Episode Transcript
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Announcer (00:01):
The world of business
is more complex than ever. The
world of human resources andcompensation is also getting
more complex. Welcome to the HRData Labs podcast, your direct
source for the latest trendsfrom experts inside and outside
the world of human resources.
Listen as we explore the impactthat compensation strategy, data
and people analytics can have onyour organization. This podcast
(00:29):
is sponsored by Salary.com Yoursource for data, technology and
consulting for compensation andbeyond. Now here are your hosts,
David Turetsky and Dwight Brown.
David Turetsky (00:38):
Hello and
welcome to the HR Data Labs
podcast. I'm your host. DavidTuretsky, and I have with me a
brilliant mind in the world ofhuman resources. Mike Gomez from
tasty Restaurant Group, theCHRO. Mike, how are you?
Mike Gomez (00:55):
fantastic? David,
how are you I'm good.
David Turetsky (00:58):
Mike, we are
here at the ADP Meeting of the
Minds in beautiful Las Vegas,Nevada, at the Resorts World
Campus, I guess you could callit,
Mike Gomez (01:08):
yes, the Conrad
hotel.
David Turetsky (01:10):
And right, we're
actually downstairs from the
Conrad hotel, and we've justfinished a few days of just
craziness at the ADP Meeting ofthe Minds. Now, Great stuff,
great learning, greatexperiences. Mike and I are
sitting around having a reallynice drink here talking, and I
(01:32):
said, Mike, let's tell the worldabout who Mike Gomez is. Mike,
why don't you give us a littlebit of who you are?
Mike Gomez (01:40):
Well, thanks for
asking. I guess the best way to
describe it is classicallytrained. HR general, with some
good fortune 50 brands likeat&t, PepsiCo, Walt, Disney and
the McDonald's Corporation, coolmore recently, after 20 years of
(02:01):
executive search and HR odconsulting, I've joined the
tasty Restaurant Group as theVice President of Human
Resources. We have a fairlylarge, complex business with six
brains, and that include TacoBell, KFC, Pizza Hut, Burger
King, Dunkin Donuts andBaskin-Robbins. We're in 23
states with 23 law firms. Wehave this, we have that, right.
(02:26):
And so it's a very complex role,and it's about impacting the
lives of 7500 people, right?
That is what I do.
David Turetsky (02:38):
And we're going
to talk a lot about how we
impact those lives, and how dowe actually make them feel a
part of something? But first,what's one fun thing that no one
knows or a lot of people don'tknow about? Michael Gomez,
Mike Gomez (02:52):
wow, that I enjoy
art, that I enjoy wine, that I
enjoy time with my family. AndI'm a dog lover.
David Turetsky (03:06):
Awesome. Well,
Mike, our topic for today is a
very interesting one. It's aboutthe secret sauce.
So, Mike, what is the secretsauce?
Mike Gomez (03:24):
Well, within HR, you
can find it across a number of
different platforms. We as HRprofessionals, as generalists,
concern ourselves with employerrelations and labor relations
and compensation and benefitsand staffing and OD and
training, right? These are theplatforms that we operate in,
(03:45):
right? And the secret sauce iswithin all of and it can be tied
to a benefit plan, a highperformance system, but these
are the levers that we push inHR. This is how we effectuate
change for the people we careabout,
David Turetsky (04:01):
and we really in
HR, try and show the business
the direction that they need tofocus in order to make sure
those employees really feel apart of something right.
Mike Gomez (04:14):
Well, absolutely,
look, you really need to
understand the interdependentnature of the systems you put
together in support of thebusiness, they work with each
other, and one can't beperformed without the assistance
of another, that it drives theobligation of the system. And so
(04:35):
it's understanding theseprocesses that exist throughout
the calendar year. In thebeginning of the year, it's
about performance planning in away that supports the strategic
plan, followed by developmentalfeedback from the plan, followed
by people forecasting,succession planning, management,
(04:57):
health survey, organizationalhealth. Out, and then you get
into end of the year performanceappraisal. Okay, so these are
the processes that we use, anddifferent systems support those
processes.
David Turetsky (05:10):
It seems like
it's a life cycle. It seems
like, as you mentioned, onefeeds into the other. What's the
eventual goal though?
