Podcast Summary: "The Tech-Enabled Path Towards Scale"
Podcast Information:
- Title: Owning the Outcome
- Host/Author: HubSpot
- Episode: The Tech-Enabled Path Towards Scale
- Release Date: September 27, 2023
Introduction
In the latest episode of "Owning the Outcome," hosted by Sarah McDevitt, HubSpot’s Senior Director of Partner Strategy, listeners are introduced to a pivotal discussion on scaling managed services organizations in an AI-first world. The episode features Matt Bolian, CEO and co-founder of SuperD, who shares his extensive insights on navigating the challenges faced by people-centric organizations and leveraging technology to unlock substantial growth opportunities within the HubSpot ecosystem.
Background
Matt Bolian brings a unique perspective, transitioning from a SaaS background into the realm of HubSpot. Together with his co-founder, Brendan Tolson, Matt recognized the burgeoning potential of the HubSpot ecosystem and decided to build a service company aimed at addressing the intricate needs of B2B SaaS companies.
Key Quote:
"We saw HubSpot as the future, but we didn't know anything about it. So we decided to build a service company and figure it out as we went."
— Matt Bolian (04:21)
The Genesis of SuperD
Matt elucidates the inception of SuperD, rooted in the desire to solve significant problems within CRM implementations. Initially focused on providing elite services through Rev Partners, Matt and his team identified critical adoption issues that hindered the scalability of managed services agencies. This realization led to the creation of SuperD—a distinct entity designed to empower service companies with the tools and technologies necessary for efficient scaling.
Notable Quote:
"We create a distinct separate company because we don't want to dilute our goals. We have two separate goals, and I'm now running SuperD 100% without working in Rev Partners."
— Matt Bolian (06:06)
Scaling People-Centric Organizations Through Technology
At the heart of the conversation lies the challenge of scaling human-led, people-centric organizations. Historically, such businesses find it difficult to scale due to their reliance on human resources and manual processes. Matt emphasizes the importance of a scaling strategy that leverages technology to overcome these inherent limitations.
Key Points:
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Subscription-Based Service Model: SuperD eschews traditional hourly billing, opting instead for a subscription model. This approach aligns with SaaS principles, fostering predictable revenue streams and enhancing scalability.
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Product-Oriented Delivery: Transitioning from a delivery-focused to a product-focused mindset allows for standardization and efficiency. SuperD's product engineering team ensures that services are delivered consistently, mirroring the operational excellence of SaaS companies.
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Financial Structuring: Emulating SaaS financial models, SuperD manages upgrades, downgrades, and contract expansions systematically. This structure facilitates smoother financial evaluations and supports long-term growth.
Notable Quote:
"We do not charge hours. Everything we do is run as a retainer, or rather, a subscription."
— Matt Bolian (06:34)
The Twofold Problem in CRM Implementations
Matt identifies a dual-faceted problem within CRM implementations:
- Scalability of Managed Services: People-centric businesses struggle to scale due to their reliance on human resources.
- Sustained CRM Adoption: Treating CRM implementations as finite projects rather than ongoing, living systems leads to poor user adoption and, consequently, low ROI.
Notable Quote:
"A CRM is a living organism and an internal product used by end-users. If they don't adopt it, your ROI is zero."
— Matt Bolian (09:08)
Tech-Enabled vs. Tech Stack
A significant portion of the discussion revolves around distinguishing between merely having a tech stack and being a tech-enabled organization. Matt clarifies that being tech-enabled transcends the mere possession of tools; it embodies the systematic use of technology to drive efficiency, scalability, and consistent delivery without over-reliance on human intervention.
Key Insights:
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Tech-Enabled Standards: A tech-enabled organization can sustain and replicate success without the founders' direct involvement. This attribute is crucial for long-term viability and scalability.
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Margin Optimization: By leveraging technology, companies can reduce the cost of goods sold (COGS), thereby increasing gross margins and enhancing overall profitability.
Notable Quote:
"Tech-enabled means that you will have improved margins with the existing team and system that you have today."
