By The Sterling Report
For someone who started out thinking heíd be a professional drummer,
Alan Arnold has carved an enviable niche for himself in the tech world. As CTO,
Alan has led Vision Solutions in his own direct style, partnering with some of
the top people in the business. The Sterling Report chats with Alan to find out
more about his hobbies and his thoughts on the current economic downturn.
The Sterling Report (TSR): Was a career in the tech world
part of the game plan for you at an early age?
Alan Arnold (AA): I thought I would be a professional drummer, and as I
got to college, I realized that being a good musician didnít mean you could make
a living at it. I had to find something else to do as well. My father is a
career IT professional and he suggested I try technology; so I did. After my
first couple of classes I was hooked and never thought of doing anything else.
TSR: Who were your most important mentors? What were the most valuable
lessons they imparted to you?
AA: My first important mentor was Jerry Peterson. Jerry was one of the
founders of a company that I was a part of right out of college called Specialty
Insurance Services. I traveled all over the United States with Jerry and learned
that technology was only part of the solution. I needed to work hard to
understand the business problems I was trying to solve and apply the technology
to the problem. Many technologists get that point reversed and try and apply
cool technology to what they believe is a problem that needs to be solved
realizing later the old way was just fine. The dot com companies have many
examples of that issue and I am glad I learned it early in my career. Jerry also
taught me the meaning of working hard and staying focused on goals, and being
part of a start-up company also helped me define my work ethic.
Today, one of my most important mentors is Jerry Thode who I worked with at
Ernst & Young LLP. Jerryís breadth of technology and business knowledge always
reminds me to continue to work hard to learn new ways of doing things. I enjoy
meeting with him and getting his perspective on challenges I face running a
global technology company.
I would also say that I have been blessed by having worked with many great
technology professionals over the years and have learned something from almost
every person Iíve ever met.
TSR: What do you think is the ideal style of leadership?
AA: My style is one of direct communications. I believe my strength is
one of seeing the bigger picture and thinking differently than others on how to
solve issues. I have always surrounded myself with really bright people, and
that challenges me to be on top of my game and keeping my managers focused on
our objectives. I try to inspire my managers as their leader, and be very
specific on my expectations as their manager so that there are Ďno surprisesí
TSR: What are your concerns about the current recession in the US? How do
you think it will affect Vision Solutionsí long-term plans?
AA: I typically look at economic issues on a global perspective more than
just a US perspective since Vision has customers on every major continent. I can
only hope that the worldís economic engines recover soon because the more
business our customers do, the better it is for Vision since we are in business
to help them optimize and protect their critical business data.
TSR: Tell us about some of the toughest leadership decisions you have had
to make in a market that is as unstable as this one.
AA: Because of the current market economics, we have had to right-size
our business like everyone else. The Vision team has many passionate and bright
people within its organization. Letting anyone go is never any fun, and itís
especially difficult when you know the person has a family, a mortgage and a
life that your decisions will be impacting. Itís probably the worst part of
management and something that unfortunately we all learn to deal with. The
senior management team at Vision really cares about our employees, and as we
were required to adjust with the economy, we have tried to go beyond what was
Ďjust requiredí and do what was right for those affected.
TSR: What are the most exciting new projects at Vision right now?
AA: We have some great initiatives under way right now at Vision. The
first one I am really excited about is the integration of our products with our
backend Vision systems. Itís really Visionís first steps towards our Ďcloudí
computing initiative to allow our customers and partners to service themselves.
Many of the manual processes we had in place in the past are being updated to
allow customers to get automatic license keys, to do self-service on product
questions, etc. The second big initiative is taking many of the top features we
have acquired and putting those features in our other products. This is great
because it will give our customers access to solutions and processes
improvements that no one in the industry is doing today. Our current and future
customers will benefit greatly from this.
TSR: Having participated in mergers and acquisitions, as well as held out
against a hostile bid, what, in your opinion, is the toughest aspect of
acquiring another company?
AA: I have become an expert in this area and most of the experience has
come from my actual M&A work. I merged four technology companies together in
three years and my biggest lesson learned is understanding the culture of the
company you are acquiring. Changing a culture is very, very difficult, and for
most employees, there is not as big a financial incentive for them to want to
change as the more senior employees or management team. As soon as rumors start
of acquisitions, positioning starts with managers and employees. It can be very
disruptive and distract your teams from doing their core jobs and taking care of
our customers. What I am most proud of is the fact that Vision was able to do
these acquisitions without it affecting our customers. Three of the four
companies brought together were also fierce competitors in the market, and that
dynamic of the mergers should not be underestimated because it required an
additional level of building trust between the management teams.
Fighting off the hostile bid was completely different than M&A work. My focus
during that time was keeping our employees focused, our senior management team
believing in our mission and working closely with our board and outside
investors. The board of Vision and the senior management team had no issue with
being acquired, but the valuation that was put on our company was low and would
not have given a fair return to our investors, thus we fought hard as a
management team to not be acquired. In the end, we made out very well, and I
believe that set us up for growing Vision to the company it is today.
