Agile Businesses: Alex Curatolo On How Businesses Pivot and Stay Relevant In The Face of Disruptive Technologies
An Interview With Fotis Georgiadis
Fail fast: To pivot and stay relevant in the face of disruptive technologies, your company will need to experiment and adapt. Some of these experiments will fail and when they do, fail fast. Learn the lessons you can and move on.
As part of my series about the “How Businesses Pivot and Stay Relevant In The Face of Disruptive Technologies”, I had the pleasure of interviewing Alex Curatolo.
Alex Curatolo is a Senior Associate at Fortuna Advisors, a strategy consulting firm that helps companies embrace an ownership culture to create exceptional value for stakeholders and shareholders. Prior to joining Fortuna Advisors, Alex spent just under a decade at a boutique economic consulting firm specializing in transfer pricing and other international tax issues. She earned an MBA from the George Washington University School of Business and a BA in Economics from Wellesley College.
Thank you so much for joining us in this interview series. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
My first year in college, I took something like eight courses in eight different departments because there were so many different things that interested me. Narrowing my focus was a challenge, though I settled into economics and continued taking a little bit of everything else. I began my career in economic consulting where I quickly learned that I loved problem solving, relationship building, and use of data and analysis to support real-world solutions. I am constantly learning something new and being challenged. As I came to the end of my MBA program, I was looking to move into a position with more of a strategic focus, and feel delighted to have landed at Fortuna Advisors, with its emphasis on analysis, behavior, and purpose.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lessons or ‘take aways’ you learned from that?
When I was first starting in consulting, a partner asked me to pull some data for a particular company and (I thought) referenced a date that was about 30 years in the past. I was a bit confused based on what I knew about the timeframe of the analysis, but I was both new to the firm and the project, and I wanted to figure out how to retrieve the data myself. It took me a substantial amount of time because it was not readily available in our database. I was chatting about the difficulties with a colleague who knew more about the project than I did — and they encouraged me to ask why data from that period was needed. Turns out, I’d gotten the date incorrect by about 20 years!
Not only did this illustrate the importance of asking clarifying questions as needed, but it turned out that knowing how to locate older data came in handy later in a totally different context. So I learned that when you make a mistake, learn everything you can from it before you move on!
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?
The list of people for whom I am grateful is lengthy. I feel so fortunate to have learned from so many smart, generous, wonderful people. Since I was little, my parents have always been my biggest supporters, encouraging me to do my best, persevere, and stand up for what’s right (regardless of context). In one particularly memorable story, my mother was the parent who raised her hand and asked, “What do you mean by that?” at parent-teacher night when my eighth-grade math teacher explained that an assignment was included because “even the girls will like this one.” I aim to always ask good (even if hard) questions, speak up, and do what is right for myself, my firm, and my clients.
Extensive research suggests that “purpose driven businesses” are more successful in many areas. When your company started, what was its vision, what was its purpose?
Fortuna’s ongoing research on the link between corporate purpose and value creation echoes the fact that purpose-driven businesses are more successful. Our work is predicated on our conclusion that “High Purpose” companies outperform on a wide range of financial, valuation, and value creation metrics — and that this outperformance intensified during the COVID-19 pandemic. Our continuing vision, purpose, and reason for existing is to make the world better by making our clients better for all their different stakeholders.
Thank you for all that. Let’s now turn to the main focus of our discussion. Can you tell our readers a bit about what your business does? How do you help people?
Very big picture, Fortuna Advisors helps to improve the value of a business by delivering better insights and helping them make better decisions that lead to better behaviors. We start by helping companies measure and increase their value, importantly including the value from both tangible and intangible assets by and for all stakeholders (not just shareholders). We do this through our proprietary metric, Residual Cash Earnings, a cash-based measure of economic profit, which assesses performance based on growth, margin, and the cost of capital to realize better returns across the portfolio. We also help clients implement an ownership culture (where people across all levels of a company own decisions, results, and consequences). Our work on behalf of some of the most well-known and respected companies ultimately helps society by enabling them to better achieve their corporate purpose. One great example is how we helped Varian Medical Systems evolve their value and culture, enabling them to treat more than 40% more cancer patients within three years through the adoption of more strategic and value-focused behaviors and more meaningful investment in the future.
