David Novak 0:04 

Welcome to How leaders lead where every week you get to listen in while I interview some of the very best leaders in the world, I break down the key learning so that by the end of the episode, you'll have something simple you can apply as you develop into a better leader. That's what this podcast is all about. My guest today is Ray Scott, President, CEO of the Lear Corporation. Now, that's not the Lear jet company you might be thinking of. It's the Lear Corporation. And actually, if you're listening to this in your car, you might be using one of their products right now. That's because they provide CD and electronic systems to major automotive brands. And by the way, they were just named one of fortunes most admired companies, I actually had the chance to speak to their global leadership team recently. And I was blown away by the culture and by raised leadership, and I just knew you had to hear from him to now since he took over in 2018. Ray has had the lead through COVID, supply chain issues, inflation, and rising fuel prices. I mean, good grief, it's really been one challenge after another. But Ray hasn't let those short term pressures keep him from focusing on long term strategy. He knows how critical it is to keep innovating and planning. So they can be successful when those tough short term situations finally change. He's got some really practical advice for you, too. So keep listening and see what happens when you never lose sight of what's next. So here's my conversation with my good friend, and soon to be yours, Ray Scott.

You know, I first met you when I had the honor of speaking at your leadership conference this past year, and I witnessed firsthand just how much your people respected you. So I just had to have you on this podcast. So thanks. That was a great

Ray Scott 2:07 

day. I tell you, I still get really positive feedback from your presentation. And just being with the team. It was a really special day for us too.

David Novak 2:15 

Yeah, we had a little improvise for the all our listeners out there. The electricity went out at this hotel we're in. So the team, the Lear team quickly moved, got everybody set up outside within 45 minutes. And we just went on with our business. So I was impressed with the way your team responded in sort of a crisis situation. Oh, David,

Ray Scott 2:33 

you got to see firsthand. I mean, we pride ourselves on managing through all kinds of different situations. And that was no different than how we handle ourselves day to day two. So really proud of the team.

David Novak 2:46 

Yeah, you know, I obviously got to learn about your company, and you're a world class auto supply company. But I have to admit, when I first heard the name of your company, I thought it was Lear jets. Give us a quick history on Lear corporation in the business you're really in

Ray Scott 2:59 

as what everyone thinks first. Lear jets and Lear Corporation. Actually, I've been with Lear for 34 years. So I've been around quite quite a long time. And, you know, Lear when I first started was about $600 million in revenue, and really trying to find their way a very creative, innovative company, but we're looking at how we could just in time seat systems for major OEMs or customers around the world, General Motors, Ford, Chrysler at that time, you know, BMW and Mercedes and they grew through what was a leveraged buyout at that time. And so small company management had put their money in the company. So it was treated with a lot of emphasis and focus on cash and generated cash and really growing the business. And, you know, back then David, I was new in the company in the thick of it today. Versus then is like, there was days that I wasn't even sure I get paid, you know, they would actually talk about and I explained it to some of the team members today. So, Friday was supposed to be payday. But if we have cash will pay if we don't have cash, yeah, you're gonna have to wait another week. And so I thought that was normal. I thought that was a lesson at least I have a job and, and we're doing a lot of great things. So there's a lot of opportunities through the company at that time, because we're changing so fast. And then fast forward today, a $20 billion company that's focused in on just in time seating, the most vertically integrated company when we talk about seating to all the major OEMs around the world. And we also supply power distribution and electronic components for electric vehicles, and traditional vehicles, the ice vehicles in so today, 170,000 employees over 260 plants worldwide, the leader in both seating and power distribution, so I couldn't be more proud to be at Lear Corporation. It truly is a remarkable company from where we started to where we're at today.

