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Steve Bandrowczak

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2023-03-09

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2023-03-09

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1. “Look over the course of 100 years, that in particular has maybe changed the most in terms of how we think about big business in this country. Hopefully, we're going to talk again another hundred years. That's my plan is we're going to live another hundred years, have this conversation. And Steve, this was great. Thank you so much for coming on Dakota.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

2. “It depends on the administration, I got to be honest with you, right? You know, each administration has a different opinion on industry. I do think that the geopolitical China will have a significant impact on DOJ going forward and thinking about what industries need to look like. But DOJ is challenged because who is a competitor? Is Amazon a competitor? Really, a challenge with laws that go back to telecom days of mom bell and trying to think about how do you apply today's technology and try to apply today's competitiveness to those questions, right? And so, but yeah, right now it's a tough environment to consolidate where you're taking big companies and trying to put them together. DOJ has taken a lot closer look at these deals.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

3. “Well, much smaller, right? If you want to, if you want to, the market cap on these companies post-COVID, certainly with the new print models that we're seeing, is significantly reduced, right? So if you're a buyer, you want to buy in the last 12 months performance, last 18 months performance. If you're a seller, you're saying, hey, we will get back to somewhere closer to 2019 levels. People need to get back to the office. We'll see print rebound. And so you've got a very large gap between a buyer and seller right now in terms of valuation. I think they'll come closer as a new norm and the new reality sets in. The second piece of that is the cash that's out there, the liquidity that's out there is not the same as it was back in January, right? So you're seeing Byer and sell are further apart and you're seeing the cash and liquidity is pretty challenging today.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

4. “So I think there's a couple of things. There's too many players in the industry, in my opinion, very similar to the laptop industry going back 15 years ago, whether it was Gateway or Tashiba. It was a numerous brands that were out there. It will consolidate. I do believe this industry will consolidate. Prior to COVID, these companies had evaluation of X. COVID hit. They've got a valuation of Y.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

5. “Last question. We started by saying here's a new plan, here's what we wanted to do. A lot of it was consolidation, right? I mean, you became the CEO because of a plan to consolidate the industry. COVID hit didn't happen. You've bought a couple of little companies along the way. You said your background is M&A. Is that still the plan? Do you want there to be more consolidation in the spaces that Xerox are in?”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

6. “No, this is exciting. Today, driving this company is exciting. If you think about research and you think about, by the way, we've got another company up in Canada that has similar type of attributes to PARC. Would we potentially partner with somebody and do something different with Park? Sure, for sure. But PAC is important. The legacy of Park is extremely important. We are incredibly proud of what Park and Zero have done to impact the world. And, you know, we'll continue that journey”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

7. “It is. We're one of the very few companies that's still doing research for the sake of research. You think about some of the companies that have moved away from that model. We clearly have pulled into yours. We don't spend as much as we used to. We've pulled back. I gave you a couple examples of things that we've started up that one we shut down. Two, we got outside money and now it's spun off and it's running on its own with venture capital money. So we have done that. And you got to balance it, right? And, you know, it's a lot different when we were five, six years ago, the free cash that we were generating versus what we're generating today, right? But the mission of Park, what we're trying to do with PARC is still there, still trying to solve some of the world's challenges. It's just a matter of how much we can invest in park to go do that. And you're absolutely right as your core print business gets more and more challenged, it gives us less opportunity and less freedom to be able to do some of those things.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

8. “Of the model of park is licensing the IP and the innovations that come out of it to other companies. Part of it is just doing it. We've talked a lot about the balance sheet and the challenges and the Restructuring that you've done is it's hard to justify okay. We've got a pure research arm here. And sometimes it hits and sometimes Steve Jobs walks away and makes the Mac and that's the end of that.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

9. “Have in the print environment some of the things that we think about, you think about printing on packages, right? Think about digital print and how do you print on surfaces like Amazon or like Walmart on their boxes as it goes through their production system? Can you print marketing material fast enough as it goes through their normal warehouse? Can't store that process down the print. Can we create print technology and capabilities that we can do at the same time as inline print, right? We do a lot of work with obviously DOD and a lot of work with the government and specifically trying to solve some of their challenges and helping them. But PARC isn't always about just pure products at the end for Xerox. We saw a lot of the world's challenge, a lot of the world's problems through the innovation that we see inside of parks.”

