With decades of experience, Ulf Arnetz is a serial entrepreneur. He has founded several companies and grown them into multi-million enterprises in different countries and regions and has successfully completed four strategic exits to NASDAQ-listed companies in the USA, his last company Corechange was sold to NASDAQ-listed OpenText.
Ulf’s passion for the SaaS industry is channeled into positions as founder, investor, board member, and most importantly, mentor. His knowledge and leadership has been sought after, resulting in board positions at DICE (NASDAQ and nowadays US NASDAQ EA), Cambridge Technology Group (CTP – NASDAQ), Panopticon AB, IOS Group AB, MSAB and Ciceron Group (Advisory Board).
Additionally, Ulf’s accolades include authoring 3 books, winning the prestigious Swedish Entrepreneur of the Year, Deloitte’s Global Fast-500 award, and publishing over twenty thought leadership articles.
Today, Ulf serves as the founder and chairman of Howwe Technologies – a unique solution for executives to bridge the gap between strategy and execution – and founder of Reforce New Ventures (RFNV).
Company: Howwe Technologies
We are thrilled to have you join us today, welcome to ValiantCEO Magazine’s exclusive interview! Let’s start off with a little introduction. Tell our readers a bit about yourself and your company
Ulf Arnetz: Thank you for having me. I’m Ulf Arnetz, a serial entrepreneur with a passion for bridging the gap between business strategy and execution. My journey in the tech industry spans several decades, during which I’ve had the privilege of founding and growing multiple companies into multi-million dollar enterprises across different countries.
My current venture, Howwe Technologies, is at the forefront of solving one of the most pressing challenges in business today: the execution of strategic plans. We’ve developed a unique SaaS solution that helps executives translate their vision into actionable steps and measurable results.
Throughout my career, I’ve always been fascinated by the intersection of technology and business strategy. This led me to found several successful companies, including Corechange, which was acquired by OpenText, a NASDAQ-listed company.
At Howwe Technologies, we’re tackling a problem that plagues a majority of businesses – the failure to effectively execute their strategies. Our digital platform provides real-time insights and facilitates alignment across all levels of an organization, from the C-suite to frontline employees.
We recently conducted a comprehensive study involving 300 global CEOs and managers, which revealed some startling insights about the disconnect between strategy formulation and execution in today’s business landscape. These findings have reinforced our mission to empower leaders with the tools they need to turn their strategic visions into reality.
In essence, Howwe Technologies is not just about software; it’s about transforming how businesses operate in an increasingly complex and fast-paced world. We’re committed to helping organizations achieve their full potential by ensuring that every team member understands, contributes to, and executes the company’s strategic priorities.
Can you share a time when your business faced a significant challenge? How did you navigate through it?
Ulf Arnetz: Absolutely. One of the most significant challenges we faced at Howwe Technologies was our transition from a service-oriented business model to a true SaaS company. This shift occurred between 2017 and today, and it was a transformative journey for us.
Back in 2017, our revenue mix was heavily skewed towards services: 70% came from onboarding services, while only 30% was from our product. We realized that to scale effectively and provide more value to our customers, we needed to flip this ratio and become a product-led company.
The challenge was multifaceted:
- We had to invest heavily in our application, essentially building our business and organizational know-how directly into the software.
- We needed to make our product more intuitive and self-serve, reducing the need for extensive onboarding services.
- We had to maintain our commitment to customer success, ensuring CEOs, COOs, and other executives could still drive adoption and alignment within their organizations.
All of this was happening while we were expanding internationally, particularly into the U.S. market.
Navigating through this challenge required a bold strategy and careful execution:
- We leveraged AI to incorporate role-specific “HOW” activities into our application, making it more valuable and easier to use for employees at all levels.
- We streamlined our onboarding process, turning it into a facilitation service that focuses on creating internal buy-in and pull from managers and employees.
- We invested in product development while knowingly accepting a temporary decrease in service revenues.
- We maintained a laser focus on our core mission: helping companies align their workforce and translate strategy into measurable financial impact.
The results have been transformative. Today, 96% of our revenue comes from software licenses, with only 4% from onboarding facilitation services. This shift has not only made our business more scalable but has also increased our value proposition to customers. By embedding our expertise into our software, we’ve made it easier for organizations to align their teams and execute their strategies effectively.
This journey taught us the importance of having a clear vision, being willing to cannibalize short-term revenues for long-term growth, and always keeping the customer’s needs at the forefront of our decisions.
How has a failure or apparent failure set you up for later success?
Ulf Arnetz: In the world of technology and business, what might appear as a failure often becomes the foundation for future success. This has been a recurring theme throughout my entrepreneurial journey.