David Novak 4:51 

Yeah, think about that. You almost like in bankruptcy and now you're on the fortunes most admired list and you're a leader in your industry, for sure. You know what I was just thinking about the auto industry itself, you've got all kinds of headwinds. These days, you've got inflation's supply chain challenges, high gas prices, I imagine that's the triple witching hour for your business, you know, tell us about some of the things you do to keep your team energized in such a tough environment. You're right,

Ray Scott 5:19 

there's been so many different challenges in one thing, that, from my perspective, it's about the people and making sure we keep that focused, not just on the short term, but focused on the long term strategy and, and really have that optimistic look on no matter what challenges we are going to be faced with that, you know, we have a plan that we know what we're doing, we're putting ourselves in not just a good position today, but a better position for the future, and communicating that throughout the company. And, you know, when I think back to the most recent events, and David, you know, I took over the CEO job back in, it would have been 2018, March, and I had these great plans, a great strategy, you know, knew exactly where we're going the company was a great position. And then we saw the Chinese decline in production vehicle production, we saw one of our major OEMs, go through a strike for multiple months, and right after that was the COVID. And then the supply chain crisis in, you know, the inflationary costs that we're dealing with. But, you know, through all that, what we've really done is tried to keep it very simple, so that the teams could really understand what we're focused on why we're focused on specific areas, and making sure we're managing them day to day. And so I think when you can make it simple, it's very easy to motivate and inspire and help the team out in respect to where we're going to be long term so that there is an end to this, you know, right now focus on what we can control. But long term, we're also balancing our strategic initiatives to be in a stronger position,

David Novak 6:53 

you know, you are a great simplifier, and just your mission of your company of making every drive better. I think that kind of really gets people up every day and ready to go. When you had your leadership development conference, right? What did you really want to achieve from that

Ray Scott 7:08 

the primary goal was one getting the team back together, we have not really been as a team in an environment where we can actually network and talk and communicate collectively as a global team. So that was really one priority. But I think, equally as important, David was making sure we're sharing the accomplishments that we achieved over the past several years. You know, when you get into a situation where every day is a grind, and your work gets through, it's kind of hard to see the forest through all the trees in some respects that it was appropriate to step back and recognize the teams and I got asked questions, you know, why are we having this review? Now we have a lot of work going on. We have inflationary costs for managing, you know, shutdown situations, or potential shutdown situations with our customers, a lot going on. But I felt if we didn't take a step back, and recognize the great people, this company that that could get missed. And, you know, there's a number of things that we accomplished that I couldn't be more proud of. And when I was up talking the team, I don't even think they realized collectively what we had accomplished. We are the first ones early on, because of we have four plants in Wuhan that we are experiencing what was going on with quarantines and shutdowns and specifically around PPE equipment. And in February of 2020, I looked at the teams because we have textiles. I said, Listen, we got to help our employees out, we got to help our teams out in their family members. I didn't realize I learned more about masks and, and 95 masks I ever cared to know. But what we had to do was do something to respond to the situation. So we started manufacturing our own masks. Did you do that out of your plants? We did it off our facilities. And yeah, the first goal was to help our employees out in China. And then we realized quickly that Italy was obviously getting into a situation where we had to help out Italy. And then we realized, Hey, listen, we're going to start producing mass around the world for all of our 260 facilities and their families. So we quickly in February of 2020, converted our plants, to producing PP equipment. And then we've gotten the situation we took a step back and went into shutdown, we didn't have any real playbook that we could use to really help our plants not just from a manufacturing perspective, but from you know, I caught the ability to actually run a play that best protects the people in the manufacturing plants. So we we actually put together this playbook. It was downloaded over 45,000 times, but the intent of that playbook was standardized all of our plants. So we ran, you know, the same across every one of our facilities with the same type of PPE equipment, same type of protocols, the same type of attention to the people to protect them. And so these are just some of the examples David but when we came together as a leadership team, I thought it was really important to take a step back. recognize all the great accomplishments, and then look forward to what we're going to achieve as we get through these different challenges. But equally as important understanding where we are going,

David Novak 10:09 

you know, hats off to your team, because as I understand that you actually manufactured 11 billion in 95, masks you distributed to schools, orphanages, and hospitals and your, your pandemic playbook you, you opened up to not just your own company, but everybody else in your industry, and anybody that wanted to take a look at it, what made you have that kind of broad view? What I realized