   2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

10. “So two things with Park. So Park in its very nature is pure research. It's trying to solve some of the world's challenging problems. We would never do and we would never try to solve an HVAC system if we were thinking about just pure print. The technology that they came up with Mojave was to recycle all the pollutants that come out of the HVAC equipment by over 80%. Think about that. The world's pollution's pollution that comes out of HVAC's system today is equal to the entire airline industry. And we've created technology that potentially can improve that by 80%. Now, it's pure research. It's not a product yet. It's not built into carriers. It's not built into Siemens products. It's pure research. In addition to it, it tries to solve some of the challenge that we have in the office environment, some of the challenges.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

11. “Couple here, I said I had to ask about Park. Is legendary, right? I mean, this is where the graphical user interface comes from. This is where Ethernet comes from. We have a partnership with the Computer History Museum. It feels like all we ever talk about them was park and things that happen to Park. What do you want to get out of that organization?”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

12. “Oh, for sure. It is, except for one thing, we've got one of the best service teams in the world. You take a look at some of my competitors, they stitch together a bunch of OEMs and stitched together a bunch of service companies. Most of my service is direct through my team, and we service it without team with all the tools, all the capabilities. I talked about Care AR. You think about all the tools that we have in terms of supply replenishment, in terms of understanding and knowing when your product is going to run out of supply. A customer just wants to print and we make it very simple for them. They pay by the page, everything else we deal with.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

13. “No, no. So I go into an office building and they may have two or three products in there. They may have us, HP, Kanaka. They may have a couple of OEMs in there. And they don't want to deal with all the OEMs. So I go in and I say, I will manage your entire environment. And as your conaker, as your HP goes off of lease or gets ready to get renewed, we'll renew it with Xerox product, okay? But we will use genuine toner in their products. We're not going into third markets to go bring toner using my technicians dirty on site. We're getting original parts from the manufacturers, right? So we're not taking third world products into these environments. We're taking it over. We're managing it. We're providing it as a service. And as the technology gets older, as the lease rolls off, we're replacing it with Xerox equipment.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

14. “This is the opportunity. What are we going to do? NFTs? When are we going to do cryptos, Steve? But we made a pivot. I made a pivot back in when I first took this job. We didn't do any podcast internally. We didn't do anything. Now I started something called the Xerox Factor, right? Where we do podcasts with sales team, with product team, with customers, with partners. We talk about subjects that are relevant that can teach people on how you asked a very good question around how do you get your mid-sized customers to adapt these other technologies. Well, what do I do? I bring in sales technicians and I bring in the team that says, okay, how did you get that law firm to adopt RPA? How did you get that hospital to adopt AI and what we're doing? How did you sell that digital services solution? What'd you do? And I let them tell them story because that naturally resonates with other sales team. That naturally resonates with other regions. You know, one of the things that I believe is, you know, we've got a tremendous customer base today. I can double my wallet.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

15. “For sure, for sure. But again, that's where you get to How do you think about a GBU chip and a screen and now not thinking about it as just a printer? What else can I do with that device? That's where we have a tremendous amount of office value that we can bring. So you're right. If it's just a print and it's just scanning and it's a multi-purpose device in its old configuration, for sure. Absolutely. Digital transformation and digital disruption, the hybrid workforce significantly disrupting that.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

16. “We have never been in the home printer business, always been in the office business, small offices, large offices, complex facilities. We have never been in the print business for consumer and consumers. That's not how market, that's not what we've done.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

17. “But you know what happened we now and and iPads iPhones and laptops right I've got three devices sitting in front of me now right and We don't have the either or. There's still a lot of print. And print, yes, is declined. No question. Digitalization has accelerated that. But there's a tremendous amount of print out there. And, you know, we think about print just in one way, but think about your Starbucks cups. Think about your packages that come in from Amazon. All of those have print on it. Think about the big retail stores where you used to walk in and there was a big advertisement. What happens when a big portion of your retail experience comes through a box? How do you advertise in a box? There's a lot of printing to be had. We still see 95% of the production print, right? It's in analog. Think about that. What happens when that all goes digital? Tremendous opportunity.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

