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Episode 134 – Dr. Alexander “Sandy” MacDonald

By |2026-09-26T00:43:40+00:00October 8th, 2026|Podcasts|

The U.S. SuperGrid: Powering America’s Clean Energy Future Featuring Dr. Alexander “Sandy” MacDonald on The Covert Code Podcast with Anna Covert

We spend a lot of time talking about the future of technology. Artificial intelligence, electric vehicles, automation, and the next generation of connected devices are changing how we live and work. But there is something underneath all of these innovations that doesn’t always get the attention it deserves: electricity.

Our electrical infrastructure was developed for a very different economy. As demand changes and renewable generation expands, the question is no longer simply how much electricity we can produce. It is also how we move that electricity from where it is generated to where people and businesses need it.

My guest this week on The Covert Code Podcast is Dr. Alexander “Sandy” MacDonald, an award-winning atmospheric scientist, former director of NOAA’s Earth System Research Laboratory, and CEO of American SuperGrid, LLC.

Sandy has spent decades studying weather, climate, and the complex systems that influence our planet. Today, he is applying that experience to an ambitious vision for America’s electrical infrastructure: an underground, nationwide High Voltage Direct Current SuperGrid.

Our conversation explores how the proposed system could work, why Sandy believes a national electricity market matters, and what it could mean for renewable energy, businesses, and the resilience of our communities.

From Weather Forecasting to America’s Energy Future

Sandy’s interest in science began during his childhood on the high plains of Montana, where he developed a fascination with thunderstorms and weather. He went on to earn his PhD from the University of Utah and began a career in meteorology that included more than four decades of federal service.

His work at NOAA involved weather forecasting, radar and satellite systems, advanced computer modeling, and eventually the broader study of climate.

That combination of meteorology, computing, and climate science became central to his later energy research. Weather determines when and where wind and solar electricity can be produced. Understanding weather patterns across an entire continent is therefore essential when designing an electricity system that relies heavily on renewable generation.

Science On a Sphere: Helping People See the Planet Differently

Before discussing the SuperGrid, Sandy shares the story behind one of his inventions: NOAA’s Science On a Sphere.

The idea began with a simple experiment using a beach ball and video projectors. Sandy wanted to find a way for people to see weather and climate as truly global systems rather than disconnected images on flat maps.

That early experiment eventually developed into an educational visualization system displaying planetary data on a large animated globe. Today, Science On a Sphere is used in museums, science centers, and educational institutions to help visitors understand atmospheric storms, ocean temperatures, climate, and other Earth systems.

It’s a fascinating example of how visualization can make complicated scientific information easier to understand. And it connects directly to Sandy’s approach to energy: to solve a large-scale problem, we first need to understand how the entire system works.

What Is the U.S. SuperGrid?

Imagine an Interstate Highway System, but instead of moving vehicles and goods across the country, it moves electricity.

That is how Sandy describes the basic concept behind the U.S. SuperGrid.

His proposal involves building a nationwide network of underground High Voltage Direct Current, or HVDC, transmission lines. The system would form a mesh across the continental United States, allowing electricity to move between distant regions through multiple interconnected routes.

Importantly, this would not require eliminating the existing alternating current grid. Sandy describes a hybrid system in which the HVDC SuperGrid handles large-scale, long-distance electricity transmission while existing AC infrastructure continues to deliver electricity to regional utilities, businesses, and homes.

The concept is based in part on research Sandy and his colleagues published in Nature Climate Change in 2016, examining how a national transmission network could support much greater use of wind and solar electricity.

Learn more about the proposal through the North American Supergrid initiative.

Why Geography Matters for Renewable Energy

One of the most interesting parts of our conversation is Sandy’s explanation of the relationship between geography and electricity demand.

America’s population and major commercial centers are concentrated in certain regions, but some of the country’s greatest wind and solar resources are located elsewhere.

The Great Plains, for example, offer significant renewable energy potential. Yet producing electricity in a region with abundant wind or sunshine doesn’t automatically mean it can be delivered economically to distant cities.

That is where transmission becomes critical.

Sandy explains that a nationwide network could connect geographically diverse renewable resources. When wind generation is strong in one part of the country and solar generation is strong in another, electricity could move across the network to help meet demand elsewhere.

His research uses detailed weather information to examine how those differences can complement one another across a much larger geographic area.

Creating a National Electricity Market

Beyond the engineering, Sandy sees a substantial economic opportunity in a national electricity market.

He compares electricity to other products that can be manufactured in one state and sold throughout the country using transportation infrastructure.

Electricity, however, is constrained by the capacity and structure of the transmission network.

A national HVDC system could potentially allow a wind developer in the Great Plains, a solar producer in the Southwest, or another electricity generator to reach customers across a much wider market.

That could change how energy projects are developed and how different regions participate in the electricity economy.

It also raises interesting questions about the future of utilities, independent energy producers, and distributed generation.

What Happens to Existing Utilities?

One of my questions for Sandy was what a national SuperGrid would mean for existing utility companies.

His answer is that the current system would still have an important role.

He compares the relationship to interstate highways and local roads. The interstate system makes long-distance transportation possible, but local streets remain essential for reaching individual destinations.

In the same way, a national HVDC network could provide long-distance transmission while existing regional and local infrastructure continues to serve individual communities.

Utilities would still need to maintain and upgrade their networks, and new converter stations would connect the two systems.

Why Build the SuperGrid Underground?

Putting a major transmission network underground is a central part of Sandy’s proposal.

He discusses the possibility of using existing interstate highway rights-of-way to create underground transmission corridors. This could reduce the need for additional overhead towers along some routes and potentially help address certain land-use concerns.

But Sandy’s interest in underground infrastructure goes beyond aesthetics.

As a meteorologist, he has spent his career studying the kinds of weather events that can damage exposed infrastructure. Hurricanes, ice storms, tornadoes, and other severe weather can interrupt electricity service, sometimes for extended periods.

Underground transmission would not eliminate every risk, but Sandy argues that a more interconnected, protected network could improve the resilience of the broader system.

Grid Resilience Is About More Than Keeping the Lights On

Electricity is fundamental to nearly every part of modern life.

When power is interrupted, the consequences can extend well beyond lighting and air conditioning. Water systems, transportation, communications, healthcare, and food distribution all depend on reliable electricity.

During our conversation, Sandy discusses major historical outages, including the 2021 Texas winter storm, as examples of the consequences of infrastructure failures.

His proposal is not simply to build additional transmission capacity. He wants to examine how the entire electrical system could be made more resilient through interconnected routes, protected infrastructure, backup equipment, and upgrades to existing networks.

Artificial Intelligence Adds Another Dimension

We also discuss artificial intelligence and its relationship to electricity infrastructure.

AI offers significant opportunities for science, forecasting, productivity, and technological development. At the same time, it creates new demands on the infrastructure supporting data centers and advanced computing.

Sandy raises another concern: as society becomes increasingly dependent on digital systems, protecting critical infrastructure against cyber threats and other disruptions becomes more important.

For him, the future energy system needs to be designed with both capacity and security in mind.

Preparing for Extreme Weather and Solar Storms

One of the most thought-provoking parts of our conversation concerns risks that many people rarely consider.

In addition to hurricanes and severe winter weather, Sandy discusses geomagnetic storms caused by solar activity.

He references the Carrington Event of 1859 and explains why large solar disturbances deserve consideration when planning critical electrical infrastructure.

Importantly, he acknowledges that putting transmission lines underground would not, by itself, protect the entire system from every electromagnetic disturbance.

Resilience requires a more comprehensive approach, including appropriately protected equipment, backup transformers, and upgrades across both new and existing infrastructure.

Can the U.S. Make the Transition?

Developing a nationwide SuperGrid would involve far more than engineering.

Land access, permitting, financing, utility coordination, regulatory decisions, and the practical challenges of building infrastructure across multiple states would all need to be addressed.

Sandy believes the technical foundations already exist. His broader argument is that large-scale transmission infrastructure deserves serious consideration alongside new electricity generation.

He also discusses the potential role of other technologies, including energy storage, nuclear energy, and geothermal power, within a changing electricity system.

The Opportunity to Build for Future Generations

One of the themes I appreciated most about our conversation was Sandy’s perspective on long-term thinking.

Previous generations built the transportation and energy systems that made modern economic development possible. The infrastructure decisions being considered today will likewise influence the opportunities available to future generations.

Whether a nationwide SuperGrid is built exactly as Sandy envisions or through a different combination of transmission technologies, the questions he raises are important.

How do we move electricity more effectively? How do we connect renewable resources with demand? How do we strengthen infrastructure against severe weather and other disruptions? And how do we prepare for a future in which electricity supports an even greater share of economic activity?

These are questions that extend far beyond the energy industry.

Watch my full conversation with Dr. Alexander “Sandy” MacDonald on The Covert Code Podcast.

Additional Resources

The U.S. SuperGrid: Powering America’s Clean Energy Future

The Covert Code Podcast | Episode 134
Host: Anna Covert
Guest: Dr. Alexander “Sandy” MacDonald

Transcript edited lightly for readability. Obvious transcription errors in names and technical terminology have been corrected. Statements and estimates are those of the speakers.

Full Episode Transcript

Anna Covert [00:00:00]:
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 U.S. SuperGrid: Powering America's Clean Energy Future.

My very special guest is Dr. Alexander “Sandy” MacDonald, an award-winning atmospheric scientist, former director of NOAA's Earth System Research Laboratory, and CEO of American SuperGrid, LLC.

After 40 years of federal service, Sandy turned his attention to helping address one of America's most urgent needs: transforming our aging electrical grid into a modern, nationwide energy network.

For the last 15 years, he has championed the concept of a SuperGrid capable of delivering clean power nationwide, increasing energy security, improving reliability and helping the concept of net zero become a real possibility.

Today, we'll be discussing not only how America's future depends on how we create power, but also how we deliver it effectively and efficiently from the places where it's being generated to the people and communities who need it most.

Thank you so much for being here today, Sandy.

Dr. Alexander “Sandy” MacDonald [00:01:13]:
Okay. Well, thank you for having me on.

Anna Covert [00:01:16]:
So, to begin, you're a fascinating man. Will you give us a little CliffsNotes version of your story before we dive into the SuperGrid?

Dr. Alexander “Sandy” MacDonald [00:01:26]:
Okay, well, I was one of those kids who was on the high Montana plains, loving weather and watching thunderstorms. I got really excited about weather when I was a child.

I got into my dream job, which was being in the field of meteorology. I got my PhD from the University of Utah and joined the National Weather Service. I spent probably about seven years working for the National Weather Service.

Then I got into the research part of NOAA. Again, my interest was always making weather forecasts better. We worked to build some of the best radar and satellite information systems.

I got interested in modeling, forecasting and the computers needed to do it.

Later in my career, I became head of all of the laboratories and cooperative institutes as the deputy for laboratories. That got me into climate.

The big thing I got out of getting into climate was that we're in trouble. We don't have much time. We can't just transform the United States. We have to transform the whole world.

So I did a seven-year study to ask: How could we build a system that would solve the climate crisis?

I think we found out how that is, and that's what I'm going to talk about.

NOAA's Science On a Sphere

Anna Covert [00:03:05]:
Wow. Tell me a little bit about one of your projects. I know you took one of your science projects on tour, and students were learning about it. Can you share a little bit about your Earth project?

Dr. Alexander “Sandy” MacDonald [00:03:17]:
Okay. Somewhere along the line, I got interested in how we show the world what's happening with both weather and climate.

Weather is global, and climate is global.

There was a time when I was working for Vice President Gore, and we talked a little bit about how people could understand climate. We both agreed that you've got to be able to show it really nicely.

