In this interview, we had the pleasure of speaking with Oded Ran, the Co-founder & CEO of Clue, a comprehensive platform that streamlines construction fleet operations. With over 20 years of leadership experience, he has worked in both startups like TouchNote and Fortune 500 companies like Microsoft. Oded holds a degree from Harvard Business School and lives in Manhattan Beach, CA.
Will Johnson: Thanks for chatting with me, Oded. Why don’t you start by telling me how you became a construction technology founder?
Oded Ran: Well, I come from a background in mobile software across various industries, including retail, food, manufacturing, and consumer sectors. Transitioning into the construction industry, I noticed a significant gap in software solutions tailored to its needs. Despite the wealth of data available in construction, all of the existing software was so outdated. At Clue, my co-founders Michael, Jaden, and I, saw an opportunity to create something innovative. This conversation sparked the inception of Clue.
WJ: What makes good construction technology?
OR: Good technology helps someone do something in a better, easier, or cheaper way than they could do it previously. If you had to summarize product market fit, that would be it. There's a specific problem and you find a solution that's very much answering that need.
WJ: As a tech founder, what’s the secret to ensure that the software that you're creating is going to be that game changer?
OR: The key is involving the end customer from the start. We engage them in ideation, design, and implementation stages, ensuring their needs shape our roadmap. There's a nice analogy that to fix something in the drawing stage takes an eraser, but to fix it when it's on-site takes a sledgehammer. Many companies wait until the end to involve customers, at the sledgehammer stage, but we integrate their input early on, even before the planning phase. We maintain an innovators group to discuss ideas upfront. It's about building a customer-centric business, which, though obvious, can be challenging in practice. It's simpler to develop without customer input, but we prioritize their perspective at every level, from leadership to developers, to ensure we're solving real problems.
And hopefully, we'll remember to continue doing that as we continue growing, because it's very easy to start building stuff for the imaginary customer that you think exists, but that customer never exists.
WJ: Yeah, it's easy to get to a point where you think you're smarter than the customers, right?
OR: Absolutely. And it's like there's this duality. You do need to put your expertise to it. You are the subcontractor to your customer. They’ve hired you to use your knowledge to solve a problem. But you have to listen and really pay attention to their needs.
WJ: How do you effectively convey the value of technology solutions to contractors, ensuring team-wide adoption and ROI?
OR: It starts with shifting focus towards long-term goals. Rather than prioritizing sales or revenue, aim to create referable customers who endorse your product. This change in mindset influences how your team approaches customer success and sales, emphasizing the importance of solving real problems for clients and ensuring their success.
To achieve this, strong buy-in from all levels of the organization is crucial. We've found that involving top management and end-users, such as mechanics or operators, in the sales process and proof of concept trials is essential for success. This ensures alignment with the customer and identifies any issues upfront.
Building a successful relationship with contractors requires ongoing effort, including robust customer success initiatives, thorough onboarding, and continuous support. Unlike other industries, construction demands long-term engagement and maintenance of software solutions. This level of commitment weeds out those who create subpar products, ensuring a higher standard of quality and satisfaction in the industry.
WJ: Certainly. We've shifted our focus. While our company has sales targets to meet as a for-profit venture backed by VCs, our primary goal is centered around addressing predictable, critical business issues for our target personas. For instance, if you're a land development manager at a top 50 home builder, we anticipate you face specific recurring challenges. Our process involves identifying these pain points, demonstrating that they are not inevitable, and showing how our product can alleviate them. This approach permeates from business development to sales, customer success, and product development. By consistently addressing our customers' real problems, we find that revenue naturally follows and grows as we continue to provide value.
OR: Yeah, I Completely second that. Absolutely. I think in general, in business, in order to differentiate, you have to choose things you will just obsess about. We obsess about making the user experience as seamless as possible so they can use our software with minimum training. We also dedicate significant attention to ensuring a seamless onboarding process, we go above and beyond cleaning and organizing their data to enhance their initial experience with our software. We strive to make them feel welcomed and comfortable from day one.
