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Welcome to Portfolio Perspective: Managing Risk & Seizing Opportunity, a podcast focused on the asset-based lending industry. Join Andrew Pace, Chief Client Experience Officer at Asset Compliant Solutions, as he interviews experts, shares insights, and explores strategies for managing risk, optimizing portfolio performance, and seizing opportunities in an ever-evolving financial landscape. From regulatory changes to technological advances, each episode provides actionable takeaways and deep dives into industry trends. Whether you’re a lender, servicer, or recovery expert, this podcast offers valuable perspectives to enhance your approach and improve outcomes.
I think the modern CFO is akin to like a Swiss Army knife.
You can't be an expert in everything, but you have to be an expert in a few things, three
or four or five.
You know obviously you have to be an expert in the accounting, finance, and tax.
And then, you know, you need to develop working knowledge in kind of all the other aspects
of your business.
Welcome back to ACS Portfolio Perspective.
I'm your host, Andrew Pace, Chief Client Experience Officer at ACS, joined today by Karin
Jernigan.
He's the Executive Vice President and Chief Financial Officer at LAI Fleet, a national
vehicle leasing and fleet management company headquartered in Houston, Texas.
He has more than 20 years of experience in finance, accounting, operations, and business
leadership with a career that spans both public and private companies.
At LAI Fleet,
Kareem leads a broad set of functions, including finance, accounting, tax, credit,
remarketing, insurance, human resources, and compliance.
He is also helping lead the company through a major transformation as LAI Fleet modernizes
its operating platform, replaces legacy systems, and builds the infrastructure needed to
support long term growth.
Kareem is a certified public accountant, licensed in Texas, holds an MBA from the
University of Houston.
And brings deep experience in technical accounting, financial modeling, portfolio
management, process improvement, and strategic execution.
Before his business career, Kareem served in the United States Marine Corps, an experience
that continues to shape his approach to leadership, discipline, accountability, and
continuous improvement.
Outside of work, Kareem is a husband, father, entrepreneur, and lifelong learner.
He enjoys strength training, golf, and studying the connection between personal
discipline.
leadership and business performance.
Kareem, welcome to the show.
Thank you, Andrew.
I appreciate the the warm introduction.
Anytime.
And thank you for your service.
Um that that's that's unbelievable that you you you did that for for for us.
I appreciate that.
Let's start with something many of our listeners are navigating right now, balancing
modernization with identity.
Uh you guys you you talked we we talked about um
before the show, mod your your legacy platform, um transitioning uh without losing your
identity.
Let's talk about what drives the decision to replace, you know, 40 years of platform and
how you think about de-risking a transition that to of that magnitude.
So LEI Fleet, formerly known as Leasing Associates Inc., we've been in business since
nineteen fifty eight.
we currently have eleven offices across six states.
Tens of thousands of vehicles on the road.
And so so when an organization has been around as long as we have, um, every so often you
have to re-in the organization has to remake itself, reinvent itself.
And so we've been operating very effectively on a legacy system, green screens, zombie
terminals.
Um, and so what happens is entities will start to incur what I call what's called
technical debt.
And we
previously didn't make the investment in this legacy system.
And so what happens is is that you get so far behind from a technology standpoint that it
just gets too hard to to continue to modernize the system.
And so so what what happens is is that um the longer we the each year the the cost to
maintain the system and the risk to maintain the system gets higher because the number of
people who can
um code in this, you know, in this legacy system, they they cease to exist.
We all, you know, it's the cycle of life.
You saw the Lion King.
And so um just the number of people it's like it's like Latin, right?
Kids are coming out of school, they're learning different languages, they're learning
computer programming languages.
They're learning different languages, but they're not learning this this kind of old
technology language.
And so it works.
It works very, very effectively.
um It's pretty efficient.
Um, and it's a f it's a full end-to-end system, something that doesn't truly exist in
equipment finance.
And so when you think about the software that's running the equipment finance industry,
most of the independents are on a will have a CRM on the front end, right?
That they're doing their prospecting, their quoting and maybe their documents in, and then
they'll have a lease and loan origination system.
Um
And then they'll have an accounting system.
And then we're a fleet manager.
So then a fleet management system.
And so we went out and we looked at we looked at the marketplace and we looked at all the
solutions.
And there are a lot of great solutions out there.
And we've looked at all of them.
But we're kind of we're kind of a tweener um in the equipment finance space.
So we we provide the lease, which is that.
That financial instrument, but we're also a fleet manager as well.
And so when you think about the different asset classes out there, the vehicle is one of
the harder asset classes to to manage from a back office perspective because you're
dealing with so many government agencies.
So long story short, we looked at everything in the marketplace and there was nothing that
quite fit what our business.
And so we had a homegrown system that's
Full end-to-end.
And when I say end-to-end, it we prospect from this legacy system.
We quote in this legacy system.
Uh, we originate contracts in the legacy system, it bills, we do securitizations in this
legacy system, it does our accounting, it does our finance and reporting, it does our
taxes.
In this legacy system, we've had one for 40 years, right?
And so, so that's kind of how we got to this point.
And so it's definitely
It's quite the task.
It's like, you know, like we mentioned before we got started, it's like remodeling a house
while you live in it, right?
And taking it down to the studs.
And so, you know, it's it's been a tall order and we're we'll be going lock pretty soon
here.
And so I'll be I'll be happy to kind of get this thing behind me.
I bet.
So how do you approach reverse engineering and removing bottlenecks from core pro
processes like month end close, audits, reconciliations, and what like tangible impact
does that have on your customers?
So, you know, I software, right?
Like, at our core, we're a customer service business, right?
Um, and we we are managing our customers' fleet from cradle to grave, basically.
So we will factory order the vehicle from from Ford or GM or whatever the customer's
driving.
We deliver that vehicle to their doorstep anywhere in the country.
Um, we have a license and title department.
So we're managing license title and registration over life of the vehicle.
We are we we have a maintenance management department.
So we're managing maintenance uh for that vehicle for the life of the vehicle.
And then when it comes time to rinse and replete, you know, the life of a medium light
duty truck or van is, you know, anywhere from 48 to 60 months, about a hundred thousand to
a hundred and twenty thousand miles.
So we we're even doing the remarketing,
as well.
And so when you think about the demop d the the bottlenecks associated with it, right now
we have really strong and deep processes, right?