One day, I set up a beach ball in my garage. This was in the early '90s. I put up some video projectors, and it looked pretty nice. You could see the weather moving on the beach ball and so on.

I was head of a laboratory where we needed to display climate and weather forecasts.

Working with my lab and with good support from NOAA, we built NOAA's Science On a Sphere, which is a six-foot sphere.

It's in approximately 300 museums worldwide. It's teaching people about weather and climate, and it's been seen by over 1.1 billion people since my invention.

I invented it, and I never got anything for it other than the idea that people are learning about weather and climate over the whole globe.

Anna Covert [00:04:39]:
Wow, that is amazing. And you used it with—and that's also one of the key ways we're predicting what could happen. Is that the case?

Dr. Alexander “Sandy” MacDonald [00:04:48]:
Yeah. I think weather and climate are truly global.

You have air over you that was in China only about three days before, in Hawaii, and another day and it's over the mainland.

What we have to realize is that we have to think of weather and climate, the solutions, the understanding and the forecasts as a truly global part of our science.

A Global Energy Revolution

Anna Covert [00:05:22]:
So really, you're talking about a global energy revolution.

Tell us, what do you think this energy revolution is going to be, and why? How are we going to make it happen?

Dr. Alexander “Sandy” MacDonald [00:05:33]:
Okay, so we have a big problem.

The amount of carbon dioxide going into the air is now about 40 billion tons, and we can't keep doing that.

The thing I say about it is that the Industrial Revolution built the world we have, and it's a great world. We've made great advances. That was the right thing. We used coal and ultimately oil and natural gas.

However, now we have a great opportunity to have a much better system. It's already available. Almost nobody understands it.

That's why I put effort, starting in 2005, into asking whether we could build a net-zero, decarbonized society and have it cost less, be more reliable and be better—and not just work in rich countries.

A lot of people say, well, let's build all these nuclear plants. But if we were going to build enough nuclear plants for Africa by 2050, that's 12,000 nuclear plants.

I'm kind of in favor of nuclear, and I think there are some exciting things happening, like small modular reactors.

But we're really out of time, and we do have something that works.

Right now, we're about 80% fossil fuels in the U.S., and close to that globally. We need to flip that so that we're 80% wind and solar by 2050.

If nuclear can come along faster, I'm all for it. If some of these new fusion ideas work, I'm all for it.

The big thing is that we can't keep putting 40 billion tons of carbon dioxide into the air for much longer.

Anna Covert [00:07:31]:
Do you think we even have until 2050?

Dr. Alexander “Sandy” MacDonald [00:07:35]:
I think we do.

I did a lot of research over the last 20 years on how you could flip the global economy, and it's really hard.

Somebody said it's like trying to turn an aircraft carrier around on a dime. You can't turn it fast enough.

The estimate I came up with is that the very fastest we could flip the global economy—not just the U.S., not just China, but all the countries, including countries that are just coming into technological advancement in Africa and South America—is about 40 years.

We need to be able to flip all of them, stop using fossil fuels and build this new economy mainly based on wind and solar.

Going from 80% fossil fuels to 80% wind and solar by the 2060s is what I feel will work.

Forty years to turn this big energy economy around.

My background is really more in climate science. What I love is that if we could do that, starting now—and we have to start soon—if we can do that by the 2060s, we're really going to save our planet for thousands of years into the future.

The converse is what's scary. If we can't do it, our children and a thousand generations are going to live on a really hot and hostile planet unless we act now.

Anna Covert [00:09:17]:
Yeah, I think it's really that we get to do it. It's our opportunity and our privilege.

Here in Hawaii, we call it kuleana. It's our responsibility and our honor to be able to do this.

Instead of saying that we have to do it, if we can all start to say that we get to be the ones to do this and how special that is, I think that changes the conversation.

Comments Off on Episode 134 – Dr. Alexander “Sandy” MacDonald

Episode 133 – Henk Rogers

By |2026-10-06T02:40:41+00:00October 1st, 2026|Author, Podcasts|

Beyond Tetris: Henk Rogers on Clean Energy, Innovation, and the Future of Humanity

What do Tetris, renewable energy, battery storage, and space exploration have in common? Henk Rogers.

When I sat down with Henk for Episode 133 of The Covert Code, I knew we had a lot to talk about. Most people know him as the entrepreneur who helped bring Tetris to the world. But here in Hawaii, we also know him for his work advancing renewable energy and for his belief that our islands can demonstrate what’s possible for the rest of the planet.

What interested me most about our conversation was how his different ventures connect. From developing new battery technologies to simulating life on Mars, Henk keeps returning to a central question: How can we create systems that allow people to live more sustainably?

The Moment That Changed Everything

In 2005, Henk experienced a serious medical emergency while playing tennis. He survived a complete blockage of a major coronary artery and found himself reconsidering what he wanted to accomplish with the rest of his life.

He had already achieved considerable success in the gaming industry. His children were grown, and he had recently sold his company. But he felt there was still important work to do.

While recovering, he began identifying the issues that would trouble him most if he never did anything about them.

One of those issues appeared in a newspaper article about the potential loss of the world’s coral reefs. Learning about ocean acidification and the role of carbon dioxide emissions gave him his first major mission: ending the use of carbon-based fuels.

He decided to begin in Hawaii.

How Hawaii Became a Renewable Energy Pioneer

Henk founded Blue Planet Foundation with an ambitious objective: help Hawaii transition to 100% renewable energy.

His original approach involved raising public awareness through a major concert. But he eventually concluded that awareness alone wasn’t enough. He wanted to create lasting change.

His organization shifted toward practical action, public engagement, and legislation.

One of the most memorable stories from our conversation was how Blue Planet Foundation involved children in the effort. Young people helped exchange approximately 300,000 light bulbs, creating opportunities for conversations with adults about energy efficiency and the future.

The organization also produced a book of children’s drawings asking Hawaii’s leaders to commit to renewable energy.

In 2015, Hawaii became the first U.S. state to establish a statutory target of 100% renewable electricity by 2045.

For Henk, Hawaii is more than a place to test renewable technologies. It’s a demonstration of what an island community can accomplish when energy security, economics, and environmental priorities align.

Why Energy Storage Is Essential

Generating renewable electricity is only part of the challenge. We also need reliable ways to store and deliver it when the sun isn’t shining or the wind isn’t blowing.

Henk’s work with Blue Planet Energy grew out of his effort to take his ranch on Hawaii Island off the electrical grid.

He wanted an energy storage solution that could support renewable electricity without introducing unnecessary environmental problems.

That search led him toward lithium iron phosphate batteries and, more recently, two technologies he discussed during our interview: sodium batteries and supercapacitors.

The Potential of Sodium Batteries

Sodium-based batteries offer an alternative to conventional lithium-ion battery chemistries. Sodium is widely available, and Henk believes the technology could eventually offer meaningful cost advantages.

He also discussed the potential for certain sodium battery designs to operate across a wide temperature range, reducing the energy required for heating and cooling.

These are important considerations for an energy system that will increasingly depend on distributed storage.

Supercapacitors and Peak Demand

Supercapacitors serve a different purpose from conventional batteries.

While batteries are useful for storing electricity over longer periods, supercapacitors can absorb and release energy very quickly. That makes them interesting for managing brief spikes in electricity demand.

Henk explained how this combination could help homes, hotels, commercial buildings, and even data centers manage their electricity requirements.

Rather than designing every part of an electrical system around the highest possible momentary demand, storage technologies can help smooth those peaks.

Hydrogen and Long-Term Energy Storage

One of the challenges of relying on solar and wind is preparing for extended periods of unfavorable weather.

At his ranch, Henk has explored using excess solar electricity to produce hydrogen through electrolysis. That hydrogen can be stored and later used in a fuel cell to generate electricity when needed.

He also sees opportunities for hydrogen in transportation, particularly for applications where battery weight and charging requirements present challenges.

Hydrogen production, storage, and transportation still involve technical and economic trade-offs. Nevertheless, Henk views it as one potential component of a broader renewable energy system.

Virtual Power Plants: Connecting Energy at the Local Level

As someone who has solar panels and battery storage at home, I was particularly interested in our discussion about virtual power plants.

A virtual power plant connects distributed resources, such as home batteries, so they can collectively support the electricity grid.

Instead of relying exclusively on large centralized facilities, utilities can use energy already stored near the customers who need it.

Henk explained that this approach could help reduce peak demand and potentially defer some distribution infrastructure upgrades.

For Hawaii, where electricity costs and energy independence remain important concerns, distributed energy storage is a particularly relevant opportunity.

Taking Hawaii’s Energy Experience Around the World

Henk’s ambitions don’t stop at Hawaii’s shores.

Through Blue Planet Alliance, he is working with island communities and other jurisdictions interested in pursuing renewable energy transitions.

During our conversation, he described bringing delegations to Hawaii that include representatives from government, utilities, regulatory agencies, and local communities.

They learn about Hawaii’s experience, visit renewable energy projects, and develop plans they can adapt for their own jurisdictions.

Henk said the program had welcomed representatives from 52 jurisdictions and helped establish international agreements and renewable energy legislation.

The underlying concept is straightforward: communities can learn from one another rather than starting from scratch.

What Space Exploration Can Teach Us About Sustainability

Our conversation eventually moved beyond Earth.

Henk has been involved in space exploration initiatives, including HI-SEAS, the Hawaii Space Exploration Analog and Simulation facility on Hawaii Island.

The facility has hosted simulated Mars missions in which small crews live in an isolated habitat, use simulated spacesuits, and experience delayed communications with the outside world.

These missions explore the practical and psychological challenges of living far from Earth.

But Henk also sees a connection to sustainability here at home.

Human settlements on the Moon or Mars would have to make extremely efficient use of limited resources. Water, energy, food, and manufactured materials would need to be conserved, reused, and recycled.

Those same principles can help us rethink how we live on Earth.

The Action App: Turning Awareness Into Action

Near the end of our conversation, Henk introduced a project that brings him back to his roots in game design.

His Action App is designed to encourage people to take practical steps toward environmental and social goals.

The idea is to begin with small activities, such as switching off an unnecessary light or picking up litter. As participants complete actions, they progress through levels and receive more substantial challenges.

Henk described plans to use artificial intelligence to suggest activities based on each person’s interests and previous participation.

He also envisions allowing users to create actions that other people can complete, encouraging participation beyond an individual’s immediate circle.

At the time of our interview, the app was in its final testing stage. Henk emphasized that he wanted to complete quality assurance before launching it.

Artificial Intelligence, Innovation, and Responsibility

We also discussed the opportunities and risks associated with artificial intelligence.

Henk sees enormous potential for AI to support scientific discovery and help address complex global challenges. At the same time, he raised concerns about the misuse of increasingly powerful technology.

His perspective reflects a theme that runs through much of his work: technological advancement needs to be accompanied by careful consideration of its consequences.

We ended up discussing everything from his grandchildren and environmental education to the possibility of creating a meditative version of Tetris.

It’s an interesting idea from someone whose career began with a game that has already captured the attention of generations.

What’s Next for Henk Rogers?

Henk’s story is a reminder that a successful first chapter doesn’t have to define the rest of your life.

After Tetris, he could have retired. Instead, he built organizations and launched initiatives spanning renewable energy, entrepreneurship, battery storage, international collaboration and space exploration.

What stayed with me after our conversation was his distinction between hope and determination. Henk isn’t simply waiting for a better future. He’s continuing to develop projects intended to help create one.

Watch or listen to the complete conversation on The Covert Code, and explore more conversations about technology, business and innovation.