Rather than engaging in typical corporate outings or sending gifts, we focus on delivering exceptional software and tools that align with our customers' needs and preferences. By obsessing over these aspects, we’re able to provide a unique and superior experience that sets us apart from competitors.
Even just four years ago when we started, most of the software in the industry looked and operated like it was from the 1980’s. We need to focus on building a software that people will write love songs about.
WJ: How do you that?
OR: Well, it starts with love. If you go to an electrician that loves what they do, you look at their work, you open the cabinet, you see everything straight, nice, color coded, pretty. And then if you look at someone that doesn't love what they do, well, you can already picture in your head.
As CEO, a lot of my job now, at least my team tells me, is not to be involved in the day to day of how the machine works. But Elon Musk calls it to be focused on the machine that builds the machine. Our machine that builds the machine is the company. That's my focus
So, the big question is: How do we build a culture that attracts people capable of developing the software our users need? We're looking for individuals who are not only passionate about their work and skilled in their craft but also dedicated to creating solutions that truly make a difference. We're constantly refining our internal processes to ensure satisfaction and enthusiasm among our team members. After all, when employees love what they do, the products they create reflect that passion and drive for excellence.
WJ: How do you orchestrate this complex symphony? How do you navigate the dynamic interplay of personalities, turnover, and the delicate chemistry of team dynamics? How do you ensure that the machine that builds the machine stays on track?
OR: I don't have an answer of how to do it in general. Every company will be as different as the folks who started it. Anyone who tell you they've got the secret is lying to you.
But I can tell you what worked for us. We got started right before COVID hit. Pre-COVID, the idea of running a construction-focused company remotely seemed absurd. But the pandemic forced a shift. Suddenly, phone and video calls became the norm, even in the construction industry, notorious for its reliance on face-to-face interactions. We swiftly realized the impracticality of maintaining physical offices. Within six months, we transitioned into a fully remote setup. Being a young company has its advantages. We’re agile.
Like any organization, we've developed our own set of processes. Our development teams have daily check-ins, while our management team conducts weekly meetings. Transparency is key—we maintain an open environment where everyone has access to relevant information. Our weekly newsletter keeps everyone in the loop, summarizing all company updates and ensuring clear communication across the board. And these are the things that worked for us.
We've been fortunate to maintain minimal churn in recent years, which is something we’re really proud of.
WJ: What do you see for the future of the construction industry and technology?
OR: Well the most significant paradigm shift in the last 15 years has undoubtedly been conversational AI. Some may not yet recognize its value, but that's likely due to a lack of immersion. As a company deeply rooted in data and AI, we've witnessed last year's advancements in conversational AI, and they've been truly remarkable.
Every 15 years, there's a transformative technology, like the internet in the 1990s and smartphones in the late 2000s. Conversational AI is our current frontier, and it's poised to revolutionize various sectors. The disruptive potential of AI is immense, and we must embrace it as part of our forward-thinking approach.
WJ: What advice would you share with an aspiring construction technology startup founder?
OR: The more you do, the more you need to unlearn. Learning is relatively easy; unlearning is the challenge. What do I mean by unlearning? As we grow, we accumulate habits that may hinder us. For instance, thinking we know it all or getting angry when things don't go our way. To unlearn, you must be mindful of your behaviors and thoughts. You should strive to work hard and make the most of your time on Earth while also not taking yourself too seriously. This means detaching yourself from outcomes, whether it's a lost contract or a big win. These qualities come with age and experience, and it's natural to become more grounded over time.
Oded Ran is Chief Executive Officer at Clue, a single-pane-of-glass software for heavy equipment management, which he co-founded in 2019. Clue’s customers include dozens of leading contractors such as the Walsh Group, Vinci, Sundt, Miller Bros, Palmetto, Igel Co., in the heavy civil, road/highway and mining industries.
Oded has had over 20 years leadership experience at software companies, with startups and enterprises (Microsoft, NCR). He has graduated from Harvard Business School and The Hebrew University.
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