But a lot of paper processes.
And so um so one of the things that we'll be able to do, you know, on day zero when we go
live is we'll be able to originate a a a new lease with zero paper.
Right.
Which is for us, like if you think about the, you know,
uh we will never get paperless, at least, you know, until kind of like government agencies
change, but but um over the life of a vehicle, there are like 15 pieces of paper that you
actually have to have.
Right.
And so in the origination process or or in the termination process, you have to have a you
have to have a oddometer statement depending on the state.
You have to have sometimes a power of attorney depending on the state.
You're gonna have a a uh a title
Right.
And some other documents that you have to have.
And so, you know, we've looked at all our processes.
And so what this is gonna do, it's not gonna change who we are.
This will allow us to become more of who we are.
And so it's gonna free us up from a lot of the paper and a lot of the manual things that
we're currently doing and allow us to focus more on our customer.
And so we're we're super excited about um the opportunity to spend less time pushing paper
and
recalculating things and spending more time focusing on how we can better serve our
customers.
So it's pretty exciting.
That's awesome.
And and I guess the a good segue to the next question, talking about uh servicing your
customer through all that change, how do you preserve what made the business successful to
begin with, keeping your customer, that customer first mindset intact while evolving how
service is delivered?
That's a great question.
I'm considered I'm considered a newbie at LAI Fleet, right?
And when I say newbie, I only have six years in.
I just hit the six year mark.
And this year we have two employees that celebrated 50 years of employment.
Wow.
Like that's unheard of.
There's there's no one, there's there's no company in our space who can say that, right?
Um, and so our president, his name is Mark Sprague.
Mark Sprague this year celebrates 38 years of of of of employment.
And if you go down the offices in our in our corporate office in Houston and even some of
our account executives, we've got a number of folks who are in the twenty to twenty to
thirty year mark.
And so how you preserve the culture and the process and the customer service is it's a um
designing a system or replace a leg to replace a legacy system, it's a collaborative
effort.
Right.
And so, you know, our the when you're going through a process like this, um
There's a tendency for the the team to kind of want this solution to work like the old
solution.
Um, because that's what's familiar to them.
And and long story short, when you transition from a legacy system to a new system, the
new system is doing the same thing as the legacy system.
It's just doing it in a much more efficient manner.
Right.
And so so, you know, we have our
We have these kind of physical processes that now we've taken and we've digitalized.
And so that's kind of how you preserve what makes LAI special, what makes us unique,
what's allows us to be in business at this point sixty-eight years.
Um, and so that's how you do that is it's the collaboration between the team and and the
the functional department leaders, um, and then the folks on the ground actually doing the
work.
And so, um
You know, we've worked very closely with all the teams and so I've been more or less like
the architect.
Like if you think about building a home, you have homeowners, you have a a husband and
wife who are have this vision of of of what they want this house to be.
And then the homeowners are working with an architect to design this house, right?
And what the architect is doing is making sure that that house is gonna meet code.
Right?
And the code is the requ you know, in this case is is is
meeting our bank requirements.
It's meeting our customer needs.
It's meeting the regulatory requirements that we have.
It's paying vendors and collecting money from the customers and being able to execute a
securitization.
And so so I think that's how we've we've um we've accomplished the task.
And we've been going through training over the last like ninety days with the team.
And and as you go through that training, it's pretty cool because you get to see where
where you hit the mark, where you hit the mark or where you were just off.
And so
know, it's it's been um it's been a bit pretty cool process.
Thank you for sharing.
So let's uh move on to our next topic.
Um, you know, we you that kind of trans transformation doesn't always happen in a vacuum.
It's powered by, you know, people as you you talked about uh the tenure of of of the you
know, executive president and and some of the staff there.
Fifty years, it's amazing.
I mean, we're we thought we were in the business for a long time.
We're approaching thirty and you guys are
approaching sixty years when we're gonna be hitting seventy, excuse me.
You're approaching seventy when we're gonna be hitting we'll be hitting, you know, thirty
years in the bit in the industry in a couple of years.
let's talk about leading change across a long tenured workforce.
You stepped in, um, you know, you mentioned you're there six years, you feel like a baby.
Um, so you stepped in as an external executive into a a relationship driven organization.
How did you earn credibility uh early on?
It was tough actually because I came in during COVID.
Right.
And um a little a little bit of background.
LAI Fleet was my very first audit client when I graduated college.
So I graduated college in two thousand three.
and um and I went to work for a public accounting firm called Grant Thornton, which is
like the fifth largest firm in the world.
And LAI Fleet was my very first customer, my very first audit that I did.
And I was working on a um a private placement.
We were one of the first uh companies to do private placements.
And so um, you know, well over twenty years ago.
Wow.
And um, and so I was doing an agreed upon procedure and and then ultimately I I I worked
on the audit as well.
And so I did the audit for almost six years.
And so Mark Sprague, who was uh maybe the treasurer at the time.
I I've known him my I've known my boss my whole working career.
And so it's been pretty cool that um that, you know, I did a a good job as a, you know,
someone early in their career that it stuck out to him.
And so we we'd maintain a relationship.
And so um I came on in July first of twenty twenty.
So you can remember what the world was like.
Yeah.
So I knew I knew most of the folks.
um I knew a lot of the folks at corporate.
And so it was like we had dated previously, right?
And so, um, but a lot of the sales folks I didn't I didn't know because, you know, we you
know, we've got sales offices all, you know, eleven offices across six states.
And so other than the sales folks that were here in Houston, I didn't have a chance to
meet them.
And so I come into this organization where I think the average tenure of the employee when
I came in was like twenty four years.
That's incredible.
It is incredible.
It's c it's changed, right?
We we've got a lot of folks who've retired.
Um we've got a lot of folks who've retired over the last few years.
And so so, you know, I I get to have a hand in kind of, you know, maintaining this culture
and bringing folks in.
And so and so uh and I had never really in my career worked with salespeople.
So prior to coming on at LEI Fleet, um, I was in heavy in oil and gas and energy.
And so I had to work with engineers, right?
And engineers are very logical people, right?
Like the numbers tell the story, right?
Well, well, you deal with salespeople and you know, it's like touchy feely.
And so um there was definitely some friction early on and and so um so I had to adjust,
right?
I had to learn how to work with salespeople.
