5 Leadership Tips From Former CEOs

Acting as the CEO of any major company is no small responsibility, and no one can speak to that experience better than James Reagan, former CEO of Leidos, and John McNamara “Mac” Curtis Sr., former CEO of Perspecta. At GAIN 2022, Nick Wakeman, Editor-in-Chief of Washington Technology, had the chance to interview both during the “Federal Systems Integrator Roundtable,” and was able to glean some valuable advice for other industry leaders to implement to strengthen their organizations internally and prime them to be better government partners.??

1. Hiring & Retention – In this post-pandemic world we’re entering, one of the biggest challenges CEOs are facing is employee retention. In recent years, Reagan estimates that employee turnover rates within large contracting companies have increased from 15% to about 20-22%. Curtis also pointed out that a new challenge has emerged of supporting these companies’ missions with a hybrid/remote workforce. This challenge of finding and maintaining quality, reliable talent makes it crucial for hiring managers to focus their energy on candidates they feel can effectively create value for customers.?
2. Diversity & Equity – When Wakeman asked both men how the issues of diversity and equity had affected their respective organizations, Curtis pointed out that as little as five years ago, a conference like GAIN would have likely featured at least 80% male attendees. Studies show that companies with 30% more women in executive ranks perform markedly better, and there’s a new air of expectation from customers to work with more diverse teams. Studies and expectations aside though, it was clear to both Curtis and Reagan from the beginning that pushing for diversity was simply the right thing to do. Both men encouraged leaders in the audience to empower their teams to create and implement solutions that make sense for them, and to commit to seeing those changes through.??
3. Commercial Technology – Changes in commercial technology come in waves, and in recent years, open-source technology has had a significant impact on government contractors. Open source has allowed smaller systems integrators to find their place in the market, and customers tend to trust these smaller companies more readily. Customers are learning how to buy for value and innovation rather than just the lowest price, so “cost shootouts” are occurring less frequently. As such, Reagan suggests that instead of lowering costs to compete on price, leaders reinvest that money into quality sales and marketing teams that can get closer to customers and come up with better, more meaningful proposals. He mentioned that when Leidos implemented that technique, they saw a significant increase in their win rate.?
4. Tough Decision-Making – As a CEO or other industry leader, making difficult decisions is a regular occurrence. When asked how to best deal with them, Curtis emphasized the importance of clarifying within the company what needs to be reported and when. At Perspecta, he said that his team was required to report on any issue that presented a financial or reputational risk, or that impacted their standing in the community. At the end of the day, “it comes down to the lowest common denominator of what is the right thing to do,” he said. Using that basic principle as a guide can help navigate tough decisions as they arise.?
5. Dealing with Risk – One of the most interesting moments during the Q&A was when Reagan and Curtis shared an anecdote about a time when they were pitted against each other for a contract recompete. In 2020, Leidos successfully unseated Perspecta as the incumbent on the Navy’s NGEN contract, a $7.7 billion contract that had previously provided 15-20% of Perspecta’s annual revenue. The situation presented unique challenges for both companies, but the main question that emerged was why Leidos felt so confident spending millions of dollars trying to unseat an incumbent. In his answer, Reagan stated that it was vital for him to understand the company’s odds of winning ahead of the RFP coming out. He put people on the ground to talk to the customer and listen to their pain points and expectations for the next contract. He realized through this process that Leidos had a real shot at providing the customer with what they wanted, and he was correct! At the end of the day, the most important thing to invest marketing dollars in is people who can build relationships with customers and in turn, create tangible value for them.?

While the unique challenges that CEO’s and other industry leaders face are always evolving, these effective solutions have stood the test of time. Investing in quality talent, treating people with respect, spending money wisely, and doing the right thing will always pay dividends. The careers and reputations of people like James Reagan and Mac Curtis who have made a consistent effort to put those solutions into practice are proof enough.??