Ray Scott 10:33 

when I read through the manual, at that time, I said, Wow, this is really incredible. I mean, it's going to help us could have been used as a competitive advantage to really get ahead. But I thought, you know, we got to do the right thing here, we got to get this out to companies that are smaller than us. Companies that didn't have the insight weren't familiar enough with what was going on in China several months prior, and send it out. And I called our general counsel the night before. And David, you know, you go through these decisions, and it was, on one hand going, well, I don't want this to be perceived as we know it all. Because we didn't very humble, we're still learning. But we did have some best practices, we did protect ourselves and make sure that we talked about what the manual was about, but, you know, do I put it out? Do I give this to our competitors? Do I give it to the supplier base? You know, how will this be perceived all those things were going through my head, but then the day we did the right thing, we did send it out. And I didn't know, I had no idea, David that was gonna be downloaded, you know, over 45,000 times, I had so many people come up to me from other industries, you know, if it's a grocery store, or a church or a hospital that said, Listen, we use your manual, thank you very much for sharing that we didn't understand the differences, and how you would put different procedures in. And so I like I said, I couldn't be more proud of the team. But it was something that at that moment, I wasn't sure how it would be perceived, and it was received very positively. And I do think we were able to save lives based on protecting people in the plant. And I say it all the time, you know, everyone in every situation, we treat our plants, like our family, we all work for the plants in the way I look at it, and we got to make sure our plants are, are running and make sure that they understand exactly what to do in any situation.

David Novak 12:18 

As the CEO of the company, Ray, I know, you've obviously you've got top to top relationships with your biggest customers and, and I was just thinking with all the supply chain issues that are going on, it's pretty difficult to make everybody happy all the time, from a just, you know, a customer perspective. You know, tell us a story, if you could about a difficult situation you had in terms of getting the customers expectations in line with what she could really deliver, given the supply chain. Different regions

Ray Scott 12:47 

had different levels of requirements, for example, down in Mexico, you know, we could only bring in 80% of our workforce, and they had different status, red, green, yellow, and what you could produce, and if you broke those rules, you're gonna be shut down. You know, we're very mindful of what rules were, what place and what country and having those conversations with a customer that's in North America, shipping or building in manufacturing out of North America, and then by getting components from Mexico were very challenging. And you go through these conversations explain Yeah, but I'm only I'm limited to this output, well, you know, shut down your other customers and use that output for us. So it's conversations, we're balancing the whole ability to ship parts, but also managing multiple customers out of a facility. And so I'm not kidding, I would get into a conversation with a customer. Let's say you have an 80% 100% of our volume requirement. Yeah. But then I have to shut down another customer. Yeah, okay, well shut down the other customer. So it was these conversations around, I have to have balance here. And so they weren't easy conversations, because when everyone came back up, and we're running, they wanted 100% of their products. And unfortunately, we had to manage and balance these situations. And, you know, there's always that you have to have respect, and you have to go in and always say it's not perfect, but you're going to have to work with us. And so having those open dialogues that I think at the right level are really what can help ease some of those very, very difficult conversations.

David Novak 14:23 

I could tell just by the way you talk about yet a lot of hey, you know, because you're listening to this, I can tell you're the kind of person who wants to learn how to lead well. But there's a lot of companies out there who want to take that desire and charge you $500 or $1,000 or heck, even $20,000 to try and show you how to lead. That's just not right. If you want to be a better leader, I believe you deserve to have access to something that will truly help you and it shouldn't cost a fortune. So I want you to go to how leaders lead.com I'm in start my leadership class, it's really in truly free. And after you take this class, you're going to feel more confident in your role. And you'll be on your way to get the big things done with your team. Go check it out at how leaders lead.com.

Ray, you've got a great reputation for navigating the short term challenges, and then at the same time preparing for the future. What specifically do you do to lead the car interior industry into the future,

Ray Scott 15:33 

those conflict at times, David, it's our short term, my team's always I mean, the forecast reviews going through we, you know, obviously, we have a mindset of achieving the short term goals, the quarterly earnings, those type of fun things. And then at the same time, we have very, very specific goals on where we want to take the company strategically and some of those investments and things conflict with what we're trying to do short term. And so it's that balance. And I find in the automotive industry, you know, this that fear of failure, you can't fail, it's a mentality of everyday you're delivering from quality expectations to delivery to meeting the efficiencies or cost our customers are looking for longer term, you have to open up your mind, you have to think and shape it differently. And, and think about, in some respects, displacing yourself, or how the world can look 510 years from now. And so those are two critically different ways of running the business. And so we have individuals that are very focused on execution, the tactical play day to day, and then we have teams and you know, I've separate those teams that are much more focused on where the business is gonna go, you know, not chasing parts, but chasing the future, as far as we're strategically we can go. And what I've learned is, those are two different talents. And so setting those teams up independently, looking at how we can drive sustainable materials, how we're going to drive thermal comfort, solutions for heat and cool, how we're going to drive electrification within Power Distribution, those teams are really set up to position us long term. And so I think having that balance is very important. You know, and having the right skill sets, the people around that, that have the right capabilities is equally as important. When I started Lear Corporation, $600 million, you know, not making money trying to drive free cash flow today, where we actually have doctors within the organization that are set on your anthropometric measurements, your bio readings, your the heat and cooling elements. So I mean, the sophistication and technology where we're seeing the future of the auto space, particularly around seating and electrification, are critical. And that type of talent is required, with the execution.