To learn more about my work and upcoming episodes, visit AnnaCovert.com.

Beyond Tetris: Henk Rogers' Vision for the Future, Beyond Earth and Beyond

The Covert Code | Episode 133
Host: Anna Covert
Guest: Henk Rogers

Transcript lightly edited for readability from the automated recording. Some unclear passages and speaker changes should be checked against the video before publication.

Full Episode Transcript

Anna Covert [00:00:00]:
Aloha. My name is Anna Covert. And this week on The Covert Code, the topic is Beyond Tetris: Henk Rogers' Vision for the Future, Beyond Earth and Beyond.

My special guest is the amazing Henk Rogers, a pioneering entrepreneur, global visionary, and co-founder of The Tetris Company.

After helping Tetris become one of the most recognized games in the world, Henk turned his attention to another challenge: helping the future of our planet.

He founded Blue Planet Foundation, which helped lead the movement that helped Hawaii become the first state in the country to, by law, commit to generating 100% electricity through renewable energy by 2045.

He founded Blue Planet Energy, helping advance more sustainable battery storage technology.

Then he turned his attention to even more ways to help Hawaii by co-founding Blue Startups, a Hawaii-based accelerator that helps entrepreneurs and Hawaii's economy diversify as well as compete globally.

But he wasn't done there, and his work even extended beyond that through the Pacific International Space Center for Exploration Systems, as well as the International MoonBase Alliance, which helps us understand and explore how humans can be sustainable off-planet, while providing more opportunities to bring science, business and aerospace right here to Hawaii.

Today we're here to talk about this amazing journey beyond Tetris and how what Henk's been doing in entrepreneurship, clean energy, technology and innovation is making Hawaii become a prototype and opportunity for others globally.

Thanks so much for being here today.

Henk Rogers [00:02:00]:
Thank you for having me.

Anna Covert [00:02:01]:
So, to begin, you have such an incredible story. Tell me, what was the biggest moment that made you decide?

A lot of people would be done after Tetris. And I know you have other experience in multiple games. You have a movie about you, a book about you. When did you decide to shift toward this renewable, clean energy goal?

Henk Rogers [00:02:21]:
So it was 2005, and I had a 100% blockage of the widowmaker. That's the largest artery in your heart.

I was playing tennis at Waialae Country Club that day. I didn't feel good. They called an ambulance. They said, "We're going to take you in for observation."

Halfway to the hospital, the siren went on, and so I knew something was going wrong.

I had just sold my company a month earlier. And the first thing I thought was, "You've got to be kidding me. I haven't spent any of the money yet."

But the second thing I said was, "No, I am not going. I still have stuff to do."

And so in the recovery room—I have two stents, by the way—I started thinking.

Ninety-five percent of the people who have a 100% blockage of the widowmaker die. So I'm the lucky 5%. I survived. So I must have a reason for surviving.

I'm thinking, what did I mean by "stuff"?

I'd already made enough money so my wife didn't need me anymore. My kids were out of college, so they didn't need me anymore. I was kind of done with the normal stuff.

And then I started thinking: What is it that's going to upset me if I don't do something about it by the actual end of my life?

So I decided to find my missions in life.

The first mission came to me in the back of a newspaper in Hawaii. It said, "Oh, by the way, we're going to kill all the coral in the world by the end of the century."

What's causing that? Ocean acidification.

What's causing that? Carbon dioxide.

What's causing that? We are.

So mission number one is to end the use of carbon-based fuel.

I decided I'm going to start in Hawaii. I'm going to do this in Hawaii first. Then I'm going to do it for the rest of the world.

Anna Covert [00:04:03]:
Was it the Star-Advertiser or PBN? What paper was this article in?

Henk Rogers [00:04:07]:
It was the Star, because it was in the back of the newspaper by the obituaries. It wasn't front-page news.

It should be. We're going to kill all the coral in the world. That should be front-page news. What the hell is going on? Why are we doing this?

But no, it was just like a "by the way."

And so I realized that people aren't really thinking about this. Even people in Hawaii, where coral is such an important part of everything.

Islands in the Pacific are made out of coral. Coral has been around for hundreds and hundreds of millions of years, and 25% of the life in the ocean depends on coral.

So we cannot just callously let all the coral in the world die.

Anna Covert [00:04:49]:
That was so interesting during COVID, when we had this kind of deep breath for the world, how fast some of the coral came back. It really is one of the most resilient things around.

Henk Rogers [00:05:00]:
It is and it isn't.

If we have the bleaching effects, if that happens two years in a row, then the coral has real trouble coming back.

And then we have development, like we have in Hawaii. We add nutrients to the ocean when we do wastewater treatment. We add silt to the reef when we're doing development.

And that's where we've lost a lot of the bay. It doesn't come back unless we give it a chance.

Anna Covert [00:05:32]:
Yeah. So, living here in Hawaii, I'm not from here, but I've been here longer than anywhere else. Twenty-two years.

And while Hawaii is a wonderful place, it's not a fast place, right? Things take time. They go slower, at least in my experience, than being in New York or other places like that.

So this is a huge deal that you were able to get Hawaii to agree to this renewable goal. How did you do it?

Henk Rogers [00:05:58]:
When I got started, I had no idea what I was doing. All I knew was that I wanted to do it.

We went through a year of trying to figure out how to get the public interested in it.

We were going to do a concert with Paul McCartney on Magic Island, and I spent some money getting started on that.

Then Al Gore did his concerts all around the world. And I came to the realization that it was very nice and there was awareness, but after the concert was over, that was it.

People just went back to their lives and said, "Well, that was a nice concert."

So we decided to pivot at that point and become an action-oriented organization.

We figured out what we could do to actually achieve 100% renewable energy in Hawaii, and we decided to go for legislation.

It took us another five or six years to figure that part out. Finally, we did. We now know how to talk to the politicians in Hawaii.

We didn't just talk to the politicians, because when we talked to them, they said, "Why are you talking to me about this? I've got a lot of problems bigger than your problem."

Okay, fine. Talk to the people.

The people were saying, "Why are you talking to me about this? We've got a lot of other problems. I've got to make a living here."

So we decided to reach out to the children because it's their future that we're trashing.

This is what's going to happen if the adults in the world don't do something.

So we got the children on our side.

We had children go door to door and exchange 300,000 light bulbs, for example, thereby having a conversation between a child and an adult about the future and about saving money.

Because LEDs are about ten times more efficient than incandescent light bulbs.

We made bouquets of incandescent light bulbs and had the children give them to the politicians.

And we created a book.

The magic trick is that politicians are not allowed to receive a gift worth more than $25. So our book was $24.95, and it was a book of children's drawings asking, "Please give us 100% renewable by 2040."

I made the book a little bigger than the other books so it would stick out. And it's hardcover, so you can't throw it out.

You would see that book on every politician's bookshelf, and it was enough to get their attention.

We prevailed.

Anna Covert [00:08:52]:
That's amazing.

I have solar on my house, of course. When I get my bill from HECO and open it up, and it says negative $650 and "Do not pay this bill," you know the feeling.

I think it's what people don't realize.

And I came up with one of my concepts for business called the "shoulda, woulda, coulda" card.

If you meet with someone and you're trying to sell them solar, and they say no, you're shocked.

I started selling solar because my advertising agency was affected when we shut down the island—the whole state.

I couldn't believe it. Here we have a family, generations living there. They have this big bill. We had such low interest rates, and they just wouldn't agree.

Finally, after the second visit, I broke down and said, "I don't understand. What is it that's keeping you?"

They said, "Well, what do we do 25 years from now?"

I'm like, "Well, you'll be dead."

Of course, that wasn't the right thing to say. It wasn't my finest moment.

But on the way back home, I had a realization.

It's because of temporal discounting, one of the behavioral science concepts that helps explain why people don't save for retirement. They'd rather spend the money now than save it.

What if, instead of telling someone they could save $150, I said, "What if I gave you a Visa gift card for $200 a month? Would that change your life?"

Well, yeah.

It's different from presenting this large number that they can't understand.

Yet even now, we only have, what, 30% of Hawaii that's renewable? Which is a big deal.

Henk Rogers [00:10:30]:
As a state, we're at 40% renewable energy, which is really great. It means that we're on track.

Kauai is our poster child for how this is going to happen. Many days they're already at 100% renewable.

That's just with solar.

Can you imagine the rainiest place in the world getting its electricity from solar?

We have all of the information. We know how to do this. There's no question there. We just have to do it.

Anna Covert [00:11:03]:
What do you think is standing in the way? Are there any obstacles? Do you think we're going to achieve our goal?

Henk Rogers [00:11:08]:
We are going to achieve our goal.

It's funny because I was on a panel quite some time ago, and I said, "We're going to go 100% renewable energy by 2045."

The guy sitting next to me said, "I'm a professor at the university. This is what I study. There is no way we can go 100% by 2045."

So I took the mic back and said, "Well, I'm not as smart as this guy, so I'm going to do it anyway."

That's really the attitude we need to have.

We have to do this. There are no two ways about it. We're going to run out of fossil fuels. We have to stop climate change.

This is an existential threat, especially for islands.

If we melt Greenland, we're talking about a 30-foot rise in sea level. If you add Antarctica to that, that's a 90-foot rise in sea level.

It's much cheaper for us to fix climate change than it is to move all the cities that are within 90 feet of sea level inland somewhere.

Think of all the people who live in those coastal areas. They're all going to have to move. Where are they going to move?

Those are called migrants. We're going to have a migrant problem of biblical proportions if we don't do something about it.

We have the technology. We know how to make energy using renewable resources. We just have to do it.

There's enough money in the world. There's enough technology in the world. What's missing is willpower.

We need to sprinkle that willpower around.

At the end of the day, you can do the calculation. These are probably old numbers, but they're still numbers.

The utility spends $0.24 per kilowatt-hour for oil, and it costs them $0.08 per kilowatt-hour for wind and solar. If you add batteries, it's up to $0.12.

That is half the cost, and you're not importing anything.

If something geopolitical happens in the world and, for some reason, tankers can't get through the Strait of Hormuz, they're not going to come here. They're going to go to other places.

Islands are going to be the last place they come.

We need to have energy independence. I think this is a huge thing, and islands are waking up to this right now.

We're at the whim of the fossil fuel industry, and we can't be.

Once you have renewable energy in place, your rates are never going to go up. If anything, they're going to go down.

Every time a tanker shows up on our shore, we are taking a chance because tankers do run aground and cause ecological disasters.

If a tanker runs aground in Hawaii, you can forget your tourist industry. That is the most important industry we have.

We roll those dice every single time.

Henk Rogers [00:14:35]:
Definitely. With oil, that's it. It's over. I don't know how many years it takes to recover from something like that.

Anna Covert [00:14:44]:
All I can think of is the commercial with the soap and the little bird.

Henk Rogers [00:14:48]:
Yeah, the birds.

Anna Covert [00:14:56]:
Wow. So tell me about your battery technology. You're on the cutting edge of this technology.

Blue Planet Energy and the Future of Battery Storage

Henk Rogers [00:15:07]:
So I wasn't going to get into another business after sort of retiring from the computer game business. And I certainly wasn't going to get into a business that involved inventory, because I was in the game cartridge business, and that included inventory.

If your game didn't sell through, you were stuck with the inventory. And that's basically scrap at that point.

But the utilities were saying, "We can't go 100%."

And I said, "What do you mean you can't go 100%?"

So I decided to take my ranch on the Big Island off-grid.

We searched for a battery. We wanted a battery that wasn't going to be another disaster.

I had a longstanding relationship with Sony because I was in the game business, and they came up with something called lithium iron phosphate.

