UBUNTU: Exploring a Transformational Business Leadership Philosophy with Mike Ettling

Audio UBUNTU: Exploring a Transformational Business Leadership Philosophy

Video "I Am Because You Are": Exploring a Transformative Business Leadership Philosophy

Chapter-by-Chapter Summary

Following are the sections we covered in this conversation with their summaries, along with the time location in the video and audio to follow along. The timestamps in orange correspond to the chapters in the YouTube version of the podcast episode. This video will display to the lower right as you scroll down. 

00:00 Highlights and Introduction

This segment, the "trailer" of the episode, highlights snippets that highlight the key moments of the conversation. 

04:21 Recharging in 'The Bush'

Mike Ettling recently shared his experience of taking a much-needed break in "The Bush," a term often used in South Africa to describe a retreat into nature. This is more than just a vacation for Mike; it’s a way to truly decompress.

"It's the best place to decompress."

During his five days in the wild, Mike found the peace and relaxation that only nature can provide. Being away from the hustle and bustle of city life allowed him to unwind and recharge. He mentioned that it had been a while since he last took such a trip, as life had been quite hectic.

Mike's choice to spend time in The Bush underlines an important lesson for leaders: finding personal grounding spaces is crucial. These spaces offer clarity and help recharge one's mental and emotional batteries.

After this trip, Mike appeared relaxed and rejuvenated, showing that time spent in nature can indeed work wonders. His experience reminds us all of the importance of taking breaks and finding places where we can reset, away from the pressures of daily life.

05:20 Exploring the Ubuntu Philosophy in Leadership

Ubuntu is a profound South African philosophy that says, "I am because of who you are." It emphasizes the interconnectedness of all people, highlighting how our existence is tied to the humanity around us. This idea originates from the Zulu tribe and has a universal appeal, especially in the realm of business and leadership.

Understanding Ubuntu

Ubuntu is not just a saying; it's a way of life. It teaches us that we don't exist in isolation. Instead, our lives are shaped by our relationships with others. This principle reminds us that we are part of a larger community, and our actions impact those around us.

Ubuntu in Business

In business, Ubuntu can be a guiding light. Companies thrive on relationships—whether it's between team members, with customers, or with stakeholders. The idea that "I am because you are" encourages collaboration and mutual respect.

Leadership Through Ubuntu

For leaders, Ubuntu offers a balanced perspective. It shifts the focus from "I" to "us," reminding leaders that success comes from collective effort. This philosophy supports the idea that leadership is about empowering others and building strong teams.

"I am because of who you are."

Mike Ettling emphasizes how this concept has influenced his leadership style. He believes that businesses flourish when they prioritize human connections and work together towards common goals.

A Global Connection: Ubuntu and Namaste

Bhavesh Naik draws parallels between Ubuntu and the Indian tradition of Namaste—acknowledging the divine within others. Both cultures emphasize respect and recognition of each other's essence.

Ubuntu teaches us about empathy and cooperation, offering valuable lessons for leaders worldwide.

07:26 Transitioning Leadership at Unit4

In 2019, Mike Ettling took on the role of CEO at Unit4, a company facing challenges. His mission was clear: transform Unit4 into a cloud software company. The company had a rich heritage and specialized in ERP software for service companies. This journey was not just about technological change but also about preparing for a leadership transition.

A Thoughtful Transition

Mike's approach to leadership was unique. He planned for his exit from the start, aiming to ensure a seamless transition when the time was right. He believed that every leader should strive to make themselves redundant by building a business that can continue thriving without them.

"Every leader should have a goal as to how do they make themselves redundant."

In 2021, Unit4 was sold from Advent to TA Associates, marking a pivotal moment in its journey. Mike knew that he needed to have his successor ready before the next transition took place.

Building for the Future

The process of finding and nurturing his successor started a year before his departure. Mike described this transition as "beautiful," highlighting how rare it is for leadership changes to be so well-planned and smooth in the industry.

This careful planning ensured that Simon Paris, the new leader, was not only a perfect cultural fit but also well-equipped to take Unit4 forward.

