"

Gideon Enok: It startled me because it felt incredibly real.

Gideon Enok: A couple of weeks later, I trusted that intuition, packed my backpack, and began walking toward Santiago de Compostela.

Walking Into the Unknown

Anna Covert: What were you hoping to find?

Gideon Enok: Honestly, I didn't know.

Gideon Enok: I simply believed the journey would change my life. I trusted that feeling completely.

Gideon Enok: Looking back, that trust became one of the greatest lessons of the entire pilgrimage.

Why Walking Changes Us

Anna Covert: There are so many people today who feel overwhelmed by uncertainty. We have technology, global conflict, social media, and constant distractions.

Anna Covert: What did walking teach you about navigating uncertainty?

Gideon Enok: Walking reconnects us with something incredibly ancient.

Gideon Enok: Human beings have always walked. We explored the world on foot long before modern transportation existed.

Gideon Enok: When we slow down enough to walk day after day, something inside us begins slowing down too.

Gideon Enok: We spend so much time on computers, phones, and social media that our minds rarely get a chance to rest.

Gideon Enok: Walking restores that balance.

The Three Phases of the Camino

Gideon Enok: In my book, I describe what I call the three phases of the Camino.

Gideon Enok: The first phase is physical.

Gideon Enok: During the first ten to fourteen days, your body simply adapts to walking every day while carrying everything you own.

Gideon Enok: Once your body adjusts, you enter the second phase, which is mental.

Gideon Enok: That's where many of your emotional burdens begin surfacing.

Gideon Enok: As you continue walking, you release stress, trauma, frustration, grief, anger, and everything you've been carrying for years.

Gideon Enok: It isn't always comfortable.

Gideon Enok: There were days when I cried.

Gideon Enok: There were days when I became frustrated.

Gideon Enok: There were moments when I questioned everything.

Gideon Enok: But continuing to walk became part of the healing process.

Gideon Enok: Eventually, you arrive at what I call the spiritual phase.

Gideon Enok: That's where you begin feeling connected again—to yourself, to other people, and to something larger than yourself.

Gideon Enok: Many people reconnect with loved ones, forgive old wounds, or discover a deeper sense of peace during this phase.

Anna Covert: I love that because it feels very similar to life itself.

Gideon Enok: Exactly. I often say these aren't only the three phases of the Camino.

Gideon Enok: They're the three phases we often experience throughout life.

Meditation, Walking, and Mental Clarity

Anna Covert: One of the themes that kept coming up throughout your journey was meditation. How did that become such an important part of your life?

Gideon Enok: Meditation taught me how to observe my thoughts instead of becoming controlled by them. When you're walking eight or ten hours a day, your mind has nowhere to hide. Eventually the constant mental chatter begins to quiet, and you start hearing your intuition much more clearly.

Gideon Enok: I often tell people that walking itself became my meditation. Every step became part of the practice.

Anna Covert: That's beautiful because so many people think meditation means sitting perfectly still for an hour.

Gideon Enok: Exactly. Meditation can happen while you're walking, breathing, or simply becoming fully present. The important part is learning to become aware of your thoughts instead of constantly reacting to them.

Writing The Pilgrim Spirit

Anna Covert: At what point did you know this journey would become a book?

Gideon Enok: I didn't know at the beginning.

Gideon Enok: I was journaling every day because I wanted to remember what I was experiencing. The more I wrote, the more I realized these lessons weren't only helping me—they might help other people too.

Gideon Enok: Eventually those journals became the foundation for The Pilgrim Spirit.

Gideon Enok: My hope is that readers don't simply read about my journey. I hope they begin their own.

The Eight Principles of the Pilgrim

Anna Covert: Your book shares what you call the Eight Principles of the Pilgrim. Tell us about those.

Gideon Enok: Those principles came directly from the experiences I had while walking.

Gideon Enok: They aren't theories. They're lessons earned through thousands of kilometers on the trail.

Gideon Enok: They include trust, surrender, presence, gratitude, courage, self-respect, service, and faith.