Now, in your phone and in my Tesla, there is a chemistry called NMC. That's nickel manganese cobalt.

That's the reason you can't put certain batteries inside your suitcase when you get on a plane. They can catch on fire.

And it's not fire. It's fireworks. Once it goes, it continues going until it's completely used up. That's the way fireworks work.

With NMC, there are bad actors. There's cobalt coming out of a war zone with child mining, and there's lithium coming out of Bolivia, et cetera.

Now they're talking about scraping manganese nodules off the bottom of the ocean because they want manganese.

So we need to get rid of all of that.

Lithium iron phosphate was a big step in the right direction.

We were the first ones with lithium batteries in the U.S. We did my ranch. We did this house.

Then other people started asking, "Can you do this for me? Can you do this for me?"

And so I ended up backing into the battery business.

After being in it for about ten years, the patent ran out.

The Chinese, who had ignored the patent within China all this time anyway, were able to send their cheap batteries into the U.S. market in a huge tsunami.

So I said, "Okay, I'm done."

But then I met some people who said, "We want to get into the battery business."

And I said, "Oh no, I'm getting out of the battery business."

"No, no, we want to get into the battery business."

Okay, let's see what's out there.

I took a look around, and we found two technologies that are very promising.

One is sodium. It's salt. It's a sodium battery.

It works just like a lithium battery, except there's no lithium involved. It's just salt.

Sodium Batteries: An Alternative to Lithium

Anna Covert [00:18:00]:
In Sweden, there's some stuff...

Henk Rogers [00:18:01]:
There's a couple of other things that are good about the salt battery.

The sodium battery works from minus 40 degrees Celsius to plus 65.

So that temperature range means you don't need to heat them or cool them.

That's something amazing. That's a waste of energy.

I remember when I first got my first Tesla Roadster. Underneath that little hood in the front, it's got a little space, and it's got an air conditioner up there.

I said, "You know what? I'm never going to use the air conditioner. Can we take it out and use it for something else?"

And he said, "No, the air conditioner is not for you. It's for the batteries."

So I said, "Okay, I got it."

Cooling batteries is a waste of energy.

With sodium batteries, there's nothing mined. It's salt, which is basically everywhere.

Every desalination plant has a mountain of salt waiting for something to happen with it.

So sodium-based batteries are projected to be, I don't know, 30% cheaper than lithium batteries.

They're going to be cheaper.

Anna Covert [00:19:16]:
They live a long life, right? How long do they last?

Supercapacitors and Managing Peak Electricity Demand

Henk Rogers [00:19:18]:
So anytime you have a quote-unquote battery, you have a chemical reaction.

The chemical reaction goes one way when you put electricity in, and it goes the other way when the electricity comes out.

Ions move back and forth across some membrane or something like that.

Every time that happens, the chemistry changes ever so slightly.

They last, I don't know, six or eight thousand cycles for any kind of battery.

That's always going to be a limiting factor when you have a chemical reaction.

The other battery, which is not actually a battery, that we're working on is a supercapacitor.

With a supercapacitor, there's no chemical reaction in it. It's basically electrons in and electrons out.

Traditionally, what supercapacitors are used for is when you need a burst of electricity.

You feed it a bunch of electricity, and boom, it lets go a lot.

When you're starting up a machine, turning on a microwave or anytime you're starting something up, there's a surge of electricity.

Anna Covert [00:20:39]:
Jumping a car?

Henk Rogers [00:20:41]:
Okay, it's a similar thing. Maybe like jumping a car.

When you pay for electricity, you don't just pay for the total amount of electricity that you use. You pay for the peak power that you use.

That peak demand.

When everybody comes home from work and turns on the air conditioner, that's a peak power consumption that happens early in the evening.

What we need to do is get rid of that peak.

The supercapacitor can handle the peak, and the battery can handle the long-term storage.

That's really the direction we're going in.

We have a battery that's sodium, which is cheap, and then we have the supercapacitor, which handles the peaks.

Anna Covert [00:21:32]:
Like those utility-scale systems that can manage that kind of demand?

Henk Rogers [00:21:37]:
Similar. It just handles the peak.

That's not only a problem for us as homeowners. It's also a problem for data centers.

Anna Covert [00:21:48]:
Any commercial company, right?

Henk Rogers [00:21:49]:
You will have times when there's peak demand.

That's why the utility will keep what is called a spinning reserve going.

That means they have some oil or gas turbine, and it's going just in case there's a peak, so that it's ready because they can't turn it on quickly.

They keep it going, wasting all that energy for nothing. It's basically doing nothing. It's just there in case you have a surge.

By adding all the supercapacitors, now we're handling the surge, and they can handle it instantly.

Anna Covert [00:22:33]:
It's interesting. A lot of people think, like Costco, you go and buy more of something and you get a better rate.

But it's completely opposite with power. The more you use, the higher your charges.

Anna Covert [00:22:46]:
That's why a lot of commercial companies, especially on the mainland, look at that peak.

They look at it over 14-day increments, and then that peak gets charged, sometimes $15 a kilowatt.

Henk Rogers [00:22:58]:
They charge a standby charge.

Any hotel is paying for the amount of electricity, but they're also paying for the maximum electricity they could possibly need because that may someday happen.

The infrastructure, meaning the wires and everything, needs to be built for that moment in time when it's going to use peak power.

It's like when the hotel is completely full, there's a convention, every air conditioner is on at the same time, blah, blah, blah.

We have to prepare for those moments.

If you have local storage, if the hotel has storage, or the house has storage, or the business or the utility has storage, then those peaks can be taken care of.

How Long Can Batteries Store Energy?

Anna Covert [00:23:46]:
But salt batteries, because I think one of the other problems is capacity, right?

I've heard that on a commercial level they can hold energy for a really long period of time. Is that correct? I've heard up to 50 years.

Henk Rogers [00:23:59]:
No, no, no.

For holding a charge, I think every chemical battery is sort of the same.

We're not talking about something that's going to hold the charge for that long.

You don't need to hold the charge for that long.

If it's solar, you need to hold the charge from sunny day to sunny day, at nighttime.

Or if it's wind, you have to be able to hold it during the quiet period when there's no wind.

That's not months. It's days.

Anna Covert:
And places like Alaska, though? I remember we had 45 days of rain.

If we're going to be resilient, how can we prepare? How long can a battery hold anything?

Henk Rogers:
So I live this at my ranch. I have an idea.

What we have at the ranch is enough solar so that it works on a cloudy day.

It's almost never that we don't get enough solar, but there is sometimes a week.

For those situations, you have to have a backup power source.

That backup power source could be diesel. It could be your existing fossil fuel infrastructure.

But in the case of the ranch, we thought about this.

On a cloudy day, we have enough energy. But on a sunny day, we have all kinds of extra energy.

This is a problem in Europe. There's so much solar that on sunny days they have too much electricity.

It goes into the grid, and they pay people to take their electricity on those days.

You can buy electricity when it's cheap and sell it when it's expensive.

That's a battery thing. That's a daily cycle.

Hydrogen as Long-Term Energy Storage

Henk Rogers [continued]:
But what we figured out at the ranch was: What do we do with the excess energy?

We don't have machinery or something like that at the ranch.

What do you do with the excess energy on a sunny day?

We make hydrogen.

Hydrogen is something you use simple electrolysis to make.

You break up water into hydrogen and oxygen. You keep the hydrogen.

That hydrogen you can store for a long time.

That is the long-term storage.

When you need it, you can use the hydrogen in a fuel cell to make electricity to charge your battery.

Now hydrogen has another benefit.

If we're talking about electricity, 50% of the fossil fuel that we bring into Hawaii goes to make electricity.

Twenty-five percent is jet fuel. Twenty-five percent is ground transportation.

So that ground transportation, if we all switch to electric cars, which is very nice, means we need to improve our electric infrastructure to be able to handle it.

Because each time you add a car, it's like you're adding another house.

We have electric cars. It's like we have three houses here worth of electricity.

Sedans are fine with batteries, but trucks and buses, if you fill them up with batteries, you're spending all your energy moving batteries.

So the future of trucks and buses is hydrogen.

Because it doesn't weigh so much, and you can refuel it quickly.

Trucks and buses need to be hydrogen going forward.

We should be using all the excess energy that we make from wind and solar to make hydrogen, then use the hydrogen as a backup fuel and as fuel for trucks and buses.

Virtual Power Plants and Hawaii's Solar Future

Anna Covert [00:27:52]:
One of the big things that people are dealing with, and it's happened here already, is net metering.

I'm lucky that I was net metered because I got solar in 2012.

Then in 2015, we ended net metering, and it's rolling across the country. Other places are no longer net metered, and now it's becoming a reason why people are not deciding to go solar.

I think now with storage, we still see a big benefit.

But is there some other infrastructure Hawaii needs to be able to allow more people to get solar and send it back to the grid so that we can create hydrogen?

How will we get this power somewhere to create this hydrogen?

Henk Rogers [00:28:25]:
Well, the hydrogen, I think, is grid-scale.

It's not something that we're going to have at every house. You don't need it for your house.

The future for the utility is virtual power plants.

A virtual power plant is that you put batteries in the home, and then when the demand is low, you charge the batteries.

When the demand is high, you use those batteries for whatever you need them for, to run the air conditioning.

By having batteries in every home, basically what happens is you've got energy at the end of the line.

That means you don't have to make new lines or upgrade your distribution to get to those outlying areas.

Every time you send an electron across a long distance, you're losing something.

If the electricity is already there in the form of a battery, you're being way more efficient.

I think Michael Dell's son just started a business in Texas where he's doing exactly that.

Anna Covert [00:29:34]:
New Jersey, too. The utility companies are starting to do virtual power plants. California signed legislation that they're going to start.

I think we're even ahead.

I got my batteries with the eco rebate program when we sunset our coal-burning facility.

But it's a little different because they just draw from my Powerwalls between 6:00 and 8:00 p.m. They bring them both down to 80%.

Is that going to happen? Because we had a swell program here for a while, and that didn't really do much.

There are all different kinds of things that we do and things that we don't see.

The problem for Oahu is that there's not enough resources on this island. Well, they say not enough space to put enough solar and wind to run the island.

But we have the Big Island, and there's also geothermal, right?

Geothermal Energy and Lessons from Iceland

Henk Rogers [00:30:34]:
The Big Island is huge.

It's got all the wind. It's got all the solar. And it's got geothermal.

We just have to find a way.

Anna Covert [00:30:47]:
I was just in Iceland this summer for the first time, and it was so impressive.

I couldn't believe it.

John Pitre, who I work with, was telling me that we have the exact same structure. We could do that here.

Henk Rogers [00:31:00]:
Oh, yeah.

Iceland, when they decided to go 100%, they didn't go 100%. They went 300%.

What happened was that they ended up having the cheapest electricity in Europe.

So they brought energy-hog industries into Iceland.

Their biggest industry is smelting aluminum, which is about as much of an energy-hog industry as you can get.

They import bauxite from Africa, the raw material, and they supply Europe with aluminum.

An island in the middle.

Anna Covert [00:31:37]:
They said their biggest thing was fisheries.

But their geothermal not only provides 25% of all the electricity they need, plus additional power, it also provides all the hot water and all the heat for Reykjavik.

That's the biggest city, and I think about half the people live in Reykjavik.

It's magnificent, their whole system.

They don't have to spend any energy heating anything.

It's visionary.

I was there also this summer.

Henk Rogers [00:32:16]:
I was there for the eclipse.

Unfortunately, we didn't get to see it. It was cloudy.

Anna Covert [00:32:20]:
Their weather! We saw the fjords, and it was glorious.

