2025 could be a great time for federal systems integrators like Tyto Athene.
The Herndon, Virginia-based provider of IT solutions for the U.S. military and other government agencies could benefit greatly from the launch of President Donald Trump's unofficial Department of Government Efficiency.
According to an executive order issued this week, DOGE is ready to reduce federal spending and modernize “federal technology and software to maximize government efficiency and productivity.” But as Tito Athenes' chief financial officer Rick Johnson knows all too well, government spending priorities can change quickly.
Tait Athens aims to remain nimble amid the uncertainty, with three acquisitions expected in 2024. The acquisition integration process is critical to Johnson as he seeks to build a culture of transparency and unite employees around a common mission. He spoke with our Katie Kuehner-Hebert about AI, merger integration priorities, and the importance of employee perspectives when integrating organizations.
What market and technology trends are you looking forward to in 2025?
The federal technology industry is tracking how budget priorities may change in 2025 and what will happen when the continuing resolutions that fund federal government operations end on March 14. We'll have to see if it happens. This plays a role in proposal work, existing contracts, and planning timing. Agency Award Notification. All of this impacts our planned growth and expansion. Regardless of the outcome, we must remain agile and support our customers and future business as needed.
AI remains at the top of the agenda in 2025, especially data mining for new business opportunities. AI can also provide solutions for back-office activities such as invoicing and payment processes. As a technology company, we want to deploy emerging technologies like AI to help our teams work smarter and faster. At the same time, you want your employees to be firmly embedded in the process and provide essential human touch and oversight, especially when: [the application] Includes customer experience.
How important is investment in innovation to advancing Tyto Athene's financial strategy and business growth?
The level of investment in research and development may be the most important decision for a growing technology company. Executives must proactively position their organizations to meet the changing technology needs of government customers. If companies like ours cannot differentiate and offer unique capabilities, we will not be able to build the trust needed to win more significant opportunities and new business.
Tyto Athene acquired several companies in 2024. How do you manage the integration process?
My motto is “minimize friction”. The administrative burden felt by employees after an acquisition or adjustment to a large company should be minimized. We want to take the stress out of the process and ultimately allow all employees to feel at home under one Tyto Athene. Maintaining harmony through business change deepens employee trust in leadership.
We always think about the acquisition integration process from an employee perspective. We have no blind spots. Recognizing this perspective is key to providing a consistent message through clear communication about (1) company actions and (2) next steps in the integration process. More importantly, leaders follow through on their communications and commitments with current and new teammates.
As a CFO, how can you help create a strong company culture that supports financial growth and employee well-being?
In my experience, HR leaders have reported directly to the CFO team, so they are used to wearing the “HR hat” and “CFO hat” at the same time. Working in human resources has helped me understand why human resources are an organization's greatest asset. Even organizations that are leaders in technology are driven by the heartbeat and strength of their team members.
We demonstrate our commitment to and invest in our teams by leveraging employee feedback on benefits packages, paid time off needs, and hybrid work approaches to understand their priorities. This information gives our CFO team insight into where to invest to effectively strengthen our employee base.
In light of Tyto Athene's M&A activity in 2024, we will continue to intensify our efforts to harmonize employee benefits and improve the employee experience across the organization, ensuring all these moving parts are properly aligned. and unite the Tyto Athene team around one mission.