Which technological innovation has encroached or disrupted your industry? Can you explain why this has been disruptive?
Consulting has absolutely been impacted by the digitalization of the economy — which has been hastened along by the COVID-19 pandemic. Consulting has traditionally involved significant amounts of face time and onsite work — which has been drastically reduced during the last year or two. As the method of delivery to clients has skewed increasingly digital, we have adjusted our strategies as well.
I would also like to point out that consulting has been disrupted by the proliferation of available data. When I started my first position out of college, the database we used was updated monthly — and those updates were mailed to our offices on CD-ROMs. Sometimes it would take a few months before company reported data made it to us, the end users. Now, data updates are almost instantaneous, and the individual number of data points readily available is far greater. Big data and artificial intelligence will likely continue to make their mark on consulting moving into the future and I look forward to seeing how consulting continues to change and grow.
What did you do to pivot as a result of this disruption?
Well, I’m a direct example of one of Fortuna Advisors biggest internal pivots — converting and committing to a fully remote model. I don’t live in the city where the firm previously had an office, and it’s likely that neither I nor several of my current coworkers would have applied for positions here previously.
In terms of client work, Fortuna is in many ways continuing on a remote path. Many consultants traditionally spent Monday to Thursday on site with clients, and embracing digitalization means trying to figure out how to not only replicate — but improve — the client experience. There are a myriad of techniques and tools that allow for more effective remote work, many of which are being used widely by consultants. We continue to try new things all the time to bring additional value to the clients with whom we work.
Was there a specific “Aha moment” that gave you the idea to start this new path? If yes, we’d love to hear the story.
The pandemic was the “aha.” It hastened along a trend that had already begun because it demonstrated how our work could continue remotely. Yes, there were hiccups and adaptations, but fundamentally, we could continue to serve our clients regardless of where we (and they) were located by making use of the variety of digital tools available.
So, how are things going with this new direction?
On the whole, quite well, though we are always working to improve both internally and with clients! As an example, in our practice, we’ve found that one of the most difficult aspects to replicate has been the 5-minute hallways chats that “just happen” when you’re working in person — and can be elusive through the screen. I have been learning to be more deliberate about connecting with people than I was when I was working non-remotely, pre-pandemic.
Can you share the most interesting story that happened to you since you started this pivot?
Given that I started with Fortuna Advisors remotely and during the pandemic, I did not meet any of my colleagues or clients in-person until I had been in my role for about six months. Learning how to build relationships from scratch, virtually (sometimes deliberately and sometimes from serendipitous muddling through) added a fascinating layer to starting a new position!
What would you say is the most critical role of a leader during a disruptive period?
I believe the most critical role of a leader during a disruptive period is to communicate openly and transparently with others. During a disruptive period, uncertainty is high, and transparency builds trust — employees want to know that they can count on their leader. To make the best decisions for the organization, employees need to know its direction and goals (even if they are frequently shifting). Similarly, a leader who hears about the needs, questions, and concerns of employees is then able to make sure those employees are equipped with everything they need to be able to do their best work. This feedback loop within the organization is critical at all times, but particularly during a disruptive period with a shifting landscape.
When the future seems so uncertain, what is the best way to boost morale? What can a leader do to inspire, motivate and engage their team?
Leaders should recognize the impact uncertainty can have on their teams. They (we) must listen, and make sure team members are and feel supported — as both employees and as people. When I think back on great leaders I have worked with, I remember how in difficult times they would take a moment to speak with me, allow me to ask questions and answer me directly and honestly. I always left such meetings feeling energized, focused, and important, like I — and my specific contributions — mattered.
I also think that building in time for fun, which is often hard during a time when morale might be dipping down, is incredibly important. This is a tiny example, but during question & answer sessions or competitions, one of my colleagues will always ask the respondents if they want a standing ovation or a wave as a reward. Watching everyone try to do the wave on Teams is hysterical and can absolutely lighten the mood!
