I recently spoke to Judson Kauffman and Joe Wolfel, co-CEOs of Terradepth.
Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks, or challenges have been most instrumental to your growth?
Jud: We met in 2004 during our Navy SEAL training and ended up in the same combat unit together in the early years of the GWOT. That experience taught us so much about high-performing teams, about ourselves as individuals, and about how the world works. Having global context and exposure to other cultures and systems is so valuable in business—and especially for leaders. It makes it easier to keep an open mind and admit that there are always other ways of doing things and that maybe your idea isn’t the best idea. Also, working with people who are different from you helps to highlight behaviors that are fundamental to human nature; having a sound understanding of human behavior is critical for good leadership.
Post-military, we stayed together as we began our entrepreneurial journey—over these years, we were involved with several different ventures at all levels of success. We also both went on our own spiritual journeys where we came to terms with our violent and traumatic past, which ultimately made us better humans and helped us find real purpose in our lives, of which Terradepth is central.
Adam: How did you come up with your business idea? What advice do you have for others on how to come up with great ideas?
Joe: We saw a need to understand the 98% of Earth’s biosphere that’s drastically underexplored. Based on our Navy backgrounds and our connection to the ocean, we understood the challenges of scaled subsea exploration. So when we looked at a strategy to address the problem, we used simple heuristics from both our SEAL and business backgrounds to come up with a solution. Our advice here for coming up with great ideas is to examine yourself and your experiences deeply—understand what unique service you can give to the world through analogous thinking. In other words, you have a set of experiences and a genetic makeup that’s utterly unique—that combination gives you a unique outlook on a problem set. Even if that problem is outside your area of subject matter expertise, that’s ok—maybe even preferable. Using analogies from other domains to generate solutions is a powerful tactic.
Adam: How did you know your business idea was worth pursuing? What advice do you have on how to best test a business idea?
Jud: It started with a hunch, which is usually the way these things start, but we had learned about enough failed businesses that we knew our hunch needed to be validated. So, we spent six months interviewing potential customers, asking as many questions as they would allow. This period was extremely important for us; our concept took real shape during this time, and we eliminated a lot of uncertainty. We mentor young entrepreneurs all the time now, and we always make sure they’ve done a thorough market validation—it’s cheap in the long run and absolutely valuable.
Adam: What are the key steps you have taken to grow your business? What advice do you have for others on how to take their businesses to the next level?
Joe: We completed an in-depth and structured market validation before we started the business. We sought to understand market size, dynamics, buying decisions, customer challenges, etc., before we even began working through solutions and strategy. Once we determined there was a viable business opportunity in a large and growing market—and a huge potential for new market creation—we codified our problem statement and began strategic planning to address the problem. A critical part of that strategy is determining the desired end-state, i.e., what right looks like when you’re “done.” Once we determined the broad strategy, we began generating more detailed solutions within the strategy to achieve the desired end-state. Once those solutions were good enough, we began generating a human capital plan to hire towards the execution of (and iteration on) those solutions. The right people, talking about the right things at the right frequency, and executing within the strategy make all the difference between success and failure. Our advice to take your business to the next level is really around strategic assumptions. You’re going to have to make some in order to grow—you’ll have to accept risk in some form. The key is to make the assumption, take the risk, but monitor those assumptions constantly. If an assumption is truly strategic—and it turns out to be wrong—your entire plan (and potentially business) is at risk. You’ll need to pivot quickly at that point. Don’t freak out—and better yet, have a contingency plan for when those strategic assumptions prove themselves invalid.
Adam: What are the best leadership lessons you learned from your time as Navy Seals?
Jud:
Good leadership is all about serving and enabling those around you. If you view your role as that of an enabler, and you understand that your technical skill is leadership (not engineering, marketing, sales, etc.), you are setting yourself up for success.
Leadership is a burden. Look deep inside yourself and ask why you want to be a leader. If your answer is mostly about stoking your own ego (if you like the idea of having the title or getting the interview), you are doomed to pain and failure. If, however, you believe that you are the right person for the job because you care about the team members and you believe you have the strength to make sacrifices for them, then you have a chance at succeeding.
Be authentic. People will usually do what the boss says, but when the boss is also an authentic, honest person, those same people will go the extra mile because they will like you and trust you more. That’s human nature. Don’t fake anything, and don’t be afraid to be wrong—if they see you make a mistake, they’ll be more willing to make mistakes, and that’s where innovation and greatness come from.
Adam: In your experience, what are the defining qualities of an effective leader?
Joe: Empathy, moral courage, the ability to take risks and ownership, and an inherent sense of service and responsibility.
Adam: How can leaders and aspiring leaders take their leadership skills to the next level?
Jud: Read every book you can get your hands on written by smart people—even or especially if they have a different perspective than you. Know yourself intimately by seeking out unique and difficult experiences.
Adam: What is your best advice on building, leading, and managing teams?
Joe: Focus on team cohesion while avoiding groupthink. This is going to require you to manage conflict creatively and constructively. And never, ever freak out and lose control of yourself. You need to be a source of stability and positivity—there will be enough chaos generated by the environment that you shouldn’t be the one adding to it.
Adam: What are your three best tips applicable to entrepreneurs, executives, and civic leaders?
Jud:
Know yourself intimately—especially your weaknesses and blind spots.
Do the right thing, not the easy thing.
You need to learn from your failures—not run from them.
Adam: What is the single best piece of advice you have ever received?
Joe: Don’t be the guy who stays in a situation just because he’s scared of doing something else.
