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When great people leave

In these early days of building Arcadea, we’ve had the good fortune to hire a team of ultra high-quality people. We approached hiring in a very deliberate way to ensure each of these folks met our key attributes for success:

  • High mental acuity; learning agility (ability to scale learning curves quickly)
  • Multi-disciplinary curiosity and ability
  • The type of people who, no matter their or your age, make you question your own abilities and job security by way of their excellence
  • Integrity
  • Energy
  • Ability to sell
  • Irreverence
  • Low-ego, confident, introspective and reflective
  • Readers

These sort of people are hard to find, attract, and hire. They are rare and have plenty of options to choose from. When you find great people and are lucky enough to convince them to come work with you, the last thing you want to do is see them go (assuming of course, you’ve hired the right people for your business!).

Each of our team members left a former employer that would have rather kept them on board. These employers all understood their abilities, potential, and drive. No employer is thrilled to see their best people go. Pretty obvious stuff, and nothing too surprising so far.

What is surprising is how various entities will react when their best people join you. These generally fall into two groups:

Let’s call the first group “Partner Employers”. These are the sort of employers that will wish their people well on the way out. They are glad to see their good people excited about opportunities that are better for them and their families. Partner Employers provided references, pay out bonuses that weren’t technically owed (but ethically should be paid), and make the transitions enjoyable. As a result, the relationships are in place and their brands are magnified throughout the market by happy alumni, who were respected and treated with humanity on the way out. They are of course sad to see good quality people leave but are confident they have offered those folks the best career opportunities and growth trajectory they could within their organizations. Many of the best organizations in the world have alumni that have gone on to success elsewhere – not everyone can be CEO!

But some others become upset and act as if their people have betrayed some sacred bond by leaving. Call these employers the “Stranglers”. They tend to underappreciate high quality employees by downplaying individual competency and attributing any success to their corporate processes and systems. Good employees are a product of the company, rather than the other way around. When employees leave, the Stranglers send phony legal letters, sabre rattle, and call names to both their former dream employees as well as your firm. More often than not, you will run across Stranglers when dealing with employees who seek you out vs. the other way around. And that makes sense – really happy employees are found; unhappy employees (who typically work for bad bosses or companies) are looking outside.

If you hire right and treat people well by giving them responsibility, learning curves, and opportunity, then they probably won’t be looking for jobs. But even then, others will be likely to pursue them from time to time, given that their greatness is apparent to everyone they come in contact with.

Sometimes, you’ve provided the right environment (responsibility, engagement, respect and opportunity) for an employee to build a career and prosper over the long term, but due to a) hiring the wrong person or b) their changing life circumstances, employees want to go somewhere else where they will be happier. In these cases it is incumbent upon your business (and you) to facilitate successful transitions and help those people find the right home. Every great business aspires to be a Partner Employer. While it’s easy to maintain that identity when everyone is happy and together, the time to prove it is when good people leave. This is particularly important in respect of the remaining team – nothing undermines a culture faster than when employees see a formerly highly-regarded colleague denigrated by their boss just for making a choice to leave for an opportunity that was better for their family.

 

If you (or we!) aren’t able to keep great people who otherwise are the right sort of folks for your business, it is your responsibility to introspect and improve. There are no magic spells that compel your people to leave – no unethical tricks that can make adults lose their minds and be brainwashed into joining another firm. If someone great in your organization is leaving, it’s because they found something better elsewhere. Use these opportunities to figure out why that ‘something better’ wasn’t with your organization. Don’t be a Strangler.



And when not great people leave - you should've let them go months ago anyways. Don't make the mistake again!

