Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Govindh Jayaraman (00:02):
Adam, welcome to paper! Naked wisdom. I'm excited to have you here today.
Adam Olalde (00:06):
Great. I'm excited. Thanks for having me.
Govindh Jayaraman (00:09):
You shared a really interesting napkin, and I think we're going to get into in the intro. I alluded to your company, but
it says, move fast, and in brackets try not to break things. Why did you share that with me?
Adam Olalde (00:28):
I'm all about jumping and building your wings on the way down.
And to me
you're always going to have to be moving for that philosophy to to have life. But when you're moving you have a higher risk of breaking things, so try not to break all the things, but break some things along the way, and you will find yourself quicker and with more enthusiasm and excitement, in my opinion, than overthinking it.
Govindh Jayaraman (01:00):
I think there's really 2 really big parts of that that you're also alluding to a little bit with the napkin, and jumping and building your wings on the way. Part of that's preparation. You got to bring a bunch of stuff with you when you jump right. You're not just jumping without the things that might be helpful on the way.
outward and hopefully upward, right.
Adam Olalde (01:22):
Yeah, yeah, of course. General Colin Powell had a great philosophy the 40 70 rule, he called it, where he never made a decision if he was less than 40% prepared. But if he had thought about it more than 70%, then he had overthought it. It was an old idea, and you need to start over. There's a sweet spot. So come prepared, but be prepared to to build the plane a little bit while it's flying, and that's how I've always lived my life.
Govindh Jayaraman (01:48):
And that's a i really like that. 40 70 rule. People talk about the other rules he has. But that 40 70 rule is really interesting because he does start over, he said. He said. The 70%. And over those ideas are old, like.
They're not worth pursuing.
And and then I think he also talked about it being based on feel right. And is that how you run it also that 40 70 rule, based on feel.
Adam Olalde (02:16):
You know, I don't know if being an entrepreneur is a gift, or if it's something you learn, we're all probably different. But I would say that the way that I became an entrepreneur is because my gut told me it was time my gut told me that I could do it, and so that gut, that entrepreneur's gut is a real thing. And it is really how a lot of us calculate
(02:39):
or make the final element of our decision. So so, yeah, it's a very real thing. How you feel is is supremely important to this.
Govindh Jayaraman (02:48):
Yeah. And and I and I agree, I think, that we're also
entrepreneurs are are really sensitive to changes in momentum. I mean.
the speed is important to your world and your napkin. But you know we're we're really sensitive changes in momentum. We can see all the numbers look good. You know we can have a whole bunch of green on our dashboards, but something could be bugging us in our gut, and we're feeling it right. We're feeling that shift in momentum, either slowing us down or picking us up, and
(03:17):
part of it is like listening to that right.
Adam Olalde (03:21):
A 100%.
And you know there are a lot of fun metaphors that I'm sure that we will uncover in the next 30 min or so being in the racing industry. But you can have the most technologically advanced race car and the most well trained driver. But when you're out there. The conditions change, and you've got to feel it. You have to feel the car. You have to feel your business, you have to feel your gut, and the older I get, and the more things that I attempt to, and then ultimately accomplish.
(03:49):
The more confident I get in believing in my gut, and no one's ever gonna tell me otherwise.
Govindh Jayaraman (03:54):
Yeah, that's awesome. So so the other part of jumping and building your wings on the way down is so preparation is part of it. But this idea that
some of what you prepared may not be relevant is also part of it, like abandoning some ideas that you may have had when you jumped off. That's also important, too, isn't it?
Adam Olalde (04:18):
That's why I love his rule about 40 70, because I'm never so married to a concept by 70% or less that I'm not willing to just let it go. If I see it's not going to work, we have to pivot. The faster you pivot, the more successful you'll be.
Govindh Jayaraman (04:34):
Yeah. And and sometimes we, you know, we like to use words like pivot instead of failing ideas, because failing feels a little more final. But there's nothing wrong with that right? You're inherent in your napkin and in your philosophy is this idea that you've just got to fail fast. You've got to fail ideas quick, and move on to the next thing right.
