Chapter 5
Eddie Machaalani
Co-Founder and Executive Chairman of the Board, Bigcommerce, Inc
Have the guts to look inside and admit that while you may be good, you are not the best you can be.
—John Mattone
IN 1975, WHEN FIGHTING BROKE out between the Maronite and Palestinian forces in Lebanon, it launched a civil war that would last 15 long, deadly years. All told, an estimated 120,000 people lost their lives, a devastating blow to the small country. Many who did not perish fled, with a staggering one million people making a mass exodus out of the country.
Eddie Machaalani's family was among those who fled. Immigrants in bustling Sydney, Australia, Eddie, his parents, and both his younger and older brother set out to do what many immigrants do—build a new life. Thrive. As a young boy, Eddie watched his parents work unimaginably hard to create a good life for the family. They worked hard, day after day.
Immigrants don't arrive on foreign shores with a corporate mind-set. Even if they worked for a larger business in their country of origin, many start small, family-run businesses from scratch. It was through this experience, watching family and extended family and even community work together to make a good living, that Eddie Machaalani gained a kind of organic knowledge of the values and grit it takes to build a business from scratch. He saw exactly what it takes to not just survive but to thrive. He learned the values of honesty, fairness, and respect from the elders who came before him, and internalized a universal truth: Do the right thing and good things will come.
As the family thrived, Eddie's father invested (one of the first in their community to do so) in a personal computer for his boys, who spent long hours learning every aspect of how it worked and what magic it held. Gadgets had always fascinated Eddie, who was endlessly tinkering the way certain kids do. When it came time to head off to college, Eddie decided the University of Technology was the place to further explore his passion. It was there he became fascinated with programming.
The instant gratification of programming thrilled him. The creation of making something from nothing, the launch of a website, the immediate reaction—it was a rush. In programming, Eddie found a kind of perfect balance between creativity and science, between the practical and the artistic that was thrilling. He was hooked. When it came time to graduate, students in the program were required to obtain eight months of corporate experience. Not Eddie's passion, but he knew it would bring him insight and knowledge. He just didn't realize how.
Diving in feet first, Eddie was immediately a success. He singlehandedly built and rolled out a technology project and witnessed as it immediately caught fire. He'd won a company contest, even, with his ingenuity and drive. So when a company meeting was called to discuss new projects, Eddie sat in shock as his manager presented their victory.
“I want to share what I have been working on lately.”
Eddie sat at the conference table in disbelief. His manager said “what I have been working on.” He referred to himself alone, as if he'd created it, as if it was his victory. It was a brutal blow to Eddie, his first taste of what he'd later refer to as “toxic culture.” Instead of being honored, complimented, rewarded, and appreciated, Eddie was ignored while his manager took full credit for his work. It was a devastating blow, but one he would carry with him when his eight-month term was up.
In 2003, Eddie became a web designer, eventually connecting with his business partner Harper Mitchell, whom he met—where else?—in a chat room. Harper shared Eddie's values and ideals, and together they launched their first company, Insterspire. In 2009, they raised $20,000 on their personal credit cards and launched another company, Bigcommerce.
Working from a rented space above a friend's office in Sydney, Australia, Eddie and Harper have grown Bigcommerce more than 100 percent year-over-year, raising more than $125 million in venture capital along the way. Bigcommerce powers more than 95,000 online stores globally, and has processed more than five billion dollars in sales.
These days, Eddie is an active angel investor and speaker. While running Bigcommerce, investing, blogging, and contributing to well-regarded business outlets, he was named as a finalist for the Ernst & Young Entrepreneur of the Year Central Texas award, as well as for BRW's Entrepreneur of the Year award. Through Bigcommerce, Eddie Machaalani aims to level the commercial playing field such that merchants from all over the world can build scalable businesses and strong brands that are capable of competing with the biggest players in their industries.
I wanted to find out more about this dynamic CEO and discover what drives him to continuously improve and grow.
JM:
The first thing I want to say is congratulations on all your success. Your company is growing quickly and you appear to be having a lot of fun.