So Hawaii was the first prototype, but now you're not done. You're helping other places.

Taking Hawaii's Renewable Energy Model Around the World

Henk Rogers [00:32:32]:
Well, that's how Hawaii was first. Two years after we passed the law in Hawaii, California passed the same law: 100% by 2045.

Somebody asked them, "Why did you choose 2045?"

By the way, 2045 was a negotiation. We wanted 2040. The politicians were ready to give us 2050, and we settled for 2045.

California said, "Wait, 2045, isn't that the date?"

Well, it turns out to be a pretty good date because it's the 100th anniversary of the United Nations. My son pointed that out to me.

What better time to fix climate change than 2045?

Right now, we're in the SDGs, the Sustainable Development Goals, that last from 2015 to 2030.

Then from 2030 to 2045, we have another 15 years.

I want them to be called the Regenerative Development Goals.

It's where we've put back everything that we've stolen from nature and fixed everything that we've broken.

We can totally do it. There is enough money, and the benefit is going to be unbelievable.

There's so much money to be made in renewable energy. There's so much money to be made in replacing all of the infrastructure that we have now, which is going to have to be replaced anyway.

Anna Covert [00:33:53]:
It's been the greatest transfer of wealth that ever occurred in humankind, right? Transferring to renewable energy.

Henk Rogers [00:33:59]:
Yeah. I wish it was a transfer of wealth, but that may or may not happen because the oil companies, or the fossil fuel companies, are in the energy business.

They're probably going to be the ones that move over to the renewable energy business, which is fine.

Let them be in a different business.

Let them not go the way of Kodak.

They invented digital photography and then said, "No, we're in the film business."

And so where does that leave them now?

Anna Covert [00:34:36]:
That's what your book is about. If it doesn't work the way you're doing it, you have to change your direction.

Henk Rogers [00:34:40]:
Yeah, yeah.

Anna Covert [00:34:41]:
So how are we going to get the rest of the world behind this?

Blue Planet Alliance and International Collaboration

Henk Rogers [00:34:45]:
So we did California, and today 19 other states have our law.

They're going to go 100% by 2040, 2045 or 2050.

That's in a country where Washington has kind of gone weird on this whole topic, and we're still making this progress.

But to continue making bigger progress, we decided to move outside the 50 United States.

What we do is bring jurisdictions, islands and countries to Hawaii.

We show them what we did, then send them back home to do what we did in Hawaii.

So far, we've brought 52 jurisdictions.

When we bring in a jurisdiction, we bring four people: one from the government, one from the utility, one from the regulatory agency and one from the community.

And one of them has to be a woman, or we don't pay.

Our board of Blue Planet Alliance is always going to be a majority of women because I believe men got us into this, and men are not going to get us out.

This is not a time for testosterone-laden risk-taking. This is a time for, "Go clean your room. Don't come back until you're done."

That's a mother's way of getting something done.

There's no magic bullet here. This is just straight up: do it more and more and more until we're done with it.

That's the only way I can think about it.

Anna Covert [00:36:20]:
One step at a time.

Henk Rogers [00:36:22]:
One step at a time.

We've brought in 52 jurisdictions so far. We do it every six months, every May and October.

We have about 50 people in town.

They get to meet everybody who was part of the before, when it seemed impossible, and the after, when of course we're doing this in Hawaii.

We do that for two days.

Then one day we take them around the island and show them all the renewable energy projects.

Then we sequester them for one day.

"Okay, now you guys make a plan. How are you going to achieve this back home?"

On the last day, they present their plan to everybody else at the conference.

The result of this is that we've now signed 19 agreements with heads of state.

The agreement says that we agree to work together to achieve 100% renewable energy in your jurisdiction.

We've also passed six laws outside Hawaii.

The head-of-state agreement is nice, but you can get another head of state who is influenced by the fossil fuel industry and says, "Oh no, there's no such thing as climate change."

Where have I heard that before?

So we want to pass a law. Once you pass a law, it's much more difficult for people to backtrack.

What Space Exploration Can Teach Us About Sustainability

Anna Covert [00:37:49]:
Wow. So what do you think? I know we talk about AI and the data centers, and now there's an even greater need for power.

You really have your eye out in space, out there in the great unknown.

How is the learning that you're doing in space going to help us with our climate problems?

Henk Rogers [00:38:07]:
Just look at the history of space.

We wouldn't have fuel cells or solar panels if it wasn't for space.

These are just low-Earth-orbit things that we had to figure out.

When we go to space, we are in an unbelievably harsh environment.

The technologies that we have to create to survive in those harsh conditions, like the Moon, where there's a vacuum and radiation, can be used back here.

Here, we're protected from radiation by our atmosphere, and we have a magnetic field around the Earth.

Even the people who are floating above the atmosphere in the International Space Station are protected from charged particles by Earth's magnetic field.

The Moon and Mars have no magnetic field, so radiation and charged particles just hit.

If we can learn how to survive under those conditions, we can use all that technology back here.

It costs money to be the first.

That research to build the first solar panel or the first fuel cell has to be government money, because that's the only place where you have enough money.

Industry won't.

Anna Covert [00:39:35]:
They have plenty. They can contribute more than they already do.

I know that's a topic, right?

No, I agree. So what are you working on in space? Is there something exciting happening?

HI-SEAS and Simulating Life on Mars

Henk Rogers [continued]:
Frankly speaking, I'm so busy with the new battery business and moving the alliance along, meaning getting more islands and countries on board, that that's where I spend 99% of my energy.

I have a facility on the Big Island where we study living on other planets called HI-SEAS, the Hawaii Space Exploration Analog and Simulation.

We did five years of missions with NASA, Mars missions.

Four months, four months, eight months, 12 months and eight months.

A mission means six people stay in a 1,200-square-foot dome.

They go outside, and they have to wear a spacesuit.

If they communicate with the outside world, we delay that signal 20 minutes each way to simulate Mars.

When Mars is closest to Earth, it's four minutes away. When it's on the other side of the Sun, it's 26 minutes away.

So it spends a lot of time more than 20 minutes away.

NASA said, "Okay, 20-minute delay."

It means you're not having a conversation.

Try texting. It doesn't work.

You text something, and you get back something 40 minutes later.

That's not a text. That's an email.

The same thing with video mail or audio mail. You're sending something with the cadence of email.

That's how we're going to have to live with people who are living on Mars, if we get there.

The minimum mission to Mars is 22 months.

It's eight months to go, then six months to wait while Earth comes around, and then another eight months to come back.

Twenty-two months.

Six people, and they think six people is the right number. Apparently NASA has figured that out.

They're going to have to get along for 22 months.

Eight months is weightless. Then you land on Mars.

When we send somebody up to the International Space Station for eight months and they come back, they have to be rehabilitated.

But now you're landing on Mars, so you have to do stuff to survive for six months before you get another eight months to come back.

This is not for the fainthearted.

But we have to focus on this planet.

All the things that we have to do to live on another planet are things we can learn from.

By the way, in history, no colony has ever survived that depended on resupply from the home country.

If you didn't learn how to live off the land, your colony disappeared.

That's what happened.

If we're going to live on the Moon and Mars, we're going to have to learn how to live off the land.

If we can live off the land on the Moon and Mars, we can live off the land here.

At a million dollars a kilo, we are not going to send any garbage to the Moon.

Everything that we send up there will be reused somehow, or 3D-printed into new stuff, or whatever.

There will be no such thing as garbage because it's too valuable.

That is something we need to learn here, because we create waste.

By the way, here's an interesting factoid.

If you add up all the weight of all the humans in the world, it is equal to all the weight of all the ants in the world.

Anna Covert:
Really?

Henk Rogers [00:43:29]:
The same mass, the same weight of humankind.

And we create mountains of waste.

Ants do not create any waste. They consume waste.

Anna Covert [00:43:43]:
Wow. That's incredible.

Henk Rogers [00:43:45]:
We should just learn something from ants. They're much more successful than we are.

Anna Covert [00:43:52]:
They really are.

If every employee was like an ant, we would be able to solve problems real quick.

Henk Rogers [00:43:58]:
Real quick.

From Tetris to the Action App

Anna Covert [00:44:00]:
So we talk a lot about awareness, and we get these contracts and states to agree, and countries to agree.

What is it going to take?

If we think about Tetris and how it became this global phenomenon, it was getting into people's hands, like you're doing with the children.

What are some of your ideas on how we can expedite this awareness globally?

Henk Rogers [00:44:22]:
So I'm a game designer.

I go to conferences where we talk about how to solve climate change, and somebody always comes up with the bright idea, "Let's gamify this."

Then everybody looks at me, the game designer.

Do you have any idea how hard it is to get somebody to play a game that is 100% pure fun?

Now you're asking me to make a game that's going to teach you something.

No, that's too hard.

Then I started thinking about it. I said, "Wait a minute. I shouldn't give up so easily."

So I thought about this, and I've actually created a game.

You can call it a game, but MileagePlus is a game. It's a gamification of empty seats.

There were so many people with miles that when United Airlines went bankrupt, everybody knew people would still be loyal to this airline, even though it went into bankruptcy and came back out.

Because of mileage.

You could say it's gamification, but people don't think about it that way.

Okay, so here's my app.

It's called the Action App.

Basically, we give you a list of things to do, and in the beginning they're very easy.

Turn off a light switch in a room where there are no people.

Pick up a piece of rubbish and put it in the rubbish bin.

Those are small actions.

You do a bunch of those, then you go up a level.

This is called role-playing.

Now you're level two.

At level two, we give you bigger things to do.

Instead of one minute, now it takes ten minutes to do an action.

You do a whole bunch of those and go up a level again.

Now we're doing bigger things.

The AI is watching and predicting what you're most likely to do next.

It's Amazon shopping AI. It's old AI.

They know what you want. They can predict what you're going to find next.

So it's basically giving you things that you actually want to do.

At the end of that, you will have done things in a direction.

Because this is the other thing that happens to me.

I give a speech, and at the end of my speech, people come up to me and say, "Well, so what can I do?"

My answer is, "I don't know what you can do. You have to figure out what you can do and do that."

You have to figure out what it is that turns you on and go do something about that.

So the AI helps you find out what you're really interested in doing.

If you do something 20 times, it becomes a habit.

I've got a strange habit now of picking up pieces of rubbish everywhere.

Like in the elevator or in the public bathroom, I take my leftover tissue and pick up the bits and pieces.

It's a small thing, but if everybody did it, it would make a huge difference.

We can keep track of what people are doing.

Right now, we're talking to the Scouts.

They used to be the Boy Scouts. Now it's just the Scouts.

There's a huge number of Scouts in the world, I think something like 20 million, with more in other countries than in this country.

They all have to do good deeds.

Hello!

If you give them the deeds and track the deeds, that's when you know they're ready to get a merit badge or whatever it is.

Now there are two ways you can make points in the game.

One is that you do the actions that are in the game.

But you can make more points if you create an action and other people do that action.

When other people do the action, you also get points.

So instead of creating a post on Instagram where you get likes, you create an action in the Action App where you get actions.

If a million people pick up a piece of rubbish and put it in the rubbish bin, we can do the calculation.

How much good did that do?

Connecting the Action App to Global Organizations

Anna Covert [00:48:31]:
That geotagging stuff, where people were going? It's kind of similar.

Henk Rogers [continued]:
Yeah.

We're talking to the United Nations about doing it for the Sustainable Development Goals.

We've specifically created SDG-related actions.

We're talking to the Scouts. We're talking to Rotary.

We're basically going to give the app to any NGO, any nonprofit that has a good mission, to help them track what their members do.