18. “So I call it and, right? So it'll be print. Manage print services, digital services, IT services, and pure services, right? So absolutely. But it's a journey, right? You know, even if you go out three to five years from now, 25% of my revenue will be in new services. Balance will still be pretty adjean to the core. I mean, you know, I remember, if you remember, when the IBM PC spin out was done and the debate about my laptops are going away, take a look at the IDC numbers and laptops.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

19. “Spending more time out there, spending more time on news channels. Xerox has a great brand, but it's synonymous with print, right? I've got to get the industry to understand that we are more than just print. We are an AI. We are an augmented reality. We are a machine learning. We are in robotics as a service. We are driving things like cybersecurity and CIO on the box, things that nobody would know about unless I spend time sharing them externally with what we're doing.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

20. “Well, for me, since I've been such a big operator, right, think about a CIO for 30 plus years and CEO president COO for several companies now, you're an operator by your very nature. You want to double click and triple click and get into every single detail. And the reality is I can't do that anymore. I can't do that and use the CEO role that I want to be effectively. You know, it was interesting because the board asked me during the interview process what type of CEO do you want to be? And they were really asking, you know, do you want to be an operator or do you want to be an outward facing CEO? And I think my role very clearly up front was be the face to this company, be the face to where we're going, whether it's from employees, whether it's to investors, whether it's the customers. A lot of people don't know what we're doing. A lot of people, I didn't know you guys had that business. I didn't know you were doing this. I didn't know you were doing that. And so.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

21. “Probably tell by my energy because I look forward, never look back. Failure is not an option for me. I never think about it that way. Do I do a lot of study on first year CEOs and do a lot of reading? Absolutely. Do I reach out to other CEOs? Bill McDermott, really good friend over at ServiceNow and good friend of mine over at Motorola and Greg Brown. Do I reach out? Absolutely. Absolutely. What are the pitfalls? What do I need to do? What do I need to think about, right? But no different than you take over any job, I'll be honest with you. I don't think about the CEO role any different than a job that I step into that you need to make sure that you make your mock and make sure you have impact on all aspects of the people that interact with you and do the best you can each and every day. And so I don't look back and I don't think about it. I think if I do my job to my fullest, we're going to be just fine.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

22. “If they don't know what we're doing, right? So spending time at universities, speaking at universities, right? So my job is a lot more outward facing than it was. And so that's probably my biggest decision and the best decision I made. I brought on one of the best I believe in the industry. And John Bruno, John was president, COO at Aon and did a great job over there. His background is with Merrill Lynch and driving companies like NCR and SIMBL and Cisco. So he's got a great background and I'm really proud of the team and what we have ahead of us.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

23. “And in the hybrid world, and not as many people in the office, how do you create that environment where people are excited? People want a purpose. They want to know that they're making a difference in the world. They want to know that they're working with people that make a difference in the world. And so for me, I've got to create that environment and I've spent a lot of time on the road driving that with customers, with employees, with our investor base, working on how do you get talent. How do you get universities excited about coming to Xerox?”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

24. “For me, right now, it's bringing in President COO. I brought a number two in that allowed me to now me focus on external. I focused on customers, focused on shareholders, focused on talent, focus on capital allocation. If I had my old job on running supply chain, running IT and the day-to-day stuff, I can't be thinking strategically. Talent management is extremely important today, extremely important today. You talk about culture. How do I get the energy back? One of the things I talk about with a company is how do we drive energy every day, every day. And I've got an SLT of 100 plus employees or 100 plus leaders. And I said, your job every day is to drive energy. If you're not driving energy, you're sucking energy. It's that simple. And so you can either be an energy driver or an energy sucker. What do you want to go do? Right. And I mean that because people want to come to a place that's exciting. People want to come to a place that's energetic.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

25. “Our in year goals. The other thing I was saying, you know, the hardest thing for people in this seat to do is to say no, to say no. So how do you make that decision and how do you say no, right? When I look at it and you think about go to market or you think about products, do I have the right attributes to launch products? Do I have the right attributes to keep in a country? Do I have the right attributes to keep within a product in a certain company? And if the answer is no, then we make the decision very quickly, right? And so, you know, it's funny I asked the team, you know, how would I enter a market? And I'll give you very specific things. I got to be number one. Number two, it's got to be growing. I got to have, and I'll give you all the attributes. Then you'll say, okay, do I have that attribute in country X, Y, Z in Europe? Why am I number five and not number two? Why do I have those same decisions? So I take that same criteria and I apply it against existing.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

