Roots & Results: Inside the Heart of a Thriving Family Business

[00:00:01] Scott Eckart: I'm Scott Eckart and this is Future Proof, a show for building something that lasts. Let's get into it.

[00:00:08] Scott Eckart: Hello everyone. Joining us today on Future Proof, we have Seth and Jackie Morales, the CEO and President of the Morales Group

[00:00:16] Scott Eckart: You see these, like, these startups that last, you know, five years and then they scale and they sell. I'm more interested in the stay up where you can kind of keep getting up on stage day after day- Yeah ... year after year. Yeah. That's not easy to do, especially when maybe the act hasn't changed, then you got to kind of innovate.On today's episode, I was really taken with Seth and Jackie's mission-driven leadership, both in their business and in their family life, to be courageous, to be humble, to be a light, and to be gritty.

[00:00:48] Scott Eckart: ​

[00:00:51] Scott Eckart: Welcome, everyone, to this edition of Future Proof. Today, I have Jackie and Seth Morales with us today. Can you both say hello?

[00:00:59] Jackie Morales: Hello.

[00:00:59] Scott Eckart: Hello. Yeah. So they are the owners and, um, head duo at- Mm-hmm ... the Morales Group, and I love this tag phrase, "It's a people-powered platform," right?

[00:01:13] Scott Eckart: What would you add to that, guys?

[00:01:14] Jackie Morales: we also say our mission is building better futures one story at a time.

[00:01:18] Scott Eckart: Okay.

[00:01:19] Jackie Morales: So we're building a better future for our teammates, for our external clients, for our team.

[00:01:26] Jackie Morales: Uh, whatever we do, we put that lens on, how are we building a better future?

[00:01:29] Scott Eckart: Okay. Seth, what would you add to that?

[00:01:31] Seth Morales: To build upon that, I would say that we're a cause disguised as a business.

[00:01:36] Scott Eckart: Ah.

[00:01:36] Seth Morales: In a lot of ways, uh, there's a mission behind the four walls- Okay ... at Morales Group, and it's really to lift other people up- Okay

[00:01:45] Seth Morales: and be more of a mission-driven organization rather than a profit center.

[00:01:49] Scott Eckart: That's great. Well, I look forward to getting into that. Yeah. And Seth, your official title is CEO- Yeah ... and Jackie, your official title is President and Chief Strategy and Growth Officer. Mm-hmm. So

[00:02:00] Scott Eckart: tell us about like a day in the life of Jackie Morales. Oh,

[00:02:03] Jackie Morales: man.

[00:02:03] Scott Eckart: Right.

[00:02:03] Jackie Morales: Uh, you know, uh, from one moment I'm helping lead in L-10 as the integrator for, our general staffing side, to the next moment I'm ideating on some marketing and positioning, and then meeting with our, you know, our benefits broker yesterday for a good two hours on our strategy for what we're doing.

[00:02:26] Jackie Morales: So I think it's all things from growth and strategy to just putting out fires.

[00:02:33] Scott Eckart: Okay.

[00:02:33] Jackie Morales: Always.

[00:02:35] Scott Eckart: Big fires to be sure. Yes. Yeah. And then, and so Seth, the, you know, CEO- Yeah ... but you made a, a really interesting comment. I've not heard anybody say that before in terms of, um, being disguised, you know, as a business.

[00:02:49] Scott Eckart: Yeah. But tell me more about this particular focus. I'm very intrigued by the, the mission-driven piece of Morales Group.

[00:02:57] Seth Morales: I'm just trying to be a good steward of what has been entrusted to Jackie and I. I feel like our father, who founded the business-

[00:03:05] Scott Eckart: And that's Tom?

[00:03:05] Seth Morales: That's Tom ...

[00:03:06] Scott Eckart: right?

[00:03:07] Seth Morales: Had a really missional heart-

[00:03:09] Scott Eckart: Okay

[00:03:09] Seth Morales: for serving the community, and we felt like it was really important to kinda honor that legacy and carry it forward and- We've done that, I think, in, in different ways. You know, Jackie is usually behind the curtain kind of pulling all the levers, and she puts me out in front to be, uh ... Although she's better looking than me, she puts me out front.

[00:03:30] Seth Morales: You are eye

[00:03:30] Scott Eckart: candy. What

[00:03:31] Seth Morales: can I say? Yeah, yeah. I've got, I've got the looks. Come on, come on. I could use some work, um, with the lack of hair. But, you know, I think part of my gifting is to get up and, and talk- Mm ... and be in front of the group, and build a network, and get out there in the community, and sit on boards, and just try to create, you know, new business opportunities and connections.

[00:03:49] Seth Morales: Yeah. And so it's been a good one-two punch with Jackie's ability to integrate and operate the business, and, my role of kind of being forward-facing at times. Although Jackie's getting more forward-facing in the last several years, kind of building some of that confidence up. Mm-hmm. But it's just kinda been a one-two punch that we've been able to, you know, play over the last several years.

[00:04:09] Seth Morales: Mm-hmm.

[00:04:10] Scott Eckart: it's been really fun to get to know you. But the Morales Group didn't just kind of appear one day in this, you know, uber successful company. So let's talk about the history if we can. Yeah. So let's kind of get into the time machine a little bit. Yeah. And I know Tom is a force to be reckoned with, but where did this all start?

[00:04:27] Scott Eckart: Tom.

[00:04:27] Seth Morales: Yeah. I think just feel free to jump in. Yeah. But back in 2003, my father, uh, was kind of going down this 25, 30-year career route in Fortune 500 companies. He was an engineer by, by schooling- Okay ... but had a personality, and was forward-facing and did a lot of sales, but kind of felt dissatisfied and wanted to do something different.

[00:04:51] Seth Morales: At the same time, I had a, a grandfather who was dying of cancer, and he really challenged my dad- Hmm ... to, to make an impact and really kind of try to give back to the community. And my dad felt like that one way of giving back was providing, you know, people a job. Hmm. And so they were tomato migrant workers that came up to Indiana back in the '50s.

[00:05:11] Seth Morales: Okay. You know, very humble beginnings. And it was really about trying to build a better future for their family, and my dad wanted to kind of carry that legacy forward. He was great with people. At the same time, he had a, a co-founder and partner. He was another Purdue engineer. So they got together at the age of 50 and started this business back in 2003, and both really didn't have any experience in, uh, what we do.

[00:05:33] Seth Morales: So it was kind of funny. You had two engineers that were good at problem-solving, had, had different career tracks, and they put it together, and the first few years were pretty bumpy. Um, you know, I jumped in. I was ... I think I was employee number five, so really early on.

[00:05:48] Scott Eckart: Another Purdue grad, though.

[00:05:49] Seth Morales: Another Purdue grad.

[00:05:50] Seth Morales: Yes. Um, you know, and so- That's where our

[00:05:52] Scott Eckart: kids went, so.

[00:05:52] Seth Morales: Okay. Yeah. Boiler up.

[00:05:54] Scott Eckart: Sorry.

[00:05:54] Jackie Morales: That's right.

[00:05:54] Scott Eckart: All right.

[00:05:55] Seth Morales: It's all right. We got a house divided. I know. And Jacquie came in, uh, shortly thereafter, so we were, you know, early on, helping try to build this company. But I think the, the origins of it were, you know, just kind of, you know, immigrant family that really wanted to give back-

[00:06:09] Scott Eckart: Yeah

[00:06:10] Seth Morales: and make an impact. And one way we thought we could do that was by providing, you know, people employment.

[00:06:15] Scott Eckart: So growing up, though, did you ever think that you would be a business owner?

[00:06:22] Seth Morales: No. No, not at all. I d- Did,

[00:06:24] Scott Eckart: did you, Jackie? Mm-mm. I mean, did, was that a thing? It

[00:06:27] Jackie Morales: w- it wasn't a thing. My stepfather owned a very small trucking company.

[00:06:31] Jackie Morales: Okay. And so I was intrigued by that, but I, I didn't ... Um, I knew I wanted to go into business somehow. Okay. But I didn't envision being a business owner, so. Yeah. I think for me it was, um, exciting to be on the ground, near the ground up of just building and, and growing this business.

[00:06:50] Scott Eckart: So how did that conversation go?

[00:06:52] Scott Eckart: So you said, "I'm gonna go into business with my dad," and were you all married then? I mean, how did that work?

[00:06:59] Seth Morales: I mean- That's funny. Just got this question earlier today. Yeah? Okay.

[00:07:02] Scott Eckart: They thought we

[00:07:02] Jackie Morales: were siblings.

[00:07:03] Seth Morales: Yeah. Um, we, we play it pretty cool when we're at work. Um-

[00:07:08] Scott Eckart: Well, you kind of have to

[00:07:08] Seth Morales: I guess, right?

