Patrick Thean of Rhythm Systems: 5 Things I Wish Someone Told Me Before I Became A CEO

It’s Lonelier Than You Think: When you become a CEO, isolation can be overwhelming. The higher you go, the fewer peers you have. As previously discussed, Jack’s story shows that he was still replaced despite doing his best and achieving revised targets during a challenging period. The decision to replace him was made with little regard for his efforts and honesty, highlighting the isolation and high stakes of the role​.

As a part of our series about “Filmmakers Making A Social Impact” I had the pleasure of interviewing Patrick Thean.

Patrick Thean is an international speaker, CEO coach and serial entrepreneur. He is a USA Today and Wall Street Journal bestselling author. His work has been seen on NBC, CBS, and Fox. Patrick was named Ernst & Young Entrepreneur of the Year in 1996 for North Carolina as he grew his first company to #151 on the Inc 500 (now called the Inc. 5000). After a successful exit, he has been on a mission to help CEOs build great companies and achieve their dreams.

Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you better. Can you tell us a bit about your “backstory”? What led you to this particular career path?

Absolutely! It’s a pleasure to be here and share my journey. I was born and raised in Singapore, where the culture of hard work and perseverance is deeply ingrained. My parents instilled in me the importance of education and the belief that with dedication and a commitment to excellence, hard work, anything is possible. This foundation set the stage for my academic journey and eventual move to the United States.

After graduating from Cornell University, I started my first company, Metasys, Inc., in 1993. The company grew rapidly, and we were recognized as one of the fastest-growing private companies in America, making it to #151 on the Inc. 500 list. In 1996, I was honored to receive the Ernst & Young Entrepreneur of the Year award for North Carolina.

However, it wasn’t all smooth sailing. As CEO, I experienced firsthand the challenges of rapid growth and the complexities of scaling a business. These experiences were invaluable — they taught me resilience, the importance of strategic planning, and the critical role of execution in achieving success.

After selling Metasys, I reflected on my journey and realized that I wanted to help other CEOs avoid the pitfalls I encountered. I wanted to provide them with tools and methodologies that could help them achieve their dreams. This led to the creation of Rhythm Systems, where we work with company leaders to turn their strategic goals into clear, actionable weekly plans. Our methodology and software creates company-wide alignment, ensures focus and accountability, and allows leaders to have visibility into plan execution.

Today, I am passionate about coaching CEOs and their teams, helping them to build great companies and achieve their personal and professional goals. It’s incredibly fulfilling to see the transformation in the companies and leaders I work with, knowing that I played a part in their success.

This journey has been about more than just business for me. It’s about making a positive impact, sharing knowledge, and helping others achieve their full potential. And that’s what continues to drive me every day.

We need to achieve success with some help along the way. Is there a person you are grateful to who helped get you to where you are? Can you share a story about that?

We all need support and guidance on our journey to success, and I’ve been fortunate to have several mentors and supporters along the way. One person who stands out is my former manager, Greg, from my early days at Oracle.

I remember this one particular incident vividly. It was a Wednesday, and I showed up at the office wearing jeans. Greg called me into his office and, rather than reprimanding me, he calmly explained the importance of adhering to the office dress code. He shared how our appearance can impact our professional image and the perception of our clients and colleagues. He didn’t stop at just explaining; he also discussed the consequences of not adhering to the dress code, painting a clear picture of how it could affect my career trajectory.

Greg’s approach left a lasting impression on me. He didn’t just correct my mistake; he coached me. He made me understand the bigger picture and how small actions could have significant impacts. This experience taught me the value of compassionate leadership and the importance of clear, constructive feedback. Greg was the best manager I ever had because he consistently provided this kind of thoughtful coaching and guidance, helping me to grow both personally and professionally.

His influence is one of the reasons I am passionate about coaching and mentoring CEOs today. I believe in the power of compassionate leadership and the importance of helping others see the bigger picture, just as Greg did for me. It’s a reminder that sometimes, the most significant lessons come from the simplest moments of guidance.

