“Fantastic work culture” with Martín Frascaroli CEO at Aivo Martin

As a part of my series about about how leaders can create a “fantastic work culture”, I had the pleasure of interviewing Martín Frascaroli, CEO at Aivo Martin is a self-made entrepreneur with over 14 years of experience at the forefront of customer service, marketing, AI and technology. He studied computer system engineering and marketing but realized he wasn’t meant to be a student. In 2005 he founded Y2K Networks, a digital marketing and software company, which helped him find his calling: using AI technology to give back people’s time. In 2012, Martin founded Aivo, which rapidly grew from startup to global enterprise with over 160 customers across 22 geographies. Martin has been an Endeavor entrepreneur since 2011 and in 2014 he was recognized by the MIT Technology Review (Innovators under 35).

Thank you so much for doing this with us! Can you tell us a story about what brought you to this specific career path?

I think, in my case, rather than choosing a path, it formed itself as I went along. As an entrepreneur, I was always a serial nonconformist, with a passion for technology and a curiosity that makes me want to read and learn new things constantly.

My first job was when I was 14, building computers. I started installing radio antennas, then opened an Internet cafe and later on a company that created websites. Later, I started a software development company that ended up bankrupting. But this experience helped me see how many companies use their clients’ time at their disposal and how this trend had to change. We recognized that the challenge was to revolutionize the way in which customers and companies interacted. So, I started researching new technologies, methods and, specifically, artificial intelligence until developing what is Aivo today, a tech company that uses AI to give people’s time back.

Today companies like Amadeus, Bayer, Avon, Falabella, General Motors, Whirlpool, LG, ADT Security and Renault are using our technology to improve their customer service strategy, increase sales, automate processes and facilitate internal communication.

Can you share the most interesting story that happened to you since you started leading your company?

It is hard to think about just one story. The truth is, at a professional level, I have been extremely lucky, to the point it sometimes seems unreal. I come from a small farming town and I was a university drop-out in Argentina, but I ended up building a global AI tech company and studying at Stanford and Harvard.

But yes, there is a story that has impacted me personally. A few years ago I participated in a talk by Endeavor, an Argentine organization that promotes entrepreneurship culture and accelerates business, which took place in Salta, a rural border town located in northern Argentina. There were 2000 people in the room and I spoke, like many other times, about my background and what it is to be an entrepreneur. But I was very surprised by people’s warmth and feedback that day. They even asked me to take pictures with them! And then, it struck me. It was the first time somebody was telling these people they could accomplish anything they wanted. That somebody was actually encouraging them to follow their dreams.

Two years later, I was walking in Buenos Aires and a man recognizes me on the street and says hi. He tells me that he had attended that talk and, because of it, he was encouraged to create his own company. His partners and him had done great with it and were now about to sell it. It really moved me. It was an incredibly humbling situation. That day in Salta, I went to tell my story without thinking it was going to have that big of an impact, and it surprised me how listening to a few words and a life story at the right time can be so significant to people.

Another really important time for me was when I mentored a team of guys who created Usound, an app designed for people with hearing problems. It’s a great company and, now, it has been acquired by Samsung.

The point is that I don’t come from a wealthy family, I don’t know how to speak English that well and I never had an inspiring figure at home. If I could do all this, then anyone can. And don’t underestimate the impact that each of our stories and experiences has to encourage someone.

Are you working on any exciting projects now? How do you think that will help people?

Many! But have two projects I’m particularly excited about this year. The first is to make technology accessible, carry our products globally so that any company can use them at any level. The second is for our company’s culture to continue evolving. This means adapting to cultural changes.

On the other hand, there are constant challenges with artificial intelligence and the potential benefits they can keep on bringing are enormous. We are investing and working even more with deep learning, machine learning and user behaviour predictive technology in order to keep improving people’s quality of life and the relationships between companies and customers.