— Matt Bolian (19:22)
Strategic Implementation of Technology
Matt outlines a strategic approach for partners to integrate technology effectively:
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Deep Expertise Over Breadth: Focus on mastering fewer technologies to ensure in-depth expertise and superior service delivery.
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Recurring Revenue Streams: Prioritize tools and integrations that offer recurring revenue, enhancing financial stability and scalability.
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Efficiency Gains: Evaluate technologies based on their ability to save time and resources, directly impacting profitability.
Notable Quote:
"How are you building those systematically into your implementation so you can standardize and move faster?"
— Matt Bolian (15:34)
Leveraging the HubSpot Ecosystem
The HubSpot ecosystem plays a pivotal role in enabling partners to become tech-enabled. Matt emphasizes that using HubSpot alone does not make a business tech-enabled; rather, it is the strategic and systematic use of HubSpot's tools to enhance scalability and efficiency that defines a tech-enabled organization.
Key Points:
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Standardization through HubSpot: HubSpot provides standardized processes that facilitate repeatable and scalable service delivery.
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SuperD’s Solution: By offering tools like SuperD, partners can quickly deploy CRM configurations, enhance user adoption, and reduce manual intervention.
Notable Quote:
"Using HubSpot means you're process enabled, not necessarily tech enabled."
— Matt Bolian (25:58)
Building Strong Relationships with Tech Partners
Matt provides actionable advice for partners looking to deepen their relationships with technology providers:
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Advocacy: Publicly endorse and advocate for the technologies you use, enhancing visibility and credibility.
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Communication: Proactively engage with tech partners through updates and collaborative opportunities.
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Practical Use: Demonstrate genuine usage of the technology in your operations, showcasing its value and effectiveness.
Notable Quote:
"Be an advocate, just send them an email, and actually use it. Drink the champagne."
— Matt Bolian (35:23)
SuperD’s Impact on Efficiency and Adoption
Matt highlights the two most impactful features of SuperD:
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Sales Audit Automation: Drastically reduces the time required to build dashboards or workflows from hours to mere seconds, highlighting significant efficiency gains.
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Enhanced CRM Adoption: Facilitates ongoing user training and support through embedded documentation and loom videos, ensuring sustained CRM utilization and reducing support queries.
Notable Quotes:
"Building a dashboard that used to take five hours now takes fifteen seconds."
— Matt Bolian (35:57)
"If you can implement with experts and have training built-in, you don't have to answer Slack messages over and over again."
— Matt Bolian (36:04)
Final Thoughts: The Strangest Part of Being Tech-Enabled
When asked about the strangest aspect of a tech-enabled life, Matt reflects on the transition from selling services to selling products. He notes the shift from personal interactions to scalable, technology-driven solutions as both challenging and rewarding.
Notable Quote:
"Selling product is totally different, especially going from 0 to 100k AR and 100k to 1 million. You're selling a dream initially, but it’s much faster afterwards."
— Matt Bolian (38:01)
Conclusion
The episode delves deep into the intricacies of scaling managed services organizations through strategic tech enablement. Matt Bolian's insights illuminate the path for partners within the HubSpot ecosystem to enhance their scalability, profitability, and long-term viability by embracing technology-driven solutions. By transitioning from people-centric models to tech-enabled frameworks, organizations can unlock unprecedented growth and efficiency, positioning themselves to capitalize on the expansive opportunities within the $30B HubSpot ecosystem.
Closing Quote:
"If you don't become tech-enabled, it's really hard to scale a people organization where SaaS is fundamentally tech-enabled."
— Matt Bolian (39:06)
Takeaways:
- Embrace a subscription-based service model to ensure predictable revenue streams.
- Transition from delivery-focused to product-oriented mindsets for scalability.
- Leverage technology to enhance margins and reduce dependency on human resources.
- Foster deep expertise in select technologies to provide superior service.
- Utilize the HubSpot ecosystem strategically to become a tech-enabled organization.
- Build strong, advocacy-based relationships with technology partners to enhance credibility and collaboration.
This episode serves as a comprehensive guide for service providers aiming to scale efficiently by harnessing the power of technology, offering actionable strategies and profound insights from industry leaders like Matt Bolian.