And so um it was challenging, but you know, I I learned and so
You know, I never work with people who's, you know, who were being paid by commission.
And so so that's a much different thing, right?
And so, uh, but it it it was it took some time.
And so really how you develop your credibility is you develop credibility by executing
over time.
And so really I had to go to work, right?
And going to work and and helping, you know, one of the things I've I did was I built a
really strong team.
And so I got to hire some folks that I I worked with previously.
And then we just went to work at improving their lives.
Right.
And so everything that my team we had gotten our hands on, we made more efficient.
Right.
And so one of the best ways to earn credibility is to, you know, the number one way is to
do what you say you're gonna do when you say you're gonna do it, right?
And two is to provide an amazing service.
And then I would say three is I made their lives easier, right?
not me by myself, but collectively in our our accounting and finance office.
We we we took the processes that were were maybe not out that some were outdated, still
working but outdated.
And we we modernized it.
And they were you know, our account executives now are spending less time pushing paper
and spending more time out selling and then um and taking care of their customers.
So that's that's how that's how I did it.
I think that's a a pretty good recipe for, you know, developing those relationships.
But there was al there's always friction too, so a hundred percent.
Yeah.
I mean, you get that tension between, you know, that deep institutional knowledge, right?
And then uh, you know, you you drop a uh system conversion or a a whole new system, you
know, and the need for change, right?
you've said before, uh I know we've you know, we've we've we've spent some time together
and and I've heard you use this uh phrase often.
Show me the incentive and I'll show you the outcome.
How have you aligned incentives and culture to support that transformation?
So from an incentive standpoint, you know, there are some incentives for the team or the
folks who are doing the work, right?
and you know, uh from an adoption standpoint, it's kind of like one of those things where
where you kind of like burn the bridge behind you, right?
And so we're gonna run parallel for two months, max three, hopefully one, so it just
depends.
Um, but but really um the the true incentive is
I think our workforce really with the tenure.
So like I mentioned that we've got employees who've, you know, two employees have spent
fifty years here, right?
So they're in they're in going on their fifty-first year of employment.
And our president, he's been here, you know, 38 go this year'll be 38 years.
And the folks who have been here for, you know, 20 plus years.
And so so I I think what's different about us is that I I really believe that our
workforce, our team really loves the organization.
And so b they I think they all know that this is the best for the organization and also
the best for our customers.
And so I think when you have a team like ours where everyone is kind of rowing in the same
direction, I think the incentive um is, you know, doing right by the customer.
And if we take care of our customer, guess what?
We get to take care of the employee.
Right.
And so I think we've done a good job of of really just
making the case that yes, change is hard and and y you're gonna be uncomfortable for some
time.
Um, and we as a a management team, we're gonna do our best to do the training and to hold
your hand and do these micro trainings and pod trainings.
Like I've in the last few weeks I've been to Dallas and I've been to, you know, Boston
training our team and members there in small groups.
And so
I think really the incentive is our team just really wants to do what's best for the
customer and then also for our business.
And so from an incentive standpoint, I think that really is the incentive is, you know,
we've got, you know, we've got a a lot of who I would call company people on board.
And so, you know, they wanna we've got um, you know, like one of our accounting
executives, um, he's a you know, he's a 30-year guy.
His son works for us.
Right.
And so as he
As he starts to think about, you know, retirement, you know, um, you know, he wants to
make sure that this place is in a great, uh great position for his son.
Right.
And so, you know, when you think about that, it's a little bit different than what maybe
some other organizations are.
So I think that's really ins the incentive.
Thank you.
Thank you so much.
I appreciate that.
Yeah, leave it leave it, leave it better than how you found it, right?
Um and that's you know, and here's the thing is I I think that's really the legacy, right?
So like I think
Um, when I think about success, right, a lot of folks will um measure success.
I think society measures success in kind of things, right?
And so for me, I've got my job, my mission, my purpose is is to create value, is to, you
know, treat people with love and respect.
And then the third thing is to, you know, is to leave the place in a better
Place than I found it.
And so in the word success is succession, right?
And so if you've done a job and you've done a great job at a location for 20 years or 30
years, and you leave and the place falls apart, that's not success.
Right.
Right.
Now, obviously, you know, my my thought is my job is to make sure that I grow the next
group of folks and effectively train my replacement.
Right.
And if when I am done here, when my run at LAI Fleet is done.
If my successor can co can step in and I can hand the baton to them and they can push the
ball forward, that's how I'm defining success.
That's great.
Thank you.
I want to talk about how as many organizations, you know, are experiencing um, you know,
transformation often coincides with, you know, retirement, how have you approached
rebuilding your bench while trying to maintain that continuity with within the
organization?
It's something that we think about a long a a lot here, um, just because of the the the
tenure of the workforce.
And so um we've like I said, we've got a lot of folks who are close to a retirement age.
And so what we're doing is one, from a soft like when I think about it it's it's kind of
like two phases, right?
So you have the account executive, right, who's out selling and taking care of the
customer, and then you got the folks in the back office, right?
And so from a back office perspective,
perspective, it is taking that institutional knowledge, that tribal knowledge, and putting
it in the CRM.
So we're taking the stuff, we're taking the the the procedures and the processes and the
nuance that are in our back, you know, whether it be our license entitle or maintenance
management or remarketing.
And we're taking all of that knowledge and we coded it into our systems from a process
perspective.
Right.
So, so that's so that's one approach.
And so, you know, one of my
I think great software, I think great tools are easy to use.
And so one, I hate friction.
and um I don't like paper, just personally.
And so the way I think in systems, and so my question is like I I think that when I think
about processes and procedures, anywhere there's a lot of friction, it's not being done
well.
Right.
And so
One of my jobs is to look at our processes and look at our procedures and remove the
friction.
And if I can remove the friction, then it'll be more efficient.
But but I think, you know, one is taking that tribal knowledge and putting in our CRM.
From a an outward facing customer service perspective, what we're doing is we're we're
hiring, you know, I think right now we've we've just hired account executives.
I think we've hired three.
We've hired
We've hired two in the last two weeks or, you know, brought on board two in the last two
weeks.
Um, we've hired three this year.
Um, we've got another position open and so we're really are hiring our um and repl
replenishing our bench.
And we what we do is we go and we embed them with this with this longtime uh account
executive who gets to show them in ropes.