Mike Gomez (05:18):
Employee engagement,
reduce turnover, increase sales
and profitability,
David Turetsky (05:25):
of course. So
the end result is people feeling
a part of something, knowingwhat the mission is, and being
able to provide your customerswith outstanding support.
Mike Gomez (05:36):
Exactly, in the end,
it's about the employee's
engagement against the needs ofthe business. It's about moving
knowledge and information andrewards and responsibility and
accountability into the system,and in doing so, engagement
levels go up and resultsimprove.
David Turetsky (05:57):
And you've done
this for various companies. Is
it different at an AT&T versus aTRG?
Mike Gomez (06:04):
In some ways, yes,
because you have to operate
within the culture of anorganization to effectuate
change. But I would say thatwe're all people, and we all
have the same inherent needs,and there is, regardless of
company, a similar set of socialstyles in each and ways of
(06:24):
operating that impact us ashuman beings.
David Turetsky (06:28):
So those are
basically fundamental things
about being an employer, and wecare about the employees, and
we're trying to take care ofthem, nurture them, not as much
like a family, althoughsometimes it feels like it, but
there's that trust relationship,right? There's that implicit
supply and demand relationship,which goes beyond economics. It
(06:51):
goes to more of I spend eighthours of my day or more at my
job, so it really does take alarge portion of my life, right?
Mike Gomez (06:59):
There's no question.
In the end, our employees, likeanyone else, they want to see
how much you care before theycare how much you know. Sure and
and that's about trust as well,right, sir. So we're closing the
gap between supervisors andemployees. We're educating the
supervisors how to provide andreceive developmental feedback
(07:23):
in a way that effectuates changein all of their direct reports.
It is not a easy skill. No, it'sa learned skill, and when we
start receiving feedback fromothers that we're not used to.
We can react differently. And soit has to be trained within the
(07:46):
organization, and we're doingthat now.
David Turetsky (07:47):
Well, we've seen
lots of examples where we hear
that the manager is not only thecritical link between the
employee and the organization,but it's also the broken link.
And a lot of times when thatlink breaks, employees leave
because the number one reason wehear for turnover is because the
employee and the manager don'tget along. There's that
(08:09):
friction.
Mike Gomez (08:10):
You know, it's a
great point, and I'm glad you're
bringing it up. People don'tleave companies. They leave
their manager.
Announcer (08:19):
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Salary.com. Now back to theshow.
David Turetsky (08:30):
So let's
transition Mike, what is the
answer to creating that secretsauce and creating that
engagement? What have you foundas being ways in which you can
address it?
Mike Gomez (08:43):
High performance
systems, right? The systems that
gave you the results you need ifyou want illustrations, I'll
give you a few Sure, focusing,aligning the workforce, right?
We adopted a new performancemanagement and appraisal system,
fully transparent, highlyautomated and flexible,
(09:06):
adaptable. We can makemodifications. We can use our
forms, not theirs, and it's agreat way of focusing and
aligning the workforce on allthe key accountabilities, KPIs
and evaluation standards thatmove the business.
David Turetsky (09:20):
But it's not
just about the technology. It's
also about being able to alignfrom the leadership through all
the levels of the organizationon what's important, right?
Mike Gomez (09:31):
It's no question.
It's what we did is we developeda uniform standard of excellence
by creating the performanceplans, spelling out all of the
again, accountability, KPIs andevaluation standards. The
evaluation standards are thekey, because they tell the
employee how high the bar is,and if they jump over it, they
(09:56):
win, right, right. And.
Everybody wants to know wherethat bar is,
David Turetsky (10:02):
and a lot of
times they feel it's very
subjective. And so they fightagainst the system, because how
can you win in a system that youdon't know what the criteria
are?
Mike Gomez (10:11):
Exactly! So there's
a certain level of elasticity
within those evaluationstandards. If you select a bar
that's too high, they say,Forget it. Why trial? Right? So
it's a very important piece ofthe performance plan, but
equally important to 80% of theplan, which is what I mentioned,
accountability, Scapy eyes andevaluation standards. There's
(10:34):
two other pieces, one beingcompetencies, where we're
linking the key behaviors tomerit, dollars, leadership,
influence, flexibility,adaptability, these types of
things. And then the final piecewould be, for everyone, an
individual development plan. Allyou have to do is execute it.
That's 5% okay, so 5% IDP, 15%competencies, 80% evaluation
(11:00):
standards.