David Novak 17:47 

You know, tell us about smart seats and what we have to look forward to down the road.

Ray Scott 17:52 

Well, like I said, I've been in seating for 34 years, and I still get in a seat today that has 24 different features, and I have no idea how to work at so I'm comfortable. And so I'm in that position. You know, we started it been looking at what I believe is the future is a smart seat. It's an intuitive seat that I believe you will based on your own measurements to build getting a seat that will set it up for comfort for you. And the technology is there we have incredible software engineers have been working on the ability to change the seat dynamically as you ride. And so there is this positioning, my wife's in the seat one moment I'm in the seat the next moment is doesn't fit me, right. Because we know over time, your body will change dynamically. You know, as you come home from work, you're slouching, you come in the office, you're more ready to go. So how do you change the seat that it's much more intuitive? So, you know, that's one that we're working with our customers on that I think is a great solution. I think also a big one is the whole age back area where you can heat and cool the occupant, you know, David, I would love and I say this I there's times I got the H back on tido gold and other times I guys lows and go for heat. I just rather the environment, read my preferences, I want my body temperature x degrees regardless if it's 90 degrees out or 20 degrees out, you know, I don't want to go through that process I want you know that to be something that's more intuitive and and also the draw on the battery is significant with the age back as opposed to heating and cooling the occupant within the seat. And so we've been developing all these different technologies in acquiring the right companies do vertically integrate those type of capabilities that when you walk in very similar to everything we walk in today, from your devices at home to your phone, something more intuitive, something smart. I think the flexibility within the environment too is changing where you have much more flexible architectures with seating and so now we have this powered rail system allows reconfigurability within the vehicle to give consumers the ultimate flexibility to reposition their vehicles and so There's a lot going on, I think standing still. And thinking about how it is today it will be that way in the future is absolutely the wrong approach, you know, couldn't be more excited about sustainable materials, recyclable materials. I mean, that is the future. And we're all over it. And like I said earlier on, you have to get the right talent in, that can think differently.

David Novak 20:22 

You brought up materials. In my research, I understand one of the innovations that you have right now is, is actually coming from a baby crib. Tell us about that. Right now.

Ray Scott 20:32 

Today, we manufacture foam products for seeds, and its uses different chemicals. And so I've put a big emphasis on replacing TDI and MDI, in the seeds. And environmentally is staggering the amount of co2 emissions and waste that we can take out the systems by replacing those different chemicals. And so the team has done a remarkable job on different alternatives. And right now, yes, we are working on a breathable, more flexible, recyclable material that I believe is significantly better from a comfort perspective, but more importantly, is much more environmentally friendly. And so we're pretty close to really getting that out. You know, we're working with several customers today on on the applications and the technical specifications and testing. But I do see that the world will change away from these products that we're producing today to much more environmentally friendly products. And we've looked at every different products. And you're right, right now the application is used in baby mattresses for the reason their breathability.

David Novak 21:37 

I want to get more into how you lead, but I want to shift gears and put it into reverse. And yes, that is pun intended here. Where'd you grow up and tell us about your neighborhood?

Ray Scott 21:48 

Yeah, I grew up in Flint, Michigan, I couldn't be more proud and fortunate to have grown up in Flint. And I know Flint has a reputation for a lot of different reasons. And a lot of the different challenges that Flint has been faced with. But you know, Flint was the early start where General Motors, birthplace of General Motors, obviously we had the sit down strikes in Flint back in the 1930s. And it's a very hard working city, obviously, they've been through significant challenges, ups and downs. But the people of Flint are incredible. And I learned quite a bit just growing up in Flint about you know, being humble, remaining humble. My parents were very young when they had me there. My mom was 19 years old. My dad was 20. My dad was working trying to put himself through school, so we didn't have a lot of money. And so I do recall, you know, I used to live on Olympic Totten dort. And you know, what probably is considered the project's who was subsidized living, and we had to move from there. I know because it got a little rough. And I think my mom got tired of me getting into disputes with other people in the neighborhood and sometimes coming home, little beat up. But, you know, we did move. But you know, I remember growing up in really tough neighborhoods.