26. “First, the North Star, which right for our stakeholders. And I really mean that every day we look at that, whether it's employee decisions or shareholder decisions or customer decisions. We make it and focus on our stakeholders. Number one, we do something what we call a four-rolling quarter and a 12 rolling quarter. In other words, when we make decisions, it's not just for the annual year-to-year P&L. It's also in line of where we're going over the next three years, right? You can make a decision with a product or you can make a decision in IT, or you pick your decision that's really good for the fiscal year that you're in and not be good for the next three years strategically, right? So we try to look at it both in terms of fourth quarter and 12th quarter planning when we make those big decisions, right? It has a combination of strategically does it set us where we want to be. Number one, number two, does it allow us to hit and achieve?”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

27. “Yeah, look, I've worked in a German company. I was a global CIO for DHL. I worked for Nortel. It was the first time my career when I failed. There was a Canadian company. I worked for Lenovo, which was a Beijing China-based company, okay? And I will tell you, all of them had different attributes, different old charts, and it's all about the leadership. It's all about the people and the organization. You know, I say all the time, you know, I'd rather have all good B players that work together that can deal with anything that gets thrown at us than a team of all A players that is individual players that doesn't have the right culture. It's so important to have the right team. It's so important to have the right culture, especially as you go through the challenge that we've gone through over the last 30 months.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

28. “So we've got two BU leaders that run the regions. I've got somebody that runs MIA, somebody that runs the Americas. I then have my support functions. I've got a president, COO that runs all the support functions. I have a traditional CFO and a CHRO. So the two regions from the P&L and think about my present COO runs all the functions that supports the P&L, right? So that's pretty simple. It's not a overly complicated one. We do really good in matrix management in terms of, you know, does the product team own the P&L? Does the regions own the P&L? It's pretty clear. The regions own the P&L and the product team supports it. We can turn upside down pretty well, and it's a really good matrix organization. I will tell you about organization. It's less about the structure, more about the people.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

29. “Be fine. All right. This is yes, inflationary, yes is challenging. We're going to be just fine. I think that's the key that we see and that I see with the management team and the company is no panic. There's a lot of resiliency. There's a lot of, okay, we're going to get through this. Set division. Tell me how we get through it. So it is a very resilient company. And Canada, it's a tremendous culture that we have here that supports each other, both in terms of employees and the communities that we live in.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

30. “I'll give you two examples, you know. Last month, I had two employees, one fifty year anniversary, second one 45-year anniversary, the month of January. So we've got a lot of tenured employees. We've got employees that have seen a lot of change through the years. You can think about the dot-com bust. You can think about the financial crisis, 9-11. You pick it a lot of this team and this company has been through a lot of it and the resiliency of all of that. You know, you talk about the Fuji, you know, the Fuji Xerox breakup and the emotion losing the CEO and the board fights and all that. That's dramatic to an employee base. That's dramatic to a company. Come out the other side of it, resilient. And candidly, you know, when the interest rates hit, everybody just said, take a deep breath. We're going to be okay.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

31. “And we would not have been able to do it if we didn't have a culture of resiliency. What we saw with supply chains, what we saw with Ukraine, Russia, Ukraine, Russia for us, was pretty significant, not only in terms of the impact their employees, but the impact on our revenue and what was happening in the entire environment and the ecosystem that we were supporting in Russia. And so, you know, it was for us, we've been a very resilient company, supply chain, COVID. The interest rates canily is a small water off a duck's back compared to everything else that we've been through and this company has been through. So I think we're very resilient and capable of being able to navigate through some of these clear macro challenges that we see out there.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

32. “It's a resilient company. It's an easy switch for me. I've got good friends that are in streaming businesses and now all of a sudden you think about from growth to now value and making that change overnight. They're challenged. They don't have the leadership. They don't have the capabilities to go do that. I'm pretty fortunate here at Xerox. We are very resilient. You know, you think about when COVID hit, we lost $2 billion of top line, like overnight. And so that first quarter was about literally trying to get break-even with cash”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