[00:07:09] Seth Morales: Yeah, yeah. You don't wanna make things awkward. Yeah, right. You know, I think, you know, from my standpoint, um, I had just graduated from Purdue. I had, I was in a, a B2B sales job. My dad was starting the company. I was living at home, and I was like, "Hey, you know what? I could help you out." So I was kind of knocking on his door, and he was like, "All right, I'll, I'll give you a shot."

[00:07:26] Seth Morales: You know, there was five employees at the time, and so he needed somebody to just kind of knock on doors and open things up, and he knew I was a, you know, kind of underdog, gritty competitor. I was gonna, you know, fight my way into, you know, trying to get a sale. And so that was my kind of entree into it.

[00:07:43] Seth Morales: And then Jackie came in a couple years after. We actually hired her. We were looking for another sales rep. Okay. And so I was actually working alongside Jackie, uh, helping train her, uh, and then-

[00:07:55] Scott Eckart: Train?

[00:07:56] Seth Morales: Yeah, yeah. Uh-huh. Quote, unquote, "train."

[00:07:58] Scott Eckart: Well done. Well done.

[00:07:59] Seth Morales: And, and, you know, a couple months into her working I went to my dad and I just said, "Hey, are you cool if, um, you know, I ask her out on a date?"

[00:08:08] Seth Morales: He's like, "Yes, but, uh, it could get really awkward if this goes, you know, sideways or doesn't work out." And so I just kind of knew from the get-go, maybe two or three months into dating her, I knew she was gonna be my wife, and just kind of knew from a partnership standpoint we were evenly yoked with just what we wanted to do- Yeah, yeah

[00:08:26] Seth Morales: in our career, and it just, it took off. We dated for about a year, and then we got engaged, and thankfully it worked out. Mm-hmm. Um-

[00:08:35] Jackie Morales: S- 17 years this Saturday.

[00:08:37] Seth Morales: Yeah, 17 years, so it's been

[00:08:39] Scott Eckart: a good run. Well, I mean, a really good run- ... because, um, that, in, just in my experience, is not how that normally works. Yes.

[00:08:47] Scott Eckart: Right? Yes. I mean, and I can just speak for m- myself and- Yes ... and maybe perhaps many others. Um, and so that brings up this idea of work-life- Yeah ... um, integration. Mm-hmm. I don't talk about work-life balance anymore because balance, eh, eh, that's not a thing. How do you do it? I mean, I know you just got back from family camp, I think.

[00:09:06] Jackie Morales: Yes.

[00:09:06] Scott Eckart: How was that?

[00:09:07] Jackie Morales: It was organized- Chaos ... goodness and chaos. Yes, yes. It was a ... I mean, you do it for the rich community and memories, and the freedom that the children have to run around- Yeah, yeah ... with their friends, and you come back just beat. But-

[00:09:22] Scott Eckart: Yes. It's an adventure. It's not a vacation. It is an

[00:09:24] Jackie Morales: adventure.

[00:09:24] Scott Eckart: Right, for sure. Yeah, okay. But integration, how, how does that work for you? Because you're, you're, you're not slowing down. You've added companies. You're, you're, you're growing. Mm-hmm. H- how do you do it? What, what do you have to say to folks that are listening that are in your exact same situation? and they've started families and, and what are, what are your thoughts?

[00:09:44] Scott Eckart: Let's start with you, Jackie.

[00:09:45] Jackie Morales: Absolutely. Well, I think it has, you know, we have grown into where we are today on coordination. But it takes constant communication, constant coordination. I think just right before we got on the podcast , we were coordinating pickup for our kiddos. Um, so I think for us, we have just learned to have a Sunday meeting- and kind of review what's ahead, who's going where, who's doing what. And then, you know, we have multiple calendars, calendars for our kids to follow. And, um, and I think also we've learned how to try to... We don't turn it off at night, but we've gotten a lot better- in this many years in on being able to say, "Okay, no more work talk."

[00:10:27] Jackie Morales: Let's just, let's stay present.

[00:10:28] Scott Eckart: So there's a boundary there.

[00:10:29] Jackie Morales: There is a boundary. Okay. Yeah, yeah. But, uh, do you have anything else to add to

[00:10:32] Seth Morales: that? Yeah. I, I wanted to ask a question the other night when we were in bed, and you were like, "No more." And I was like, "Okay." Okay. So I saved it for later. But no.

[00:10:39] Seth Morales: Yeah. Two, two quick things that come to my mind One, we have a really cool rhythm in the morning- Mm ... where we wake up at 5:00, have coffee, pray, journal, and kind of just dig in. But we kind of level set for the day. Mm. Yes. So that's a good rhythm that we've been doing for six years now. Mm-hmm.

[00:10:54] Scott Eckart: So if you miss that, is that

[00:10:57] Scott Eckart: Do you feel off-kilter?

[00:10:58] Jackie Morales: Oh,

[00:10:59] Seth Morales: it's

[00:10:59] Jackie Morales: dysregulating. Yeah. Okay. Yes.

[00:11:00] Seth Morales: Mm-hmm. Yeah. It's a great way to start- Yeah ... and, and, and be aligned. Mm-hmm. And then the second thing that's been good for the last almost eight years now, seven going on eight, is we share the same EA, or executive assistant.

[00:11:13] Scott Eckart: Oh.

[00:11:13] Jackie Morales: We do.

[00:11:13] Seth Morales: And so- Let's talk

[00:11:14] Scott Eckart: about that.

[00:11:15] Seth Morales: Mm-hmm. It's, it's a lot for her, but it, it keeps us, um- Yes ... aware of what's going on, and she's really good at strategic foresight, so, you know, if Jackie's heading in a direction- she can help me, kind of be read in. So there's things like that, like an EA or a rhythm in the morning that really matter.

[00:11:33] Seth Morales: Mm-hmm.

[00:11:33] Scott Eckart: And do you let your EA dig in your, their heels a little bit on stuff and maybe-

[00:11:38] Jackie Morales: You're, you're pretty good at that. Yeah.

[00:11:40] Seth Morales: Yeah. Jackie, Jackie's an Enneagram eight. Command and control is, is something that's important to her. I'm a three. Okay. Okay. He's a three. I'm a

[00:11:47] Scott Eckart: three. Yes.

[00:11:47] Seth Morales: Yeah. I, I'll let, I'll let CK, um, manage me, a little bit different than Jackie.

[00:11:53] Seth Morales: Mm. I'll give her some latitude to push on me. She's like a sibling to me- Mm-hmm ... in a lot of ways, like a big sister. Um, respect her a lot. Sh- but she's just been so ... She sits outside of our offices- She's- ... and can kind of ping pong back- Yeah. ... phenomenal ... so that's been helpful.

[00:12:06] Scott Eckart: So Jackie, you mentioned something the other day- Mm-hmm ... about a conversation with children, right?

[00:12:11] Scott Eckart: Mm-hmm. And I think that one of the coolest things about Family Business is that it is a wonderful lab for teaching.

[00:12:18] Jackie Morales: Wonderful

[00:12:19] Scott Eckart: lab. So let's chat about that a little bit. Mm-hmm. What are some things that, you know, it's not just about the money or, you know, things, but it's about, it's about time and it's about family, and what are

[00:12:29] Scott Eckart: why are we doing this?

[00:12:31] Jackie Morales: Mm-hmm.

[00:12:31] Scott Eckart: Yes. What good are we doing in the community? So can you, can you share a little bit about that?

[00:12:37] Jackie Morales: I think for us, we, we draw a lot of our company ... I mean, our company core values really are our family core values- Mm-hmm ... in many ways are- And

[00:12:47] Scott Eckart: can you sh- can you share those again?

[00:12:47] Jackie Morales: Yes. Uh, be humble, be courageous, be a light, and be gritty.

[00:12:51] Scott Eckart: Ah.

[00:12:52] Jackie Morales: And- Say

[00:12:52] Scott Eckart: that again. Real,

[00:12:53] Jackie Morales: just- Be humble.

[00:12:54] Scott Eckart: Okay. Be humble.

[00:12:54] Jackie Morales: Be courageous. Be

[00:12:55] Scott Eckart: courageous.

[00:12:56] Jackie Morales: Be a light.

[00:12:57] Scott Eckart: Be a light.

[00:12:57] Jackie Morales: Be gritty.

[00:12:58] Scott Eckart: Be gritty.

[00:12:59] Jackie Morales: Mm-hmm. And it just- Mm-hmm ... it encompasses, there, you know, there's some biblical nuance throughout.

[00:13:04] Jackie Morales: And then, you know, the grit, we added be gritty in the last two years.

[00:13:09] Jackie Morales: Mm-hmm. Um, and I think for us, we just want our kids, to realize the work and effort that it took to get where we are, and, that it's always continue to roll up your sleeves, continue to show up. And we, we share when there's challenges, we share with our children, like, "I had a rough day. This is what I'm working with."