David Novak 23:03 

What advice can you give others who aren't exactly born with a silver spoon?

Ray Scott 23:09 

take on challenges others won't. You know, it's something I've learned that stretched and helped me grow in, you know, you put yourselves in uncomfortable situations for the reason to grow. And I've always found that if I'm always working in a situation where it's helping me grow, those are the greatest things that I look back on as an opportunity. I don't think I recognize that the time and give you an example. You know, I was 34 years old. My wife had her master's degree, she was very successful in her own career. We had two young kids four and two at the time, I was asked if I'd be willing to move over to Sweden to take on a business that wasn't doing well. And I knew that I shouldn't that was a problem when I was the only one raising my hand to go, David, I was like, and why isn't anyone else wants this great opportunity. And I got over there and I vividly remember staring at the ceiling going man did I screw up this is too much the individual that was replacing his job was getting fired. That week, I was on the ground and troll hot in Sweden. We weren't sophisticated yet with expats and how to get people on the ground. So there wasn't a lot of people helping me out. But I remember that we're moving into his house, and he's getting fired. I'm taking over his house and his job. And he's still trying to get stuff out. Well, I'm moving in and then to go in the office and there's a number of things that were going on with shutting down the customer losing money, employee retention. Boyd I stretched myself and at the time, like I said, i i in the moment. I was like, this is the biggest mistake I've ever made. What have I done to my family? I vividly remember staring at the ceiling going What are you doing? Why did you do this? And it wasn't until years later. Long story short, we were able to work The business, it actually turned around, I was successful with a lot of hard work, but I really learned a ton. And getting through that assignment. And then coming back was five years later, I realized, boy did that change my leadership style to change who I am, that stretched me beyond who I am. So I do tell anyone looking for advice is that you got to put yourself in uncomfortable situations. And sometimes you can't even think that you can do that, that type of job or be successful. But when you are, it's so gratifying and so rewarding, and it has helped shape me,

David Novak 25:36 

right, I know, you said you like to surround yourself with people that tell you what you need to hear, not what you want to hear. Give us an example, when that happened, and how you handled it,

Ray Scott 25:47 

it does take some work. And one thing is I think you have to create the right environment, that where people feel comfortable, that they can talk openly, and that they're heard. And, you know, I've been in different points in my career where I felt like I've, I'm in a conference room or in a meeting, where I'm reluctant to say something, because you're gonna be criticized, or somebody's gonna give you a quick feedback on why that's not a smart way of looking at it or whatever reason. And we've all been in those situations where you want to give your honest assessment, but you don't feel comfortable. So I think creating that atmosphere where it's okay to open up and talk in a very trustful environment that you feel like you're being heard. And so that does take some time, there's examples, rough setting means where I think one individual is being a little bit too hard on an individual for their opinion. And I have to kind of shut it down, that that's unacceptable. That's unacceptable. Everyone has an idea. Let's just hear it out. And then we'll make a decision. Because there are times I've actually, David, I feel like I have this answer. I got it, I know it. And then when I hear the team, and I listened to them very objectively, and and hear their different thoughts and ideas, I've changed, I've moved one ad. And so and the same side, when you feel like you're not getting some A's straight up opinion, you got to call them out a little bit on that. And you know, we would call it the yes, no, maybe answers? Well, I'm not sure what the answer was, you know, I think you're trying to wait to see where I'm at. And then you'll land on where you think I'm positioned, or where, where my thoughts are, as opposed to saying, hang on here. Let's go back to that. Specifically, what do you think and and why you think in that way, and so forcing individuals to come to a meeting or a, you know, it's some type of discussion with strong opinions, that they understand they know what they want to do, and then they're ready to communicate that. And I think having a very inclusive and diverse group of people really helps. That's one thing I've learned is, you know, through my career, you know, sitting in a room where everyone thinks exactly the way I think is not the way to lead.