The Importance of Succession Planning

Mike's perspective on leadership is insightful. He believes that preparing for succession is vital for keeping companies vibrant and full of vitality. Leaders should focus on developing talent both within and outside the organization.

Looking back at his time at Unit4, Mike feels proud of leaving the company in a better place than he found it. He emphasizes the importance of growth—both personal and organizational—and is confident in Unit4's continued success under new leadership.

ERP Software and Its Significance

ERP, or Enterprise Resource Planning software, plays a crucial role in mid-market professional services businesses where resources are people rather than products. Mike’s experience with ERP at Unit4 contrasts with his role at SYSPRO, where ERP focuses on manufacturing resources.

The transition at Unit4 reflects not only on Mike’s effective leadership but also on his commitment to building robust systems that ensure organizational resilience and success.

12:56 Accepting Leadership at UNIT4: People Focus, Amazing Product

When Mike Ettling first joined Unit4, the company was at a crossroads. It had been taken private by Advent, moving away from its listing on the Dutch stock exchange. Despite an attempted exit in 2018 that didn’t pan out, Mike saw a lot of potential in Unit4.

A New Beginning

Mike had a longstanding relationship with Advent, the private equity firm that owned Unit4. This connection led him to take a closer look at the company and consider its future. He was intrigued by what he found.

A People-Centric Approach

One of the things that drew Mike to Unit4 was its tagline: "Unit4 – in business for people." He appreciated that their software was designed for people-centric businesses rather than manufacturing or warehouse management. Coming from SuccessFactors, an HR tech company he led for SAP, this alignment with people-focused technology was appealing.

An Amazing Product

Mike was also impressed by Unit4's product. The tech team was doing something unique by transitioning their product to the cloud without having to rewrite decades of functionality. This approach allowed them to shift from single-tenant to multi-tenant systems efficiently.

The commitment and passion for the product were palpable across the organization. Even when there were challenges with things like back office operations or sales commissions, employees consistently praised the product's excellence.

The Right Environment for Success

Mike felt that having a team deeply passionate about their product was a significant advantage. Unlike many software companies where sales teams might blame their products for failures, Unit4’s employees stood by theirs.

His confidence in Advent as great investors and shareholders also played a role in his decision to join Unit4. With all these factors combined, Mike saw an exciting opportunity to lead and grow within a company he believed had an outstanding foundation and future.

16:22 Importance of Empowering People

Empowering people is a theme that resonates deeply within successful organizations. When Mike Ettling took over leadership at Unit4, he saw that the company's greatest asset was its people. With approximately 2,700 employees, Mike's vision was clear: prioritize the people dynamic to drive extraordinary results.

A People-Centric Vision

Mike firmly believes that great software companies excel because of highly engaged and motivated employees. He knew that to achieve extraordinary value, Unit4 needed to focus on enhancing the employee experience. This meant sending a strong message about the importance of people within the organization.

Revolutionary Leave Policies

One of Mike's bold moves was to abolish traditional leave policies. At a company centered in Europe, where statutory leave is common, he proposed a new approach: "Let people take what they need." By trusting employees to manage their time and responsibilities effectively, Mike aimed to remove anxiety over leave constraints.

"Let people take what they need."

This policy change in 2019 paid off significantly by 2020 when COVID-19 brought unforeseen challenges. While other companies faced staff anxiety over time off during lockdowns and homeschooling, Unit4 employees knew they could take the necessary time as long as their work was completed.

Impact on Company Performance

The focus on empowering employees through trust and autonomy had a remarkable impact on Unit4's performance. The company introduced wellness days three times a year, where everyone could take a break and recharge.

Between 2019 and 2024, despite challenges like restructuring and the pandemic, Unit4's employee engagement scores soared by ten percentage points. This improvement from seventy to the early eighties highlighted how prioritizing people can lead to phenomenal organizational performance.

Mike's philosophy is simple: get the people dynamic right, and great things will follow. This approach has allowed Unit4 to deliver outstanding results by focusing on its most valuable asset—its people.