33. “Going forward, but that does for us is it creates a significant amount of cash preservation on my side that I'm not using cash as we start to put leases in place. So those are the strategic shifts that we made.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

34. “Long put in the play on those things wasn't as juicy as we thought it was 18 months ago. Second, the amount of cash that we were burning in those longer horizons, I wanted to repurpose them and put them more towards near-term solutions that our customers can see in the relevant 24, 36 months as opposed to three to five year horizon. So that's one of the biggest strategies we made. The other one that we made is we were in a group called Fiddle, which is a finance business. We were using our balance sheet to finance the fiddle. We had about $3 billion of assets, about a billion 20 or so that rolls every year. And what we decided to do is that we weren't going to use Xerox balance sheet for a lot of different reasons. One, the interest rates have changed significantly compared to what we could borrow off our balance sheet. And we went and we put some FOD funding agreement. We use HBS, which now finances all of our leaders.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

35. “Made a couple. So, if you go back to Investor Day back in January, just like a lot of the industry, we had made some bets in some longer-term horizons. We had started a company called LOQ, which is around sensors on bridges. And we did a joint venture with the Australian government. We had launched a little company called Mojave, which is really around HVAC technology. We had launched a little company called Novi, which is around sensors in manufacturing. And then we had started a 3D business. All of those were three to five year horizon before you had businesses that would break even. And they were costing us pretty significantly in combination. We were running up millions of dollars per one. And we were years away from breaking even. I had to pull that back, right? And for two reasons, number one, the whole VC community and valuation had dramatically changed between January and July, right? So the first thing was, you know.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

36. “48 hours. I didn't think I wanted the job this way. And I felt that personal attachment. I've got an incredible wife and she kicked me in the butt and said, hey, this isn't about you. This is about a company. This is about a great brand. This is about 25,000 employees. This is about all the customers, the communities we're in. Put your pants on and go to work. And the board, very thankful has put me in this leadership role. But yes, it was extremely difficult to take the rein. Q3 for us was extremely difficult. It's just emotional, right? Coming off of 30 months between supply chain issues, Ukraine-Russia issues, you know, all the things that we would challenge with then losing the leader of our company, Q3 was rough. And thank God we've steadied the ship and turned around. We had a really good Q4 and the company's back on track.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

37. “It was John was a good friend and knew John twenty plus years worked side by side with him june twenty eighth, eight o'clock at night. His wife called me MJ and said John had passed. And then she followed that by John loved you. And it was probably one of the emotional times in my life. And then you get into all of a sudden I got a call HR, have to call the legal team, board meeting the next day. They put you in his interim. I've got to notify John's staff. I've got to notify employees. You can't get out in front of the family because the family has to make public statements. And yet as a public company, we've got to make statements extremely, extremely hard. It really was.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

38. “Sure, check in with all my larger shareholders, right? Trying to make sure, and by the way, even investors that are not shareholders today, what's the Xerox story? A lot of things I'm sure you're surprised on with today's call, right? And so what's the Xirok story? Where are you going? Is it just a print business? Is it just a dividend business? Where do you see the growth coming from? So for sure. Talk to our largest shareholders as well as investors that are not now stock today.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

39. “You put two companies together, you're looking for a couple of things, right? What's the synergies between the two companies, right? Geography synergies, product synergies, you know, the synergies on back office infrastructure, et cetera. So for me, HP was a perfect synergistic play for the two companies from a product standpoint. They're really good in A4. We were really good in A3. Geographic, we align pretty well. We had a very good synergistic, and we talked about it publicly. It was a $2 billion of value. We thought we can generate there. On the Fuji deal, the reality was that the shareholders, specifically our largest shareholder, did not see the value for the current Xerox shareholders put in the two companies together, right? And so it was more the economics of the deal. And I can't speak for our largest shareholder, but obviously the economics of the deal didn't make sense. They obviously voted it down and they wanted to bring in a new team to go in a different direction.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

40. “Just ask the dumbest version of this question. Carl Iken shows up and says, This Fuji joint venture is stupid. I don't want to do it. I'm getting rid of you guys. I'm bringing in you guys. Then you guys are going to get the company ready for more M&A. So why was Fuji the wrong choice in this HP deal that actually did end up going through? But why was HP the right choice?”

