Owned and Operated Podcast Episode #148: Using Global Talent to Outpace Competition with Sagan's John Matzner

Release Date: October 22, 2024

Introduction

In Episode #148 of the Owned and Operated podcast, hosts John Wilson and Jack Carr engage in a deep conversation with John Matzner, the founder of Sagan—a company specializing in leveraging global talent to enhance business operations within the plumbing, electrical, and HVAC industries. The discussion delves into the strategic use of global talent, the integration of automation and AI, and the broader implications for business growth and competitiveness.

Harnessing Global Talent for Business Leverage

John Matzner begins by emphasizing that hiring global talent is not merely a cost-saving measure but a strategic approach to enhancing customer service and building business leverage. He states:

"I hired global talent to increase my customer service, not save money. Global talent is just the entry point into building leverage in your business." [00:00]

Matzner explains that global talent allows businesses to develop an empowered frontline management team. By combining global hires with automation, companies can create efficient lead generation systems that outperform competitors. This approach shifts the focus from merely reducing labor costs to enhancing service quality and operational efficiency.

Expanding Beyond Traditional Outsourcing

The conversation highlights the evolution of global talent utilization beyond traditional outsourcing models. Matzner underscores the versatility of global talent, stating:

"It's basically anything that can be done remotely." [03:28]

He provides examples of diverse roles that can be effectively managed remotely, from building financial models for private equity to video editing and operations coordination. This broad applicability underscores the potential of global talent to fill various niches within a business, enhancing overall functionality and scalability.

Building a Sustainable Business Model with Sagan

Sagan's success is attributed to its unique business model that emphasizes efficiency and quality. Matzner shares his journey from the foreign service to building a home improvement company, highlighting the challenges of sourcing high-quality talent without venture backing. This led to the realization that a global talent pool could provide the necessary workforce to sustain and grow the business.

He elaborates on the systemization process:

"Global talent is a gateway drug. Once you've experimented with it, you want to explore decentralized leadership and empowered management." [12:14]

This philosophy positions global talent as the foundation upon which businesses can build more sophisticated operational frameworks, leveraging automation and AI to further enhance productivity and service delivery.

The Role of Media and Content in Business Leverage

Matzner discusses the importance of media leverage in building Sagan's brand and attracting clients. He differentiates between the four types of leverage—labor, capital, code, and media—explaining how media leverage, such as content creation, amplifies business reach and efficiency.

"My audience and content, whether it's Twitter, my newsletter, videos, is a form of media leverage, which means I shoot one video and it gets 10,000 views." [11:23]

This strategic use of media allows Sagan to scale its operations without proportional increases in costs, creating substantial value and market presence.

Integrating Automation and AI for Enhanced Efficiency

A significant portion of the discussion focuses on the integration of automation and AI to complement global talent. Matzner explains how AI tools transform low-skill roles into high-skill functions, increasing overall business efficiency without compromising quality.

"AI turns low-skill people into high-skill people. For example, our remote talent is the biggest user of our AI—much more than American talent." [28:58]

He provides a concrete example of automating the cold calling process using AI and airtable integrations to streamline lead generation and management. This not only reduces manual effort but also enhances the accuracy and effectiveness of lead handling.

Future Directions: Scaling Through Capital Leverage and Acquisitions

Looking ahead, Matzner outlines Sagan's plans to utilize capital leverage for scaling through acquisitions. By deploying the Sagan system—integrating global talent, automation, and AI—he aims to acquire and optimize businesses more efficiently.

"We're moving into building an AI tool that automates data parsing, eliminating low-efficiency BPO jobs and enhancing operational scalability." [32:00]

This strategy positions Sagan to not only service individual businesses but also to acquire and integrate multiple companies, driving broader market impact and sustained growth.

Changing Perceptions of Global Talent

Matzner addresses common misconceptions about global talent, advocating for a shift in perception towards recognizing the quality and professionalism of remote workers worldwide.

"Global talent is not just about low-cost labor; it's about increasing the quality of your service and having wonderful representatives of your brand." [22:40]

He challenges the stereotype that global talent is limited to regions like the Philippines with limited skill sets, highlighting the diverse and high-caliber professionals available globally.

Impact of COVID-19 and Technological Advancements

The podcast touches on how the COVID-19 pandemic acted as a catalyst for embracing remote work and global talent. Matzner notes:

"COVID was the inciting event that allowed businesses to realize the potential of remote and global talent." [08:31]

He also discusses the role of high-speed internet in enabling seamless remote operations, eliminating the need for centralized hubs and broader adoption of global talent.

Conclusion: Embracing Innovation for Competitive Advantage

In closing, John Wilson summarizes the key takeaways, emphasizing the importance of leveraging global talent and technology to stay competitive. He encourages listeners to explore Sagan's offerings for enhancing their own business operations.

"If you like what you heard, make sure you check out ownedandoperated.com for more of basically everything." [34:33]

Matzner and Wilson wrap up the conversation by highlighting the transformative potential of global talent combined with automation and AI, positioning this approach as essential for modern business growth and resilience.

Notable Quotes

• John Matzner [00:00]: "I hired global talent to increase my customer service, not save money. Global talent is just the entry point into building leverage in your business."

• John Matzner [03:28]: "It's basically anything that can be done remotely."

• John Matzner [11:23]: "My audience and content, whether it's Twitter, my newsletter, videos, is a form of media leverage, which means I shoot one video and it gets 10,000 views."

• John Matzner [12:14]: "Global talent is a gateway drug. Once you've experimented with it, you want to explore decentralized leadership and empowered management."

• John Matzner [22:40]: "Global talent is not just about low-cost labor; it's about increasing the quality of your service and having wonderful representatives of your brand."

• John Matzner [28:58]: "AI turns low-skill people into high-skill people. For example, our remote talent is the biggest user of our AI—much more than American talent."

• John Matzner [32:00]: "We're moving into building an AI tool that automates data parsing, eliminating low-efficiency BPO jobs and enhancing operational scalability."

Final Thoughts

Episode #148 of Owned and Operated offers invaluable insights into the strategic utilization of global talent and emerging technologies to drive business growth and competitive advantage. John Matzner's expertise highlights the transformative potential of integrating remote workers, automation, and AI, providing actionable strategies for businesses in the plumbing, electrical, and HVAC sectors to thrive in an increasingly globalized and technologically advanced marketplace.

For more information and resources discussed in this episode, visit www.ownedandoperated.com.