Podcast Summary: Founder's Story | Ep 209 with Kuty Shalev, Founder of Lumenalta

Episode Title: Rejections. No Office. Global Success – The Kuty Shalev Playbook
Host: IBH Media
Release Date: May 2, 2025

Introduction

In Episode 209 of "Founder's Story" by IBH Media, host delves into the intriguing journey of Kuty Shalev, the visionary founder and CEO of Lumenalta, a pioneering digital transformation company that has thrived as a fully remote organization for an impressive 25 years. This episode uncovers the foundational principles, challenges, and successes that have shaped Lumenalta’s unique approach to business and remote work.

Early Beginnings and the Spark of Entrepreneurship (00:31 – 04:17)

Kuty Shalev begins by sharing his unconventional path from accounting to software development. After graduating from college, he worked at Price Waterhouse, where a serendipitous moment ignited his entrepreneurial spirit. During his time at Columbia Business School, Kuty developed a popular code for the school’s new ethernet systems. When the dean requested this code, Price Waterhouse reimbursed his tuition, signaling to Kuty that traditional accounting was not his path.

Kuty Shalev (02:07): "At that time I knew I wasn't going back to accounting and instead created a company that develops software in order to meet the business needs of the clients."

This pivotal moment led to the founding of Lumenalta, with Price Waterhouse becoming their first client, generating $1 million in revenue in the inaugural year. The necessity to hire remote software developers due to the scarcity in New York City naturally set the stage for Lumenalta’s remote-first model.

Embracing Remote Work: Challenges and Solutions (05:26 – 14:39)

Host probes into the challenges Kuty faced while managing a remote team in the early days, especially when remote work was far from the norm.

Kuty Shalev (05:26): "We faced tons of challenges. I think we did all the things wrong. Right. And you find out it doesn't work and you say, well, hey, I better create to ensure this type of thing doesn't happen."

Kuty emphasizes the importance of procedures and checklists to mitigate the issues inherent in remote operations. By establishing clear guidelines for internet connections, software usage, and communication protocols, Lumenalta was able to overcome early hurdles.

He further discusses the selective recruitment process, focusing on senior developers who not only possessed technical expertise but also had compelling reasons to embrace a remote lifestyle—be it family obligations, personal pursuits like surfing, or other motivations.

Kuty Shalev (11:41): "We're looking for people who want the remote and who can take full advantage of remote."

This meticulous approach ensured a cohesive and committed team, contributing to Lumenalta’s sustained success over a quarter-century.

The Crucial Role of Emotional Intelligence (EQ) (06:52 – 21:48)

A significant portion of the conversation centers around Emotional Intelligence (EQ) and its escalating importance in the age of Artificial Intelligence (AI). Kuty passionately argues that while AI transforms technical landscapes, EQ becomes the differentiator for human performance and collaboration.

Kuty Shalev (06:52): "EQ is a skill. It's something you can learn. So that's why I prefer calling it a Soft skill."

He highlights how EQ enables engineers to navigate rapid technological changes, maintain motivation, and effectively collaborate within cross-functional teams. According to Kuty, these soft skills are essential for adapting to the dynamic nature of modern tech projects.

Kuty introduces the concept of deliberate practice to develop EQ, referencing a Swedish psychologist’s work from 1993. At Lumenalta, coaches facilitate structured, goal-oriented activities that simulate real-world scenarios, allowing team members to practice and enhance their emotional and collaborative competencies.

Kuty Shalev (21:48): "Deliberate practice where structured, goal-oriented and feedback given approaches is what's required to build skills."

This innovative method shifts the focus from traditional HR approaches to a more interactive and engaging system of personal and professional development.

Digital Transformation and Emerging Technologies (14:39 – 18:03)

The discussion transitions to digital transformation and how Lumenalta positions itself amidst the rapid advancements in technology and AI. Kuty explains that their focus on interoperability and flexibility sets them apart from competitors who often push rigid, one-size-fits-all solutions.

Kuty Shalev (15:12): "We design modular adaptable architectures that give clients options so they're not tied to a single cloud provider, SaaS solution or proprietary tech stack."

Lumenalta’s pragmatic approach emphasizes lightweight, cost-effective proofs of concept that allow clients to test and scale solutions efficiently without the substantial financial and temporal commitments typical of traditional IT projects.

