EP 120: Evan Goldberg (Founder and EVP, Oracle NetSuite) on 26 Years of Operating Lessons Running NetSuite

In this episode of The Logan Bartlett Show, Evan Goldberg, co-founder of NetSuite, shares insights from his 26-year journey leading the company, which was acquired by Oracle for nearly $10 billion in 2016. He discusses lessons learned from industry leaders like Larry Ellison and Mark Benioff, emphasizing resilience during crises. Challenging times often prompt significant improvements within a company, forcing introspection and innovation. During the 2008 financial crisis, NetSuite deepened its partnership with existing customers and established an account management organization dedicated to customer care.

Goldberg recounts the origins of NetSuite, initially founded as NetLedger in 1998, and his transition from Oracle to entrepreneurship. He recognized a market gap for comprehensive business software to help small companies manage operations effectively. This vision, shared with Larry Ellison, led to the development of a suite of products addressing the needs of small businesses. As NetSuite evolved, it catered to larger companies and expanded its feature set, driven by the demand for anytime, anywhere access to business information.

Goldberg discusses NetSuite's diverse customer base, which extends beyond software companies to various industries, and the importance of public relations in attracting customers. He reflects on his evolving role within the company, highlighting the need for leaders to recognize their strengths and weaknesses and empower others. Feature development at NetSuite has always been customer-driven, balancing input from major clients with feedback from smaller customers. He advocates for a consensual leadership style, fostering long-term employee loyalty.

Goldberg draws parallels between the internet boom and the current AI revolution, noting that AI fundamentally changes how business systems operate. He emphasizes the importance of training and internal communication about successful AI applications to embed an AI-focused culture within the organization. The integration of large language models (LLMs) into NetSuite enhances user experience, allowing customers to customize functionality to suit their specific needs.

He reflects on early decisions that shaped NetSuite, emphasizing the importance of focusing on extensibility rather than trying to cater to every customer demand. This strategic choice allowed NetSuite to maintain its core offerings while enabling partners to build tailored solutions. Goldberg acknowledges the challenges of balancing profitability and growth, crediting Larry Ellison's vision and support as a stabilizing force during turbulent times.

On leadership, Goldberg emphasizes surrounding oneself with knowledgeable individuals and being open to learning from them. He highlights the importance of empathy in management, cultivated through active listening and one-on-one conversations with his team. He acknowledges the difficulties of personnel changes during hyper-growth phases and advises addressing performance issues sooner rather than later.

Goldberg discusses NetSuite's commitment to creating user-friendly enterprise software, contrasting it with Oracle's previous approach. He reflects on the importance of maintaining focus on a company's core mission amidst distractions and advises entrepreneurs to remain vigilant against potential derailments.

He emphasizes the significance of company culture, which should be established by leadership but can become diluted as a company grows. Effective communication and a clear vision are essential to ensure that the culture remains intact. Initially, NetSuite's culture was shaped by low-key intensity and humor, which has persisted even after its acquisition by Oracle.

Goldberg finds fulfillment in merging technology with business problem-solving and stays engaged in design and current trends, particularly in AI. He advises aspiring founders to recognize their strengths and weaknesses, emphasizing the importance of passion and empathy for customers. He also shares his involvement with the V Foundation for Cancer Research, inspired by personal experiences with cancer.

Reflecting on lessons learned from peers like Mark Benioff, Goldberg highlights the value of narrative and vision in driving success. He emphasizes the importance of identifying and excelling in a core differentiator, advising businesses to stay significantly ahead of the competition in their unique offerings.