David Novak 27:56 

We'll be back with the rest of my conversation with Ray Scott in just a moment. As you've heard us talk about Ray isn't afraid to take on the challenges others won't, because he knows that's where all the good growth happens. That's the same career path that Marvin Ellison followed on his way to becoming CEO of Lowe's. Would you believe in every new role in Marvins career he has taken over for someone who's been fired or forced out? Listen, if you want to distinguish yourself as a leader, you've got to be willing to tackle the tough assignments like Marvin has,

Marvin Ellison 28:31 

I've had a lot of tough assignments. And I learned early on that the best way to move forward is sometimes to take assignments that no one else wants, that no one else is attracted to, that people look and frown upon, because they don't think that there's a pathway to success. But when you don't have sponsors, when you don't have an Ivy League education, when you don't have mentors, but influence results matter. And so I'm taking a lot of those tough assignments because I want to demonstrate I can leave,

David Novak 28:59 

go back and listen to my entire conversation with Marvin, Episode 28, here on how leaders lead. You say, Ray, that diversity is very personal for you tell us a story that really affected your commitment to diversity.

Ray Scott 29:19 

I talked a little bit about going to Sweden, and that was one of the most challenging experiences of my career. But I grew more there in that time than I have through any other time of my career. And I remember, you know, I first got to Sweden and I knew exactly what I wanted to do. I'm the American I know what to do. We're gonna run this business for good get back on the tracks and be successful. And so I had a mindset of how I was going to lead. And I had no respect for the Swedish culture or the people and maybe their understanding of how you motivate and inspire. And so I was getting grievances written up against me every single day from the works council. And because they have a white collar, blue collar union. And so I was like, What are these grievances? Well, I'm not letting people participate. I'm not letting people's voice be heard. I mean, it was, I think I hit may have had the record for grievances in a short period of time. Just taking this back, well, I don't really care. We're gonna run this. It's not successful. I know how to make it successful. And so what I realized was, if I give you another example was I called him we had a great program manager in Sweden. And I called them in I said, Listen, I want to promote you in charge of all the program managers, you are a great leader, exceptional leader. And generally, they're all kind of reporting you anyway, so our promote you. He goes, I don't want to be promoted. And I go, What do mean, you'll won't be promoted. And he's like, I have everything I want, I'll still do this job. But I said, No, no, you have to manage it. There has to be a hierarchy. I want to make sure you're responsible. I go, you get a car, I go, everybody wants a car, you get a company car. He goes, Why do I want a car, I go, cuz you get to come to work in a car, he goes, I have a bike. I'm gonna give up like, I go, Whoa, okay, but it rains here all the time. He goes, Ray, there's no bad weather, there's this poorly dressed people. And so I'm like, okay, so you're gonna get more money, I want more money, I'll be considered different than my friends. I'm like, okay, so then he started negotiating vacation time as opposed to a raise. And what it made me realize was, I was very one dimensional, when I went to Sweden, this is how you lead. This is how you motivate people. And it's different. And so now when I communicate, it doesn't matter if I'm communicating to Germany or Asia, to Sweden, you have to have respect for that. The diversity of thought, and inclusion in different ways, because it's not one way to motivate or inspire, you know, that is a major passion. And obviously, one of my goals at Lear is to create a much more diverse, much more inclusive company, not just because it's the right thing to do. Because you get much better results. There's no question about it, from my experience. And what I've seen, it's interesting,

David Novak 32:05 

Ray, you've been in this company, I think he said, 34 years, you know, what advice can you give to someone in terms of how to climb up the corporate ladder, because you're a great example of it.

Ray Scott 32:17 

One thing I see a lot of people chasing dollars, you know, I go to a company because I get to make more money, or I'm gonna, that's how I have to, you know, climb up the corporate ladders to take as many jobs as I can. And, you know, particularly today, it's funny, I talked to the younger generation, David, and I say, Yeah, I've been here 34 years, and they look at me, like, what do you do wrong, it's not common to have individual stay at a company for a long period of time. It's kind of, you know, knowing that you have to bound to get different experiences to be successful. And, you know, that is one way of achieving, you know, maybe results. But I think it's more about listen, you find a company that you fit in, that you belong, and that you're being treated with a certain amount of ability to be empowered, and get results right way. And I always say less, if you're happy within that. And then obviously, you want to grow, it gets back to that taken on challenges, others won't. And it's interesting, I have a lot of individuals who have come to me and say, Alice, I want to be a VP in five years, if I'm Abby be in five years, I'm unsuccessful. But there's no clear path that says, if you do this for a year, then you'll go here, then you do this for two years. I think it's more about looking around and taking on challenges that others won't I do think it starts with, do you like the company, your nd of fit? Is there the right amount of flexibility and empowerment to achieve your goals? And if that's so then you start working on? How do I take on those challenges that others won't,