EM:
Yes, thank you. We have been very blessed; we have a great team, we are in the right market, and we are rocking and rolling.
JM:
You are indeed. Let's start by talking about the pivotal points in your early life that caused you to move in the direction of being an entrepreneur. Tell me about that experience when your manager took credit for your work.
EM:
It was real blow to me, to be completely devalued in an environment like that. It was a toxic culture. There was a lot of infighting, with people taking credit for each other's work and not being held accountable. This was completely foreign to me. It wasn't the way I had been brought up. So I said to myself, If I start a company I am going to make sure we never have a culture like that. That was a real pivotal moment for me. I became a web designer. I ran a small web design business, and I recognize we needed to have a special content management system designed just for my clients. So I went to work and ended up building one of the first content management systems on the web. While I was on this journey I met my co-founder, who had similar values. We got together and launched another product, which eventually became Bigcommerce.
JM:
That's fantastic. What is the predominant theme you live by? Is there a particular saying or message that repeats itself in your head?
EM:
Yes, a really pivotal phrase for me has been: Think like a man of action and act like a man of thought.
JM:
I love that—you obviously live that daily. So, let me ask, how are things progressing? And, as the leader of Bigcommerce, what are your leadership challenges? You obviously have a lot going on, many things coming from many directions. Talk to me a little bit about how you approach all of this?
EM:
It's a great question. My goal is to constantly look for bottlenecks to growth. I try to focus on the top three bottlenecks in the business and, sure enough, I find that these bottlenecks almost always involve people.
JM:
Yes.
EM:
There comes a time—especially in the early days of a start-up—when you realize suddenly that you're doing too much yourself. In our case, we wrote our own code, we ran the marketing campaign, we did sales calls. But as we went on our journey, we started to see that we were our own bottlenecks to growth. We started to hire executives who could lead those functions. It's a real mind-set shift to move from doing everything yourself to empowering people. But once you start along that journey, you recognize quickly that the biggest opportunity for growing your company and ensuring that you have the right culture to foster that growth lies in surrounding yourself with great talent. Today, it's less about “how do I solve the problem?” and more about identifying the person or people who possess the skill set that can best solve the problem.
JM:
I think you put your finger on something very critical. There are very few start-up entrepreneurs who are able to recognize that once they reach that point of growth in which they can't do everything, they have to find talent and then empower those people to do the things that they once did themselves. They have to feel comfortable enough to have others take over those responsibilities. It's one thing to want to do it, and it's another thing to execute. It sounds like not only did you cognitively recognize this need as the company was growing, but you are executing it. It sounds like you have assembled a great team and you feel comfortable with them.
EM:
Yes, I think Richard Branson said that really well in an interview that stuck in my mind. They asked him, “What's the secret of your success?” And he said “Three things: people, people, people.” I subscribe to that philosophy, and translating it into your company culture starts from the top. It starts with the CEO first and foremost. You can't fake a company culture if the CEO doesn't live by that code and doesn't live by the core values of the organization and then also surround himself or herself with the right talent and the right people. I feel really blessed with the talent and the people that we have in our organization. We couldn't do anything we do without them. We have a proven philosophy, we call it Bucket One and Bucket Two.
JM:
Bucket One, Bucket Two—tell me more about that.
EM:
Bucket One is a way of describing somebody who is very skilled and experienced at what they do, a complete A player. They know the industry and they are really, really strong. So if I am hiring a head of engineering, for example, I want someone who has been in high-performance environments before. They can build and recruit a phenomenal team, they have an engineering mind-set, they have all the skills and experience. That's Bucket One.
Bucket Two is evaluating if they are good human beings. Do they live by our core values, are they honest, are they genuine, do they promote their team, do they put the team first, are they passionate about the work, do they have family values that they want to bring into the organization, are they going to hire people who also have the same values? That's Bucket Two.
Understanding the value of Bucket Two has been a big learning process. I have had extremely talented people in the organization who were phenomenal in terms of Bucket One—the skill set, the knowledge, the main expertise. These people were technical geniuses, but they lacked the Bucket Two qualities and hence, couldn't take other people along with them on their journey. As a result, we lost good talent. These kind of people really hurt your culture; they hurt your entire company. And they reflect poorly on you as a leader if they are not supporting the culture you are trying to build with the values you want the company to live by.