27 Oct, 2023
TEMSE, Belgium & TORONTO & ORLANDO, Fla.-- Becosoft, a leading provider of POS and ERP solutions for retailers and wholesalers with complex inventories and supply chains, has secured a majority investment from Arcadea Group, a long-hold, growth-oriented SaaS investor. As part of the transaction, Founders and Managing Directors Kristof De Coninck and Davy De Coninck will continue in their roles and maintain a significant equity interest. The partnership will empower Becosoft to enrich its product portfolio, elevate its delivery capabilities, and provide exceptional customer service, all of which will underpin the company's remarkable expansion. Founded by Kristof De Coninck, Becosoft's product suite provides a robust front-end POS and back-end ERP solution for retail and wholesale customers, particularly those with complex inventories and supply chains, such as fashion retailers, fashion wholesalers, and garden centers. The company has a strong presence in the Benelux region and supports pan-European operations for some of the world's largest retail store operators. Kristof De Coninck, CEO and Managing Director of Becosoft, shared his thoughts on the partnership: “Over the years, we've been approached over and over by interested investors. As bootstrapped founders, we sought a collaborator with operating and investing expertise, a partnership model, and a long-term vision. Their partnership will indeed be pivotal in our ongoing mission to serve the retail and wholesale community with high-quality, flexible solutions." Davy De Coninck, COO and Managing Director of Becosoft, expressed his excitement: "Partnering with the Arcadea team is a monumental step for our business. Their best practices and processes will undeniably help us scale and further our reach." Daniel Eisen, Managing Director at Arcadea, commented: "Kristof and Davy have achieved remarkable success as bootstrapped founders. I am excited to partner with them to expand Becosoft's reach across new geographies and industry segments." Paul Yancich, Managing Director of Arcadea Group, added: "Becosoft is a shining example of the kind of businesses we aim to collaborate with. As a rapidly growing, founder-led company, it perfectly aligns with our partnership ethos and our value-add to scaling SaaS companies. We're grateful that Kristof and Davy chose us to be a part of their next chapter." About Becosoft Becosoft is a leading provider for POS and ERP solutions for retailers and wholesalers with complex inventories and supply chains. We deliver 360° solutions for these industries including software, hardware, professional services and support. Becosoft is currently delivering its solutions across Europe. About Arcadea Group Arcadea Group invests in high-quality, strongly growing, typically founder-led vertical software companies over durations of time that no traditional private equity or growth equity firm can match. With headquarters in Toronto, offices in Florida, and portfolio companies in North America, Europe, and Australasia, Arcadea maintains a global investment purview. Arcadea leverages tailor-made, flexible strategies that prioritize value creation for all stakeholders, leveraging a leading, in-house Value Creation and Operational Support Team to improve capital efficiency and accelerate growth. Becosoft Kristof De Coninck CEO kristof.de.coninck@becosoft.be www.becosoft.com
By Paul Yancich 26 Aug, 2023
Arcadea Group Announces Addition of Jenny Jones, Head of Growth
By Paul Yancich 16 Aug, 2023
Henderson, Nevada, Toronto, Canada, and Orlando, Florida | Flight Vector (the “Company”), a leading provider of software solutions to the medical, public sector, utilities and industrial air & ground transport markets, has secured a majority strategic growth investment from Arcadea Group, long-hold, growth-oriented SaaS investor. As part of the transaction, Founder and CEO Scot Cromer will continue in his role as CEO while also maintaining a significant equity interest in the business. The transaction will allow the Company to accelerate its product roadmap and bolster services, delivery, and customer service, all in support of the Company’s tremendous ongoing growth. Founded by Scot Cromer in 2004, Flight Vector’s suite of software is extensive, encompassing solutions for computer-aided dispatch (“FV CAD”), crew & mission (“FV Crew”), flight & duty and Operations Control Centers (“FVO”), smart routing & decision support, and fleet management (“FV Map” and “FV Transport”). Designed to allow each customer to completely customize their solution to meet their unique needs, the product suite increases efficiency, reduces workload, promotes safety, and ensures compliance - all while being extremely easy to use. Scot Cromer had this to say about the transaction: “Over the years, we've been courted by numerous investors and buyers. As a bootstrapped founder, I sought a partner with strong operational support capabilities and a compelling vision for the Company. Arcadea was the only firm that ultimately met all my requirements. This partnership helps us enhance product offerings and customer service, expand our reach in current and new markets, and provides an environment that will ensure we continue to achieve at a high level.” Paul Yancich, Managing Director of Arcadea, remarked, “With our investments in aviation and public safety transport, we quickly validated that Flight Vector is by far the dominant player in the market. Their products, notably OCC and Flight & Duty (“FVO”), demonstrate unparalleled quality and