20:58 Being People Centric: Balancing Principles, Policies and Performance

In any organization, finding the right balance between principles, policies, and performance is crucial. It starts with a mindset that puts people first. This approach suggests that if you take good care of your people, many other aspects of the company will naturally succeed.

Principles and Policies

Every company has policies. These are the outward expressions of what a company believes is right. However, the inspiration behind these policies is what truly matters. They should reflect a mindset that prioritizes people.

In leadership, the belief is clear: take care of your team and the rest will follow. This idea is echoed in many historical figures like Nelson Mandela and Gandhi. They led movements with people at the heart.

The Balancing Act

Running a company is different from leading a social movement because there are constraints to consider. People have their own aspirations and goals which might not always align with organizational objectives.

Navigating this balance requires trust. It’s not just about saying "people first" on paper but truly reflecting it in practice. Many companies claim they prioritize their people but sometimes their HR policies tell a different story.

"We trust our people."

Trust as a Foundation

At Unit4, trust is fundamental in designing HR policies. The belief is simple: trust employees to do the right thing and to get their work done.

Practical administration like tracking time off still exists, but it’s done from a perspective of trust rather than suspicion.

Return to Work Challenges

A great example of this trust-based approach was evident during the challenges of returning to work post-pandemic. While many companies struggled with enforcing rigid return-to-office policies, Unit4 found balance effortlessly.

At Unit4, there’s no mandatory policy demanding employees return on specific days. Instead, they return based on need—like collaborating with colleagues—without unnecessary restrictions.

This flexibility has been key in maintaining trust within the organization and ensuring that policies do not imply mistrust or suspicion about remote work habits.

Overall, Unit4's approach shows how putting people first through genuine trust and understanding can lead to success and satisfaction for both employees and the organization.

25:28 Engendering a Culture of Trust

Creating a culture of trust within an organization is no small task, especially when you're responsible for a large number of people and significant resources. Trust is essential in ensuring that customers are happy and the business runs smoothly. However, building such a culture might seem risky to some, yet it has been effectively achieved in this case.

Building on a Strong Foundation

When I took on the leadership role, I found that the business already had good people who were eager to do the right thing. However, leadership was lacking. The key to establishing trust across the organization was ensuring that middle-tier leaders were strong and effective.

Role of Middle-Tier Leaders

Middle-tier leaders play a crucial role in this model of pervasive trust. They are the ones who must tackle difficult conversations when necessary.

"Your middle tier leaders need to be good leaders."

Leaders need to be comfortable addressing situations where someone might be taking advantage of the system. It's essential for them to sit down and communicate effectively, reinforcing expected behaviors.

Encouraging Open Conversations

Avoiding tough conversations can undermine efforts to build trust within an organization. The model relies on these conversations happening because they address behaviors rather than just rules.

When leaders shy away from addressing issues, it becomes challenging for the trust model to work effectively. Thus, cultivating strong leadership is vital.

Developing Leadership Skills

We focused on what I called the extended leadership team, involving direct reports and their teams. Regular meetings, team calls, and leadership lessons were part of our strategy. We invested in developing our leaders by equipping them with the right tools and focusing on those who lead people.

This approach was critical in building a culture where everyone is trusted to get their job done effectively.

28:03 Organizational Culture and Behavior Change

Changing an organization's culture is often seen as a major undertaking, and it can be a bit misleading to think about it as something you can simply "install" like software. Instead, culture is the result of collective behaviors within the company.

The Misconception of Changing Culture

Many people talk about changing the culture of an organization as if it's a straightforward task. However, it's not about flipping through a "culture deck" or making a few declarations. Culture is more than just words; it's the output of how people behave together.

Behavior Drives Culture

The real change comes from altering behaviors. You can't directly change culture, but by changing enough behaviors in the right direction, you can transform how an organization's culture feels and operates.

"You can't change culture. You can change behavior."

Identifying the behaviors that drive your current culture is key. What behaviors are beneficial? Which ones need to be adjusted? These questions are at the heart of any cultural transformation.

Strategies for Behavior Change

To shift behavior, leadership plays a crucial role. Discussions at leadership levels set the tone for what behaviors are encouraged or discouraged. Compensation plans are another powerful tool; they don't just reward people but can fundamentally shift how people act.

