TechVibe Radio Talks to Refounder Author Patrick Colletti

Learn all about Net Health Founder Patrick Colletti's soon-to-be-released book "Refounder."

More than 20 years ago, Patrick was part of a team charged with re-starting Net Health which ultimately became one of the Pittsburgh region's largest and most successful healthcare technology companies.

Patrick will tell us how he has taken his passion for culture and high-growth environments and turned it into a movement and book detailing the concept in business, relationships and more by profiling "Refounders" from across the country.

Transcription:

So glad you're spending your Saturday morning with us here on TechVibe Radio. This is Jonathan Kersting.

And this is Audrey Russo. I am so excited for our show today. Audrey you I always say I'm excited for our show. But I'm particularly excited for this show. Because we are spending an entire show with one Patrick Colletti, good close friend of yours and mine in the Pittsburgh technology Council's and I would say the Pittsburgh technology community in general. He's a tech pioneer. So glad to hang out with him today.

Hey, guys, thanks so much for having me love spending the time with you already.

Likewise, man, it's great stuff. It's kind of cool how fast time is flying Patrick. It just seemed like it was like, maybe a few weeks ago, you're telling me about this new book that you're working on. And I think that was like, like before March before this whole COVID thing broke out. And all of a sudden, it's like 9-9 months later. And it's like this book's gonna be happening and the whole subject is around refounding of companies. I thought it was so exciting. I was like Patrick, we need you to stop by TechVibe Radio. So we can geek out with you about what you've done with your life, and what you're doing with this book, and all the great stuff in between as far as that goes. Thanks for taking the time and be part of our show today. Man, we really appreciate it. Excellent.

I appreciate the opportunity. What we'd like to do is start out so that people understand who is Patrick Right, who's Patrick Colletti? And what is his journey? And why we care about that.

Sounds great.

Well, I'll give you a couple couple of factoids. So I was part of a small, small group of people that joined a .com, startup about 20 years ago, and that startup essentially failed. And the board stepped in and laid everybody off, except for two of us. And they gave us an opportunity to lead a turnaround. And they gave us 90 days, funded the company for 90 days and said if you can, you can pull it off, you can go for it. And we did. And so we are sitting here standing here 20 years later, with what is a bonafide, according to the government, a large company, large enterprise, exactly what, we have more than 500 employees, and we blew through $200 million in recurring revenue mark. And we've got a healthcare software company that is flourishing all around the United States. So that's kind of the the snapshot of professionally what I've been up to. But as I've done that, I took a lot of time to focus on culture, big and meaningful part of the creation of enterprises for me. And I spent a lot of time with entrepreneurs, just encouraging them and coaching them. And that's given me a platform and gave me the opportunity to talk about what we're going to talk about later on today, which is written my first book.

So, let's let's just talk about the company, let's say 20 years ago, what kind of company was it? What was the vision for the company? So people know, actually what you were working on. You know, this, of course, is Net Health, based in the Strip District here in Pittsburgh as well, too.

Yeah, yeah. So the thesis back then was, it was multiple there were, you know, three or four potential product ideas. And that was one of the challenges. But you know, the startup world is tough. And sometimes you just take and tack to wherever you can find revenue, where you can find first customer. So all that is pretty normal. And so at the time, it was healthcare software, there were three or four different ideas. One was in alternative medicine, one had to do with long term care one had to do with chronic wound care. And so all of these ideas were in health care software.

So how was it that you were you were kept, but the others went away? What was it that was like, Patrick, you get the opportunity to stay and try to turn this company around? What made you want to stay and take on that challenge? I'm thinking that's that's quite the undertaking, Patrick. Yeah,

I mean, part of it is probably just being young and inexperienced, but I think Chris and I were, you know, partially crazy enough to do it. But candidly, we were young. We were scared. You know, we felt like our names and reputations are on the line. And so we were we were hard pressed and we said, let's let's do it, let's give it a shot. So nothing, you know, too amazing and brilliant. I think the reality is we were probably a little scared, young, under informed, but I can remember meeting with you obviously it wasn't 20 years ago, but let's say it was 10 years ago, and meeting with you around, actually the passion around the topic, and the work and the customers and the people's lives that you were saving. And I used to. And my thought was that you I didn't even know there was such a problem in terms of, for example, wound care management. So you create you have a lot of subject matter expertise in both the diagnostic and treatment as well as the software.

Well, thanks. Yeah, I mean, we early on set out to make a difference in terms of healthcare software. But again, we didn't know that much. So it was really about asking really good questions, spending time with doctors and nurses and health care providers and a little bit of time with patients too. And so after, after doing some of that you're able to peel the onion and find out what the problems really are in healthcare and and then it's it's trite to say, but they're Legion, the number of problems that can be fixed in health care, are extraordinary. And, and I'm excited to continue to, you know, solve those problems. But early on, it was really just about learning and then figuring out how we could save a little bit of time for healthcare providers.