[00:13:29] Jackie Morales: Even though they may not fully understand, we bring them into it and we bring them into the worry purposely, not to stress them, but to, to teach them- how to manage through it, how to pray through it. And I think for us, we also bring it in so the kids know the importance of generosity- Mm ... and what a business can do on, you know, the

[00:13:49] Jackie Morales: We always say the more we grow, the more we can give. And that's so important for us as a family and as a business. And, um, we bring them in, you know, we, we take our, our teams down to Mexico to build homes- Mm ... through YWAM. Okay. And we've taken our kids with us- Yeah ... on the home builds- Yeah, yeah ... um, to show, like, this is the goodness we can do, and, and volunteering here throughout the city as well.

[00:14:11] Jackie Morales: Mm-hmm,

[00:14:11] Scott Eckart: mm-hmm.

[00:14:11] Jackie Morales: What else would you add to that?

[00:14:13] Seth Morales: I think we, you know, we purposely bought, uh, our home office right down the street from where they go to school- Oh, okay ... so they can walk over- Yeah ... be immersed in the day-to-day. They'll come in, they know the staff. We'll have, a monthly town hall meeting, and we've had, you know, our kids up in front of the group.

[00:14:32] Seth Morales: We want them to, to get acclimated, engaged. We want them to understand what it's like, whether it's a tough time or a fun time- Mm-hmm ... or a celebration, or we're going back and doing a home build like Jackie mentioned.

[00:14:42] Scott Eckart: Mm-hmm.

[00:14:43] Seth Morales: But it's really important that we get them aware of just a lot of the conversations of how we're trying to support other people and doing it through the, the business.

[00:14:52] Seth Morales: So it's, it's kind of fully, I mean, I'd say we're fully immersed-

[00:14:56] Jackie Morales: Yes ...

[00:14:57] Seth Morales: with them- Mm-hmm ... with our business.

[00:14:59] Scott Eckart: And when, and when did you start that? Like, who, uh, was that modeled? Was that something that morphed over time? That's a good question. I mean, how, how did that happen? Because that, again, I'm just gonna say- Yeah

[00:15:10] Scott Eckart: that is not, what I see much- Mm-hmm ... with some of my other clients. Mm-hmm. Some of my others are trying to take a second bite at the parenting apple-

[00:15:19] Jackie Morales: Mm.

[00:15:19] Scott Eckart: Because they had forsaken them. Ah. And now they're at a point at which those relationships are very much at risk. Mm. And we had talked about that also.

[00:15:27] Scott Eckart: Yes.

[00:15:28] Seth Morales: Yeah.

[00:15:28] Scott Eckart: Why did you start that when you did, and who taught you how to do that?

[00:15:32] Seth Morales: I don't know if it was modeled just because we were later in life when we... Well, I was in my 20s, and you were in your 20s when we started with the company. So, you know, my dad didn't necessarily model it to us, and I don't, I don't know if your, your, uh, stepfather did.

[00:15:48] Seth Morales: So I think, you know, it was just unintentional. Um, just we thought about this as a business, as a legacy, you know, early on and not really wanting to sell the business. So, you know, G1, G2, G3- Mm-hmm ... how do we keep this thing going? And somewhat of a component of who Morales Group is. At the same time, getting these little guys and gal now-

[00:16:13] Seth Morales: to really start to think about stewardship, giving back, having a business, uh, that can do good, and teaching them about the day-to-day.

[00:16:22] Jackie Morales: Mm-hmm.

[00:16:23] Seth Morales: I think we just started really early. Mm. They sh- started showing up when we were running the company, and we just had them a part of a lot of just the different events and things.

[00:16:31] Seth Morales: Mm-hmm. And it just organically started that way.

[00:16:33] Jackie Morales: It did. And I think we always, when we talked be- before we had children and then as we were having children, just, just putting faith, family, you know, faith and family first. And then obviously we are in business, but how do we weave that within the business?

[00:16:50] Jackie Morales: Mm-hmm. And I think even at Notre Dame, we, we went to Notre Dame together and got our MBA, and that was a core thing, was just ask more of business and ask more of yourself. And so that really, um, kind of was interwoven into how we were looking at business. And then as we started building a family and building the business, that just started to come natural.

[00:17:10] Jackie Morales: Yeah.

[00:17:11] Scott Eckart: Have they talked at all about following in your footsteps?

[00:17:14] Jackie Morales: Oh,

[00:17:14] Seth Morales: yeah. Yeah.

[00:17:15] Jackie Morales: Oh,

[00:17:15] Scott Eckart: yeah. What is, what, what has that conversation been like?

[00:17:17] Seth Morales: Uh, it's interesting. Um- Working together, you know, having brothers that, um, don't always get along, you know, we've, we've had- Shocking. ... plenty, plenty of conversations around that.

[00:17:28] Seth Morales: I think, you know, we've tried to be intentional about, you know, tough, difficult conversations about, hey, we've worked with my father. I have a brother in the business. You know, it's not always easy. How do you get through or get past some of those challenges? Some of you work with my wife. so we try to have transparent conversations.

[00:17:47] Seth Morales: We bring them into tough, topics and then see what they think. Um- Mm-hmm ... we expose them to quite a bit.

[00:17:53] Jackie Morales: Mm-hmm.

[00:17:54] Seth Morales: But I think we're just very open and transparent with a lot, with the business. Yeah. And that's helped them.

[00:17:59] Jackie Morales: And we've, I mean, I think with the boys, we're encouraging, 'cause our daughter's super young still, but our boys, we're encouraging them to just think from a business mindset.

[00:18:09] Jackie Morales: one of the things I can tell you is, and I can't predict the future, but that will pay off in ways that you cannot imagine. So I, I'm, you know, a fair bit older than both of you, and I can only tell you, please, please, please stay the course.

[00:18:25] Scott Eckart: Okay. Because that will, that will pay off. Thank you. I sat with one business owner who was in tears, and he said, "Scott, my greatest fear is that my children only see me as an ATM."

[00:18:37] Scott Eckart: Mm. Yeah.

[00:18:39] Scott Eckart: And that just broke my heart.

[00:18:40] Scott Eckart: It is. Yeah.

[00:18:42] Scott Eckart: And I said, "Well, we can do something about that."

[00:18:45] Jackie Morales: Mm-hmm. "

[00:18:46] Scott Eckart: If you have the will to, to begin that."

[00:18:49] Scott Eckart: Now, his children were all adults.

[00:18:51] Jackie Morales: Oh, wow. Mm.

[00:18:52] Scott Eckart: And so we got after it. Mm-hmm.

[00:18:56] Jackie Morales: But

[00:18:57] Scott Eckart: it's easier to build children than to fix broken adults. Adults. Yeah. Right? Mm-hmm.

[00:19:03] Seth Morales: That's a great point. It is.

[00:19:04] Scott Eckart: Yeah. So well done, both of you. Thank you. Thank you.

[00:19:06] Seth Morales: We're trying.

[00:19:07] Scott Eckart: So on our history lesson here of- Mm-hmm ... Morales Group, um, so we've got the two of you married. Things are getting a little bit better. Um, Tom is now what?

[00:19:17] Scott Eckart: 60, 65. You're ... You know, tell us the progression now into leadership for both of you. Yeah. What, what did that look like, and how did that happen?

[00:19:26] Seth Morales: You wanna jump in?

[00:19:27] Jackie Morales: You can.

[00:19:28] Seth Morales: Okay. Yeah. So early on, my dad was, was great at delegating, and I think that was one of his strengths. he wasn't a detail guy. Here

[00:19:37] Scott Eckart: we go, son.

[00:19:37] Seth Morales: Yeah. This is- Very highly relational, really had a good pulse on, talking with, with teammates and being kind of the mascot- Mm-hmm ... and the heart and the brand behind the company, and great at sales, but really empowered us to, to really roll up our sleeves. At the same time, he had just, um, bought out his, his partner.

[00:19:58] Seth Morales: Okay. Uh, that was in 2012 to, like, '13, and Jackie and I were getting our MBA at Notre Dame, and he just said, "Here you go," like, "Go run this thing." And we had, I think, one of the cooler runs, you know, it's just one of those decades of just, you know, our constant annual growth rate was, you know, 20 to 25% year over year.

[00:20:21] Seth Morales: And- That is

[00:20:21] Scott Eckart: not sustainable.

[00:20:22] Seth Morales: It's not. It's not, it's not normal. It's amazing, but yeah. It was fun to scale the business up. Yeah. But he, he empowered Jackie and I to be kind of the brand, the sales, the marketing-

[00:20:33] Scott Eckart: The culture ...

[00:20:34] Seth Morales: the culture, the mission, and he just, he, he, he gave us kind of the playbook to go and run.