Furthermore, the remote-first model enhances Lumenalta’s speed and scalability, enabling them to staff projects swiftly and reinvest savings from overhead costs into senior engineering talent. This agility is crucial in a tech landscape where new technologies emerge weekly, and the ability to adapt quickly determines success.

Overcoming Adversity and Building Resilience (18:45 – 26:58)

Kuty candidly shares moments when he contemplated giving up, attributing much of his early struggles to a lack of emotional intelligence. His introspection led to a profound realization: understanding and empathizing with others is pivotal for both personal growth and organizational success.

Kuty Shalev (18:45): "If your focus is so inward to yourself... you don't notice what it is that others need in order to work collaboratively with them."

This insight propelled Lumenalta to invest heavily in soft skills development, replacing traditional HR roles with coaches dedicated to enhancing each engineer’s interpersonal abilities. By fostering an environment where mistakes are seen as learning opportunities and encouraging open communication, Lumenalta cultivates a resilient and supportive team culture.

Advice for Aspiring Entrepreneurs and Future Leaders (27:48 – 30:46)

As the conversation winds down, Kuty offers invaluable advice to listeners aspiring to embark on their entrepreneurial journey. He emphasizes the importance of:

1. Speed and Agility: "Speed wins is phenomenal... what you can get done with less friction." (27:48)
2. Resilience and Perseverance: "Success is, is 80% just showing up. Keep showing up." (27:48)
3. Continuous Learning and Adaptation: Embracing both technical skills and emotional intelligence to navigate challenges.

Kuty underscores that success is a combination of technical prowess and emotional resilience, urging future leaders to cultivate both to build sustainable and thriving businesses.

Conclusion and Resources

In closing, Kuty directs interested listeners to Lumenalta’s website (luminalta.com) for more information on their services and career opportunities. He highlights Lumenalta’s commitment to providing exceptional technical expertise coupled with soft skills, ensuring that their remote teams are not only proficient but also harmonious and effective collaborators.

Kuty Shalev (29:37): "We have a long track record of helping enterprises reach their goals by providing teams of remote engineers with exceptional hard skills and surprising soft skills."

The episode encapsulates Kuty Shalev’s journey from an accounting background to leading a successful global remote company. His insights on remote work, emotional intelligence, and digital transformation offer valuable lessons for entrepreneurs and business leaders navigating the complexities of the modern business landscape.

Key Takeaways:

• Remote Work Pioneering: Lumenalta’s 25-year commitment to remote operations showcases the long-term viability and advantages of a remote-first model.

• Emotional Intelligence as a Core Skill: Developing EQ is crucial for personal growth, team collaboration, and adapting to technological advancements.

• Agile Digital Transformation: Emphasizing flexibility and interoperability allows businesses to stay ahead in a rapidly evolving tech environment.

• Resilience and Continuous Improvement: Embracing mistakes as learning opportunities fosters a resilient and innovative organizational culture.

• Selective Recruitment for Cultural Fit: Hiring individuals who genuinely benefit from and thrive in a remote setting ensures a cohesive and committed team.

Listeners are encouraged to visit luminalta.com for further insights into Lumenalta’s offerings and to explore career opportunities that align with their professional aspirations and personal lifestyles.

Notable Quotes:

• Kuty Shalev (02:07): "At that time I knew I wasn't going back to accounting and instead created a company that develops software in order to meet the business needs of the clients."

• Kuty Shalev (06:52): "EQ is a skill. It's something you can learn. So that's why I prefer calling it a Soft skill."

• Kuty Shalev (15:12): "We design modular adaptable architectures that give clients options so they're not tied to a single cloud provider, SaaS solution or proprietary tech stack."

• Kuty Shalev (18:45): "If your focus is so inward to yourself... you don't notice what it is that others need in order to work collaboratively with them."

• Kuty Shalev (27:48): "Speed wins is phenomenal... what you can get done with less friction."

Final Thoughts:

Episode 209 of "Founder's Story" provides an in-depth look into how Kuty Shalev spearheaded Lumenalta’s success through strategic remote work policies, emphasis on emotional intelligence, and agile digital transformation practices. His experiences and insights serve as a guiding blueprint for aspiring entrepreneurs and leaders aiming to navigate and succeed in today’s fast-paced, technology-driven business world.