And so when I think about success, I think what makes people successful, uh, and what and
what's helped me in my career is people have helped me.
And so I think um I think the the the biggest thing is is just um you know having the
folks who are willing to train and help the next generation and so so that's you know and
when and we and then we incentivize it too.
Right.
And so and then also you have the incentive of wanting to leave the place in a better uh
better place than you found it.
And and um and so I think that's a lot of it, right?
yeah, a hundred percent.
Thank you.
So
Let's shift gears, talk about the finance function as a competitive engine.
As you know, the organization evolves, so does the role of finance.
It's no longer just reporting the numbers.
It's driving the business forward.
So, you know, the modern CFO role is more broader than it ever has been.
How do you think about that function as a strategic driver across uh credit, treasury,
remarketing, and even operations?
So the the modern CFO is
it it's much closer to to a COO, right?
And when I think about just all of the things that that I currently manage, I pretty much
have my hands on just about everything here in our organization.
And so I don't I I I don't manage our sales organization our sales organizational
president does, but I manage the compensation.
Right.
So, you know, we're in the process of, you know, um
We've rolled out c I'm looking at the commission plan and making sure that the commission
plan aligns with the incentives, right?
So that's one thing that I'm doing.
and I saw so when I think about the modern CFO, I mean really, obviously you have to
understand the numbers, right?
So you have to understand the blocking and tackling of, you know, tax and finance in
accounting, right?
Um, but then you also have to understand the management reporting and what are the levers
that drives the business.
And then, oh, you know.
We're doing these portfolio sales and securitizations and things of that nature.
And so um the role is really broad and um and then you tack on a uh a software
implementation too.
So right, so that's kind of like that's IT as well.
But what's pretty cool is is I I know I know our business, I know my business down to the
the selling the table.
Right.
So I I understand our business on a molecular level.
Um and so it's been it's been pretty cool and and really challenging.
And so really no two days are are the same.
And so it's really forced me to continue to grow and evolve.
And so I'm always having to kind of level up and and and continuous learning.
And so you know, one of the things that's helped me is
I I you know, I bought like probably ten copies of the CLFP book and I give it away to
folks in the organization.
And so, you know, when I came into, you know, LAI Fleet, um, you know, there's all the the
terminology around equipment finance.
And so I've used the uh CLFP book to really help kind of bridge the gap.
And so then, you know, LAI Fleet, we're two complementary businesses.
So we're we're uh
a leasing company, right, which is an equipment finance firm.
And then we're also a fleet manager as well.
Right.
So on top of understanding portfolio management, managing credit risk, managing cash,
managing a warehouse credit facility, uh, managing insurance risk, managing uh HR, right?
Oh, I need to also learn and understand fleet management and understanding the total cost
of ownership for a vehicle and
and uh telematics and fuel cards and all of those things.
And so, you know, the road is the the the role is pretty broad.
And um this is the most fun that I've had in of any of the roles that I've ever had in my
career.
And um and it's forced me to learn and and grow and evolve and stretch.
And I'm constantly being stretched.
And so I think, you know,
I think the modern CFO uh is akin to like a Swiss Army knife.
And um and you don't have to be an expert.
You can't be an expert in everything, but you have to be an expert in a few things, three
or four or five.
You obviously have to be an expert in the accounting, finance, and tax.
And and then, you know, you need to, you know, the modern CFO has developed working
knowledge and kind of all the other aspects of the business.
But it's
It's fairly broad, it's really complex.
and you know, it keeps me on my toes.
And so I'm I'm never bored.
And so it's a it's been it's been pretty cool.
I mean I'm definitely enjoying I'm definitely enjoying the work and I almost never have a
I don't have bad days.
Like every day I come in it's some some problem to solve.
And so Well, um yeah, I mean, I could tell every time I see you, you're always smiling,
um, always just thrilled about life.
um full of life and energy and it's infectious.
It really is.
Um from your perspective, how does financial discipline and integrity shape both portfolio
quality and the culture of of the organization?
When you think about the discipline, I I I think that's I think the discipline um and our
discipline at LAI Fleet is what's allowed us to
Stay in business for 68 years, right?
And without like that financial discipline, um given all the uncertainty in the
marketplace, right?
Like you think about I came in in in the middle of COVID, right?
And so, you know, there's that saying, um, smooth seas never made for a good sailor,
right?
And so, you know, when I think about my six years as CFO here.
You had COVID, right?
You had all the supply chain disruptions.
We're a vehicle we're in the vehicle business.
So then you had the the vehicle shortages, right?
Um, and then you had kind of like the the increase in price, you know, vehicles going up
in price over thirty percent in a in a year.
And then you had the interest rates going crazy, right?
And tariffs.
Yeah, you have tariffs, right?
And now you have uh a war.
Right.
You have an actual war.
You have a a a trade you have m trade wars on multiple fronts, right?
And so when you think about the volatility in business, I think having financial
discipline and um managing your credit risk um and and maybe not trying to grow too
quickly is really ideal.
And you know, at some point, you know, you're gonna have those write-offs, right?
Um and the goal is to, you know, just sustain the game, right?
And so not to sink the battleship.
And so I think for us, uh, you know, slow and steady uh wins the race.
And so um and then also just having the you know, the discipline around your mission and
what you do and understanding what you're good at, right?
Like when you think about servicing vehicles, if you can service vehicles, you can service
any other asset.
Um, and in addition to being a fleet manager, we're also a servicer as well.
We service our own portfolio.
and we are, you know, managing license title registration.
We're paying sales tax, we're paying property taxes.
We're doing all that for, you know, tens of, you know, plus 10,000 vehicles uh in, you
know, just about every state in the country.
And so you have to have discipline um to kind of stay focused on what your task is.
And to, you know, from a financial perspective, not to get your skis, not not to get ahead
of your skis, you know.
Um and so you want to grow and you think about the equipment finance space, right?
Like if you grow too fast, uh, your leverage ratios will get out of whack.
Right.
And so uh it's something that I've learned.
Um, you know, I tend to want to move fast, right?
And coming in an organization where
you know, we have the tenure that we have.
Um, I've had to kind of learn to adjust and so I I've done that over the over the last six
years and still doing that.
But that I think the discipline really allows you there's a book um by James Clear called
uh called Atomic Habits.