Leadership often entails making difficult choices between two good paths. Can you share a story about a hard decision or choice you had to make as a leader?

Leadership is indeed about making tough choices, and one such decision that stands out in my career was during the early days of Rhythm Systems. We were at a crossroads where we had to choose between scaling rapidly by taking on more clients or focusing on refining our product and services to ensure exceptional quality and long-term success.

On one hand, scaling rapidly meant immediate revenue growth and a stronger market presence. On the other, focusing on refining our product meant slower growth but ensured that we were delivering the highest quality and truly helping our clients achieve their goals. Both paths had their merits and potential pitfalls.

I chose to focus on refining our product and services. This decision wasn’t easy because it meant saying no to potential business and immediate revenue. However, I believed that building a strong foundation was crucial for sustainable success. We spent considerable time improving our systems, gathering feedback from our existing clients, and ensuring our methodologies were robust and effective.

There was a moment of doubt when our competitors seemed to be growing faster and capturing more market share. However, this period of introspection and improvement paid off. Our commitment to quality began to show results as our clients started seeing significant improvements in their business performance. This, in turn, led to strong word-of-mouth referrals and a reputation for delivering exceptional value.

Ok, thank you for that. Let’s now jump to the primary focus of our interview. Most of our readers — in fact, most people — think they have a pretty good idea of what a CEO or executive does. But in just a few words, can you explain what an executive does that is different from the responsibilities of the other leaders?

An executive, particularly a CEO, has distinct responsibilities beyond the typical leadership roles within an organization. While other leaders focus on specific functions or departments, an executive oversees the entire organization, aligning all parts towards a unified vision and strategy. They are responsible for setting the overall direction, making high-stakes decisions, and ensuring the long-term sustainability and growth of the company. Executives must also manage relationships with key stakeholders, including the board of directors, investors, and external partners. This requires a broad perspective and navigating complex, high-level negotiations. Unlike leaders who concentrate on day-to-day operations, executives must balance immediate demands with strategic foresight, anticipating market shifts and guiding the company through change. Ultimately, the CEO’s role encompasses integrating various functions, cultivating organizational culture, and committing to the company’s overarching goals and values.

What are the “myths” about being a CEO or executive that you would like to dispel? Can you explain what you mean?

Absolutely, I’m glad you asked. In my new book, “The Journey to CEO Success,” I discuss several myths that often surround the role of a CEO or executive. Here are a few key myths I’d like to dispel:

Myth: CEOs have all the answers.

Reality: A successful CEO knows that they don’t have all the answers. Instead, they surround themselves with a talented team, ask the right questions, and foster a culture of collaboration. In my book, I emphasize the importance of curiosity and continuous learning. Great leaders are always seeking input and are open to new ideas. They understand that their role is to guide the organization, not to be the sole source of knowledge.

Myth: CEOs must be invulnerable.

Reality: There’s a common belief that CEOs need to be tough and unyielding, showing no signs of vulnerability. However, I believe that vulnerability is a strength. Sharing challenges and being transparent about struggles can build trust and inspire your team. It’s about being authentic and approachable, creating an environment where everyone feels comfortable sharing their ideas and concerns.

Myth: Success is all about hard work.

Reality: While hard work is essential, it’s not the only ingredient for success. Strategic planning, effective execution, and maintaining a healthy work-life balance are equally important. In “The Journey to CEO Success,” I talk about the concept of “working smarter, not harder.” It’s about focusing on the right priorities, leveraging your strengths, and ensuring that you and your team are aligned and working efficiently towards common goals.

Myth: CEOs must focus solely on financial targets.

Reality: Financial success is important, but it shouldn’t be the only focus. A great CEO understands the importance of purpose and vision. They inspire their team by connecting their daily work to the larger mission of the company. This creates a sense of meaning and drives engagement and performance.

Myth: CEOs are lone wolves.