David Novak 33:42 

you already spent a lot of fun. And I want to have a little bit more with you here. Before I let you go, I want to do a lightning round of questions. So are you ready for this?

Ray Scott 33:49 

I'm ready. Okay,

David Novak 33:51 

what three words would others use to best describe you?

Ray Scott 33:55 

I had hoped that they'd say that I'm humble. There's humility with who I am, and that I've never really forgotten where I've come from. A lot of people would say that I'm very competitive. I think I compete on every single level, not just from a business perspective. But personally, I hope the, you know, the last one is just that candid and honest, that I speak my mind and, you know, in a very respectful way, but you're gonna get a lot of honesty from me.

David Novak 34:22 

If you could be one person for a day besides yourself, who would it be and why?

Ray Scott 34:26 

I love to be my kids. I think they got to me. I would take a moment in time. And I think about this quite a bit. And David, you probably do too, which was sports is like, what would it be like to be Tom Brady, when he won the Super Bowl with Tampa Bay in that moment, you know, is success, you know, over time is recognized over a longer period of time for someone in the business world in that type of setting, all that hard work, all that dedication, all that commitment. You know, in some respects is recognized in that moment. I mean, how cool would that be to be in one of those moments now you could pick us open, you could pick anything super bowl, I mean, to be an individual in that type of moment that recognizes all their accomplishments on a particular time. That would be special. That would be I agree. What's your biggest pet peeve? Just be honest, be truthful.

David Novak 35:22 

What's the first car you ever drove? Our first car was

Ray Scott 35:25 

a Chevy Nova 1976 Chevy Nova.

David Novak 35:29 

If you got in your car, and you turned on the radio, what would you hear?

Ray Scott 35:35 

Probably Billy Squier.

David Novak 35:39 

So you got your undergrad, I believe at Michigan and you got your, your masters at Michigan State. So when those two teams play each other, who do you root for? It'd be Michigan

Ray Scott 35:49 

State. My two boys went to Michigan State and graduated and my daughter's going there this fall. So you know where my dollars are going as Michigan State. So I'm usually sitting around watching the game with them, it would not be a pretty sight if I'm sitting there wearing Maize and Blue in front of them. So I respect their, their college and where they went. And we really have a good time as a family but the Michigan State,

David Novak 36:12 

what's something about you a few people would know, I think

Ray Scott 36:16 

like I said earlier how competitive I am I get a little bit too competitive with things that you know, from how I sleep, you know, to how I maintain my health to cornhole it gets a little bit a little bit much. And I think my family would probably know more about that than anyone outside of my circle of trust

David Novak 36:36 

in your life. You know, you talked about Tom Brady, what it'd be like to win that Super Bowl? What's, uh, it can't be real moment for you.

Ray Scott 36:46 

When I got the CEO job back in 2018. You know, it's, you're working hard to get the job. And then when you get there, taking a step back thinking about okay, is this real? You know, and okay, it is now let's, let's get busy. But that was a really special day in my life. And I remember, David, you know, the board told me they're gone. Listen, it's a very lonely job. And I'm like, What do you mean, it's a very lonely job. I got all kinds of people around me 170,000. Boys, this is this is a real deal. But you get in those real moments when you're like, Okay, well, you know, decisions, stop here. This is where you got to make the decision. Those are the lonely moments. But that would probably be a surreal moment. I know. Also another thing, my family, I mean, I think about how fortunate I am, I love my family and my kids. And every time they achieve something from getting engaged to a job or something like that, I really have an emotional moment to kind of take a step back and say, Wow, this is really cool stuff. I mean, to have the gang that I have that I surround myself with, they make me take a step back and think about how fortunate I am.