Adam Olalde (04:54):
You know, I I think someone told me once it's only considered failure. If it's the last decision you're gonna make. So until then, you're just learning.
Govindh Jayaraman (05:02):
Yeah, that's awesome. So let's get into how you applied this in your business extreme experience. Because, you know, I love this space. I'm 1 of those. I'm 1 of the dreamers right? That loves to rent a supercar race around a track. And that's your business, isn't it?
Adam Olalde (05:23):
That's our business. We created this thing. I created this thing so that you could experience. Someday you could realize that someday could be today, and it could be in a way that is safe and is fun and is shareable. And I was all about that. I want to live while it's worth living.
Govindh Jayaraman (05:42):
Yeah. So so
look, this, this is, this is not a small ticket business, right? This is something that takes a lot to get into and a lot to grow. So it's not a small risk. You took a big leap. You took a big leap off that cliff, and this is a big plane that you have to figure out how to build right.
Adam Olalde (06:02):
That's true. There's no beating around that bush, and there are plenty of folks who in the beginning our business is almost 13 years old now. So I've been building and trying not to break things and moving fast and doing it anyway, for quite some time now. And in the beginning it was maybe because I was 26 and naive, you know, and I had nothing to lose, or I was stupid, or what all those you know, whatever young
(06:27):
always are. But but yeah, I left off. I believed in myself, and
just been steering the plane ever since.
Govindh Jayaraman (06:35):
That's amazing. So you obviously had a picture of what this was going to look like. Right? And I think inherent in your napkin is, you had a picture of what your business was going to look like.
How did that shift like? What? What changed? You know when you think about where the business is today
versus where you started. How has it changed? What was the surprise.
Adam Olalde (06:57):
Pretty dramatically. Actually, I had an idea that people should and wanted to experience things
without having the burden of ownership or time, or whatever it took to get into some of the nicer, more fun things in life. So going with how I feel we were into feelings initially, though, it was a rental concept, and we were renting luxury cars. We were renting boats. We were renting private aircraft, and that was a business model that had existed, and I was just a new player in the market. But all of our customers in, and I'm talking in less than 10 months time
(07:36):
I picked up on the fact that our customers were calling us, saying, we don't want to rent them like we want to own them. We just want to experience them and call it a day. We want to feel the feel, the dopamine, the endorphins, the stories, the the life memory posts that come along with it, but that's all that we want to do.
And so that's exactly what I pivoted to in a very short period of time. And I started running experiences, and most folks were interested in cars. So I let the aircraft and the watercraft go, and I focused on cars, and I started following their lead and saying, How do you want to experience these cars? Oh, they're race cars. I want to experience them on a racetrack. I want to experience them somewhere where I can open up the throttle and do what these cars are designed to do.
(08:18):
But, by the way, I have no experience, so I need someone with me, who does have experience and who can teach me how to do this safely. And one thing led to another, and we quickly pivoted from
rental lifestyle to experiential lifestyle, and we grew it from there.
Govindh Jayaraman (08:32):
So
I think I think. And I don't want to miss this point because it's really important. You're building a successful business.
but you're listening to your customers. You had a pretty strong feedback loop
that allowed you to sort of harvest this really useful information that they're mostly interested in cars
and not the other stuff. So this is a real capital issue that you can deploy your capital in the direction of the people that are most interested. But the other part of it that I think, is really important is that you heard that they were interested in something that you weren't really offering, and you pivoted in their direction.
(09:07):
Explain to me what that looks like, because most of us are a little more slow about pivoting in that direction. How did you make sure that you were staying open to that.
Adam Olalde (09:18):
The good part that I learned early on was that I wasn't so passionate or so specific with the product I was trying to bring to market that I wasn't able to see the forest through the trees. What I mean by that is simply I'm not a race car driver. I'm not a mechanic.
Maybe I've become those things. But in the beginning I was a kid who had an idea and who wanted to feel the feels. I was my ideal customer more than I was an inventor of a product or service that needed to be pushed out to market. So I went to market wanting to feel
(09:52):
the way my customers wanted to feel, and so I was able to relate with them. I was able to shift and change our products and services, so that we continued to align with how we felt about things. And that's how I've always run this business. I go into the field, and I meet with our customers, and I listen to them, and I listen to what they tell me, and when they tell me that they want to elevate their experience or their engagement with our brand.