David Turetsky (11:01):
Let me go back
to that, because it's really
important. So you're not onlytelling them the criteria for
success, but you're also givingthem the opportunity to
understand how they're beingjudged on how they work, which
is what the skills are and theframeworks that are necessary in
order to be able to besuccessful. Then you're giving
them an opportunity to also beable to provide a plan for how
(11:24):
do I gain those skills if thereis a deficit to be able to be
successful.
Mike Gomez (11:29):
Exactly, equally
important to getting results is
how you get there and that asupport plan and development
plan that enables you to do
David Turetsky (11:38):
So. It sounds
like the performance plan is a
great way of being able tocommunicate with the employee as
to what you expect from them,how they get it done, and how
you're supporting their growth.
Mike Gomez (11:50):
Well said, a
contract, if you will.
David Turetsky (11:53):
Yes, exactly
which a lot of people because
there's so much, I'll go back tosubjectivity, but also, because
there's so much uncertainty.
They kind of don't know whatthey're working for. They kind
of don't understand how they'rebeing judged. So this gives them
a lot of clarity, right?
Mike Gomez (12:09):
Tremendous amount of
clarity, more so than any other
plan I've ever worked with in mylife.
David Turetsky (12:14):
So you're
supporting them on the
engagement side with the how doI get work done, and how am I
successful? What are otherexamples of how they feel
supported in the organization?
It's a good question.
Mike Gomez (12:27):
In addition to
providing a plan, we provide
feedback against the plan,right? How are they doing? What?
How are we doing with training?
How are we doing against theinitiatives? Are you operating
according to behaviors? We thinkthey are important to advocate
for your employees, all veryimportant things. So feedback is
key. Succession planning, whowill be promoted and when, who
will succeed, who we're planningthe future careers of the people
(12:56):
that work for us. That'simportant. These are important
things to do, as well as askingthem how well we're doing, and
so we rolled out a managementpulse survey for the first time
in six years across brands, notone brand at all six we asked
their feedback, and we werepleasantly surprised. First,
first survey out of the box atsix years, we were 78%
(13:18):
satisfied. So where it's a goodplace to start, sir, but we're
not done.
David Turetsky (13:26):
It's definitely
a good benchmark, and because it
was the first one, it's a way ofbeing able to improve, because
now you know what they're what'son their mind
Mike Gomez (13:34):
Exactly. And then
for us, and much like many other
organizations across America,people don't have a lot of time
to do performance reviews, andsadly, oftentimes they're not
done. So this is a decades oldproblem across industries and
functions where employees aren'tgetting the feedback they need,
(13:54):
and if they're not getting anyfeedback, how do you think that
affects their engagement? Thatmakes them feel like they're not
appreciated, exactly. So wemoved to a new, fully automated
and appraisal system where theemployee gets to share their
feedback, and beginning Januaryone of the new year, they
(14:15):
receive notification and theyget to go in and complete the
evaluation, one through four,plus all the other metrics that
they've been provided with, andsay how they did. And when the
supervisor goes into the systemcouple weeks later, they can see
the feedback provided by theirdirect reports. And through the
use of a dual screen featureunder the Options section, they
(14:39):
can move over the data they wantto make sure they're making
decisions that reflects theinput, incorporating what's
good, right, but also serving asthe supervisor, finalizing their
opinion on the subordinate okaywith the input of the employee,
David Turetsky (14:56):
so they're
really getting context for what
the employee. Feels like feelsabout their performance, and can
bring that into what they writeup
Mike Gomez (15:05):
again, moving the
employee and the supervisor
closer together. Yeah, so, youknow, we didn't have a lot of
success with reviews, and wewere in a low percentage, I
won't say exactly what, but now,after rolling this out, we were
at 75 okay, and
David Turetsky (15:23):
That's pretty
good.
Mike Gomez (15:23):
Now we feel more
confident about going for 100
David Turetsky (15:27):
100 usually is
very hard to attain, because
there's the onsie/twosies theydon't get done. I would shoot
for 99 first, and then 100 next,after that.
Mike Gomez (15:38):
I like to shoot for
the moon.
David Turetsky (15:39):
There you go.
That is definitely a moonshot.
We heard it here first, andhopefully, when next time we
have Mike on, well, we'll tryand find out whether or not 100%
actually happened. Mike, whatare the other ways in which you
think about the employee as awhole person and engage them
from other directions?