The Sierra Club sends me an email, I don't know, once a week or so, saying, "Please, can you write your congressman?"

I've never done this.

I'm just too busy to write a letter to my congressman.

If they asked me to do something else, I'd be more likely to do that instead.

But they don't know that I never did it because they have no way of tracking.

So they just blast email after email after email.

I don't know what percentage of those emails actually result in an interaction.

Henk Rogers [00:49:36]:
It's not many.

If they knew what I was likely to do, they could ask me to do that.

I'll show up on Saturday for a protest or something else.

Anna Covert [00:49:49]:
Put a bumper sticker on your car.

Henk Rogers [00:49:51]:
Yeah. You can be creative.

Put a bumper sticker on your car.

Okay, you just created an action.

Anna Covert [00:49:57]:
And you're going to be level two before you know it. You'll be an overachiever.

Henk Rogers [00:50:01]:
There you go.

So we're about to release this. We're in the final testing.

It's exciting. It's a way for us to get everybody to do something.

Now, what good is going up a level?

My idea is that on Monday, the level fives can buy tickets to a concert or a sports event.

On Tuesday, the level fours. On Wednesday, the next level.

So the more you've done, the more good you've done, the quicker you get to buy tickets.

You get to sit in the front.

We're sorting everybody in the stadium from those who've done the most to those who've done the least.

Then there's the pressure of trying to get down there to get the seats in the front.

We can do that with many different things.

It's a way for us to sort people by how many good things they've done.

Anna Covert [00:50:52]:
For businesses, there's the environmental, social and governance score, right? But this is for people.

Bringing the Action App to Universities

Henk Rogers [00:50:56]:
Yeah, we could do it for universities.

I remember I was in Korea, and I was meeting with the president of a university. She said, "I have 25,000 girls, and I keep them for four years. And all I do in those four years is teach them how to make the world worse, because I'm teaching them how to make the world the way it is, and the world is getting worse."

"Everything that we learn in school right now is about how to make the world worse. What should I do?"

I said, "Well, sustainability should be a requirement. They should all have to study sustainability in order to graduate."

And so I'm thinking they could use the Action App to do things that have to do with sustainability and thereby get a grade.

Anna Covert [00:51:46]:
Great idea.

Henk Rogers [00:51:47]:
So, yeah.

Anna Covert [00:51:48]:
How exciting. And you're launching it soon?

Henk Rogers [00:51:49]:
Launching it soon, yeah.

I don't launch something until we've let it go through quality assurance and we don't get back any new bugs. That kind of thing.

That's the game business.

Anna Covert [00:52:04]:
It's called being a lazy developer. That means you don't ever want to have to fix a bug.

Henk Rogers [00:52:07]:
Well, that's a little bit aggressive.

When I used to be in the cartridge business, like a Nintendo cartridge, once you master up, you're in production. You have 200,000 or whatever cartridges in production.

You can't change anything anymore.

Anna Covert [00:52:25]:
Mine still work. I still have my Super Nintendo, and mine's still working.

All you can do is blow on them, and then you stick them in.

Henk Rogers [00:52:31]:
We had to test the crap out of those cartridges before finally going to final.

Because if the game comes out with a bug, inventory. Dead inventory.

Anna Covert [00:52:48]:
That's exciting.

So what else? What else are you working on that you're excited about?

How about AI? I know people are talking a lot more about it. What are your thoughts?

Artificial Intelligence: Opportunities and Risks

Henk Rogers [00:52:48]:
There are a lot of people who are nervous about AI.

Historically, there have been a lot of things that we've had to be nervous about, like TNT.

Alfred Nobel created TNT. It was great for blowing up mountains and getting at minerals, but it was also great at blowing up people.

But we're still here. The population is still increasing despite the fact that most people have access to explosives now.

The AI problem is going to be when ordinary people are going to be able to do extraordinary things.

Like if we get to the point where anybody can build an atom bomb.

Henk Rogers [00:53:51]:
Atom bombs are going to be built.

You don't want to have all knowledge in the hands of all people all the time.

Even if you have a perfect society, like, I don't know, where are the happiest people in the world? Sweden, Norway, Denmark?

You still, every once in a while, have some guy with a gun who goes crazy.

What made him do that? Who knows?

Humans are not exactly predictable.

AI has the danger of being able to do that kind of stuff, but it also has the ability to do things that we can't do now, like solve cancer or fix climate change and all these things.

We need to use AI for what it's good at, for doing good things in the world.

There's too much inequality in the world, but that's another topic.

If everybody in the world was middle class, just think of how big the economy would be if we didn't have poor people.

Instead, what we have is a couple of people who are so rich that they don't know what to do with the money.

That inequality needs to be balanced in the world.

I guess that was the French Revolution.

Henk's Determination to Make a Difference

Anna Covert [00:55:24]:
Well, big things are going to happen.

Thank you so much for being here.

How do people learn more about what you're doing? I know we talked about your book and whatnot.

Henk Rogers [00:55:32]:
Blue Planet Alliance, Blue Planet Foundation. They're all there.

I have my own website. Follow me on Instagram.

I always forget to say that, but the more people follow me, the more people will understand what I'm trying to accomplish.

And we are going to prevail.

By the way, there is no question. People ask me if I have hope.

My answer is no, I do not have hope. I have determination, because we are going to fix everything.

Inspiring the Next Generation

Anna Covert [00:56:18]:
So you have ten grandchildren, right?

Henk Rogers [00:56:20]:
I have ten grandchildren, yeah.

Anna Covert [00:56:21]:
So they must be cheering. How are they helping your mission?

Henk Rogers [00:56:27]:
Oh!

Anna Covert [00:56:28]:
Cute.

Henk Rogers [00:56:31]:
Wow, I love it. Woo!

Blue Planet Alliance. Renewable energy. Please use less gas. CO2. Icebergs are melting.

Oh, what is this? Let me see this.

We can do 100% renewable energy. Yes, we can!

Right here, right here.

So he's already helping me by making his classmates aware of this situation.

Anna Covert [00:57:03]:
That's so cool.

One of my favorite tools back in the SunPower days was that they had this coloring book, and they sent it to all the installers so we could bring it with us when we were going to sell solar.

The kids could play with this.

It was so cool because when I would come back, it wasn't very many times, but I had kids really asking about how they could be champions and superheroes to help Mom and Dad on their quest.

Henk Rogers [continued]:
I think the big thing that children need to do is convince their parents.

When we started putting messages on cigarette packages saying, "This stuff's going to kill you," did that stop people from smoking?

No. It was when they advertised to the children, and the children asked their parents to stop smoking because they didn't want their parents to die.

That is when people stopped smoking.

I remember when I was driving my car, and this was before I wore seatbelts. In the old days, who wore seatbelts?

There was a commercial on the radio.

"My name is Johnny. I'm 12 years old. Last year, my parents died in a car accident, and they told me that if they'd been wearing their seatbelts, they would have survived."

Henk Rogers [00:58:26]:
"I live with my grandparents. When you die, who are your children going to live with?"

Anna Covert [00:58:33]:
Wow. I got chills when you said that.

Henk Rogers [00:58:37]:
I said, "I've got to chill out."

That was crazy. When you die, just the thought of that.

It's like, okay, click, click. I wore my seatbelt.

Anna Covert [00:58:45]:
Remember driving in the car with your grandparents? When you hit the brake, they would put their hand out.

Henk Rogers [00:58:50]:
Yeah, yeah, like that, because they didn't have that.

That is so not going to save you from going through the windshield. There's no way.

I was in Korea, and a politician asked me, "So what should I do?"

I said, "You should tell your children the truth and then ask them what you should do."

Because the answer is so simple.

We are changing the climate, and it's caused by carbon dioxide, and it's caused by us burning fossil fuel.

Okay, we'll stop doing that.

Henk Rogers' Four Missions

Anna Covert [00:59:25]:
One of the things I'm really passionate about is stopping war, right?

Because the industrial war complex, and in America our war machine, in one day we create more emissions than 150 countries do in an entire year.

In one day of the American war machine.

Henk Rogers [00:59:46]:
Wow. The military-industrial complex.

Anna Covert:
Yes. Eisenhower called it that. Thank you.

Henk Rogers:
So my four missions are: end the use of carbon-based fuel; end war, which I'm very bad at; make a backup of life by going to other planets; and find out how the universe ends and do something about it.

That last one, I think, is there to make the other ones seem small.

Because in the scope of things, everything we do on this planet is minute.

Anna Covert [01:00:14]:
But it all impacts everything.

We know now with quantum physics that what we do here does impact the rest of the universe.

Henk Rogers [01:00:21]:
We don't know yet. We don't know yet.

There's a lot of things we don't know yet.

Could Tetris Become a Form of Meditation?

Anna Covert [01:00:27]:
Yeah. Interesting.

Do you meditate?

Henk Rogers [01:00:30]:
I'm not a meditator. I'm a sleeper.

Anna Covert [01:00:35]:
I wanted to get into meditation, but...

Henk Rogers [01:00:42]:
Trying every once in a while.

Anna Covert [01:00:45]:
Yeah. We've got a lot going on.

Henk Rogers [01:00:46]:
Well, transcendental meditation became popular, TM, when I was in high school.

I couldn't afford it back then, and then I never got around to it.

Anna Covert [01:01:01]:
We love it.

I'm big into it. I wasn't always, but in the last two years I've gotten really into meditation.

One is this free app, 100% free, from Sadhguru.

That's transcendental meditation. That's just like a seven-minute, 12-minute, 21-minute.

And that's gamification. As a game developer, you'd really appreciate the app in general.

But then we were doing Dr. Joe Dispenza, and it's really incredible what you can experience when you go in.

Henk Rogers [01:01:27]:
I think that playing certain computer games will take you into a meditative state, and I think Tetris is one of them.

I'm going to create a version of Tetris which is like Tetris meditation.

Basically, five minutes in the morning, five minutes at night.

Anna Covert [01:01:56]:
Listen to some affirmations?

Henk Rogers:
No, because my understanding of meditation is that you try to think about nothing.

You think of something and you say, "Okay, get rid of that."

You think of something else. Get rid of that.

Until you're not thinking about anything.

We achieve that with Tetris in a couple of minutes.

Henk Rogers [01:02:16]:
You're not thinking about anything while you're playing Tetris.

You're not thinking about, "Oh my gosh, I'm going to be late for work."

You just think about nothing except that.

And Tetris itself is...

Anna Covert [01:02:28]:
Meditative.

Henk Rogers [01:02:30]:
It's really nothing.

You're not building anything. Well, you're doing something, but it's not like life, right?

There's no stress that you're building up, like, "I've got to do something or I won't be able to eat tomorrow."

Anna Covert:
It's true.

Closing Remarks

Anna Covert [01:02:52]:
Well, thank you so much for being here.

And to all of my subscribers, we just reached 250,000 subscribers on YouTube, and it's because of you and your aloha.

So continue to subscribe. If you have not yet subscribed here on YouTube or on any of your favorite channels—Spotify, Apple, Amazon, iHeart—I cannot wait to see you next week in the pixels as I interview another industry expert and topic so you succeed on and offline.

Aloha.

Henk Rogers [01:03:19]:
Aloha.

Comments Off on Episode 133 – Henk Rogers

Episode 132 – Chip Comins

By |2026-09-25T22:13:01+00:00September 24th, 2026|Podcasts|

Can America Power the AI Revolution? The Energy Crisis Behind Our Technology Boom

Artificial intelligence may feel digital, but the infrastructure powering it is decidedly physical.

Every AI query, model, and data center ultimately depends on electricity. And as artificial intelligence expands alongside electric vehicles, battery storage, and the broader electrification of the economy, one question is becoming increasingly difficult to ignore:

Can America’s electrical infrastructure actually keep up?