Ok, lets jump to the main part of our interview. According to this study cited in Forbes, more than half of the US workforce is unhappy. Why do you think that number is so high?

People are unhappy for different reasons.

Historically and culturally there is a generational effect. Our parents told us so many times that if we studied and had a job we would be happy, but life isn’t always that simple. You grow up with an ideal that later, just isn’t reflected in real life.

On the other hand, at the corporate level, many companies don’t have an organizational culture focused on people, or a corporate culture at all. They come from an industrial or vertical structured company where the boss is the guy who says what needs to be done. The potential to create and generate value in these cases is practically nil. Since these leaders and companies are more concerned with results, the environment they create doesn’t involve people. They don’t care about making their employees grow and there isn’t any transparency about individual expectations. There is no place for feedback and so, both employees and bosses are unhappy. It is extremely important in a company that everyone is clear about what is expected of them, whether it is the boss about the employee, or vice versa.

But not everything is due to external factors. On a personal level, people also have to understand that happiness is their own responsibility and it doesn’t just fall back on the company. Of course the company has to create a positive work environment, but beyond that, people must be willing to go out of their comfort zone in order to be happy. If the company you work for doesn’t make you happy, go find another one.

In summary, I believe that happiness is collaborative between companies and employees, and corporate culture is the foundation of it all.

Based on your experience or research, how do you think an unhappy workforce will impact a) company productivity b) company profitability c) and employee health and wellbeing?

A while ago I read an article in the Harvard Business Report that said happiness in the workplace increases sales by 37%, productivity by 31% and the accuracy with which tasks are performed by 19%. Without a doubt, unhappy employees have a negative impact in any company because unhappiness spreads like a virus. If a group is not happy, they will probably end up convincing or influencing others about how bad things are. Instead of raising the bar on productivity, motivation and energy, they lower it, and this impacts all areas of the business.

For example, if the Customer Success team of a company is unhappy, it will reflect in its interaction with the client. Consequently, the client’s perception of the company will end up being negative too.

Those who are satisfied with the company’s culture are always raising the bar. It’s a domino effect. Teams that work well try to convince others that things can be done better. And this directly affects productivity, profits and work environment in general.

Can you share 5 things that managers and executives should be doing to improve their company work culture? Can you give a personal story or example for each?

1. Have clear objectives. Companies have to know where they are going and each person must understand their own impact. Our objectives don’t only impact ourselves, but also other departments within the company, producing a domino effect. For example, at Aivo, reaching our quarterly financial goals doesn’t only depend on the amount of sales closed by the sales team, but also on the number of leads generated by the marketing team or the upselling or cross-selling opportunities the customer success team detects.
2. Give feedback. People cannot improve if they don’t know how to do it. At Aivo, the first time we did feedback sessions, we realized we have to communicate what each person needs to do in order to improve their work. From then on, people were more confident and happier with their work because they knew what was expected of them and where they should focus their energies.
3. Metrics are fundamental. You cannot improve what cannot be measured. This is especially true in global companies where there are multiple cultures involved, with different codes and values, and it’s important that they’re all aligned. It’s not a question of giving effort awards, but emphasizing that the important thing is to reach the goal. It doesn’t matter if you had to swim 8 hours to cross a river or if you used a boat and crossed in 10 minutes, the point is that you did it.
4. Don’t force the company objectives on people’s reality. For example, at Aivo, we originally wanted the entire development team to be at our HQ, but eventually we realized that to work with the best we should be more flexible, maybe not everyone can relocate and we need to adapt to wherever the strongest talents are. The leader has to understand people’s personal lives and limitations, in order to create environments that let them maintain a work-life balance, and this way capitalize on their potential.
5. Listen to what people want and create an environment in line with it. It’s extremely important to understand your team’s composition and make sure that their priorities, needs and aspirations are heard. At Aivo, for example, we know that our team is curious and values learning, so we create an environment for employees to continue challenging themselves. That’s why we offer training and courses for all employees.

