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An Interview with Rodney Hunt, Chairman and CEO, RS Information Systems
December 12, 2005
Hunt, 44, co-founded RSIS 13 years ago. Today it's a $365 million, 1800-employee IT contractor based in McLean. As one of four boys in a military family, Hunt lived in the Philippines, France and Hawaii and finally landed in Prince Georges County when he was 15. He stayed in the Washington area after completing a dual degree program at Cornell University and George Washington University. Aside from running RSIS, Hunt is part of a group being considered to buy the Washington Nationals.
Bisnow on Business: So your dad was a military guy and not
in business?
Yes, my father was an enlisted military guy
in the Air Force. He played baseball in the Negro Leagues growing
up. He had an opportunity
to try out for a team in the major leagues but wasn't successful.
He realized that he was making a lot less money than his white counterparts,
so he lied about his age and enlisted in the service when he was
17.
What about your mom?
My mother had an 8th grade education
and was one of the smartest, hardest working people. She just had
a lot of moxie, common sense
and street smarts. She basically did all the things she could do
to raise us, from menial labor to finally working in the Senate
documents room as the lead administrator for several senators
and congressmen
on Capitol Hill.
What were your interests growing up?
I was very interested
in baseball partly because my dad was. Like with everything else,
you try to find your own identity. I was
also very interested in business. My mother tells this story
about coming
home one day from work when I was 9 and there were all these
boxes of seeds for plants for Christmas cards and I was selling
them
throughout the neighborhood. And she wondered why any company
would send a 9-year-old
all this stuff. I also wanted to be an engineer and an astronaut.
Did
anybody tell you what an entrepreneur was when you were younger?
No,
not really. My grandfather was very bright. He had gone to a historically black
college. He had a set of old engineering
books
that he gave to me when I was 7. The books had been written by
some African American engineers and physicists but had never
been published
to the general public. I was really impressed by how well they
were written. I can remember sitting on his lap and begging him
to let
me have them. That gave me the engineering bug. I think the entrepreneurship
side is instinctive. When I was 14, I had decided that waiting
in line for that $1.50 or whatever we would get for allowance
back then
didn't seem enough and I wanted to help my parents out. So I
started a business called Hunt's General Services. It was basically
lawn
cutting and raking leaves and things like that. Within a month
I had 17 accounts and I couldn't do all that work so I put a
flyer up in my high school to see if anybody was interested in
getting
$10 per grass. The next month I had 45 or 50 accounts and I never
cut another blade of grass. I made more money than I'd ever dreamed
of by the time I was 17 years old.
What did a 17-year-old do with that kind
of money?
I got an engineering scholarship so my education was paid
for. My parents made sure I lived exactly like my brothers so every
dime
that I made in profit I had to put in the bank. So my idea of
having a little extra money didn't really pan out. I was able
to save
some. I bought my parents a house and a car. I bought my first
house with
it. I put some money aside for future investments. It was like
having 401(k) money taken out of your paycheck.
Are there certain
attributes in sports that are useful in business?
I always played
baseball and basketball growing up. I played in high school and college.
I was drafted to play baseball and
played
minor
league baseball before I tore a rotator cuff. In business what
I learned from sports was discipline, dedication and commitment.
Discipline
in yourself to be the best you can be by putting in the work
necessary to be successful. Dedication to the game and the love
of the game
and commitment to the teammates and a drive for excellence. And
just the camaraderie. The thing I miss most about playing ball
today is
just the guys and the belief that this group of rag tag guys
could go on and win a championship or do the impossible.
After you finished your education, what did you do?
I
went into minor league baseball and ended up playing for two and
a half years before I pitched too many innings. Growing up I was
one of those kids who was a very good student who happened to be
a decent athlete. I had to work really hard to be a very good athlete,
whereas for my older brother, it came naturally to him. Academics
came naturally to me. In the off-seasons I would always co-op.
I did a co-op internship with IBM, knowing that there would be
life after sports. When I retired from baseball, I went to work
for a really small company but my biggest career move was in 1984
when I went to work for Booz Allen & Hamilton. I was able to
come in as an entry-level consultant and move my way up to senior
associate within about three years. That was a real fork in the
road. I had done really well and was pretty young and making six
figures and I thought I had the bull by the horns and discovered
that I was too valuable to let go to another practice. My boss
was in his late 30s and his boss was in his mid 40s so I was stuck.
I spent a lot of time working with them, learning about business
management, contract management and operations. I supported the
battle force information systems practice. But I was very frustrated
because at that time Booz Allen was strictly a management consulting
firm. We did a bunch of great studies but then we would just leave
them as paper weights for our clients and say good luck with the
implementation. As an engineer you want to see your ideas come
to fruition. I decided I wanted to steer my own ship. I left Booz
and went to work for a minority-owned company called ISN Corp.,
in Bethesda to learn the ropes about marketing, business development
and the SBA's 8(a) program. That's where I met my partner Scott
Amey. In 1992, we said let's give this thing a try.
Did you finance
the company with your own money or did you have investors?
