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| Home - CEO Spotlight - Jul 04 Issue |
CEO Spotlight: Trent Landreth, Formation Systems, Inc.
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How did we achieve it? We came to this space with a deep understanding of the unique needs of process manufacturers. We built a system from the ground up to serve the 'enterprise', not to be just a point solution. And it certainly didn't hurt that we had a four-year head start.
As a result, our product (Optiva) is the most robust solution available. In many ways, we defined this space; we helped formulate the value proposition for the industries we serve. So it was a unique situation where we found ourselves actually helping the analysts to understand just how important it was for Process Manufacturers to pay attention to what we were doing.
Angel Mehta: You just recently moved into the CEO role with Formation Systems; tell me how you've defined your top priorities with the company this year?
Trent Landreth: First, our right to compete in this market is dependent upon our ability to be, as you put it, thought leaders. The reason we have so many blue chip customers is because they know we understand this segment better than anybody else. While we currently have a significant functionality lead over our competition, it would be naïve for us to believe that we can maintain that lead without incredible focus. So, one of our top priorities is to ensure that our product continues to be on the leading edge and gives us a sustainable competitive vector.
A second priority is sales execution. The PLM market for process industries is maturing very rapidly. I think the analysts get it now. Prospects are reaching out to us. Our own growth is also a good indicator. Customers are sending us RFP's - 9 months ago that was unheard of. Of course, RFPs aren't the way you want to start a sales cycle but it is a very good indicator that customers are really starting to take notice. At this time, Formation is just the logical choice for any company in the Process Sector - so we need to take advantage of that and ride the momentum while we have it.
Angel Mehta: I want to talk a bit about leadership issues. You've worked with both large software companies like Oracle and i2, and now you're at an emerging company - what can you tell me about how the competencies required to succeed in those two very different environments are different.
Trent Landreth: Well, one fundamental issue is that to succeed at a smaller company, you have to have people that are good at more than one job...people that can contribute in more than one way. That's true for virtually every person that works for Formation Systems. You can have specialists at an Oracle - they're big enough to afford enough people to cover every function. But at Formation Systems, and every company at this stage, you need strong performers that are willing and able to step in and help in areas outside of their comfort zone. It applies to me as CEO as well - there will be times that I need to exercise my skills in sales; there's times when I need to exercise my technology skills.
Angel Mehta: You mentioned that the people you worked with at Oracle were exceptional. So do you think that if you were to take the average Oracle Manager, would he/she be capable of successfully operating in a small company? Is the average Oracle Executive or Manager capable of doing start-up specifically when the bubble market is not behind them?
Trent Landreth: It depends on what generation they were from. The folks I worked with at Oracle were superb - guys like Greg Brady, and Dan Keelan, who is here at Formation Systems obviously. Those are individuals that could succeed anywhere. But we were at Oracle during its formative years - when the company still had a startup mentality. It's a different Oracle today than it was when I was there.
Angel Mehta: If you were at an i2 or an Oracle today and a headhunter like myself approached you with an opportunity at a start-up, knowing what you know now about how technology buyers respond to early stage vendors, what questions would you ask? What conditions would a startup need to meet in order for a successful executive from a larger company to consider taking the risk, now that the potential of becoming an IPO millionaire has dampened, to some degree?
Trent Landreth: The first thing I'd be looking at is the value proposition. Are they doing something that has not been done before? Are they doing something unique? Formation Systems met that condition - they were addressing what I thought was one of the last spaces that hadn't been effectively touched. This company was solving a unique problem and it seemed to be doing it better than anybody else out there.
Next, you have to look at the size of the opportunity - about 40% of the Fortune 500 companies are process manufacturers. The market is huge, and Formation Systems is best prepared to address the need.
I'd also take a hard look at the people. Are they passionate about what they are doing? Do they "believe"… or are they just here for a paycheck. Fortunately, the people I work with at Formation Systems exemplify commitment. There is no doubt in my mind that the people working here, regardless of the position they hold, could get a great job elsewhere. But they want to be here; they know we are doing something great.
Angel Mehta: What are some of the most critical lessons that you've learned, say from past mentors, that you think every CEO should be aware of?
Trent Landreth: That's a good question. I've worked with some very talented people, but I think one I would have to mention would be Greg Brady. I think Greg left an indelible mark on IT history as i2's President - he really was a visionary business person and a sales savant. I think what I learned most from Greg was that indecision is absolutely paralyzing for a company and far more detrimental than making the wrong decision. Greg had this ability to very quickly assess any business problem and make a forceful decision; I've always tried to emulate that.
The other lessons are just values-oriented. My late grandfather is someone I try to emulate… he was a copper miner from West Virginia and had this unbelievable work ethic that I've never seen anywhere else. Hard work counts for a lot - it sounds simple, but it's just very true.
Angel Mehta: What have you had to change about yourself over the years as you progressively moved into more senior positions?
Trent Landreth: Something that comes to mind right away is that in my early career, success came as a result of my performance relative to my peers. It was about individual results. I relished the competition, but it led to this attitude that if you wanted something done right you had to do it yourself. Nowadays, I can tell you that attitude is just completely wrong. I finally realized that I was only hampering my own effectiveness and really impacting the effectiveness of the entire organization by failing to relinquish responsibilities. In the process I wasn't allowing others to show what they were capable of. Sometimes, the best thing a CEO can do is let go.
Trent Landreth is currently the CEO at Formation Systems, a PLM software developing company for process industries. Prior to that Trent was the CTO at i2 Technologies and co-founder and principal of Stonebridge Technologies in Dallas, Texas. In addition Trent has held several technical and sales position at Oracle Corporation. Trent can be reached for interview feedback at trent.landreth@formationsystems.com
Angel Mehta is Managing Director at Sterling-Hoffman, a retained executive search firm focused on VP Sales, VP Marketing, and CEO searches for enterprise software companies. He can be reached for feedback at: amehta@sterlinghoffman.net
 
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