We believe we need to hire strong executives who have both Bucket One and Bucket Two. For this reason, we spend a lot of time with reference checks and situational questions. We want to understand how they live, what their values are, will they cut corners, will there be dishonesty? Do they have a team that's worked with them in the past who wants to come on the journey with them? My best executives always bring people that have worked with them in the past. They are phenomenal people and they are phenomenal leaders. I feel confident with the team that we have today. I am constantly on the lookout for great talent. I really focus on people that have the skill set but also are culturally aligned. That is the foundation of creating a phenomenal organizational culture.
JM:
Very well said, Eddie. When we look at the word “success” how would you define it?
EM:
Defining success is twofold. First and foremost, my family is my number one priority. The way I live my life and the relationships that I have with my children, my friends, my extended family, and God is how I define success. From a business perspective I am a growth-mind-set person. Success means that an organization is growing: customers are increasing, we are building a phenomenal product, we are generating a revenue and profits, and we're doing it all the right way. As long as I am running the company, there will really be no end to growth. That's my definition of success: to continually grow and build and solve problems and help customers.
JM:
I want to ask you about failure. Some executives have difficulty discussing even the notion of failure. Can you tell me about the notion of failure as you see it?
EM:
I don't believe in failure. I don't think people fail, rather, they make mistakes and in doing so, learn. You may have made a mistake in one area, but I would never say that you failed. In actuality, you made a decision that wasn't the right one at the right time, or perhaps you brought on the right person in the wrong environment. That is the process of growth, not failure: It is only through the process of transformation—which includes invariable missteps—that success arrives.
JM:
Very good, you are an optimist. Your mind-set is exactly what I see in successful CEOs all over the world. What are some of the challenges at the top of your mind? Maybe they don't keep you up at night, but they are lingering in your consciousness.
EM:
Currently, the leadership change in a lot of our departments is my primary concern. The biggest opportunity with our new leadership team is getting them completely aligned. It's my imperative to make sure they understand and believe that I have complete confidence in them. Having made a lot of changes across the executive team, it is essential that the people who are still here don't feel like they might be next to go. We are constantly communicating with the team, reassuring them that they are performing well and that we have a tremendous amount of confidence in their ability. The key is getting everyone aligned and sharing the same goal. I ensure that every executive in the organization knows where we are going, what we stand for, and what are my expectations. I expect them all to hire world class colleagues—anything less is unacceptable. I expect them to embody our company culture; I expect them to know the company metrics and the growth trajectory of the organization.
Another big challenge that I face is prioritizing. We are striving constantly to meet all our goals while also streamlining our core objectives. That requires us to recognize the three or four things we need to do exceptionally well in order to achieve our goal.
JM:
Very well said. I appreciate your openness about that.
EM:
I am a big believer in allowing your team to make mistakes and giving them the freedom to test things out. I want to support them by helping them to focus on their strengths rather than their weaknesses. We all have weaknesses, but if we focus on telling our team where their weaknesses lie, that is the wrong approach. To bring true transformation amongst our leaders, it is far better to focus on their strengths.
JM:
Absolutely. If you are gifted in a certain area, you have to polish that gift. That's not to say that we can't focus on one or two development needs. But let's take those strong qualities that unleash us and focus on that. On that note, what are your leadership strengths? What would they say are the two exceptional qualities that Eddie Machaalani brings to Bigcommerce?
EM:
First, I have a tremendous desire to do great things. Secondly, I have an undeniable ability to hire incredible talent.
JM:
This business is in your blood, right? I imagine you get up very early in the morning and put in long days, but have fun in the process, is that correct?