(10:16):
I ask them how. And then we create that, because since day one, that's how I created this business. And so it's always now it's been. It's kind of woven into our DNA of how I actually made change and decisions around here. I don't know another way, I would never come up with a product and force it on the market, because I'm passionate about it. I always start with the market and say, what are you passionate about? I'm the builder. All that I'm doing is facilitating the things to to give you back what you're looking for.
Govindh Jayaraman (10:41):
Yeah. And so I love that curiosity mindset. You know I love the way that you said I wasn't so passionate about the product.
But I realized that I was seeking the same experience as my client was. My customers were
so aligning yourself that way sometimes puts the entrepreneur in the position that oh, I'm the ideal customer, so I know exactly how to fulfill it.
(11:06):
You disquieted that again, and you said No, no, you asked them how
right, and then you gave them back what they were asking for when you aligned with that experience.
And now it's structural right now, that's structural. So so explain to me how you run that feedback loop now, in a business that's really grown from the idea that you were just going to start off with, you know, renting cars and planes to people.
Adam Olalde (11:32):
It's harder. There's no doubt about it. It's harder, because then you invest in an infrastructure, and you invest in the Capex and the people. So if you call me tomorrow and say, you know, what I really want is airplanes. It's a lot harder for me to just say great. And let's do that. So you've got to pick your lane, and as you get bigger you have to realize that you can't make everybody happy all the time. But every Monday
(11:57):
I review our net promoter score reports, and I read the feedback, and I read one or 2 of the positives, because I think that debriefing on your wins is just as important as debriefing on your losses. But then I go over to the detractors and I say, Okay, you you signed up for something?
Why did you not get out of it what you wanted to get out of it? Was it an expectation thing? Was it a communication thing? Or did we simply not deliver? And I need to figure out how to deliver better, and I try to organize them by quantity. You know the most feedback I've received is about
(12:33):
more time in the cars, or the brand of the car or the cities that we bring our cars to. And we address them one by one in order of significance, so that I can
take the most feedback and address it
and and and work my way down the line. And and that's just one component, right? The other component, of course, is all the feedback that you get from us before your experience during your experience with the employees right there at the, at the racetrack, at and or after your experience and all. And of course, the things that feedback to our Mps scores and all of our reviews. But we read those, and we take them seriously. And and that's, you know, part of how we've always, always, always done things.
Govindh Jayaraman (13:15):
It's really neat. So for people who don't know Nps is net promoter, score, net promoter score effectively asks one simple question to all of your customers on a scale of 0 to 10, 0 being the lowest and 10 being the highest, how likely are you to refer us, or service, or company, or product, or whatever to a friend or a colleague, and
(13:37):
and and it's pretty harsh on what's a promoter? And what's a what's a passive? And what's a detractor?
Only people who score 9 to 10 are considered promoters right? And then.
after that, passives, meaning neutrals, are 7 and eighths, and the detractors are anybody between 0 and 6. So if you're between 0 and 6, you're a detractor. And the idea why, it's called net promoter score is you do some percentage math and calculation between the 2. And if you're above 0, you have a net promoter score. That's positive net promoter score below
(14:11):
0 means that it's negative. It means that more people are likely not to recommend you than and actually negatively influence your brand. So people are 0 to 6 are likely to say bad things about you.
9 and 10 are likely to involuntarily say good things about you and the others are just not saying anything about you. Correct.
Adam Olalde (14:32):
Yeah, no, you nailed it. And that's why it's so harsh. Because, you know, 60% of the people are not your friends. And that's a lot of your customers, and the people who are your friends may not say something about it. So you have a very small margin of people. You have to get it really, really right for them to promote your brand and gives you stuff to work for.
Govindh Jayaraman (14:51):
In a higher ticket product. So some people are going to say, Oh, it's easier to wow your client with a high ticket product where you're giving people this experience. I'm going to bet you're going to say it's harder.