[00:20:40] Seth Morales: And man, she crushed it. I did my part. We had an incredible run. I think, you know, it just ... We were three good leaders into, like, one CEO. Jackie was a lot of brand and HR and marketing, and I was sales and, um, relational- Mm-hmm ... you know, connectedness. And so it just, it was fun to just kind of launch that and grow it.

[00:21:06] Seth Morales: Mm-hmm. We, we did dabble in operations. I think we've always had our hand on it or held people accountable to operations- Mm-hmm ... to fulfilling orders. Mm-hmm. But it was just, I think, a really cool opportunity. We had just finished our MBA. We were early 30s. We didn't have any kids yet, or we had just had our first, and he really just gave us the, uh, latitude to run.

[00:21:27] Seth Morales: And the company scaled from, you know, I think maybe we were 25 to 30 million at the time, and we scaled it all the way up to about 145 million. So it was just an incredible just clip of- Wow ... of growth and scale. Wow. And, uh, we s- you know, trying to create a system to support that, but it was, it was a really fun time.

[00:21:47] Jackie Morales: Mm-hmm.

[00:21:48] Seth Morales: What, what else would you add on that?

[00:21:50] Jackie Morales: I, I just, I think we were nimble and, um, that really helped, and creative, and there were not a lot of guardrails, so we could try things out and fail fast. And I think, um, Tom was still running alongside us, and it wasn't until really 2020 when he took a chairman of the board-

[00:22:13] Scott Eckart: Okay.

[00:22:13] Scott Eckart: Yeah ...

[00:22:13] Jackie Morales: role and kind of stepped- And, and

[00:22:14] Scott Eckart: that was a specific decision he made?

[00:22:18] Seth Morales: Yes.

[00:22:18] Scott Eckart: Okay.

[00:22:19] Seth Morales: Yeah.

[00:22:19] Scott Eckart: Yeah.

[00:22:20] Seth Morales: He was, he was of the mindset, he had started the business at 50, hadn't really generated, life-changing wealth. Mm-hmm. But his, his net worth was tied up in the business. Yeah. And he was like, "You know what?"

[00:22:32] Seth Morales: He's a, he's a very generous guy, and he wanted to find a way to kind of take some chips off the table. Yeah. And so we explored potentially selling the company. Uh, that wasn't, uh, an aligned decision between Jackie and I. We were very much opposed to that. Um- Okay. But, you know-

[00:22:51] Jackie Morales: That

[00:22:51] Seth Morales: was a pivot. Yeah. Okay.

[00:22:51] Seth Morales: Yeah, yeah. That, that was definitely a pivot, for sure. Um, we went to market, didn't find the right suitor. Uh, we ended up recapitalizing the business, and that's when Tom stepped out- Okay ... and bought in. Yep. That's a really kind of important kind of inflection point in the business and the history of the business.

[00:23:08] Seth Morales: But- Mm ... that was, uh, that was a cool learning experience to- Yeah.

[00:23:12] Scott Eckart: And takes courage, by the way.

[00:23:14] Seth Morales: Yes.

[00:23:14] Scott Eckart: I talk to a lot of my business owner clients about doing that very thing.

[00:23:18] Seth Morales: Yes.

[00:23:18] Scott Eckart: We do. And they don't have the courage to do that. Oh. The recap is- Mm-hmm ... huge.

[00:23:22] Jackie Morales: It is

[00:23:23] Seth Morales: huge. Yeah.

[00:23:23] Scott Eckart: Yep.

[00:23:23] Seth Morales: It

[00:23:23] Scott Eckart: was- 'Cause it opens all sorts of doors that-

[00:23:26] Seth Morales: Yeah

[00:23:26] Scott Eckart: they don't even know.

[00:23:27] Seth Morales: Yes. Yes. It, it was, uh- Yeah ... it was life-changing for our family. Mm-hmm. It was life-changing for Jackie and I in a way that, put more, uh, responsibility and burden on, uh, the company and her and I, uh, than what I think my dad experienced. But it's a really just kind of, um, interesting point in our, uh, business.

[00:23:46] Seth Morales: But I would say that my dad stepped aside, he was 65, 66. And at the time he was just like, "You know what? We've made a great run. I've been able to kind of de-risk a little bit with this recap of the business," where we were able to take some, some money out, and that was, that was pretty life-changing for him.

[00:24:05] Seth Morales: So that coincided with COVID, and it really put him on the sidelines really quick. What is this COVID

[00:24:11] Scott Eckart: you speak of?

[00:24:11] Seth Morales: Yeah.

[00:24:12] Scott Eckart: Okay.

[00:24:12] Seth Morales: I've never- I've never heard of that. I

[00:24:13] Scott Eckart: don't know.

[00:24:13] Seth Morales: Yeah. Oh, I'm aware. What is that? I kind of, um- Yeah. So that was just, for us, you know, we had, we, we levered the company up with a lot of debt- Mm-hmm

[00:24:21] Seth Morales: like millions of dollars, and we had never operated that way. Right. We were fiscally conservative, organic growth. We had only one tuck in small acquisition. So we had not really, lived with debt and debt covenants. And- Yeah ... then COVID hits. My dad's on the sidelines, and Jackie and I, um-

[00:24:37] Jackie Morales: Literally, we signed the documents in February of 2020.

[00:24:40] Scott Eckart: In March,

[00:24:41] Jackie Morales: boom. Boom.

[00:24:42] Seth Morales: Yeah. Yeah. So it, it was just, it was-

[00:24:44] Jackie Morales: Like 30% of our business shut down.

[00:24:46] Seth Morales: Yeah, for a quarter. Mm-hmm. You know, we were really sweating, uh, big time. Uh, we ended up having, 2020 ended up being a, a pretty phenomenal year. We, we had dropped maybe 20 million in revenue, but we kept the same profitability.

[00:25:02] Seth Morales: Was proud of that, um- There

[00:25:03] Scott Eckart: were a lot of very cool things that happened. Uh, not, I don't mean to diminish loss of life, but- Right ... there were-

[00:25:11] Seth Morales: Yes ...

[00:25:12] Scott Eckart: really interesting things that did come out of that- Yeah ... that business owners learned.

[00:25:15] Jackie Morales: Yes.

[00:25:16] Seth Morales: Yeah, for sure. There's a lot of resiliency. Yeah, yeah. Mm-hmm. I think we grew quite a bit in our faith, and our relationship strengthened quite a bit because, you know, we just, you know, it was on us.

[00:25:27] Seth Morales: Yeah. So-

[00:25:27] Scott Eckart: Yeah, I mean, I think that's w- our core value, be gritty, really kinda came from, from those-

[00:25:33] Jackie Morales: From that, those times

[00:25:34] Seth Morales: three or four years. I mean, it's, it's been a five, six year slog for us. Yeah, and I

[00:25:38] Scott Eckart: had no patience for that.

[00:25:39] Jackie Morales: I know.

[00:25:40] Seth Morales: Yeah.

[00:25:40] Scott Eckart: I was that grumpy old man. Get back to work.

[00:25:43] Seth Morales: Yeah. Come on. Let's go.

[00:25:44] Scott Eckart: Right?

[00:25:44] Seth Morales: Yeah.

[00:25:45] Scott Eckart: Yeah.

[00:25:45] Seth Morales: Yeah, I th- and I think, I think looking back, like, one of my mistakes, just to be completely transparent, is I was looking in the rear view mirror salty about the, the cards we were dealt.

[00:25:58] Seth Morales: We had all this debt. Mm. We had this, like, incredible run, and it was just like now, you know, you have, um, family kinda sitting on the sidelines, um-

[00:26:08] Scott Eckart: Cashing checks ...

[00:26:08] Seth Morales: enjoying, enjoying the fruits of, of what, you know, my dad-

[00:26:12] Scott Eckart: Mm-hmm ...

[00:26:12] Seth Morales: and Jackie and I helped build. And then we just had a lot of responsibility and, um, debt, and that was just, that was tough.

[00:26:19] Seth Morales: And so I s- I s- I think I spent a lot of time-

[00:26:23] Jackie Morales: Mm-hmm ...

[00:26:23] Seth Morales: squaloring in- Hmm ... my own, like pity. Okay. And I've learned from that. Yeah. You

[00:26:29] Jackie Morales: know? Your mindset shift in the last two years has been-

[00:26:31] Seth Morales: Yeah, the last two years I've really kind of gotten past that. But man, did I waste a lot of time.

[00:26:36] Scott Eckart: Mm-hmm. Yeah, and I, I, I've seen business owners emerge differently at different stages from what I call that darkness.

[00:26:42] Jackie Morales: Yes. Yeah.

[00:26:43] Scott Eckart: Yes. You know? And you can see it in their eyes and their face when they're, you know ... Yeah. And I'm like, "Ah, you're through."