Patrick your wildest dream, think that 20 years later, you'd still be at this company, and it would have you more than $100 million in recurring revenue employing 500 people I mean, that's, that would just blow my mind if I were to sit back and actually look at that and be like, Whoa! No, definitely not. I mean, thrilled, thrilled to be a part of it. But now I can't say we, we sat there and said, this is what we're going to set out to build.

So cool. And so And along the way, then you started getting this idea that the importance of doing what you did that is refounding a company. And so tell us a little bit about how you became inspired about refounding and how this kind of turned into this concept that like you know what, I'm gonna write a book about this. I'm always impressed when someone says they're gonna write a book about some things, that means you're dedicated. Thanks.

Yeah, so I mean, my experience early on was, you know, there was a difference between the people who see what is and what's broken and want to change it and those that don't. And so I would say I have been surrounded by and work with lots of people that had the founders philosophy and the founders mentality. And so it isn't always about being a founder of a company. And so there's a really expansive definition that we look at, in the book and basically it's about refounding the places we live, work and play. So relationships need refounded companies need refounded institutions need refounded. And so there are managers and people and spouses that are all re founders. And those are the people that I'm most fascinated in right now. Very cool. I never thought about that the whole way that it's not just companies, but it's organizations. I mean, it's it's it's relationships, it's communities, this is cool. And he said there's there's so basically this book has like eight examples that you kind of characterize and put a big spotlight on.

Yeah, so I each of the chapters tells a little bit of our story on what it was like to be in a company with just two people in 90 days, and what it was like to make a hard decision about which product we should focus in on and what it was like to get that first customer and be willing to break your back to keep them happy and make them flourish. And each of the chapters describes a little bit of that. So you know, there's the entrepreneurs that are going to love that story. And they're going to vibe with it and get it. But to illustrate each of the points and the principles, I have to tell the story through other founders because the book is really not about me. It's about other founders. And it's meant to be an encouragement about what we can do if we get serious about refounding. And so I think it's we learn better through stories. And so it was It was my pleasure to be able to do research around the United States and meet people and find them and be able to tell their story as well.

You know, well, if I reflect on that, because I'm thinking long while I'm talking to you, and we're talking about this and I reflect on who was the Patrick that I met a dozen years ago. And who is the Patrick today, you are always very, very focused on figuring out ways to create a culture that you thought was important, even though you were frantic, right and sometimes frenetic in terms of plowing through things you always try. I remember thinking, remember Jonathan, when he had like, dress up Friday, yes, Monday and people would come in like gowns, and we interviewed him at the Crane building and talk to people about the kinds of not just amenities, but like sort of what that I don't want to overuse the word culture. But, you know, it's your internal brand of what the experience was like working at net health. So you always were preoccupied with that, even though you were preoccupied with growing the business at the same time. So you describe yourself as young as young back then, and, and not knowing what you were doing. But there was something that you were doing? Yep. Intentional on both ends? Does that make sense to you?

Yeah, absolutely. And it changed. I mean, some of the reasons have changed, you know, early on. Part of it was just attracting people, you know, to find people to work with you. And so creating a, you know, an environment that's visually pleasing, and, you know, doing all those things are kind of, you know, the basics, right. And over time it changed to be, you actually have to invest in people so they can flourish. And what that means is paying them well, giving them experiences that help them grow, and put them out of their comfort zone sometimes. And then the best and most ultimate thing you can do is to have a really just purpose, that your work, the thing that they're doing each day really stands for something greater and is most meaningful. And so if you can put together those things, you're probably on the way to having a pretty good culture.

But how did you how did you manage that, like in the duality?

It's, it's tough? And I mean, the easy answer is, as long as you're growing by, you know, 40 or 50% a year, for the most part, investors will let you do what you want to do, because they think you guy are working great. And so but what we're doing is, you know, once you get to 30,40,50, 60 million in recurring revenue, then some of the decisions about for example, bringing every single employee to one location and having one or two day event to bring people together, those expenses become, you know, more significant and more material. And so it's then that, you know, that ethos of the company has to has to make it through, or you have to recreate and create new expressions of how you're going to do that. And so as you get larger, it gets more expensive. And so you have to be even more creative. And even if you are not growing at 50% a year, even if it's 20, or 30, you'll be tested on that. And so my experience is that investors, private equity investors, etc., is if you can continue to grow and flourish, then they're gonna they're going to be excited about your culture. And I think it's a loop. And I think if you treat people the right way, you have an engaged culture, you're going to grow.