It's a book that I've probably bought ten copies of his book and given away.
And um and what he says is um
There's a he's got a lot of kind of great quotes that I I live by, but it says you don't
you don't we don't rise to the level of our goals, we fall to our level of our systems.
Right.
And your system is is really the the internal the it's the organizational discipline that
l allows you to kind of stay in the game.
And so that's one thing that I try I preach to the organization and one thing I practice
in my personal life and so
You know, being in the military helps you be fairly disciplined as well and so it it it I
think
I think discipline is a personal quality and and it's an inside out job.
And so I I think, you know, it's something that comes from the individual that you project
into and onto an organization.
Agreed.
Agreed.
So we will transition, we'll go to the next topic.
We'll talk about competing as an independent in an era of consolidation.
You talked you brought up a lot of the the the the rapidly
You brought up the landscape and how it's rapidly changing in the industry.
Um, you know, as a privately held organization, how does LAI differentiate against larger
uh efficiency driven competitors?
If if there isn't if there even is one?
I mean, obviously, I mean, there's when you think about vehicle leasing and fleet
management, you know, you've got obviously the the elements.
We don't really see them 'cause they're managing, you know, vehicles with, you know, ten
thousand vehicles, three thousand vehicles.
So
But our focus is the is the is the small and mid-sized businesses.
So anywhere from, you know, two hundred with twenty vehicles to two hundred and fifty
vehicles.
Um, you know, that's kind of like our sweet spot.
And we've got some customers that are, you know, that are in the seven, eight hundred
vehicles and we're able to manage those fairly effectively.
But but I think what makes us different and what makes us you unique in the marketplace is
that we focus on an underserved market, right?
And so what we're able to do with our systems is to provide, you know.
um corporate level fleet management services to small and mid-sized businesses.
And so when you think about managing a fleet of vehicles, managing a fleet of vehicles,
especially if you're multi-state, it's a freaking headache.
Right.
And so what I like to say is is less hassle, lower costs, more profit.
And so our our objective and what we do for our customers is, is we, we, we, we manage
their fleet.
We take care of their fleet so they can
focus on their business.
And so I think what makes us different is um our model.
Right.
So we don't have the kind of hunter farmer model.
Our account executive, when when we bring on a new customer, that account executive, um,
they're the they're also the fleet manager.
So it's not like we bring someone in and then hand you off to someone else.
Right.
So that's one thing that makes us different.
I think our personal service makes our makes us different.
Our president gets on calls and he's going to sales meeting with our account executives.
I get to go and uh go and meet with our customers and hear what they have to say and
understand uh what their challenges are and how, you know, you know, how we can improve
and help them meet their needs.
And so our I I think our market is really underserved.
and I think what really makes us different is is the, you know, the personal service.
And so, um, our customers are are
are not just the customer.
I mean, they're the they're our sole reason for existence.
And so, you know, whether I me as the CFO needs to get on with a a controller or CFO of
another company, um, I'm willing to do that.
And so I've even I'll I'll fly to Jersey.
I mean our president fly to to different states to meet with customers.
And so I think that's I think that's I think that's um I think that's what really makes us
different.
And unique in the marketplace.
And and it is a really competitive landscape and it is hard to to to win fleets.
And so when you think about our business, the sales leads the sales cycle can be, you
know, 18 or 24 months.
Um, but when we land a customer and we keep them, we generally don't lose customers.
if we lose a customer, they may have got acquired by private equity.
Um, but we have customers that we've had, they started with one vehicle and now they're
over 300 vehicles.
We have customers that we've had for over thirty years.
Um and I just had a call, well, I was talking to our president yesterday.
and we're now working with the third generation of a business.
That's that's unheard of.
Yeah, it is.
And so uh, you know, um, you know, when we, you know, when we when we say, you know, it's
when someone call when someone calls us, an expert is gonna pick up the phone.
So and we pick up the phone, right?
Like
Our accounting you know, our customers, if they need a a replacement unit, maybe a
vehicle's in an accident, they send a text and that vehicle will show up in, you know, a
few days if we're getting it out of stock.
And so, you know, we we're able to move fairly quickly.
And our credit box is um it's effective, but we're able to, you know, meet the needs of
the customers.
And so I think that's what that's the thing that makes that stands out to
To me about LEI fleet and how we service the customer.
So thank you.
Thank you for sharing that.
Finally, fleet leasing and remarketing uh is a unique asset class.
How do you think about managing residual risk and scale within a large vehicle portfolio?
So uh I I think what's interesting about the the vehicle is the vehicle is very liquid,
right?
You have MMR, um, our portfolio is predominantly medium medium light duty trucks and vans,
F-150s, F-250s, 350s, um, you know, and some of those vehicles are heavily upfitted and
things of that nature.
Um, and so I think it in managing the risk.
Because the vehicle is so liquid, um, we can pick up a vehicle and get it to auction and
we kind of know what the price is.
And so we tend to be somewhat conservative.
And so one of the things that we do is at the end of a lease, um
We want our customers so generally speaking, at the end of the lease, the customer's
getting a replacement.
They're replacing that vehicle.
And so a lot of our leases tend to be open in leases, open in track leases, right?
And so with that track that track lease, the customer bears the residual risk.
And so we don't want our customer to be in a situation where they're upside down uh on
that vehicle or having to cut a check at the end.
And so sometimes what we're doing is we're we're we're
balancing kind of where that payment is gonna be for the customer.
So when they turn in that vehicle to get a replacement, they're in it either they're
breaking even or or uh or then in an equity position where they're able to get some cash
from that vehicle and either we can either give them a a a rent credit on their next
invoice or they're able to take that cash and and do a a cap cost reduction on the next
vehicle.
And so, you know, we're we're using Mannheim and we're using Blackbook.
to to um understand the market and where the market is uh for those for the vehicles.
And so, you know, um going through COVID, that was kind of a crazy time.
And so, but what manufacturers have done, they're just not producing as many vehicles
these days.
And so and a lot it seems like they're focusing a little bit less on fleets and focusing
more on the consumer.
And when you think about a fleet vehicle versus a consumer vehicle, a consumer vehicle,
they're selling the, you know, that vehicle's going for a lot more, whereas a fleet
vehicle doesn't have all the bells and whistles that a consumer vehicle will have.