On this episode of The Covert Code Podcast, Anna Covert sits down with renewable energy leader Chip Comins to explore the energy challenge behind the technology boom.

Comins is the founder, chairman, and CEO of the American Renewable Energy Institute (AREI), the founder of AREDAY, and Chairman of the American Energy Initiative‘s HVDC SuperGrid effort.

AI Has a Physical Infrastructure Problem

The AI revolution isn’t happening somewhere in an invisible cloud.

It is happening inside enormous physical data centers filled with computing equipment that requires electricity, cooling, and supporting infrastructure.

At the same time, America’s demand for electricity is being influenced by much more than AI. Electric vehicles, battery systems, connected devices, industrial electrification, and other technologies are changing how electricity is generated, transmitted, and consumed.

For Comins, that makes the energy conversation inseparable from the technology conversation.

If the United States wants to remain competitive in artificial intelligence and advanced technology, it must also consider whether the infrastructure underneath those industries is prepared for dramatically different patterns of electricity demand.

What Is an HVDC SuperGrid?

At the center of the conversation is a technology known as High Voltage Direct Current, or HVDC.

America’s traditional transmission infrastructure primarily relies on high-voltage alternating current. Comins argues that HVDC offers an important advantage when electricity needs to move efficiently across very long distances.

His vision is ambitious: create an underground, coast-to-coast, and border-to-border HVDC mesh network across the continental United States.

You can explore the HVDC SuperGrid initiative here.

The key word is overlay.

Comins isn’t proposing that America rip out its entire existing electrical system and begin again. Instead, the HVDC network could operate alongside existing infrastructure, connecting into regional systems through upgraded substations and other points in the grid.

Moving Energy From Where It Is Generated to Where It Is Needed

One of the biggest challenges with renewable energy isn’t simply producing electricity. It’s getting that electricity where it is needed, when it is needed.

A region may have enormous solar resources while demand is hundreds or thousands of miles away. Another region may produce significant wind power but lack sufficient transmission infrastructure to move that electricity to another market.

A more interconnected transmission network could help address that mismatch.

During the episode, Comins illustrates the concept by imagining renewable electricity moving between distant regions of the United States rather than remaining constrained by today’s transmission boundaries.

America Doesn’t Really Have One Grid

Another important part of the discussion is the structure of America’s existing electrical system.

Comins explains that the continental United States is broadly divided among the Eastern Interconnection, Western Interconnection, and the Texas grid.

These systems do not operate as one seamless national electricity network.

That becomes increasingly important when electricity demand is growing in one location while abundant generation may exist somewhere else.

The proposed SuperGrid is intended to create another layer of connectivity capable of moving electricity across greater distances.

Why Put the SuperGrid Underground?

Transmission isn’t only an engineering challenge. It is also a land-use, permitting, and public-acceptance challenge.

Large overhead transmission projects can face significant opposition from communities that don’t want major power lines crossing their property or changing landscapes.

Comins argues that burying an HVDC system could help address some of those concerns while potentially improving resilience.

The conversation explores using existing transportation corridors—including interstate highways and railroad rights-of-way—to create energy corridors rather than requiring entirely new routes across the country.

Underground infrastructure also introduces a broader discussion around resilience, extreme weather, and security.

The Data Center Challenge Isn’t Just Electricity

AI data centers create another infrastructure challenge: cooling.

Large computing facilities can require substantial cooling resources, making water availability part of the conversation in some regions.

That’s especially significant in parts of the western United States already facing water constraints.

Where data centers are built, how they are powered, and how they are cooled may therefore become increasingly interconnected decisions.

Could Existing Infrastructure Become the Foundation?

One of the most interesting ideas in Comins’ proposal is using infrastructure corridors America already has.

The interstate highway system stretches across the country. Rail corridors connect major regions and commercial centers.

Rather than creating every right-of-way from scratch, Comins believes those corridors could potentially play a role in a national transmission buildout.

That doesn’t make the regulatory process simple. Federal agencies, states, utilities, transportation departments, infrastructure companies, and private landowners could all become part of the equation.

But it reframes the challenge.

The question becomes less about whether America has corridors connecting the country and more about how those corridors might be used differently in the future.

A $2 Trillion Infrastructure Vision

Comins estimates that building the nationwide system he envisions could cost approximately $2 trillion.

He describes the concept as a public-private undertaking in which existing utilities and infrastructure operators would continue playing significant roles rather than creating an entirely separate electricity ecosystem.

The broader American Energy Initiative presents the SuperGrid as part of a modernization strategy designed to support a national electricity market and growing energy demand.

Renewable Energy Is Also an Economics Conversation

For Comins, renewable energy isn’t simply an environmental issue.

It is an economic and competitiveness issue.

If AI, manufacturing, and other advanced industries increasingly depend on massive quantities of electricity, then the availability, reliability, and cost of that electricity could influence where those industries grow.

That makes energy infrastructure part of America’s broader technology strategy.

The future of AI may therefore depend as much on transmission lines, substations, and generation capacity as it does on chips, algorithms, and software.

What Hawaii Can Teach the Rest of the Country

The conversation becomes particularly relevant from Anna’s home in Hawaii.

Hawaii has established a goal of reaching 100% renewable electricity by 2045 and has become an important testing ground for solar, batteries, and distributed energy.

Anna shares her own experience participating in a battery program in which stored residential energy can support the broader grid during periods of demand.

It demonstrates a larger shift in how we think about electricity.

A home with solar panels and batteries isn’t necessarily only a consumer anymore. Distributed energy resources can potentially become part of a larger, coordinated electricity system.

From Virtual Power Plants to a National SuperGrid

Virtual power plants offer an interesting parallel to the national concept discussed in the episode.

Thousands of individual batteries, solar systems, or other distributed resources can be coordinated to behave more like a larger power resource.

Comins’ SuperGrid concept tackles a different scale of the same fundamental challenge:

How do we connect energy resources to demand more intelligently?

One happens at the distributed level. The other happens through massive transmission infrastructure.

Both demonstrate why the future grid may look very different from the centralized, one-directional electricity system of the past.

Energy, AI, and America’s Next Infrastructure Era

The scale of the proposal is enormous.

So are the forces driving the conversation.

AI is growing. Data centers are expanding. Transportation is becoming increasingly electrified. Homes and businesses are adding batteries. Renewable generation continues to develop. Electricity is becoming more deeply embedded in nearly every part of modern life.

That means the infrastructure underneath all of it matters.

America spent previous generations constructing railroads, highways, telecommunications networks, and the electrical grid.

The question now is whether another major infrastructure transformation is beginning.

Technology Alone Isn’t Enough

Comins has spent decades not only working in renewable energy but also using storytelling to communicate environmental and energy issues.

His film work includes serving as an associate producer of Racing Extinction, and he has produced and directed documentary content for educational and broadcast audiences.

That experience shapes another important theme of the episode: infrastructure transformation requires public understanding.

Technology may provide possible solutions, but people still need to understand why change is necessary and what those solutions could mean for their lives.

Optimism—and Execution

Despite the scale of the challenges, Comins remains optimistic.

The technologies already exist.

Renewable generation exists.

HVDC transmission exists.

Battery technology exists.

What remains is the far more complicated challenge of bringing technology, capital, infrastructure, policy, and public support together at sufficient scale.

And as artificial intelligence accelerates electricity demand, the timeline for answering those questions may be getting shorter.

Connect With Chip Comins

American Energy Initiative:
https://americanenergyinitiative.net/

American Renewable Energy Institute / AREDAY:
https://areday.net/

HVDC SuperGrid:
https://areday.net/hvdc-supergrid/

LinkedIn:
https://www.linkedin.com/in/chipcomins

American Spirit Productions:
https://americanspiritproductions.com/

Watch The Full Episode

Watch the complete conversation with Chip Comins on The Covert Code Podcast and subscribe for more conversations exploring technology, business, innovation and the forces shaping our future.

Can America Power the AI Revolution? The Energy Crisis Behind Our Technology Boom

The Covert Code Podcast | Episode 132

Host: Anna Covert
Guest: Chip Comins

This transcript has been edited for readability, with obvious transcription errors in names and technical terminology corrected. Statements and estimates are those of the speakers.

Episode Transcript

Anna Covert [00:00:16]:
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: Can America power the AI revolution? The energy crisis behind the technology boom.

My very special guest is Chip Comins, a renewable energy leader, filmmaker and producer. Chip is the founder, chairman and CEO of the American Renewable Energy Institute, founder of AREDAY, and chairman of the American Energy Initiative's HVDC SuperGrid effort.

For decades, Chip has worked to bring leaders together from energy, science, business, technology and media to advance practical solutions for our changing world. His work connects renewable energy innovation, public engagement and storytelling.

Today, we'll be discussing how AI is reshaping America's energy needs and what a SuperGrid of the future might look like. Thanks so much for being here today, Chip.

Chip Comins [00:01:26]:
Thanks for having me on.

Anna Covert [00:01:28]:
So, to begin, we'd love to start off with a CliffsNotes version of the Chip story. What do you think are the most important facts we should know about your journey to where you are today?

Chip Comins [00:01:40]:
Great. Well, thank you very much. I would like to start with the year that I moved to Aspen, Colorado, to pursue my skiing dreams. That was in 1982.

That journey has taken me, in the beautiful town of Aspen, through many twists and turns to the founding of the AREDAY Summit, American Renewable Energy Day, in 2004, and the subsequent founding of the American Renewable Energy Institute in 2011.

But before that, I became a filmmaker. It was in my work making films that I learned the importance and significance of renewable energy and why that's important for our world.

One thing leads to the next. We had a beautiful summit that went from 2004 through 2019, 16 consecutive summits that attracted the likes of Ted Turner five times, but also T. Boone Pickens five times.

The last time Ted came, he brought Jimmy Carter and Rosalynn Carter. I was able to host President Carter in 2014.

We have a cross-sector dialogue and a cross-section of attendees, including James Cameron, when he had produced the movie Avatar, and other notables from Hollywood like Val Kilmer and Daryl Hannah.

We also had many governors, senators, congresspeople, experts in their fields, CEOs and captains of industry representing solar, wind, biofuels and energy efficiency.

It expanded from there to talking about Earth systems, atmospheric systems, ocean systems, food, shared watersheds, regenerative agriculture—pretty much the entire gamut when we talk about sustaining our world and creating a place where we can all live and breathe.

What Is an HVDC SuperGrid?

Anna Covert [00:03:56]:
That's amazing. What an incredible roster.

Before we dive into some of the really nerdy things that we all love, can you share with people who are listening and don't know what the SuperGrid is? Tell us what HVDC stands for and what it means to the regular consumer.

Chip Comins [00:04:14]:
Of course. The SuperGrid is based on high-voltage direct current, not alternating current.

The reason I have the map of the Earth behind me—you see those lights? Those are cities that are lit up at night by the grid.

The global grid is largely an aboveground high-voltage alternating current grid that has provided electricity for our homes and businesses for 100 years.

But now that the human population is exceeding eight billion, and with the invention of AI and the data centers, our needs for electricity have grown enormously.

We need to go to a much more efficient and effective way of moving our electricity. High-voltage direct current is able to go long distances with great efficiency.

With the AC system, you can only get up to about 400 miles. What we're promoting in the United States is a coast-to-coast, border-to-border, underground HVDC mesh grid in the continental United States.

It's very important to understand that it's a mesh grid.

If we were to build that along the interstate highway systems, rail corridors, river bottoms and coastlines, we could send electricity in both directions—not at the same time, but in both directions.

