A STORY OF A START-UP, MERGER, CORPORATIZATION, IPO, AND PROFESSIONAL MANAGEMENT: PENTA
Last time, one of my partners shared a similar story. Now, I am sharing my interview with our CEO, Mehmet Fatih Erunsal, a professional manager with a career developed within the company. Penta has successfully navigated all the stages mentioned in the title over its decades-long history, transforming it into a corporate digital company today. In this interview with Mr. Erunsal, I aimed to convey his journey and insights. I hope it serves as an inspiration…
1. Reflecting on the concept of “individuality” and “becoming the best version of oneself,” how did your journey to becoming the person you are today begin 30 years ago? What kind of family environment accompanied you along the way? Considering the significance of your decisions, how have these values that make “you” today influenced your perceptions of happiness, trust, and loyalty? How have they ultimately shaped your worldview?
I was raised in a disciplined family that prioritized work above all else, largely influenced by my father’s career as an academician. My ability to adapt quickly to the business environment and thrive under challenging conditions stems from the disciplined upbringing I had. In addition, I learned vital moral values at a young age, such as justice, fairness, mutual respect in relationships, the importance of listening, accepting responsibility, and offering apologies when needed, all through my family’s example. These experiences have significantly shaped who I am and how I view the world. Driven by a desire to be beneficial to myself and, more importantly, those around me, I make it a priority to maintain healthy and meaningful relationships. Today, this same perspective is reflected in Penta Teknoloji, a company that “values” meaningful connections, actively contributes to its community, and upholds its core values in every area of operation.
2. Do you find time during your day to take personalized “short breaks” to support your well-being and find a balance between your work and personal life?
For me, the concept of “well-being” carries two different meanings. My childhood is filled with memories of enjoyable times, but also a period where I never compromised on the discipline of learning. In a way, my professional life was also shaped by this discipline from my childhood. Therefore, I perceive working as a reflection of the struggle for existence. I also recognize that the circumstances you face today play a role in shaping your path. In a fast-paced world where priorities shift rapidly, it’s clear that achieving success requires a significant commitment to your work. However, it’s equally crucial to find a balance between your personal and professional life. I strive to achieve this balance by spending quality time with my family, and ensuring we have healthy and peaceful moments together. So, I would say that every moment I spend with my family is what I consider my “well-being” or a “short break.” I always make an effort to ensure this time is valuable.
3. Handling a packed schedule and making top-priority decisions demands effective time management. What’s your approach to this? For instance, how do you plan out your week?
I believe effective planning is essential for successfully managing work. I organize my time on a weekly, monthly, and quarterly basis. Behind this approach is our position within a large, continuously evolving organization that encompasses our stakeholders, suppliers, customers, and, most importantly, our employees. Given my key role in decision-making, I always focus on staying organized to ensure no issues are left unresolved and to support everyone involved. I also emphasize a few essential priorities. To ensure the company’s core operations run smoothly, identify needs, and maintain alignment within the organization, I dedicate the first day of the week to coordination meetings with the management team. During these meetings, we dive into critical issues on the company’s agenda that relate to our core operations. I set aside Tuesdays for financial planning. Additionally, we hold Management Coordination Meetings with our executive team each quarter to ensure our internal operations are running well. These meetings are an excellent opportunity to align everyone and keep awareness high, ensuring the entire team is moving toward the same goal in the same direction. Moreover, since our company operates in the field of sales and marketing, regularly meeting with our suppliers and customers is critical for us. Staying attuned to the market, addressing the current agenda, and, most importantly, actively listening to our team are key steps that contribute to the strategic growth of our company. Furthermore, any issue related to our employees, regardless of time or place, is always prioritized and addressed immediately.
4. Generating and implementing new ideas is crucial for success. While innovation, creativity, and staying current with trends are important, the real challenge lies in capturing and bringing these ideas to life. How do you create opportunities for this? What is required? What is the upper management’s role in this process? How do you approach this at Penta Teknoloji?