Is there a “number one principle” that can help guide a company through the ups and downs of turbulent times?
Yes — Empathy. Empathy towards employees, towards clients, and towards any other stakeholders of your organization absolutely helps people feel like they are connected and appreciated.
Can you share 3 or 4 of the most common mistakes you have seen other businesses make when faced with a disruptive technology? What should one keep in mind to avoid that?
1. Being unwilling to invest in ideas that have the potential to cannibalize your current assets. Companies need to recognize that today’s technologies will eventually become outdated and that you’ll be best prepared if you are unafraid to adopt new ones. If you don’t, you’ll end up flat footed when confronted with a competitor’s disruptive technology.
2. In the face of disruptive technology, investments need time and money to come to fruition. Cutting the innovation budget during a time of disruption to attempt to hit plan can stymy future growth.
3. Being unable to make decisions — what is sometimes known as “analysis paralysis.” This can result for a variety of reasons. Oftentimes, this is due to conflicting metrics that do not provide clear signals or signal a lack of ownership such that no one “owns” decisions. Inability to make decisions can prevent a company from being able to stay nimble and pivot to meet the changing business environment.
Ok. Thank you. Here is the primary question of our discussion. Based on your experience and success, what are the five most important things a business leader should do to pivot and stay relevant in the face of disruptive technologies? Please share a story or an example for each.
1.Turn to purpose: It is no secret that authentic purpose is a competitive advantage, and that advantage only becomes stronger in the face of disruption. I recently came across the story of Ørsted (formerly Danish Oil and Natural Gas), a company that weathered extreme challenges by turning to purpose in the face of disruption. Under the leadership of CEO Henrik Poulsen, Ørsted transformed from a struggling oil and natural gas company to a sustainable provider of wind energy. All changes may not be so extreme, but companies would be wise to consider their unique purpose during a time of transition.
2. Aim high: Continue to set aspirational goals — don’t allow the circumstances to dictate a plan for mediocracy. I would note, however, that this is predicated on having an incentive structure that supports this type of goal setting. This is a reason why Fortuna advocates a bonus plan that de-links performance from plans and has multi-year connectivity (i.e., is based on improvement over last year). In this way, if there is a down year, people are still rewarded for the value they do create and they know that if their pay is lower in a given year, that means the bonus threshold for the next year will be lower — making it easier to achieve a higher multiple.
3. Don’t forget the long term: In the face of disruptions, it can be easy to get bogged down in the immediate challenges you’re facing and let the long-term take a backseat. Be deliberate in striking a balance.
4. Fail fast: To pivot and stay relevant in the face of disruptive technologies, your company will need to experiment and adapt. Some of these experiments will fail and when they do, fail fast. Learn the lessons you can and move on.
5. Consider culture: Organizational culture is pivotal to success and doesn’t just happen. Companies like Amazon and Netflix, which have both undergone dramatic transformations in the face of disruptive technology, are explicit about the culture and leadership they want to cultivate within their organizations (Amazon’s leadership document is here and Netflix’s culture document is here). Consider embedding an ownership culture (which both emphasize), whereby you empower people to make decisions and own the results of their actions.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
Like many people, I am a fan of Ted Lasso. Towards the end of the first season, he uses a Walt Whitman quote that really resonated with me: “be curious, not judgmental.” As a consultant, I see building honest, empathetic connections with people — often people who have roles, responsibilities, expertise, and opinions that differ wildly from my own — as one of the critical factors of success on any engagement. Those types of relationships are often based on mutual curiosity and respect (but never on judgement).
How can our readers further follow your work?
Readers can find me on LinkedIn and can also follow Fortuna Advisors on our company website, LinkedIn and Twitter.
Thank you so much for sharing these important insights. We wish you continued success and good health!
Thank you, you as well!
Agile Businesses: Alex Curatolo On How Businesses Pivot and Stay Relevant In The Face of Disruptive… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.