Reality: The image of the solitary CEO making decisions in isolation is outdated. Today’s successful CEOs are collaborative leaders. They build strong networks, both within and outside their organizations, and actively seek advice and support from peers, mentors, and coaches. In my experience, building a community of trusted advisors and fostering strong relationships is crucial for sustained success.

What is the most striking difference between your job and how you thought the job would be?

The most striking difference between my job as a CEO and how I initially thought it would be is the level of emotional intelligence and interpersonal skills required. When I first envisioned being a CEO, I imagined it would be primarily about strategic planning, financial management, and decision-making. While these elements are undoubtedly important, I quickly realized that the heart of the role lies in understanding and managing people.

In my early days, I believed that success hinged on having the best strategies and making the right decisions. However, I’ve learned that even the best strategies can fall flat if you don’t have a motivated, aligned, and engaged team to execute them. The ability to inspire, connect with, and support your team is what truly drives a company forward.

One example that brought this realization home was during a challenging period for my company. We were facing significant market pressures, and the team was feeling the strain. I knew that simply pushing harder wouldn’t be enough. Instead, I focused on open communication, empathy, and understanding the personal and professional challenges my team members were facing. By being present and supportive, we were able to navigate the difficulties together, ultimately emerging stronger.

Do you think everyone is cut out to be an executive? In your opinion, which traits increase the likelihood that a person will be a successful executive, and what type of person should avoid aspiring to be an executive? Can you explain what you mean?

Not everyone is cut out to be an executive. Specific traits can significantly increase the likelihood of success in this role, and certain types of individuals might find it particularly challenging.

To be a successful executive, you need an intense curiosity and a continuous desire to learn. This means seeking out new information, being open to feedback, and being willing to adapt based on that feedback. Humility is another crucial trait. Executives must recognize their limitations, seek advice from others, and be willing to acknowledge mistakes and learn from them.

Resilience and the ability to handle stress are also essential. The executive role is fraught with high-pressure situations and significant responsibilities. Navigating these challenges while maintaining a clear vision and steady leadership is vital. Strong interpersonal skills are necessary to build and maintain relationships with key stakeholders, including employees, board members, and investors.

On the other hand, individuals who are not comfortable with uncertainty, struggle with delegation, or have a rigid mindset might find the role of an executive particularly challenging. The job requires a high degree of flexibility and the ability to pivot strategies when necessary. Those unable to embrace change or who prefer a more predictable and controlled environment may not thrive in an executive position.

What advice would you give to other business leaders to help create a fantastic work culture? Can you share a story or an example?

I remember a time at my co-author Michael Praeger’s company, AvidXchange, when they recognized the significance of integrating core values and mindsets into their company culture. During a period of hyper-growth, they made a concerted effort to hire individuals who not only had the necessary skills but also believed in their mission and shared their core values. This strategic focus on aligning new hires with the company’s values of teamwork, innovation, and customer success proved to be a competitive advantage. It helped them create a cohesive, motivated workforce committed to the company’s goals.

Reflecting on AvidXchange’s approach, it’s clear that creating a fantastic work culture starts with a strong foundation of core values. The key is consistency and authenticity. Employees must see that these values are not just corporate jargon but principles that guide every decision and action within the company.

One way to do this is through regular and transparent communication. Leaders should consistently share how the company’s values are driving decisions and celebrate stories that highlight these values in action. This keeps the values at the forefront of everyone’s mind and shows that they are integral to the company’s success.

Another critical aspect is recognition. Creating programs that reward employees who exemplify the core values reinforces their importance. At Rhythm Systems, we have a “Values Champion” award that recognizes team members who go above and beyond in living out our values. This not only acknowledges their contributions but also sets a benchmark for others to follow.

Leaders must also model the behaviors they want to see. When employees see their leaders embodying the company’s values, it builds trust and sets a powerful example. It’s about walking the talk and demonstrating through actions, not just words, that the values are non-negotiable.

How have you used your success to make the world a better place?