[00:26:49] Seth Morales: Yeah.

[00:26:50] Scott Eckart: Welcome back. Some of u- It's so good ...

[00:26:51] Seth Morales: some of us takes longer.

[00:26:52] Scott Eckart: It's good, it's so good to see you.

[00:26:54] Scott Eckart: how do you spot talent? Mm. 'Cause you're very good at it, for your t- I mean, that's what you do, but you have an amazing group of professionals. I mean, how do you spot talent for your team?

[00:27:06] Jackie Morales: I would say w- um-

[00:27:08] Scott Eckart: I mean, they've been with you for years

[00:27:09] Jackie Morales: years. Yeah. We're really grateful for the teammates that have been ... I mean, there are individuals that have rolled up their sleeves and have seen the downs and ups. Mm-hmm. And I mean, I remember meeting Kim 16 years ago in a coffee shop to interview with her, and I'm like, "She's special." Like- There's just something I know.

[00:27:28] Jackie Morales: She's got

[00:27:28] Scott Eckart: a light, that

[00:27:29] Jackie Morales: one. She has a light. Yeah. And, and her spirit and her energy, and I think that's a gift that I've been given, is to be able to just spot, um, just something that's ... Even our EA, CK, when I ... You know, we had gone through five or six people we were interviewing, and she was a last-minute put in, and I had 20 minutes with her, and I was like, "She's special.

[00:27:49] Jackie Morales: Sh- we need to hire her."

[00:27:51] Scott Eckart: Mm-hmm.

[00:27:51] Seth Morales: Yeah, one of your gifts is, your top five strengths, is individualization. Mm-hmm. And so Jackie's really great at spotting talent and, even when maybe they don't fit inside the box, you can see potential in a lot of people. Mm-hmm. And I think one of the things that I'm really proud about at Morales Group is just all the talent that have spurred on to, into other roles.

[00:28:10] Seth Morales: Yes. We were a feeder into Roche and Eli Lilly and just- Lots ... lots of just diverse talent that went on to go take other roles. It's tough to see people leave, get a little salty.

[00:28:21] Scott Eckart: But it is a tremendous compliment as well. Yes. Right? And, and, and I do tell business owners, I said, "Look-" They're alumni.

[00:28:28] Seth Morales: Be proud of that.

[00:28:29] Jackie Morales: Yes.

[00:28:29] Scott Eckart: Yeah. Right?

[00:28:30] Jackie Morales: Yes. Yeah. That's a really good framing of that. Yeah,

[00:28:33] Scott Eckart: you know, it is, you know.

[00:28:34] Jackie Morales: I need to hear that a

[00:28:36] Scott Eckart: little bit more. Be- i- it does- i- I mean, it does hurt,

[00:28:38] Jackie Morales: like- 'Cause you take, uh-

[00:28:38] Scott Eckart: Yeah ...

[00:28:38] Jackie Morales: you care deeply about- Yeah ... all these people.

[00:28:41] Scott Eckart: That's right.

[00:28:42] Jackie Morales: And so there's- And

[00:28:42] Scott Eckart: it's like, "Did I do something wrong?"

[00:28:43] Scott Eckart: Yes. "Why are you not here anymore?" Mm-hmm. "Are you not happy?" They, you know, that kind of thing.

[00:28:46] Jackie Morales: But then you're also proud when you see them-

[00:28:48] Scott Eckart: That's right ...

[00:28:49] Jackie Morales: running something big at Eli Lilly, and you're like, "That's pretty cool."

[00:28:52] Scott Eckart: And you know, Daniel's another one. Yeah. He's just fireball, that one.

[00:28:54] Seth Morales: Yeah,

[00:28:55] Scott Eckart: a

[00:28:55] Seth Morales: lot of energy.

[00:28:56] Scott Eckart: Just

[00:28:56] Seth Morales: oof.

[00:28:57] Scott Eckart: Yes. A lot of spunk. Hang

[00:28:58] Seth Morales: on. Ca- ca- Yeah ... came from the streets of Ben Davis. You know, he's, he's definitely risen up and been promoted and, but he's super gritty, and, um, debate club in high school and had this gift of, like, talking and articulating himself- Mm-hmm ... and just when you see folks like that that have a desire to grow-

[00:29:15] Scott Eckart: Mm-hmm

[00:29:15] Seth Morales: it's been fun to kinda get behind them and, um, you know, kind of lift them up. Yeah.

[00:29:19] Scott Eckart: Mm-hmm.

[00:29:20] Scott Eckart: Yeah. So what are you most excited about now?

[00:29:24] Scott Eckart: Yeah, I just think I'm coming off a, a two-month sabbatical this summer, and I had some time to think. Good for you. It was great.

[00:29:32] Scott Eckart: Yeah.

[00:29:32] Seth Morales: We went up to Michigan for a month. It was slow and simple.

[00:29:35] Scott Eckart: I think we talked once, didn't, didn't we? Mm-hmm, mm-hmm.

[00:29:38] Seth Morales: Yeah. Yeah. Mm. So I was probably unplugged when you guys talked. Yep. But the intent was to recharge my batteries. There wasn't this, like, life-changing kind of aha that I came across. It was more about, how can I keep running hard for another decade?

[00:29:50] Scott Eckart: But the fact that you did it-

[00:29:52] Seth Morales: Yeah ...

[00:29:52] Scott Eckart: is- Amazing

[00:29:55] Seth Morales: Yeah Well

[00:29:55] Scott Eckart: done

[00:29:55] Seth Morales: I mean, I did it because of Jackie holding the fort down and really kind of bearing some of the, the stress. she, you know, took my roles and wore her hats, but it was Uh, a lot of gratitude, I think, for that. But I think what I'm excited about most, coming back to your question, is just the future of where we are as a business.

[00:30:15] Seth Morales: We're more professionalized. We're a little bit more sophisticated as a company, but we haven't lost our ethos or who we are. Mm-hmm. Mm-hmm. The essence of our character and it's more margin, more mission, and really kind of continuing to get ... to build. So as we diversify our portfolio of businesses and get a little bit more, I think, um, intelligent with, like, the way we go to market and sell and build relationships, I think the business gets a little bit more sticky, a little bit more strategic.

[00:30:47] Seth Morales: You know, in the past we were more of a high volume, low margin, you know, staffing player, which there's nothing wrong with that. Mm-hmm. There's a model for that. But there's other things that complement that part of our business. And now it's, it's a kind of host of services that I think are unique and add value in the market.

[00:31:05] Seth Morales: And so we've got this kind of G3 legacy maybe with our two little guys, and maybe Nina behind her, behind them.

[00:31:13] Jackie Morales: Mm-hmm.

[00:31:13] Seth Morales: You know, Jackie and I think, you know, I, I think I'm more in love with Jackie today than I was when I met her. Mm. You know? So the relationship is really strong. I think we are excited about moving from, you know, day-to-day operators to, like, owner investors, and really lifting up some of our leaders or bringing others into the fold to run the day-to-day.

[00:31:34] Seth Morales: So that, that's exciting. Mm-hmm. So better value prop, I think a more strategic company. You know, different, different people to kind of lift ... lean in and lift up the company. Mm-hmm. Our kids, you and I, just to having, I think, better balance with where we're at. Mm-hmm. So it's a just ... I think for me it's kind of an enlightening time where I'm 46 and I'm like, "Hey, I've made a good run up this first mountain.

[00:31:56] Seth Morales: Maybe this second mountain I can do it with more people together." and it's less about achievement and it's more about purpose and impact, and so it's a fun time for me. I don't- Yeah. Any other thoughts you would add?

[00:32:07] Scott Eckart: What are you most excited about?

[00:32:08] Jackie Morales: I would say, um, last year we, we bought two companies and it was hard work, and it's continued to be hard work, but I think I see the fruit of it on the horizon.

[00:32:21] Jackie Morales: And I see-

[00:32:22] Scott Eckart: Because they're, they fit into ... They're not like a car wash and a dry cleaners. Right. I mean, they fit in the big picture.

[00:32:29] Jackie Morales: Yeah, they're all interwoven. Is, is that fair? Yeah, yeah. Yes, yes. And, and I think what's ... Just even meeting with a client this morning, and he was like, "Oh, you guys do this and this?

[00:32:39] Jackie Morales: I've never seen an organization that offers this full suite of, of things." And so that got me excited, just an affirmation of what we're building and what we continue to add to the suite of businesses. Mm-hmm. But I also think, you know, as Seth had said earlier, we're in rebuild stage after COVID and just kinda getting everything in order.

[00:33:01] Jackie Morales: But I'm excited about just the giving and the partnerships of organizations that, you know, we've continued to give, but, you know, we always say how we're giving of our time, talent and treasure, and how do we even ramp that up in the years to come? And I'm ... I ... There's so much goodness on the horizon as we continue to grow.