Very cool stuff, Patrick, I'm enjoying like so immensely you having this conversation with us. I'm so glad we still have another full segment to geek out about your new book that's coming out in early 2021 - Refoudner. Wer'e talking to Patrick Colletti from Net Health and author of course of Refounder. This is Jonathan Kersting. And this is Audrey Russo, and we are from the Pittsburgh Technology Council. Learn more about us by going to PGH tech.org. You can follow us on Twitter at PGH. Tech and right back after this super fast break.

We are talking to one Patrick Colletti of Net Health, author of Refounder, a really cool book, I cannot wait for to come out because the whole concept of people, not just refounding companies, but organizations, communities, relationships, you name it. There's something really cool about this. And I'm just so excited that like I didn't realize it, Patrick hadn't put a whole book out.

I know. And it's also about their lives. It couldn't be coming at a better time when you think about COVID.

I think that Patrick should have interviewed you for this book. I think in many ways, you might have been a refounder of the Tech Council. I thought he did interview me for the book.

I guess he didn't, I'm not gonna I'm saying you, you might have been able to put some insight as to putting a new set of wheels on the tech council about 13 years ago. So I know. That'll be Refounder 2 -- Electric Boogaloo.

Patrick, so let's talk to you, you've got, you know, you have spoken to a lot of people in terms of this book. So let's talk about what you've learned. So what did what have you learned? What are the patterns?

Yeah, so there, thanks for asking. We did research with founders, with re founders with community organizers. And what we found was there's typically a pattern of, you know, three specific steps. And then one really macro meta thing that occurs. And I'll give you just a quick heads up on them. So the first is that refounders, they're not afraid to take a sober look at hard realities. And that may sound simple at face value. But to truly take a sober look at hard realities is a hard thing. And we're surrounded by people and places and policies that don't do that, and don't want to actually embrace reality. And so one of the hallmarks of the refounder is they're willing to do it, they're willing to take a sober look at hard realities. And then the second thing they do, and this is, we picked this quote up from William Faulkner is to paraphrase, it's to kill your darlings. And what that means is, each of us whether we're talking about relationships, or companies, or our community, or some other institution, there are too many good ideas, or what seemed to be good ideas. And what we struggle with is focus. Every company, every institution that I've been a part of, they have more ideas than they can execute. And that creates problems and it creates unnecessary stress. And so the second hallmark of a refounder is that they're willing to kill their darlings and get focused. And then the third thing is that they're open to imagining new possibilities. And so even if you're bold enough, to take a sober look at hard realities, and even if you are skilled enough to focus your talents on one or two giant problems, at that point, you have to have creativity to imagine new possibilities. And so that's where a lot of entrepreneurs and communities and institutions get stuck, because they are able to take a hard look, because something's actually broken, and the house is on fire, so to speak, they are able to pick a direction or two. But they lack the creativity and the imagination to envision what the future will look like if they put these solutions into play. And then the the meta narrative here really is that all refounders work for the good of people, they don't just do it for themselves or necessarily for their, their company. They want to create flourishing among human beings. And so unless you can do that, unless there's a bigger purpose to at all, many re founder or refounding efforts fall flat.

I think I would call the refounders super founders. It seems like you're, you're doing more than just putting something back to life again, but you're doing something for the whole world around you as well, too. I think that elevates it quite a bit.

Well, you know, the vast majority of us work in an enterprise that was created by somebody else. And so having the gumption to reconsider what could be at that enterprise. That's what employers want. That's what organizations need. That's what community's desire is people who are willing to look at what exists and exchange you know, what is for what ought to be.

You know, it's it's interesting so they can exist, you you've entered people across every industry, every market sector, so they can exist in any industry, we're talking about a behavioral prototype of people is that we're talking about a persona.

Yeah, absolutely. It's like college or something. It's like a profile.

Yeah. And think of it this way, it is a bit of a behavioral model. And we give a pretty precise prescription about what our research found. And so this can be applied in communities. I mean, some of the work we did and some of the research we did had to do with how struggling communities can define what we call their problems, zero, and then take steps forward and follow those three steps of being a refounder. And we did in communities, we found people in think tanks, we found people in education, we found lots of other entrepreneurs in a wide variety of enterprises, all working for the good of others, but refounding the places they live, work and play.

You know, it's interesting, you use that, that terminology around, you know, sober, like the the soberness of it all. And yet, at the same time you talk about the cultural development. You know, it's like you're spinning to different plates. And those plates have to be spun. So how do you find that we founders actually have surrounded themselves with a cadre of people that help them navigate through this? Or is this a persona? That is individualistic?