Adam Olalde (15:05):
That's a loaded question, and I'll tell you why. Because anyone who's trying to run a business
and have a high promotion and have a great brand that
that attracts and retains its customers.
I don't wanna say you're at odds with yourself, but that's your big, that might be your biggest challenge. And what I mean by that is, people get into business to make money. But the more customers that you have because you're selling more of your product
(15:37):
the more expenses you incur to ensure that they have a positive experience, and that takes away from your ability to to profit. And at the same time, though, if I prioritize profit over customer experience, now that customer experience is going to really show, and I'm going to profit myself right out of business. And so how do you? How do you ride the thin line? And this is.
(15:59):
you know, we would all love to say, if I'm gonna charge you a thousand dollars. I'm gonna spend a thousand dollars right back on you, and you're gonna give me a 100 net promoter score. But then, what am I in business to do? I don't have a business that has any value. So if I need to create a profit margin and deliver a hundred net promoter score.
I've got my work cut out for me. So it's not only a challenge to sell a higher ticket item just because the cost. But then it's a challenge to turn around, deliver the value that people expect for the price that they paid, and run a business profitably, and that's that's 1 heck of a challenge. One I embrace. But that's why it's a loaded question.
Govindh Jayaraman (16:37):
Yeah, it's a low question, especially with your business name being extreme experience. You're selling people an extreme experience. I mean, it's in the name, right?
Adam Olalde (16:45):
It's in the name. We have. 3 pillars here. Ensure safety, of course, is number one. Cultivate teamwork is number 2, so that we work together and deliver a positive experience. Those are the 3 pillars. Every single decision we make are based on. So it's it's part of what we do. It's what we brief.
Govindh Jayaraman (17:02):
That's amazing. So I want to get back to what you're looking at in the Nps.
If you if you see something that you're sensitive to. Let's say there's a hot button issue against one of the 3 pillars, but you only saw it in one.
Is that something you're paying attention to.
Adam Olalde (17:22):
I'm always going to pay attention to it, of course.
but going back to our ability to pivot and our abilities to move fast. I've gotta decide how and what I'm going to move to address, you know. Was it one person's concern, or was it 50 people's concerns? Obviously, if I can make 50 people happier. I'm going to start with that. But I'm not going to rule anything out.
Govindh Jayaraman (17:47):
Yeah.
So let's talk about the process. But behind you get the Nps. You're looking at them on Monday, and then, you know, you've you've got a team. You've got people who are managing various aspects of the company.
various deployments, various experiences. How do you? How do you bring that feedback to the team. What! What does that look like.
Adam Olalde (18:08):
Every Monday afternoon we have an exact meeting. I've got 8 people on my exec committee, and they represent, all the different departments in our business, and of course you know, the the 1st thing that we discuss is the prior weeks. You know the way that our business is set up for anybody who's not familiar is we are like a concert tour. So we visit different cities, bringing our program to those cities and then those cities. They conclude, and we might be there for a day
(18:33):
a week. A month depends on the size of the market. But we always review post the post the activation.
How that city responded, what were the challenges that were unique? What were the wins that were unique? And each of those departments from customer service to operations, to people and culture, they all to marketing and advertising. They all take something away from that Nps score, and it's really interesting to see how one thing
(18:58):
can be dispersed so individually, where you know? Accounting looks at it one way and got customer service looks at another way. Marketing looks at another way. Operations looks at another way, but they it's all the same customer. But how they spoke to that customer, how that customer spoke to us, how they paid us, how they didn't. All these interesting things? They weigh into it. And so we make sure to go around the circle and each take something away from it.
Govindh Jayaraman (19:25):
I love that. And I I love that because perspective is truth right when people are looking at it from their own perspective, that perspective is their truth like they're actually seeing what they see. And it's and it could be totally.
Adam Olalde (19:35):
There's no right or wrong answers other than take something away from it.
Govindh Jayaraman (19:38):
Right? Right? So where does the
try not to work in this paper napkin? Right? How do you? You know you're saying, try not move fast and try not to break things.
I think there's a part of it that is like, if it breaks, it breaks.