And so, um, you know, we're we're definitely in a in a position of rising prices, um, you
know, with with inflation and the cost of chips and and everything.
And so, you know, um it's been
a challenge, but I think we do a great job of just kind of looking at data and having our
pulse offering on the on the market and MMR, which allows us to kind of manage that risk
for both us and our customers.
Thank you.
Great.
But before we uh before we wrap up, is um is there anything that um I didn't ask that
you'd like to share with share with our audience?
No, I'm just you know, I'm just thankful for the for the time and um I I really love LA I
fleet and and any time I get a chance to talk about our business or what I've what we're
what we're doing and and how we're growing, I'm I'm excited to do it.
And so you know, I think I think our organization is special and um I think our future is
is really bright and um, you know, um I'm always uh looking to kind of collaborate and and
um
And help folks, you know, with their fleets and things of that nature.
And so, you know, so n nothing in particular.
Just just, you know, thankful to kinda have the have the time and, you know, um, you know,
in in having the conversation, I'm just being reminded of all the things I've accomplished
over the lax last uh six years.
Cause you know, you get busy doing the work and you got your head down and sometimes you
kind of forget.
Um, but um, you know, there's a there's a saying the things we work on, they work on us,
and so
the opportunity for me to come and work at uh LAI Fleet and become the CFO and and, you
know, design a CRM system and go through the implementation process and and work on um and
work on all the things that I've got to work on, whether it be the portfolio sales or
bringing on new banks or renegotiating warehouse credit facilities or working on insurance
or buying insurance for our our employees.
It's been it's been it's been it's been pretty cool now.
I'm I'm I'm I'm really fortunate.
That's awesome.
Yeah, you can tell.
You can tell and just how how you carry yourself and how you speak.
Um and I agree, you can't always focus on the horizon.
You gotta look back every once in a while.
Otherwise you're never gonna see what kind of change you've made, right?
If you're just focused on on the horizon.
So um well let's let's have some fun.
Um with a topic that's
recently sparks sparking a debate.
Um I know you and I have when we've when we've seen each other um we've we've we've had
had a some debates about this and um we've been you know you and I have some friends that
we mutual friends and we've been teasing them about, you know, this this topic.
So um I couldn't let you leave without tackling, you know, this mo great modern debate.
Um who's the greatest player in NBA history?
Jordan debatable.
Jordan or LeBron.
You may not take I don't think there's a debate, but um but uh I mean I'm gonna go on the
record.
I'm taking MJ.
Um, you know, I'll throw some things out there and then then give you some time to to to
to to present your your position.
I you know, when I look at greatness, I I look at more than just totals and longevity.
Um
MJ's resumes, almost impossible to top.
Six championships, six f finals MVPs, five league MVPs, ten scoring titles, defensive
player of the year, nine alt defensive first team.
Um, never lost an NBA championship.
He won six for six.
Um, and he built it all with one dynasty, one franchise.
So for me, that's that's greatness.
So I'll I'll turn it over to you and and I I
you I unless you agree with me.
I mean, I I would argue that LeBron James's resume is pretty impeccable as well, right?
I mean, obviously his tenure uh is is been pretty amazing.
Uh he was the first to forty thousand points, first to ten thousand rerouts, first to ten
K assist.
Um he was the first to win a finals MVP with with with three teams.
he was the first to come back from three one.
Um the first to make twenty
uh all time NBA teams.
I mean, you know, um when you know, listen, I I think what benefits Michael Jordan is is
Jordan is the first like mega, world mega superstar, right?
And I think that, you know, what he did was so phenomenal.
Like I I would never kind of um say anything negative about Michael Jordan's legacy.
He's he's pretty amazing.
I grew up watching Jordan.
But I I think what happens is is when the first one was so good, the second the person to
follow could be good just as good or even better.
But our brains are so fixated on the first.
It's like, okay, who's this who's the second person to go to the moon?
Right?
Who's you know, who's the f you know, everyone remembers who the first person was to break
the four minute mile, but the there are other people who did that four minute mile and did
it in less, right?
And so, or the first person, you know, the Wright brothers were the first to fly, right?
Um, and so I I think that he benefits from um from being the first, right?
And so sure and then and then I think it's I'll also I'll say one other thing, and I think
it's a a generational thing.
So you've got you've got a whole generation of of kids or younger people who didn't grow
up why Michael Jordan.
They've never seen him lose a game.
Like you have you have people who know who Michael Jordan is and never actually watched a
full Michael Jordan basketball game.
They only know him from the highlights, right?
Sure.
Right.
And so and so like if you were to ask my son, um, who who was a college basketball player,
he would say LeBron James is the GOAT.
Or Kobe, he might say, you know, he might say Kobe was his favorite.
And so I think, you know, I think you have the the the generational gap, right?
Um
You know, uh if you were to ask some older, you know, some more seasoned folks, they would
say, Bill Russell's the best.
Perhaps.
T you know, perhaps.
I mean he's yeah.
So he's got what, eleven eleven NBA championships, right?
I think, or ten or eleven.
Uh ten ten or right.
So that that I mean, he he he doubled Michael Jordan.
Right.
Yeah.
Um true.
I guess if that was my you know, if that was my only argument, if I was saying I'm basing
his greatness on just his six NBA championships.
Then you would counter by saying, well, does that then that means Bill Russell's the
greatest, right?
Um, I think look at the league today or look at it when LeBron entered.
And obviously Jordan didn't enter the league at eighteen or nineteen.
Jordan entered as a, you know, out of his junior year of college.
They didn't allow eighteen year olds who were didn't even attend college to to enter the
NBA draft.
Perhaps Jordan would have entered after his freshman year of college, right?
So Jordan lost two or three years there.
um that he didn't get that LeBron had.
Did he did he lose?
Did he lose?
Well I'm talking about as far as the NBA NBA stats are concerned.
He didn't he didn't have those extra years to to generate those NBA stats.
um But if you look at when when LeBron entered the league, it was it was, I mean, great,
right?
I mean the league was prospering.
When Jordan entered the league, that the NBA finals were on tape delay.
Like nobody watched him.
Right?
I mean, so
Just look at what Jordan did to the league and what he how he revolutionized the game.
LeBron came into a league that, you know, and and I think if you for me, if we we can we
can agree to disagree, talk about longevity.
So Pete Rose, who has leads, who has the all time hit leader in baseball, is he the
greatest baseball player of all time just because he has the most hits?