Oh, that is such a good question. So one of the things we're going to do, as we as we launch the book is share a refounder analysis. So it's basically a personality typing. And what we are seeing is that it's rare that a person embodies all three or four steps. And that's why just like Strength Finders would say, you know, you're designed to do one or two or three things better than almost anybody in the world. But unless you have a group of people around you, to help with your weaknesses, you're you're probably going to be in trouble. So there are those rare people who really can do all of these things themself. I haven't met many, I'm certainly not one of them. And so in my own experience, it was about surrounding yourself with people who who get it who understand the mission, but maybe do some of the things you don't do as well, much better. And together, you're able to, you're able to pull off a refounding.

So one of the things that I have believed in being a leader for a long time is that you have to learn really early in your life, that you have to fail, and that you have to fail and stand up, you have to do that with the enough frequency that you create a level of confidence that you know you're going to be able to endure is that an archetype that you saw in the re founder case studies and the people that you spoke with?

Absolutely. And every refounding starts with brokenness, or at least a sober look to acknowledge something is broken here. I mean, whether it's in your relationships, whether it's in your product line, or whether it's an entire enterprise. So you know, at the bottom of that, Audrey, there's this phrase that the myth of being well rounded, that I like to come back to and back to, and when we're young, you know, you bring home a report card, and you've got, you know, three A's, A, B and A D. And what is every parent do, it's just hard not to, you focus in on the D. But the challenge there is that maybe the student is superb at one or two of those A's. And what you really should do is give them more at bats in that. But unfortunately, it's CEOs and senior leaders and mid level leaders. We struggle with that we want to be great at it all, as opposed to acknowledging that there were a few things were really gifted in. And so once you acknowledge the fact that there's a few things you're really gifted in, in a bunch of things you're not by process of elimination, you're saying, I realize I'm going to fail those things and failing is okay. Because if I can be in more situations with the things I'm best at, we better.

But it's also incongruent sometimes when you have investors who can appreciate this amount of I call it resiliency, but it's the amount of failure.

Yeah, absolutely. I agree. When we, early on when Chris and I were going to board meetings, I mean, we were we were faking it. I mean, we absolutely couldn't know everything about legal work, software development, sales and marketing health care. And so it's that myth. And the reality is those investors and those board members probably saw to 20 something young men and knew we were trying to have it all figured out but didn't. But they saw something in us and believe that we were putting one foot in front of the other.

But you know, refounding doesn't necessarily happen at the onset of your career. It can happen anytime.

Absolutely. Yeah. I mean, I would argue that every corporation in America has something broken with them right now. And that could be a product line. It could be a culture, it could be the entire enterprise. It may be something smaller, it might be their customer success metrics. But something's broken. And so if you're brave enough to acknowledge it, and you're brave enough to do something about it, you can fix it.

So you also there's so much to talk about and unpack. And unfortunately, we're not going to get to it all. But you talked about Pittsburgh in the book. Obviously, Pittsburgh is where you, you know, set some of your claws and grew. Yeah, yeah, absolutely. I think Pittsburgh actually is a unique and important model. For the refounders, you know, Pittsburgh was in a way on top of the world 100 years ago, and as we all know, in the 70s, you know, right around the time the Steelers were winning a lot of Super Bowls. Steel went south, I mean, literally, and so Pittsburgh was devastated. And you Audrey and so many other leaders have been eloquent in discussing how we have had a resurgence and so of course, the Pittsburgh today is not the Pittsburgh of the 80s. And we have been able to do as a group as a community refound, what it means to be Pittsburghers. And there's a resilience. I think that's unique and it's yours. And very clear in the stories from 100 years ago, 50 years ago, and today that Pittsburghers really are the founders there. They're resilient and they're not going to go down without a fight.

Absolutely, Patrick, what a great time talking to you. I'm so excited about this book. He said to be out in early 2021. Go to the website refounder.com and get more details on it there. I just think this is really great stuff. I think it's the first time I've ever heard of this topic and I don't expect you to come out and do something really bigger out at Patrick. What an honor talking with you today. We really appreciate it. My treat, always a treat to talk to you so I can't thank you enough. I look forward to the buck. Look forward to more conversations look forward to stirring up good trouble with you.

I love it. Yeah.

Thanks for the time.

Great stuff smart everybody. This is Jonathan Kersting

This is Audrey Russo and we are from the Pittsburgh Technology Council. We love telling stories like this each and every Saturday here on ESPN 970 keep tuning in. Because we have so many folks like Patrick in Pittsburgh and beyond that we love putting a spotlight on every single weekend in just in case you have a June's for more tech vibe and it's not a Saturday just go to your favorite podcast platform search for tech vibe radio and download to your heart's content. Audrey. We've got a lot of content out there, that's for sure. To everyone, this is Jonathan Kersting once again, this is laundry Russa learn more about the Pittsburgh Technology Council, I go into PGH tech.org. After that, have yourself an awesome weekend. Thanks everybody.

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