Using my success to make the world a better place has always been a core part of my journey. I believe that true success is not just measured by business achievements, but by the positive impact we can have on others and the broader community.

One of the ways I’ve tried to make a difference is through my involvement with Samaritan’s Feet, an organization dedicated to providing shoes to children in need around the world. This cause is close to my heart because it addresses both immediate needs and long-term health and education benefits. By helping to provide shoes, we’re protecting children from debilitating diseases and giving them the opportunity to attend school and pursue their dreams. I’m particularly proud of helping Samaritan’s Feet set and achieve their Big Hairy Audacious Goal (BHAG) of putting ten million pairs of shoes on children’s feet worldwide. Today, we’re envisioning a world with zero shoeless children, and it’s inspiring to be part of such a transformative mission.

Fantastic. Here is the primary question of our interview. What are your “Five Things I Wish Someone Told Me Before I Became A CEO” and why? (Please share a story or example for each.)

1. It’s Lonelier Than You Think: When you become a CEO, isolation can be overwhelming. The higher you go, the fewer peers you have. As previously discussed, Jack’s story shows that he was still replaced despite doing his best and achieving revised targets during a challenging period. The decision to replace him was made with little regard for his efforts and honesty, highlighting the isolation and high stakes of the role​.
2. The Pressure to Perform is Unrelenting: The constant pressure to meet targets and deliver results can be daunting. My co-author, Michael Praeger, experienced this during AvidXchange’s journey to becoming a public company. Over 23 years, Michael faced immense pressure to ensure financial stability, manage investor relations, and maintain company culture amid rapid growth. Preparing for the IPO required critical decisions and balancing short-term performance with long-term goals. Despite these challenges, Michael’s resilience led AvidXchange to a successful IPO, securing a $700 million war chest highlighting the intense and ongoing pressure of being a CEO.
3. You Will Fail, and That’s Part of the Process: Failure is an inevitable part of being a CEO, and it’s essential to learn from it. Richard, a potential CEO for Metasys, was asked to take over during a crisis but chose instead to coach the existing CEO, Patrick. Richard’s guidance helped Patrick address unmet customer expectations, operational inefficiencies, and low team morale. By viewing these challenges as opportunities for growth, Richard taught Patrick valuable lessons on leadership and problem-solving. This experience underscored that failures and tough lessons are integral to a CEO’s journey, providing critical insights and driving future success. Embracing failure as part of the process enables CEOs to grow, adapt, and lead their companies more effectively.
4. The Importance of Building and Maintaining a Strong Culture: A strong company culture is a significant competitive advantage. Michael Praeger’s strategic focus on integrating core values and hiring for cultural fit at AvidXchange is a prime example. This approach helped create a cohesive, motivated workforce committed to the company’s goals, proving the importance of culture in achieving long-term success.
5. The Value of Coaching and Continuous Learning: Coaching and continuous learning are crucial no matter how experienced you are. Bob Potter, a seasoned CEO, emphasized the importance of having a coach to provide new perspectives and help navigate challenges. This practice of seeking guidance and investing in self-improvement is vital for sustaining success and personal growth as a leader​.

You are a person of significant influence. If you could inspire a movement that would bring the most good for the most significant number of people, what would that be? You never know what your idea can trigger.

If I could inspire a movement that would bring the most good to the greatest number of people, it would focus on cultivating a habit of daily reflection and gratitude. This movement would encourage people to take time each day to reflect on their experiences, express gratitude for the positive aspects of their lives, and identify areas for growth and improvement.

In my life, I practice a daily routine called “10–10–10,” where I spend 10 minutes being grateful, 10 minutes reflecting on what I can learn from recent experiences, and 10 minutes prioritizing the tasks ahead. This simple practice has significantly enhanced my productivity and well-being and could have a profound impact if adopted more widely.

Imagine a world where people are more mindful, appreciative, and proactive in their personal and professional lives. Such a movement could lead to stronger communities, better mental health, and a more compassionate society.

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.