Gideon Enok: None of these principles are mastered overnight. They become lifelong practices.

Anna Covert: I love that they aren't just ideas—they're things people can actually practice.

Gideon Enok: Exactly. Wisdom only matters when we apply it.

Learning to Surrender

Anna Covert: One word that came up repeatedly throughout your story was surrender. I think people sometimes confuse surrender with giving up.

Gideon Enok: They are completely different.

Gideon Enok: Giving up means losing hope.

Gideon Enok: Surrender means letting go of trying to control every outcome.

Gideon Enok: During the pilgrimage I couldn't control the weather, where I would sleep every night, or who I would meet.

Gideon Enok: The more I trusted the journey, the more life seemed to meet me exactly where I needed it to.

Anna Covert: That's something entrepreneurs struggle with too. We spend so much time trying to control everything.

Gideon Enok: Absolutely. Sometimes our greatest opportunities appear after we release the need to control every step.

The Importance of Self-Respect

Anna Covert: Another topic that really resonated with me was self-respect.

Gideon Enok: Self-respect changes everything.

Gideon Enok: Many people spend their lives trying to earn respect from others while forgetting to respect themselves.

Gideon Enok: Healthy boundaries, honesty, keeping promises to yourself, and treating yourself with kindness are all expressions of self-respect.

Gideon Enok: Once you truly respect yourself, your relationships begin changing naturally.

The Unexpected Kindness of Strangers

Anna Covert: Throughout your journey you encountered incredible generosity from complete strangers.

Gideon Enok: Yes.

Gideon Enok: One experience in Belgium really stayed with me.

Gideon Enok: I had nowhere to stay that evening and wasn't sure what I was going to do.

Gideon Enok: Someone I had never met welcomed me into their home without expecting anything in return.

Gideon Enok: Moments like that reminded me that people are fundamentally good.

Gideon Enok: We hear so much negative news every day, but my experience walking across Europe showed me tremendous kindness from complete strangers.

Faith, Intention, and Imagination

Anna Covert: We also talked about imagination and faith.

Gideon Enok: Everything begins in imagination.

Gideon Enok: Before we create something physically, we first create it mentally.

Gideon Enok: Faith isn't pretending everything will be easy.

Gideon Enok: Faith is continuing forward even when you cannot yet see the destination.

Anna Covert: That's a powerful way to describe entrepreneurship as well.

Gideon Enok: Absolutely. Every entrepreneur walks through uncertainty.

Finding Love Along the Journey

Anna Covert: One unexpected outcome of your pilgrimage was meeting your future wife.

Gideon Enok: Yes.

Gideon Enok: Had I never begun walking, our paths likely never would have crossed.

Gideon Enok: Looking back, it's another reminder that saying yes to one courageous decision often opens doors we never could have planned.

Advice for Someone Feeling Stuck

Anna Covert: If someone listening feels stuck today, what's the first piece of advice you'd give them?

Gideon Enok: Start moving.

Gideon Enok: You don't have to walk across Europe.

Gideon Enok: Go outside.

Gideon Enok: Take a walk.

Gideon Enok: Sit quietly.

Gideon Enok: Listen.

Gideon Enok: Often the answers we're searching for begin appearing once we slow down enough to hear them.

How to Connect with Gideon

Anna Covert: Where can people learn more about your work?

Gideon Enok: The best place is my website, ThePilgrimSpirit.com.

Gideon Enok: People can download a free chapter of the book, learn more about my journey, connect with me on LinkedIn and Instagram, or follow my YouTube channel where I continue sharing lessons from the pilgrimage.

Closing Thoughts

Anna Covert: Gideon, thank you so much for joining me today. I truly enjoyed this conversation.

Gideon Enok: Thank you. It was a pleasure being here.

Anna Covert: And thank you to all of our listeners for joining us for another episode of The Covert Code Podcast.

Anna Covert: If you haven't already, please subscribe and share this episode with someone who could use a reminder that sometimes the most important journey is simply taking the next step.

Anna Covert: Until next time, I can't wait to see you next week in the pixels.

Anna Covert: Aloha.

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