Mike Gomez (16:00):
Wow. Well, that's a
great it's a great question.
Let's talk about benefits,right? We're evaluating a plan
currently that we feel verycomfortable with now, following
a lot of due diligence, and it'sa unique plan because it's falls
under section 125, it's a 501(c)plan for low income workers, and
(16:25):
it fits our business, right? Wehave a lot of low income
workers, right? And sadly, manyof our workers don't have
anything left in their paycheckright after choosing some of our
benefits, sure, and thereforethey don't use them.
David Turetsky (16:39):
That's terrible.
Mike Gomez (16:40):
But with this plan,
what's so cool is that it kicks
back significant FICA taxsavings. It provides a favorable
impact to the employee as soonas they're enrolled.
David Turetsky (16:53):
Wow.
Mike Gomez (16:54):
It provides a number
of benefit options that they
never had previously, includinga $25,000 life insurance policy,
David Turetsky (17:01):
Wow.
Mike Gomez (17:02):
Okay, these things
help retain employees. So in
addition to the millions in FICAtax savings, we anticipate,
there is a secondary benefitthat we believe is greater, and
that is the reduction ofturnover.
David Turetsky (17:17):
Oh sure. I mean,
these are things that a lot of
these types of employees reallydon't have access to today,
right?
Mike Gomez (17:25):
It's very true, this
particular plan is not well
known. It's not well marketed,so you have to do your research.
And there are a lot of planswithin section 125, there are
105(b) plans that are notrequired to be audited by the
IRS, and have been subsequentlyshut down by the Department of
(17:45):
Labor. So you really need toknow what you're doing when you
get into section 125
David Turetsky (17:51):
So talk to your
benefits broker, talk to your
legal counsel about it beforeyou tread carefully into that.
Mike Gomez (17:58):
I think, I think
that would be a resource. It's
important to understandconflicts of interest. Okay, do
your own homework
David Turetsky (18:07):
Exactly.
Mike Gomez (18:08):
Don't so easily
defer to someone else's
judgment, right,
David Turetsky (18:11):
right? But
you're marketing this. It's
obviously a win, win for thebusiness. It's a win for the
employee. So how do we marketingthis serve employees, not just
prospective employees, you know,candidates, but also your
current employees. You know, youmust be doing some communication
to let them know, what is thisand how is this game changing
(18:33):
for them?
Mike Gomez (18:34):
Yes, well, it's a
great question. We're just
getting into that now with, youknow, different letters of
communication, new employeenewsletters, direct
communication to the employee.
They're supported. Attacking itfrom about six different angles,
and we're trying to make areally big deal out of it,
because we believe this is goingto be the Tasty Restaurant Group
(18:57):
"Santa-slay" coming in to savethe day, sharing benefit after
benefit after benefit withemployees who previously had
nothing and were going to relishthe impact that it has on their
lives.
David Turetsky (19:10):
And by the way,
there was some poetry in there.
I don't know if you caught it,but I think that hopefully when
your company listens to this,they realize they actually have
a poet in their midst. Now, Idon't want to demean or take
away from your message, becausethis is really a big deal for
those employees, and hopefullythat communication message comes
(19:32):
across as this is really hugefor you.
Mike Gomez (19:36):
I think, I think I
it's going to have a huge
impact, exactly, exactly whatimpact, exactly what reduction,
we don't know, but we'recautiously optimistic.
David Turetsky (19:50):
But even the
conversation about benefits in
this space, where it's notsomething that's been done, I.
Uh, more widely, but now it'sbeing introduced, there's going
to have to be some buy in.
There's going to have to be somehand holding, right? Because you
used a lot of numbers before,
Mike Gomez (20:10):
yes,
David Turetsky (20:10):
and I'm not
going to say I know what they
are, but some people are goingto be brought along for the
ride, right? I mean, it's notgoing to be a layup necessarily.
Mike Gomez (20:19):
Well, I'm not so
sure. I think it's going to be a
big win right out of the box,right out of the gate. We're
going to do some initialmarketing. We're going to get
people thinking about what'scoming, and when it hits their
check, they'll see that benefitright away. And then when they
see the benefits they had nowand nothing before they're going
(20:41):
to like it.
