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Hey folks, thanks for joining us on a brand new episode of The Leader Show with Lou Carter. Today, we are joined by Todd Olson, the CEO of Pendo, a comprehensive product experience platform that empowers businesses to prioritize product-centric strategies.
So, without any further delay, let’s find out what makes Pendo a Most Loved Workplace®.
Lou sets the tone for the conversation by asking Todd about his company, Pendo.io.
In reply, Todd describes Pendo.io as a software company that enhances other software applications by using data-driven personalization and optimization. It does this by integrating with applications people use daily, capturing data on how these applications are used, and leveraging this information to improve the user experience.
Pendo also provides analytics and personalization features to enhance user interaction. Mr. Olson concludes by stating that Pendo serves as an infrastructure for better user experiences in a world where software transforms how we interact with brands.
On a similar note, Lou asks Todd about Pendo’s work culture and why employees love working there. The latter explains that one of the key factors is being intentional about creating a positive and engaging work culture. Since the early days, Pendo has understood that to deliver excellent customer service, they need happy and engaged employees.
Todd highlights that the company emphasizes living its values, not just stating them. Pendo operates peer recognition systems to reward employees who embody these values and also uses their values to inform business decisions.
Mr. Olson also underlines Pendo’s commitment to continuous improvement and openness to feedback. He mentions meeting with every employee after their first 90 days, and despite the company growing to nearly a thousand people, he continues to engage with staff at various levels. Also, regular surveys are conducted to assess if the company is living its values and to gauge employee sentiment.
Moving on, Todd highlights the reward system at Pendo.io in response to Lou’s query about their ‘awards for living values.’ The system, known as the PENG system, is based on Pendo’s seven core values, which include a focus on the customer and direct, transparent communication. Employees can give shout-outs to colleagues who have done extraordinary work or exemplified these values through Slack, their collaboration tool.
For example, if someone has exceptionally focused their efforts on customers, they are recognized through the PENG system. At the end of each quarter, they tally these recognitions, and the person with the most recognitions for customer focus receives the ‘maniacal focused customer’ award.
Similarly, they have an award for directness and transparency given to those who provide valuable feedback, even to Mrs. Olson. This feedback-driven culture encourages everyone to speak up and contribute to making the company a better place.
Awards for each core value are given out every quarter, with plaques in their office showcasing the winners. They also have an overall award for the person who has been recognized the most. According to Olson, this system has significantly maintained its culture as the company scales.
In response to Lou’s question about his leadership philosophy, Todd mentions that many of his personal values align with Pendo’s core values. He strongly prioritizes customers and maintains direct, honest, and transparent communication.
Mr. Olson notes that his commitment to transparency might make traditional managers uncomfortable, but he firmly believes in sharing information widely within the company, as it fosters a healthier work environment.
He describes himself as a hands-on leader, refusing to shy away from tasks simply because of his title. Whether coaching a team member, helping with a sales or customer issue, or brainstorming with an engineer or product person, Todd is willing to “roll up his sleeves” to solve problems.
Additionally, he values his 20 years of experience in tech and encourages the company to leverage his insights. Rather than restricting himself to a few major decisions, Mr. Olson prefers being in the trenches and part of the team. He believes this inclusive, collaborative approach influences the rest of the company, reinforcing the perception that everyone is part of a united team working towards common goals.
When asked about Pendo’s future, Todd outlines a few key areas of focus. First, he plans to transition Pendo from a single-product company to a multi-product company. This involves launching new product lines and exploring potential acquisitions.
Additionally, Todd underscores the delicate process of merging cultures during acquisitions, emphasizing the need to combine the best aspects of both companies to create a unified and evolved culture. He stresses that they do not want to stifle the existing culture of the companies they acquire, as it’s not beneficial for either party.
Another significant area of focus is international expansion. While Pendo is predominantly US-based, Olson recognizes the need to think more like a global organization to continue their growth. They currently have employees in three additional countries, but Olson acknowledges the challenges of expanding into regions with different societal and work cultures.
He is keen on investing in understanding how Pendo can operate effectively within these cultures to ensure it’s a great place to work, not just in the US but also in countries like Japan and the UK.
Subsequently, Todd talks about the importance of understanding and respecting different perspectives. He points out the challenge of applying their core values across different cultures. For example, he mentions Pendo’s value of “directness and transparency” and acknowledges that it may have different implications in Japan than in the US or Europe.
Mr. Olson also emphasizes the need for Pendo to adapt its values in a comfortable and natural way for people in different cultural contexts. This is crucial for Pendo’s success as they strive to be a loved workplace globally, based on his belief that employees who love their work are more likely to perform their best and take care of customers effectively.
He sees this as a key strategic goal and an interesting area for innovation as Pendo expands internationally.
Todd concurs with Lou about the complexities of international cultures and how they can differ significantly. Olson points out the evolution of Pendo’s core values to better accommodate these cultural differences, making them universally applicable and understandable.
Originally, Pendo began with four values in 2014, which expanded to seven in 2016. In the current year, Pendo refreshed these values again, particularly focusing on the language used to express them. For example, he mentions how Pendo’s value of “directness” was previously expressed as “brutal honesty,” a phrase that translated very differently in international contexts.
Recognizing the potential for confusion and misunderstanding, especially as Pendo grew and employed more people from diverse backgrounds, the company revised its values to ensure clarity, translatable words, and explainability. This enhances understanding and provides a rubric for assessing potential hires’ cultural fit with Pendo’s values during the interview process.
Lastly, Todd emphasizes the importance of investing time and energy into refining these crucial cultural aspects of a company, akin to investing in any other essential aspect of the business. This, he believes, has been a significant accomplishment for Pendo this year.
Next, Lou and Todd delve deep into the implications of language and its potential to impact how people feel and perceive others. Lou points out that the phrasing of a question or statement can significantly affect the listener’s response. He uses the example of the shift from a direct question like “Who are you?” to a more inviting phrase like “Tell me more about who you are,” which could provoke less defensive reactions.
Discussing the concept of friendship and respect prevalent in many Asian cultures, Lou acknowledges that Todd is diving into these cultural nuances as Pendo goes global. He further emphasizes that the lessons learned from this expansion could be applied internally in the company’s existing setup, fostering a culture of acceptance and respect.
Lou and Todd go into much greater detail throughout this conversation.
Thank you for listening!
