David Ehrhardt on life at the helm of Apptix
May 15th, 2008 by Lisa Singh
Talk about a meteoric rise. In 2006, David Ehrhardt came to Apptix, a Herndon-based company which provides hosted business communication services to small and mid-sized businesses, and took on the role of CFO. Less than two years later, he took on an even more challenging role, that of CEO. In the following Q&A, Ehrhardt talks about his diverse background, and how he plans to help steer Apptix toward even greater focus and strategy.
Congratulations on your new role as CEO. How’s it going?
David Ehrhardt: It has been great. We spent the last few months establishing our objectives for this year, as well as the next couple of years. Given where we are in our growth stage, our objectives really center around three things: operational execution and excellence, customer satisfaction and experience, and profitable growth. Having set those out and drawn our plans up around them, we’re essentially in the execution phase.
We provide hosted business communication services to small and medium-sized businesses, with a current focus on email, voice over internet protocol (VoIP), and collaboration solutions. We currently have about 192,000 users across 18,700 customers.
Previously you were CFO of Apptix — what strengths from that position do you bring to your current role?
David Ehrhardt: My background, as a whole, has been a variety of roles — CFO, COO, even CEO in the past. So, I would say my strength, and skill set, really lies in operational execution and financial diligence. Given where Apptix is in its growth curve, that’s what’s necessary. We understand our markets — small and medium-sized businesses — and we know there’s an interest in our services, which are in demand. So, now we have to focus on execution and scaling the business. That’s how my background ties into it.
Since arriving at Apptix, you’ve risen through the ranks dramatically …
David Ehrhardt: I came here at the end of 2006, so I’ve been here nearly a year and a half. There was a recognition that the business needed operational management and leadership, and while I was hired as CFO, I was really hired in because of my broader background.
Tell us a little more about your background.
David Ehrhardt: For the most part, I’ve worked with businesses that started under $10 million in revenue, and have helped grow them to $100-150 million. Certainly, from an operations perspective, I’ve helped businesses focus on their core competency and organic growth. And for businesses like Apptix, whose initial growth has been driven by acquisition — I’ve helped them focus on consolidation and giving the newly merged company a singular focus and strategy.
The growth that has occurred over the past few years — how has that managed to happen?
David Ehrhardt: It’s really from two things. First, growth by acquisition. There were a number of acquisitions of small businesses back in 2005, and in 2006. In addition, we have been sustaining a 30 percent organic growth rate, and I think that’s a reflection of the demand for our service, and the acceptance of hosted services. We are also investing in our people and aggressively hiring. Fortunately, the DC market represents a rich source of hi-tech talent across all our functional areas from marketing to sales, and from technical support to engineering.
How do you inspire your team to bring their best to your client base?
David Ehrhardt: Generally, I think of companies like a three-legged stool. You’ve got investors that make up one of those legs, then customers, and finally employees. Over time, you need to pay attention to all three of those in equal proportion. Also, I try to get folks moving around a basic philosophy of, “Keep it simple.”
What do you enjoy doing beyond the office?
David Ehrhardt: For personal sanity, I work out daily. And for relaxation, I ski in the winter, and in the summer and springtime, I bike or kayak.
What would most people be surprised to learn about you?
David Ehrhardt: I tend to be an open book. I am what I am. I try to be frank and transparent in everything we do.
Interview with David Ehrhardt conducted by Lisa Singh
Read more interviews here: http://blog.executivebiz.com/category/interviews/
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