But you're not trying to break. You're not. You're not moving fast to break things. You're moving fast, right? What's what's that look like? What does it mean?
Adam Olalde (20:03):
Yeah, you're you're you're moving fast and acknowledging that things will break. And I think that
I added that because there's move I bought a poster when we had our 1st office right? And it said, Move fast and break things. And I was like, Well, do we have to break things, you know, and then there's, you know, don't break things. Which means you're not moving fast enough. I think the old racing saying is, if you're if you're not scared a little bit. You're not going fast enough. So there's somewhere in the middle. And you know, being in the racing industry, it was so obvious that you could get all these.
(20:37):
You know
these analogies, and then you could immediately see them on the racetrack in real life, because in real life I don't want to crash a Ferrari, but I also know that if I don't have Ferraris going around the racetrack, that means I don't have customers, which means. I'm not doing something right. I'm not appealing to them. I'm not giving them the feelings. I'm not acquiring those customers, but also you put enough people around a racetrack, and eventually someone's going to bang something up. And so
(21:01):
right there, on my 1st day of the job it was, Hey, I'm gonna move fast. I'm going to acquire customers. I'm gonna learn lessons. I'm going to put myself out there because, quite honestly, we were forming an industry along with it. This was not something that was on every street corner, in every city, so I wanted to be the 1st to market to do it, but I knew by doing that I wasn't going to be fully prepared. We were gonna put some unqualified people in some tricky situations.
(21:23):
but to maximize the experience, as I learned we might break a few things along the way, so just manage it, mitigate it. Don't catastrophically break things. Don't go that fast, but go fast enough where? Where you pick up some lessons, and you know you break a few things.
Govindh Jayaraman (21:38):
There's a really strong metaphor within that for the actual business experience that you provide. And when I did it and you talked about this. There's a person beside you right? There's an experienced driver sitting on literally your shoulder.
with experience probably in the track a little bit, but mostly experience driving cars quickly, and they're coaching you to to get to that line to get to that experiential line right.
Adam Olalde (22:08):
Yeah.
Govindh Jayaraman (22:10):
When you're going through this and coaching your team. Is that the role you're playing? You're playing the role of the the person beside the driver, pushing them a little bit faster.
Adam Olalde (22:19):
I like that. That's good, you know, being.
I always think that the Ceos, one of one of their most important jobs, is to be a curious coach, right? So I'm always going to be curious. I'm always going to be coaching. But yeah, I'm I'm there to make you feel
outside of maybe your comfort zone you're gonna have, you know, and it's easy. I'm there to push you a little bit, never to the point of breaking
(22:46):
completely. But you know, when you when you move fast, there's some stuff that you're gonna scratch up along the way, and that's my job to push the business and to push its people outside. So they realize that, hey.
most people get to a racetrack. Most people work for a business and they're 5 tenths. They're in their comfort zone. And that's where they're. That's where they're destined to stay. And they may think that 6 tenths is so far outside of their norm on a racetrack. If you've never turned a car at 80 miles an hour before or in the office, if you've never challenged an idea or tried something that could fail.
(23:20):
And that's kind of the danger zone that 60, 70%. You get to that 7 tenths, that 8 tenths. And you realize how liberating. It is because the magic all happens outside of my comfort zone, and we're still not talking 10 tens. We're just suddenly
performing at a higher level in the workplace where we have more candor, we have more communication. We try more ideas. You go to the racetrack. Once you realize that your car is not gonna roll over at 6 tenths or 7 tenths, and you actually can put the pedal down and feel what those that acceleration and what those brakes feel like in a Ferrari. It opens up your eyes entirely, and that's the move fast. You know. There's there's more out there before you even get to the limit.
Govindh Jayaraman (23:58):
I love that I remember
coming around a corner one time, and the second time I was going around the corner, and the driver and the coach beside me said.
last time you didn't floor it.
Floor this. Now I'll tell you when. And I was still in the corner, and I was definitely not comfortable with when they said it.