[00:33:19] Jackie Morales: Um- Yeah ... just the impact, even small ways that we've given as a company make such a difference that I can't wait to see what we, we can do ahead.

[00:33:28] Seth Morales: Yeah, we get really competitive when we see other companies that are bigger than us.

[00:33:32] Jackie Morales: Mm-hmm.

[00:33:33] Seth Morales: We get, we get a little salty. And, and- In a good way ... the reason why is, like, you know, I wish we had a business of that size because I think pound for pound we would outgive a lot of companies in the market, and it's really important.

[00:33:49] Seth Morales: We, we do give a lot, I think, of our, our time and, um, our resources at Morales Group, and then outside in the ... From a family standpoint, somebody has said to, to, uh, me about my father, he's never ... He- he's a wealth advisor and has a large book, and he said, "I've never seen anyone in this portfolio of customers that's given as much as your father."

[00:34:11] Seth Morales: And so we ... I, I mean, that's very much- Inspiring ... in Jackie's DNA. And so we wanna give more, but it's like we really wanna grow this business- Mm-hmm ... so we can do more good.

[00:34:22] Scott Eckart: Yeah. So you know what Simon Sinek calls that, right?

[00:34:25] Seth Morales: What's that?

[00:34:25] Scott Eckart: The in-

[00:34:26] Jackie Morales: Knowing your why?

[00:34:26] Scott Eckart: No, the infinite

[00:34:28] Seth Morales: game. Infinite game. Yes. That's right, yeah.

[00:34:29] Seth Morales: Somebody brought that up the other day.

[00:34:31] Scott Eckart: So pick a worthy opponent.

[00:34:32] Jackie Morales: Ooh. Yes.

[00:34:34] Scott Eckart: And turn your team loose. I'm working on that project right now.

[00:34:38] Jackie Morales: You are? Ah.

[00:34:38] Scott Eckart: Mm-hmm.

[00:34:39] Jackie Morales: Huh.

[00:34:40] Scott Eckart: Yep. I do it inside of what I call an annual advance- Mm-hmm ... versus a retreat. Okay. Ooh. That's a whole process that I do. And pick a worthy opponent, get after it.

[00:34:52] Scott Eckart: Yeah.

[00:34:53] Jackie Morales: Mm.

[00:34:53] Scott Eckart: And you examine your three biggest fails.

[00:34:56] Seth Morales: Okay.

[00:34:56] Jackie Morales: Yes.

[00:34:57] Seth Morales: We've had a few of those.

[00:34:58] Scott Eckart: Okay. We all have, right? Yeah. But the-

[00:35:00] Seth Morales: Personal or the business?

[00:35:01] Scott Eckart: The business. Yeah. They're the best teachers. Okay. And oftentimes they're rooted and then in personal fails of leadership. A- and we can talk about that too- Yes

[00:35:10] Scott Eckart: right? Yeah. 'Cause sometimes that's actually what is the limiter.

[00:35:15] Jackie Morales: Mm-hmm.

[00:35:16] Scott Eckart: Yeah. But play the infinite game, but let your team do it, and ask them this question: "If you knew you could not fail, what would we do?"

[00:35:29] Scott Eckart: And if your people knew, what i- what would I do both personally and professionally- Mm-hmm ... if I knew I couldn't fail? And that's where this podcast came from. Mm. That's why I'm writing a book, 'cause I'm like, "I don't care if anybody ever reads it, but what would I do if I knew I couldn't fail?"

[00:35:43] Scott Eckart: Right.

[00:35:43] Scott Eckart: Yeah. And because all through growing up, I did not have anybody on the sidelines-

[00:35:50] Jackie Morales: Cheering

[00:35:50] Scott Eckart: you on ... really cheering me on. Yeah. It wasn't til later. It wasn't til my mentors-

[00:35:54] Jackie Morales: Hmm ...

[00:35:54] Scott Eckart: which is where we're going next, by the way.

[00:35:55] Jackie Morales: Okay.

[00:35:56] Scott Eckart: Okay. So people who saw something in me I didn't see in myself-

[00:36:00] Jackie Morales: Oh, absolutely

[00:36:01] Scott Eckart: who gave me the permission-

[00:36:03] Jackie Morales: To- ...

[00:36:03] Scott Eckart: to succeed ...

[00:36:04] Jackie Morales: succeed. '

[00:36:04] Scott Eckart: Cause I had the head trash that said, "Hmm, you don't got it, Scott." Right?

[00:36:09] Jackie Morales: Mm-hmm.

[00:36:10] Scott Eckart: So who gave you the permission to succeed? Who were your mentors? Tell me. Mm. Let's start with you, Jackie.

[00:36:15] Jackie Morales: So, um, Kathy Cabello, has always been someone I speak about. I met her through an organization called Project Steppingstone, which is, um, a high school mentoring organization- Hmm

[00:36:29] Jackie Morales: for Latino students.

[00:36:30] Scott Eckart: Okay.

[00:36:30] Jackie Morales: And- Where'd you go

[00:36:31] Scott Eckart: to high school?

[00:36:31] Jackie Morales: Uh, Lawrenceburg. Okay. A small little town- Yeah ... in southeast Indiana. Okay. But I didn't meet her through high school. I actually met her in my professional years, and we were working with Project Steppingstone as a company. We were one of the first companies 20 years ago to donate for scholarships.

[00:36:49] Jackie Morales: But I saw her speak. I didn't know her well, but I saw her speak at a women's NAWBO event, and I was enthralled. I was like, "Who is this woman?" And she went to the University of Notre Dame for MBA, and I was like, "I must know her." And so I introduced myself, and, um, I got to know her. I started volunteering with Project Steppingstone, and, and then she was the one...

[00:37:13] Jackie Morales: I mean, she just always has some wonderful insight, always, like, career-focused. She has two daughters that are wonderful humans. But I think about her, she was the one who, I never thought I could go and get my MBA- Why? Why? I never thought... I don't know. Yeah. I just, I had no one... I was a first-generation college student.

[00:37:32] Jackie Morales: Okay. First one in my- Yep ... entire family on both sides to go to college. Okay. And no one had that, um, it wasn't a learned experience of how to get there. Sure.

[00:37:40] Scott Eckart: Yeah.

[00:37:40] Jackie Morales: And she's like, "You can go to Notre Dame." And I was like, "I can?" And she believed in me, and it was just that one moment of belief. Hmm. And, um, and then I applied.

[00:37:51] Jackie Morales: And we went to Notre Dame.

[00:37:53] Seth Morales: Yeah. You- Well, you got in and I was like, "Hell no, I'm gonna do it with you." Yeah. So we fight. I'm not gonna be shown up. I'm not gonna be left

[00:37:59] Scott Eckart: behind.

[00:38:00] Seth Morales: Yeah. I'm not, yeah, I'm not hanging out watching Netflix while you're crushing it up there.

[00:38:06] Scott Eckart: Getting a big brain.

[00:38:07] Seth Morales: Yeah, that's that Enneagram 3 achiever.

[00:38:09] Seth Morales: Uh-huh.

[00:38:09] Scott Eckart: That's you

[00:38:10] Seth Morales: and me. That competitive, yeah. Yeah. Yeah, I think for me, just thinking about folks that had impressions on me and mentored me, there was a guy who was, um ... he had an accounting firm. Yes. His name was Mike Allerdine. He's kinda old. Oh,

[00:38:23] Scott Eckart: Mike.

[00:38:24] Seth Morales: Do you know Mike? He's kind of an older dude. Yeah.

[00:38:25] Seth Morales: Kind of shorter. Sad that

[00:38:26] Scott Eckart: he's not

[00:38:27] Jackie Morales: with us- I know ... anymore.

[00:38:28] Seth Morales: Yeah. Yeah, I know. And Mike, um-

[00:38:30] Jackie Morales: He was our ... He, we used him

[00:38:32] Seth Morales: for our accounting. Yeah, we used him for our accounting. Mm-hmm. Yep. But Jackie and I were really, like, new in the business, and he was the guy that pulled us aside and said, "Hey, I think you guys could run this business on your own."

[00:38:42] Seth Morales: Um-

[00:38:43] Jackie Morales: He did ... and

[00:38:43] Seth Morales: he- No one had ever said that ... nobody, nobody said that, and that just, like, gave me all the encouragement. I was like, "Mike, are you serious?" Like, "Come on, man." He's like, "No, you, you know, you guys are getting your MBA at Notre Dame. You walked on at Purdue. You've got that gritty hustle. She's got the charisma.

[00:38:59] Seth Morales: You guys can do it." And just took a, a little thing like that to really kind of tip the scale for me.

[00:39:05] Jackie Morales: Mm-hmm.