At Unit4, for example, aligning HR policies with desired behaviors was essential. It wasn't just about setting policies but ensuring they encouraged the right kind of behavior changes.

The Role of HR in Behavior Change

In many companies, HR policies often become disconnected from actual behavioral goals. It's not enough to have policies in place; they must drive or enable changes in behavior that align with company goals.

A successful approach involves continually assessing what behaviors are present and which need to be cultivated or changed. By doing this effectively at Unit4, they were able to strengthen their organizational culture significantly.

31:22 HR and the Role of Leadership in Culture Change

In any organization, the collaboration between HR and leadership is crucial for effective culture change. While HR plays a significant role in supporting and guiding leaders, it's essential that the driving force for cultural initiatives comes from leadership itself.

Leadership and Culture Change

A common mistake in organizations is relying too heavily on HR to lead cultural transformations. As Mike Ettling points out, this approach may not be effective. Leadership must actively take responsibility for culture change rather than delegating it entirely to HR. This means leaders should be the ones initiating conversations and setting policies that align with desired cultural outcomes.

"HR is there to enable leaders."

The Role of HR

HR's role is to enable and support leaders by providing them with the necessary tools, guidance, and frameworks. This support helps create a community among leaders where they can share insights and collaborate on culture-related challenges. However, it's crucial that leaders themselves take charge of leading their teams.

Avoiding Abdication of Responsibility

Too often, organizations fall into the trap of letting HR handle all leadership responsibilities—from performance reviews to policy implementation. When leadership abdicates its responsibilities in this way, it can be detrimental to the organization's health.

A quick health check for any organization is to assess whether its leaders are actively involved or if they are relying on HR to handle everything. When leaders are engaged and not just delegating tasks to HR, it reflects a healthier organizational culture.

Building a Strong Leadership Community

To promote effective culture change, focus should be placed on developing an engaged leadership team. This involves investing time in training and supporting those who lead people within the organization. By strengthening this layer of leadership, organizations can begin shifting their culture in meaningful ways.

In summary, while HR plays an essential supporting role, effective culture change stems from active leadership engagement. Leaders must lead by example and work collaboratively with HR to create a thriving organizational culture.

33:23 Navigating Trust Issues in Leadership

In the world of leadership, trust is both a challenge and a necessity. Leaders often face doubts about whether empowering their teams is the right move. Concerns may arise about giving too much freedom and whether this could lead to a lack of productivity. But at Unit4, this fear was addressed head-on.

Trust and Empowerment

Mike Ettling shared that while some might struggle with the idea of trusting their teams, Unit4 had "antibodies" to manage such dynamics. The culture at Unit4 was strong enough that any behavior not aligning with their values was quickly rejected by the team itself.

Handling Resistance

Although some found the transition challenging, the majority embraced it. The key lesson here is that if leaders are unwilling to align with a trust-based framework, it's crucial to make changes—even if those leaders are high performers.

"There's nothing more damaging to a business than the toxic high performer."

Dealing with Toxicity

A toxic high performer can be more harmful than a low performer who isn’t toxic. The focus should be on removing toxic elements swiftly because they can disrupt team harmony and trust.

Building Skills and Confidence

While reforming toxic behavior is difficult, improving skills and confidence is possible. Providing training and support can help team members who lack certain skills or confidence.

In summary, navigating trust issues in leadership requires a strong cultural foundation and the courage to make tough decisions for the greater good of the organization. Addressing toxicity head-on ensures that trust remains intact across all levels.

35:54 Passing the Torch: Growth Potential and Future Vision for UNIT4

Unit4, a leading provider of ERP software for mid-market professional services, stands at a fascinating juncture. With a revenue of 500 million euros, the company is just beginning to realize its potential. Operating in 20 countries, there are still 80 more waiting to be explored. The growth potential is enormous and exciting.

Unlimited Growth Potential

The market for ERP software is vast, and Unit4 is uniquely positioned within its segment. The opportunity to expand into new territories is immense. As Unit4 continues to grow, its unique approach and strong market presence will open doors to new opportunities worldwide.