David Novak 37:51 

You know, I understand you started dating your wife when you were in the eighth grade, talk about a partnership, but what's made your marriage work all these years? And how do you make the work life balance thing happened?

Ray Scott 38:03 

We've been together since high school and she's a special person. And I tell you, I think it's that flexibility. You know, how we made it work is having an open mind, you know what she's been great. She's, like I said earlier, she's done some great things to really allow me to be successful. And I think she's incredibly successful with all philanthropic work that she does today. And she keeps extremely busy, really helping out community where, you know, we live and, and so I think having that balance, where she's doing the things that she loves, and I'm doing the things that I love. And as far as maintaining that type of balance between life and work, I think listen to just works its way out. I know, I can't prioritize everything. And I tell everyone at layer, listen, you have to focus on family, you're not successful, if your family is not successful, if you don't feel successful at home, it is very difficult to come into the workplace and be successful. And so there's times when I find myself and prioritize things in the family that are above everything else, you know, I got a story when I was younger, one of our CEOs was lives work work, you know, in family was in some respects second, but I was always prioritizing certain things. I wouldn't miss my son's football games as a senior I know there's other games I missed, but there's certain games I would not miss or certain events I would not miss and I'd get you know ridiculed from my my peers and even some respects from my boss on this you're not committed to work. It was later in life that that individual come back to me and say, You know what, I know I gave you the raspberries and and probably shouldn't have but you did the right thing. The wish I would have focused more on the family than I did. But it was at that moment it but it took a lot of hardship of making that a priority and dedicating myself to very, very specific events that I would not miss despite whatever else might be going on. And I think that My family recognizes that and I think that's the way you really have to manage it to have some balance in your life because like I say, Listen, if you're not happy and your family's not happy, I'm promise you that's carrying over the workplace. And so you have to just make sure you're balancing appropriately.

David Novak 40:16 

Last question, Ray, what's the one most important piece of advice you have for aspiring leaders,

Ray Scott 40:24 

I think that you have to make sure you're getting results the right way. And I've said this over and over again, with the team is that you're going to have to continue to drive. And I think the second one is, you're going to have to kind of stretch yourself, you know, you got to put yourself in uncomfortable positions, if you really want to grow. I think everything else you're gonna have to work through. But those are the two things I really talk about when I'm sitting down with people saying, Hey, listen, this is what I recommend that you look at.

David Novak 40:50 

Ray, I want to thank you so much for taking the time. Congratulations on the tremendous company that you're building. And, you know, I can't wait for some of these new seats to come out. You're right, though. I am one of those guys, where you have all this technology in the car, and I don't know how to use it, you know, so I want the you know, you're getting this smart seat that can take for me, I can't wait for that.

Ray Scott 41:10 

You got to David, we'll get you one. I'll let you see it.

Unknown Speaker 41:13 

It'll be great.

David Novak 41:23 

You know, talking to Ray, I'm really struck by his sense of balance, balancing tough industry realities with what his clients need, balancing his family with his responsibilities at work and balancing LIRs short term goals with their long term strategies. And that last one can be really tricky. How many times have you had to set aside a big picture project, because some issue cropped up, and you had to go deal with that instead? It's really tough when that happens, I've been there too. But you can't let those immediate pressures dictate your days. No matter what your role is. Every leader needs to spend time planning for what's next. I actually had a plaque on my desk that said, what's next? This week, I want you to ask yourself what you need to do to keep the future top of mind for you. Protect that time and do what you need to do to make it a priority no matter what else is happening. So do you want to know how leaders lead? What we learned today is the great leaders never lose sight of what's next. Coming up on how leaders lead just in time for your March Madness bracket. I'm talking with ESP NS number one basketball analysts and the number one analyst in college basketball period. Jay bilis.

Jay Bilas 42:48 

In my career, it has been less about flash and more about substance, I've stuck to the substance of the job rather than the flash of it. Because I think in today's world, you can get caught up in being an entertainer instead of honoring the job and saying the right thing at the right time in the right tone. And that's what I really think my job is.

David Novak 43:14 

So be sure to come back again next week to hear our entire conversation. Thanks again for tuning in to another episode of how leaders lead where every Thursday you get to listen and while I interview some of the very best leaders in the world. I make it a point to give you something simple on each episode that you can apply to your business so that you will become the best leader you can be