In all my ventures, including Howwe Technologies, we’ve followed a similar pattern: starting with an application complemented by a high proportion of consulting services. This approach, which might seem inefficient at first glance, has been crucial to our long-term success.
The apparent ‘failure’ here is the initial reliance on services rather than a pure software play. However, this approach has consistently set us up for later success, and here’s why:
Real-world insights: You can’t create a business-critical application from the confines of your office. Working closely with customers across different roles allows us to understand their real needs and challenges.
Learning through iteration: This approach enables us to make mistakes, learn quickly, and continuously improve our application based on real-world feedback. This iterative process has been key in helping my companies become global leaders in their respective fields.
Understanding the CEO’s perspective: Through this process, we’ve learned that CEOs need more than just a “follow-up” tool. They need a solution that helps them drive and accelerate the entire organization.
Overcoming organizational resistance: We’ve realized that the biggest challenge isn’t technical features, but minimizing organizational resistance. This insight has been invaluable in developing our current solution.
Creating value at all levels: In large organizations with 5-10 levels between the CEO and employees, an application must add value to all users, especially the frontline employees. This understanding has shaped our product development strategy.
This approach has set us up for significant success as market trends catch up with our vision. For instance, we’re now addressing a critical gap in the market: while most corporate functions have digital tools, CEOs often lack a digital application for driving and measuring their most important initiatives.
Our early ‘failures’ in prioritizing services and close customer engagement have given us unique insights into this challenge. According to a McKinsey study, only 8% of companies outperform their peers in strategy execution. Our journey has positioned us to help the other 92% bridge this gap.
In essence, what might have appeared as an inefficient or failing approach initially has actually been our key to developing truly transformative solutions. It’s a reminder that in innovation, the path to success is rarely a straight line.
How do you build a resilient team? What qualities do you look for in your team members?
Ulf Arnetz: Building a resilient team is crucial for any organization’s success, especially in the fast-paced world of technology and business strategy. At Howwe Technologies, we’ve developed a multifaceted approach to building and nurturing high-performing teams:
Talent Acquisition:
1. We leverage our professional networks and partner with top-tier headhunters to find the absolute best talent in the industry. Our goal is to bring in individuals who not only have the right skills but also align with our vision and culture.
2. Leadership Approach: My leadership style evolves with the team’s growth. In the first six months, I take a more hands-on, directive approach. This period is crucial for:
– Establishing clear expectations
– Aligning the team with our strategic goals
– Setting the tone for our work culture
After this initial phase, I transition to a trust-based leadership model, empowering my managers to drive their areas of responsibility.
3. Culture Building: We focus on creating a culture that balances three key elements:
– Learning: Encouraging continuous growth and development
– Performance: Maintaining a high standard of output and results
– Fun: Ensuring that our workplace is enjoyable and fulfilling
4. Qualities We Look For: When building our team, we seek individuals who embody:
– Adaptability: The ability to thrive in a dynamic environment
– Innovation: A mindset geared towards creative problem-solving
– Collaboration: Willingness to work effectively in a team setting
– Ownership: Taking responsibility for their work and its outcomes
– Passion: Genuine enthusiasm for our mission and industry
5. Fostering Resilience: We build resilience through:
– Open communication: Encouraging honest dialogue at all levels
– Continuous learning: Viewing challenges as opportunities for growth
– Celebrating successes: Recognizing both individual and team achievements
– Supporting during setbacks: Providing resources and mentorship during tough times
6. Long-term Development: We invest in our team’s long-term growth through:
– Mentorship programs
– Professional development opportunities
– Cross-functional projects to broaden skills and perspectives
By combining these elements, we’ve been able to build a team that’s not only highly skilled but also resilient in the face of challenges. This resilience has been key to our ability to innovate and lead in our industry.
Remember, building a truly resilient team is an ongoing process. It requires constant attention, nurturing, and a willingness to adapt your approach as the team and business evolve.
How do you maintain your personal resilience during tough times?
Ulf Arnetz: Maintaining personal resilience during tough times is crucial, especially as a leader in the fast-paced world of technology and business. Here’s how I approach this challenge:
Vision and Long-term Perspective:
I maintain my resilience by staying focused on the big picture. In every venture I’ve undertaken, including Howwe Technologies, we’re not just building a product – we’re riding the wave of a significant trend. This long-term vision helps me weather short-term difficulties, knowing we’re working towards something transformative.
Team Empowerment and Trust:
A significant part of my personal resilience comes from the strength of my team. By empowering top performers and making them shareholders, I create a support network of highly motivated individuals who are invested in our collective success. This shared commitment helps distribute the emotional and mental load during challenging times.