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41. “Spin out was part of the team that helped split HP. So, you know, my background is big M&A and integration. When I got here, it didn't have that muscle, didn't have that energy. Project own it was a part of putting that in the DNA of the company as well.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

42. “No, it was get it smaller so that we can create the balance sheet that allowed us to consolidate the industry, right? Think about we were very public with the number with HP. We thought there would be $2 billion of synergies. We had borrowed or we had got a loan for $24 billion. We couldn't get there until we had our own balance sheet, right? And we put over $2 billion on the balance sheet and got in a position where we consolidate the industry. We wanted to be the consolidator, not the consolidated, right? And so it was very important to us to get the balance sheet right, get the company right. By the way, you can't integrate two companies if you don't have the foundation of a project like donut. Project own it put in place the discipline of how you drive projects, how you drive synergies, how you drive rigorous change inside the company, rewiring your company. And it's the same thing when you put two companies together. I've had over 70 M&As in my background. If you don't know, I did the IBM.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

43. “Ask this question every time somebody comes in at the behest of an investor this is the classic thing that the outside investor does right they take over a big chunk of the company they say your plan is wrong they get rid of the old administration they bring in the new guys and the new guys cut costs and make the company more efficient i mean this is the entire game is that part of what you were setting out to do with own it or was it actually this company is in a tailspin we need to make it smaller so we can eventually make it bigger”

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44. “Year, and it was on a steady downclock, right? And then obviously COVID hit and accelerated that. So Ownit was two pieces of it, reinvesting in things that we needed to do to reinvest our company, carry out with one of those things, IT services with another piece. But at the same time, we had to really start to look at driving efficiencies for our company. And Project Own It became both an internal and an external routing cry. If you follow our investors, you follow all the calls over the last four years. They ask very specifically about project owning. Why? It drives more cash flow. It drives more EBITDA expansion. Obviously drove our stock price when it was rising pretty significantly prior to COVID.”

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45. “Yeah, so when I got to the company, one of the things that I said was we had to simplify everything we did end-to-end and drive a faster velocity. And we used project owned to do that. Project owned was around and we have taken over $2 billion of costs out, but it wasn't the end goal of project owner. Project own it was about how do we get more velocity in everything we do? How do we get simpler, easier to do business with? How do we get simpler internally? We had 2,000 plus IT applications run the business. And when you got that many applications, you have bespoke processes. You have multiple ways of doing things. How do you simplify that, right? It also is about launching new products and services, right? Because we knew that print, even before COVID was under a lot of pressure, right? It was declining two to three points per year.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

46. “So you come in in 2018 as COO. You put together a plan with the former CO, John Vicentin called Project Own It. I am always joking that fundamentally Decoder is a podcast about org charts. To walk me through what this project is and how you change the structure of the company.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

47. “They reuse it again. A lot of my production shops, you know, you think about an A4 in an office, but think about production shops. You go into a staples today, you go to an office depot, and you see the big production prints. If they're not printing, they're not making money. So those operators want things like Care AR. They don't want to wait for a technician to come in. And certainly when they want a technician to come in, it needs to be for the hard stuff, not just to fix a paper jam or not just to do something that I could have done on my”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

48. “And so the video piece of it people are very comfortable with, all right. We're getting much more attraction in terms of people using. It's not 100% right because people sometimes nervous about downloading something. They don't want to use their own personal phone for work solutions. But where we do see it, where we do see the uptake, it is over 90%.”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

49. “So, let me ask you a question. I'm going to send a technician two to three days from now between 8 and 12. Or do you want to start right now? It's that self-solve world, self-served world that we're in. You know, look, you go to New York and how many times do you watch taxis go by you a hundred times and you think you got a great experience because you're waiting for Uber to 15 minutes away. You're in control, right?”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT

50. “For the average person, that's a lot of learning to do, right? You've now offloaded a bunch of tasks, which maybe will help them fix the problem faster, but you've got to teach them that AR exists. You've got to teach them that their phone has this capability. You got to get them to download an app, which frankly is maybe the hardest single thing in Hall of Technology to do is get someone to download an app and register for it and jump through all the hoops. How do you solve that problem”

    2023-03-09 · Decoder with Nilay Patel · Can Xerox reinvent itself for another 100 years? · IDENTIFIED FROM THE TRANSCRIPT