Is Emmett Smith the greatest football player of all time just because he has the most
rushing yards?
I mean, those guys have those stats because they played for 20 years or more, right?
Um you know, longevity matters.
I mean, I guess Jordan could have hung on for three or four more years, just like LeBron's
doing.
But he didn't want to chase titles, right?
Um, he played for what?
Well, one, he he did close out the Rockets uh this year, this past season, right?
Without without Luca, right?
And without Austin Reeves, right?
So, so no Luca, no, no Luca, no Austin Reeves, and LeBron closed out the Rockets in the
playoffs, right?
Yeah.
Like like think think about that.
Now, obviously the Rockets did not have KD, but but you have someone plus 40 closing out a
team by himself in the playoffs.
Like, it's just, I mean, I I think what I find is that obviously when you think about the
longevity, what's so amazing is that I think that there hasn't been that drop-off, right?
And he's
And he's been able what's so amazing is the way he's been able to change his game to still
be effective, right?
So he's become a better shooter, right?
He could lead the league and assist every year if he wanted to, right?
And I I I think like to be able to go on a team, not be the superstar.
Take a backseat and still the average twenty points?
That I mean like who like like at that at that age.
And I and unless we're saying, hey, the league is just an easier league.
It's a a less physical league potential.
So I'm still my thunder, but I was gonna that's that was gonna be my next point.
It's not as physical as a league it was back when Jordan was at his peak.
I I think if you look back at the two different uh you know, the NBA, how it's evolved, I
mean players weren't taking four steps without dribbling to to take a layup.
It's it wasn't a three point league basketball.
You sound like an old.
Well, come on.
It you like LeBron's the king.
LeBron LeBron should be wearing a soccer jersey for most of his most of his career because
he flops a lot.
I mean, you didn't you didn't see Jordan do that.
Uh here I'll I'll say this.
Um, like just no disrespect, right?
And I think it's a great I mean, I I think it's a great argument, right?
Um
I think both are are are I think both are amazing players.
A hundred percent.
I agree.
I mean, I enjoyed like I I stood in line for Jordan's, right?
Like I I remember like Mike, right?
and so but but but when LeBron came in the league, before he came in league, as as a
16-year-old, he was on the cover of Sports Illustrated and he was named the chosen one.
And
There hasn't been an athlete that has been scrutinized more in the history of all sports
as LeBron James.
And to come in to to get the crown as the chosen one at a 16 year old as a 16 year old,
and to come in the league as an 18 year old and to score, you know, 23 points your first
game out as a twenty-three year old, he's he's exceeded.
All the expectations that have been placed upon him.
does he have as many rings as Jordan?
No, he doesn't have as many rings.
Has he been has he lost in the finals?
He has lost in the finals.
But I don't think six times, huh?
Six times he lost in the finals.
But but I don't know that I I would argue that the Warriors team is an all time great
team.
I would argue, I would argue that I would argue the Warriors team is an all time great
team.
They're not like some regular Joe's, right?
Like,
Like that Steph Curry and and and Clay Thompson and Angway uh Andre Iguadala, like they're
an all they w they went seventy two and ten.
Yeah, I mean I I think all around that's probably one of the one of the greatest I you
know, Jordan's team a year they went what seventy They went seventy two and ten.
They seven it's seventy two and ten.
So the so think about this.
The Warriors went seventy two and ten, right?
And lost
To the Cavs.
I mean, yeah, to the Cavs, right?
The Cavs came back 3 1 against the 72 and 10 Warriors and lost to LeBron James.
That's that's never been done.
No, and and and again, I I I think his career is impressive.
I've never said it's not.
Like, you know, and yeah, that was a remarkable feat, um, doing something that's never
been done before.
Um, I to go back, um, just to go back a little bit.
Some of the pressures and and some of the hype around LeBron, he kinda put some of that
stuff onto himself.
I mean to go on national TV and do what he did to those fans in Cleveland, that, you know,
you don't see somebody like Jordan doing something like that.
You know, I'm gonna take my talents to Miami.
All he did to mine.
I'm gonna take my talents to Miami.
That's all he did.
Yeah.
Well, let's here's here's something else you gotta look at.
And I think maybe this is
Probably one of the because obviously they both won what five, six NBA championships,
MVPs, All Stars.
LeBron's had ten NBA Hall of Famers on his teams.
So when Jordan won his first repeat, he had one Hall of Famer, and that was Scottie
Pippen.
And when he won his second three peat, he had obviously Pippen, he had Rodman and Kuko.
He's had three Hall of Famers in his six NBA championships.
LeBron has played with ten NBA Hall of Famers.
I I think I think that alone is kind of separates.
I mean, is that a function of LeBron and l the longevity of his career?
I well, I mean, I think it's uh a reflection of he he needed help.
He couldn't do it all on his own.
He, you know So Michael Michael Jordan did it by himself?
Well, I mean he did it with less less NBA Hall of Famers, and I'm not saying LeBron didn't
didn't help make those players.
Didn't Scotty Pippin didn't Scottie Pippen win the MVP the year after the the year that
Michael Jordan went to play baseball?
Uh I don't believe so, no.
Those are the two years.
Those are the two years those are the two years that they lost.
I think Scottie Pippen was the MVP or had a Pippen I don't think Pippen ever won an MVP.
He spent the year that when he they lost to the Rockets, right?
I think.
The Bulls never made it to the finals.
They didn't l no, the the Knicks lose the Rockets.
They did.
I think they did.
Yeah, I think I think Scottie Pippins got an MEP.
I I'll look it up right now, but I don't think so.
Um
No, he was uh he was considered he was third in MVP voting behind Hakeem and Robinson.
Again, but but but he but think about how good so so Hakeem is a uh a Hall of Famer,
right?
And Robinson, oh R that's right, Robinson won that year.
So think about this.
So he was in the consideration for MVP.
He was third.
I know, but he's in but he's a he was a finalist at at number three, right?
So that means but think about how good you have to be to be in the conversation as a as to
the MV as an MVP.
So that means that like so you so so was he not that good the year before Jordan left?
He was d there's no question Pippen Piffin's an all time great.
I he's one of the 50s.
If Jordan doesn't leave that year, if Jordan doesn't leave that year, if he doesn't leave,
he's probably an MVP.