Continuous Learning and Adaptation:
I view challenges as opportunities for growth. By maintaining a learning mindset, I can adapt to new situations and find innovative solutions. This approach turns potentially stressful situations into exciting puzzles to solve.
Strategic Timing:
One of my key strategies has always been to enter markets at the right time – when there’s a clear need but before the space becomes saturated. This strategic approach reduces stress by positioning us for success from the outset.
Cultivating a Positive Company Culture:
Creating a culture that balances high performance with enjoyment is not just good for the team – it’s personally rejuvenating. When times are tough, the positive environment we’ve cultivated provides emotional support and motivation.
Personal Practices:
Regular exercise and mindfulness practices to maintain physical and mental health, setting aside time for strategic thinking and reflection, and maintaining a strong network of fellow entrepreneurs and mentors for support and perspective.
Celebrating Milestones:
I make it a point to celebrate both personal and team victories, no matter how small. This practice helps maintain a positive outlook and provides motivation during challenging periods.
Work-Life Integration:
Rather than striving for a strict work-life balance, I aim for work-life integration. This approach allows me to pursue my passion for business while also nurturing personal relationships and interests, which are crucial for maintaining resilience.
By combining these strategies, I’ve been able to maintain my personal resilience through the various challenges of entrepreneurship. Remember, resilience is like a muscle – it grows stronger with exercise. Each challenge overcome not only solves a immediate problem but also builds capacity for facing future difficulties.
What strategies do you use to manage stress and maintain focus during a crisis?
Ulf Arnetz: When it comes to managing stress and maintaining focus during a crisis, I rely on a few key strategies:
Information: I believe in the power of transparency. Keeping everyone informed helps reduce uncertainty and anxiety.
Openness: I foster an environment where team members feel comfortable sharing their concerns and ideas. This open dialogue often leads to innovative solutions.
Maintaining perspective: I always try to look beyond the current crisis. Presenting the next steps and discussing what comes after the difficult period helps maintain motivation and focus.
Fostering camaraderie: Even in tough times, I make sure we have fun together as a team. This builds resilience and strengthens our bonds.
By combining these approaches, we not only weather the storm but often emerge stronger and more united. It’s about turning challenges into opportunities for growth and team building.
How do you communicate with your team during a crisis?
Ulf Arnetz: In times of crisis, effective communication is paramount. I use a mixed approach: in-person meetings, digital channels, and one-on-one interactions outside the office, often in more relaxed, informal settings. While this may seem unconventional, it’s proven to be a key component of maintaining team morale and ensuring open, honest communication.
What advice would you give to other CEOs on building resilience in their organizations?
Ulf Arnetz: My advice to other CEOs on building organizational resilience centers around clarity, structure, and balance. First, ensure that your vision is well-defined, supported by trends and proven results. Present this vision decisively, but within a framework that allows your managers to feel empowered to lead within those clear parameters.
Establish a strong foundation with a structured, digital system for driving and tracking progress. Don’t rely solely on verbal reports—measure everything. Integrate predictive activities into your plans that align with improving revenue and profit, and continuously monitor their impact.
It’s crucial to balance top-down leadership with bottom-up involvement. While it’s important to trust your managers and teams, CEOs must lead from the top, driving the organization towards its Most Important Goals. Too many companies rely solely on bottom-up management, which can lead to complexity, a lack of focus, and increased stress. A resilient organization is one where the executive team sets clear priorities, drives key initiatives, and involves the entire company in a structured, measurable way.
How do you prepare your business for potential future crises?
Ulf Arnetz: I always ensure that our business is financially prepared by maintaining sufficient cash reserves, understanding that crises are inevitable. It’s not a question of if another crisis will come, but when. By fostering a mindset across the team that anticipates challenges, we stay agile and proactive. This preparedness allows us to navigate disruptions confidently, knowing we’ve planned for uncertainty and are ready to act swiftly when needed.
What’s the most important lesson you’ve learned about leadership in times of crisis?
Ulf Arnetz: The most important lesson I’ve learned about leadership in times of crisis is the power of vision, trust, and adaptability. Staying focused on the long-term goal provides perspective and helps weather immediate challenges. As a leader, it’s essential to empower your team—when your top performers are fully invested and motivated, you’re not carrying the burden alone.
Equally important is maintaining a mindset of continuous learning. Crises often reveal new opportunities, and by approaching them as chances to adapt and grow, you can turn obstacles into stepping stones. Lastly, cultivating a supportive and positive company culture ensures that even in tough times, there’s a sense of collective purpose and resilience. Leadership in a crisis is about more than just steering the ship—it’s about equipping and trusting the crew while keeping the destination clearly in sight.