Creativity arises from science, reason, and conscience, but above all, it comes from curiosity and listening. When this curiosity is properly nurtured, it allows everyone to be creative or innovative. In the business landscape, our main responsibility is to spark that curiosity while ensuring transparency. Achieving this requires building a culture that inspires and encourages creativity. It is important to create platforms or channels that allow employees to share their voices and ideas more effectively, foster open communication, and establish flexible environments. But most importantly, providing the freedom to make mistakes and learn from them to benefit the organization is vital. Our focus is not just discussing these ideas; it is about putting them into action. For someone to fully embrace what I have described, they need to experience it firsthand in the right environment. We aim to reflect this through our actions and behaviors, with transparency being a crucial aspect. At Penta Teknoloji, this principle is visible in our open and transparent management and meeting rooms, which encourage free discussions on any topic. In the end, creating an environment that offers continuous learning and development by bringing together people with different perspectives and experiences to facilitate the emergence of various thoughts and ideas, while being curious and transparent throughout this process—these are all key elements that support creativity.
5. Do you believe there is a universal formula for effective leadership? Is leadership a style, or does it encompass various elements? Can you provide insights from your own experience?
Leadership is a way of life, a skill that unites those around you—or those you are progressing with—toward a common goal, inspiring them to act aligned with that vision.
One of the key elements of effective leadership is truly listening to and understanding people, as well as being in tune with their emotions. Without this sensitivity, it becomes challenging to navigate tough situations and make informed decisions, especially during crises. As a result, leadership demands not just proficiency in your role but also the capacity for internal motivation and the ability to influence others positively.
Another key element that enhances a leader’s effectiveness and contributes to achieving better results is the team they assemble. A leader who recognizes their areas for improvement understands where to direct their focus, and anticipates future challenges can effectively shape their organization, establish supporting units, and create a cohesive whole. Additionally, it is crucial for a leader to effectively organize their stakeholders, possess a deep understanding of themselves and their team, support their team’s development appropriately, and inspire employees to reach their full potential. This approach is vital for ensuring the company’s success and sustainability. Properly structuring the organization, acknowledging personal areas for growth, and allowing the team to take the lead are fundamental aspects of leadership. Humility involves stepping back and having confidence in your team. A leader must also possess the flexibility to work alongside your team members at the same level and remain in the background when needed. Ultimately, the most essential component that defines a good leader is their team.
An effective leader consistently anticipates future trends, draws lessons from past experiences, strategically plans for what’s ahead, and routinely evaluates business processes. This mindset entails identifying the factors that hinder people’s daily tasks and introducing innovations to boost organizational efficiency.
I also believe that much of what I have outlined aligns with the COMPASS leadership model developed by Yıldız Holding through comprehensive research. Establishing a clear leadership framework within an organization and emphasizing key priorities significantly contributes to its sustainability and future success. Companies need to transfer their existing successes to future generations. This involves defining how future leaders should be cultivated by focusing on the right discipline and values, establishing the criteria for their evaluation, and aligning training and development plans with these goals. This alignment ensures that the entire organization progresses with shared competencies, culture, and values.
6. The world is undergoing rapid and radical changes, with the technological revolution posing significant challenges to companies. These changes affect not only our professional lives but our personal lives as well. Are current company cultures adequate for balancing work and personal life? How is this balance reflected at Penta? What is the most important value for Penta in this scope? Does the company need to adjust its values? If we view this as a chain, what are the essential links, and how does upper management support them?
The story behind the emergence of Penta Teknoloji’s values is unique compared to many other companies; it has been shaped by our employees’ selection and internalization of these values. At the core of our five key values—human-centeredness, achievement, ethics, inclusivity, and trust—is the principle of “humanity.” By placing people at the center of our efforts and prioritizing human relationships and values, we can adapt swiftly to change, even as technological advancements and emerging trends reshape the future. This approach extends to ensuring our employees’ well-being and satisfaction in their personal lives. We make it a priority to support them, understand their needs, and assist them at every step. Because of this people-focused foundation, I firmly believe our company is built on solid ground. The solid foundation we establish through these values today will ensure our continued strength and sustainability well into the future.
7. Can you share a message that highlights Penta Teknoloji’s vision and mission for both its customers and employees? What does this message stand for and why is it important? Are there any new ideas or upcoming projects for Penta Teknoloji that you haven’t yet revealed?
Penta Teknoloji’s vision is deeply rooted in being reliable, innovative, and human-centric for both our stakeholders and employees. This vision stems from our view of technology as more than just a tool but as a force focused on people, improving and enriching lives. For us, technology signifies a reference to humanity, existing with people, and fostering human development. Our goal is to grow our business by embracing these values, both internally and with our stakeholders, which form the basis of our success.
For sustained success at Penta Teknoloji, I see two key priorities. First, positioning Penta Teknoloji as a leading, value-driven technology distributor in the industry. Since the beginning, I have remained dedicated to this goal, balancing a long-term vision with close attention to day-to-day performance. I have consistently charted our course and shaped the future accordingly.