TSR: After buying up competitors, companies own multiple and disparate
product lines. How has Vision navigated the management of those products?
AA: I brought together a team of the smartest and brightest at Vision and
over a three-month process evaluated the strengths and weaknesses in each of our
products. Based on this information, I created the product road map and worked
with our senior management team and market group to put together our strategy
related to our products. Market segmentation was as important to us the mix of
our products. We found that some of the products we acquired fit very well in
the Small Medium Business (SMB) market, while other products fit much better in
enterprise class accounts. If we had product overlap in a market segment, we
looked at how many customers were using the products and made decisions to merge
key product features into one product or simply to discontinue a product and
replace it with another. These decisions are not always easy, and when you are
dealing with a development team that has been working on a product for many
years, the decision to shut the product down is a very emotional discussion.
Most people get over this after they get busy on their next project, but there
is typically some work to do on the ďbuy-inĒ process. I also believe that our
Marketing Team has done a nice job in delivering an easy to understand product
portfolio to our customers and market.
TSR: How has Visionís product profile changed after you entered into a
partnership with IBM?
AA: Vision is one of IBMís top solution providers in the world. I believe
we are still the only High Availability/Resiliency Premier Business Partner IBM
has in the world. Because of the nature of our business, we drive an estimated
$300M of hardware a year for IBM and our business partners. This is a
significant amount of Power Systems Servers and that allows us to have a great
relationship with the IBM executive team and the development labs that we do
joint development with. I work with some of the top experts in the resiliency
field at IBM and itís a very nice partnership we have.
TSR: You have many publications to your name. What made you want to get
involved with writing?
AA: Writing for me was a form of research in to subject areas. I would
start doing research and that would typically lead me into some type of
collaborative relationship with other professionals in the industry. Most of the
topics I wrote about were not being covered and it made sense to write a book
about the subject. In the earlier days of my career as a consultant, it was
easier to leave a book with my clients to explain the topics I was working with
them on than to write a custom deliverable for each of them. I was also lucky to
work with some great publishers that make the writing process much easier.
TSR: What is your favorite part of the job? And what part of your job do
you like the least?
AA: My favorite part of my job is traveling around the world giving
speeches and meeting with customers. It is really rewarding to hear about how
Visionís products are being used in the biggest companies in the world today.
Talking about issues and related solutions is rewarding in many ways. I have
been able to do more of this recently because of the great management team I
have been able to put together. They take care of most of the day-to-day
activities for me. My least favorite is harder to identify. Itís probably the
same thing most senior management people donít like dealing with and thatís
human resource issues, but that comes with the territory.
TSR: Tell us about how you have evolved professionally. If you were to
compare yourself today to the Alan Arnold from 15 years ago, what would the
differences be in terms of your approach to leadership and management?
AA: My biggest difference from 15 years ago is allowing my experience to
work for me. I have seen a lot of change over my years in the technology
industry. I work hard to keep my technology knowledge up to date, but I work as
hard to keep my business and process skills current. As I have managed larger
and larger organizations, you learn how to pull from multiple sources of
information to make decisions for the business. I have also become a better
communicator, both down to my managers, and up to our CEO and Board of
Directors. Too much or to little communications will get you in trouble. I have
also learned that I need to be careful as I design commercial software because
you donít always need to use leading-edge technology right out of the gate.
Sometimes letting technology mature is a better business decision, despite
having hundreds of programmers telling you to move all of your development to a
newer development language (so they can update their resumes). Itís better to
watch and understand the trends, and then make the right business decision.
Alan jammin' with his buddies
TSR: What are your hobbies? How do you find time to relax from work?
AA: My favorite way to relax away from work is traveling with my family.
We have traveled all over the world together and I really like the fact that my
kids are growing up with a global perspective on life. My personal hobby is
playing the drums and recording. I actually have a recording studio in my home
and enjoy composing and playing music. I have a band as well and we play charity
events in the Southern California area. Itís a great way to relax and get your
mind into someplace different. Itís amazing how many musicians there are in the
Alan Arnold is EVP and CTO for Vision Solutions and is
responsible for the global technology and services strategy for the business.
Since joining Vision in 2000, he has served in a variety of positions including
EVP of Technologies, President and Chief Operating Officer of World Wide
Operations. Prior to joining Vision Solutions, Inc., Alan was a Senior
Technology Executive in the management consulting practice of Ernst & Young LLC.
He served as the firmís subject matter expert for IBM technology and e-commerce
solutions, and was one of the founders and managers of the Ernst & Young
Advanced Development Center (ADC). Prior to E&Y, Alan worked at StorageTek (XL/Datacomp)
as the National Director of Technologies, and prior to this, he worked in
several other companies in technology and management roles. He is recognized as
an expert in advanced technologies, business process improvements and managed
availability solutions. Alan has authored or co-authored five books on
technology and business topics that have been published worldwide. He has
written numerous articles for some of the leading publications in the industry,
and has had his work presented to the United States Senate Technology
subcommittee and State of California. For interview feedback, please contact
Alan at email@example.com