David Turetsky (20:42):
Yeah, I and I
think I agree with you. I think
people are going to like it.
Let's come back to that someother time. So we've talked
about engagement in terms ofperformance. We've talked about
engagement in terms of benefits.
You mentioned three things.
What's that third thing here?
Mike Gomez (21:01):
Well, it would be
dispute resolution. Dispute
Resolution, right? Resolution.
We have conflicts. Right? Ourcompliance is a big issue of HR,
sir, right, we created a disputeresolution process for employees
where, through QR code, they canaccess a network of
investigators they will listento their concerns, okay, and
document that these are trainedexperts. They're actually
(21:24):
attorneys, okay, and they knowwhat they're doing. And by
virtue of this process, we don'thave issues fester right and
become bigger issues, right? Sowe're nipping into BOD with the
pros, right, an outsourcedextension of our HR platform and
(21:47):
competencies, right? They wework hand in hand, right? The
the HR brand leaders for each ofthe brands that I have work with
these attorneys and direct them,and they do the investigations,
and in doing so, they save ourHR brand leaders time, right,
right. So therein lies thebenefit. Moreover, we're
creating what's called anadministrative remedy, and we
(22:08):
have our employees sign sayingthey're aware of it and that
they need to pursue this avenueof reconciliation for whatever
concerns they had, right? We've been operatingoff this model now for the last
(22:51):
eight, nine months, and it'sbeen an effective tool for us to
move the HR agenda and businessagenda forward.
David Turetsky (22:58):
So it's not just
an Ombudsman, which usually, you
know, you think of an ombudsmanas somebody who gets involved
and, you know, tries to figureout what happened, does a little
bit of investigation and triesto come up with a resolution
you're talking about. These arereal pros here. These are people
who really understand theissues.
Mike Gomez (23:15):
And I would also
say, with respect, that
ombudsman are professionals aswell. This is just a different
avenue, a different process.
It's an investigation. It allowsthe investigators to do work
that normally was being done byan HR brand leader, right? And
so it's offsetting that, butwe're all capturing it. We're
capturing it, and it's all themetrics and the data and the
(23:37):
reports are all built in, sure,and we know what's going on. We
know what's going on, andeverybody's obligated to
participate. These are the keys.
David Turetsky (23:48):
Is it really a
"See Something, Say Something"
kind of like, you know, ifyou're on the subway and you see
a bag that doesn't belong there,you kind of highlight it. Is it
something like that, or is itsomething deeper, like, my boss
and I had a meeting, didn't goas well as I thought. There's
something, something was saidthere that I didn't understand.
I contact this instead, or whatwhat would be, and you don't
(24:13):
have to get into scenarios, buthelp me understand, you know,
why would someone do this? Whatwould be the path for this?
Mike Gomez (24:20):
Well, we have a
couple different avenues for a
dispute resolution. One would befor lower, less serious issues.
Maybe it's your your time card,okay, or something, although
that is important as well, andthe the other platform I
mentioned is for the moreserious issue. CEOC,
discrimination, right? Right,disparate treatment, sexual
(24:44):
harassment, right, workplaceviolence, right? These are the
issues we're concerned about. Soit's
David Turetsky (24:48):
really you're
listening to your employees,
you're taking them seriously,and you're helping them get a
resolution for their the issuesthat they see around them.
Mike Gomez (24:58):
We're letting the
we're letting them. Know, we
want to know, yeah, what's goingon.
David Turetsky (25:04):
So you're trying
to help them from an engagement
perspective, by giving them theability to know what their
criteria are, and how toactually know what their career
is, where it's going. You'rehelping them with their their
benefits, and you're helpingthem with their their lives and
being able to invest inthemselves, and then you're also
(25:27):
helping them by listening tothem and trusting them.
Mike Gomez (25:30):
Exactly. And as a
result, they're more engaged,
and they do things without beingtold, because they appreciate
what we're doing for them, andthe benefits we're providing at
no cost in the impact of theircheck, right, and and the
performance feedback they'regetting and the reviews they're
(25:52):
not getting when they weren'tgetting them before, right,
right? And it's also disputeresolution. They feel empowered
because they have a resource fordisputes, they have a resource
for reviews, they have aresource for performance
planning, right? These are thethings we're offering them, in
addition to competitive benefitsthat support the families that
David Turetsky (26:16):
And I'm sorry I
interrupted you, so the what I
work for us.
was going to ask you is you'retreating them like adults now,
which I know sounds harsh, butin some organizations, we don't
take our employees as seriously,and you're not giving them the
tools they need to succeed. Itsounds like, TRG, you're
(26:36):
treating them like adults, likemature people, and you're giving
them the tools to succeed.