The second, and most significant focus, is making Penta Teknoloji a company with a strong desire among people to work for it. I firmly believe that employee satisfaction is the cornerstone of success, and I prioritize this in every decision. I make. We have witnessed firsthand how companies that excel in this area achieve significant growth and success.
8. Digital transformation is a journey that boosts competitiveness. But when and where does this journey end, if at all? How does Türkiye differ from the rest of the world in this regard? What benchmarks should be used to assess the success of this transformation? What steps are you taking to ensure meaningful progress in this process?
The business landscape has seen a remarkable transformation due to technology in the past decade. Many once standalone tools have now become integrated into technological devices, making technology not just an addition to our operations but a vital core element. For example, even a minor disruption in internet connectivity can halt all processes. This transformation will not only persist but is likely to accelerate, and companies failing to adapt will find themselves falling behind those capable of leveraging technology more effectively. We have observed numerous global cases where organizations have disappeared from their industries for failing to embrace technology timely and appropriate.
As artificial intelligence applications continue to evolve—a critical phase in this transformation—the need for decision-makers in the business realm to grasp technological details will only grow. So, how are we navigating this shift at Penta Teknoloji? Our primary focus is efficiency; we consistently evaluate our processes and integrate them with the most effective technological solutions, equipping our employees with the right tools to manage these operations. To support this, we have crafted our training programs to help all our teams swiftly adapt to the rapidly changing technological landscape and develop the skills required to be well-prepared for the future. For 2024, we have chosen “Strategy and Future” as the central theme of our training initiatives, since our guiding principle is to first understand and optimize our processes, followed by the adoption of technology and the alignment of our team. Lastly, effective data management is essential, as a company’s capacity to collect, interpret, and navigate its direction based on data will emerge as one of the key challenges to tackle in the future.
9. It is common for CEOs to have backgrounds in engineering or finance. What do you think drives this trend? Do you believe there’s a specific age at which someone is suited to become a CEO? What are your views on age differences in the workplace? How should we prepare younger generations for the upcoming changes? Are there specific considerations older generations should keep in mind when working with younger colleagues? What should both age groups focus on in the medium to long term? What are the most important areas or skills they should invest in for themselves? How is your company preparing its employees for the future?
I believe the relevance of this issue largely depends on the specific area and sector in which a company operates. In certain industries, an engineering background and knowledge of related disciplines may take precedence. However, I have observed a shift in this trend. Access to information has become significantly easier; looking back a decade, gathering information primarily relied on written sources, and it often took time and experimentation to grasp the insights derived from that data. Today, the dissemination of knowledge allows for much quicker conclusions. From this standpoint, numerous tools are now available to acquire essential information and facilitate analysis.
Moreover, especially in recent years, we have seen successful startups and tech companies promoting individuals to high-level positions at a remarkably young age. Regardless of age, being adaptable, agile, and skilled in sourcing information is becoming increasingly crucial, as talent management research indicates that professionals with these traits tend to achieve greater success.
Conversely, I notice that managers or companies struggling to adapt to this change face significant challenges. By utilizing resources effectively, one can often gather superior information compared to seasoned experts in the field, which can enhance success in the business landscape. From this perspective, age becomes less of a determining factor. What truly matters is a person’s understanding of their role, their dedication to unlocking their potential, and how well they fulfill current expectations and job demands.
At Penta Teknoloji, we support this idea through the COPA Awards, which we established three years ago in alignment with our value of inclusivity. Each year, centered around a strategic theme we aim to emphasize, this competition provides our new team members the opportunity to communicate their thoughts to upper management and share ideas that could enhance the company’s growth. This initiative motivates individuals from diverse backgrounds and experiences, irrespective of age, education, or culture, toward our shared objectives while supporting our sustainable success. Through the COPA Awards, we foster critical qualities such as agility, openness to change, information accessibility, and curiosity—critical elements for success in talent management.
10. What benefits do you derive from the Board of Directors? Are there any changes you would make to the Board? How should the performance of the Board of Directors be assessed?
The effectiveness of the Board of Directors has become increasingly evident to me, particularly following our company’s transition to public status. The diligent monitoring of all items on the company’s agenda, the thorough preparation of reports, and the consistent scheduling of committee meetings greatly enhance our operations.