A Message for Future Leaders

Mike Ettling, the Executive Chairman of SYSPRO, has a clear vision for Unit4's future leaders: "Don't change the people dynamic." This approach has been critical in building trust within the organization. It’s a belief that everyone will do their job well without constant oversight.

Mike's advice is simple yet profound: maintain this dynamic of trust and empowerment. It’s this people-first approach that has driven Unit4's success so far. Future leaders are encouraged to keep this spirit alive as it propels the company forward.

A Vision of Trust and Empowerment

The foundation of trust at Unit4 has been nurtured through years of focusing on empowering its employees. This philosophy should remain unchanged as it continues to be a cornerstone of their success.

As Mike hands over the reins, he does so with confidence that future leadership will carry on with this vision intact. The challenge lies in maintaining what makes Unit4 special while exploring new horizons.

In conclusion, Unit4’s growth potential is not just about numbers or market expansion; it's about preserving what truly matters—the people dynamic—and embracing future opportunities with open arms.

37:42 Learning from Challenges in Leadership

In the world of leadership, things often look glamorous from the outside. But for those leading companies, it can be a challenging journey. Mike Ettling, Executive Chairman of SYSPRO, shares some pivotal moments in his leadership path that taught him valuable lessons.

The Reality of Leadership

Mike discusses how leading a company is not always "moonlight and roses." While it can be rewarding and fulfilling to guide an organization to success and harness the energy of a large team, it comes with its own set of challenges. Mike is now focused on helping other leaders succeed by taking on more chair roles and enabling CEOs to experience the same fulfillment he has found.

A Tough Learning Experience

One of Mike's significant teaching moments occurred during his first CEO role. Transitioning from a big corporate environment to leading a private equity business was not easy. He realized that what had made him successful before wouldn't necessarily work in his new role. This was encapsulated by the book "What Got You Here Won't Get You There," which emphasized the need for adaptability and change.

Mike initially struggled with engaging his team and found himself failing in his role. However, with the support of a coach and a boss who mentored him, he learned that relationship-building and team collaboration were crucial skills he needed to develop further.

Navigating 2020's Challenges

The year 2020 posed another significant challenge for leaders worldwide due to the pandemic. Mike noticed other CEOs boasting about layoffs and setting up "COVID war rooms." He questioned this approach and instead focused on maintaining core principles at Unit4.

Mike set "holy grails" that included not making redundancies, not cutting marketing spend, and ensuring full bonuses were accrued. This clear vision allowed Unit4 to meet its budget without layoffs or major cutbacks, showcasing how rallying around shared goals can lead to success even during tough times.

A Team-Driven Response

Unit4's response during this period was remarkable. The team came together without setting up war rooms or making drastic cuts. Employees volunteered their time for activities like yoga classes, fostering an environment of support and collaboration.

These experiences highlight how staying true to core values and focusing on people can lead organizations through challenging periods without resorting to extreme measures.

"What got you here won't get you there."

Mike's journey underscores the importance of adaptability in leadership roles. His focus on people-first strategies has allowed him to navigate difficult situations successfully.

44:54 Personal Growth and Leadership Philosophy

Life and careers are journeys of change. Mike Ettling reflects on how he is not the same person he was in the past. Experiences shape us, and change is a part of life. Mike jokes about not being able to tie knots as he once did in the Boy Scouts but acknowledges a deeper transformation.

Embracing Change

Mike shares a pivotal insight from a leadership course centered around Martin Heidecker's philosophy: "Nothing in life has meaning till you give it meaning." This idea has significantly influenced Mike's business career. He recognizes that reactions and meanings are choices. Whether someone swears at him or praises him, Mike knows it's up to him to decide how to respond.

The Power of Choice

In business, countless situations can cause stress. However, Mike believes that choosing what to react to is crucial. Often, situations resolve themselves if given the chance. This choice of reaction is a vital skill for CEOs and leaders, preventing burnout and fostering effectiveness.