Mike Gomez (26:41):
Look it's a, it's a
an operating philosophy. Our
CEO, many years before I joinedthe organization, decided to
take this traditionalorganizational pyramid and flip
it on its head, with theemployees closest to the
customer being the most valuablesir, with the rest of us being
(27:03):
the servant leaders to that end,right?
David Turetsky (27:07):
Hey, are you
listening to this and thinking
to yourself, Man, I wish I couldtalk to David about this. Well,
you're in luck. We have aspecial offer for listeners of
the HR data labs podcast, a freehalf hour call with me about any
of the topics we cover on thepodcast, or whatever is on your
mind. Go toSalary.com/hrdlconsulting/ to
(27:29):
schedule your free 30 minutecall today. What would your
advice be for organizations whoare saying, I hear what Mike
saying, but it sounds like a lotof work. Where do I get started?
How do I practically change notjust our attitude to our
employees? How do I give themthese tools?
Mike Gomez (27:49):
Well, you have to
design the right human capital
strategy, okay? And you have tohave the right component pieces
that work together to drive yourbusiness. I know how to do it.
I've been doing it for a longtime. I don't think it's hard,
but there's so much that it'sjust not being seen. If you know
two times two times zero equalszero, you can't have any zeros,
(28:11):
right? So gap analysis isimportant, right? You have to
fill the gaps, even withstaffing. We run lean as an
organization. Everybody's got tobe good, right? Because the
process so the processes cutacross functions, right, right?
And so we have to move thebusiness, and we do it with the
right people in the right jobs.
David Turetsky (28:32):
What would you
say if I asked you how
leadership buys into this?
Because you can't do thiswithout leadership being at the
front of this, being able toempower not only you to get it
done, but also their people toget it done.
Mike Gomez (28:47):
It's a great
question. It's about managing
change and garnering influenceand sponsorship for the ideas
that effectuate change in yourbusiness. And there's a number
of ways you do that, but youhave to have a senior team that
trusts you and that feels youryou are, in fact, the functional
(29:07):
expert, right, the businesspartner. And with those two,
you're in position to adequatelyfacilitate change for the
business, right? But they haveto know that you know the
business, that you care aboutthe business, and you bring your
functional expertise to impacttheir business and improve it.
David Turetsky (29:27):
So if I asked
you, what were you think the
hardest thing of all thistransition, all this change,
what do you think that was thehardest thing for TRG to
overcome?
Mike Gomez (29:37):
Wow, that's a great
question. Past behavior,
David Turetsky (29:42):
yeah, especially
when it comes to performance,
evaluations, I'm sure,
Mike Gomez (29:46):
Well, you we have to
be the ones creating the
enablement, right? We can't justsay, do it, yeah, because I said
so, right? We don't work thatway in HR, right? We have to
influence. We have to show theway as servantly. Users show the
platform, show the benefits andand this is why it's going to
work. And with our performancemanagement appraisal system, I
(30:09):
did that and people bought itbecause it is user friendly. It
does make sense. People want toparticipate. They want to get
what they haven't got before,and you get them excited about
it, right? It's a transparentsystem. There is accountability,
okay? People know it, and theyknow they have to participate,
(30:31):
and it worked.
David Turetsky (30:40):
This has been
eye opening for me, because it's
interesting to hear that you canbuild a plan in HR that actually
works and actually gets employeeengagement to happen in an
extremely positive way. Andapplaud TRG for this. Applaud
you for this. I know it's not aone team, one person team who
(31:03):
gets this done, so your team aswell. Thank you very much for
being on the podcast. Iappreciate it.
Mike Gomez (31:09):
David, thank you for
the opportunity to share a
couple of thoughts. You know, inorder to be great, we have to
understand the greatness ofothers. Yeah, that's right.
Thanks for having me
David Turetsky (31:20):
My pleasure.
Mike, thank you for being here,and thank you for listening,
take care and stay safe.
Announcer (31:29):
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Labs podcast. If you liked the
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