(24:21):
but they said it was so much confidence that I floored it, and
so I got a sense of that feeling that I wouldn't have done on my own. And I think that's really important about what the CEO's role can be in leadership, right
to help people get to that place where they're just slightly uncomfortable. But that cause that's where growth happens, too, right? We don't grow from a place that's comfortable and safe and and familiar. It's going into the unfamiliar. That's where we grow right.
Adam Olalde (24:52):
It is, it is, and I really enjoy and thrive now, and even myself. We I had to break out of my own comfort zone of how I led, or how I took chances, or how I communicated feedback to others. But I realized early on that a CEO's job was to be a facilitator. We need to facilitate conversations. We need to facilitate being uncomfortable, and then we need to facilitate pushing through that being successful.
(25:15):
clapping. You know your hands for your wins and achievements, and doing it all over again. And so now I come to work, and that's what I thrive on. Right. I thrive on
being that coach pushing myself in. But the people around me, and really seeing results come from it.
Govindh Jayaraman (25:29):
So how do you? How do you? Who does that for you now? How do you keep? How do you keep in that discomfort zone for yourself?
Adam Olalde (25:36):
For me. Rule number one, actually, probably. Well, 2 or 3 main rules rule number one is, I always go to the gym. It's all about health and fitness for me, so there's a personal plug. But go push yourself. Your body will always fight against you as you age, and so go fight back, and that nothing feels better to me than just going to the gym and fighting back number 2. I have a coach. Everyone needs a coach, and so I
(26:01):
I have a coach, and he pushes me and challenges me. And I'm in plenty of peer groups, CEO and entrepreneurship peer groups where we sit down and talk about things, because we realize that once you take out the fancy cars or the widgets, or whatever it is you do underneath the hood there's another one. They're pretty much all the same. Businesses are businesses. And
(26:21):
so between those 2, my personal challenges in physically and my my professional coaching. Those are the 2 things that really push me.
Govindh Jayaraman (26:31):
That's great.
We've been ending every episode this season with a shout out to John Rulan, John Rulan was a guest
early in his career and progression. He wrote a bestselling book called Giftology, and his early Napkin to us 11 years ago was what you appreciate appreciates, and that is what you appreciate, something in the world it appreciates in value. And he started a movement around being grateful, and it changed a lot of people's worlds so
(27:02):
as a shout out and hat tip to him because he suddenly passed away. Late last year we're asking all of our guests to put some appreciation out in the world. Is there someone who you'd like to shout out.
Adam Olalde (27:16):
Yeah, for me. It's pretty easy. Maybe it's the same for many people, but I always have said since day one that I would never be able to get out there, move fast, try not to break things, push my comfort zone and achieve results from them. If I didn't have my foundation, my my family.
and I've taken my philosophy. That I deliver in business, which is that someday could be today is today should be today, and I take that back home with me, knowing that my house is in order, is the most important thing to me. So to my wife and 2 little girls.
(27:51):
They're the ones that remind me that business is not the only thing in life. They're the ones that remind me that time is precious, and you have to enjoy it and give back. And that's what we do at work. We give everyone experiences every day, but I need to go home and enjoy that as well, because they won't be little kids forever. And so I really do enjoy how they keep me balanced. And how most importantly I do appreciate them, and I appreciate the time that I have with them when they're little, and I try to like my customers
(28:15):
who say, you know what I'm 32 years old. I'm going to go drive a Ferrari because 32 year olds don't drive Ferraris, but someday is today.
when I go home, and I see my little kids. And I say, Hey, you're not gonna always be little. So let's go do that thing that we might be putting off that we might. That might be more expensive than we should spend money on today. That might take you to a later bedtime than you should be, because you know what some days today. Let's enjoy it while we have each other that will appreciate. I appreciate it. And then, when you turn around and become better, you know, moms yourselves one day. It will be paid for it in the world. So whether it's at work or whether it's at home, the 2 things balance me, and that's always been my foundation to be successful.
Govindh Jayaraman (28:51):
If you're listening to this and didn't watch Adam light up when he talked about his family, it'd be worth finding the video and finding that. Thank you, Adam. Thanks for sharing that with me.
Adam Olalde (29:02):
Thank you for having me.