industry interest, and the flagship air and ground CAD offering (“FV CAD”) is truly the gold standard in industry. Meeting Scot, Dany Clay, COO, and engaging with the Flight Vector team only intensified our enthusiasm.” Daniel Eisen, Managing Director of Arcadea, stated, "We're excited to back Flight Vector over the long-haul. Their aggressive customer centricity and focus on product expansion in both ground and air sectors aligns with our operating ideals. Given its significant growth and scale, it’s clear Flight Vector is the premier choice for leading businesses prioritizing safety and operational efficiency.” About Flight Vector Established in 2004, Flight Vector is a leading provider of innovative software solutions for the medical, public sector, and industrial air & ground transport markets. Flight Vector’s suite of software products provides users with powerful, customizable, and scalable solutions to meet the most complex needs in the rapidly changing dispatch, transport, and utility markets. The software provides its users with a significant ROI by improving efficiency, reducing costs, and giving a competitive advantage over others in the marketplace. The key to our industry-leading products’ success is partnering with our customers to provide them with a truly unique experience. Each implementation is optimized to the user’s unique needs for both operations and program administration. Our customers are our biggest advocates as their success and satisfaction drive our team to provide superior products and the highest-level customer support in the industry. For more information on Flight Vector, visit flightvector.com. About Arcadea Group Arcadea Group invests in high-quality, strongly growing, typically founder-led vertical software companies over durations of time that no traditional private equity or growth equity firm can match. With headquarters in Toronto, offices in Florida, and portfolio companies in North America, Europe, and Australasia, Arcadea maintains a global investment purview. Arcadea leverages tailor-made, flexible strategies that prioritize value creation for all stakeholders, leveraging a leading, in-house Value Creation and Operational Support Team to improve capital efficiency and accelerate growth. Contacts Flight Vector Scot Cromer CEO scot@flightvector.com www.flightvector.com Arcadea Paul Yancich Managing Director yancich@arcadeagroup.com www.arcadeagroup.com
By Paul Yancich 20 Jun, 2023
In April, Paul Yancich, Arcadea Co-founder and Managing Director, joined Chris Fort on the Fort Podcast , a leading business podcast focused on entrepreneurship, investing, and operation. They discussed all things Arcadea; Paul's background in investing, operating, and music; and what life is like for CEO's post-close within Arcadea Group. You can find the episode here: Click here to listen
By Paul Yancich 13 Jun, 2023
Adelaide, Australia; Auckland, New Zealand; Toronto, Canada – Arcadea Group, a growth-oriented, long-hold investor in vertical SaaS businesses, is thrilled to announce the strategic merger of Air Maestro and Spidertracks. Air Maestro, a leading SaaS provider of critical safety management systems, flight operations, and training solutions, has been supporting aviation operators since 2005. Its comprehensive […] The post Air Maestro & Spidertracks Merge to create the Leading Global Aviation Safety, Operations, and Fleet Management SaaS Platform appeared first on Arcadea Group.
By Paul Yancich 12 Jun, 2023
The acquisition will focus SPARK on long-term growth and enhanced product functionality Minneapolis, Minnesota & Toronto, Canada / Orlando, Florida – SPARK, an innovative SaaS-based lending platform serving the SBA and conventional lending market in the United States, has been acquired by Arcadea Group, a global, long-hold and growth-oriented SaaS investor. Arcadea acquired SPARK from […]
By Paul Yancich 12 Jun, 2023
TAURANGA, New Zealand & TORONTO–Radfords, a globally recognized leader in fresh produce software serving the entire fresh produce value chain – including orchard owners, packhouses, and marketers – has secured a strategic investment from Arcadea Group, a global, long-hold and growth-oriented SaaS investor. The investment sees Phil Radford, Founder, transitioning to a Board role while […]
By Paul Yancich 01 Mar, 2023
Bootstrapped VSaaS businesses often lack a sophisticated – or any – outbound sales motion. These businesses add customers via a product that solves a burning problem in their niche; the market pulls product out of the business, CAC’s are low, and payback periods incredibly fast.   Another common reality is the classic founder-led sales motion, which […]
By Paul Yancich 21 Feb, 2023
Our team has been doing business in Australia and New Zealand for over a decade as both investors and operators. We’ve completed dozens of investments in quality, vertical-specific SaaS software (“VSaaS”) businesses, led companies with significant teams, and engaged with and supported customers and industry stakeholders in the region.  Our direct, first-hand experience led to […]
By Paul Yancich 11 Jan, 2023
AvSight partners with Arcadea Group to accelerate product expansion and grow the delivery, support, and product teams. AvSight, a leading provider of cloud-based, full-suite ERP and operations management software to MRO, Parts, and Leasing businesses within the aviation software market, has completed a major growth equity investment with Arcadea Group, a long-hold, permanent capital software […]
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