Innovation in Compliance with Tom Fox Risk Mitigation and Corporate Discipline Baked into Culture with Cody Rodriguez
Tom Fox welcomes Cody Rodriguez to this week’s episode of Innovation In Compliance. Cody is CEO of Iron Orchard, a small private oil and gas operator that continues to thrive even in the midst of a shutdown of the energy sector due to COVID-19. He and Tom discuss his company’s risk management approach and how it informs their corporate culture.
Determining Commercial Viability
Tom asks Cody how they determined that Iron Orchard was a commercially viable idea. Cody responds that they had about 100 meetings with CEOs and investors, seeking their advice before deciding to go ahead and launch Iron Orchard. Even then, they decided to use their own funds for the first investments. “We want to make sure, just like in everything else we've ever done, that we did it ourselves and risked our own dollars before we ever risk anybody else's,” Cody explains. He describes how taking this approach led to increasing success as the company grew. People were willing to help them because of their humble approach. Cody says, “If you're willing to tell them how you think you could be better and how you think you could improve from their advice, people are generally very willing and open.” Tom adds that humility is an incredible leadership skill.
Corporate Discipline and Culture
Tom comments that physical and financial discipline is a strategy that is embedded in Iron Orchard’s culture. “One of the biggest things that I learned was risk mitigation and capital discipline,” Cody responds. “For us, it's never doing something that we can't stand the risk of losing everything we just did. And if everything goes [wrong]... can we sustain ourselves?” He explains that every decision is made through collaboration and teamwork. These corporate values of discipline and collaboration are responsible for their survival and growth even in the midst of the pandemic. “If the assets can't - even at the worst of times - support the team, then the team needs either to work a little harder, a little smarter to make sure that we can manage even through the most difficult times,” Cody says.
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