So you got two MVPs on the same team?
Two MVP quality players on the same team.
Well, what does that say about LeBron when one of the NBA finals that they won?
He wasn't even the best player on his team during the finals.
They gave it to Dwayne Wade.
LeBron wasn't even the best player on his team.
So how can he be the greatest player of all time when
During one of those championships, he wasn't even the best player on his team.
You wanna know why?
Because when you're a team first guy, you're willing to do what it takes to win, right?
And you're a team first guy, you'll sacrifice or the you'll sacrifice your personal uh
goals and accomplishments for the greater good of the team, right?
LeBron is a team first guy.
And and let me tell you, if you were had if you're running an organization, you want a
LeBron or you want
You want a Michael Jordan?
About I want I'll I'll take ten LeBrons over ten Michael Jordans.
And like in terms of work, I want a guy who will do anything it takes.
Or or you could just have that one great sales guy who just, you know, who who who who is,
you know, who gets all the accolades and and everybody else is starving.
I mean, you act like Jordan had a short career.
I mean, he wasn't um, you know, he wasn't Terrell Davis or
uh Somebody who played 10 years in the league or eight years in the league and injuries
made him end his career sooner.
I mean, Jordan still played for 15, 16 years.
Um I know I know he was a bum at the end of his career.
I know that much.
He averaged 20 plus a game with with Washington, but he didn't he didn't hang on.
He didn't hang on because he wanted to play with his kid.
He didn't hang on because he wanted to chase championships.
But listen, and listen, and and they're an uh and when you think about think about this.
As good as Michael Jordan was.
He couldn't get in he couldn't get Marcus to the league.
He just shoes LeBron's.
He played Marcus played college basketball.
He played college basketball.
He's a division one college basketball.
Well, that just goes to show you that Jordan wanted his kid to be, you know, make his own
path, not following his father's footsteps.
I think this would be a great place to wrap this up.
How do you how do you uh yeah, I mean it's it's I mean, listen, I I and I feel for
LeBron's kid too, because that's tough.
Those are tough shoes to fill.
Uh I regardless, no matter what Jordan's kids are doing, they're always gonna be measured
based on this their father's success in the eyes of uh outside people.
I'm sure obviously the family and close friends and stuff are gonna gonna look at that
differently.
But everyone's always gonna s look at Jordan's kid or look at LeBron's kid.
I mean, um yeah, I I think we both can agree that they're both exceptional.
They both um, you know, have had a huge impact on not only the sport, but
Um, you know, just a you know, culture you know, our culture in general, right?
You know, one thing this one thing, so LeBron has been the face of the league for better
part of twenty years.
Um this is probably his last year, right?
One, maybe two.
Who gets to step in and fill those shoes?
Um good I mean, I you're asking somebody who is d just a average NBA fan right now.
So um trying to look, uh trying to see who's who's there that that he can pass the torch
to.
You know, it'd be unfair to to ask me that question because um I'm I'm not that you now if
you ask my son, he he follows MBA better than I do.
I don't hear he could probably rip off he could probably rip off five or ten names.
Maybe five.
I follow the NBA and I follow MBA and I don't I don't I don't I don't know who that next
person is, right?
But right now, but let me ask you this though.
Right now, LeBron is not the best player in the league.
And I know Jordan's last two years no, he's not he's he's he's he's not he's not the best
player in the league.
Yeah, but I would say I would say arguably he's a top ten to fifteen player in the league.
That's debatable.
I mean that's a dip we can debate that.
That that could be a debate on the next time we're I'm done debating with this.
I'm done debating him.
No, I'm done debating.
I he's probably yeah, I don't again, it's unfair for me to answer the answer that question
if if I can't rip off five names of of better players uh or players that he could pass a
torch to.
Um so it's it'd be unfair for me to say that he's not one of the top ten or fifteen.
Um I would say if you he has not I think what I can say, um is that he has not been the
best player in the league over the past five years, right?
Would is would you agree that he's not the best player?
He hasn't been the best player in the league over the past five years?
Um
You had to have a draft right now and you had to pick a player, LeBron wouldn't be your
first pick.
A forty year old LeBron, okay.
I mean Yeah, even a thirty five year old.
listen, I at at the end of his career, he he looks better than Michael Jordan does.
Hearing Jordan's peak?
Uh I'm just saying at the end of his career, 'cause every player has to No, I I I I I
agree.
I I which is like ten years later.
Well well, Jordan retired at thirty six.
So he's he so Jordan had two years with Washington.
Right.
But if you go back to the three Pete years, you know, if you take Jordan's six or eight
years, his six or eight best years, and you compare them to LeBron's six or eight best
years, there's no I mean, it's a close comparison, but I think Jordan Jordan Jordan has
the advantage.
Under your argument, is Bill Russell?
I I I know, but Bill Russell's not in the in that in the conversation we were talking
about.
We're talking about LeBron and Jordan.
Let's
How many, how many teams were in the league?
It's like it's like it doesn't matter.
It's like it's like the Canadians.
Everyone's like, Montreal, the stories franchise.
There are six teams in the league.
Like you, you rolled out of bed, you had a one in six chance of winning the Stanley Cup.
Just like baseball.
You know, the Yankees, and I'm a Yankee fan, right?
They got twenty-eight world championships.
Yeah.
Well, how many of those were when there were, what, 10, 12 teams in the league?
Right?
Or or I I mean, the landscape's different.
Um, NBA's evolved and changed.
It's not as physical as it used to be.
You know, Jordan Jordan had to you know, Jordan had to do all these things to get get
physical to to beat to beat the pistons, you know, but we this we could have a whole set
podcast about this and and um but it's been great, man.
I I I I I am very grateful.
Yes.
That would be that would be awesome.
But um yeah, I we've uh we've definitely gone a little over time, but it's been it's been
a fantastic conversation.
Thank you for sharing your journey, your insights on modernization, leadership, and what
it takes to compete and grow in today's environment.
To our listeners, thank you for always for joining us on the ACS portfolio perspective.
We appreciate your time.
Look forward to bringing you more conversations like this very soon.
And vote on this debate.
We may have something up on LinkedIn where you can you can decide for yourself who you
think is the greatest NBA player of all time, Jordan LeBron.
So thank you, Kareem.
I'll be sitting Bill Russell.
I see, thank you so much.