[00:39:05] Seth Morales: So it's these small moments where somebody just says- Mm-hmm ... "You can go to Notre Dame," or, "You can start your own business," or, "You can, you know, play here at Purdue," and that just makes all the difference.

[00:39:16] Seth Morales: Yeah. And, and really has impacted us- Mm-hmm ... I think, in significant ways.

[00:39:20] Scott Eckart: Yeah. Can you imagine the people that we've said things to that we don't even know? I

[00:39:24] Jackie Morales: know.

[00:39:24] Seth Morales: Yeah.

[00:39:25] Scott Eckart: Right?

[00:39:25] Jackie Morales: I know. You don't even have to be a mentor where it's like a long-term mentor.

[00:39:29] Scott Eckart: No, no.

[00:39:29] Jackie Morales: It is

[00:39:29] Scott Eckart: like-

[00:39:30] Jackie Morales: Like ... you just have to inspire- Yeah

[00:39:32] Jackie Morales: or believe.

[00:39:33] Scott Eckart: Yeah. Mm.

[00:39:33] Jackie Morales: So I know you've got, um, at least one really cool, uh, project in the work with Axion. Let's talk about, how that's going and the new focus that, with that on the, on the company.

[00:39:44] Scott Eckart: I've gotten to know some of those folks- Mm-hmm ... over there as well, so let's talk about the new, the new company. Seth.

[00:39:49] Seth Morales: Yeah, so we, we bought a business last year, and, uh, it was a, a, a strategic partner. This guy had a packaging company, but also had a warehouse 3PL, third-party logistics- Mm-hmm ... company that-

[00:40:02] Scott Eckart: I'm just learning about that.

[00:40:04] Seth Morales: Yeah.

[00:40:04] Scott Eckart: The 3PL. 3PL,

[00:40:04] Seth Morales: yeah. That's very cool. Yeah. So he wanted to carve that out and focus on his packaging business, and we, uh, support and staff a lot of these third-party logistics warehouses. oftentimes a big part of what operates those businesses are people inside. Mm. And we do a pretty good job of supplementing them with, with a, you know, contract workforce.

[00:40:25] Seth Morales: So we have a couple thousand people running around the city- Yeah ... doing that type of work. So we knew it pretty well. So we-

[00:40:30] Jackie Morales: And we also had a BESS-

[00:40:33] Seth Morales: Yes, and- ...

[00:40:33] Jackie Morales: and fulfillment arm ...

[00:40:34] Seth Morales: we had a smaller division that did a component of third-party logistics. Yeah. Yeah. And so we thought, "Hey, could we bring the two together?

[00:40:41] Seth Morales: We do the people part really well. And if we can do the storage, and warehousing, and logistics part, maybe the two could be a really good, uh, blend together." And so we bought that business. We've got three warehouses, a large footprint. We've got some great customers. do a lot of work in the food and beverage, distribution space, and it's been fun learning that business.

[00:41:02] Seth Morales: There's been some bumps along the way. We're just learning to get the right integrator or leader to operate it. That, that's really important. And, you know, trying to find a way, when you have 600,000 square feet of space, you've got rent cost- Ooh ... that you gotta, you gotta- Mm ... cover the nut on that. Yeah. So that's, that's really important, but, um, I'll tell

[00:41:21] Scott Eckart: you- Thank goodness for Costco, right?

[00:41:22] Scott Eckart: You know?

[00:41:22] Seth Morales: Yeah. Yeah, right. I, but I just think, you know, y- you, you put yourself out there, you put yourself in these situations. does it feel warm and fuzzy right now? No. Do we have it down? No. But are we gonna work towards it? Yes. Do we have some great people around us? So it's just one of those things where I think when you Put yourself out there and you take a risk.

[00:41:44] Seth Morales: Um, I think there's, there's more reward and return if you get it right and really work at it. And that's what we're, you know, we're in that process. I think it'll take another couple years- Mm-hmm ... to really kinda get things kinda humming in a really, really fast and smooth. But, um, it's been fun building that out and growing that.

[00:42:01] Seth Morales: And Jackie, I think, with her marketing ability and branding. And, um, we've got a beautiful state-of-the-art facility up in Whitestown. There's 440,000 square feet- Wow ... of just clean space- Yeah, yeah ... where if you wanna, you know, bring your products there, we'd be happy to store them. Yeah. But, um- Yeah ... it's just been fun to kinda learn that side of the business.

[00:42:22] Scott Eckart: Yeah. Mm-hmm. I'd love to tour it. Yeah. Um, and I, what I love about it is the, the vertical integration. Yes. And then the brand covers it, right? Mm-hmm. And so it's like, oh, Morales Group is doing that, so yes- Yeah ... I, I already know them, and- Yeah ... it will be the same excellence that, that moves over, so. Yeah. What would you add to that?

[00:42:37] Jackie Morales: Uh, I would just say, I think, um, we've had this side of the business for 20 years, but now we've added... Just adding that extra 3PL and warehousing side has just given us a, an extra edge. Mm-hmm. And, um, and I'm excited to see the clients that are coming through the doors, and, and the product that we get to be part of, and moving it through the supply chain.

[00:43:04] Jackie Morales: Mm-hmm. It's a whole world of learning for us, and it also makes you appreciate the things that show up on your front door- Yeah ... so much more- Yeah,

[00:43:12] Scott Eckart: yeah ...

[00:43:12] Jackie Morales: when you're part of that supply chain, so, um. And

[00:43:14] Scott Eckart: I think you're gonna be able to collapse time in terms of learning-

[00:43:17] Jackie Morales: Yes ...

[00:43:17] Scott Eckart: from what you've done, right?

[00:43:18] Scott Eckart: Right. It's not gonna take 20 years.

[00:43:19] Jackie Morales: No, it's not.

[00:43:21] Scott Eckart: Yeah. Hopefully not.

[00:43:23] Jackie Morales: Yes. I did have a question for you. Yeah. Uh, why don't you tell me a little bit how you support family businesses and just, just the generational, passing of the wealth and passing of the organization on, and what that looks like for succession planning for families.

[00:43:40] Scott Eckart: Yeah. So thank you for that. Um, you know, we have three big focuses. One is, of course, is just continuity. Yeah. Right? And that's your fire drill.

[00:43:48] Jackie Morales: Okay.

[00:43:48] Scott Eckart: Right? So you get conked in the head and you can't come in, what happens?

[00:43:51] Seth Morales: Yeah.

[00:43:52] Scott Eckart: That is the world I live in.

[00:43:53] Seth Morales: Yeah, it's real.

[00:43:54] Scott Eckart: And I think I was sharing with you that 44-year-old had a stroke-

[00:43:58] Jackie Morales: Yes ...

[00:43:59] Scott Eckart: and couldn't talk, walk or eat.

[00:44:01] Jackie Morales: Yes.

[00:44:01] Scott Eckart: You know? And we were, I was representing the minority owner, who was 65, and his, the, the majority, had his four children. Mm. And they didn't really get along very well. And so we were trying to get documents.

[00:44:14] Scott Eckart: There weren't any.

[00:44:15] Seth Morales: Mm.

[00:44:16] Scott Eckart: There was, there was no plan, right? Wow. So we just really start with continuity and, and, you know, that doesn't really take very long- Mm-hmm ... to figure that out, and we can, we can save the company, you know, literally millions of dollars- Okay ... you know, by doing that. The succession plan is the one that takes, you know, is, is the glide path.

[00:44:32] Scott Eckart: The end. You know, that's the one that, you know, we, we have a little bit more time. And of course exit is the, you know, for sale sign. It's either internal or external. The first thing I do when I come in is I just ask, you know, one question is, how do you normally communicate? Mm-hmm. And easy things like, do you spend Thanksgiving together?

[00:44:52] Seth Morales: Mm.

[00:44:52] Jackie Morales: Yes.

[00:44:53] Scott Eckart: Do you travel together? And I, I measure the level of function or dysfunction.

[00:44:58] Jackie Morales: Mm.

[00:44:58] Scott Eckart: Mm. And I'm not a family therapist. I probably should have been. Yeah. Um, and you would think I, I am sometimes- Yeah ... by the kind of conversations that I have. Sure. And what I do is I just start with a, with a deep dive with matriarch and patriarch or whoever- Okay

[00:45:13] Scott Eckart: those folks are. And they tell me things that, you know, that I, that I need to know.

[00:45:21] Scott Eckart: Mm-hmm.

[00:45:22] Scott Eckart: Um, and so then I've, I put them in other situations where we don't talk about the thing on day one.

[00:45:31] Scott Eckart: Mm.

[00:45:31] Scott Eckart: You just can't do that.

[00:45:32] Scott Eckart: Mm-hmm.

[00:45:32] Scott Eckart: Okay? And then we have other conversations, and I have very specific exercises for how one relates and doesn't relate.