Feedback from these committees allows the Board to act not merely as observers but as engaged participants closely assessing company performance. This approach fosters a more effective implementation of corporate governance. In evaluating board performance, on the other hand, the Board needs to take an active role rather than simply assessing outcomes. At Penta Teknoloji, we have already positioned the Board to focus on this engagement.
11. The significance of artificial intelligence (AI) is well-established, and it’s evident that AI plays a crucial role in simplifying access to accurate information for everyone, let alone its use in the corporate world. In your view, will AI primarily enhance operational efficiency in your business, or do you believe it will also foster creativity and drive new product innovation? How is artificial intelligence integrated into your company, and in which specific areas is it applied? What impact has it had on your operations and efficiency? What are the future directions for its use?
Our current experiences with artificial intelligence (AI) clearly illustrate the challenges of envisioning the future. AI is poised to spark another revolution. Currently, the emphasis of AI is on completing tasks more rapidly and efficiently. I liken AI to a microorganism; it grows as it feeds, meaning the more data we provide, the more it develops and becomes effective. As AI accumulates knowledge, it will start making suggestions on cognitive matters and improving decision-making processes.
Therefore, we shouldn’t restrict AI to merely enhancing efficiency or product development; we also need to define its role throughout the company. Since AI will inevitably replace certain jobs, it will fundamentally alter or affect the company’s business model and organizational structure. In this regard, it is essential for upper management to take an active role in AI initiatives and to engage in the decision-making process with a strategic and comprehensive perspective.
At Penta Teknoloji, we are currently focused on interpreting, organizing, and accurately transferring data that is prone to errors and requires constant repetition. Additionally, we have initiated the development of forecasting models by incorporating this into our sales processes. These initiatives aim to improve efficiency by fully integrating AI into all internal operations and providing stronger support for strategic decision-making.
12. If you could offer three pieces of advice that your listeners could immediately implement to become an effective leader and a valuable employee, what would they be?
To be a good employee, I believe there are several key factors. First and foremost, one must appreciate their work and the colleagues they collaborate with, as engaging in what you love alongside an enjoyable team enhances motivation and fosters personal and professional growth over time. Secondly, continuous self-improvement, staying updated, and maintaining enthusiasm are essential. It is important to engage in an inspiring and innovative industry, backed by effective management and adherence to corporate governance principles. Lastly, aligning with a company’s values is crucial. If the culture and values of your company significantly diverge from your own, the ongoing effort to adapt and align with that culture will likely lead to dissatisfaction, ultimately positioning you in a role you do not enjoy and increasing the risk of long-term failure. You need to distance yourself today from a job that is holding you back.
When it comes to becoming an effective leader, the first step is to actively listen, foster good communication, and engage those around you. A clear understanding of the entire organization and always being receptive to external developments is key to uncovering a compelling vision. My second piece of advice is to formulate strategies based on your knowledge and have a clear direction for the business. Familiarity with organizational dynamics, industry trends, and forward-thinking planning are critical for success. However, achieving success involves more than just these elements; a leader must also cultivate intrinsic motivation within their team, inspire excitement, and engage in self-reflection to guide the organization toward success. An indispensable characteristic of a good leader is the ability to act like a conductor, harmonizing the efforts of all stakeholders, igniting passion, and presenting a vision that inspires others to follow.
13. Penta Teknoloji has recently been subjected to high inflation. Efforts are now being made to address this. What are your expectations? How will the market outlook change? How did the transition occur in previous high inflationary periods in Türkiye (e.g., in the 1990s)? What is your advice? What measures are taken at Penta Teknoloji?
Countries and companies consistently encounter various issues and challenges to navigate. Currently, we find ourselves in an inflationary environment; however, this is a temporary situation, and new issues will inevitably arise in the future. Given this context, the foremost priority for companies must be agility, enabling them to adapt to whatever challenges or topics emerge. Businesses need to be strategically positioned to respond swiftly and effectively to the changing landscape.
So, how are we ensuring this agility at Penta Teknoloji? First, we maintain strict control over expenses and prioritize them effectively. This directly relates to optimizing inventory management and the use of net working capital. Properly managing these processes is vital in times of rising costs and market price distortions. Furthermore, we aim to minimize reliance on external resources while maximizing the efficiency of our internal resources as part of our strategy during this period. Careful management of financial instruments contributes to sustaining and reinforcing the company’s financial structure amid uncertainty. These measures collectively enhance Penta Teknoloji’s resilience to current challenges and equip us for future uncertainties. Our recent financial results demonstrate the successful management of our company.
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