We could take wind from Maine and move it to San Diego. Or we could take solar from Arizona and move it to Minnesota, and we could do it at the speed of light in real time.

The last thing I want to say is that we have to solve the issue of NIMBYism, which has been a great obstacle to the expansion of the U.S. grid system.

NIMBY stands for "not in my backyard." Nobody wants to see these high-tension power lines, and they don't want them going over their homes because of perceived health effects. We also don't like the fact that we can see them. They're an eyesore.

If we bury the grid and solve that problem, that opens up the opportunity.

I also like to remind your listeners that the grid in the United States comes in three sections. There's the Eastern grid, the Western grid and the Texas grid, also known as ERCOT.

These grids don't necessarily communicate with one another very well. Some have a very high percentage of renewable energy, like Texas. About 30% of its energy comes from wind, along with a smaller amount of solar and battery storage.

I'll stop there. I think that's a pretty decent overview.

Anna Covert [00:07:16]:
It is. I think one thing people really need to understand is how much power is lost when we transmit electricity today.

You said it can go 500 miles. Well, by the time it gets to the end of that wire, to its destination, we lose 60% of the power.

It's not just an eyesore, fire hazards and the environment. It's also very inefficient, which I think is one of the biggest problems we're experiencing today.

We're looking at a model. Is this the same thing that they did in Korea?

Chip Comins [00:07:51]:
They're using high-voltage direct current in other countries. China is the leader by far, but they're not burying it. They're moving it from Inner Mongolia down to Beijing.

They have large runs of a thousand miles, and they know the benefits of changing from an AC to a DC system.

At the end of the day, whoever has the cheapest energy is going to rule the roost. It will be the leader on planet Earth.

Right now, we are playing second fiddle, third or fourth down the line.

The SuperGrid concept and the HVDC concept are very well known throughout Europe. But remember, it's very complicated in Europe. There are more than 30 countries, and they don't all have the same system.

Think of what it would be like if all 50 of our states had their own separate systems and weren't connected, instead of just three: Eastern, Western and Texas. It would be much more difficult.

Still, the difficulties are enormous, and we can solve them with this system that we're promoting, based on my colleague Sandy MacDonald's work that he created at NOAA.

We can get into that a little bit later.

Who Would Own and Finance the SuperGrid?

Anna Covert [00:09:07]:
One of the things I think is also very interesting is that people don't really understand that, in a lot of places like here in Hawaii, the utility company is really the only monopoly.

You can decide where you want cable, but you cannot decide where your power comes from. In places like Texas, you can.

That's because of the upfront investment in the technology that we're now kind of grandfathered into.

When we look at places like Texas, where it's more open and you could throw a shoe and hit a utility company, what would be the ownership structure of this SuperGrid?

Who would own it? And what would happen to independent power companies?

Chip Comins [00:09:53]:
The ownership structure we're promoting is a national grid that is paid for by the consumer. We don't want the taxpayer to pay for it.

We want the grid to be managed by those who already manage the grid system. We don't need to reinvent the wheel here. We just need to make smarter use of our technology.

How would we go about funding it? Obviously, this is a true public-private partnership.

Most of the railroad corridors are owned by private railroad interests. The interstate highway system goes through the 48 lower states here in the continental United States, and each state Department of Transportation would have to be part of that.

It's expensive to do the entire nation as we're envisioning it. It would be somewhere in the neighborhood of $2 trillion, with a T.

But that's not a lot of money when you look at our national debt and our annual GDP, which is $40 trillion. We have the ability, as the world's largest economy, to do this, and it would pay for itself within the first couple of years.

Anna Covert [00:11:22]:
I would imagine the first thing would be kind of like straight across. You're creating the grid, and then you're going to rely on local substations and other infrastructure to carry it into homes, correct?

Hopefully, they're now going through the process of updating their equipment and burying wires and things like that.

They would become the power center, and we would still use the same infrastructure we have now to disseminate electricity.

Chip Comins [00:11:49]:
We're promoting an overlay. We're not talking about replacing the preexisting grid. We're talking about working with it and then integrating through reconfiguring the upgrades at the substations and so forth.

It does get into some great engineering complications, but suffice it to say that we have the technology. We know how to do this.

The computer models have indicated that, were we to do this on the planet, we would actually decrease our carbon throughput by 40%.

That's a whole other conversation. But the reality is that how we produce energy—coal, oil, gas, nuclear, hydro, solar, wind and geothermal—is creating the problem we're experiencing with these massive floods, droughts and wildfires sweeping across the planet.

We need to connect the dots and tell the truth about why it's happening and how we can stop it and, in fact, reverse it.

Virtual Power Plants and Renewable Energy

Anna Covert [00:12:54]:
Absolutely. I think this is a concept that's becoming more common.

We're already seeing markets like New Jersey and California starting to talk about virtual power plants, where someone who has solar and a battery can opt in.

I have that here in Hawaii to help offset the state's reliance on coal.

A few years ago, we shut down the coal facility, and I was part of a battery rebate program where the state paid me to get my Powerwall.

Now, every night, I allow them to draw from my Powerwalls to help offset the grid.

Community solar, virtual power plants and using distributed resources are becoming more common.

This is a bigger example of that—someone in Arizona could help someone in New York.

Chip Comins [00:13:47]:
Absolutely. The fact of the matter is that we're energy agnostic. This grid will take energy from any source.

But we feel that Wall Street needs to lead this change forward, and that goes to the lowest cost of power.

The reality is that solar and wind are the lowest-cost sources of energy.

The numbers are approximately two cents per kilowatt-hour for solar and wind, four cents for natural gas, eight cents for coal and fifteen cents for nuclear.

With those numbers, it doesn't take a financial genius to figure out the way to go here.

What's going to lift everybody's ship will be the buildout of utility-scale renewable energy, primarily solar.

AI, Data Centers and Growing Electricity Demand

Anna Covert [00:14:55]:
One thing I think we have to discuss is demand charges.

If you use more power or you use power during peak times, you get a charge.

Let's talk about these data centers in your new model. A data center is going to use a lot more power than a homeowner would.

How is it going to work so that everyone can get a fair share of power? Is there a plan for that in place?

Chip Comins [00:15:26]:
Quite frankly, right now, as you know, it's the Wild West. There aren't any plans in place.

They're putting up thousands of data centers as quickly as they can get communities to let them.

There's quite a bit of resistance because of what you're saying. There's no way to get the power or the water.

Don't forget, these CPUs have to be cooled with fresh water, and water is in very short supply, especially here in the West and the Colorado River drainage.

We just had to cut 20% in Arizona, Nevada and California because it did not snow adequately in the Colorado Rockies last winter.

We're really experiencing massive effects of this 20-year drought that we're in right now.

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The Covert Code Podcast Reaches 250,000 Subscribers

By |2026-09-25T22:24:55+00:00September 21st, 2026|Press Releases|

I have some pretty exciting news to share: The Covert Code Podcast has officially reached 250,000 subscribers.

A quarter of a million people. Even writing that feels a little surreal.

When I started The Covert Code Podcast, the idea was really pretty simple. I wanted another way to continue the conversations I had started in The Covert Code: Mastering the Art of Digital Marketing, while creating a place where I could talk to smart, interesting people about the things happening around us in real time. Digital marketing was naturally where we started, but anyone who has been listening for a while knows that my curiosity rarely stays in one lane.

The podcast has grown right along with that curiosity. We have talked about artificial intelligence, entrepreneurship, leadership, publishing, technology, renewable energy, branding, human behavior, business growth, and what it means to build something meaningful in a world that seems to change faster every year. Some of my favorite episodes have been the ones where we started with one topic and ended up somewhere completely unexpected because a guest said something that made me stop and ask another question.

That is probably the part of podcasting I love most. I get to learn.

250,000 People Chose to Be Part of the Conversation

There are a lot of numbers we measure in the digital world. Impressions. Clicks. Views. Followers. Engagement. Conversion rates. I have spent most of my career looking at numbers like these, so I understand better than most that a metric without context does not mean very much.

But this number feels different.

Reaching 250,000 subscribers means 250,000 people made a conscious decision that they wanted to hear another conversation. They wanted to meet another guest, learn about another idea, or come back and see what we were going to talk about next. That is what makes this milestone so meaningful to me.

Some of you have been watching since the early episodes. Others found us through one particular guest or topic. Some came through the book, some through social media, and some probably clicked on an episode because YouTube decided it was something you needed to see that day. However you found us, I am incredibly grateful that you stayed.

The Show Has Grown, But the Goal Has Stayed the Same

I never wanted The Covert Code to become a podcast where people came on, gave the same polished answers they had given a hundred times before, and left. I want to understand how people think. I want to know why they made a decision, what changed their mind, where they failed, what they learned, and what they believe is coming next.

That means we have been able to go much deeper than marketing. The conversations in our podcast library now stretch across industries and ideas, but there is a common thread running through almost all of them: people trying to build, create, solve, improve, or understand something.

I think we need more of those conversations.

Technology is changing incredibly quickly. AI is altering how we work and how information is created and discovered. Our energy systems are being pushed by new demands. Businesses are figuring out how to stay human while automating more of what they do. Leaders are trying to build trust in an environment where people have access to more information than ever before.

There are no shortage of questions to ask, which is good news for me because I have no shortage of questions.

I Have Learned Something From Every Guest

One of the greatest privileges of hosting this show has been getting to sit down with people I genuinely want to learn from. Founders, CEOs, authors, coaches, technologists, energy leaders, entrepreneurs, and people who have spent decades becoming very good at something have trusted me with their stories and their time.

I do my homework before every episode, but I also try very hard to listen during the interview rather than simply work my way down a list of questions. Sometimes the best part of an episode comes from something I never planned to ask.

To every guest who has joined me: thank you. Thank you for being willing to share what you know, but also for being willing to talk about what did not work. Those honest parts of the conversation are often where the most valuable lessons are hiding.

Consistency Really Does Compound

One of the things I have been talking about a lot lately is authority and how it is built. We have explored that even more deeply through the conversations and resources surrounding the show, because I believe authority today is less about telling people you are an expert and more about giving them enough access to your thinking that they can decide for themselves.

A podcast is a perfect example of that. One episode probably will not change everything. But one episode becomes ten. Ten become fifty. Fifty become one hundred. Suddenly you have created an entire library of conversations, insights, and ideas that did not exist before.

That is how I think about this milestone. 250,000 did not happen in one day. It happened one Friday, one guest, one episode, and one subscriber at a time.

For anyone trying to build something of their own, I hope that is a useful reminder. Keep creating things that matter. Keep learning. Keep improving. Keep showing up. The results do not always happen on the timeline we want, but consistency has a funny way of compounding when you give it enough time.

Thank You for Helping Us Reach 250,000

To everyone who has watched an episode, shared one with a friend, left a comment, recommended a guest, or hit the subscribe button: thank you. You are the reason we get to keep doing this.

And if you are new here, welcome. You can explore the latest conversations on The Covert Code Podcast, browse our growing episode library, or check out the free resource hub for more tools and information you can actually use.

I am going to enjoy this milestone for a minute because 250,000 is absolutely worth celebrating. But then we are getting back to work. There are a lot more people I want to talk to, a lot more ideas I want to explore, and a lot more questions I want to ask.

Thank you for being along for the ride.

250,000 subscribers and counting.

May the Code be with you.

Aloha,
Anna

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Episode 131 – Brett Baughman

By |2026-09-22T03:46:58+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.

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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.

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

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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.

Aloha!


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See you in the pixels. Aloha.

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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If you're enjoying 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.

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Thanks for tuning in. See you in the pixels. Aloha.

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.


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