[00:45:41] Scott Eckart: And then I encourage Mom or Dad- Mm to have what we call crucial conversations- Mm-hmm ... about... And I've had dads say, "You know, my son and... My son, I love him, but he's an idiot." "And he will never-" Yeah ... "take over the business."

[00:45:57] Scott Eckart: Mm-hmm.

[00:45:58] Scott Eckart: I said, "Does he know that?" It's real Right? It is real. Yeah. It is, it is real.

[00:46:02] Scott Eckart: It is very real. Yeah, it's unfortunate. And so then you have the attorney or somebody come in and say, "We've all seen it in the movies," and, you know, and I'm gonna name, and the outside person walks in and, you know, and now we have r- ruined relationships for life. Yes. Yeah. Right? That doesn't have to happen.

[00:46:19] Jackie Morales: Mm-hmm.

[00:46:19] Scott Eckart: Mm-hmm. Right? And so if the first time you talk about it no one knows, of course it's gonna be a disaster.

[00:46:25] Jackie Morales: Yeah.

[00:46:26] Scott Eckart: if I don't know-

[00:46:27] Jackie Morales: The dynamics ...

[00:46:28] Scott Eckart: the dynamic, I will never, never go into that. So I have learned the hard way about what not to do.

[00:46:35] Jackie Morales: Mm-hmm.

[00:46:36] Scott Eckart: Right?

[00:46:36] Jackie Morales: Mm-hmm.

[00:46:36] Scott Eckart: And there is almost no situation that we can't get through.

[00:46:39] Scott Eckart: Yeah.

[00:46:40] Scott Eckart: They're all solvable-

[00:46:41] Scott Eckart: Mm-hmm

[00:46:42] Scott Eckart: if we have enough time. Yeah. But the hardest part is when Mom and Dad are here, but they can't speak anymore.

[00:46:48] Scott Eckart: Mm-hmm.

[00:46:49] Scott Eckart: And it happens. We don't, we're not promised tomorrow.

[00:46:52] Jackie Morales: Right.

[00:46:53] Scott Eckart: Yeah. We just aren't. And so just a big shout-out to everybody to say, "Look, just because you've thought it doesn't, and you haven't written it down, we don't know where to go get it."

[00:47:05] Jackie Morales: Yeah.

[00:47:06] Scott Eckart: Because understandings lead to misunderstandings, right? Yeah. Mm-hmm. So you understand one thing, and you understand another, now we have a misunderstanding And I'm supposed to solve it? That's not happening.

[00:47:17] Seth Morales: Yeah.

[00:47:17] Scott Eckart: Right. Yeah. So I don't know if that at all- That's- ... answers it, but- Super

[00:47:22] Jackie Morales: helpful.

[00:47:22] Scott Eckart: Yeah. But there is, there is nothing we can't solve.

[00:47:25] Jackie Morales: Mm-hmm.

[00:47:25] Scott Eckart: Literally nothing we can't solve.

[00:47:27] Seth Morales: That's definitely needed, and, uh, a lot of family-owned businesses and just successions that a lot of people don't get that right.

[00:47:36] Scott Eckart: So a- as we get ready to wrap up, I have one final question for you, and I'd like you both to answer.

[00:47:41] Scott Eckart: Yep. Okay? So what version of you from five years ago would you be most surprised by today? Ladies first.

[00:47:51] Jackie Morales: Oh, no.

[00:47:52] Scott Eckart: That was well played. Yeah.

[00:47:54] Jackie Morales: I feel like you kind of asked me this question last night.

[00:47:58] Scott Eckart: Mm-hmm. Oh.

[00:47:58] Jackie Morales: Yes. Uh, he was in a business forum yesterday, and they said, "What would your 18-year-old self think of you today- Yeah

[00:48:05] Jackie Morales: and where you've come from?" Um, but the version-

[00:48:07] Scott Eckart: So you're 23?

[00:48:08] Jackie Morales: Yeah. Yes. Um,

[00:48:13] Scott Eckart: I think I ... Five years ago, I wasn't sure if it was possible to, um ... It's not possible to have it all, but it's possible to, be involved in multiple lanes.

[00:48:26] Jackie Morales: Mm-hmm. And I think five years ago, I, I wasn't hopeful on that because I wasn't sure could I still be an executive and still be a, a, a good mom- Yeah, yeah ... and still show up at school and, um, I just didn't think the possibility was there. And I'm not saying that it's not ... It's not easy or flawless, but I think today, five years ago, I wouldn't see myself as president and being able to be in some of the rooms that I'm in, and then also, you know, take off that hat and be in, you know, a room parent as well.

[00:48:59] Jackie Morales: Yeah. And I'm pretty proud of being able to, to have that balance and be able to do that. Yeah. And I didn't think it was possible five years ago.

[00:49:06] Scott Eckart: I love that. That is really ... That's beautiful.

[00:49:08] Jackie Morales: Mm-hmm.

[00:49:09] Scott Eckart: Yeah. Seth? A

[00:49:10] Seth Morales: lot of growth there for

[00:49:11] Jackie Morales: you. Yes.

[00:49:12] Seth Morales: I think the thought that comes to my mind five years ago is how much my mindset has changed in a resilient way.

[00:49:21] Seth Morales: You know, five years ago, you know, six years ago, COVID hit, um, I still felt like I knew everything, and I think I was somewhat of an armchair quarterback. And until you sit in the seat, have debt, have debt covenants, you've got hundreds of peoples of lives that you're, you're responsible for, um, there's a pressure that a lot of people can't handle- Mm.

[00:49:46] Seth Morales: True ... and don't, don't sustain that. And I had to really work on my mindset, and it took me time, and, uh, I've grown through that. But being in a leadership role, you just, you, you just get hit, you, you take shots, and you gotta just keep getting on back up. And I think- Seth five years ago, we would get hit and stay down and really, like, go to his corner, pout, take another round or two to, like, get even back on the, into the ring.

[00:50:15] Seth Morales: Yeah. And so for, for me today, I've learned to get better at that. I've got a partner who gets hit all the time and just is resilient and picks me up a lot. But I think that's been the biggest growth for me, is just how I've been resilient with my mindset and learning to kinda reset a little bit quicker when I get hit.

[00:50:37] Seth Morales: That's something that I didn't do well, and now I do that- Yeah ... a little bit better. Mm-hmm. Um, you know, knock on wood, I'm still gonna get hit plenty of times, but- Yeah ... um, I think some of that has to do with my faith. but a lot of it has to do with just, you know, getting those reps and learning to, like, take some shots when you're in the actual seat.

[00:50:55] Scott Eckart: Mm-hmm. And being around great people. Yeah.

[00:50:58] Seth Morales: Yeah. Absolutely. Mm-hmm. Great people- Yeah ... um, help. Lift you. Yeah, yeah. Mm-hmm. Lift you up and... It's interesting. You see these, like, s- these startups that last, you know, five years and then they scale and they sell. Um, I'm more interested in the stay up where you can kind of keep getting up on stage day after day- Yeah ... year after year. Yeah. That's not easy to do, especially when maybe the act hasn't changed, then you got to kind of innovate. And so I'm grateful for that. Mm-hmm. But I'm also, I'm a big fan of companies that have had endurance and, um, continue their legacy.

[00:51:32] Scott Eckart: Yeah. It takes, it takes a special leader such as yourself to- Yeah ... actually

[00:51:35] Seth Morales: make that happen, so. Yeah. Thank you.

[00:51:37] Scott Eckart: And o- one of the favorite parts of my job is getting to sit across from people like you, because I've grown just in this short time, and, um, getting to...

[00:51:47] Scott Eckart: That's why I love being a generalist because- Mm-hmm ... I get to be across from really great people. And thank you for your honesty and your authenticity. Yeah. And this has been s- just such a, a great time. Thank you for your time, which is your only non-renewable resource. Yeah. So you've chosen to spend it here, and I can't thank you enough.

[00:52:06] Scott Eckart: And so it's been such a pleasure to-

[00:52:08] Seth Morales: Thank you ...

[00:52:08] Scott Eckart: spend time with both of you and hear the, the growth of the Morales story and, and, uh, hopefully you'll come back at some point, and I can't wait to hear about all the other cool stuff that's gonna happen in your future. Wonderful. So I wish you both well.

[00:52:22] Scott Eckart: Thank you so much. Thank you. It's been fun.

[00:52:24] Scott Eckart: Head to the show notes of this episode to connect with Seth and Jackie or The Morales Group. And remember, the future is bright. I'll see you next time

[00:52:35] Thank you for listening today. If you like what you've heard, please join us in the Velocity Network and sign up www.velocoaches.com, which is a gathering of entrepreneurs, business owners, and people who desire to learn more about running and owning a business.