We each
had $5,000. We said let's put this to work for us. A friend of ours
who owned a small business in Falls Church sublet us some
office space for $450 a month. We just did it on our own. I'm really
proud of the fact that all of our work has been grown organically.
Did
you have anyone mentor you in the beginning or did you have to
seek people out?
We pretty much had to seek people out. We were
on untested ground. I'd never run a company before except for a lawn-cutting
business
when I was a kid. We never thought of ourselves as business owners.
I was strong in marketing and business development and a somewhat
affable customer relations guy. Scott was the best operations guy
that I knew. So our motto was, "Rodney, you scare up the bears
and I'll skin 'em." We thought of ourselves just as employees.
It wasn't until we got to be about $12 million in 1997 that I started
seeking out advice. I started thinking, "Wow, I'm actually running
a $12 million enterprise." I started seeking advice from colleagues
I knew who had run large businesses. People at Booz, SAIC and Lockheed
Martin. And even people at smaller businesses and 8(a) graduates.
Was
the government helpful in letting you know about opportunities
for minorities?
The SBA 8(a) program is a very good program and I
believe in it 100 percent. But the SBA doesn't have any money. So
people think
when
they get their 8(a) certification that all this work is going to
come their way. It's all about self marketing and having a vision
and business approach that sets you apart, understanding performance-based
contracting and then being able to convince the customer to give
you an opportunity. Our approach was to say to our prospective
customers: This is what we do. We believe our approach is unique
and comprehensive
and offers the best of management consulting and infusion of technology
into your business process. And it's not agency-specific and not
competency-specific. So if you select us, you're going to get well-rounded support and sustainable return-on-investment. And here
is our small track record, back then anyway, of successes. If you
select
us and if the way to get to us is because we're an 8(a) company,
well that's fine, but don't choose us because we're an 8(a) company.
That's really a different approach than what many small businesses
or 8(a) companies take. I don't know how many approach me now and
say, "I want to be your protégé. Can you roll
over all of your expiring 8(a) business to me and I'll be the prime
and you be the sub."
If you could re-write the rules of these programs
for minorities, what would you like to see?
I'd like to see there
be a shorter window in the 8(a) program. It's a nine-year program
and the first five years are developmental.
I
agree with that. But to get into the program, companies should
have to identify a piece of business. The other thing I would do
is, you
have the developmental period and then the exit program where you
have to learn how to live on your own outside of the program. So
each year you had to have a percentage of your business be non
8(a). That's a great thing too because it weans you off the bottle.
But
then at the end of the nine years you're dropped off the face of
the earth. You become a big fish in a pond for the last four years
of the program and then after that you're a minnow in a large ocean
competing against the Northrop Grummans and Lockheed Martins of
the world. I would add a mid-tier set aside program.
What is your reaction
when people give you awards for being a successful African American
entrepreneur?
I'm torn. I'm flattered because it's important to
recognize African Americans. But in the end I want to be recognized
as a good business
leader, period. What we've done with RS Information Systems is
incredible to say the least and probably unprecedented in the industry
whether
we're a minority or not. A lot of people will look and say, "You
had set aside programs to help build the foundation." That's
not necessarily true. We graduated from this program with only
30 percent of our business being 8(a). This is a company that won
a
$450 million award with the Department of Energy competing against
the largest of the large systems integrators. We won $130 million
DARPA award beating out the likes of SAIC and EDS. Hopefully my
colleagues out there recognize me as an outstanding business leader
regardless
of the color of my skin.
Who are your mentors today?
I have a very good friend
named Jimmie Lee Solomon. He is the executive vice president for
operations of Major League Baseball. He's a
great mentor in that he has an unbiased view of the world. Bob
Johnson
is a huge mentor for me. I wish I could spend more time with him.
He's one of the great hallmarks of success from BET all the way
through to now RLJ Holdings and owner of the Charlotte Bobcats.
I still think
of my folks as mentors. When we started the business full time
in 1993, my wife at the time - we had been married three years
- was
killed by a drunk driver. My son was 14-months-old. My mom and
dad were right there for me. My mom retired and said, "I'm
not going to raise your son but I will help you out. So when
you get that call
that he has a 100 degree temperature in daycare, I don't care if
you're meeting with President Clinton, you need to get there." In
life, a family support system is important for any successful businessman.
For me it was critical. Now I have a beautiful 13-year-old son
who's already 6 feet tall and wears a size 14 shoe and plays basketball.
I can't quite get him to play baseball but he's a great student,
gets As and Bs. I became mom and dad. I used to get all the Mother's Day
cards. If there's a silver lining in this, it helped me to
become
more of a man that understands that life isn't easy and the trials
and tribulations of single parents, especially single mothers,
are difficult. So our company benefits are very structured to focus
on
making sure the family members of our employees have everything
they need.
Do you pinch himself now when you realize how far you've
come?
When I started this company I never envisioned that we would
have the kind of success that we enjoy today. I wake up everyday
and
I don't think of myself as president, chairman and CEO of RSIS.
I think
of myself as an employee and I have a job. It really is an enterprise
that I'm fortunate enough to be head of.