EM:
Yes, absolutely. Being a founder and a CEO is a roller coaster: You have stunning highs and you have crushing lows, but you appreciate the journey. As you mature in the organization it becomes less about the what and why and more about the who. This is why I say that a great culture is incredibly important—not just at the C-suite, or the executive level, but the entire organization. My co-founder Mitch and I interviewed every single one of the first hundred employees that joined Bigcommerce. We felt that if you set the proper expectation from the outset, those people would help us maintain the culture. From day one, we had people here who knew and valued the organizational culture. As we've continued to grow, those original leaders have been the first to remind us that this is the way culture should be going.
JM:
That's very powerful and consistent with what I am seeing among leaders today. Let me ask you this: What would you describe as your greatest professional achievement?
EM:
My greatest professional achievement is getting Bigcommerce to where it is today and believing in where it can be tomorrow.
JM:
Would you say that at Bigcommerce you have an imperative to transform?
EM:
Yes, without a doubt. Absolutely.
JM:
When I say cultural transformation what does that mean to you?
EM:
When I think about cultural transformation I ask, do we have a culture that is serving the needs of the company? The most important thing is understanding the tradition of our current culture and what kind of culture we are striving to create. Do we want a start-up culture? Do we want a high-performance culture? Do we want a cutthroat culture? In every company, the culture you want is one that serves the ambition of the company.
We are constantly going through cultural transformations, because our ambitions and needs are always changing. When we were a start-up, we had unique needs and ambitions. Now we are high performance, and it's incredibly competitive. We must, therefore, shift away from that start-up mind-set and evolve to a high-performance culture. It's similar to playing sports: When you are in high school, you're at one level. When you are in college, you increase your game. With each level, you must increase your training, expertise, and set higher goals. That's exactly the process we use to transform the culture in our organization. Every year you have step back and say, is the culture we have serving our ambition as a company?
This year my big focus is combining high-performance culture with one in which each employee really cares about the company. In the past, our culture has been more about what can the company do for the individuals, fulfilling individual needs, getting this fancy new toy or widget or lunch and so on. What I really want to do now is shift our attention away from ourselves and onto what each of us can do for the company. JFK said, “Ask not what your country can do for you, ask what you can do for your country.” I want our company focus to shift away from what the company can do for me in the short term to what I can do to make this a phenomenal company to work for. You do that by shifting the focus to the customer and serving them in the best possible way.
JM:
That's very powerful—it's very other-oriented. I want to end with two final questions. First, what aspects of your culture are you most proud of and why?
EM:
The energy, passion, and camaraderie of our team is second to none. I've had executives and people from outside the organization say our culture is unlike anything they've ever seen. The desire to win across the entire organization is incredibly high. There is an overwhelming respect between our entire executive leadership team that flows on to the organization at large.
JM:
I have one last question. Can you share any words of wisdom for the many hopeful leaders and future leaders all over the world? How can they become better leaders?
EM:
Humility, curiosity, and desire are an incredible blend of traits. Those three elements are an unstoppable combination. If you have the desire, you continue to grow. If you have the humility, you realize you are never going to be the smartest person in the room. If you have the curiosity, you will realize that you can always learn from every single person that you meet. I learn from others every day, and I think that's something that came natural to my co-founder and me. When we met with an entrepreneur we admired, we spent 5 percent of the time asking questions and 95 percent of the time just soaking it up. We had an intense desire to learn and a tremendous amount of respect for the person.
When you meet with certain people, you know instantly that they are going to be successful. They are asking all the right questions and listening to your answers. They are humble and they have and enormous desire to learn. They are reading, watching videos, attending events and seminars, and constantly on the lookout for better advisers. On the other hand, if you meet with people who want to tell you about how great they are and they talk 90 to 95 percent of the time, you get the sense that they don't have the humility, the curiosity, or the desire to learn. I think that's what makes the best entrepreneurs special. Take Steve Jobs for example. Without a doubt he had vision, conviction, and confidence, but he was also always willing to surround himself with talented people. Successful leaders are constantly willing to learn, be advised, and get coached. Steve Jobs had a coach, the Google guys had a coach, Jeff Bezos had a coach. They were all willing to learn and be hungry. They all had a combination of those three traits—humility, curiosity, and desire—which I think are the magic steps for success.