It’s very nice to suggest ideas, but it seems like we have to “change the culture regarding work culture”. What can we do to make a broader change in the US workforce’s work culture?

As a society, we need to pay closer attention to the way we treat each other. Most people work hard but they are still not happy with their jobs. And this happens, partially, because sometimes the way in which people interacts is not always the ideal. Comradeship, cooperation, respect and modesty are basic characteristics that should be present in all aspects of life. Work environment should also be a reflection of that. If we achieve this, it is the first step towards people being happier at work.

In second place, I am also convinced that not every person is meant for every company. If one doesn’t fit into the corporate culture of the company they work with it is extremely hard to be fulfilled where they are. It is important for businesses to create and spread a corporate culture where every employee understands the genetic of the business. As well as it is vital for the employee to see if their own values and objectives match those of the organization.

At Aivo, we know that not everyone can work here. Companies must make their corporate culture clear and make sure to share it during recruiting processes so a person can define if that culture is going to make them happy or not. It cannot just be a monetary offer and a job description. With that in mind, it is also necessary to move from a more industrial area to a more organic one.

It is said that good people leave a company because their boss is bad and bad people leave a company because their boss is good. That phrase speaks a lot to me.

How would you describe your leadership or management style? Can you give us a few examples?

My management style is ever-changing, it has always varied with the stage the company has been at and with my progress as a leader. The company has to evolve and always try to find people who want to get out of their comfort zone.

Personally, I like to be among people who want to be better all the time. At management level, I like to be transparent, share the information and knowledge I have and get involved. I like my team to ask me questions, to inspire me and tell people where we want to go, so everyone has a clear image of our why. For me, everyone has to think big, the management, the leadership and the the whole team.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

I have met a lot of people during my life so if I thanked just one, it would be quite selfish. I’m lucky because life made me cross paths with people who have helped me at every stage as an entrepreneur and as a CEO. Endeavor, for example, has introduced me to many extremely smart, kind and driven people.

How have you used your success to bring goodness to the world?

With Aivo, I’ve not only founded a tech company that helps other businesses be more efficient, but we’ve challenged how people and companies interact with each other.

Our mission from the beginning has been to give time back to people. There is an incredible amount of time spent by both companies and customers filling out forms, sending emails without receiving answers or waiting for someone to answer the phone. In 2018, for example, with our technology, we gave 3.5 million hours back to companies and customers. In 2020, we want to reach 15 million hours, almost triple that.

As a company we want to generate a change in the way businesses of all industries behave, help them be more empathetic when it comes to interacting with their customers. It’s important that businesses consider their customers as an asset by listening to them and treat them like the individuals that they are. Our goal is to provide technologies that create an empathic environment.

Finally, in terms of corporate social responsibility, it never stops surprising me how a project that was started by a handful of people has become a global source of work for talents in so many countries, like Aivo.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

“People may not remember exactly what you did or what you said, but they will always remember how you made them feel”. I like this phrase because it speaks to me about the mentors you met and the opportunities you had, about humility, sharing and valuing the time other people are giving you. Making people feel good doesn’t cost anything, it’s a life choice. It’s the first step towards giving back.

You are a person of great influence. If you could inspire movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

From my point of view, the world is divided into two types of people: doers and followers. We need more “doers”. I want to inspire people to do what they like on their own and not wait for others to tell them how to be a better person or how to do their job better. For me, that’s being a doer. It also means being responsible for your own happiness. Many look for it outside themselves and that is not ideal.

Personally, I like to surround myself with a team that wants to learn all the time, that has curiosity, autonomy, that is humble and wants to keep moving forward. These people are the assets of the future.

If I could inspire any movement, I think that would be it. A movement where people aren’t afraid to pursue their dreams, continually challenge themselves, make mistakes, learn and motivate themselves to build their own happiness. I believe this thinking brings well-being to the world, both in and out of the workplace.

Thank you for these fantastic insights. We wish you continued success!