Mike observes that many leaders struggle because they give meaning to everything that comes their way. This approach can lead to burnout and inefficiency. Early in his career, Mike felt compelled to fight every battle but learned over time that not every issue requires a reaction.

Maintaining Emotional Balance

Mike emphasizes that leadership is not just about tasks but also about emotional well-being. How you react affects your emotional state and overall effectiveness as a leader. By choosing what holds meaning, leaders can maintain balance and focus on what truly matters.

"Nothing in life has meaning till you give it meaning."

Through his personal growth journey, Mike has learned the importance of selective focus and emotional resilience in leadership.

48:22 Grounding Strategies for Leaders

In today’s fast-paced world, change is constant, and it’s happening faster than ever before. As a leader, finding ways to ground yourself amidst this whirlwind is crucial. Mike Ettling, Executive Chairman of SYSPRO, shares his personal strategies for grounding and encourages other leaders to find their own.

Discovering Your Grounding Place

For Mike, grounding means returning to the basics of life. Growing up in South Africa, he finds his peace in "the bush." Spending five days in the wild helps him reconnect with the fundamental aspects of life and the circle of life itself. This natural setting allows him to strip away the complexities of modern life.

"For me, it's the bush."

Every leader should find their own grounding place—whether it’s a beach or another serene spot. Mike emphasizes that it’s vital to make time for these moments as they contribute to better leadership.

Scheduling Wellness Time

Mike shares a practical tip for leaders: schedule your health time. Make it a public entry in your calendar so your team can see it and feel encouraged to do the same. This creates a culture where health and wellness are prioritized, leading to a healthier and more productive company.

"You need to schedule your health time."

Internal Grounding Techniques

Beyond physical places, internal strategies also play a role in grounding oneself. Mike focuses on catching himself before reacting unnecessarily—deciding whether something is worth giving meaning to.

Music is another key component for him. Whether it’s jazz or classical music, taking time to listen helps clear his mind and allows it to wander freely.

"Most CEOs would admit that their good ideas don't come when they're in the office dealing with routine."

Creating space for your mind to ramble can lead to unexpected moments of clarity and innovation.

In conclusion, finding both external and internal grounding strategies is essential for effective leadership. Whether it's through nature or music, these practices can enhance well-being and lead to better decision-making.

52:59 Vision for SYSPRO and What's Next

The future for SYSPRO looks bright and full of promise. Mike Ettling, Executive Chairman, shares his excitement and vision for the company. He describes SYSPRO as an extraordinary product, particularly in the realm of manufacturing resource planning, or MRP. This software plays a crucial role in the manufacturing sector, helping businesses manage resources efficiently.

SYSPRO has its roots in South Africa, but its customer base has grown worldwide. The company’s global reach is a testament to its success and potential. Advent International acquired SYSPRO with a clear vision: to build a robust mid-market MRP company focusing on specific types of manufacturing.

Mike's mission is to empower the leadership team at SYSPRO. He believes they are skilled at executing strategies but may need guidance on what global success looks like. By combining their execution capabilities with global insights, Mike is confident that SYSPRO will thrive as both a company and an investment.

Mike also has personal aspirations to build a portfolio of chairmanships, applying his experiences to help other companies achieve similar success. His goal is to share his knowledge and leadership skills across various businesses, making them as successful as SYSPRO.

"Syspro is an extraordinary product."

In summary, the vision for SYSPRO involves growth on a global scale, supported by strong leadership and strategic execution. Mike Ettling’s personal goals align with this vision as he seeks to extend his impact across multiple companies.

54:28 Getting In Touch and Closing Thoughts

Connecting with Mike Ettling is straightforward. If you’re looking to reach out, the best way is through LinkedIn. Mike is active there and encourages people to connect with him. He’s open to engaging with others, so feel free to drop a message.

Mike thanks the podcast for having him, reflecting on the enriching exchange of ideas and experiences. His closing thoughts emphasize the power of learning from one another and how sharing knowledge can lead to growth.

This conversation highlights valuable lessons in leadership, trust, and empowerment, offering listeners a chance to reflect on their personal and professional journeys.